A classic problem usually faced by some employees is salary management. Of course, we want to afford all of our needs. We want to pay our credit card, buy clothes or save some of them in saving or deposit account. However, not rarely in the mid of the month, the deficit comes along and it makes us more frustated:-(
How it doesn’t make us frustrated if no matter our salary is, it’s never able to fulfill our needs. Even worse, we can’t save them for the rainy day.
Probably, we never realize that such deficit is caused by some mistakes. One fatal mistake that keeps being repeated again and again is we never list our cosy. The money that we eran flows unnoticed. This mostly happend to new employees like me who want to enjoy the money i get. Another mistake is we often fail to differentiate our want from our need. Therefore, we need what’s called salary management.
Mostly, people have 20-30 expense cost. However, be careful, because not all of them are needs. What we should bear in mind is the salary that we earn isn’t aimed only for fulfilling our need but also for the saving. According to financial experts, there are four posts in to which we have to divide our money. They are:
- Daily Life Post
- Debt Installment
- Insurance expense
- Saving and Investation
from the four above-mentioned posts, which one that’s prioritized most?
First of all is debt installment. Why? It’s because we wont feel safe if we keep being haunted by the debt collector, will we? For this post only, we can devote 30% of our salary at maximum.
The second priority is saving and investation(if you have). This post is very beneficial for us in teh future. At least, spare 10% of your salary for this post (the bigger, the better actually). Shoutd you don’t have any debt, this post can be lifted up to the first priority.
Paying insurance premi is the third one. The portion for this post can range from 20 up to 30% of your monthly salary. Say for example you don’t have any insurance, you can skip to the next priority. However, if you’re interested to buy, watch out the rule!! The game rule is “dont buy too much insurance”. Just choose the one which can anticipate the risk and take the premi which’s in line with our financial capacity.
The last priority is daily expense. It comprises cost for daily meal, transportation, entertainment, etc. Why is putting this one at the last? It’s becuse the nature of this post is flexible. In the other words we can say that we can consider which need that can be reduced. For example, we can skip our want to buy clothes thish month if we have bought the new one last month. Ideally, this post takes 50% of our salary.
Dont forget to list all of your expense. This is useful to ensure that our money’s spent to the correct post.