A SECRET OF FINANCIAL MANAGEMENT By: Safir Senduk

A SECRET OF FINANCIAL MANAGEMENT By: sapphire Senduk
June 02, 2009

A major consideration that is usually someone to measure wealth. However, why so many people with large incomes often end runs out of money in the middle or at the end of the month? What is the problem?

If you have a job now, do you remember the first one you ever had? Usually, the first is the work experience the most unforgettable experience.

Let's take an example. Anto still living with his family until he got a job at the age of 23, as a clerk in a trading company. At that time, he has just passed. Although he must go through the trial, Anto very happy when he knows that he will get the first salary. His salary of Rp 600,000, which he received on the 27 ..

We can guess what he wanted to do, he wanted to treat her family. He'd like to thank for a salary for the first time in his life, and he also wanted to show that he is now independent.

Let's see, he received a salary in 27 .. On 29. He brought his family out for a meal at the all-you-can-eat restaurant, so that each of them could satisfy their appetite. Pre-tax cost for one person is Rp 22,000, and after tax of Rp 24,200 per person. All the 7 members of his family, consisting of father, mother, brother and a large 3 annoying younger brothers. 6 All that, plus it made Anto 7. That means he must pay a dinner bill of Rp 169,400. Which means only 2 days after he received a salary, he had spent 28% of his salary for the month. So, he left only Rp 430,600 for the rest of the month.

"No problem", thought Anto. "It's my own family treated, not other people. In addition, not every day I do that. After one month is enough." Days go by. One week, 2 weeks, 3 weeks. "Hmm ... that stuff in the mall looks pretty good. There is a very interesting looking clothes. Okay, it costs Rp 28,000. There is also a nice pair of trousers to wear to work. It is very cheap, cost only Rp 65,000. Win It 't hurt to look stylish at the office. " He then began to buy things. "Okay," Anto thought, "one shirt and pair of pants for this month. The remaining salary will be used for my transportation and food until the end of the month."

What happened? 24. From next month, just three days before payday, the second month, he left only Rp 50.000.

Anto start thinking. Okay ...., like that is because he spent most of that money to treat his family. Also this is the first work. Come in this month, financial akan better.

The second month, he got his salary again. Still in the same amount. Does not improve yet. The difference was no longer treat the family. Days and weeks go by. Several days before the salary of the third, he only had Rp 75,000 left.

Three months on, he finally accepted as a permanent employee. He got Rp 150,000 to Rp 750,000 increase. "Not bad", Anto thought. This means that I will be able to "breath" and save a little. But strange, even a few days before the month ends, he still has only a little money left. Six months, seven months, eight months, although he got up, but he still runs out of money and can not be entered into any savings.

Indeed, Anto not the only one, the income below Rp 1m, with this issue. Even millions of people with income per month, still had difficulty in saving money.

What actually happened? Many people think that the way to improve, they will not run out of money in the middle of the month, and they are sure to be able to save. Every month they hope that they will have to increase next month. But after they get the increase, they still run out of money.

It is clear that the solution here lies not in how large your income. The amount of income you can not guarantee that you will not run out of money in the middle of the month. The size of your income does not guarantee that you will be able to save. The key here is not how much money you make, but how you manage your income can be stretched so that in a month.

There is no way to keep the appropriate method to manage the finances. However, based on experience, there are several things that can help you manage your finances better with each month:
Plans and income results every month.
Implementing the plan strictly.
Have reserved funds.
Join insurance plans.