Good Financial Management, how do they do
Don’t let the things you want. Be less, eat less, be elaborate. Don’t pay too much, it will be difficult for a long time.” It is a saying by Sunthorn Phukha, the great Thai poet that can be used in managing money in every era. Good financial management will allow us to live happily. don’t worry about the future I would like to suggest some tips of good financial management for friends to apply.
Tips for good money management
Make a plan for income and expenses by friends. May start from accounting, receiving and paying separately on a monthly basis. I would like to suggest some tips for friends to use the equation of wealth as follows: (Formular)
|Income – Savings – Investments = Expenses|
by letting friends deduct savings first and must share a portion of the money for investment as well to make money work Money will grow more and more, then the rest will be used to spend.
- Make a plan for protecting yourself and your family. Before your friends make investments, reserve a portion of your money for protection for yourself and your family, such as life and accident insurance. Health insurance for yourself and your family members Mortgage Installment Insurance Which insurance nowadays can be considered as a type of investment as well. For example, life insurance savings that will interest us as well.
- If friends start saving money and investing today will get higher returns faster The investment period is another factor that must be considered for obtaining returns. Because the longer you save or invest, the greater the return will be.
- Properly diversify your investment portfolio. Don’t invest in just one type of financial product. to get high returns Because there will be a very high risk in the event that the investment incurs a loss. Investment portfolios should be allocated by investing in each type of financial product appropriately, such as dividing investments into savings accounts. money market funds These asset classes have the lowest risk. Subsequently, investments were divided into fixed deposits, bonds, debentures, fixed income funds. with moderate risk Finally, share investments in stocks. Equity funds ETFs, which are high-risk investments. but will increase the investment value in the long run
- Financial management should be flexible. to adapt to different situations in life
- Avoid unnecessary debt Because it will make us have no money left to save and invest. In addition, it may cause our finances to be negative as well. Therefore, I would like to recommend to my friends to live in line with the sufficiency economy.
Financial management has many benefits
- allowing us to manage our finances in a systematic way
- This allows us to have money left over for emergencies and illnesses.
- We have enough income to meet the necessary expenses.
- giving us savings for harvesting flowers
- giving us a financial stability
- giving us a financial plan for the future when retirement
And most importantly, it gives us a stable and happy future. When friends put the secrets of good financial management and apply them accordingly, they can live happily. well-being And have financial freedom as I dreamed for sure.