Having your own income means that you also have started to manage your own finances. In fact, there are many types of expenses that need to be met. Not only does it meet basic needs, you also need to set aside a portion of your income to save. You must start filling out savings, whether to meet your needs in the future, or as a reserve fund. Savings play a role to ensure the stability of financial conditions if you experience things that are not desired later on.
Most of you may have started saving, but have you done it right? Here are some signs that indicate you haven’t saved properly.
Savings and Transaction Accounts are still Unified
If you still put together a savings account and daily transactions, then you still have not saved properly. Savings accounts and daily transactions should be distinguished to avoid using savings on your shopping activities. By combining the two accounts in one card, the amount is certainly bigger. But this can encourage you to do excessive shopping outside the budget. This can cause your savings will be difficult to increase, or even continue to decrease. If you have not been able to separate your account in the near future, make sure you record the amount of your savings and expenses. (Also read: 4 Things to Look For in Choosing a Special Savings Account)
Savings Conditions Not Stable
When you have a savings account, try not to do too much transaction activity in the account other than saving money. Having a large amount of savings may encourage you to use it occasionally. The right way to save is to continue to make sure your savings account has a stable condition and continues to increase every month. If you want to use the savings occasionally, make sure the amount used does not exceed the amount you save each month. This applies to types of non-emergency or primary expenditures, such as goods expenditure.
Don’t have an Emergency Fund
Before starting to save for a specific purpose, preparing an emergency fund first is very important. An emergency fund is a fund prepared to be used in an emergency, such as if you fall ill or may be fired from work. Emergency funds that need to be prepared are usually based on your monthly salary. You can prepare emergency funds as much as 3, 6, or 12 times the amount of your monthly salary. Usually for those who are still single , enough 3 times the amount of salary. For those who are already married, it’s good to prepare a minimum of 6 or 12 times the amount of your salary.
Why should emergency funds and savings be separated? Basically, an emergency fund is a fund that will replace your income in a state of urgency. Savings are usually made for later use for certain purposes, for example to buy a house or for traveling . These different goals and functions are important reasons why they should be separated, and of course you should prioritize preparing emergency funds first.
Less wise in managing the percentage of savings
In determining the budget of your salary, of course you need to calculate the amount correctly. Not only for expenses, but also for savings. Do not let the amount of money you save is less or more than enough. Usually, the percentage of income you need to save ranges from 30% of your monthly income. This percentage is not mandatory, of course it needs to be adjusted to your individual needs. Do not let you save too much to make it difficult for you to meet your daily needs.