There are many other good money habits that you can try. So here are five easy-peasy steps to help you get started.
- Write down your expenses
The very first step of starting your money journey is to write all your expenses. No matter how small the amount is. That way, you can discover places where you may be unknowingly overspending. Save your receipts and write your purchases in a spending journal. Don’t forget to categorize them so you can identify areas where you have a hard time keeping your spending in check.
To make it even more convenient, use a money management app. There are many excellent free money management apps available on Apple Store and Google Play Store. You need to be diligent so you can monitor your progress and measure the results.
- Make a wish list
Saving money without a clearly defined financial goal can lead to confusion. Without any plan, you will not know how much of your income you should set aside or where to begin. In the end, you are probably not saving enough, and your commitment will fade over time.
Whether you want to travel around Europe or buy your first house, make sure you know your purpose. Next, you can find out how much you need to collect for an airplane ticket or a house down payment. Remember, a specific goal can help you to stay on track to getting wealthier.
- Create hidden safes
Besides keeping your savings in a bank, creating hidden safes at home is also necessary. For example, you can put your small changes in a mason jar or in the corner of your drawers. If it’s done regularly for at least a year, all of those small changes will turn into a hidden treasure. Even though it takes time, this habit is a creative way to build wealth.
- Avoid lifestyle upgrade
A pay raise can make or break you. One of the downfalls of getting a higher salary is wanting to live a more expensive lifestyle. But if your expenditure exceeds your income, you need to live within or beneath your means. So having more money doesn’t equal financial stability. You can avoid lifestyle inflation by simplifying your life. Living a simple life can help you break free from excessive consumerism like buying clothes you don’t need. Instead of shopping, it’s wiser to invest your money for your child’s education or your retirement.
- Don’t forget to invest
Shopping, hanging out with friends and traveling are a few habits you may not realize can affect your financial health. To protect yourself from financial problems, you need to start investing and make it a part of your lifestyle.
Lucky for you, there are plenty of investment options. Unit-linked insurance is considered one of the most reliable financial products. It gives you two main benefits, an investment facility and also protection from unpredictable risks, such as critical illness, permanent disability, and even death.
Sun Life Indonesia offers a variety of unit-linked products that are tailored to suit specific needs, plans, and future goals. You can decide the amount of the insurance coverage and investment you want to reach your financial goals.