Actually, this three things I will mention here are pretty simple things that you can do by yourself and hopefully, in the future, your will have a healthy financial life. This piece supposed to be published weeks ago. Yes, this is to answer BEC’s 16.3rd challenge. Pardon me for the late submission. No-no-no, coming and see a registered financial planner is not one of them. 😀
Since the challenge title was Three which asked the participant to tell about three simple things closest to them, I can not help but write about this. Simple things for your finance which suppose to be doable all by yourself.
So what are they?
The three simple things for your healthy financial life
Pay down your debt and bills firstCredit card debt shall go first!
Well yes, pay your debt and bills first right after you put away what you should give to others from your money which the portion vary according to each religion that you believe. Right after that, no question that your credit card, mortgage, car payment, phone, electricity. Did I leave something? I mean everything that is compulsory. Things that you have to pay or else you will be in trouble.
Pretty straight forward right?
If you decided to postpone payment for those things and waited until all your other needs already fulfilled, be prepared to pay late charges and higher interest. Sometimes, the late charges and interest that you have to pay are too painful to pay. You enjoy nothing but the delayed time then you have to pay more money than you should have to. Those two will definitely make your compulsory payment even higher in the following month.
Read my post about the importance getting to know your credit card bill (in Indonesian).
Just pay your debt and bills first. Very simple and quite straightforward they are. Aren’t they? Really you don’t need to call a professional financial advisor for this.
Invest your money right awayInvest every penny you have
Ok, the very first thing is quite straight forward right? You just pay what you owe. The second point I make here about investing for your future. Not something that you can see the result right away but you will glad to do it as early as possible.
The common mistake people think about investing is that they think whey will set aside some amount of money if they still have some at the end of the day. And so many times I hear my friends say this:
“I don’t have anything to spare, for my daily needs it is already left nothing. Let me see if there’s anything left then I’ll start to invest”, some friends of mine.
Do you have the same problem or do you not?
If you happen to have the same problem, try to invest right away after you pay your debt. I use two methods of investment. Wehenver I receive my salary payment and done with all the compulsory and obligatory payment, I put some money to my investment account using auto debet from one of my banks and internet banking from the another. You can read my post about reasons investing in stock market which I wrote in Indonesian.
That way, I don’t have to worry to have nothing left in the end of the month without any investment or saving. Then I can use the money left on my account for anything I want.
Use mobile and internet bankingStock Market
Last but not least. User your mobile banking and internet banking to make your life easier.
Yes, I love using both facilities for my daily transaction. It saves me time, my valuable time and enable me to do transaction as soon as I need it. It is free anyway.
If you still have some worries to use mobile banking, ask yourself what are they and try to consult with your banker. Confirm your concerns and start to use it. Why I suggest to use mobile and internet banking? It is only because you can use it absolutely anytime anywhere as long as you can get internet connection.
This two free feature from your bank account will come in handy when you forgot to pay something on the deadline day or maybe at some point getting caught in an emergency situation which require you to pay from your account immediately. You can do the transactions you need as immediately as possible.
Moreover, with mobile banking I only need to go to ATM when I need cash. I wrote once about why you should e-banking in Indonesian.
By doing all three, hopefully you canget a healthy financial life. 😀