There are still many people who find it difficult to manage money well, especially in managing income and expenditure. This can be found through extravagance, excessive lifestyle fulfillment, and anxiety if the money is running low. Mismanagement of money is a major cause of this happening in society and is a big problem that is often encountered by financial institutions. The habit of managing money should be done for a long time. But most people have this habit for a short time when financial conditions are dying. This mistake must be avoided by everyone because without a long thought the financial future can suffer.
Avoid planning financial goals when organizing and compiling financial plans. This is one of the actions of good and controlled money management. In addition to unclear financial priority goals, it is also one indicator of poor financial management. Expenditures that are not divided into several priorities can certainly result in needs that are not met. This makes income run out so quickly because it is used for things that are not a priority. Commitment or promise with yourself and others must be strong especially in financial matters. Lack of commitments such as promising to live frugally will prevent financial management from going well. This also affects the income and expenditure is not balanced because spending is widely used for things that violate commitments.
Many people manage money by taking insurance to guarantee a better life. Good insurance would be a dream for everyone. But there are many mistakes where people just take insurance because they are tempted by promos or just know the seller. Again, managing money on insurance must understand the rules and also how to set goals, priorities, and commitments. Investment is not a bad thing because it promises in the future. Although sometimes investing can be profitable, but without learning and preparing investment carefully, of course, the benefits of investment will only be wishful thinking. This mistake allows people to get into big economic problems. Therefore you need to have investment knowledge and experience capital so that financial conditions remain good even though investing.