Let's Prepare Financial Priorities

EVERY person would have different priorities in life. However, managing the finances are appropriately placed at the top of your priority list.

Determine what is important and what is less important should not be difficult as long as you know how to do it. Well, here are four main ways to prioritize your financial life:

Investing in the future
Make a plan for the future is one of the key elements in prioritizing financial life. As soon as you get a job, start saving for retirement.

This concept may sound strange when you're still at the early age of 20 years. But, the sooner you save, the longer the funds in the account to settle so that the flowers were growing.

Although you are only able to save a small portion of money each month, it is still better than not saving at all. As the saying goes, a little, long into the hills.

Saving an emergency fund
Life promises surprises at every turn. Sometimes, the surprise came with an unpleasant way.

In addition to saving for the future, you also have to prepare yourself to save for unexpected things that might happen. For example, when one family member gets sick or when the house needs renovation.

The main thing is not how much money you can afford to set aside each month, but the consistency in doing so.

Paying the bills
A good credit score become the foundation of a healthy financial life. Build and maintain a good credit score will allow you to downsize the number of large purchases such as cars, houses, furniture and even household appliances.

The most important element in maintaining or improving a credit score is to always pay the bills (at least the minimum payment) on time every month.

Reducing debt
Do not be in debt, let alone stuck in a cycle of 'dig a hole, cover the hole.' However, there is a fundamental difference between having the bill into debt. To avoid piling up debt, purchase of goods only if you are able to pay in cash.

If you have made a purchase using a credit or a loan, make sure you're able to endure (including interest).
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