When we are working and have a basic income, we often feel that it is enough to just live on that salary. In fact, many urgent needs that sometimes arise suddenly. Not to mention there is always the possibility of losing work, both due to external and internal factors. Therefore, you need to have a side income that can be a second income. It can be a business or investment. If you decide to run a business, perhaps you also need to consider hiring Xero Bookkeeper in Parramatta.
Then, do you think that just saving is enough? Saving is just a way to save money to use at any time when there is an important need. Saving money cannot give big returns. Therefore, saving is not enough. You also need to invest in order to get the maximum profit at the same time as passive income.
Furthermore, you need to separate the savings account from the account for daily needs. Because having just one account will make you compelled to use it because you feel there is still a lot of money left. Saving can also be in vain.
Then, saving must be done at the beginning of the month when you just receive a salary. The reason is, if you procrastinate until the end of the month, the money you hold has decreased a lot because it is used for shopping and buying various other needs. In the end, you don’t even save because there is only a small amount of money left.
Apart from that, don’t neglect your small expenses. Remember the proverb a little long to become a hill? That’s what will happen if you ignore small expenses such as parking, snacks, paying tolls, and others.
Small expenses like that can sometimes be a waste because it does not feel heavy. So, it helps you record all expenses in detail to avoid such leaks.
Finally, insurance and emergency funds are two important things that you should have. The reason is, without having both, your finances can be disrupted when there are events outside the plan. The financial burden will be even heavier because you do not have a reserve fund to bear it.