6 Smart Tips to Save and Manage Your Monthly Income

Managing your monthly finances can be a challenge, especially if you're not used to doing it regularly. Often, the cost of needs increases without an increase of income. This can result in stress for many people. However, by applying some simple tips, you can save and spend your monthly income effectively. Here are some practical steps you can take to maintain healthy and stable finances.

Record monthly expenses

First, make it a habit to record your monthly expenses. Don't worry, you don't have to do this with complex calculations or Excel sheets! There are many apps that you can use to make it easier to monitor expenses.

Make sure you record the types of expenses as well. Expenses can be categorized into: food, transportation, daily needs, health, bills, installments, and others, according to your habits.

Create a realistic monthly budget

Once you get into the habit of recording your monthly expenses, you can start to see the average amount you normally spend on each category. From this data, you can create a realistic monthly budget.

Start allocating your monthly income to certain categories. Don't forget to set aside a portion for savings, emergency funds, and/or investment. In order to save more, set a monthly spending limit after deducting savings and installments. This should be between 70% - 90% of your total income. If you spend less than this amount, you can save or invest the margin.

Separate your money

To avoid eating into your savings or emergency funds, it's a good idea to separate your day-to-day funds into different accounts. You can also withdraw enough cash for each day or week, or transfer your day-to-day funds to an e-wallet.

This habit can help you be more conscious of the amount of money you spend and prevent overspending.

Distinguish between needs and wants

Often, account balances are quickly depleted due to impulse spending. Before buying something, ask yourself, is it a need or a want?

Of course, needs should come first. However, don't forget your budget! For example, if you need new clothes, buy according to your needs and within the budget you have set, not just because the item is on sale or you’re following a trend.

Use promos and discounts wisely

In the era of online shopping, it's easy to be lured by attractive promos and discounts and check out right away. However, make sure you utilize these discounts wisely.

Don't be tempted to buy things you don't actually need just because they're currently cheaper. Instead, use promo events like twin dates to buy daily necessities that have been allocated for in your budget.

Be diligent in saving and investing

You may have come across this tip many times before. However, it is the most effective financial habit to ensure a stable financial future.

By saving and investing regularly, you are not only building up your emergency fund, but also preparing yourself for major future needs such as education or buying a house.

Nobu Bank provides various savings solutions that can help you manage your finances better. One of them is Nobu Daily Savings, with competitive interest rates paid daily! You can also take advantage of various deposit products from Nobu Bank to suit your needs.

Managing your monthly money effectively requires discipline and good planning. By following these tips, you can ensure your finances remain healthy and stable. Nobu Bank is here to support you in achieving your financial goals, with various savings and deposit products that provide benefits and convenience.

Open an account with Nobu Bank and start your journey to a more stable and planned financial life!