2021 is the best year to start being smart about your finances. If you want to develop your money-making skills, you should learn to combine intelligent earnings and reducing expenses. Investments and savings can help future-proof your life, so you should be smart about balancing spending and earning.

PT Unified Indonesia Review has outlined a list of the best money practices you should try this year:

Reduce or Remove Your Bad Debts

First and foremost, you need to settle your obligations and loans. Before you can do that, you need to separate your debts into good debts and bad debts. Good debts are loans that generate income, while bad debts are those born from materialistic needs.

You can’t start saving until you have eliminated all your pending financial obligations because you will still pay off your loan interests.

PT Unified Indonesia Review useful tips on clearing your debt:

1. List all of your debts in a spreadsheet. Include details like principal amount, interest, payment frequency (weekly, monthly, or quarterly), and balance.
2. Sort according to the remaining balance, and pay the minimum interest for each debt and more for the debt with the lowest credit.
3. Alternatively, you can arrange 
4. 1according to the interest rates. Pay the minimum on all accounts and extra on the debt with the highest monthly interest.

With those tips in mind, you should be able to clear your debt while keeping a high credit rating. Remember that you should pay at least the monthly minimum amount or interest rate to avoid compounding them.

Create a Financial Calendar

The best way to see your short-term and long-term monetary health is to create a financial calendar. Unlike a budget that’s mostly focused on money and expenses allocation, a calendar is more like a journal or yearly overview. You can indicate any bills or payments due such as insurance or loans. If you are planning a vacation in the future, you can allocate the funds in advance.

Invest with Professionals

According to the PT Unified Indonesia Review, you should consider having investments for the future. Assets like real estate and stocks often increase their value over time, so you should put aside a portion of your salary and savings for investments.

If you’re too busy to learn how to allocate your funds appropriately, you can hire a reputable investment firm. There are a lot of financial companies that can assist you in achieving your short-term and long-term goals.

Set A Budget

Proper budgeting is probably one of the most common financial advice that you will ever receive. The primary purpose of a budget is to ensure that your spending is lower than your income. Adhering to it will also inform you what kind of lifestyle you can afford without sacrificing your future goals.

Conclusion

Money is an essential global resource, so you should prioritize improving your money management skills. The good news is that you don’t have to do it alone. You can learn how to handle money, or you can hire someone to manage your wealth for you. Either way, now’s the year to start!