No Waste! This is How to Manage Finance with Personal Finance

Personal Finance – Have you ever felt that your pocket money or salary is running out quickly? In fact, the expenses and needs that you spend don’t feel like much. Or do you feel that you have managed your finances in such a way. Money is a very important medium of exchange for humans in this modern era. Everything in this world requires money, from eating, drinking, to fulfilling your other life needs.

This is also what makes money an essential thing to live life in this modern era. Plus, it’s even difficult to make money right now, so managing your finances really needs to be thought out and planned in detail. Managing finances is a challenge for everyone. Not everyone understands how to manage money properly.

There is one way you can do that is managing money with Personal Finance. Come on, read this article further to find out what Personal Finance is!

What is Personal Finance?

No Waste! This is How to Manage Finance with Personal Finance

Maybe the word Personal Finance itself is still quite foreign to the ears of the Indonesian people.

Personal Finance or has a meaning in Indonesian means finance (finance) and personal (personal). Personal financeactivityitselfis an activity or art of managing finances on a personal or household scale.

This term covers everything that has to do with managing your money, savings, investing, and everything that is involved with money. These include budgeting, banking, insurance, mortgages, investing, retirement planning, taxes, and estate planning. 

The term Personal Finance in the financial services industry is often intended for financial service companies that offer individuals and households financial management. The service can also provide advice and recommendations regarding finance and investment opportunities.

The goal of Personal Finance itself is to meet your overall personal financial goals. Things that are fulfilled range from short-term finances such as monthly expenses, to long-term expenses such as planning for a retirement fund or saving to enter a public university.

Are you obliged to use the services of a Personal Finance professional to manage your finances? Not really. You can also learn to manage finances by studying the basic principles of Personal Finance that are applied.

Principles Applied Personal Finance?

You do not need financial calculation skills or professional skills to be able to carry out this Personal Finance activity. Basically, managing finances can be done by applying a number of things that are used as the basic principles of Personal Finance.

The key is to understand exactly what you really have to do with your expenses and income. Three main principles are applied by Personal Finance, namely Priority (priority), Assessment (assessment), and Restraint (control).


Priority or simple priority means that you can distinguish which ones are really important, unimportant, needs, or wants. You have to be able to distinguish and sort out all the activities where your money is spent is a very important desire or need.

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For example, you like to buy clothes and find a shirt with a design that you like at a clothing store but the price is quite expensive. You have to know and ask yourself whether you have to buy it because of a need, or even just because you want it.

If you do have more budget, it’s actually okay to occasionally follow your wishes. But you must have divided the money into spending items that are definitely your priority, for example savings, daily meal allowance, paying installments, and so on.

Don’t let your desires take away the funds you have prepared for priority expenses. By distinguishing what things are your priorities, it will be easier for you to manage your finances so that they don’t run out quickly.


The principle that is then applied in Personal Finance is the ability to judge you on finances or the goods you buy. You should be able to judge what items you buy according to the quality of these items. For example, suppose you want to buy a bag. 

There are three choices of bags. The first bag has a fairly expensive price but has good quality materials so it lasts a long time. The second choice of bag has a price similar to the first bag but the material is not good, it’s just that you like the design.

The last bag is the cheapest but the quality is not good. Thus, the possibility of the bag being damaged is high. Of the three choices, you can apply the assessment principles of Personal Finance.

You have to be able to judge which bag seems to make it easier for you to save money, the advantages and disadvantages of buying this bag. Another thing that must be included in your assessment is whether your budget (funds) is sufficient to buy the bag. 

So that doesn’t mean you have to keep buying cheap stuff. The point is whether the bag you buy is expensive, but durable and strong to use in the long term and still within budget.

Buying a bag that is expensive but of good quality will make you more efficient in managing your money because you don’t have to change bags in a short period of time. It could be, the total price of the bag you buy while continuing to replace the damaged bag will be more expensive than you bought a good quality expensive bag at the beginning.

Restraint (Control)

The last principle of managing finances with Personal Finance is control. This control is closely related to thrifty and wasteful. There are times, everyone buys something because they want or reasons that really don’t really matter.

This sometimes makes you exceed the budget of the daily expenses that you have set. You have to be able to control yourself spending money on something that is not necessary.

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Habits such as snacking using online applications, hanging out, and buying coffee at cafes or coffee shops you can control. You can, of course, still do the activities you like, as long as you can control yourself not to constantly follow your desires.

For example, every week you can buy coffee at a well-known shop almost every day. Even though the price may not be expensive, if you do the math, it will be a big expense too.

You can apply to buy the coffee by controlling the frequency. Usually you buy five times a week, you can control yourself to 3 times a week. All the principles of managing finances with Personal Finance are actually very related.

Simply put, by doing an assessment, you can find out whether what you are buying is a priority or not, so you can control yourself. The concept is actually easy to understand right?

How to manage personal finance

Learning the basics of personal finance is designed to help you manage your finances better. To manage your finances well, below is how to manage personal finances, namely as follows: 

1. Setting goals 

Without clear goals, people usually become lazy in managing their finances. Always define your life vision and mission clearly so that you can manage all forms of finance to suit your short-term and long-term needs. 

Consider the goal in managing finances to keep the economy running smoothly and stress-free at all times. For example, retirement, education, buying a house, investing, etc. With the right goals, your personal finance planning will be more focused. 

2. Financial planning

Once you have set goals, the next step is financial planning. Always plan your finances carefully so that you can meet all your life needs. The plan may assume multiple payments on a monthly or annual basis. 

For example, utility bills, mortgage payments, education, health, insurance, and taxes. A clear plan can minimize unnecessary expenses. This makes saving and investing easier.

3. Implementation of Finance

This stage is very important because unplanned large expenses can throw your finances into disarray. Do what you have planned. Don’t put off necessary expenses. 

There is particularly worrying delinquency when payments are late. Therefore, this implementation must be carried out with discipline to implement a sound financial management pattern. Avoid large unplanned expenses whenever possible. 

4. Evaluation

Evaluation makes monthly records so that you can see whether the planned finance program is successful. Valuation better manages all forms of income and expenditure. Is the spending plan that you make can be carried out systematically, or does it really cause you financial difficulties. 

Do not let your finances have problems because of mismanagement. Always do an assessment to see the results of the controls you have implemented. Benefits of personal finance Managing money well can have a big impact on life.

Disciplined financial management has many positive impacts. Some of the benefits of personal finance are listed below, to get you started! Manage all types of expenses and avoid unnecessary expenses. 

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You can save or plan the funds needed for your old age. Help organize important payments and bills. Personal finance can be done by anyone to overcome finance problems. With proper management, all types of expenses can be easily managed.

5. Bookkeeping or preparation of the finance budget 

The most important thing is to prepare a finance budget and record all income and expenses with items in the data records. This is useful when you have to make a decision regarding money because there are guidelines that must be followed at all times. 

This also makes it easier to monitor finance flows and assess whether there are expenses that are considered insignificant. Stay thrifty no matter how much you earn. 

Frugal does not mean stingy, but thrifty means someone spends his income on needs and fills it with good things at lower prices. It may seem difficult at first, but over time you will develop the habit of being frugal. 

6. Investment

Investing is better than saving. Today, many people prefer to invest rather than save money in savings. Investments can generate higher returns than savings. The advantage of savings can only come from the interest that banks offer, however, investments generate profits from the performance of the companies in which they are invested. 

If a company is in a stellar position, it is likely to make huge profits. Various types of investments that can be adjusted to the income and profit plan you want. In addition to the benefits, the risks that threaten it are also greater, but don’t panic and make quick decisions when market conditions change. 

This is the investment market, so changes can happen in seconds, apart from mutual funds and equities, You can also invest in mortgages and housing. Land and house prices do not fall every year, so investing in this sector is also an opportunity to earn big profits.


Managing finances can be done by applying the principles of Personal Finance. There are three principles of Personal Finance, namely Priority (Priority), Assessment (Assessment), and Control (Restraint).

For those of you who want to manage your finances even better, also provides classes to learn how to manage your finances with Personal Finance.

An experienced mentor will teach you from thinking about money, making financial plans, how to invest, and much more! Start doing your personal finance from now on!

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