Category: Money

Holiday activities in Bali Indonesia is always a long-awaited moment. Not only by workers but also by teenagers. A holiday in Bali might be the best reference for those of you who are looking for a holiday destination.

But of course, activities in Bali Indonesia must be done with careful preparation and one of them is how you manage your finances while on holiday. Many people waste money on vacation. This happens because they have a bad way of managing money.

Guide to Managing Money During Holiday

That’s why it’s so important to be able to manage money when you’re on vacation and in your life. For those of you who are interested in learning how to manage money when you are on an adventure in Bali, maybe our guide will be useful for you.

1. Set your Holiday Budget at the Maximum

Through holiday budget predictions, we can get an idea of ​​the financial preparations that need to be made. To get a budget prediction, we must first determine the holiday destination.

As much as possible, the holiday destination does not change because the holiday budget is forced to adjust again later. This holiday budget prediction can be obtained from the internet, friends’ direct experience, or reviews of travel bloggers who have traveled to the destination we are going to.

2. Detailing Expenses

After determining your destination, and activities in Bali Indonesia, you need to detail or break down the expenses you will need when on vacation. Apart from big expenses such as plane tickets and accommodation costs, you also need to detail small things such as daily food, entrance tickets to tourist attractions, shopping for souvenirs, and transportation/car rental.

If you are traveling abroad, you also need to prepare your passport, visa, and travel insurance for a fun holiday with your family. By detailing all your expenses, you can avoid unexpected expenses or running out of money while on vacation.

3. Determine the Tourist Destination

To enjoy a pleasant holiday, it is best to determine the tourist destination you will visit. Avoid deciding on a destination impulsively, because you could encounter situations that are beyond your expectations. Discuss with your children and partner the places you will visit. If necessary, you can vote so that all family members can vote.

Well, determining this goal can also be based on what maximum budget limit you have. Because, different tourist destinations, have different expenses. For example, for the costs of going on holiday abroad, you will need extra costs to buy plane tickets, get a visa, and so on. On the other hand, domestic holidays require less money because tickets and accommodation costs are more affordable. You just have to choose which destination suits your budget.

4. Prepare a Budget Well

When you want to do various activities in Bali, of course, you have to start by preparing funds well. Carrying out activities in Bali, if not accompanied by good budget preparation, will make you even more wasteful. So prepare your budget very well, and do the calculations carefully so you don’t end up being wasteful.

5. Write Down Expenses in Detail

To manage your finances well while you are in Bali, one way is to write down all your expenses in detail. This needs to be done so that you know how much money you need to live in Bali during your holiday. So you can minimize waste.

6. Don’t do Activities that have the Potential to Make You Waste Money

There are lots of activities you can do while you are in Bali. Of course, you have to know which activities you should do and which you shouldn’t. This is important because by doing this you will understand which ones have the potential to make you wasteful.

7. Already Know Your Destination in Bali

When you know what your purpose is in going to Bali, you can be sure that you will be much more economical, because that way you can use your money according to your needs.

8. Spend More Time Adventures

One way of good money management, when you are in Bali, is to do more adventurous activities. This can keep you away from activities that could cost you a lot of money, such as shopping, and make you spend less time in the city.

9. Splitting Money

To be able to manage your finances well, you also need to separate which money will be used for basic needs and which will not. This way you will be more careful in using your money and this is very important to do when you are on holiday.

That is our brief explanation of the guide to managing money well while you are on holiday and doing activities in Bali Indonesia. Use it as a reference so that you can be more careful in using money, especially when you are away from home. So, make sure you manage your money very well, to make your holiday always fun to do.

One of the considerations when people want to go on holiday to Bali, including using the best Bali activities tour, is the matter of cost. Making a budget is very important when on holiday to Bali, including when using a tour service to Bali. Below we will explain how to create a budget for a holiday to Bali so that expenses are well spent and managed.

Consult With Tour Service Providers

Making a budget when using a tour service provider requires consultation with the service provider. Later they will take care of it, so we need to consult to determine how much budget is needed. Below we will explain what must be determined to understand the budget that must be paid for the tour service.

1. Type of Transportation

The type of transportation that will be used on holiday to Bali must be discussed, because this greatly influences the budget required. The more classy and comfortable the transportation used, the more money it will definitely cost. There are 2 transportation options, namely by air, namely by plane or by land and sea using buses.

If you want to depart by air, then you need to select the class of aircraft you want again. The higher the class, the more expensive it is, but you will definitely feel the comfort. Meanwhile buses are usually much cheaper, but you need to choose a bus according to the number of people traveling.

You must consult carefully to choose the right type of transportation and of course according to your budget.

2. Tourist Destinations in Bali

Choosing a tourist destination in Bali is important to think about and determine as a planning step before going on holiday. There needs to be special planning so that later you can vacation comfortably and visit several places you want to visit. The more tourist destinations you choose, the greater the costs you will have to pay later.

The costs matter because determining the tourist destination will affect the petrol costs, ticket costs, and even the parking fees that have to be paid. So, as much as possible, choose your tourist destination wisely, so that you can be truly comfortable while on holiday in Bali.

3. Accommodation while on holiday in Bali

Accommodation while on holiday in Bali must also be consulted properly to be able to calculate the budget that must be prepared later. Accommodation in Bali is not all expensive, there are also many cheap accommodation options if you want to make an economical holiday in Bali. You need to consult with a tour service to choose the accommodation you want while on holiday in Bali.

Usually better quality accommodation will be more expensive, but comfort during your holiday is guaranteed. Not to mention, if you choose accommodation with a beautiful view, the price will definitely be expensive but it’s actually worth it. Choose the right accommodation, so you can vacation in peace but still have an affordable budget.

After you have consulted and determined the 3 things above, usually the tour service will tell you the costs that must be paid. Of course, you have to note the costs of these tour services and include them in your budget for a holiday to Bali as initial funds. After that, you can make notes regarding the budget that must be prepared with everything you have previously determined.

The cost of the best Bali activities tour will be the initial cost in the budget that you have to prepare if you want to go on holiday to Bali.

Set a Food Budget

After you have created a budget for tour services, it’s time for you to add to your food budget every day during your holiday. The food budget here is actually outside of the food that has been prepared by the tour service provider, so it really needs to be calculated again. For example, if you want to buy snacks or something else, it is not included in the available tour package.

Even though the tour service package includes food costs, you still have to make a food budget every day. This budget is for you to buy snacks or snacks, apart from that it could also be because you want to try typical Balinese food. So, if you really need it, you already have a budget for food and snacks while you are on holiday in Bali.

You need to add the costs or budget of the tour service to the food budget that you have created with it.

Set a Budget for Souvenirs

Buying souvenirs has become mandatory when you go on holiday, and it still is. You need to set a budget for souvenirs first, so that later purchasing souvenirs will feel better and more organized. This is basically very important, considering that souvenirs for family and closest friends are very important.

You can try making a list of souvenir orders from Bali that you might buy and then you need to record them on the list. All costs starting from tour services, food budget and souvenir budget must be added properly and correctly. This budget will later become your reference in spending goods, and also prepare sufficient funds.

Tips For a Budget-Friendly Holiday to Bali

Many people think that a holiday to Bali is expensive, but in fact this is not always the case. There are several tips that can help you take a vacation that is much more budget-friendly but still enjoyable.

1. Avoid Holidays

Holidays are days when people will travel, and usually there will be more visitors which makes prices more expensive. Starting from transportation, food, entrance tickets, and so on, of course it will be much more expensive on holidays.

So if you want to save money, we recommend avoiding holidays when traveling to the island of Bali. Apart from cost savings, avoiding holidays will make your trip much more enjoyable and more relaxing.

2. Choose cheap accommodation

Choose accommodation that is cheap, currently in Bali there are lots of cheap accommodation options. You can choose this accommodation, although you still need to look at reviews of each accommodation you are looking for. As much as possible, look for accommodation that is of good quality but relatively cheap and close to several tourist destinations.

3. Choose cheap food

Just choose cheap food, because most of the food in Bali is quite expensive even though it tastes very good. Choosing your own food must be accompanied by quality considerations first, then you think about your budget.

These are some ways to make a budget when joining the best Bali activities tour services, so you don’t need to worry.

Talking about money will definitely never end. It feels like money can be a source of happiness for many people. Having a lot of money can make a person’s life feel calmer and more comfortable. But, be careful because money can run out quickly if you don’t realize where you have spent it, especially while you’re on vacation to Bali.

One of the good thing to try when you in Bali is Bali ATV ride Activity. ATV ride could be fun thing to do with your beloved family or friends. Of course, this will bring joy and can be one of the best thing you will do while you in Bali.

How To Spend Money Wisely While on Vacation

Bali is a part of Indonesia. This place is not only known as a vacation spot, both by Indonesians and foreigners. Bali has become a place with various tourist destinations and to this day Bali is an extraordinary place to visit. However, many people don’t know how to spend their money wisely when they are in Bali. For this reason, we will teach you how to spend money wisely when you are in Bali.

Of course, during holidays, it is very important to understand how to use money well, especially if you are someone who comes from abroad. Good money management can make your vacation easier and this can help you avoid various things that might harm you. So, then how can you spend your money more wisely? Here we will give you tips.

Don’t Do Anything Unnecessary

This must be done so that you don’t waste money on something you don’t need. So by not doing these unnecessary things, you can use your money much more wisely and this can keep you from running out of money quickly. So, one of the best tips so that you can use money more maturely and wisely is not to use it for unnecessary purposes.

Consider Where To Stay

For those of you who want to save more and want to use your money more wisely, you can choose a cheap place to stay. Don’t use accommodation that doesn’t fit your budget, because this can make things difficult for you. To be able to use your money wisely, it’s best to choose accommodation that is not too luxurious and not expensive. Adjust it again to its function and needs.

Less Bad Activities

To be able to spend money more wisely, start by not doing activities that could have bad consequences. Carrying out activities according to your holiday goals is important and this can have an impact on how you spend the money you have. If you really want to go on holiday, then avoid all kinds of activities that can have a bad impact on you, because this can later have an impact on your finances, so that in the end you will only spend money on things that are completely useless.

Know What Your Purpose Is On Vacation

What is important to help you spend money wisely while you are in Bali is that you must know exactly what your purpose in Bali is for. This has a big influence on the use of the money you have, so that later it will make you more mature when using money.

Don’t Eat At Fancy Places

When you eat at a luxurious place, of course you can spend a lot of money just for one meal. Of course this is not a wise thing to do. Therefore, find out first about places to eat that have cheap prices, but still prioritize the taste of the food they sell. It’s important to choose a cheap place to eat, as this can help you save even more.

Don’t Overspend

Many people tend to buy whatever they want but don’t necessarily need. It’s not easy to resist the urge to shop, but before you start, make sure you really need it.

Don’t buy things just because they look attractive. So think first before you pay or swipe your credit card.

Compare Prices, Brands And Quality Before Shopping

Often the product you want to buy is not only available in one shop. The first place you visit may not necessarily offer prices that suit your pocket.

Restrain yourself from buying straight away, and go around to several other shops. You can compare brands, prices and quality of goods before you buy them. You don’t need to spend time, money and energy, just use the internet.

Provide Unexpected Funds

Make sure you set aside some of your salary for unexpected costs such as illness, for example. If at any time your monthly salary is not enough because you have too many expenses, you can also use this pool of money.

Saving money wisely is the art of financial management. Even though it is difficult to reduce expenses, this is not necessarily impossible.

Reduce Spending On Food And Drinks

Various shops offer interesting food and drinks. However, cooking yourself at home will certainly reduce expenses. Another small example is making coffee. You can make coffee according to your taste at a cheaper price than going to a cafe.

Make Vacation Plans Well In Advance

So that you can be wiser in spending money while on holiday, it’s a good idea if you have planned your holiday very well in advance. The goal is so that you can prepare a better and more mature budget. Doing this will enable you to reduce your expenses even better.

Make A List Of Vacation Destinations

In order to be wiser in spending money while you are in Bali, you can compile a list of tourist destinations that you want to visit. By doing this, you have an estimate of how much it will cost. This will make you wiser in spending and using money while on holiday.

Using Money Wisely

The next tip for you who wants to use your money wisely. Many people are easily tempted by various souvenirs when going on holiday, so they can spend more than the limit.

That’s why restraining yourself during the holidays is very important so that you can use your finances wisely and only buy priority items.

That way, you can prevent expenses from increasing during the holidays and avoid buying items that have minimal benefits.

These are some things you should know, if you want to be wiser when spending money while on holiday in Bali. Your time in Bali will be way more fantastic with Bali ATV ride activity and of course this could be one of all the things that you must try while you in Bali.

As we all know, so many people use Tiktok as their social media platform or even download Tiktok video on pc. Monetization is one of the things that creators or influencers do on Tiktok. To monetize Tiktok, there are quite a lot of options that you can choose on this platform.

By monetizing, you can earn money from the Tiktok platform. This is a promising business field in this era.

What is Monetization?

Monetization means a way of converting content to money. Not just in Tiktok, monetization can also be done on other platforms such as YouTube, X/ Twitter, Instagram, and so on. Monetization can be very beneficial for creators, they can channel what they like into the form of content, and then get money from the content they upload.

But you need to have a lot of followers so that you can successfully monetize on Tiktok. Therefore, you need to make some efforts to get a lot of followers.

How To Start Monetizing on Tiktok

Tiktok provides various requirements that you must know and fulfill to start monetizing Tiktok. Once you’ve made sure each requirement is met, you can monetize with the following steps:

• The first step is you need to open the Tiktok platform or application on your gadget.
• Select Creator Tools, to find this menu, you can click on Profile, and choose the icon with three lines, you can find this icon in the top right corner.
• Scroll your smartphone screen, and choose how to monetize according to what you need. Before monetizing, make sure every requirement must be met.

Types of Monetization on Tiktok

Tiktok provides several opportunities to earn money or monetize. First of all, you need to know about the Creator Marketplace. This Tiktok feature can help content creators promote so that they have the opportunity to be recognized by many people, get endorsements, and other purposes.

To use the creator feature, you must change your account on Tiktok to a business account or creator account. In addition, you must also have 1,000 followers (minimum). Next, here are some types of monetization that you can find on Tiktok.

– Affiliate Marketing

Doing affiliate marketing on Tiktok is not much different from other platforms (especially social media). We need to promote and explain partner products to viewers. When your followers buy partner products using the link you provide or your cart, you can earn a commission.

For you to get product video content, you need to download Tiktok video on pc or smartphone and then upload the product video.

See also : The Benefits of Choosing a Long-Term Investment

– Tiktok Shop

You may not want to just do marketing but want to sell your real product. You can use the features on Tiktok Shop, this feature can make you not only buy but also sell products. To buy products online, we don’t have to use a marketplace, Tiktok can be a place to make buying and selling transactions.

To sell on Tiktok Shop, you need to have a product to sell, the product you will sell must meet the requirements of Tiktok Shop. You also need to complete various information about your store and products.

– Live Streaming

This is a very popular feature on Tiktok, this feature can make you broadcast your activities live, and Tiktok users can watch the live broadcast. A live stream on Tiktok can be seen on the FYP page under certain conditions such as according to preferences, there are many viewers, and many likes.

Monetizing with the live-streaming method means getting gifts. Gifts are the main source of income when users are live streaming. Viewers can give gifts to the host and there are many types of gifts available. The price or value of each gift also varies from the smallest to the largest.

– Collaboration

You can collaborate with other influencers or with a brand.

> Influencer collaboration

Influencer collaborations can take the form of live streaming or video content. This collaboration benefits each party, you will get a wider segmentation of followers, from other influencers’ followers and your own. Likewise, other participating influencers can also get these benefits.

There will be a high possibility for you and your partner to gain a lot of followers.

> Brand Collaboration

Brand collaboration means endorsement, you can do this collaboration on Tiktok and many other platforms. Monetization through brand collaboration is done by reviewing, appreciating, promoting, and recommending certain brands on your account. You can get higher prices if you have more followers.

Tiktok Account Building Tips

Maintain and improve the strength of your Tiktok account so that you can successfully monetize on the platform. Do your branding well so that you can be different from other creators. You can find out what can represent your account well.

A unique account will be more easily liked by Tiktok users. Not only does it have to be unique, you need to know what niche you are most interested in so that it can help you do branding. Focus on that niche and upload content consistently. For example, your niche is tips & tricks, you can make videos about download Tiktok video on PC, and so on.

Preparing for your future is an important thing for your life. It helps you secure anything that might happen in the future. One of the most essential parts is how you secure financial stability in the future. Thus, it will be helpful if you know tips for successful long-term investment strategy.

If you want to achieve financial stability, you can simply choose some long-term investment instruments. Long-term investment can be challenging for beginners. However, you can always learn and practice what you get.

Long-term investment will not be challenging if you prepare it right for your financial condition. Aiming for the perfect instrument for your future takes a lot of effort, from knowledge to mental. It also needs a lot of research before you decide which investment you will use.

The Types of Long-Term Investment

Before you start choosing the right investment, you will need to know the types of long-term investments that will give you a secure future. By understanding the types, you can decide which one you will choose to invest your money on.

Here are some of the recommended long-term investments you can choose:

Bond Funds

For beginners, it can be challenging to understand each type of long-term investment. One of them is Bond funds. What is it and how it works? Let’s get to know more about it!

Bond funds, just like their name, are funds that contain many bonds from the issuers. It can be duration, issuer, and even riskiness. There will also be some factors that affect the bonds.

If you apply for a bond fund, the issuer (bank, company, or government) will agree to share a specific amount of interest annually.

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Growth Stocks

If you want to try investing in stocks, then you can choose growth stocks. It is a great instrument as it promises high growth. It means you’ll also get higher investment returns.

This investment type is great for the ones who want to get higher returns. However, it also has a higher risk. So, make sure you consider the benefits and risks before you start investing in growth stocks.

Dividend Stocks

If you want a more secure long-term investment, you will be happy to find dividend stocks as your instrument. It gives you a stabler investment with fewer risks, making it a good choice.

This instrument is great if you choose mature companies as your investment.

Roth IRA

This instrument is good as a retirement fund. It gives you a chance to save after-tax money. Besides, you will also get a great return. You will redeem the money back and withdraw it tax-free, which will make you feel more confident to face the future.

If you’re preparing for your retirement, go choose this instrument!

Real Estate

Today, real estate value gets higher every year and you can even get a lot of money when investing in it. It’s one of the tips for successful long-term investment strategy.

It might sound old-school, but this instrument is a good thing if you want to be your own boss and get a multiplied return over time.

Long-term investment is one of the most important parts of growing old. You can choose how you invest your money if you understand which instrument, is the best. Thus, you can start considering them.

The Benefits of Choosing Long-Term Investment

If you want to explore more opportunities in long-term investment, you can get many benefits from it. As a beginner, you can also find many benefits to grow your assets for your future. Here are some of the notable benefits of long-term investment:

Lower risk

Compared to short-term investment, long-term investment offers lower risk which will be good for you. It doesn’t feel hurried, but it gives your money enough time to grow and give you the most optimum return. It’s different with short-term investment which tends to fluctuate over time.

Less burden

If you want to try it as a beginner, here are some tips for successful long-term investment; invest in small quantities in a mutual fund scheme to get less burden when you invest your money. It will help you manage your budget without giving you too many burdens to your cash flow.

Compounding

It gives you the benefit of compounding, which will make your money grow over time. As you invest longer, you’ll get higher returns in the future. At the end of the term, you can get more profits from your initial investment.

Tax Saving

It helps you will tax planning, which will let you gain more returns. Short-term investments are taxed, but long-term investment is lesser than short-term investments. It helps you save more money and thus, will make it worthwhile.

Perfect for retirement

Just like what we mentioned before, long-term investment is a perfect way to secure your future. The days after retirement will be more fun and you can be more relaxed about life. You can use your retirement days to explore more interesting things while having passive income regularly.

Many people opt to have long-term investments due to the security it offers. It brings easiness and ensures your money is worth investing. It helps you a lot in managing more assets, thus making it a perfect way to prepare for your future.

How to Start Your Long-Term Investment

Among all tips for successful long-term investment strategy, you will need to know how you can prepare yourself. The key to a perfect investment is by understanding the know-how and basic principles for it. Investment will never be a bad thing for your retirement days, so you can do it as early as you can.

Starting your long-term investment can be simple; just save your monthly income for future investment. No matter how small it is, you can always save it for a better future!

Are you ready to save money for a long-term commitment to invest your money? If you want to start investing, make sure you understand all things related to it! Be patient and stay considerable. Good luck!

Blockchain technology is getting more popular these days. Since the increase in public curiosity about the world of cryptocurrency, the search for blockchain technology has also increased.

This happens because these crypto assets use a technology called a blockchain. So, the blockchain is a database that cannot be replaced or changed. In essence, blockchain is a technology used to store digital data connected with cryptography.

For those of you who are curious about what blockchain is, this article is for you. Because after this we will discuss the future of blockchain technology: potential applications and implications

What is Blockchain?

Blockchain is a database mechanism technology that enables transparent sharing of information in business networks.

Even so, many other sectors can take advantage of this technological development from Blockchain.

The meaning of the naming of this technology reflects how the blockchain works. Where this technology utilizes computer resources to create connected blocks (chains).

Blocks that are connected are later used to execute a transaction. This technology is quite interesting because it is not centralized. Blockchain can run on its own using a computer algorithm without any specific system that regulates it.

Use of Blockchain Technology

The financial sector is the main sector that takes advantage of this technology. In the financial sector, this technology is likened to a digital cash book that can be accessed by anyone, anytime, anywhere easily without having to get approval from parties or financial institutions in general, such as banks.

This technology makes all transactions in it more transparent and subagencies minimize data misappropriation such as bribery and corruption.

In 2018, McKinsey created a table of blockchain opportunities in various other fields. Starting from the medical sector, agriculture, property, and telecommunications.

Blockchain Working System

The simple explanation is that the blockchain starts when a block stores new data. The system consists of two types of records, namely transactions and blocks. What is unique about this technology is that each block will contain a cryptographic hash to form a network.

The function of the cryptographic hash is to retrieve data from the original block and convert it into a compact string. The string is used as a detection alarm if potential sabotage is found.

Its decentralized nature means that this technology does not have a single authority with full control, but is divided into each computer that has installed special software or software.

Advantages of Blockchain Technology

Every new technological development certainly has its element of excellence. Like in the field of blockchain technology.

Among others are:

1. Transparent Transaction System

This technology is able to store transaction data safely and transparently. When making transactions, there is public access that can be seen by everyone without having to login access. This is of course very different from the banking system or pattern in general.

2. Have Good Data Protection

There is a verification system by miners before canted on multiple computers. The database structure is append-only or only add and does not have edit command access. So, hackers will not be able to change the data.

3. Efficiency and Faster

The conventional currency transaction process will take quite a lot of time and there is a factor of human error involved. However, in blockchain technology, transactions become more efficient, fast, and of course safe.

4. Guaranteed Security

Currently blockchain is equipped with the advantages of cryptographic encryption. So, transaction security is not a problem. Transaction history cannot be changed because encryption uses cryptography. So as to minimize fraud.

5. Better Audit System

One of the important functions of blockchain technology is its suitability. The audit trail of an asset can be known because everyone can see and track transaction data. There is no more potential for embezzling corruption funds because transaction data is public, immutable, and append-only.

The Blockchain Way To Change The World

Blockchain called it a new technology capable of changing the world. This technology has its charm in the eyes of its users, now we will discuss the future of blockchain technology: potential applications and implications, among them:

• Can Increase P2P Interaction

With this technology, peer-to-peer (P2P) interactions can be continuously improved without the need for an intermediary. Like digital currency or cryptocurrency exchanges that no longer require the presence of a professional broker.

• Provides Full Control over its Assets

Assets stored on the blockchain via cryptocurrency do not have rules over asset control like in banking. If the bank goes bankrupt, the assets stored may not return.

In contrast to crypto assets that are stored using blockchain technology. Everyone has full control over their assets without being tied to the policies of the central bank or local government. Users can manage themselves through a crypto wallet which is free to access at any time.

• Encouraging Scientific Progress

Blockchain technology is able to change the scientific progress that is being faced by giving access to everyone through real-time data and eliminating large companies, institutions or foundations from controlling important information. Thus, data on an open blockchain can be accessed and managed for research purposes by all groups.

• Offers Stability

Inflation and instability are always experienced by fiat currencies that are commonly used in various countries. Inflation is caused because the government through the central bank can print as much money as they want.

However, crypto assets stored with blockchain technology can avoid this inflation because of their resistance to inflation. Especially Bitcoin which cannot be produced forever and there are only 21 million worldwide.

• Able to Increase Crowdfunding

Crowdfunding is a way of raising money that businesses do for their products. Investors can make small investments to reduce risk during the company’s fundraising process.

Crypto assets can be used as a tool for fast, efficient and systematic crowdfunding because they use a strong blockchain network and are difficult to fake.

Closing

That’s a discussion about the future of blockchain technology: potential applications and implications, hopefully it can cure your curiosity.

Every goal requires a plan and strategy to achieve it, as well as financial goals we need to make budget planning to make it happen. Here are five easy steps we can take in making a personal and family financial budget.

Start By Setting Goals

The first thing that needs to be done is to write down our financial goals clearly and measurably, one of which includes the targeted amount of money along with the time frame so we can evaluate it. It is like better to have an emergency cost of about 10 million until the end of 2018. Furthermore, the targeted amount of money is divided by the current number of months to find out what the monthly target is.

Know Total Monthly Income

In making a financial budget, we need to know how much income we get each month, both from salary and other sources of income. It is important to remember, what is recorded is the amount of money earned after deductions in taxes or benefits on health or pension benefits for employees, or profits like net income after deducting business operating costs for entrepreneurs, traders, or freelancers.

Calculate Total Monthly Expenses

We also need to calculate how much money is spent each month. When calculating monthly expenses, calculate routine expenses such as monthly groceries, daily meal allowance, transportation allowance, mobile phone credit, debt repayments, etc.), as well as non-routine expenses (such as medical expenses and entertainment). Now for those of you who are confused, to be able to find out exactly how much your monthly expenses will be easier if for the first 3-6 months we record every expenditure.

Create a Realistic Budget

After doing the three previous steps, we can then start making a budget plan by reducing the total monthly income (step 2) with the accumulation of total monthly expenses (step 3) with a monthly target (step 1). If the final value is positive, it means that we already have a realistic financial budget plan that is following the current lifestyle. Conversely, if the final value is negative, it means that we have to re-evaluate our financial goals and check our expenses and income again.

Check Back Goals and Expenses

As already explained, if the budget plan (step 4) is negative then we need to re-evaluate the previous budget plan. Check again which posts can be changed and adjusted, taking into account the basic needs. For example, we can evaluate spending priorities, which ones still need to be included in the budget, and which ones can be eliminated, or reduced in budget value.

Apart from that, we can also reconsider the target of money and time intervals in financial goals, we can also look for other sources of income to supplement our income, in essence, the evaluation process can help us make a realistic budget.

Here are easy steps in creating an effective budget:

1. Prioritize Mandatory Expenses

Mandatory fees are fees that must be paid every month. You can identify mandatory fees as they are fixed, although some like electricity or water bills can vary from month to month. If you must pay a debt, that should also be included in your mandatory expenses.

2. Compare Estimated Costs with Actual Costs

Back to expense history. Compare nominal in several categories. Comparing the estimates with the actual costs to be paid needs to be done. This is to avoid any shortage of costs or any remaining money that can be set aside for savings.

3. Set Spending Limits with Income

Now that you know how much you’re spending each month compared to what you’re willing to spend, it’s time to set a spending limit. Start by budgeting mandatory expenses and subtracting them from your income. The remaining amount is what can be budgeted for your preferred spending or savings goals. What is budgeted for expenses should not be more than your income, otherwise you will find it difficult or you may even end up in debt.

By making this plan it will make it easier for you to use money wisely and not become consumptive, besides that, we can also reconsider the target of money and the time lapse in financial goals, you can also look for other sources of income to increase your income, in essence, the evaluation process can help us make a realistic budget.

Based on the purpose, investments are divided into long-term, medium-term, and short-term investments. Different time frames, of course, different investment strategies and instruments.

Types of Investment Based on Purpose

1. Short-Term Investment

Short-term investments last less than one year to three years. For example, a 25-year-old youth intends to get married in three years. So he needs fresh funds to organize a wedding that is not cheap.

Given this need, the youth are advised to invest in low-risk instruments in the sense that they have stable fluctuations in value, and high liquidity so that they are easily converted into cash, and can generate a steady income. Some of the suggested instruments for him are deposits, money market mutual funds, or short-term government bonds.

Can this young man invest in stocks for this financial purpose? You can, but of course, it’s not recommended. The reason is that stocks are instruments that have high fluctuations in value in the short term. Buying stock is buying a business, and business growth cannot be known only in a short time.

2. Medium-Term Investment

When someone has financial goals between 3 to 10 years, then this can be called a medium-term investment. For example, in the next five years, X must enroll his son at a well-known university in Jakarta. So X needs a sizable fund to pay the entrance fee and the first semester.

Given that his funding needs are more than five years, X can choose instruments with a slightly higher risk than deposits, money market mutual funds, or government bonds, in the hope of obtaining higher yields. The instruments in question are fixed-income mutual funds (bonds), private bonds, and mixed mutual funds.

3. Long-Term Investment

When the investment goal is over 10 years, this investment is included in the long-term investment category. The investment aims to be able to increase the cost of education for children, increase the cost of children’s weddings, buy assets for posterity, and prepare retirement funds.

The longer the investment period, it will be more flexible a person choosing the instrument. They can choose instruments with low, moderate, and high risk, or instruments that cannot be converted quickly. Some of the instruments that can be chosen for long-term investment include precious metals, stock mutual funds, stocks, and property.

The importance of investing in the present is to prepare for a better future. Before understanding the importance of investing, it’s a good idea to have a picture of the future you want. This description can start from investment goals, such as buying a house, planning recreation, wedding capital, and so on. After the goal has been formed, then you can start investing.

Why You Should Invest? Here’s The 5 Reasons

Let’s understand about the reasons why you should invest!

1. Future Profitable Yield

One of the reasons for investing is of course to make a profit. This advantage is often referred to as yield. The amount of return you get also varies, depending on the investment product and the period of the investment product. There is one product that you can use to start investing in mutual funds.

2. Make Life Calmer

The importance of investment also makes life calmer. Planning for future financial needs will certainly make you better prepared to meet those needs. Some investment products can also be measured based on the period you want. The time frame is divided into short, medium, and long-term investments. This time frame measurement is based on goals and financial needs in the future.

3. Affordable Capital

Apart from that, one of the reasons for the importance of investing is that you can start with affordable capital. Some investment products with affordable capital are mutual funds and gold. Mutual funds themselves are investment instruments to accommodate capital for a group of investors so they can invest in the capital market.

The capital to use this product is really low so you can invest early, while gold is an investment in precious metal assets which can be in the form of physical gold or digital gold. You can start to invest in these products as soon as possible.

4. Get Passive Income

By investing, you can get passive income according to a certain period. Passive income itself is income that you don’t get directly, meaning you can still earn income when you are not actively working. Meanwhile, active income is that you have to work every day to then receive a salary every month.

5. Achieve Financial Freedom

Another reason for the importance of investing is the attainment of financial freedom. Financial freedom is a condition where you no longer need to work hard to earn money because you already have enough assets to meet all of life’s needs, both now and in the future. By investing, you can allocate assets to various products so that you can use them according to the financial goals that you have planned.

After understanding the importance of investing, you will be better prepared to face future financial needs to meet your financial goals.

The factor that is quite influential and cannot be avoided on the value of money is inflation. Inflation should be taken into account when making financial planning, including household financial planning.

Inflation causes the price of consumer goods and services to increase so that the expenditure budget will also increase. An increase in the spending budget can reduce the regular budget for saving and has the potential to disrupt future financial plans. Without taking into account inflation, family financial planning may not achieve the goals that have been previously set.

What Is Inflation?

According to some sources, inflation defined as an increase in the price of goods and services in general and continuously over a certain period. The calculations are carried out by the Central Bureau of Statistics for seven expenditure groups, namely food, processed food/beverages/tobacco, housing, clothing, health, education and sports, and transportation and communication. This grouping data was obtained through the Cost of Living Survey.

There are several causes of inflation, namely;

The increase in supply or cost-push inflation that occurred due to the depreciation of the exchange rate, increase in production costs, the impact of inflation in other countries, especially trading partners, increases in commodity prices regulated by the government or administered prices, and a sudden decrease in supply.

Increased demand or demand-pull inflation occurs because total demand exceeds the capacity of the economy, for example by hoarding certain goods. There is a combination in increasing demand and supply.

Expected inflation is when people anticipate future changes and try to adapt, for example, an increase in the price of goods before the holidays even though the stock is sufficient. Increase of the amount of money in circulation. When the amount of money is greater without any change in the number of goods, the value of money will decrease and the price of goods will increase.

If the inflation is higher, then the price of goods is also higher and services in the market, so consumers’ purchasing power weakens.

Dealing with the Impact of Inflation

The impact of inflation that is most felt is the increase in the price of necessities. Spending plans can swell especially with rising food and fuel prices. That way, the thing that must be done immediately is to review the household budget plans, and whether they are still relevant to the current conditions.

Adjustments also need to be made in leisure posts such as hanging out in restaurants or coffee shops, watching movies, or traveling. So that budget savings can be reduced in cost or insensitivity without the need to eliminate the post.

To minimize the impact of inflation, you can do the following things;

1. Start saving

Record the expenditure and determine which budget can be reduced because it is not a priority. Slightly overstate the spending plan figure to accommodate possible future price increases. For those of you who already have an insurance need to re-evaluate the policy. If the current policy exceeds your needs, contact your agent to change the type of protection to better suit your needs. Most importantly, always measure your financial condition and adjust your lifestyle.

2. Increase financial understanding

Learning finance doesn’t have to go through formal schools or courses, now there is a lot of material spread on social media that you should study to help you manage household finances. Keeping up with the development of the national inflation rate or understanding how to invest healthily, is quite important for managing a household. Basic education in finance can protect you from the risks of unpredictable economic changes.

3. Create a backup plan

If the frugal option isn’t suitable for your sustainable plan, it’s time to make another plan, for example by looking for additional income by opening a business or looking for a new job with a higher income. You can also delay purchasing assets that have a high value.

4. Invest

Instead of saving the same as putting away money with monthly discount charges, investing in stocks and bonds can pay off more in the long term. Those of you who are still beginners can start with low-risk investments such as mutual funds. Deposits are also an attractive option because the interest is higher than savings. Also, reserve an emergency fund for urgent needs that come suddenly.

5. Using Insurance

Many think that insurance can prevent risks, even though insurance is protection from the financial impact when a risk occurs. When a risk occurs, insurance guarantees that you will be exposed to the minimum financial impact and can still move on afterward. Having protection will help you when an emergency occurs, especially when there is inflation.

Inflation is not always predictable, so you need to be prepared to deal with it. When planning your finances, remember that the future is full of uncertainty and inflation. Therefore, preparing a mature financial plan is a good decision for the future.