Understand Financial Condition: The Early Key to Regulating Finances

Why do you need to understand your financial situation?

It's only been a few days of payday, how did it run out? Or do you suddenly realize that savings at the end of the month are only small? This could be a sign that you don't fully understand your financial situation.

We are often trapped in a “know it's okay” situation — after all, the important thing is to have money, be able to shop, and not run out of money. In fact, this mindset makes us not have full control over the money we have.

Being indifferent to financial situations is like turning a blind eye when driving a car—danger and risk!

Why is it important to understand the financial situation?

Understanding your personal financial condition means that you know exactly your financial condition—how much income, how much debt, how much to invest, and which expenses to reduce—you can make better decisions.

• Avoiding the Risk of Debt Default or Bankruptcy

Knowing how big your expenses and debts will help you avoid debt and “debt-trap”.

• Avoiding the Illusion of Financial Stability

Understanding your financial situation makes you aware of whether you are really financially secure or just look secure.

• Minimizing the Risk of a Consumptive Lifestyle

When you don't have an understanding of money, it's easier to fall into a wasteful lifestyle because you feel like “there's still money.” Understanding your financial situation makes you smarter in choosing priorities.

• Reducing Uncertainty in the Future

If you know your financial position, you are better prepared to deal with uncertainty and have a backup plan to deal with emergencies.

How to understand your financial situation?

Let's start by discussing simple steps you can take to understand your financial situation. No need to worry, it's important that you know where it is right now.

1. Track All Income and Expenses
2. Calculate the Net Worth of Your Wealth
3. Separate “Needs” and “Wants” Expenses
4. Create a Monthly Budget
5. Monthly Evaluation

Manage Your Finances with FINETIKS

If you find it difficult to understand your own financial situation, try using a financial app like FINETIKS. In this application, you can monitor income and expenses, calculate net worth, and create budget plans more easily.

So, there's no more reason not to understand your financial situation. Let's start getting to know your finances from now on so you can live more calmly, avoid unnecessary debt, and achieve the financial goals you dream of!

Download the FINETIKS application now at Google Play or App Store, FREE!