How should a typical office worker manage his/her finance?

How should a typical office worker manage his/her finance?

There are mainly 2 concerns of a typical office worker.

1.       How to plan their own income correctly and reasonably

2.       How to better manage their finances

Office workers can basically be divided into two types: "Busy but poor people" and "Moonlight Clan". "Busy but poor people" are generally too busy at work and have no time to manage money. They can only let their assets shrink little by little in this era of low interest rates, but they can't do anything about it. As the name suggests, the monthly salary of the "Moonlight Clan" is just enough for their own expenses, there is no spare money for financial management, and they cannot save much money.

So how should office workers manage their finances?

01     Reduce Debt

Office workers should reduce their debts, and having contingency sum is vital. The simplest way to reduce debt is to improve their net worth. The main liabilities of office workers include housing loans, car loans, credit cards, and consumer loans. Basically, the level of debt that an individual or family can bear should be the remaining disposable income after deducting the monthly fixed expenses and savings requirements.

02     Reduce Expenditure

It is difficult to have more income since promotion or pay raise does not come easy, then they should consume in a planned way and start with "cutting expenditure." Choosing the right time for shopping, buying only the essentials, and avoiding over-swiping credit cards and borrowing money are all things that office workers can control. At the same time, develop a good habit of keeping accounts, check your income and expenditure regularly, and avoid spending aimlessly.

03     Resist Temptation

In the new age, some people will say that it is most important to have fun now, since no one can control the future. But contrary, there are more things worth exploring and experiencing in life. In order to be truly happy, you must be frugal, control your own expenses, and focus on fulfilling your life dream.

04     Forced Savings

Office workers should develop the habit of forced savings. The first step of financial management for office workers is to save first. You must first save a sum of money as the capital of investment, and then talk about accelerating the accumulation of assets.

05     Active Investing

Banks’ fixed deposit interest rates have also been lowered frequently. Office workers in the era should pay more attention to investment, consider the rate of return according to their own needs and risk tolerance, and choose a relatively safe and secure platform.

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