Note Carefully the Importance of Maintaining Financial Health!

In addition to paying attention to physical health, financial conditions also need to be considered. Reporting from the OJK, the meaning of healthy finances is a person's ability to balance current and future financial needs. This includes one's ability to deal with unexpected conditions in financial activities.

The characteristics of disrupted financial health can be seen from spending that is higher than income, minimal savings conditions, default on loans, and poor financial planning. If this condition is not resolved, people will experience financial stress, namely fear of their current and future financial conditions.

How to Maintain Financial Health

The reason financial health is important is because unhealthy financial conditions will affect one's physical and mental health. Feeling economically insecure makes people susceptible to illness and anxiety.

But actually to achieve a healthy financial condition is not difficult. As long as you understand the concept of finance and are willing to put more effort into managing personal finances. Here are ways to maintain healthy finances that you must try:

Understanding the Concept of the Financial Pyramid

The financial pyramid is a picture of solid financial planning. That in managing finances, clear and detailed planning is needed. You can start by studying financial descriptions to understand which ones are the priority in terms of finances.

Sort Out Wants and Needs

The ability to sort out what is a need and want will help you manage expenses appropriately. You can use the 50:30:20 method, to split the income. 50 percent of income for daily needs, 30 percent for entertainment and whims. Finally 20 percent for savings.

With this method you can allocate income to needs. And also can still have fun, buy goods or entertainment as you wish.

increase Financial Protection

You can't predict what will happen in the future. However, you must prepare a future protection fund. The trick is to have insurance. With insurance, your mind becomes safer, because you have prepared funds for future needs.

Insurance here is not only life and health insurance. Education insurance, home, vehicle, and other types of insurance are also necessary. You can adjust the type of insurance according to your financial needs.

Savings and Pension Fund infrastructure

Apart from having insurance, you should also start preparing for savings and retirement funds. You can share 20 percent of the money set aside from your income in part for emergency fund savings.

Some for retirement savings. Or another way can be by adding passive income, for additional savings. By having savings, you have an emergency fund that can be used at any time.

When there are unexpected conditions that affect your source of income, you will still feel safe because there are still emergencies that can be used temporarily. Retirement funds also mean that you have prepared finances so that you can live prosperously in old age.

So, those are some ways to maintain financial health for now and in the future. Financial health has a direct impact on a person's physical and mental health. Planning and managing finances properly will result in well-chosen income outcomes.