4  Financing Skill; the faster you know, the better

Everyone may be familiar with the skills needed to work, such as communication skills, negotiation, and teamwork. But does everybody know that there’s another type of skill that you should have no matter how old you are or what career you do? It is the financial skills. This time, ACU PAY brings you 4 financial skills you should know. The faster you know, the better because it will make your life a lot better.

Work Smart

This is the first skill that one should have, not just active income, but at least two additional incomes, and one of them should be passive income.

Active income is a job that earns income only when working for a specified period. It requires labor and time to exchange for money. If you stop working or get fired, it will result in a loss of income. On the other hand, passive income may require investment in the early stages, but if everything goes into the system, revenue comes in regularly without having to work hard.

Warren Buffett once said, “If you don’t find a way to make money while you’re asleep, you have to work for the rest of your life.” This is the importance of earning income beyond active income.

Use Money Wisely

It is good to make a lot of money, but if you earn it with no management, the money you earn is simply wasted. Thus, the next essential skill is doing income and expenditure accounting, which gives us a sense of how much money goes in and out of each month, where it’s lost, and where it needs to be adjusted. Every expenditure must be consciously spent, considering the importance of not buying luxury items according to the current trend.

In addition, what comes with more income is tax payment, which is an important matter outside the classroom. Therefore, we need to be well aware of tax planning so that we can properly manage our taxes by using the tax benefits required by law to reduce annual income tax without having to pay too much.


Another essential skill is to know how to save before spending. The easiest way to save is to deduct 10% of your income, which should be stored in emergency funds. We should reserve at least 3 – 6 times our monthly expenses. 

After sufficient savings, what causes the money to grow is high returns such as savings in fixed deposit accounts, savings in insurance policies, savings in provident funds, and savings in mutual funds.


The last skill they should have is investment. It’s good to start investing at an early age because we can use the power of time called compound interest which is interest on principal plus the previous interest accrues, even Albert Einstein gave a compound interest to the world’s eighth wonder. 

What’s important to invest in is knowledge and invest in what you know. Early investments may be wrong, but if we correct them, we can improve our investment. Once invested, we must always follow up, study, and find out what has already been invested.

In conclusion, the financial skills that we should know, whether for the next 10 years are never going to change, are the skills that make money, know how to spend, save for savings, and invest — these are four skills that we all should have.

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