Majalah Al-Hikmah Edisi ke 17

MA JA L AH A L - H I KMAH 33 Managing money is something everyone has to deal with, no matter how old we are or how much we earn. In today's economic situation, where the cost of living keeps increasing, knowing how to handle our finances has become an essential life skill. The ability to handle money wisely determines our financial stability, mental well-being, and future opportunities. THE IMPORTANCE OF MANAGING MONEY WISELY IN DAILY LIFE Nur Dalili binti Ahmad Fakhrurrazi (1220699) Fakulti Ekonomi dan Muamalat, (tahun 4) USIM dalilifakhrurrazi10@gmail.com One of the main reasons money management is important is that it helps us cover our daily needs without feeling overwhelmed. When we make a simple budget and keep track of our spending, we are less likely to waste money on unnecessary things. This also helps us make sure we can pay for essentials like food, transport, bills, or school fees. Without basic planning it is very easy to overspend and end up feeling stressed later. By planning expenses ahead, we can enjoy a smoother and more controlled financial routine. Good money management is also about preparing for unexpected situations. Life does not always go the way we expect. We might get sick or face unexpected expenses such as your phone or laptop suddenly breaks. Having some savings, even a small amount can really make a difference during emergencies. Without savings, people might need to borrow the money which can lead to more problems later. Therefore, responsible money habits provide protection during difficult times and reduce financial anxiety. Moreover, managing money wisely helps individuals achieve bigger life goals. Whether they aim to buy a house, start a business, pursue further education, or travel, proper financial planning makes these dreams more realistic. By managing our income properly and saving consistently, we can slowly move closer to our goals without putting ourselves under financial pressure. Another important aspect of money management is avoiding unnecessary debt. Many people fall into financial trouble due to impulse spending, especially because of the lifestyle pressure and social media trends. Understanding how credit payments and interest work can prevent us from making