Many opinions say that the millennial generation or the generation currently aged 20-30 years is the generation that is the worst at managing finances. This is because the millennial generation has a different lifestyle from previous generations. Quoting from tirto.id, it is revealed that most of the millennial generation tend to have a more wasteful lifestyle, find it difficult to save and do not really care about investment needs in the future. This will of course result in financial risks that will be faced by the millennial generation in the future, due to unhealthy financial management.
So, is #SobatKaeN currently included in this group? If so, here are some tips for managing millennial finances that you can apply in your daily life:
Have clear financial goals and plans
Having clear financial goals and plans will make it easier to determine the financial plans you want to carry out. So that the financial proportion can be right according to the portion. #SobatKaeN can divide financial proportions using the 50:30:20 method from the income they have each month. 50 percent for daily living expenses in one month, 30 percent for savings, investments and other financial needs, and 20 percent for consumer needs.
Check the amount of money in the account periodically
Routinely checking the amount of money in your account is considered quite influential in efforts to manage your finances. Checking the amount of money remaining in the account will make us more careful when we want to use it. You also need to remember never to use money in savings if it is not urgent.
Don’t go into debt if you don’t really need it
As technology currently develops, there are many digital wallets that offer a “Pay Later” feature for their loyal users, where with this feature we can buy goods/services in installments or pay in the following month. Of course, with the presence of this feature, it is increasingly tempting for many people to use it, especially to fulfill their desires.
Whether you realize it or not, using pay later is a form of debt, so there is an obligation to pay and repay it. This will cause the focus of our salary every month to be on paying off the debt and not on saving or investing.
Have an Emergency Fund
Does #SobatKaeN have an emergency fund? Having savings funds that are ready to be used at any time for various urgent needs is one thing that should not be forgotten when managing finances.
This savings fund or emergency fund usually has to be 6 times the total expenses in one month for singles, and 12 times the total expenses in one month for married couples who do not have dependents. The total emergency funds needed by each person will be different depending on the amount of expenses and the number of people to cover.
Make sure that #SobatKaen always sets aside a portion of his salary for unexpected and unforeseen things.
Save and start investing
In financial management, saving and investing are very important. #SobatKaen can apply the SIP method, namely Saving, Investment and Protection. Saving must become a habit from the first moment of getting a job or steady income and must be done regularly. Investment is also an alternative financial management that must be started early to achieve various financial goals in the future more easily. Next is protection, if #SobatKaen is able to regularly save or invest, don’t forget to protect both your health and your soul. This is very important to avoid things that are less desirable in the future.