Many opinions say that the millennial generation or the generation currently 20-30 years old are the generation that has the most difficulty financial management. This is because the millennial generation has a lifestyle that is different from previous generations. Quoting from tirto.id reveal that most of the millennial generation tend to have a more extravagant 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 face by the millennial generation in the future, due to unhealthy financial management.
So, are You currently include in this group? If so, here are some tips on financial management for millennial that you can apply in your daily life:
Having clear goals and financial management
Having clear goals and financial plans will make it easier to determine what financial plans you want to do. So that the financial portion can be right according to the portion. You can divide the financial portion using the 50:30:20 method of income each month. 50 percent for daily living expenses in one month. 30 percent for savings and investment and other financial needs. Lastly, 20 percent for consumptive needs.
Checking the Amount of Money in the Account Regularly
Routinely checking the amount of money in the account is consider quite influential in efforts to financial management for millennial. Checking the amount of money left in the account will make us more careful when we want to use it. Also keep in mind never to use the money in savings if it is not in an urgent condition.
Don’t get into debt if you don’t really need it
As technology develops today, 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 be paid the following month. Of course, with the presence of this feature. It is increasingly tempting for many people to take advantage of it, especially in fulfilling their desires.
Consciously or not, the use of pay later is a form of debt. Its not good for financial management for millennial. So, there is an obligation to pay and pay it off. This will cause the focus of our salary every month to pay off the debt, no longer to save or invest.
Have an Emergency Fund
Does You have an emergency fund? Having a savings fund that is ready to use at any time for various urgent needs is one thing that should not be forgotten in financial management for millennial.
This savings fund or emergency fund usually requires 6 times the total expenditure in one month for singles. 12 times the total expenditure in one month for couples who are marry and do not have dependents. The total emergency fund need by each person will vary depending on the amount of expenses and the number of people to cover.
Make sure that You always set aside a portion of your salary for unpredictable things.
Save and start investing for financial management
In financial management for millennial saving and investing is very important. You can apply the SIP method, namely Saving, Investment and Protection. Saving should become a habit from the first time you get a job or steady income and should be done regularly. Investment is also an alternative to financial management for millennial that must start early to achieve various financial goals in the future more easily. Next is protection if You are able to routinely save or invest, don’t forget to protect / protect both for health and soul. This is very important to avoid things that are less than desirable in the future.