Sikapi Friends, some of you may have entered working age and most of you are millennial generations. Today, millennial generations are on rise. Who are millennial generations? Millennial generations are those who were born in around 1980-2000 or those who are 17-37 years old. Millennial generations are identical with technology advances and its convenience. 

Millennial generations were born in the age of easy access to financial institutes. Millennials are the first generation who grown up along with computer and internet, can easily learn about finance really fast and apply it in their lives. When it comes to investment, millennials can easily access everything they need through the internet in their gadgets.

Having a dynamic lifestyle and lack of financial management knowledge make them hard to manage their finance. Some millennials also find it hard to set the priority scale. So what Sikapi Friends’ smart way to manage finance properly as millennials? 

Sikapi Friends, the financial management success is determined by discipline and consistency in frugal and smart lifestyle. Living in frugal is different with stingy. Living in frugal means being able to prioritize needs upon desire and manage to fulfil the needs efficiently. Therefore frugal living does not mean to press the expense without considering its quality, but to manage the expense based on income in a balance way.

To be able to succeed in managing your finance, you need to decide the objective so you can focus on your financial plan.

1.    What are your short and long term financial objectives?
2.    How much money do you need to reach the objectives?
3.    Define the deadline so you can observe your financial management progress.

Most millennials use the principle of “You Only Live Once” which makes lifestyle and social life increasing. They find it difficult to differentiate needs and desires. When they see good stuff in a mall, they tend to buy it without considering whether it is needed or not and end up regret from buying it. Avoid buying things just because you like it and not what you need.

Next is try not to have any debts. Avoid consumptive matters such as going for a hang out too often, particularly for things you don’t really need or not listed in your financial objectives. Before buying something, always check your financial condition first. Do not try to look cool but you paid with debt. Sikapi Friends can use applications in your gadget to find out discount or other promotions. If you want to be under control on monthly basis, you can try financial management application so you can evaluate every month easily.

When allowance or income transferred to your account, try to create a financial plan based on your priority scale. The trick is you can apply 40-30-20-10 formula in your financial plan. 40% is for your daily needs, 30% is for paying your debt, 20% is for your investment and saving, and 10% is for social needs. Saving, investment, health insurance, and pension insurance are four obligatory matters that must be listed in your long term financial plan. Basic needs prices keep increasing so you must put those four matters as an important one. Isn’t fun to have your future secured while enjoying your social life?

The most important is, although Sikapi Friend’s financial plan is perfect, you should not forget to keep emergency fund for unpredictable things that may happen ahead. Do not let these unpredictable things ruin the financial plan that you have arranged with such an effort.

Source : https://sikapiuangmu.ojk.go.id/FrontEnd/CMS/Article/10454

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