Basically, everything related to money will be the top discussion in the resolution. This is what causes financial resolutions to always be on the list of every individual’s achievements. Here’s a list of the most popular financial resolutions in 2021:
1. Saving
Saving and putting more money into savings will always be the financial resolution of every individual. The problem is, can this be realized according to plan? Generally, the millennial generation (aged 18-24 years) is very passionate about saving. At that age, their desire to travel and buy things is so high that they often save money to make it happen.
The key to saving is making savings and meeting your savings goals. Both short-term and long-term goals. If you are a forgetful and extravagant individual, you can schedule savings automatically. The trick is to direct debit (direct withdrawal) from the account to be channeled into savings.
2. Save money
Are you an extravagant individual who likes to spend money on consumer goods? If frugality is included in your financial resolutions next year, then stop your wasteful habits immediately. Don’t be easily tempted by the sale, even though the discounted item is not included in the need. You can start cutting unnecessary costs. For example, if you are rarely at home, it’s better to just turn off your cable TV and internet subscriptions. The goal is that the costs can be allocated to savings to meet needs.
3. Pay off debt
Credit card bills, mortgage installments, and KTA installments have not been paid off in 2015. And each individual has a variety of different debts and installments. Generally, the installments of each installment that you have are enough to confiscate your income every month. The solution, you have to pay off the installments that have the highest interest first. If your credit card interest is 3 percent/month and your KTA installment has an interest of 2 percent/month, then you should set aside your income to pay for the credit card first and then the KTA installment.
Invest early, regardless of the investment instrument. In fact, investment can prevent bad financial conditions. If in 2015, you have not had time to invest, then make this your financial resolution target. You can set aside 20-30 percent of your income to be allocated in investment savings.
In choosing an investment, you must adjust it to your ability to manage risk and growth potential. You like challenges and want to make big profits but are not experienced as an investor, you can choose to invest in mutual funds or stocks. Usually, you can get help from an investment manager whose role is to manage your investment according to the set targets. Or want a low-risk investment as a beginner? You can choose forex or gold investments whose capital can start from only Rp. 1 million.
5. Setting up an emergency fund
Going to the hospital, renovating a house, losing a job and other things that are included in the case of an emergency are actually a necessity. In the end, you need money to realize these emergency needs. And generally, this emergency fund is often forgotten because managing finances according to a plan is much easier than setting up an emergency fund. You should prepare an emergency fund so that you can finance the next 3-6 months. If you are laid off suddenly, you don’t have to worry about living expenses anymore because this emergency fund helps you.
6. Create a budget and stick to it
Trying to navigate your financial situation without making a budget is like driving a car without gas. The budget is very useful to know the cost of expenses each month. Once you know where your money is going, you can decide to keep your budget down. In making a monthly budget, including funds for savings, paying debts to an emergency fund. Then the rest is used to buy daily needs (food, transportation and gas money, monthly shopping, and others). Try to stick to the budget you have made to get financial independence.
7. Thinking about retirement savings
Retirement is still long, why save for retirement savings? If you have such thoughts, throw them away immediately. You never know when you stop working. If your age is still considered productive age, that’s where the opportunity to collect retirement savings is. Especially if your dream is to enjoy old age with activities that please your soul and mind, such as traveling around Europe for example.
To start your retirement fund, just set aside 10-15 percent of your income during the time you work. Say your income at the age of 25 is IDR 5 million. Set aside 10 percent, which is Rp. 500 thousand, to be included in retirement savings. The productive age of working in Indonesia ranges from 55-60 years. That means you have 30 years of productive age to work. Your total retirement savings for 30 years is IDR 180 million. Large enough funds to be enjoyed when you retire, right?
8. Buying a house and a car
Are you planning to buy a house or a car next year as a complement to your needs? If the answer is yes, it’s a sign that you have to work even harder to collect financial coffers. However, before you decide to take a mortgage or car loan, make sure that your financial condition is able to repay the specified amount each month. It is very important to evaluate your abilities and finances so that you don’t fall into debt that accumulates in the future.
9. Save children’s education costs
It is commonplace that the turn of the year makes the cost of education always go up. Sometimes the cost of education is always a polemic for every parent. The reason is, inflation in education costs can reach 10 percent. If in 2016, you want to send your child to school, you should have prepared an education fund 1-2 years in advance.
The solution, before enrolling your child in his dream school, first know how much it will cost. For example, your child wants to enter a private university in Jakarta. The entry fee in 2016 is IDR 25 million. Two years earlier you could have done a survey to the university and calculated the cost for the next 2 years (just count every year there is 10 percent inflation). So that when you register, you already have enough capital as the entry fee. You can also enroll in education insurance as a depository for your child’s education fund.
10. Have a focused finance
Having a regular financial condition is the dream of every individual. For this reason, the majority of financial resolutions in 2016 are colored with a better financial life. To have focused finance, you can apply it by thinking wisely when managing finances, paying bills on time, setting aside an emergency fund to preparing retirement savings. Also record every expense you make, no matter how small, into the budget.
By doing these things consistently, you will definitely produce financially targeted and better in the future. This directed financial condition will make you feel comfortable even though your income is limited. If you act disciplined with finances then you will easily send your child to the school of his dreams or plan long-term goals such as retirement.