This is the financial problem most often experienced by Millennials

in #life5 years ago

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This is the financial problem most often experienced by Millennials

There are a number of financial problems that are often experienced by millennials: starting from making a budget (honestly, have you ever made a budget for money?), A matter of how much you spend (hey, how much did you spend yesterday?) actually you get every month (enough is your current salary?), and how much do you save (Sorry, who can save 20% of his salary each month? Can you please teach me?). Enough already! It's time for you to take control of your own finances. Here are some tips that Cosmo prepared in connection with some of the financial problems most often experienced by millennials.

Millennials' first financial problem: "I don't even know how much money I have."

The first step you have to do is make a budget that you are able to follow. First, find out how much your salary is in the office (net salary, after deducting other fees such as pension insurance and health insurance). Then, look again at how much you spend for a month, starting from the cost of renting an apartment to hangout with the girls on weekends.

Make sure you divide it into "healthy" amounts, which is 50/30/20: 50% for basic needs each month (home installment fees, credit cards, car payments, electricity bills, pulses, etc.), 30% for fun happy (watching movies with him, participating in donations with the girls, hanging out with office friends, paying Netflix bills, gym membership list, etc.), and the remaining 20% ​​for savings (mutual funds, emergency funds, vacation savings, and more )

Knowing how to share your money in a budget and following the budget is a big step. That way, you can take control of your own financial situation. Well, while managing expenses, also peek at what your credit score is at BI checking. Make sure your score is 1 or 2 - this means you are in a good credit condition. If your score is more than 2, uh-oh, prepare a budget to pay your installments and stop using credit cards temporarily.

Second millennial financial problem: "Health insurance ... ugh, just add expenses."

Yes, being protected by insurance does mean you need to set aside money for additional expenses each month. It's legitimate if you then choose not to have insurance because you don't want to increase your expenses, but if (knock on the wood) something happens to you, and you don't have insurance, it could wreck your financial life for decades down the line.

Here is a crazy stat: compared to neighboring countries, according to data from the World Bank in 2007, the expenditure of Indonesians for health insurance and other health insurance is still the lowest. In fact, spending on buying cigarettes is still far greater, even though the expenditure is the biggest "contributor" to health problems such as stroke, coronary heart disease and hypertension. It's ironic, isn't it?

On the other hand, health insurance is actually not that expensive. If you are burdened with private insurance whose prices are not cheap, the Indonesian Government has issued a National Health Insurance (JKN) program that is directly connected with the Health Social Security Organizing Agency (BPJS). Only by paying less than Rp100,000 per month (the price of class 1 contributions is only Rp. 80,000 per person per month), you have already received relief if something happens. Peace of mind? More priceless!

The third financial problem of millennials: "I have too much debt! That yesterday hasn't paid off, I have added new debt. "

Hands up if you are in this position - yes, including those of you who are accustomed to paying a minimum credit card fee each month. Just like losing weight, you can start reducing debt little by little by "dieting".

First of all, leave your mother's favorite credit card, or keep it in the closet ... anywhere other than in your wallet. You're officially on a debit-card-and-cash-only diet.

Next, find out how much you can deduct (your gym membership runs out next month? Stop for a while. Likewise with your Netflix), then set aside the money to pay off your debt so that the amount paid can be more than the minimum fee each month. Complete the least amount of debt, then turn off the credit card until there is only one left. It takes time, but as long as you don't continue to be tempted by adding new debt, you will get there.

The fourth financial problem of the millennials: "What will happen if I am fired?"

Although it takes time to collect, but the emergency fund is important, you know. Find out how much you spend for a month (or use survive your take-home pay), then multiply by six. Tubes of that amount to be used in times of emergency - such as sudden dismissal, or if you want to leave the current office but don't have a new job.

Alexa Von Tobel, author of Financially Fearless: The Definitive Guide on Taking Control of Your Finances, gave the title "Freedom Fund" for these savings: it lets you do what you need to do without taking your credit cards back from your mother. Are you forgetful? Create a special account with the autopayment system, and make it a habit to save the rest of your money (such as change in small denominations) to save.

The financial problems of the five millennials: "Will my financial situation continue to be mediocre like this?"

No, you aren’t! But to change your financial situation, the solution is to save. Even 2% of your salary is still better than nothing. Project yourself into retirement later: Where will you live later? Do you want to enjoy old age while vacationing on the beach? Or spend time while traveling in New York? To make that dream come true, you have to start the first step from now on.

See the various options offered around you. The company where you work offers pension fund savings? Take the golden opportunity. Starting this month, Cosmo challenges you to save at least 2% of take-home pay. Can you?

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