Finance is one of the most important foundations in life, especially for the future. Proper financial management will certainly have a good impact for your life in the future.
But unfortunately millennials who tend to prefer to enjoy life for the present alone, most are less understanding about preparing finances for a better future.
Yet over time, there will be many things that need to be realized. So it is important for young people today to learn the right financial arrangements.
Here are some tips that millennials can use to be able to prepare finances in the future better, including:
1. You Must Have Clear Objectives and Financial Plans
Having a well planned financial course will be very good for your financial condition going forward. This is what millennials should do now. It is important to have clear, detailed goals and financial plans.
Well, the main thing is you have to determine in advance about the financial goals that you want to achieve, be it in the short and long term. So that later proportion for your expenses will be right.
Then how to design the right financial budget?
You can use the 50/20/30 method of income you have. 50% for daily needs, 20% is used to meet financial goals such as savings, investments, and others, and 30% is used for personal needs.
2. If Debt Needs, Use for Productive Things
There is no harm in owing when it is necessary. Debt is said to be bad when it is used for consumptive things.
So, legitimate have debt from wherever it comes from, be it credit card, credit without collateral, and others. Provided, there are results to your income, such as for business purposes, durable goods that are needed for daily activities, and much more.
3. Do not Forgive Set Up a Pension Fund from Now on
Although still at a young age though, it is important for you to start preparing for retirement funds from now on. Surely you will not work for life, right?
Therefore, you will need a pension fund to meet the needs in the old age. So it never hurts to start preparing for pension funds early on.
Even the earlier you start it will be the more funds accumulated in your savings.
4. Prepare Education Funds for Children
Surely everyone will crave the presence of the Son in the future. For that it would not hurt to start preparing fees for your child, especially in the field of education. Unfortunately the millennial generation is known less readily in understanding this.
The cost of education in Indonesia is known not cheap. For that, you need to prepare the education fund of the baby later. So your kids will get a good level of Education.
Currently the cost of education is always increasing from year to year, even the cost can increase up to 6-20% every year. Of course this will be very burdensome in the future.
So it never hurts to prepare from the beginning. You can use educational savings, education insurance, and others to save the cost of education for Children.
5. It’s Important, for You to Have Savings and Investments
Having savings and investments will greatly ensure your financial life in the future.
Currently there are many types of savings and investments that are provided and can be tailored to the needs of its users, such as deposits, time deposits, mutual funds, stocks, and others.
Savings and investments can be the best option that can realize your financial goals. But in choosing the right investment, you must adapt it to the character and typical of each investment.
For example, you want a huge profit from the funds you cultivate and guaranteed returns in times of crisis, so do not invest your funds in stocks.
Because the consequences of a larger stock investment because at any time you can lose.
Prove That Millennial Generation Can Be Relied
Even though you are young and enjoying life, it would not hurt to apply a life-saving lifestyle in your life. Thrifty lifestyle will be very useful to keep your financial stability in the future. Prove that you, the millennial generation that you are counting on.