Jakarta, CNN Indonesia —
Various temptations that seem endless are often the reason millennial savings are often ‘leaked’. The amount of desire and today’s lifestyle becomes a complementary formula for the consumptive life of young people.
Far from saving, at the end of the month the existing salary has been used up for ‘snacks’ here and there. In the end, to finance your urgent needs, you actually have to rack your brain hard, even take out debt.
So, what are the factors that cause this condition to occur? Here is a list of six millennial mistakes in managing finances.
1. Not Arranging Production
Planning and managing finances should not be missed by young people. Unfortunately, some millennials choose to ignore financial planning and don’t have the ‘brakes’ to control their desires.
Moreover, if you have seen the promo. As a result, the funds owned are not allocated clearly and run out towards the end of each month.
This one mistake makes millennials lose because apart from being out of control, some basic needs are threatened not to be met. If it drags on, this habit will bring financial disaster in the future.
2. Disgusted With Emergency Funds
An emergency fund itself is a liquid fund that is prepared if at any time you face a disaster or need quick money. Ideally, an emergency fund contains 3 months-6 months of expenses each.
Although it may feel unimportant at this time, emergency funds are inseparable in financial health. Moreover, during the current covid-19 pandemic where economic conditions are very uncertain.
3. Bigger Pegs Than Poles
Desire brake is not easy. Moreover, it is easy to shop online in today’s digital age. Not to mention, the encouragement of lifestyle trends and the environment that makes a consumptive lifestyle feel normal.
Consumptive behavior itself is the main enemy in financial planning. Many millennials don’t just spend their salaries to splurge, but also borrow to fulfill their temporary desires.
Availability of a budget must be a priority over lifestyle. It will be difficult to have healthy finances, if spending habits are not restrained.
Following Endless Desire
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