Globalization provides easy access for the public to products that previously could not be enjoyed. One of the most noticeable is technological advances that provide a new way to shop through online shopping. As a result, it is difficult for today’s society to realize a balanced lifestyle, especially in terms of finances.
In addition, people are now giving excessive attention and time to social media. Many buy or do something just to appear to exist on social media. Not to mention the ostentatious lifestyle that comes from being inspired by celebrities with materialism now feels very important.
The level of living needs of people in Indonesia is increasing day by day. The process of international integration that allows the exchange of products between countries, known as globalization, has become one of the main causes of excessive consumption. Indonesians can have access to products that they could not previously consume.
The Central Statistics Agency (BPS) noted that the average per capita expenditure in Indonesia in a month reached IDR 1,225,685 in March 2020. Of this amount, IDR 603,236 was used for food, while IDR 622,449 for non-food items. Where, the highest expenditure is in DKI Jakarta Province with an average per capita of IDR 2,257,991 per month.
The data shows that people are now spending more funds beyond their primary needs. They feel they need an item just because they are tempted by a promotion or advertisement and don’t really need it.
The various facts above have an impact on excessive consumptive behavior, especially for millennials. As a result, many forget to set aside funds to own assets or other needs. No wonder many think that millennials will find it difficult to own a house and assets like the ancients.
Therefore, it is important to have a balanced lifestyle as a way to meet future needs or plans.
The amount of expenditure made by the millennial generation may have a much higher value than the average expenditure per capita. This is due to the association that requires young people to be the most up-to-date by regularly following trends. Where these activities are classified as quite expensive. Examples such as hanging out in cafes, having the latest type of cellphone, and buying things that are not needed.
Previous generations may find it difficult to understand the needs of these millennials. But not infrequently young people are willing to increase their working hours just for the sake of the best cellphones to show off to their friends. They seem not to care about the costs incurred as long as they can exist.
There are also those who have just entered work and have a low salary. However, to keep up with the latest trends, they have higher consumptive expenditures than income. This causes them to take on unnecessary consumer debt.
Consumptive debt in the sense of taking debt to buy other consumption products without certain results that can be obtained. This type of debt then traps many millennials so that it is difficult to improve their financial capabilities. This type of loan also often falls prey to the illegal Peer to Peer Lending model with stifling interest rates.
Millennials are also known for their ambition to open their own business or increase their source of income which is actually a very good thing. Unfortunately, not many are aware of reducing their consumptive nature for more mature finances, especially in the future. If it is difficult to immediately eliminate these traits, at least you can apply a balanced lifestyle.
Here are ways that millennials can apply in order to achieve a balanced lifestyle. This financial life balance will certainly make the future better because the existing funds can be used better.
Millennials are often complacent with large incomes but are not aware of a number of large expenses. For example, the need for health insurance with the appropriate policy rather than just buying the latest gadgets every month. They are also often careless in managing their money because of the You Only Live Oce (YOLO) principle of life.
As a result, millennials often act impulsively in shopping, which is the cause of their financial problems. In the end, many live only on spree after payday and a few weeks later have to save money until payday arrives.
1. Know the Expenditure Details
Millennials must maintain a balance between the amount of income they receive and the expenses they make each month in detail. This expenditure includes daily expenses which are expenses for items needed for daily life (soap, tissue) and also expenses for entertainment which are non-urgent expenses (shopping, coffee).
By knowing these details it can be seen which expenses can or should be reduced. There are a number of daily expenses that can be reduced, while many non-urgent expenses can be eliminated. For example, by not drinking too often at expensive cafes. In addition to saving on the pocket, reducing coffee can also have a good impact on health, right.
2. Set A Fixed Deposit Amount
After knowing the details of the expenses made, determine the amount of fixed savings that will be set aside each month. These deposits can be deposited or used for investments that can provide you with additional income. Another idea is to buy protection in the form of insurance. In terms of investment and protection, it is explained further in the article.
Remember not to wait for the remaining money but instead to set aside special money for this deposit. With the millennial lifestyle, it will be very difficult to wait for money left to be used as savings. Also separate which savings will be used as savings for emergency funds, long-term savings or with special goals such as buying a car.
3. Make the best use of the remaining money
With the remaining money, after deducting the fixed savings target, use the money as well as possible. It’s best in terms of buying what you need and not buying excess stuff, especially if you don’t need the item urgently. This can be calculated through the details of the expenses you already have.
You need to be disciplined to adhere to the details that have been made previously. If it is difficult to do so, you can ask for help from the closest people such as friends or parents to remind you. You can also learn to be disciplined by regularly recording your daily expenses to know where your money is being spent. To be more practical, there are many financial applications that can help you do this.
4. Regular Savings for the Future
For those of you who want to have a balanced life in order to prepare for a financially free future, you need to save regularly. By saving, you can be better prepared for the future.
There are many benefits that you can get by saving, for example, not worrying if there is an urgent need, preparing for a better future, getting profit by saving regularly, and so on.
There are many ways that can be done to start saving, from saving in a bank, making deposits, saving mutual funds, to buying stocks. Everything you can do in order to prepare for the future and for profit.
Well, one of the right ways to save stocks and mutual funds, you can start from anywhere and anytime via the Magic application. At Ajaib, you can start investing with capital starting from IDR 10,000 for mutual funds and IDR 100,000 for stocks.
Overall, if you want to achieve all your plans in the future, it is highly recommended to have a balanced lifestyle where you have to reduce excessive consumption (buying only what you need) and if you can invest or buy protection with the money you have.
Don’t just save your money in the bank because its value will not increase. Be smart about using your money, one of which is through investment so that the value increases. In addition to so that you don’t have to worry about the future, this balanced lifestyle will help you be more observant in financial matters at any time.
Healthy Lifestyle for Health
In addition to being financially healthy, you must also be able to have a balanced lifestyle in terms of health. Because without a healthy body, you will not be able to enjoy a happy future with the finances that you have managed from now on.
To get a balance in life, try to start balancing work and personal life first. In addition, try to choose healthy foods to avoid the risk of disease in the future and also exercise regularly for at least 30 minutes a day.