You have to plan for future savings early on. The problem is, many people are not aware of how important it is to have these savings. As a result, you only rely on salary money and economic difficulties in old age.
Some people might set aside about 10% to 20% of their income to save. However, so far there are no certain standard or calculation related to it. You can use the fund allocation method according to your needs.
For example, monthly income of IDR 5,000,000. You can still save as much as Rp. 500,000, because there are installments and other needs. It’s better to save even a little compared to nothing.
Therefore, you need future savings to guarantee the comfort of life in the future. Here are some recommendations and types of future savings that you must have.
Set aside money for emergency fund savings type of future savings that must be owned
One type of savings that you must have is an emergency fund. This type of savings may not be remembered by many people, because it is rarely owned. Even though the emergency fund is very helpful when you face an urgent situation such as for treatment or a sudden layoff.
For this type of savings you should set aside more than the amount of money to be saved. For example in a month you can only save at least 10% of your main salary. Whereas for emergency fund savings, at least you have to set aside 5% of your salary. So, you still have a backup.
Saving for pension funds
One of the savings that you must have is a fund for retirement. Retirement savings can be your guarantee in old age, when age is no longer productive. You can open retirement savings early, so you don’t have economic problems later.
Before opening a retirement savings account, you should have calculated how much funds will be needed when retiring later. You have to take into account the nominal money which always increases every year, so that savings remain safe until old age.
Do not just rely on money from BPJS Employment, because the amount of money that is not how not necessarily guarantee you when you get old. You also have to prepare an independent pension fund with an amount greater than the BPJS Employment of your salary each month.
Savings for installment funds type of future savings that must be owned
Increasing needs of life, you sometimes need a credit card for installments. However, that does not mean you can use the card to shop for things that are not important. The use of a credit card should be used to buy expensive necessities, such as a house or apartment.
Savings for installment funds are needed to pay all your obligations. The problem is if the money is not separated, it can disrupt your financial cycle. In fact, the main savings that must be deposits actually used to pay debts.
That is why you are advised to have a separate installment savings account with others, so it does not interfere. You can set aside a little of your salary to put it in this savings. You also have to get used to paying debts every month on a regular basis, so as not to get extra fines and increasing interest.
Short-term savings
Not only long-term savings that you need, but also short-term savings you must have. Short-term savings are useful for buying some of your equipment in the near future. You can provide some planning for this short-term savings.
For example you want to go back to college, meaning you can save for one year consistently and in discipline, so that these goals are realized. Then you can withdraw the short-term savings to pay for college after one year. So, short-term savings, you should have clear goals, so they are not wasted.
Savings for holidays
You definitely need a vacation, right? Therefore, make it a habit to have savings for your holidays. There’s no harm in setting aside money little by little to pamper yourself. You should buy a plane in advance, so you can get the best and cheaper prices.
Furthermore, you can use the money for a vacation to the tourist destination that you want. You should book hotels online so you can get cheap prices and not drain your savings. So that the vacation savings you save can be used maximally when you leave later.
All types of future savings above are very important for you to have a more orderly life with stable economic conditions.
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