Tips On Managing THR So That It Saves And Is Beneficial

JAKARTA - Ahead of the Eid holiday celebration, workers in Indonesia will generally receive holiday allowances (THR) which are used to buy various needs or gifts for loved ones.

Unfortunately, as many as 90.6 percent of people in Indonesia have a more wasteful trend in the month of Ramadan, especially for Eid homecoming according to a survey from Databoks in 2023 involving 963 respondents.

"The wasteful behavior of people using THR money is connected to the condition of individuals who feel they cannot control their priority needs. In addition, most people also do not have a good understanding of managing finances," said lecturer at the Faculty of Economics and Business at the University of Muhammadiyah Jakarta (UMJ) Diana Hasan, S.E., MM quoting Antara.

Therefore, in order to prevent waste, it is better if THR money is used only for useful and managed things as best as possible from the start.

The following are a number of tips that can be applied so that the money collected can be useful in the long term:

Determine the scale of financial priorities

Always determine the scale of financial priorities by classifying expenses starting from savings, emergency funds and special savings, for example to go for Hajj.

The public is also reminded to prioritize routine spending.

Pay zakat

After receiving the THR money, make sure to pay zakat or alms as a form of sharing with others who are more in need. This will be more useful than buying goods that you feel you just want to use in an instant.

Use financial instruments

Plan the purchase of instruments or solutions that can provide protection for families to avoid various risks that in the future may disrupt financial conditions.

For example, sharia insurance has a principle, namely 'Believe and Protect'. Unlike conventional insurance that transfers the risk of participants to Insurance companies, risk sharia insurance is shared and shared by all Participants (Takaful).

This principle is in line with the words of God to help others and be appropriate to use during Ramadan.

One form of sharia insurance that has been available in Indonesia is the insurance product for Sharia Trustee Protection from AXA Mandiri.