How To Manage Household Finances Wiser With 4P

JAKARTA - Prita Hapsari Ghozie, financial planner and content creator share insights on the importance of understanding financial priorities through the 4P concept. This concept is a guide for the community, especially mothers, in managing household finances more wisely.

According to Prita, understanding what to do sequentially is the main key in achieving financial stability.

"At the first, we understand what we are doing in a row, 4P," said Prita, in an inspirational event titled Midea #OpenBarengExpertnya in the Pasar Minggu area, South Jakarta, Tuesday, March 18.

Then, what are 4P means?

1. Priority

The first step in the 4P concept is to determine priorities. Prita emphasized the importance of ensuring that the main expenditures are met first.

"We have to prioritize spending, for example installments, children's schools, electricity, transport and others. Try breaking down and see expenses occur," he explained.

By recording and evaluating routine expenses, one can find out the most important allocation of funds. This also helps avoid more spending. Develop a realistic and disciplined budget in complying with it is the key at this stage.

2. Pets

After ensuring that priority is met, the second step is to maintain it. At this stage, Prita emphasized the importance of maintaining financial security through emergency funds.

"Self-security workers. Make sure to have emergency funds," he said.

Emergency funds serve as safety nets when dealing with unexpected situations such as illness, loss of work, or sudden repairs. The amount of emergency funds is ideally equivalent to 3-6 months of monthly expenses. By having adequate emergency funds, financial calm can be maintained.

3. Protection

The third step is protection, namely protecting yourself and your family through insurance. Health, life, and vehicle insurance is an important protection instrument.

"We don't need to be surprised and ask our husband for help," said Prita.

Financial protection serves to reduce risks that can have a major impact on financial conditions. With appropriate insurance, a person can face an emergency situation without burdening the budget or draining savings.

4. Enrichment

The last stage in the 4P concept is enriched, which deals with increasing assets through investment.

"Our income can enrich ourselves and invest," said Prita.

Investment can be made in various forms such as stocks, mutual funds, property, or gold. It is important to understand the risk profile and investment objectives before starting. By investing wisely, finance can grow over time.

Selain itu, Prita juga menyoroti aspek lain dalam pengelolaan keuangan, yaitu penuhian atau keinginan. Ia menyadari bahwa setiap orang memiliki kebutuhan emosional yang ingin dimenuhi.

"We definitely have a desire. We use 4P, we share between living, saving, playing," he added.

This concept teaches a balance between daily necessities of life (living), savings or investment (saving), and spending on personal or entertainment pleasure (playing). With a proportional allocation, a person can enjoy life without feeling guilty or stuck in financial problems.

Without recording, expenses become difficult to control, and feel the money is just lost. In addition, he highlighted the phenomenon of FOPO (Fear of People's Opinions) or fear of other people's opinions, especially when facing social pressure such as buying new clothes for Eid or giving THR in large quantities.

"If you have money, please. But if you have trouble for yourself, what do you do?" said Prita.

According to Prita, women play a major role in managing household finances.

"That's why women must be able and smart in managing finances. It can be an example for their families, let alone having children. Children usually imitate," he explained.

Prita also provides tips on smart shopping or smart shopping. Before buying goods, especially those with great value, do research first. Comparing prices, reading product reviews, and utilizing discounts or promos are some of the ways that can be applied to shop wisely.

"Managing finance has intelligence in determining elections. He researched and asked first," he said.

This event also became an event for Midea, as a leading home appliance brand, to introduce a variety of innovative products. One of them is the Everest Midea Kulkas which offers the largest storage capacity in its class, providing solutions for families that need wider storage space. In addition, products such as rice cookers, water fry, and microwaves are also presented to help families prepare healthy dishes more efficiently.

"As a brand that always innovates in presenting domestic solutions, we want to support people with the best products that provide real benefits in everyday life." said Jack Ding, President Director of Midea Electronics Indonesia.