New Year's Moment It's Time to Reorganize Finances, Check Out the Following Tips

JAKARTA - The beginning of the year is a very important moment for every individual. A new beginning, for new resolutions. Make a list of good things to do and achieve in the next year. However, which is certainly not less important, and should not be ignored is to re-evaluate our finances in the previous year, and re-arrange our finances for the next year, better, more effective, and efficient.

The latest report on per capita spending data in Indonesia in 2024, based on data from the Central Statistics Agency (BPS), shows that the average monthly spending per individual is classified into two main categories: spending on Food and spending on Non-Food.

DKI Jakarta Province ranks first with the highest average total per capita expenditure, reaching Rp2,794,485 per month. The high figure in the capital city is largely driven by the high expenditure for the Non-Food category of Rp1,686,257, which indicates the high cost for needs other than food such as housing and transportation. This is what drives us to be able to make financial planning wisely.

Financial restructuring is certainly necessary, so that we can use the income we receive every month more effectively and efficiently. So, the dreams that we want to achieve in the future can also be achieved according to plan.

Here are some tips from Bank Neo Commerce that can be done to reorganize finances at the beginning of the year:

1. Reviewing the income and expenditure for the previous year

The most important thing to do before doing financial planning is to review and evaluate the income and expenses that were carried out during the previous year. By evaluating, we can find out the less important expenses that need to be eliminated this year.

Conducting such an audit helps us to have a clear picture of our financial condition, which can help in making a more effective and efficient financial plan for the next year.

2. Make a new monthly budget

After conducting a thorough review, now is the time for us to make a new monthly budget. After evaluating expenses, we can clearly know our spending items, which are routine and mandatory, which are less important. We can eliminate less important expenses in the new monthly budget.

The main priority in the monthly budget must include all important and routine things, such as electricity, water, internet bills, rent money (if contracted), and children's school fees. In addition to bills, regular installments are also important to enter the monthly budget, such as if there is a People's Housing Credit (KPR), and other debt installments. And the last and no less important, is the allocation of sufficient funds for daily needs.

3. Set financial goals for the next year

Important financial goals must be set, either for the next year, or long-term financial goals. Setting financial goals gives us clear direction and motivation in managing our finances well.

For example, the financial goal in the next year, maybe we want to change a new phone at the end of the year, we can find out how much it costs, and can estimate how much we have to set aside each month without having to interfere with priority posts.

4. Have an emergency fund

The thing that is often overlooked is the importance of having an emergency fund. Keep in mind that an emergency fund is not a savings that we can use at any time to fulfill our desires. Watching the concert of our favorite singer is not an emergency! An emergency fund is a savings of money that is prepared specifically to deal with unexpected expenses or emergencies such as layoffs, sudden illness, accidents, or natural disasters, so that you don't have to owe.

For the initial stage, it is best to have an emergency fund of three to six times the monthly routine expenses, so that at least we can continue to live in the next three or six months. As for the ideal, the emergency fund that needs to be prepared is a fund that is sufficient for routine expenses until the next year.

5. Determining and choosing the appropriate investment instruments

Nowadays, Indonesian people are increasingly aware of the importance of investing to achieve financial goals. However, choosing and determining the right investment instruments for us is also the most important factor in investing.

We must understand our individual risk profiles in investing, whether it is conservative, moderate, or aggressive. After understanding our own risk profile, it will be easier to determine the appropriate investment instruments, in order to achieve the financial goals that we have determined.