Mandatory To Know! Here's How To Regulate Finance During Reception According To Experts

Illustration (Doc. Ministry of Finance).

YOGYAKARTA How to regulate money during a recession must be known amid the threat of a global recession in 2023.

The Financial Services Authority (OJK) even predicts that the global recession will occur faster.

"What we can't predict is how serious the recession will be and how long it will last", said OJK Board of Commissioners, Mahendra Siregar, as quoted by Antara, Tuesday, October 11, 2022.

In addition to the OJK, the World Bank also warned of the threat of a global recession next year. The recession has the potential to occur due to the central bank's monetary policy which is quite aggressive in raising its interest rates. This condition can hinder economic growth.

"Global growth is slowing down with a possible further slowdown as more countries fall into recession," said World Bank President David Malpass.

When the recession occurs, economic growth will slow down. The impact of the recession most felt by the financial sector is that businesses do not thrive, salary cuts, and unemployment rates will increase.

So, how to manage finances when a recession occurs?

Please note, a recession is a condition in which the economy of a country is deteriorating. The recession was marked by a decrease in gross domestic product (GDP), increased unemployment, and negative real economic growth over the second quarter in a row.

Even so, you don't need to worry, because, banking, financial and investment experts from the University of Gajah Mada (UGM) Yogyakarta, I Wayan Nuka Lintara, PhD, share tips on regulating finances during the global recession.

Quoted by VOI from the UGM.ac.id page, here are tips for managing finances to avoid the recession of I Wayan Nuka Lintara.

In order to stay financially healthy during a recession, people need to earn additional income beyond their basic salary.

Additional income can be obtained by utilizing hobbies for business. In addition, people can also try to sell online and continue to regularly invest in getting additional income.

The second tip, re-identify the expenditure posts while looking for loopholes to save on expenditure posts that are less important or can be postponed.

Data collection on annual spending plans is important to do, so that it can easily determine priorities.

In addition, noting the expenditure plan also makes it easier for the public to estimate the amount of expenditure per month and how much can be saved in the months to come.

According to Wayan, investment is the most effective way to counter the negative impact of inflation.

The right investment option to anticipate a global economic crisis is to shift the weight of our investment funds more on investment assets that are classified as safe (safe haven).

He gave an example of the type of safe investment made, including deposits, gold, securities issued by the state. If he wants to invest in stocks, he suggests that investment in stocks engaged in the defensive industrial sector should persist despite the crisis.

Some people may panic when they hear the news of the 2023 recession. How not, the economic recession could make a number of prices of basic commodities rise.

Wayan advises, live life as usual in general. People can buy local products to help the national economy, and don't do panic buying. Because, panic buying can make the inflation rate sharper.

That's the information on how to manage finances during a recession. Hopefully it will be useful!