Want The Benefits Of THR To Be Felt Longer? Check Out These Recommendations

Illustration. (Photo: Doc. Antara)

JAKARTA - The holiday allowance (THR) is one of the things that workers or employees have been waiting for before Eid as it is today. THR always comes along with the swift needs ahead of Eid. So it is necessary to wisely manage the THR so that the benefits of THR can be felt over a longer period of time.

Director of PT Bahana TCW Investment Management (Bahana TCW), Dania Ad blackata in her statement, Saturday, April 13, said that the use of THR for needs ahead of Eid, such as homecoming costs, clothes shopping, and a series of other expenses is reasonable. However, there needs to be a priority list of allocations arranged based on the order of need starting from the most important thing, and don't forget to include investment points in it.

Referring to the results of a big analysis study conducted by the Indonesian and INDEF Continuum in 2021, 90 percent of the THR money for Indonesian workers was spent on shopping. At the same time, only 6.6 percent of the funds used to save and invest. This study also states that the public's mindset of THR which is only used and must run out for Eid needs to be changed.

The pattern of thinking in managing the THR needs to be changed. The assumption that the THR that makes income ahead of Eid has doubled from other months and must be spent on meeting needs ahead of Eid needs to be suppressed. With a priority list, we can manage expenses according to needs and according to plan. After zakat and other important needs, avoid impulsive and most importantly set aside THR money for future investments," said Danica.

The Financial Services Authority (OJK) recommends that 20 percent of the THR be allocated as investment. By leaving 20 percent for investment, it is certain that the benefits of THR will be felt longer. Even OJK recommends that from the start it should be received directly using THR to pay off productive debts and installments.

After that, it is continued by setting aside 20 percent for investment and the rest can be used to meet Eid needs such as shopping for basic necessities for holidays including the need for homecoming and meeting additional needs on holidays such as new clothes, and others.

Especially for 20 percent of investment allocations, there are several short-term or long-term investment alternatives that can be an option so that the benefits of THR can be felt longer. Short-term investments can be in the form of money market funds invested in money market instruments or securities with a maturity of less than 1 year.

Sedangkan investasi jangka lebih panjang juga bisa dilakukan Reksa dana saham atau pun obligasi pemerintah, investasi jenis ini biasanya memberikan potensi keuntungan yang lebih besar dengan jangka waktu di atas 5 tahun.

Furthermore, said Danica, currently, it is very easy to be able to use investment products. With the involvement of investment provider technology such as investment manager companies or investment startups have used many channels to market investment products. So that it makes it easier to penetrate investment services to the public. However, it is necessary to pay attention to whatever services are the choice, they must be under the supervision of the OJK.

"Allocation of THR through investment in mutual funds is one wise step to be able to get longer THR benefits. By choosing fixed income mutual funds or government retail bonds because the yield is high and tends to be safe is the choice that we recommend," said Danica.

Especially at a time like now where bonds are very prospective, there will be a decrease in interest rates which is predicted to start in July. The decline in interest rates will have an impact on increasing activity and potential increase in the bond market so that this year bonds are predicted to be one of the investment options that will provide the most optimal level of profit.