Beginning Of The Year Financial Plan During Pandemic: Don't Be In Debt

Money illustration (Photo: VOI)

JAKARTA - The pandemic situation inevitably makes all parties have to adjust to the new normal conditions, including in matters of managing finances at the beginning of the year like today.

Arkana Finance Chief Investment Officer Fioney Sofyan said that many people are too worried about many aspects that are beyond their own ability, such as when the pandemic will end soon, how the future will be in the economy, or whether the vaccine can really be effective.

"But it's also good for us to introspect and return to introspection: What can we do to fix the situation?" he told VOI, January 11.

According to him, the pandemic over the past year has indeed thrown away many aspects and predictions. Fioney then shared five things that need to be considered in making a financial plan during a pandemic.

1. Get into defensive methods

Economic recovery will take time. Therefore, enter into a defensive method or survive financially in the existing conditions. Rearrange the expenses you have. Make adjustments, and reduce what can be reduced.

"For example, we can do independent research on what expenses can be done more efficiently. If necessary, pay attention to the information on discounts or sloping prices in the next shop by the promos they made, ”he said.

Then, don't get caught up in online delivery orders that provide extra promos, because who knows, even the day's food rations are drained there.

2. An emergency fund is a must

The 2020 period was a dark period for most people due to layoffs, or loss of livelihoods due to a collapsed economy. Meanwhile, basic needs still have to be met.

"There are those who are lucky to change their professions quickly, so they can save on kitchen shopping. Some are not. But one thing is the same, the need for emergency funds to be able to anticipate things like this is becoming more and more aware, "he said.

3. Complete your BPJS with additional private insurance

Not all medical expenses will be covered by the BPJS. For that, private insurance today will be very valuable.

“If you are financially able or you have a family that is there, it might not be a problem. What about those who don't? ”He said.

Fioney added that in addition to providing comfort options, private insurance also provides other facilities in the form of "fast moving" the hospital and priorities in uncertain times like this.

Some tests, if you have to go through the BPJS, have to go through a certain stage and sometimes take days, while with insurance it can be done all at once so that indications of pain can be known early and quickly, so you can get fast and precise treatment.

4. Keep investing even though the amount is not as much as usual

Even the slightest investment is far from making no investment at all. Especially in the current condition, almost all investment instruments have discount prices.

"So, when the economic recovery has fully occurred, the returns you get can also be much higher than the average," he added.

5. Avoid making new loans or debts

One of the easiest choices at this time is indeed a loan or making new debt. Understand your own ability to pay. Avoid adding new debt, because new debt is a new burden.

"For example, at this time you already have installments, while the income is reduced so that the payment of these installments is stagnant, submit an application for restructuring, or refinancing to the relevant agencies," he said.

Thus, the repayment time can be extended and installments can be minimized. This kind of risk will be much better when compared to adding new debt.