These Tips For Millennials Face The Impact Of Inflation

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JAKARTA - Consultant company Grant Thornton Indonesia provides three tips or tips for millennials facing the impact of inflation following the current global economic turmoil. CEO of Grant Thornton Indonesia Economy Gani in a statement in Jakarta, Friday, September 30, said there needed to be a community role in suppressing inflation rates in Indonesia. "The easiest thing to do is to avoid excessive consumptive attitudes towards imported products and start switching to domestically made products," he said, quoted by Antara. Juli also said that there needs to be financial health preparation and education for the millennial generation as a candidate for the nation's successor. "Cerdas manages personal finances is a must to help contain inflation," he said. There are at least three things the millennial generation can do to deal with inflation. The first is to manage expenses wisely. By preparing a financial plan, unnecessary expenses can be prevented. In addition, it is important not to always improve your lifestyle in line with increasing income, let alone implementing a more wasteful lifestyle compared to income. Second, namely having emergency funds, such as saving, and being used for urgent needs such as illness until when experiencing conditions without income. Emergency funds are usually six times the total expenditure in one month. The more dependents, the greater the emergency fund that needs to be prepared. "Don't forget to separate the emergency funds in other savings accounts so that they can be stored properly," said mitigation. Third, start investing as early as possible, such as buying children's homes and education funds. There are many investment instruments ranging from mutual funds, stocks, deposits, bonds, to precious metals. Based on a study entitled "Indonesia Gen Z and Millennial Report 2020" released by the Alvara Research 1 institution, it is stated that some people in millennial urban areas in various cities in Indonesia admit that it is difficult to save or invest because the average monthly routine expenditure, especially those aged 25-40 years, spend 57 percent of the total income. Instead of saving or investing in the remaining 43 percent of income, almost all are rushed to lifestyle expenses such as traveling, healing, and smoking contemporary coffee. In addition, millennials in Indonesia must also struggle to deal with lifestyle inflation, which illustrates the changing conditions for behavior and habits that result in increasing expenses along with increasing income. For the record, Indonesia's inflation in August 2022 was recorded at 4.69 percent (yoy), improving compared to the inflation rate in July 2022 which was 4.94 percent (yoy). In response to the adjustment of fuel prices in early September, the government has provided three types of additional social pads with a total budget of Rp. 24.17 trillion, namely Direct Cash Assistance (BLT), Wage Subsidy Assistance (BSU), and the use of 2 percent of General Transfer Funds (DTU) by local governments to assist the transportation sector as an effort to suppress rising inflation.