PROGRES.ID – As we enter 2024, it seems that economic uncertainty continues to loom over the world and Indonesia. How do you prepare financial management strategies for the future?
Amidst the rising inflation in the United States (US) that potentially influences the policies of the US Federal Reserve regarding interest rates, this could also signal positively for the financial markets.
What are the steps to improve personal finances in 2024? Here’s an explanation.
1.Be prudent in credit matters
In personal financial management, a decrease in interest rates can affect consumption, business, and investments.
This can alleviate financial burdens for those seeking credit, be it for consumptive or productive purposes. The interest on home loans (mortgages), credit cards, business loans, and others is significantly impacted by these policies.
It’s important to compare and calculate the interest burdens before making choices. Even with high-interest rates, this year’s priorities can still be achieved with good financial management.
Strive to keep debt repayments below 30% of income and total debt below 50% of total assets.
2.Safeguard income
News about layoffs often surfaces on social media and in mass media. For instance, thousands of workers were recently laid off in textile factories in Semarang.
There were 10 factories that executed layoffs in 2023, resulting in over 12,000 employees losing their jobs.
These figures only account for layoffs in factories affiliated with worker unions in the Confederation of Indonesian Trade Unions (KSPN).
Adopting a wait-and-see approach during election periods may generate uncertainty in the Indonesian labor market.
For those aiming to advance their careers, it’s crucial to pay attention to the fundamental conditions of the targeted company as a potential new workplace.
While for those still coping with the aftermath of Covid-19 or recent economic crises, focusing on additional income or side businesses might be necessary to maintain future financial stability.
3.Ensure protection
Recently, the Ministry of Health noted that active Covid-19 cases from December 6-19 were 2,548, marking a 243% increase in a week.
Moreover, a new variant of the coronavirus, namely the JN.1 variant, a sublineage of BA.2.86, emerged in Indonesia. The World Health Organization previously classified Covid JN.1 as a variant of interest but with low risk.
The presence of new Covid-19 variants and the potential emergence of new outbreaks highlight the importance of health protection.
Reviewing existing health coverage and adding private health insurance from reputable companies with solid financial health becomes a crucial step.
What can be invested?
For those investing in stocks, it’s important to consider sectors predicted to grow due to domestic election effects or those influenced by global sentiments.
Sectors to consider include commodities, especially gold. Gold prices in the spot market rose by 17.06% in 2023, reaching their peak on December 4 at US$2,135.4 per troy ounce. Gold remains an attractive long-term investment.
Understand the risks and your initial investment goals. Do you aim for trading or long-term investment?
For investors with a conservative risk profile, government securities (SBN) could be a good investment choice according to their tenure.
Buying SBN in the secondary market is becoming easier with the help of trading applications from securities companies or mutual fund sales agents.
Moreover, having readily available cash is important.
Value yourself
A thrifty lifestyle can help you maintain savings and emergency funds. Do this if you haven’t already.
However, this doesn’t mean you have to completely stop enjoying things you like. You can still plan holidays or buy desired items with proper financial planning.
Plan these activities well in advance to keep your finances in check. Always prioritize your goals.
Appreciating yourself by taking breaks from activities can help refresh you and find new inspiration to strengthen your financial condition in the future.”
