One of the most frequent moments after payday is “the moment feels payday is still long because the newly received salary is up”. This moment is definitely felt by you millennials. In addition, one reason is that most of us allocate salaries to spend first, then pay installments, and the rest is saved. This is wrong because salaries should be used first to pay installments, save, then spend the rest. Believe it or not, spending will always be directly proportional to your salary. So, if the salary is spent first, how much your salary is, the remaining salary percentage is still small.
In fact, there are ways that you avoid the moment, how? The following is a way for you to allocate salary so that the beginning of the month doesn’t feel like the end of the month.
Salary Allocation Tips
Allocate 10% salary for charity/charity
You must allocate 10% of the salary earned for charity or alms. Doing charity/charity is one form of investment, namely spiritual investment. The goal is for good, sharing, and not being a slave to money.
Allocate 20% salary for the future
At least you have to invest 20% of your salary for future investments. Investment can be divided into 2, namely for future investments (long-term investments) and future security, with a proportion of 10% each but can be adjusted to the objectives of your investment needs. For long-term investments you can invest in gold, mutual funds, stocks, deposits, etc. However, we recommend that the investment be divided into high risk (shares) and low investment (deposits) with a proportion of 5% each. Meanwhile, for future security investments you can choose insurance. Insurance is very helpful to avoid events that require large costs, with insurance you can protect yourself and your family in the future.
Allocate 25% salary for productive installments
The purpose of productive installments is installments for homes or motorized vehicles that support the need for productivity. Banks generally consider that the monthly installments you take are no more than ⅓ salary or / equivalent to 33% salary. In this concept it is recommended to allocate 25% salary for productive installments, but this can be adjusted to your needs.
Allocate 5% salary for entertainment / holidays
In addition to charity/charity, investment, and productive installments, the important thing is the allocation for entertainment or vacation. The proportion is recommended not more than 5% of your salary. If you are not the type of person who likes to take a vacation/walk, you can allocate it to buying items that give yourself satisfaction as a reward for your work.
Allocate 40% salary for living needs/costs
The recommended proportion of living costs is 40% of salary. You can use the amount allocated to it, but if there is anything left it will be better to save it again.
That is the proportion of salary allocation that can be used as a reference. In short, when payday you have to prioritize charity/charity, investment, productive installments, entertainment or vacations, then the rest is allocated for living expenses. But keep in mind, the proportions above can change according to your needs. For example, 40% for daily needs is too large, you can allocate it to other posts such as for entertainment/holidays or for investment. But the most important thing is that you routinely follow the rules that have been set every month.