Jakarta, Armfalcon.com – In a matter of days, you will immediately receive a holiday allowance, aka THR. But are you sure that the THR will last a long time in your account, or will it just pass by because it’s been spent?
The phenomenon of THR passing by because consumptive things are a natural thing to happen. In fact, THR can help us lighten our expenses every year, say, to ease debt payments, or to pay all payments that are routinely paid once a year.
For those of you who don’t want THR money to just pass by, apply the method for managing income and expenses below.
Zero budget method
In this method, you will be asked to spend all your money in a month until there is nothing left.
However, that doesn’t mean you spend it on consumptive things only. You have to make one more post for savings and investment, and like it or not you have to allocate funds for it.
Table: Armfalcon.com Research
The question arises, if there are remaining funds that can be used for investment, but you don’t have a clear investment plan yourself, or don’t know what instrument to buy at this time, then where will you put the unemployed funds?
Leaving these funds in savings can of course cause the money to be accidentally used for consumptive needs.
Just in case, you can put the idle fund in a money market mutual fund. Money market mutual funds are often touted as a low risk investment instrument.
The assets included in the money market mutual fund portfolio are money market instruments such as time deposits or debentures with maturities of under one year.
Pay Yourself First Method
In this method, you are required to spend money on savings and investment first before you spend it on consumptive needs.
For example, in a month your total income and THR is IDR 20 million. Before you use it to pay for daily needs, you can allocate IDR 6 million or 30% of the total income to save and invest first.
With this method, your THR will not be just passing by but has been allocated for productive needs.
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