The present and a happy old age are, of course, a dream for almost everyone. Unfortunately, the reality reveals that in old age, not a few people actually have problems with finances.
This could be due to decreased productivity that has an impact on their finances, as well as a lack of financial literacy during youth.
On the other hand, the importance of financial literacy will make you plan and use your money wisely.
Severance pay is not enough
Some companies set the retirement age between 55-58 years. At that time, workers will receive severance pay, which turns out to be used for monthly needs in about 3-5 years.
Well, the question is what will happen in the sixth year and beyond?
Therefore, to get around this, namely so that in your old age you can still meet your daily needs sufficiently, the pension fund itself can actually be prepared from now on when you are still actively working, namely in your 20-30s.
Still quoting from the same page, at that age, you can form investment assets that can provide passive income when retirement arrives.
Initially you can consistently apply the concepts of 50, 30, and 20 in managing income, for example. That is 50% for basic needs, 30% for self-pleasure and 20% for saving and investing, for long-term goals.
From the many investment instruments available, choose the one that best suits your risk profile. That's why it's important to learn it first, instead of jumping right in with your friends.
Avoid Excessive FOMO
FOMO or Fear of Missing Out is a term that refers to the feeling of being afraid of missing out, especially now that we are in the digital era, which allows exposure to trends and all things new, very easily reach us.
It's not wrong to follow the trend, it's just that if it reaches an excessive stage, it tends to lead us to wasteful living behavior until we get into debt.
On the other hand, getting used to living a simple lifestyle will actually make you able to save more money.