Poverty can mean having no money, but it can also mean having no hope. Poor people often feel they don't have enough power to change the situation. They can feel isolated from society. If you want to overcome the poverty that plagues you, you need to get into the habit of planning your finances and being positive and open to the help of others.
Step
Part 1 of 4: Fixing the Situation
Step 1. Learn
Research shows that you are more likely to have more money if you have a higher level of education. If you want to overcome poverty and not return to poverty, one of the best things you can do is get the right education and training.
- Some career paths require only a diploma that can be earned in a few years and earn a hefty salary. Look for cheap colleges near you, and find out what educational programs are available. That college should be able to help you get a job that a lot of people need.
- Discuss your financial condition with the school's finance office. You may not need to go into debt.
Step 2. Find out where you live
Finding a decent place to live that fits into your pocket can be difficult if you live on a minimum (or lower) salary. If you are renting or renting out, try to find a friend to talk to. The rental price/contract will feel lighter when shared with other people.
- If you have a house, you might be able to rent out one of the rooms. Of course, first check who will rent your room. Be extra careful if you have small children.
- Consider moving to another area where the cost of living is lower. If you're having trouble finding a place to live that fits your ability, you may need to move to another area. Try to compare the cost of living in different cities. If you choose to move, make sure you have a job in the area first.
Step 3. Find a better job
If you are poor, chances are you are now doing several jobs at once. This is not a permanent solution to poverty, and it may even make you more stressed.
- If you don't have internet access at home, try visiting a cheap internet cafe or library.
- Make this job search your daily routine. If you have a few hours of free time in the morning before leaving for work, use that time to find work.
- Avoid submitting applications on all job offers you get. Choose the right job and look for a job that can improve your current situation.
- Open a LinkedIn account. LinkedIn can help you find work. Build your profile to invite job seekers. Include a professional photo and a catchy motto. Include as much information about yourself as possible in that profile. Treat the profile as a continuation of your curriculum vitae. If you have a lot of volunteer work experience that doesn't fit in your curriculum vitae, put it on your LinkedIn profile.
Step 4. Try asking for a raise
You may be able to ask your manager for a raise, depending on how long you've been with the company. Of course, make sure beforehand that you have a reason to ask for a raise before meeting with the boss.
- Find out the salaries of other people in the same field as you. Don't ask your co-workers for salaries, but look online and see the average salary for your current job.
- Don't ask your manager for a raise because you feel you deserve more. Stay calm, negotiate with the boss until you reach an agreement that is best for both parties. Look for ways to help the boss. With more salary, you may also be given more responsibility.
Part 2 of 4: Managing Finances
Step 1. Pay all outstanding debts
If you have any debt, pay it off as soon as possible. You can't afford to go into debt if your salary is still at the minimum wage level.
Paying off debt should be your top priority
Step 2. Find another bank
Some banks charge certain fees if you don't have a minimum balance in your account. This can complicate your financial situation. Look for another bank that can help you get back on your feet.
Services such as TabunganKu from Bank BCA are almost completely free. Services like these can help you avoid the cost of a minimum amount of savings
Step 3. Start creating a budget
Without a budget, you'll have a hard time keeping track of your expenses. You will find it easier to spend more money than you should and have a hard time saving.
- Pay attention to your income level, various bills, and how you spend any extra money you have. The sooner you learn to budget for your income, the sooner you will achieve financial independence.
- Make a list of your needs and wants. Needs are essential things such as food, clothing, shelter, and medicine. Wants are things like pets, entertainment, computers, and television. Some things may be harder to leave than others. You still need to determine what you can and can't leave behind.
Step 4. Don't rely on payroll debt ("cash") for emergency money
This practice of using paychecks prematurely is attractive, but it almost always does more harm than good. Your financial condition will even get worse if you rely on "kashbon".
- It can be difficult, and it does take a bit of thought, but try to start budgeting for emergencies. Call it an emergency budget. A good emergency budget target is IDR 5,000,000. It may seem huge, but start small. Save about IDR 150,000 every time your salary drops.
- You can avoid dependence on payroll debt if you stick to the budget that has been made. If you've stuck to a budget and are still short on money, don't immediately look for debt. If possible, try to delay payment until your next paycheck. However, be careful when requesting a delay in payment. You will need to inquire about any additional fees that may exist. Don't be late paying. Constantly late payments can damage your reputation.
Step 5. Avoid shopping with installments
Shopping in this way only looks attractive on the surface. You see something you want to buy but can't afford, and they give you an installment, so you can pay it monthly. However, if you shop with installments like this, you will pay much more after adding interest.
Instead of buying things in installments, wait until you can afford them. If you find a TV for IDR 4,500,000 that you really want to buy, and decide to pay it in installments, you will end up paying more than IDR 7,000,000 in interest
Step 6. Buy second hand
You don't always have to buy new things. If you have more money, you'll find it attractive to spend a little bit more and buy something. However, if you do this too often, you run the risk of creating bad financial habits. If there is an item that you want to buy, and someone is selling it secondhand, buy it and save your money.
You can buy a lot of second hand stuff. Clothing, equipment, books, even medical devices, you can buy second hand. You can also save money by buying bulky equipment or a used vehicle
Step 7. Find a way to pay for health insurance
There are not many affordable health insurance, but you can still get health insurance. You really need to take care of your health, especially if you are short of money. People who lack money are more prone to health problems and health bills can be very large.
- Every Indonesian citizen is required to have a National Health Insurance. You may be able to pay for a lower class or ask for tuition assistance. The requirements usually depend on the size of the income and the size of the family.
- You can see information about contribution assistance on the National Health Insurance (JKN) website.
- If you have unpaid medical bills, negotiate with the hospital first. Look at your bill and look for charges that may not match. Sometimes the hospital records incorrectly and you may be overcharged.
- If you can't pay your medical bills and have tried negotiating with the hospital, look online for help. There are many fundraising sites on the internet for medical expenses for the underprivileged.
Step 8. Save the change
You won't get rich quick with your spare change, but you can still deposit the change in the bank. Little by little it becomes a hill.
Put your change in the piggy bank every day. Once your piggy bank is full, calculate how much you have and put it in your bank account
Step 9. Learn to barter
You can barter services or goods. If you have certain skills that are useful to others, you can trade those skills for the things you need.
- First, determine what goods or services you need. Then, think about what goods or services you can provide. For example, you can barter someone's house cleaning services or roof repair services. Find someone who can exchange the service for the goods you want, then make a deal with them.
- Don't feel pressured to take goods or services that you don't need. You can always refuse to barter if you don't agree.
Step 10. Save as much as possible
You may not have much money left over if your salary is minimum. Even if you've worked two jobs, your money may end up running out on your monthly bills or paying off debt. However, if you have any money left over, save it.
- You can save by reducing your monthly electricity costs. Turn off the lights when you are not in a room. Cover all leaks in the doors and windows. Use a fan and not an air conditioner. All of those things will slowly reduce your electricity costs.
- Any extra money you earn, such as a tax refund or a gift, is money you have to save. You may feel very interested in spending the money, but until you are in a better financial position, save.
- Avoid the urge to waste money by thinking before buying something. Is the item you want to buy something that is not really important to your life? Do you want to buy the item just because it's on discount? Consider your answers to questions like these. You may be about to buy something just out of lust. Avoid buying things just out of lust.
- Before buying an item, wait 24 hours. If the next morning after waking up you still think about buying the item, wait a little longer. See how long you can live without that stuff.
Part 3 of 4: Asking Others for Help
Step 1. Ask someone else to look after the child
If you have children, ask your neighbors to look after them. There are also certain libraries that provide child care services.
- You may be able to find free activities for children and support groups for people who are struggling with money.
- If there is no such program in your area, enlist the help of a family member or close friend to look after the children.
Step 2. Read an article or book about good financial habits
If you're struggling to change your financial habits, read articles or books like this one.
Articles or books like these can help you increase your income and reduce expenses
Step 3. Surround yourself with positive people
Don't let poverty isolate you from society. You still need to be in touch with the community.
If you stay in touch with the community, you will still be able to meet the goals that have been set. Look for ways to communicate with the people around you, for example through support groups, social events, or perhaps creating discussion groups with neighbors
Step 4. Seek credit counseling
If you're having trouble getting yourself out of debt, you may need to get financial advice. Although not free, the suggestions provided may be very useful to you.
- Be careful with scams. If you come across an organization that looks promising, first make sure that it is not a scam. Pay particular attention to any contracts or writings given to you.
- First check with the Ombudsman to find out the legitimacy of the credit counseling organization you want to visit. You may also be able to request information from the Indonesian Consumers Foundation. If there are complaints related to the organization you are planning to visit, stay alert. This does not mean that because there are no complaints, the organization will automatically become clean.
- Conduct interviews beforehand with existing counselor organizations or individuals. Ask what services they provide, how much it costs, and what qualifications they have.
- Make sure the organization provides the right resources to get you out of debt, such as debt management classes or budget counseling.
Part 4 of 4: Taking Care of Yourself
Step 1. Try to adapt to the situation
Living in poverty is stressful. Research shows that people living in poverty typically face higher levels of stress, but with fewer resources to combat that stress level. You should try to adapt to this situation.
- Instead of trying to get rid of the stressful thing, accept the situation and change your attitude.
- One of the important things that you must continue to pay attention to is, you must keep working to achieve goals in the future. Don't get used to your current situation and don't give up.
- Give yourself affirmations. Realize that you have self-respect, and don't let your poverty diminish your sense of self-worth. Think of the past, when you felt successful. Remind yourself every day that you have the ability to solve problems.
Step 2. Eat healthy
Living in poverty is usually associated with unhealthy eating patterns and other bad habits. Processed foods are not expensive, but they are not healthy.
- Buy ingredients that you can use in a variety of dishes. Buy some key ingredients that you can use in a variety of dishes. Save essentials like flour, spices, onions and cooking oil.
- If you can, buy items all at once to save money. You may not always be able to buy certain items, but when you can, buy them. Set aside a little money each month to buy expensive groceries.
Step 3. Take time to exercise
In addition to a healthy diet, you also need to exercise to help your body fight stress. You may not have the money to sign up for membership at a gym, but you can still exercise at home.
- Go on foot. If you have pets or children, take them for a walk. Walking can increase your heart rate and make you go outdoors. If you are feeling stressed by something, go for a walk to reduce the stress. You can also go to a relative's house to stay in touch.
- Take at least 30 minutes to exercise every day. For example, running in place while watching TV. Do push-ups or sit-ups during commercials. You don't have to spend 30 minutes in one go. Divide into two 15-minute sessions if necessary.
Step 4. Set personal goals
Think about what you want in life, in the short term and the long term. Write down those goals, and remind yourself every day.
- Sometimes achieving long-term goals is difficult, especially if the target is still years in the future. So that you don't overlook this goal, take the time to reach it little by little. Don't let your short-term goals ruin the work you've built for your long-term goals.
- Develop good habits so that you can reach your goals. Get up in the morning, read books related to your goals, and engage in activities that will benefit you. You may need to cut down on some bad, time-consuming habits, such as watching too much TV.
