How to Save (with Pictures)

2024 Author: Jason Gerald | [email protected]. Last modified: 2024-01-16 19:04

Saving is one of those things that is easier said than done. Everyone knows that saving for the long term is a wise decision, but many of us still have a hard time saving. Saving isn't just about reducing your expenses, although reducing expenses in itself can be challenging for some people. Savers need to carefully consider the use of the money they have, as well as how they can increase their income. Read step one to learn how to set realistic goals, keep as much money in the bank as possible, and earn long-term profits.

Step

Part 1 of 2: Saving Responsibly

Step 1. Save your money first before using it for other needs

Instead of spending your money first and saving what's left, the easiest way to save is to spend your income instead. By setting aside some of your income directly into your bank account or retirement account, you will experience less stress and fatigue when determining how much money you can save and how much money you can spend each month. Basically, you will save automatically and the money you get per month is money that you can use for the things you want. Over time, the income you deposit with the bank (even if it's only a small amount) can increase the amount of money in your account (especially if there is interest each month). Therefore, start saving as early as possible so that you can get the maximum profit.

• To set up automatic deposits, talk to the finance clerk at your workplace (or contact a third-party payroll service if your company uses that service). If you can provide specific savings account information that is separate from your regular checking account, you can usually set up automatic deposits straight into your account without any problems.
• If for some reason you can't set up an automatic deposit for every salary you earn (for example, because you work as a freelancer or are almost always paid cash), determine how much money you want to save and then manually deposit it into your account each month. Don't forget to be consistent in saving.

Step 2. Avoid building up new debt

There are some debts that, perhaps, really need to be taken. For example, people who are very rich may have enough money to buy a house and pay it off in one payment, but people who are less fortunate may use a loan to be able to buy a house and pay off the loan in certain installments. However, in general, if you can avoid debt, try not to go into debt. The amount of direct payments in advance will be cheaper than payments through certain installments because the existing installment interest can continue to accumulate.

• If you inevitably have to take on debt, try to take the largest installments. The greater the purchase price you can pay up front, the faster you will pay off your debt and the less interest you will have to pay.
• Even though everyone's financial situation is different, almost all banks recommend that the debt paid should amount to 10% of your income (before taxes), and any debt that amounts to less than 20% of your income is considered 'healthy' debt. In addition, debt which amounts to 36% of income is considered the upper limit of the amount of debt you can have.

Step 3. Set a reasonable saving goal

It will be easier for you to save if you know that you need to save to get something you want or need. Set your saving goals (which you can still reach) as motivation to make the necessary financial decisions so that you can save responsibly. For big goals, like buying a house or retiring, it may take you years to reach those goals. In this case, it is important for you to monitor the progress of your savings regularly. By pausing and looking at your previous financial condition, you can find out how much effort you put into saving and how much more effort is needed to reach your goals.

Achieving big goals, such as retirement, can take a very long time. In the period of waiting for that goal, it is likely that there will be changes or differences in financial markets from what is currently happening. Therefore, before you set your goals, take some time to research the predicted market conditions in the future. For example, if you are in your prime earning age, most financial commentators say that you need about 60-85% of your current income in order to have the lifestyle you currently have when you retire

Step 4. Set a timeframe for achieving your goals

Setting ambitious (but still reasonable) deadlines for achieving your goals can be good motivation for you. For example, let's say you set two years from now to own your own home. If that's the case, you'll need to find out the average cost of buying a home in the area you want to live in and start saving for your down payment on your new home (in most cases, down payment on a home often doesn't exceed 20% of the selling price).

• So, for example, if the houses in the area you want to place are selling for around three hundred million rupiah per unit, then you need to collect at least 20% of the selling price, which is six hundred million rupiah (300,000,000 x 20%). How easy it is to collect these funds will depend on how much you earn.
• Determining the timeframe is important to do, especially to achieve important short-term goals. For example, if you need to change gears in your car, but you can't afford new gear, you need to save up for changing gears as soon as possible to ensure you can still get to work (or other places). An ambitious but reasonable timeframe can help you achieve these important goals.

Step 5. Create a financial budget

Committing to saving money to achieve your goals is easy to do. However, if you don't have a way to track your spending, it will be difficult for you to achieve these goals. In order to keep track of your financial progress, try to budget your income at the beginning of each month. By setting a budget for your major expenses ahead of time, you can ensure that you don't waste money, especially if you divide your paycheck by the budget you have as soon as you get it.

• For example, with a monthly income of IDR 10 million, you can budget as follows:

  • House necessities: IDR 1,000,000, 00

    Tuition fee (school): IDR 500,000, 00

    Food: IDR 3,000,000, 00

    Internet: IDR 500,000,00

    Fuel: IDR 1,000,000,00

    Savings: IDR 2,000,000,00

    Others: IDR 1,000,000,00

    Entertainment: IDR 1,000,000,00

Step 6. Record your expenses

Everyone who wants to save money has to tighten their spending, but if you are unable to monitor these expenses, it will be difficult for you to achieve your goals. By recording how much you spend for various needs each month, you can identify the financial problems you are facing and adjust your expenses to suit the funds you have. However, to monitor expenses, you need to take the details of expenses seriously. While everyone needs to keep track of major expenses (such as household expenses or debt payments), the amount of attention you pay to small expenses in general can increase the seriousness of your financial situation.

• It is more practical if you always have a small notebook ready. Get in the habit of recording every expense and keeping purchase receipts (especially for the purchase of important items). Whenever possible, re-record your expenses in a larger notebook or enter them into a data processing program as a long-term financial record.
• Keep in mind that these days there are lots of expense tracking apps for your phone that you can download. Some of these applications can be downloaded for free.
• If you have a serious problem with using money, don't hesitate to save every purchase receipt you get. At the end of the month, divide the vouchers into several categories, then add up the total purchases in each category. You may be surprised to find out how much money you have spent on secondary purchases.

Step 7. Start saving as early as possible

Money stored in a savings account will usually pay interest at a certain percentage. The longer you keep your money in the account, the more interest you collect. Therefore, it would be better if you save as early as possible. Even if you can only save a small amount each month in your twenties, try to save. That way, even though the money you have in your account is relatively small, the interest accumulated in the long term will make your account balance exceed the initial balance.

For example, let's say you got a low paying job when you were in your twenties. From this job you get a salary of ten million rupiah and save it in a high-interest savings account, with an interest rate of 4% per year. Within five years, the interest collected will reach one million rupiah. However, if you save one year in advance, you will get an additional Rp. 200,000.00 of the annual interest. Even though it's small, the annual bonus you get is still significant

Step 8. Consider opening a retirement savings account

When you are young, energetic, and healthy, retirement may be a long way to go and nothing to think about. However, as you age and begin to lose the power to work, retirement can be the main thing on your mind. Saving for retirement is something you need to consider once you have a stable career, unless you belong to the lucky group with large fortunes. The sooner you think about retirement savings, the better off you will be. As explained earlier, although everyone has different financial conditions, it's a good idea to prepare around 60-85% of your annual income so that you can continue to enjoy the lifestyle that is now followed in your old age.

• If you haven't opened a retirement savings account, talk to your boss about the possibility of opening a retirement savings account for employees. The retirement account allows you to automatically deposit a certain amount of money from your income into the account, making it easier for you to save. In addition, money deposited into a retirement account will not be subject to the same taxes that are taxed on your income. Today, many companies offer proportionate programs that match retirement services. This means that these companies match a certain percentage of each of your earnings per month.
• Since 2014 in the United States, the maximum balance you can keep in a retirement account per year is 17,500 dollars or about 175 million rupiah.

Step 9. Make investments in the stock market carefully

If you've been saving responsibly and have enough money left over, investing in the stock market can be a lucrative (and risky) opportunity to earn some extra cash. Before investing in the stock market, it is important that you understand that the money you invest has the potential to be lost and cannot be recovered, especially if you do not know how to invest in the stock market. Therefore, do not follow this step as a way to save in the long term. Instead, think of the stock market as an opportunity to simply make smart bets using money you can afford to give up (in case something bad happens). In general, most people don't need to invest in the stock market at all as part of saving for retirement.

For more information on making informed decisions about investing in stocks, read articles on how to invest in the stock market

Step 10. Don't feel hopeless

When you find it difficult to save, you will more easily lose your temper. The conditions you are experiencing may indeed be difficult, to the point that it seems impossible for you to save to achieve the long-term goals that have been set. However, regardless of how little money you save the first time, you always have the opportunity to save. The earlier you save, the sooner you will achieve financial security.

If you feel hopeless because of your financial condition, try discussing your problem through financial counseling services. These agencies operate for free (or usually charge very low prices for their services) and are there to help you start saving, so you can achieve your financial goals. In the United States, the National Foundation for Credit Counseling (NFCC) is a non-profit organization that can help you solve your financial problems

Part 2 of 2: Cutting Expenditures

Step 1. Remove expenses for tertiary needs from your fund

If you have trouble saving, it's a good idea to start by eliminating expenses for tertiary needs first. We do a lot of expenses that are considered trivial, but are actually not so important. Eliminating spending on tertiary items is a big step towards improving your financial condition because they will not significantly affect your quality of life or your ability to work. While it's hard to imagine life without luxury (but fuel-consuming) vehicles and pay-TV services, you will be surprised to realize that you can still live without them once you stop using them. Below are some easy steps to reduce spending on tertiary things:

• Unsubscribe from optional television or internet packages.
• Use a cheaper cellular service plan for your phone.
• Exchange your luxury car for a car that is more fuel efficient, and costs less to maintain.
• Sell electronic devices that are no longer in use.
• Buy clothes and household items from a thrift store.

Step 2. Look for cheaper housing

For most people, housing-related expenses are the biggest expense in their budget. Therefore, saving for housing costs can significantly save your income so that it can be used for other important purposes, such as retirement savings. While it is not always easy to change living conditions, you need to seriously re-examine the condition of your housing if you are having trouble balancing your funds.

• If you are renting a residence, you should try to negotiate a lower rental fee with the landlord or landlord. Since most landlords or landlords don't want to take the risk of finding new tenants, you can get a lucrative deal, especially if you and your landlord have been on good terms all along. If necessary, you can do work such as gardening or repairing the house to get a lower rent.
• If you are paying off a mortgage, discuss with the borrower about changing your debt repayments. You can negotiate for a more profitable deal if you have a strong bidding position. When changing your debt repayments, try to make your repayment times as short as possible.
• You may also consider moving to a less expensive residential area. In the United States, recent research shows that cities such as Detroit (Michigan), Lake County (Michigan), Cleveland (Ohio), Palm Bay (Florida), and Toledo (Ohio) are the least expensive residential areas. In Indonesia, small cities usually offer cheap housing compared to big cities. In addition, sub-districts that are quite far from the city center also usually have cheap housing.

Step 3. Save on your meal costs

Many people use their money to pay for food, more than necessary. While you may forget to save money when enjoying a fine meal at your favorite restaurant, spending on food costs can be huge if you get out of control with your money. In general, buying groceries in bulk in the long run will be cheaper than buying groceries in small quantities or individually. Also, try making memberships at convenience stores like Yogya or Carrefour if your food expenses are big enough. Eating at a restaurant is the most expensive option when it comes to how much money you need to spend. Therefore, to save money, it's a good idea to make your own food at home instead of eating out.

• Choose foods that are cheap, but still nutritious. Instead of buying pre-cooked or processed foods, try buying fresh food products at your local supermarket. You may be surprised to realize that enjoying healthy food doesn't have to cost a fortune. For example, brown rice, a staple food that is highly nutritious, you can buy for around Rp. 10,000 per kilogram.
• Take advantage of the discounts held in stores. Many supermarkets (especially large supermarkets) provide coupons and discounts that can be picked up at the checkout. Don't waste this offer.
• If you often eat out of the house, try to break the habit. In general, it's more cost-effective to cook yourself at home than to order (the same amount) of food at a restaurant. Plus, by getting into the habit of cooking your own meals at home, you'll learn cooking skills that you can use to surprise your friends, satisfy your family, and even attract the attention of your crush.
• Don't hesitate to take advantage of the free food outlets in your area if your financial situation is serious. Places such as soup kitchens or shelters for underprivileged people provide free food to people who really need it. If you need this assistance, contact the social services department in your city for more information.

Step 4. Reduce electricity usage in your home

Almost everyone just pays their electricity bill every month regardless of the electricity they use. In fact, reducing the use of electricity can be done with a few easy steps (and of course the electricity bill will also be reduced). These tricks are so easy to do that there's no reason not to do them if you really want to be thrifty and save. What's even better is that, by reducing your electricity use, you also reduce the amount of pollution you indirectly generate, thereby reducing the negative impact on the environment globally.

• Turn off the lights in your home when you are away or not using them. There's no reason to leave the light on when you're not in a certain room (or home). Therefore, turn off the lights when you go. You can also put a small message on each door in case you often forget to turn off the lights.
• Avoid using heaters or air conditioners when not needed. To keep the air in the house cool, open your windows or use a small fan. Meanwhile, to keep the air warm, wear thick clothes, wrap yourself in a blanket, or use a small air heater.
• Purchase high-quality insulation for your home. If you have enough money to repair your home, try repairing the old and perforated insulation in your walls with new, more efficient insulation. In this way, the warm or cool air in your home will be maintained and you will save more money in the long run.
• If you can afford it, buy solar panels. Solar panels can be the right choice as a big investment for your future, and also the future of the earth. Although the initial purchase cost is quite high, solar technology will become cheaper and easier to buy over time.

Step 5. Use a cheaper type of vehicle

Owning, maintaining and using a car can be quite expensive. Per month, you may need to spend up to millions of rupiah on fuel costs, depending on how often and how far you drive. What's more, if you own a car, you will need to pay for a driver's license fee and a car maintenance fee. Therefore, instead of driving, use a cheaper (or even free) alternative vehicle option. This way, you can not only save money, but also spend extra time exercising and reduce the stress you experience every day while driving.

• Find out about the public transportation options available in your area. There are a variety of cheap public transportation options around you, depending on where you live. Most big cities in Indonesia have a network of electric rail trains, commuter trains (such as those in the Jabodetabek area), and buses that serve transportation within and outside the city. As for small cities, the means of transportation that you can use include buses, city transportation (angkot), and rural transportation (angdes).
• Try walking or cycling to work. If you live close enough to your office, you can walk or bike to your office. Both are great ways to get to work for free while enjoying the fresh air and exercising regularly.
• If you really need to use a car, try finding a ride. Hitching a ride allows you to share the cost of fuel and vehicle maintenance with the person giving or being given a ride. Plus, you'll also have friends to chat with along the way.

Step 6. Look for cheap (or even free) entertainment

While while cutting back on personal expenses you also need to cut spending on small luxuries, that doesn't mean you can't have fun at all if you're trying to be frugal. By changing your pattern of fun and entertainment activities and engaging in less expensive activities or entertainment, you can keep balance between fun and your responsibility to save. As long as you're resourceful, you'll be surprised to find that you can still have fun even if you don't have or spend a lot of money.

• Always pay attention and find out information about events being held around you. Nowadays, almost all municipalities display a schedule of events that will be held in that city and you can view the schedule on the internet. Often, events organized by local government or community associations can be visited for a small fee or even free of charge. For example, in medium-sized cities, you can visit art exhibitions for free, watch movies in city parks, and visit events for donations.
• Try reading a book. Compared to watching movies or playing video games, books can be a cheaper source of entertainment (especially if you buy them from a used bookstore). Quality books can be interesting and allow you to experience life from the point of view of the characters at hand, as well as learn new things that you may not have experienced before.
• Do activities that don't require a lot of spending with your friends. There are tons of things you can do with your friends, without spending a fortune (or at all). For example, you could go for a walk and enjoy nature, play board games, watch old movies in an open-air theater (or maybe a step-by-step), explore an area of your city you've never been to, or exercise.

Step 7. Avoid expensive items that can make you addicted

Some bad habits can have a bad impact on your efforts to save money. Worst of all, these habits can become serious addictions that are almost impossible to break without help. In addition, these addictions can also be very harmful to your health in the long run. Save your money (and your body) from the problems involving these addictions by first avoiding the things that can make you addicted.

• Do not smoke. Today, the harmful effects of cigarettes are widely known by people. Smoking can cause serious diseases such as lung cancer, liver disease, stroke, and other serious diseases. What's more, cigarettes are expensive goods. In the United States, a pack of cigarettes can sell for around one hundred fifty thousand rupiah, depending on where you live. In Indonesia itself, cigarettes (per pack) are not sold at such an expensive price. However, if purchases are made daily, the amount you spend on cigarettes will be significant.
• Don't drink too much alcohol. Although occasionally enjoying alcoholic drinks with your friends will not make you poor, drinking alcohol on a large scale and every day can cause serious long-term problems, such as liver disease, impaired mental function, weight problems, delirium, and even death. In addition, treatment for alcoholics can also be a considerable financial burden.
• Don't use illegal drugs. Drugs such as heroin, cocaine, and methamphetamine are highly addictive and have serious (even deadly) effects on your health. In addition, these drugs are also more expensive than alcoholic beverages and cigarettes. For example, country musician Waylon Jennings is said to have spent $1,500 a day or around 15 million rupiah because of his habit of using cocaine.

• If you need help dealing with addiction, Don't hesitate to contact the rehab. In Indonesia, there are several agencies that provide rehabilitation for addicts, especially drug addicts, such as the National Narcotics Agency and the BNN Rehabilitation Center.

Use Money Carefully

1. Use your money for the most important needs first. When it comes to using money, there are some things that you really need. These things (eg food, water, shelter, and clothing) need to be prioritized when you spend money. Obviously, if you are homeless and starving, it will be increasingly difficult for you to achieve your other financial goals. Therefore, you need to make sure you have enough money to get at least these basic necessities before using your money to buy something else.

   

   • However, just because those needs (food, water, and shelter) are important, doesn't mean you have to spend all your money on them. For example, by reducing the frequency of eating out, you have taken easy steps to drastically reduce the cost of eating out. In addition, moving to an area with cheaper housing prices or renting a place to live is also a great way to reduce housing costs.
   • Housing costs can be very expensive, depending on the area you want to live in. In general, most financial experts advise against taking out mortgages that account for more than one-third of your income.

2. Make savings for emergencies after you use your money to buy basic necessities. If you don't have enough reserve funds to use when you lose your income, plan for those funds immediately. By saving some money in a special account, you can easily solve expenses related problems if you lose your job. Once you've covered your basic expenses, you'll need to set aside some of your income for an emergency fund until there's enough money to cover your living expenses for about 3 to 6 months.

   

   • Keep in mind that the difference in the cost of living will depend on the financial situation in the area you live in. For example, in small towns, two or three million rupiah can cover the cost of living per month. However, in big cities (eg Jakarta or Bandung), two or three million rupiah may not be enough to support one month's living expenses. If you live in a big city or in an area where the cost of living is high, you'll need an even bigger emergency fund.
   • Apart from giving you peace of mind that things will work out just fine when you're having a difficult career, an emergency fund can also help you earn money in the long run. If you lose your job and you don't have an emergency fund, you'll be forced to take whatever job you get, even if the pay isn't enough to cover your living expenses. On the other hand, if you have an emergency fund, you can survive for a certain amount of time even if you don't have a job. In that time, you can choose a better job with a bigger salary.

3. Pay off your debts once you have an emergency fund. If not monitored, existing debt can damage your efforts to save. If you only pay the lowest installments, in the end you will have to pay more than the debt that was paid in the largest installments. Save for the long term by setting aside some of your income to pay off existing debts so you can pay off the debt as soon as possible. As a general guide, pay off debts with the highest interest in order to use your money more effectively.

   

   • Once you are able to buy basic necessities and save an emergency fund, you can use almost all of your remaining income to pay off your debts safely. On the other hand, if you don't have an emergency fund yet, you can divide the rest of your income and use some of it to pay off debt each month. You can save the rest of the distribution as an emergency fund.
   • If you have multiple debts that are overwhelming enough to overwhelm you, find a program or way to combine the debts. You can combine existing debts into one debt with a lower interest rate. However, keep in mind that the repayment period for these combined debts may be longer than the previous repayment period.
   • You can also negotiate with the borrower directly to get a lower interest rate. Of course, the borrower doesn't want you to go bankrupt, so there is a possibility that they will reduce the interest on the loan so you can pay off the existing debt.
   • For more information, read the article on how to get out of debt.

4. Save the money you earn. Once you've managed to set up an emergency fund and pay off all (or nearly all) of your existing debt, you can start setting aside money and putting it in a savings account. This saved money will be different from an emergency fund. An emergency fund can only be used when you really need it, while regular savings can be used to make large or important expenses, such as the cost of repairing the car you use to drive to work. However, in general, you need to avoid using these savings so that the amount of your existing balance will continue to increase over time. If you can afford it, try to set aside about 10-15% of your monthly income for savings, since you are in your twenties. Most financial experts say that this can be a good financial goal.

   

   • When you get your monthly paycheck, you may be tempted to buy something right away. To avoid this temptation, immediately deposit your salary into a savings account after you get it. For example, if you get a salary of five million rupiah and want to set aside 10% of your income, immediately deposit five hundred thousand rupiah from your salary into a savings account. This can help you cut down on unnecessary expenses and accumulate a lot of money in a few years.
   • As a better alternative, do an auto debit to your savings account so that when you get a salary, the salary will be directly deposited into your account automatically and you will not be tempted to use your salary. Talk to your boss about registering an auto debit system to your savings account or using a third party auto debit service. This way, you can easily send a few percent of your paycheck directly to your savings account.

5. Use your money for secondary needs. If you still have money left over after you deposit a portion of your income into a savings account each month, try using your money for secondary needs that can increase your productivity, so that you can increase your potential and quality of life in the long run. While these needs are not as important as needs such as food, water, and shelter, they are wise long-term choices and can help you save money.

   

   • For example, an ergonomic chair that you sit on while working is not a basic necessity. However, purchasing such a chair can be a wise long-term choice as the risk of back pain is reduced and you can continue to work (and unfortunately, if your back pain becomes more serious, the treatment can be more expensive than an ergonomic chair). Another example is that you can replace your old broken water heater. While you can still use your old water heater for a short period of time, by buying a new one you don't have to incur the expense of maintaining or repairing your old water heater, so you can save money.
   • Other examples are purchases that can help reduce your transportation costs, such as monthly or yearly public transportation tickets, tools that can help increase work effectiveness (e.g. headsets if you work a lot with your hands), and purchases of other products that make work easier. You are like the sole of a shoe that can improve your posture.

6. Finally, use your money for tertiary needs. When you save, it doesn't mean that you have to have a hard life. Once you've paid off debt, have an emergency fund, and spent your money wisely on long-term needs, you're entitled to use your money to pamper yourself. Reasonable and responsible tertiary spending is a great way to refresh your mind while still working hard. Therefore, don't be afraid to celebrate your financial condition by making reasonable purchases of luxury items.

   

   Tertiary goods can be any goods or services that are not classified as basic goods, and only provide short-term benefits. These include enjoying meals at fancy restaurants, vacations, new vehicles, cable television services, high-end and expensive devices, and so on

   Tips

   • If you really WANT something, ask yourself if you really NEED it. Sometimes, what you want isn't what you really need.
   • Most people can still save regardless of their income. By saving little by little, you will be trained to get used to saving. Even with fifty thousand rupiah per month, you will realize that you don't need as much money as you think.
   • Always overestimate your expenses than you think.
   • Shop with paper money (don't pay with exact money) and keep the change you get. Use a piggy bank or jar to store the change. Coins and change may not seem valuable, but if accumulated over a long period of time, the amount saved can be a significant savings. Some banks are now offering free coin counting services. When exchanging coins, ask for the money to be exchanged in the form of a check so that you are not immediately tempted to spend the money.
   • Take care of the things you have. This way, you don't have to change your things frequently. In addition, do not immediately replace existing items if they are not really needed. For example, just because your electric toothbrush is broken, doesn't mean you can't use it. Keep using the item and, if the item is completely unusable, buy a new one or check the warranty provided.
   • Whenever you want to buy something, think about the item you want to buy using your savings and a rough percentage of your savings. That way, the item you were going to buy will look expensive and, in the end, you won't buy it.
   • If you get a fixed amount of salary on a regular basis, over time making a financial budget will become easier to do. If your income fluctuates, it will be more difficult for you to anticipate expenses because you don't know when you will get your next paycheck. Make a list of needs based on priority and meet the basic needs first. Keep playing safe; assume the next salary will be obtained in a fairly long period of time.
   • If you can't close all your credit cards, at least try not to use them. You can (literally) freeze it so you can't use it. Put your credit cards in a container, then fill the container with water and place the container in the freezer. That way, if you want to use the credit card, you need to wait for the ice to melt. While you wait, you'll realize that you don't really have to buy what you want to buy.
   • Do you have any hobbies? Adjust your hobby with the funds you have. One of the important habits of saving is if you have a hobby (for example, assembling a model airplane or--which is currently a trend among teenagers-assembling Gundam robots, scrapbooking, cycling, scuba diving, etc.), set the rules that firmly that you should set aside the same amount of money for your savings as the amount of money used for your hobbies. For example, if you buy a Gundam robot assembly package for five hundred thousand rupiah, you also need to set aside five hundred thousand rupiah for savings.
   • Enjoy the simple pleasures in your life. A few years ago (eg when technology was not yet fully developed), people could still experience happiness, even if it wasn't luxurious happiness. In ancient times, children played simple games such as cocky, bekel ball, jump rope, marbles, and others. Teenagers have fun by, for example, practicing dance, singing, exercising. In general, people entertain themselves by reading or simply listening to the radio. Try to get together with your friends to have a discussion or pray together, play a card game or do other activities that can be entertaining, such as knitting, playing music, or dancing. People in ancient times relied solely on imagination and ingenuity, but they could still have fun. If they can do it, so can you.
   • If you prefer, try to find coins on the ground or on the sidewalk every day. Store the coins in a piggy bank or jar and watch how quickly your piggy bank or jar fills up.
   • If you are willing and able to share the things you have, from food to shelter to household appliances, try doing this. In friendship, what you give comes back to you. In no time, you'll realize that your friends will start sharing too, so everyone benefits from each other.

   Warning

   • If you don't manage to save, don't get discouraged and blame yourself. Try saving again next month when you receive your paycheck.
   • Don't walk around and look around in shopping malls with money. Later, you will be tempted to use the money. Shop with a list of the things you will need.
   • After a hard day's work, you may want to treat yourself to luxury purchases. You may be telling yourself that you deserve these things. However, keep in mind that the things you buy are not really gifts for you; they are simply things that are exchanged for your money. So try to say to yourself: “Of course I deserve these things, but can I really afford them? If I can't afford it, I'm still a good and valuable person after all, and I still deserve to reach my saving goal!”
   • Don't deduct medical expenses unless you're in a really tough financial situation (for example, you're in danger of being kicked out of your home and your three children are starving). Preventive treatment for yourself, your family, and pets may cost you around seven hundred thousand rupiah per visit (or three hundred thousand rupiah for medicine), but if you don't pay for the treatment, there is a possibility that health problems will arise. happen in the future. Treatment for more serious problems can be more expensive.
   • If you have a friend who loves to shop, you may want to take notes and prepare reasons that you can use to decline their shopping invitations.
   1. https://budgeting.thenest.com/much-should-pay-debt-monthly-21660.html
   2. https://www.fool.com/Retirement/RetirementPlanning/retirementplanning03.htm
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   4. https://www.consumerismcommentary.com/401k-contribution-limits/
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