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Saving is one of the key elements to achieving financial stability in the future.

Saving serves as the foundation of healthy financial planning.

By saving, one can prepare an emergency fund, plan for major future purchases, and ensure there is a reserve for unexpected needs.

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Tips for Saving with a Small Budget

Saving also provides a sense of security and reduces stress related to financial issues.

The first step to saving with a small budget is to create a clear plan.

Determine your saving goals—whether for an emergency fund, education, vacation, or other purposes.

After that, create a monthly budget that accounts for both income and expenses.

However, for many people, especially those with low incomes, saving often feels like a big challenge.

In fact, with the right strategies, saving with a small budget can be an effective starting point.

Apart from proper strategies, the “place” to save should also be adjusted to your needs.

This article will discuss several saving options that are suitable for those just starting out with limited funds.

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1. Conventional Savings Bank

A conventional savings bank is the most common place to save.

Many banks offer savings accounts with very low initial deposit requirements, and some even require no deposit at all.

Advantages of saving in a conventional savings bank include:

• Security: Funds deposited in banks are insured by the Deposit Insurance Corporation (LPS) up to a certain amount.
• Easy Access: ATMs, mobile banking, and internet banking make it easy to access your funds anytime and anywhere.
• Interest Rates: Although conventional savings interest rates are relatively low, they still add value to your savings.

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2. Credit Unions

Credit unions are another alternative for those with a small budget to save.

Advantages of saving in a credit union include:

• Competitive Interest Rates: Credit unions often offer more competitive interest rates compared to banks.
• Dividends: Credit union members can receive a share of the union’s profits in the form of dividends.
• Community Support: Saving in a credit union also supports the local community’s economic development.

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3. Financial Apps and Digital Wallets

In the digital era, many financial apps and digital wallets offer small-budget saving features.

Popular apps in Indonesia include OVO, GoPay, and DANA.

Features typically offered include:

• Fixed Savings Plans: Users can set aside a certain amount of money monthly for a fixed period.
• Micro Investments: Some apps offer micro-investment options with very small amounts.
• Transaction Ease: Money saved in these apps can easily be used for daily transactions.

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4. Mutual Funds

Mutual funds are investment instruments that pool funds from multiple investors to be invested in a portfolio of securities managed by an investment manager.

Advantages of mutual funds include:

• Diversification: Risks are spread as the funds are invested in various assets.
• Small Capital: Many mutual funds can be started with a minimum investment of IDR 100,000.
• Professional Management: Managed by experienced investment managers.

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5. Gold Savings Programs

Institutions such as Pegadaian and some digital platforms offer this service.

Advantages of gold savings include:

• Value Protection: Gold is known as an asset resistant to inflation.
• Low Initial Capital: You can start saving in gold with a small amount, even starting from 0.01 grams.
• High Liquidity: Gold is easy to liquidate or sell back.

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Conclusion:
Saving with a small budget is entirely possible with the right strategy and tools. Choose a savings option that fits your financial goals and start building your financial foundation today!

The collision between an American Airlines passenger plane and a US Army Black Hawk helicopter is expected to impact global aviation insurance.

Aviation insurance expert Arman Juffry believes that the large claims arising from this incident could lead to an increase in future insurance premiums.

According to Arman, under aviation insurance schemes, claims for this accident will proceed as usual. However, if government involvement is discovered during the investigation, claims could be processed under special schemes in the US, such as the US Victim of State Terrorism (VSST) Fund or the Victims Compensation Fund (VCF).

“What could make the claims significantly larger is if the investigation finds government involvement. In that case, claims may be processed via the US VSST or VCF, which are funds allocated by the US government for victims in cases involving state involvement,” Arman told Bisnis on Sunday (February 2, 2025).

He also explained that compensation claims for aviation accidents in the US tend to be larger than in other countries. This is due to several factors, including:

• The age of the victims and their expected lifespan if they had survived
• The number of dependents in their families
• Other economic factors

In aviation insurance, the strict liability principle applies, meaning claims must be paid without disputing fault in the incident. Additionally, victims or their families can file a class-action lawsuit through their attorneys to seek higher compensation.

Impact on Aviation Insurance Premiums

Arman further noted that this surge in claims could drive up global aviation insurance premiums.

He pointed out that in recent years, large aviation insurance claims have been relatively rare. The last major incidents were:

• Lion Air Flight 610 (2018)
• Ethiopian Airlines Flight 302 (2018)

Both crashes resulted in over 500 deaths.

“Since then, there haven’t been many claims until 2023. But after that, we saw accidents involving Azerbaijan Airlines, Jeju Air, American Airlines, and others, which collectively claimed nearly 300 lives. I believe this will influence a rise in aviation insurance premiums,” Arman said.

FAA Reports on Recent Learjet 55 Crash

The Federal Aviation Administration (FAA) reported that the most recent plane crash involved a Learjet 55, which took off from Northeast Philadelphia Airport around 6:30 PM local time before crashing less than 6.4 km from departure.

The flight was headed to Springfield-Branson National Airport in Missouri. Initially, the FAA stated there were only two people on board, but later revised the number to six.

Crash Site and Witness Accounts

The crash occurred just a few blocks away from Roosevelt Mall, a three-story shopping center in a densely populated area of Philadelphia. The site is surrounded by rows of houses and shops.

Videos circulating on social media show the plane descending rapidly, followed by a large fireball explosion.

Eyewitness reports indicate that:

• Debris struck vehicles
• Burning wreckage scattered across the streets
• Photos show charred and severely damaged cars

A CBS interviewee described hearing a loud rumble while driving in the area, followed by an explosion. Emergency teams immediately responded as residents gathered near the scene.

Previous Mid-Air Collision with Black Hawk Helicopter

Notably, this crash occurred just two days after a major collision between a commercial aircraft and a Black Hawk helicopter in Washington, D.C., which reportedly killed all 67 people on board both aircraft.

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For young couples who are in love and want to manage their finances together, here are some effective financial management tips. Many couples struggle with overspending, which can lead to financial difficulties in their relationships.

Here are 7 financial management tips for couples:

1. Be Open About Each Other’s Financial Situation

According to Moneydoneright.com (Monday, November 2, 2024), financial management begins with honesty and transparency. Understanding where each partner stands financially helps create a solid plan for the future.

Be open with your partner about your current financial status, including:

• Spending priorities
• Debts and financial responsibilities
• Monthly financial obligations

It is also a good idea to share how you handle financial matters. Are you a saver? Do you try to save a specific amount every month? Are you an impulsive spender? Based on this information, it will be easier to determine a financial strategy that works for both of you.

2. Share Financial Responsibilities

If the relationship is moving towards a serious commitment, decide on financial roles:

• Who will manage the monthly budget?
• Who will be responsible for paying the bills?

Managing money as a couple is about organization and trust-building. There are many financial responsibilities to handle, such as car repairs, date nights, and more. The best way to manage finances as a couple is to be actively involved in the process together.

3. Decide Whether to Have a Joint Savings Account or Not

This is often a sensitive topic for many couples. Should you keep your finances separate, or should you have a joint account for shared expenses?

Statistics show that more young couples today prefer to keep their finances separate. Researchers found that this trend is more common among low-income couples, who prioritize having access to their own money over demonstrating loyalty through a joint bank account.

There is no right or wrong answer—you should choose what makes you feel most comfortable. However, once a decision is made, open and honest discussions with your partner about financial motivations are essential.

4. Use Financial Tools

It’s time to identify tools that help maintain financial accountability. If possible, consider investing to grow your savings over time.

Other financial tools can help with:

• Budgeting
• Tracking income
• Managing receipts
• Debt management
• Retirement planning

5. Build an Emergency Fund

Learning to manage money as a couple means planning for unexpected situations. An emergency fund is essential because it helps cover unexpected expenses such as:

• Medical emergencies
• Job loss
• Accidents
• Family financial crises

An emergency fund provides financial security for major unforeseen events that could lead to significant expenses.

6. Track Your Budget

Creating a budget is an important step in managing finances as a couple. However, tracking your budget is just as crucial.

When managing money together, accountability should be a constant focus. Ensure that you:

• Stick to your budget allocation for each expense category
• Monitor any significant financial changes
• Adjust your spending strategy if needed

7. Have Separate Accounts for Certain Expenses

Having separate joint accounts for specific shared expenses is one of the best ways to manage money as a couple.

Create a joint account for essential expenses such as:

• Date nights
• Telecommunication bills
• Vacations
• Purchasing shared items

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By following these 7 financial management tips, couples can build trust, reduce financial stress, and work towards a secure financial future together.

Buying a home is a dream for many people, but the journey to homeownership requires careful planning and financial management.

According to Forbes.com (Tuesday, January 7, 2025), achieving this dream requires well-structured and strategic steps. For many, the biggest challenge is setting aside enough funds for a down payment and other related costs. Here are financial tips for buying a home in 2025:

1. Review Your Financial Situation

The first step is to clearly understand your current financial position. The goal is to determine whether you can realistically afford monthly mortgage payments for a new home or if you should continue renting. Tracking your finances for at least a month helps you gain a more realistic understanding of your expenses.

Start by calculating your income, including salary, investment returns, and other sources of revenue. Then, carefully record your expenses for at least a month.

2. Reduce High-Interest Debt

High-interest debt is a major obstacle to saving for a home. If you have credit card debt, prioritize paying it off, as it typically carries very high interest rates.

If you have multiple debts and are considering consolidation, speak with a lender about available options. Debt consolidation can help you pay off debt faster.

Another alternative is the debt avalanche method, where you pay off the debt with the highest interest rate first while making minimum payments on other debts.

3. Set a Savings Goal

Setting a savings goal helps you stay focused and motivated. Start by determining the price range of the home you want to buy based on your income. Then, calculate the required down payment. A good target is 20% of the home’s price.

According to the National Association of Realtors, most first-time homebuyers make a down payment of 6% to 7%, with closing costs ranging from 3% to 6% of the home’s purchase price. Ideally, aim to save 25% to 30% of the home’s price to cover the down payment, closing costs, and other expenses.

4. Create a Budget

Creating a budget gives you more control over your money, prevents unnecessary spending, and helps you reach your goal faster. A good budgeting strategy is to follow the 50/30/20 rule:

• 50% for needs
• 30% for wants
• 20% for savings and debt payments

After tracking your expenses, review your monthly spending and identify areas where you can cut costs. Start with non-essential expenses like dining out, subscriptions, or memberships you no longer use.

5. Increase Your Income

Consider increasing your monthly income, as this can significantly boost your savings. Ask for a raise, especially if you have been working harder than usual.

If that’s not an option, look for higher-paying job opportunities at other companies. You can also earn extra money by selling unused items.

6. Automate Your Savings

Automating your savings helps you stay on track consistently. Set up automatic transfers from your checking account to a dedicated savings account. This ensures that saving is a priority and reduces the temptation to spend money elsewhere.

Look for apps and tools that offer innovative ways to save, such as analyzing your spending patterns and automatically setting aside money for you.

7. Explore First-Time Homebuyer Programs

First-time homebuyer programs make homeownership more affordable for those who have never owned a home before. If you’re a first-time buyer, you can take advantage of these programs designed to make homeownership more accessible.

These programs typically require a lower down payment, offer better interest rates, and provide other benefits, such as closing cost assistance.

Options include federal first-time homebuyer programs, low-down-payment conventional loans, and down payment assistance programs. The U.S. Department of Housing and Urban Development (HUD) website is a great place to start exploring your options.

8. Invest Wisely

While saving is essential, investing can help your money grow faster. If you want to protect your capital, opt for low-risk investments such as certificates of deposit (CDs) or fixed-interest accounts that guarantee returns if you don’t withdraw funds for a set period.

High-yield savings accounts (HSA) offered by online banks are also a good choice, as they offer interest rates of up to 5%. With compound interest, your money grows over time.

9. Stay Motivated and Track Your Progress

To stay motivated and on track, regularly evaluate your progress toward your savings goal. Review your savings plan frequently and adjust it if necessary. Keep yourself focused by breaking down your long-term goal into smaller steps.

Use budgeting apps or spreadsheets to track your progress. You can also visualize your goal using charts and graphs. Tracking your monthly progress helps you stay accountable for your spending.

By following these steps, you can begin your journey toward homeownership in a more structured and efficient way. Saving for a home requires time and commitment, but with proper planning, your goal can become a reality sooner than expected.

Entering the new year, many people usually reflect on themselves and set financial management resolutions. Managing finances is not just about saving more but also about setting financial goals for the year ahead, organizing finances more realistically, and maintaining discipline in financial management.

The Finance Director of SeaBank Indonesia, Lindawati Octavian, shares practical financial management tips that can be applied by new workers and young families to organize their finances in 2025 in a healthier and more planned manner. The first tip for achieving financial health is to set clear financial goals. Define what you want to achieve this year.

Setting goals can start from short-term to long-term objectives. Goals can begin with simple things such as saving for a vacation to major plans like buying a house or preparing a retirement fund. Use the SMART principle (Specific, Measurable, Achievable, Relevant, Time-bound) in setting financial goals to make them easier and more realistic.

The second tip is to manage finances realistically. Being too idealistic can make financial planning merely a dream. This can be avoided by taking several steps, including budgeting by calculating monthly income and expenses, including small things like transportation costs.

Apply the 50/30/20 rule, where 50% of income is used for needs, 30% for wants, and 20% for savings or investments. Also, ensure you have an emergency fund amounting to at least 3-6 months of expenses as a safeguard against unexpected situations, such as job loss or health issues.

Prioritize Debt Repayment

The third tip is to review existing debts from 2024. Proper debt management can prevent excessive financial burdens and help optimize fund usage based on the type of debt and interest rates. Steps that can be taken include listing all outstanding debts, along with their interest rates and due dates.

Prioritize paying off debts with the highest interest rates. This can reduce the overall interest burden and accelerate the repayment process. Pay more than the minimum amount due. This will help reduce the principal debt faster, thereby decreasing the interest burden that needs to be paid.

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