Tips for Managing Finances for New Workers and Young Families

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.