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Avoid These 3 Financial Traps

Oct 02, 2020
3 Menit

Are you guilty of having habits that negatively impact your overall finances? If you are, then you must immediately re-assess how you manage your finances. Avoid habits that can turn into financial traps, or habits that only give short term benefits with prolonged disadvantages. 

Unfortunately, a lot of people are already hooked on these kinds of habits. For you to not become one of the victims of these financial traps, here are several habits that you must avoid to ensure your financial security. 

Buying Products in Installments
Many people buy items with an installment system, especially now that many credit cards offer installments with low interest rates. It's actually not a problem if the product that you purchase using installment is a part of your primary needs, such as a house for you to live. A house is included in the primary needs because it can be a productive asset. You don’t have to pay rent once your house installment is paid. Your retired life will be more secured since you already have a house. Another example is a laptop which used to support your work. 

In reality, people use installment to buy items that are not included in their primary needs. For examples, branded sneakers and designer bags that cost millions of rupiahs, the newest smartphone, or other items that you don’t really need. You will feel elated once you receive these items, but the problem will arise by the time you have to pay the installments for months or years. It’s possible that you will be unable to manage your finances and set aside money for savings.

Postponing Pension Funds Allocation
Most young adults fail to see the importance of starting a pension fund as soon as possible. Though in fact, a pension fund is a crucial tool to pay for your daily needs when you are no longer actively working, from medical expenses, house maintenance, and other unexpected expenses. 

If you are planning to live a wonderful retirement life without having to worry about money, then you should start managing your finances by thinking about your pension funds allocation. Start as soon as possible while you are still in your productive years as your pension funds determine your quality of life in the future.

Buying a Vehicle when You Don’t Need It
Having your own vehicle surely increases your mobility. You no longer need to be in a crowded public transportation or to be in a long queue, you can now travel comfortably. However, the urgency to have a private vehicle is debatable, especially when your house or workplace is near a capable public transportation system. Moreover if the mileage is rather short.

If it’s still possible for you to take public transportation, don’t hesitate to take this choice. By doing so, the budget for buying a vehicle can be allocated for other urgent expenses. Having a private vehicle means additional expenses for maintenance, tax, and fuel. Therefore, forcing yourself to buy a private vehicle will only bring you to the depth of a financial trap.

Buy a vehicle once you are more prepared. One of the main indicators is when you no longer have any debts or installment to pay. You can also buy a vehicle when you have enough money to pay upfront in cash, or at least 50% of the total price.

You can start managing your finances better by opening a specific and separate banking account. Open a new one with PermataTabungan Bebas from PermataBank. More than just a saving account, you can also use the abundance of cashbacks from PermataTabungan Bebas. No need to go to the nearest bank, you can easily open a new account online with the PermataMobile X application.

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