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The Importance of Having Financial Goals for Fresh Graduate

Jul 11, 2020
3 Menit

Having clear financial goals is an obligation for everyone, including fresh graduates who have just started working. A clear financial goal will affect how you plan your finances, such as estimating the minimum wage that you should negotiate during your first job interview. It will be easier for you, in the long run, to sort your priorities while doing financial planning. Therefore, here are several financial goals that should be prioritized, especially for fresh graduates.

Emergency Fund Allocation
This financial goal is often neglected, specifically by fresh graduates who have just joined a workforce. Apart from your daily necessities, you also must allocate your income to an emergency fund. The emergency fund is aimed at unpredictable needs.

At the very least, you should allocate 10% of your monthly income as an emergency fund. For example, if your monthly income is Rp5 million, then a minimum of Rp500 thousand should be transferred into your emergency fund account each month. Do not use your emergency fund when there are no current emergencies. Having an emergency fund can make you feel more secured while doing daily activities. Having an emergency fund is also a sign that you have become an adult and wiser in managing your own financial planning.

Pension Fund Allocation
There is nothing wrong to start creating pension fund allocation as your financial goal, even though you have just started working. The sooner you start preparing your pension fund, the more money will be collected in the future.

If 10% of your main income has been allocated for the emergency fund, then try to allocate 20%-30% of your main income for your pension fund. It requires a larger percentage since your pension needs will be quite a lot. When you are allocating money for two separate special funds, be it an emergency or pension fund, always prioritize the emergency fund.

The pension fund can be a protection plan for your retirement that you can arrange from the early stage, even more so if you have worked right after graduation without any dependencies. This is an opportunity for you to start saving and be more prepared to fund your living expenses when you are no longer productive.

House Fund Allocation
Owning your own house is not just about a spur of the moment. A house is a primary need that you can prepare from a young age, especially knowing that buying a house is not cheap. It definitely requires a long time for you to collect the money to buy a house. House is not just for living, it is also an important financial goal since it can be utilized as a valuable asset for investment.

A type 21 or type 36 minimalist house can be considered as a starter home, as these two units are among the most affordable. Don’t forget to do a thorough observation before you buy the house. Find one that suits all your needs and wants. Check the location, building materials, facilities, price as well as the payment scheme so you can start preparing the budget.

Insurance Allocation
Insurance is not a priority for most people, especially young adults who think that they are well-immuned from sickness. In fact, insurance is an important layer of protection for your financial state. There is various insurance that you can choose, but you should prioritize life insurance and health insurance.

For your information, life insurance is different from health insurance. Life insurance is a protection that covers the financial loss if the insured passes away, whereas health insurance is used whenever the insured is sick or suffers injuries from an accident. The premium is determined by the insurance company that you use. Several trusted insurance companies offer affordable insurance premiums, some are as low as Rp5 million per year.

Insurance is a must-have in your financial planning after you graduate because you are responsible for your own wellbeing from now on. Should there be an issue regarding your health, it will negatively impact your job. It is possible that this will affect your income. Moreover, your family will have to pay for your care and treatment.

PermataBank offers various Bancassurance products for life and health protection with affordable premiums and vast benefits. You won’t have to worry about your insurance allocation anymore. 

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