Editor’s note
- This is why Indonesians struggle to save!
- A high salary does not necessarily guarantee saving
- The phenomenon of money running out quickly halfway through the month
- Money in accounts considered freely spendable
This is why Indonesians struggle to save!
Why do many Indonesians struggle to save? It turns out that this is not due to a low salary, but to unconscious financial habits.
These habits include recurring small expenses and the illusion that there is “still time” to save.
A common problem is that people spend money first and save the rest, often leaving nothing behind.
This is exacerbated by the belief that all money in an account is freely spendable, whereas there should actually be a specific purpose for it.
A high salary does not necessarily guarantee saving
Some people with an average salary can save, while others earn a high salary but run short of money every month.
The biggest problem is not the size of the salary, but how the money is spent. The phenomenon of running out of money quickly halfway through the month
Many people feel relieved at the beginning of the month when they receive their salary, but suddenly notice that their money is gone halfway through the month, even though they haven’t bought any luxury items.
Repeated small expenses, such as buying coffee every day (20,000 rupees), can add up to large amounts (more than 600,000 rupees per month) and deplete their savings.
The habit of postponing saving at the beginning of the month with the argument “I’ll save later” often leads to no saving at all, because the money is already almost gone by the end of the month.
Money in accounts considered freely spendable
Many people use the formula “income minus expenses equals savings,” which means they spend money first and save the rest, which rarely happens.
The brain tends to view all the money in the account as spendable, whereas in reality, accounts should be kept for living expenses, bills, transport, and savings. The difficulty with saving does not lie in a lack of individual discipline, but rather in a money management system that does not help them maintain discipline. ***tok
