In some discussions, the question of how someone is said to be able to be in debt is often a conversation. Because, many individuals who starting a new level of life, for example just working, just married or have children, often confused whether it’s time for them to owe long-term, such as buying a house or car.
Owning assets such as your own home and car is indeed a necessity and pride, but the readiness to repay long-term debt, 5 years to 20 years, often raises doubts. No wonder then, the advice of parents, “No need to buy anything, if you don’t have your own money“Used as a weapon to avoid debt.
Actually, if you are a rich man or a rich kid, debt is the last option. But not everyone is born rich or from a rich kid. So if you are not a child of the “sultan”, then debt, installments or credit is the fastest way to own your own home or vehicle.
Debt may, but don’t make hasty decisions. Remember a few of these things:
1. Installments must not exceed 30% of income
So that financial health is maintained and you do not have trouble paying installments per month, then make sure your installments are not excessive. In financial planning, the ideal debt installment ratio is less than 30% of income. Assuming 50% of salary is used for living expenses, 10% for saving, and 10% for other needs such as alms, then you will have no trouble paying installments per month.
So, know your abilities and don’t be tempted to owe too much. Remember, that mortgage debt, buying a car, or business debt is a long-term debt that will affect your financial condition for years. Anticipation that can happen in the future will be better, right?
Also read: Tips for Paying Credit Card Bills to Make Your Debt Loads Even More Light
2. Installments must not interfere with emergency funds
What is the meaning of installments when disturbing emergency funds? You have to be able to differentiate between fulfilling momentary desires and what you really need. Emergency funds must continue to exist because of uncertain global conditions such as this requires us to be prepared for whatever will happen.
Remember, the ideal amount of emergency funds you need to have is 3 to 6 times a month. Even in pandemic conditions like this, there are those who suggest that the emergency fund they have must be increased to 9 times to 12 times the total expenditure a month.
Also read: How to pay off debts that have accumulated quickly and safely
3. Discipline to pay.
If you have decided to go into debt, then that means you must have a commitment to repay on time and pay it off. Do not wait until your payment is delayed until the interest is greater and you are more difficult to pay off.
Also read: Tips for Living a New Normal Life Without Debt Twists
4. Debt is not for consumptive matters.
In financial planning, there are debts called good debts and bad debts. Examples of good debt are productive loans such as working capital loans. While consumer debt which is considered good is the KPR. For these types of debt, even though they still have to consider their ability to pay, they can take precedence.
While the types of debt that are considered bad debt are consumer debt, such as credit card debt and unsecured loans (KTA), which do not have an impact on increasing income. So it would be better, you avoid the types of bad debt, especially if it is not for urgent important needs.
If you have more money left over, than to repay consumptive debt, it’s better to be allocated to invest. Besides being able to add passive income, investment can make you better prepared for the future.
Now, you can invest in mutual funds or gold, with a variety of interesting features that will make it easier for you to reach your financial goals in the future, such as the Gold Installments and Auto Buy features.
Mutual fund, in Bukalapak there is BukaReksa which provides more than 20 money market mutual funds, fixed income mutual funds, mixed mutual funds, and stock mutual funds. You can invest with a very small nominal starting from Rp. 10,000, you know. The minimum purchase amount is far below the average minimum funds for purchasing mutual funds in general. The purchase process is free of charge. Register to become a mutual fund investor here or start mutual fund investment here!
Gold, the price of gold has continued to rise lately, even reaching record highs of more than Rp1 million per gram. You can make gold investments more affordable, because buying and selling of gold can start from 0,0001 grams or more or less Rp100.
Activate it too Buy Automatically Open Gold which makes it easy for buyers to buy gold at Bukamasmas automatically on every transaction. Activate the Buy Automatic Gold feature and fill in the gold purchase nominal according to your ability.
Whereas the features Gold Installments you can use to buy gold now and pay by installments every month. With this feature, you can get the price of gold now and lock it, so you don’t have to worry about gold prices going up and down. Come on, start investing in gold here!