The end of the year is the time when we make new year's resolutions, including financial resolutions. Have you made your resolutions? Have you ever wondered how to make the right resolutions and how we can actually accomplish them?
How to Decide What Should be Your New Year's Resolutions
We love making New Year's resolutions, but how do we define resolutions? Amalia Khoirun Nisa, QWP, family financial planner and founder of the Mommenkeu Project, has the answer.
“Resolution is a kind of what we hope will change in us. We don't need to make too many resolutions, what is more important is what concrete actions we will take to keep them. A financial resolution such as wanting to be free from debt, is actually enough," said Amalia who is often called Lia when interviewed by Bank Jago Syariah.
Then, how can we decide the right new year’s resolutions?
“The right financial resolution is different for everyone because of different financial phases. Right for one person doesn't mean right for another person, it can't be generalized. However, everyone can decide what is the right financial resolution for them by referring to the financial planning pyramid, which consists of three phases, namely basic wealth protection, wealth accumulation and finally wealth distribution,” Lia explained.
In managing finances according to sharia principles, Lia emphasized that balancing the affairs of the world and the afterlife is just as important.
“Money has many purposes, not just meeting the necessities of life. Money can be used to support religious activities, donated to charities, for zakat and many more. For these, we must not forget to allocate a budget every month.”
Overcoming Obstacles that Often Arise
It's not uncommon for us to hear resolutions that are not successfully kept. So we don’t experience the same thing, what should be done? According to Lia's observations, obstacles and temptations arise from ignorance.
“Many people don't know where they came from, where they are going and where they have been. For example, people who claim that they save more than last month. But more is how much? There is no data. We need to know where we are coming from. We’ve had enough emergency fund. We are now free from debts. Then, what's next?"
How to Accomplish Financial Resolutions
Believe it or not, Jagoans, financial resolutions for the new year can be kept by doing only one jago way. "Take actions, take real steps, that’s all you need to do," Lia said spontaneously.
“To know where we are starting from, we need to check financial health, check the financial planning pyramid. To know where we are going, of course we can start fixing unhealthy things, and raising levels in the pyramid. It's also important to be able to know where we are. This can be done by recording cash flow and tracking progress. For cash payments I record them manually and for non-cash payments I use Jago."
"I can allocate funds for each need to each Jago Pocket that I have created. The nice thing is, every transaction is recorded automatically by Jago. To analyze cashflow, you can use the Spend Analysis feature. If you want to save money in Jago’s Saving Pocket, you can use the Set Target and Autosave features. Autosave is really important to ensure automatic saving so that your savings continue to grow. We can also track progress whenever we want. If you want to pay installments or recurring transactions, just use the Plan Ahead feature."
Lia also suggested asset diversification as something to consider, if there are several financial goals to be achieved in the new year.
“Of course asset diversification depends on what the financial goals are and how long it takes to achieve them. For short-term financial resolutions that will be achieved within 1 or 2 years, you can save money in sharia savings, such as in the Jago Syariah’s Saving Pocket. For long-term financial resolutions that take more than 5 years to accomlish, money can be put in a sharia deposit or invested in sharia mutual funds."
Regarding asset diversification in Islamic banking institutions, Lia has 1 additional tip. “In addition to being secure and legal, choose the logical ones. Promising huge profits with absolutely no risk is illogical.”
Even though it brings new enthusiasm and optimism, 2023 will also be faced with an uncertain situation. Regarding financial planning to deal with this situation, what needs to be done?
"Actually the Quran discusses uncertainty. The purpose of financial planning is to save some and use some money. Therefore we don't have to wait for a recession to plan finances. Indeed, financial planning should be part of everyday life. It's just that planning for a recession needs to be more carefully thought.”
Furthermore, Lia asked us not to worry and be afraid.
“It is natural to have anxiety and fear. But they won't get us anywhere. Instead, they will affect our wellbeing. The way to overcome the negative feelings that arise is to focus on action. If you have heard rumors that there will be layoffs at your company, don't wait until you get laid off. Look for a new job immediately, focus your energy here," Lia concluded.
Jagoans, ready to accomplish your financial new year's resolutions? If you don’t have resolutions yet, it is time to make them. Don't forget about the useful tips from Lia above and use Jago Syariah to help you manage money better.
Jago Syariah can be downloaded here for those who don't have it yet. PT Bank Jago Tbk is licensed and supervised by the Financial Services Authority (OJK), Bank Indonesia and is an LPS guarantee participant. Jago Syariah is in accordance with the DSN MUI fatwa and supervised by the Sharia Supervisory Board (DPS).
