According to the predictions of the International Monetary Fund (IMF), one-third of the world's economy will likely experience a recession in 2023. Even though Minister of Finance Sri Mulyani recently confirmed that Indonesia will not face an economic recession, we all still need to have a strategy to deal with it.
Tips from Annisa Steviani for Dealing with Global Recession Warning
1. Start with financial planning
According to certified financial planner Annisa Steviani, the main foundation in money management is good financial planning.
"Actually, since the pandemic, we have been able to feel the impact on the economy. It's 2023, meaning it's been running for the third year. Financial planning if it's done well, we shouldn't have to worry too much. Because it is the main foundation, it is best when being done without waiting for uncertainty or a global economic recession.”
"The problem is that many people do not realize the importance of financial planning, so they only do it when uncertainty is in sight or has even occurred," explained Annisa in an interview with Bank Jago in February 2023.
2. Reduce expenses and cut budget
Annisa encourages everyone to no longer delay managing their finances to know exactly how much income and expenses are in a month. And, if you have to cut a budget, you can know where to cut.
In addition to financial planning, Annisa also suggests that saving money doesn't need to wait for the moment and should be done whenever possible. For those who haven't done so, the moment of economic uncertainty can be a starting point.
"If we haven't done budgeting yet, economic uncertainty makes us realize that everyone's income is not fixed. Anyone can get a layoff or have their monthly salary cut. Saving money can start from reducing non-priority expenses, such as subscriptions. Apart from that, for example, you can also check whether your internet quota and electricity usage have been excessive. If you have wifi at home, maybe you don't need to buy too much internet quota for use outside the home. Just buy enough,” said Annisa.
To find out which expenses can be reduced, according to Annisa, everyone must be disciplined in recording expenses. If possible, record all expenses, because there may be expenses that seem small but after adding them up they turn out to be quite large, such as tipping for ojek drivers.
Some people may not be used to reducing expenses. However, if the situation is urgent, then like it or not we have to be able to adapt. Even for this, Annisa has tips.
“If income does not decrease, expenses can be reduced slowly. Afternoon snacks, for example, are reduced. But if the salary is cut, then there is no other way except for a drastic cut. Actually, it all depends on intent. It could work if you really want to reduce expenses.”
Furthermore, from Annisa's observations, many people are easily tempted to do impulsive buying so that they end up buying something that isn't really necessary. In response to this, Annisa advises to be fully aware before making a decision to make a purchase. Is it necessary or not? Should you really buy it or not?
3. Have savings
Apart from reducing spending, another way that can be done in uncertain situations, including an economic recession, is to save.
"Saving is really important, prioritize it for an emergency fund. Especially if your job is not stable, you must save more. Prioritize the habit of saving first so that it becomes routine. Saving can also be combined with investment. For those who already understand investing, can do it right away. To have more savings and investment, you can find a side job and if you get a bonus or THR, it's best to set it aside to speed up your emergency fund savings."
Finally, 1 tip from Annisa that is no less important, Jagoans.
“We have to realize that wherever life is uncertain. What must be changed is the unwillingness to start. We must be willing to start from the bottom, from financial planning. It would also be better if you have several sources of income, both husband and wife work. Instead of going into debt, it's better to find a way to increase your income," Annisa concluded.
Financial Planning with Jago
Financial planning doesn't have to be difficult with Jago. Separate expenses and savings using the Jago Pocket. You can create 40 Pockets where each Pocket has its own account number.
Building emergency funds can be done in the Saving Pocket. Paying monthly bills can be with the Spending Pocket. Do you have many expenses? Separate them into different pockets. Budgeting is easy and practical right from the Jago application on your mobile phone.
You also don't need to record expenses manually. With Jago, spending via the Jago Pocket or Jago Debit Card is automatically recorded and categorized into the appropriate type of expense. To see a summary of expenses for a month, you can use the Spend Analysis feature. From here, it will be easier to make decisions regarding expenses that can be reduced in the future.
Let's make sure you are jago at financial planning to have peace of mind and stay calm when facing various situations, including a global recession. The Jago application can be downloaded here for those who don't have it yet.
