Millennials are said to have not been able to save money for their future. According to the MagnifyMoney survey, the average savings held by young people born in 1981-1998 was only 2,400 US dollars or Rp. 35.5 million (exchange rate of Rp. 14,800 per US dollar). This number is considered insufficient. Experts say that you must have funds for at least 3 to 6 months of life as an emergency fund and also save for a bright retirement. It's still not too late for those who haven't started saving funds so that your future doesn't experience financial problems.
1. What must be saved for retirement? Fidelity, a US pension fund planner, recommends that at the age of 35, you must have the equivalent of twice your annual salary. For example, if a year's income reaches 50,000 US dollars, then on the 35th birthday must have around 100,000 US dollars. To achieve that amount, Fidelity recommends saving 15 percent of your annual income. "If you want to live a luxurious life in retirement, you might want to save more, but if you are satisfied with hanging out at home while retiring, you can save less," he added. And if it's still years or decades away from retirement age, it's okay not to leave 15 percent of your current annual income. However, make sure you have trained this as early as possible.
2. What has been saved for an emergency? Experts recommend that you save an emergency fund that can cover at least three to six months of living expenses. This emergency fund can help if you are exposed to financial problems. Financial manager Suze Orman even suggested to be more prepared than just 3-6 months. "You need a lot of money that makes you feel safe. Not only six months, or even just three months. You better have eight months to one year (reserves)," he said.
3. How do you start preparing? If you are in your 20s or 30s, your money still has decades to grow. "The younger you are, the more time you have to make up for lost time," Murphy said. It's always profitable to start early, if you are in your mid-30s and have a small amount of savings, don't panic. At this point, the best thing you can do is set goals. For example, trying to multiply your income by working extra or other things. If you are not sure the best way to catch up, don't be afraid to ask experts. "There is a lot of information that can be obtained through consultation with companies, through financial experts, and so on," Murphy said. Finding and saving for the future in particular, supposed Murphy is like making a doctor's appointment because this is something people don't want to think about "So they tend to postpone it. However, the longer you delay, the harder it becomes. So, start early," Murphy said .
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