Tips for Allocating THR Money Correctly

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1NEWS – Getting holiday allowances (THR) is like getting a windfall. Most people will go crazy wearing it just for shopping.

“If the THR is already in the account, the first thing to do is make a list of allocations for expenditure items,” said Prita Ghozie, CEO and Chief Planner of ZAP Finance.

Then, how to design the right expense post? According to Prita, THR should be prioritized for paying zakat and Eid needs, such as buying food, salaries and allowances for workers at home, and going home. The amount of funds for this need can be budgeted at 50 percent of the THR.

But, according to Prita, for daily food needs, it should be taken from the monthly salary fund. The reason is that these expenses are routine. Meanwhile, buying new clothes and recreation can be taken from THR. It is undeniable, buying new clothes seems to have become an obligation before the holidays.

“If you don’t need it, you don’t need to buy new clothes,” he said.

THR can also be used to pay obligations aka consumer debt.

“Pay off consumer debt so that the balance of credit card debt and KTA (credit without collateral) can be repaid immediately,” said the winner of a master of commerce degree with double major banking & accounting.

Although it can be used to pay off consumer debt, there are signs that must be obeyed.

“Try to also set aside about 10 percent for emergency funds and 10 percent for investment,” he said.

So, Prita suggested prioritizing debt with high interest rates, such as credit cards.

In Indonesia, there are still some community members who maintain the tradition of giving “angpau” to celebrate Eid. According to Prita, the funds for the distribution of angpau can be taken from THR. The amount of the placement of funds depends on the habits and values ​​of each family. Prita said that, in general, the placement of funds for the need for distribution of angpau is a maximum of 10 percent of the THR fund.

“If you want it to be bigger, the allocation for other posts can be reduced,” he said.

Some people who don’t want THR to just evaporate will use it to invest. According to Prita, this is fine as long as it is adjusted to the expenditure items that have been made.

“Keep adjusting to when these funds will be used,” he said.

Some people also have tricks to “save” THR by investing. Prita agrees with the move. According to him, THR funds should be set aside to invest at least 10 percent. But, for those who are still single, they have more flexibility in regulating THR.

“So, try to set aside at least 20 percent of the THR funds for investment,” he said.

Prita added, the right investment choices are mutual funds or gold products. Although THR funds can be used to invest, he still provides one condition, “Adjust when these funds will be used,” he said.

No matter how much THR is received, without proper management, the money will only disappear without a trace. Plan the use of THR wisely so you don’t regret it after Eid. Here’s how you can do it:

1. Make a list of expenditure items and their allocations.
2. Immediately separate funds based on their allocation as soon as the THR is disbursed.
3. Prioritize the use of a debit card as a means of payment rather than a credit card.

Proportion of THR fund allocation:
1. Consumption: 50 percent
2. Investment: 10–20 percent
3. Emergency fund: 10 percent
4. The rest is to pay debts


Editor Tubagus Guritno


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