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7 Millennial Financial Products, You Must Know!

The population of the millennial generation in Indonesia is now the second largest after Gen Z. Currently there are 25.87% of the millennial generation or around 69.38 million people (source: Databoks). What's interesting is that the lifestyle of the millennial generation is very different from previous generations. They were present when technology began to develop so that everything could be done quickly and practically.

This also tends to make the millennial generation have a "You Only Live Once" lifestyle or often called YOLO. YOLO is then used as an excuse to choose a consumerist way of life so that many millennials have difficulty managing their finances. In fact, if you have the ability to manage your finances well, the YOLO life principle will not bring losses. How to? Here are 7 (seven) financial products that millennials should have from now on.

1. Emergency Fund

Considering the current conditions which are full of uncertainty, you need to set aside money for emergency funds. An emergency fund is the first and most important financial goal that you must fulfill first before you move on to other things or goals. Set aside a portion of your salary—according to your ability—to this emergency fund post. Save it in instruments that are liquid and easy to access, for example savings, money market mutual funds, deposits, or precious metals.

This emergency fund really must be "idle", it must not be rotated, invested in high-risk instruments, or used for anything other than emergencies. Once used, make a commitment to return the emergency funds until they reach an adequate nominal amount, namely a minimum of 3 months of regular expenses.

2. Savings Account

Some time ago, there was a lot of discussion on social media about savings interest rates being only 0%. In fact, this has been implemented for a long time, so we should not save too much money in this financial product. However, that doesn't mean it's not important to have a savings account.

You can use savings account products as a medium for financial traffic, receiving salaries, transferring money, allocating money for various expenditure items, and so on.

3. Health Insurance and Life Insurance

No one can avoid disease, therefore, health insurance is important. You can start by having BPJS Health. In terms of coverage, BPJS Health is very capable with affordable fees. If necessary, you can also add private health insurance according to your needs and abilities.

Apart from that, some millennials also need life insurance. Keep in mind that not everyone needs life insurance. Life insurance is important for those who are the backbone of the family, especially the sandwich generation.

Calculate your insurance needs carefully so that the premium contributions are commensurate with the benefits you will receive. Don't be lazy about reading the insurance policy because you can learn comprehensive information about the insurance product, including information about premiums and claims.

4. Credit Card

This card can be used for transactions quickly and practically, anywhere, anytime. Unfortunately, there are still many people who consider credit cards as "savings" where they can withdraw money first and save later or consider them to be "free money".

This perception is wrong and must be corrected. Use a credit card so that transactions can be carried out practically, according to your needs, don't overdo it. Using a credit card applies interest which will be an additional financial burden later. Pay bills before they are due in full, if possible. It's fine if you want to use the promo or reward. But always remember, adjust it to your needs.

5. Digital Wallets

Digital wallet financial products are currently very popular among the millennial generation. Apart from being practical, the benefits offered are also quite attractive and are considered "safer" compared to credit cards. Apart from that, many digital wallet managers provide cashback, discounts and various other forms of promotions for various types of shopping.

You can allocate a certain amount of funds to a digital wallet to use for shopping. For example, you can set aside 10% of your salary in this shopping account.

6. Online Investing

Nowadays, investing can be done very easily online. Starting from deposits, buying gold, mutual funds, shares, crowdfunding, to crypto. However, you need to remain alert, offers of tempting returns, security guarantees, confidentiality of personal data, and various other risks lurk in online investments.

Get to know various investment products, choose those that suit your needs, conditions and abilities. There's no need to force yourself to follow trends because what suits other people may not suit you. Carry out careful analysis so that your investment decisions can be mature and wise.

7. Pension Funds

The average millennial generation often ignores the important role of pension funds. Even though it feels like it's still quite a long time before millennials reach retirement age, it's important to start preparing now.

When we retire, we no longer have an active income while the necessities of life remain. Because people are no longer productive, the only thing that can be relied on is passive income. To build this passive income, we need time to prepare. So, don't delay because retirement funds are one of the things you have to plan ahead of other financial goals.

Those are some of the financial products that the millennial generation needs to prepare. You can start to prioritize according to your needs and abilities!

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