Image: Shutterstock/Melimey
Financial hardship might happen to anyone, no matter how much salary one gets.
According to Indonesian businessman Tung Desem Waringin, as cited from Financial Revolution, there are two ways to decrease outcome. They are:
1. Simplifying your life
There are ways that we can do this. First, by delaying going and have fun until your passive income is enough to buy consumer goods. For example, if the price of consumer goods is Rp 3 million then buy it when your passive income has reached the number. Second, by decreasing the level of consumer goods you buy. For example, by buying secondhand mobile phone instead of the new one.
2. Delaying your enjoyment
There are three levels of this.
The first level, the worst, which is you buy consumer goods with debt. For example buying phone with credit card. Tung Desem says that debt is not always bad if the thing we buy is used to increase our productivity. For example, you use the car you buy by credit for open a rental service so it gets you more income.
The second level, tolerable, which is you buy the goods when you have the money instead of creating debt. For example, you buy a Rp 5 million phone by waiting for the allocation of 10% of your incomes to reach that number before you buy it. Tung Desem suggests people to allocate 10% of their income for this kind of enjoyment.
The third level, good, is when you are waiting for your return of investment to be sufficient to pay for the thing you want to buy. For example, when you want to buy a phone which you have to pay for Rp 300,000/month and you only buy it when your return of investment has reached the number every month. Shortly, you buy the thing using the return of investment.
The last level, the best, is when you pay by cash the goods you want to buy it using your passive income. For example, you buy your Rp 5 million handphone when your return of investment has reached the number so you can pay for it by cash.
So, can youdo it?
(brl/red)
