I still remember clearly the moment when I first started working and got a steady salary. It felt like winning a small lottery every month. But after the euphoria subsided, I started to face a big dilemma that almost all millennials seem to experience: what should I do with this money? Save first? Invest? Or should I buy insurance?
Honestly, at first I didn’t think too much about finances. Salary came in, paid for my boarding house, bought good food, hung out every weekend, and suddenly my account balance was close to zero again before the end of the month. This cycle continued to repeat itself until one day I had a small disaster: my laptop was completely damaged. Because I didn’t have an emergency fund, I had to borrow money from a friend. That moment was a wake-up call for me: “Okay, I have to be more serious about money.”
But yeah, where do I start?
1. Saving is mandatory, but don’t stop there
I used to think that saving was the main solution for my financial future. Every month, I put aside part of my salary into a savings account, feeling secure because the balance kept growing. Until finally I realized: money in savings is like staying in an expensive hotel—comfortable, but not growing.
Every year, inflation reduces the purchasing power of our money. The money that is enough to buy a cup of Starbucks coffee today might only be enough to buy an Americano at a food stall in 10 years. So if we only save, we are actually slowly “losing” money.
But make no mistake, having savings is still important, especially for emergency funds. I personally apply the rule of 3-6 months of expenses as an emergency fund. This means that if I need $5,000 to live every month, I must have at least $15,000-30,000 million in savings that is ready to be used at any time.
So, saving is not an investment. It is more of a financial foundation that allows us to sleep soundly without worrying if something unexpected suddenly happens.
2. Investment: A Must-Have Money Machine
After I had an emergency fund, I started looking at investments. At first I was really scared. Hearing stories of people losing money in stocks or getting into fraudulent investments made me hesitate. But after reading and trying it slowly, I realized that investment is not just a “bet” on being rich or poor. It’s about strategy.
I started with something simple: money market mutual funds. It doesn’t require a lot of capital, and the risk is also low. After that, I started learning about stocks, bonds, and crypto (which I finally realized was more suitable for speculation than long-term investment).
From my experience, investment doesn’t always have to look for the biggest return. The important thing is to adjust it to your goals and risk profile. If you are still a beginner and are afraid of losing money, you can start with mutual funds. If you are ready to level up, you can try stocks or ETFs.
But there is one thing to remember: investment is not a shortcut to getting rich. You have to be patient, disciplined, and understand what you are doing. Don’t FOMO just because you see other people making big money.
3. Insurance: Important, But Don’t Just Choose It
Now, this is the part that millennials, including me, often miss. Insurance is like something that doesn’t immediately feel the benefits, so it’s often ignored. Until finally I got dengue fever and had to be hospitalized for 5 days. Total cost? Almost $10,000.
Luckily, my office has health insurance, so all costs are covered. But if not? I might have to sell stocks or take from my emergency fund, which means my finances would be greatly affected.
From there I realized: insurance is not for investment, but for protection. Because in life, we can’t always control what happens. What we can control is how we are ready to face it.
But don’t just buy insurance! Many people are “trapped” into buying insurance products that they don’t actually need. I always use this principle:
- Health insurance: Mandatory. If your office provides it, check whether the coverage is sufficient. If not, find one that suits your needs.
- Life insurance: Important if we have dependents (family, children, spouse). If you are still single and have no one dependent on you? You can skip it for now.
- Other insurance (vehicle, home, etc.): Depends on the situation. If you have assets that are valuable and vulnerable to risk, insurance can be a smart solution.
4. So, Where Should I Start?
For me, the order is simple:
- Create an emergency fund first – at least 3-6 months of expenses. This is the main priority before thinking about investment or insurance.
- Make sure you have basic protection – if you have health insurance from work, double check that it is sufficient. If not, find one that is.
- Start investing slowly – don’t wait for “later” or when you have more money. You can start with mutual funds or blue chip stocks with small capital.
The biggest mistake I made in the past was overthinking and being afraid to start. In fact, the sooner we act, the greater the impact in the future.
Now, I’m not saying that I’m a financial expert or have a portfolio of billions. But at least, I’m no longer living paycheck to paycheck, and I know that if something happens tomorrow, I won’t panic.
So for those of you who are still confused, remember this: there is no perfect financial decision, but doing nothing is much worse. Start small, learn slowly, and don’t be afraid of making mistakes. Because in the world of finance, what matters is consistency, not perfection.