Managing Eid Allowance: Use the 50-30-20 Method to Make It Last

JAKARTA – Eid holiday allowance (THR) is one of the most anticipated benefits for workers ahead of Eid celebrations. This additional income is often used for various purposes, ranging from Eid shopping, mudik (homecoming), to sharing with family. However, without proper planning, Eid THR can be depleted in a short time.

Vivin Arbianti Gautama, Chief Customer Marketing Officer of Prudential Syariah, stated that THR should be viewed as a blessing that needs to be managed with clear objectives. “We should view THR as a blessing that is entrusted to us, so it needs to be managed with clear objectives. There are at least four priorities: religious obligations such as zakat (alms) and charitable giving, Eid celebration needs, future requirements through savings or investment, and family protection,” explained Vivin.

According to her, financial planning is not merely about accumulating money, but also protecting assets already owned. She added that Eid is not only about celebration, but also ensuring the family’s financial condition remains secure after the festive period passes.

Vivin explained that one simple strategy that can be applied in managing THR is using the 50–30–20 formula. The 50-30-20 method is a straightforward approach to managing finances and household budgets. In this method, after-tax income is divided into three main expenditure categories to create a more balanced financial situation.

According to Forbes, the 50-30-20 method divides income into three categories. Fifty per cent is allocated for basic needs (needs) such as housing costs, food, transportation, utilities, and minimum debt payments.