THR Money Could Be a Lifeline During a Crisis, Here Are Seven Strategies for Managing It

THR money could be a lifeline during a crisis; here are seven strategies for managing it.

Jakarta, VIVA – The Tunjangan Hari Raya, or THR, is one of the moments most awaited ahead of Idul Fitri. This extra money is usually used for a range of needs, from Lebaran shopping, giving gifts to family, to mudik.

Not a few people spend THR immediately on discretionary needs during Lebaran. In fact, if managed wisely, THR can be an opportunity to strengthen one’s financial position.

One way is to set aside part of the money to form an emergency fund. If the strategy is right, THR can not only be used for short-term needs but can also provide financial protection when facing unforeseen situations.

Here are several ways THR can be used as emergency funds, as reported by Viva on Thursday, 5 March 2026.

1. Determine the priority of THR usage

The first step is to determine the priority of THR usage. Make a list of needs that are truly important, such as family obligations, zakat, or essential needs during Lebaran. By setting priorities from the outset, you can avoid using THR for things that are less important.

2. Set aside emergency funds at the outset

One common mistake is saving from money left after shopping. A more effective approach is to set aside emergency funds immediately after receiving THR. For example, you could set aside 20 to 40 per cent of THR for an emergency fund before using the rest for other needs.

3. Separate funds in a different account

To prevent emergency funds from mixing with shopping money, you should separate them into a different account. This helps you maintain discipline so the funds aren’t easily used. Additionally, storing emergency funds in a separate account also makes it easier to monitor the growth of your savings.

4. Limit discretionary spending during Lebaran

Lebaran is often associated with various additional expenditures, such as buying new clothes, giving hampers, or serving a variety of special dishes. However, you still need to control spending to avoid excessive levels.

5. Use the budgeting division principle

To make THR management more structured, you could use the budgeting division principle. For example, dividing THR into several posts such as Lebaran needs, savings, emergency funds, and charity. This method helps ensure that each need has a clear share without interfering with one another.