Tips for Managing THR Doesn't Run Out Quickly, From Lebaran Needs to Investments

Bisnis.com, JAKARTA - The Hari Raya allowance (THR) is often a moment awaited by many people ahead of Lebaran. This extra income is frequently used for various needs, ranging from shopping for Hari Raya necessities, sharing with family, homecoming travel (mudik), to additional investments.

However, without careful planning, THR funds can quickly be depleted in a short time. Therefore, managing THR usage wisely becomes important.

Financial planner from Mitra Rencana Edukasi, Mike Rini Sutikno, explains that THR can essentially be viewed as a ‘13th salary’, i.e., additional income outside the monthly wages. The funds are indeed intended to cover the non-regular needs of festive celebrations, as spending during this period generally rises compared to ordinary months.

In healthy financial planning, investment needs are usually drawn from the monthly salary after routine necessities are met. However, if one receives additional income such as THR, the funds can still be used to boost savings or to diversify investments.

‘THR can still be used to add to savings or investments, for example to strengthen a portfolio or diversify,’ he said.

Regarding investment instruments, he said, investors should not immediately focus on a product first. A more important step is to assess financial conditions and determine each individual’s financial priorities.

In the face of global uncertainty, such as geopolitical risks and potential economic slowdown, maintaining financial resilience is paramount. Therefore, before investing, investors should ensure they have an emergency fund first, ideally equal to 6–12 times monthly expenditures. Once this requirement is met, investment can be considered.

However, when investing one should also filter further. He said investors should first determine their financial goals. For short-term goals, such as preparing for marriage within about a year, instruments with low risk such as savings accounts, deposits, or money market mutual funds are preferable.

Meanwhile, for long-term investment goals such as a child education fund or retirement, a wider range of instruments can be chosen, for instance equity mutual funds, balanced funds, or gold. Although gold and equities can fluctuate in the short term, the impact is generally not too significant if investment is carried out over a long horizon.

‘Thus, the choice of investment instruments should be based on three main factors: investment goals, investment horizon, and each individual’s risk profile,’ he said.

Meanwhile, to determine the portion of THR for investment, Mike Rini cites that the first step is to identify the festive expenditure needs. The magnitude of spending can differ for each person, depending on homecoming plans, the number of families visited, and the celebration traditions practiced.

As a practical guide, THR can be allocated to several expenditure categories, for instance 20% for zakat and charity, 20% for consumption or Hari Raya dishes, 20% for new clothing, 20% for home needs or guest preparation, and 20% for savings or investments.