Friend, have you ever felt that the monthly money always runs out even though it hasn’t reached the middle of the month? Or maybe you often buy things because of FOMO and then end up regretting it? Well, if the answer is yes, it could be that you are trapped in a money trap.

The term money trap refers to habits or spending patterns that seem trivial, but can make financial conditions worse without realizing it. This money trap often stalks young people because of the fast-paced lifestyle and the desire to follow trends.

In fact, realizing the existence of this money trap early on can be an important key to managing finances more wisely. By knowing common financial traps, you can start avoiding them and divert funds that were leaking into more productive things such as investment.

Let’s recognize and be aware of the types of money traps that often ensnare young people!

1. The ‘Must Always Update’ Lifestyle

Friends, in this social media era, the pressure to look cool is great. Many end up trapped in the money trap because they want to always look “on trend”. Starting from buying the latest outfits, hanging out in hit places, to subscribing to streaming services that are actually rarely used. All of this unconsciously sucks a lot of funds from your wallet.

In fact, these lifestyle expenses can be diverted to savings or investment. That doesn’t mean you can’t enjoy life. But it’s important to know your limits and needs. Don’t let you work hard just to fulfill momentary desires. This type of money trap is subtle but the impact is real if left unchecked.

2. Overuse of Paylater and Credit Cards

Paylater and credit card features are tempting. You can buy now, pay later. But be careful, buddy. This is one of the most common money traps that many young people fall into. Especially if there is no careful payment planning, debt can accumulate and cause headaches in the future.

The habit of using paylater for consumptive needs can disrupt your monthly cash flow. Instead of feeling helped, you will be trapped in a debt cycle that is difficult to get out of.

Check again, are the items purchased through paylater really needed? If not, it means you are in a money trap. Be wise in using this payment facility.

3. Lack of Emergency Fund

Many young people think that emergency funds or insurance are not important because they feel they are still healthy and productive. But this is often a money trap. When an emergency occurs such as an accident, illness, or job loss, without an emergency fund or insurance protection, you can experience a severe financial crisis.

This money trap occurs due to lack of financial education and lack of long-term planning. By setting up emergency funds and protection, you can avoid unwanted financial surprises. Remember, buddy, the future is something that must be prepared from now on.

4. Small but Routine Expenses

Often money traps come not from big expenses, but from small things that are done continuously. For example, buying coffee every morning, snacking online because you are hungry, or subscribing to applications that are not really used. At first glance it is small, but when added up it can be a big number at the end of the month.

To avoid this money trap, you can start recording all daily expenses. That way you know where your money is going. Monthly evaluations can help you realize leaks and fix them. Money that was used for unproductive expenses can be diverted for more useful things.

5. No Long-term Financial Plan

Young people often fall into the money trap because they don’t have a long-term financial vision. Life is only for today without thinking about the future. In fact, the sooner you have a plan, the lighter your efforts in the future.

Start by setting financial goals, whether it’s buying a house, preparing a retirement fund, or business capital. By having a goal, you will be more motivated to manage your money properly and avoid various money traps that lurk.

Money traps can arise from anywhere and often go unnoticed. But once you realize its existence, this can be a turning point to change the way you manage your finances. Don’t let your hard work run out for things that don’t provide long-term value.

One of the wise steps you can take is to start investing in digital gold. Through platforms like Treasury, you can start investing from only Rp5,000. It’s easy, safe, and can be done anytime.

Treasury is also officially registered with BAPPEBTI and a member of ICDX, so you don’t have to worry about security. Let’s start diverting funds from money traps to assets that can help you achieve a bright future with Treasury!