The idea of achieving financial freedom has resonated across generations — and for Gen Z, that vision could be the strongest. Yet in Indonesia, many Gen Zs face significant challenges: fierce job competition, high unemployment, inflation, rising living costs and limited access to quality education. So, is financial freedom for Indonesian Gen Z merely a dream for the future?

The answer is definitely not. Like generations before them, Gen Z can achieve financial freedom — with thoughtful planning and consistent discipline. The commitment to pursue and achieve future financial freedom through a solid financial plan is the key to attaining lasting financial stability.

What should be prepared?

Start planning your finances today. First, calculate your future financial needs and goals — and determine how long you plan to take to achieve them. Estimate your monthly and annual living expenses, then multiply them by your desired time frame. Don’t forget to factor in Indonesia’s average annual inflation rate. The result will give you an estimate of the total funds needed to achieve financial freedom. Remember, financial freedom doesn’t necessarily mean stopping work or relying entirely on your savings and investments. It should also include support from passive income — either from investment returns or other productive activities that still generate money. Ultimately, financial freedom is the ability to sustain your lifestyle without depending solely on active income.

Second, manage your income and expenses with discipline. Financial discipline is the foundation of stability. Avoid the trap of lifestyle inflation, where spending increases in line with rising income. With prudent financial management, you will have more opportunities to allocate a greater portion of your earnings toward savings and investments.

Keep in mind the principle of the power of compounding — the exponential growth of money when your investment returns are reinvested over time.

Third, invest your funds wisely — in line with your risk profile, financial plan, and goals. Don’t let your savings sit idle without generating higher returns. Invest in instruments that match your risk tolerance and financial objectives, and don’t forget to diversify your portfolio — across stocks, bonds, mutual funds, and other financial instruments. With the right strategy, your asset value can grow significantly over time.

As an illustration, if your monthly income is Rp7 million and you invest Rp3 million each month with an average annual return of 5%, your funds could grow to around Rp465 million in 10 years. This amount could be even higher if invested in other instruments such as stocks. Over the past decade (2014–2024), certain blue-chip stocks have recorded average price appreciation of around 7–8% per year, potentially growing your investment to about Rp529 million after ten years. Meanwhile, government bonds — offering an average annual return of 8.2% — could raise your funds to roughly Rp550 million over the same period.

Another key to successful investing is to increase your investment portion as your income grows and to choose instruments with return potential that matches your risk profile — which may also change over time.

Fourth, set aside emergency funds and have proper insurance. Even though some investments are relatively liquid, they should not replace emergency savings. Always maintain an emergency fund for unexpected situations such as job loss or urgent medical needs. Also, complement your plan with traditional life insurance to keep your financial strategy protected from major risks that could disrupt your financial stability.

Fifth, monitor and evaluate regularly. The journey toward financial freedom is not always smooth. Therefore, it is essential for investors to consistently review the investment portfolio over time. Evaluate your investment performance periodically and stay informed about economic, social, political, and other dynamics that may affect your returns.

Invest with Mandiri Sekuritas

Mandiri Sekuritas is one of Indonesia’s leading securities companies, with more than 25 years of experience. As a securities company, we assist individual customers — from Gen Z, Millennials, to Gen X — ranging from beginners to seasoned investors who have achieved financial freedom and are now enjoying passive income from their investments.

Mandiri Sekuritas offers Growin’, an investment platform for individual investors that can be accessed via growin.id or downloaded from the App Store and Play Store. With Growin’, customer can start investing in stocks, mutual funds, and bonds, including Indonesian government bonds. Growin’ also provides broad access to daily investment information, enhanced by DIMA, an AI-powered virtual assistant that helps investors access relevant insights and make faster, more informed investment decisions. Being a Growin’ by Mandiri Sekuritas customer also gives you access to a Relationship Officer/Manager, who will assist in reviewing and monitoring your investment performance over time.

Start your investment journey today to achieve financial freedom within your desired timeframe. Access Growin’ through the web or application, or through Livin’ by Mandiri to invest in stocks easily. Financial freedom is not a dream — it is the result of strategy, discipline, and the courage to start early.