The saying "money is getting harder to earn but easier to spend" seems to reflect a reality increasingly felt by the public today. While earning a living becomes more competitive, household expenses keep climbing.

Bhima Yudhistira, Executive Director of the Center of Economic and Law Studies (CELIOS), explained that the difficulty people face in earning income is evident from the consistently slowing growth rate of individual savings.

This decline, he said, suggests that people no longer have enough money left to save, as most of their income is consumed by daily necessities. The rising number of layoffs (PHK) also serves as another sign of how hard it has become to generate income.

“The growth of personal savings continues to slow down. Last year, more than 70,000 people were laid off, and this year the number could rise to 280,000,” Bhima told detikcom on Wednesday (June 18, 2025).

On the other hand, public spending remains high, as shown by household consumption still accounting for over 50% of the Gross Domestic Product (GDP). This indicates that people are spending a lot, causing their money to run out more quickly.

“Household consumption still makes up more than 50% of the economy. So there’s a mismatch — jobs are hard to find, income is declining, yet spending remains high,” he explained.

He also pointed out the rise in consumer debt, particularly through online lending platforms (known as pinjol), as a sign that people’s money is quickly depleted and they need to borrow just to meet their basic needs.

“With job opportunities drying up, the number of online loans has risen significantly. That’s a clear sign of unhealthy financial conditions. Rising credit use can also indicate consumerism,” he said.

Agreeing with Bhima, Piter Abdullah, Executive Director of the Segara Research Institute, noted that this trend of struggling to earn while spending freely is reflected in the surge of layoffs and weakened purchasing power, which directly impacts small and medium enterprises (SMEs).

“Making money has always been tough. But now, there are more economic factors making it worse — increased layoffs, declining investment, and fewer job opportunities. In essence, earning money has never been easy,” he remarked.

He added that with the current economic downturn, it’s not only difficult to find employment, but even starting a business doesn’t guarantee profit.

“The economy is in a downturn. Jobs are scarce, and even running a business doesn’t necessarily lead to success,” Piter continued.

He further noted that household expenses have been rising, with many new spending categories that didn’t exist in the past. That’s why many people feel that while earning money is difficult, it disappears faster — although, ultimately, it comes down to individual lifestyle choices.

“With limited income, our expenses are rising and becoming more complex. For example, we never used to pay for internet, but now it’s a basic need. So yes, the situation is increasingly complicated,” he concluded.