Investing isn’t same with saving. Almost people want to make safe their money by saving. They save their money in the bank and hope getting interest. With it, value of their money will increase along with the time. Nowadays this way isn’t effective anymore. The fact, inflation is higher than interest we got. Now average inflation, especially in Indonesia, is 4,9% per year (macro assumption) even more. Just check our interest rate, average bank gives us interest in 1% – 2,25% per year. The calculation haven’t included the administrative fee etc. Oh God, it isn’t so profitable.
Now we must think more wise about our financial. Investing is one of many wise ways to manage our financial. We can invest our money in real investment or financial investment. It will give us more return than saving. In real investment, we can make a business and try to be entrepreneur. We can do that if we have enough time and financial capital. If we don’t have any time, so financial investment is the right choice. So many financial product which be offered by bank, can be our choice. We must choose it carefully and suit with our necessary.
The first step before become the investor is making sure about our reserve fund. it will be used for emergency fund. so it’s so important to prepare first. we must have it about 3 – 6 times our monthly expenditure. We can keep it in gold or in our account. Just make sure that its liquid so we can take it anytime.
The other step, we have to know about investment risk, our investment purpose and how long we will invest. Keep in our mind that investment is TOOL to safe our money. About investment risk, we often hear the quote “high risk high return, low risk low return”. It works when we start to invest. We can invest our money in stock so we will get high return but remember that the price of stock is so fluctuated, it can change any time even hour. it’s called high risk. We can invest in fixed deposit that give us fixed rate but we just get low return.
Then, arrange our investment purpose. what is our investment for and how long will we invest ? if we want to invest in short time so we have to choose low risk investment and if we are in long time, high risk will be chosen. we know that stock is so fluctuated but it disposed increase year in year. so don’t worry to choose that.