“He said that in your 20s it is very important to start
investing. But in fact, saving is hard to do, let alone investing?
"You need big capital and you can lose too, later you
can't YOLO (You Only Live Once..."
When you hear the word investment, what comes to mind is
difficult, fear of loss, or later when it's established.
Suggestions and invitations to invest early in the end are
only discussed and considered, especially when income is not yet established or
there is no income. How do you want to invest? It's hard to save money :')
Investments need to be planned early
The main challenge for young people in their 20s for
financial problems is how do they spend it on spending new experiences,
compared to saving for long-term needs.
Your 20s is a transitional age from adolescence to
adulthood, where you have full authority over yourself, have a job and can
support yourself, have no dependents or installments and want to enjoy the
fruits of your work effort happily and buy new experiences.
Wrong? No...
But don't forget that mature and established finances need
planning from an early age. The fundamental reason why the younger generation
still struggles with money management is lifestyle fulfillment.
Dream Warriors living an unending lifestyle. Don't utilize
the YOLO idea to support a hedonistic way of living.
The goal of having a solid financial plan must be pursued,
and you must consider the future. "I've created financial planning and
left my income for savings at the bank. That means you can say it's an
investment, right?
Saving is not the same as investing and there are still many
misconceptions about this.
The difference between saving and investing
An illustration of the difference between saving and
investing is more or less like this.
Even though both can help you achieve a better financial
future, the goals of saving and investing are different.
Saving is the process of saving money for short-term
needs/goals that can be cashed out or withdrawn at any time.
For example, you want to go on holiday abroad next year.
Periodically you will save at the bank with a certain amount of funds according
to the departure target. But in the middle of the road you have an emergency
need and need additional funds, you can withdraw or withdraw your savings at
any time.
Saving in a bank has
a low risk with low profits as well. If your goal of saving is to expect
greater growth in the value of your money, you should consider making an
investment.
The process of investing involves using the money you
already have to increase your profits. The risks are higher because the profits
are higher. But don't worry, there are many of investment products with low
risk levels for the cautious investor type.
Saving money is different from investing if you may access
it or withdraw it at any time. Investments are long-term financial plans that
require time and effort to cash out. However, investment as a form is highly
beneficial for your future.
Why are young people advised to invest?
1. Creating new sources of finance
Investing gives you the opportunity to add value to your
money. When your investment fund earns interest, that interest will be your
profit. It's different from saving, where your money will just stay in the bank
and not add value.
2. You can chase dreams
Dream of owning a house? Starting your own business?
Investment can help you to realize your dream goals.
3. You make your money work for you, not the other way
around :)
The funds you invest will generate additional money from the
interest generated. From this additional income, you can "enjoy" life
doing the things you want, for example traveling, continuing your education or
capital building a business.
4. Preparing for old age
You will eventually need to cease working and retire. Of
course, you need to have a backup plan in place for case your productivity
declines. When you retire, you will be able to take advantage of investment
funds and perks if you start investing early. Your money will get more and more
valuable over time.
Myths and realities
around investing "I want to attempt investing, but they claim it's
difficult and fraught with scams, resulting in losses of up to millions of
rupiah.
So go ahead and do it.
Many beginners are still hesitant to start investing because
of various issues and perceptions that are actually not necessarily true. Even
though investment is here to offer convenience in managing one's financial
situation and anticipating unwanted things in life. As long as we understand
the instruments, as well as the profits and losses generated in investing, you
don't need to worry about getting started.
Some myths about investing:
Myth 1: Investment must have large capital
In fact, investments can be made from 100 thousand! Mutual
funds can be an initial investment choice as a beginner.
Myth 2: Investing is a big risk
The level of risk in
investing can be adjusted based on the type of product being invested. The
higher the risk taken, the higher the profit that can be achieved.
Myth 3: There are many scams in investing
There is a lot of news in the media about fraudulent
investments that end up being fraudulent. As a novice investor, you are advised
to choose an investment manager that has been proven and registered with the
OJK, so that it has legal and statutory validity.
Don't believe if you are promised "high profits in a
short time", because investing is marathon and long term.
Myth 4: Starting to invest is complicated
No…
Now many Fintech (Financial Technology) companies and
Marketplaces offer features to make investing easier. It is enough to invest as
little as possible and can withdraw it at any time. In addition, there is
already a lot of information about investing, starting from the types, how to
start, the pros and cons, myths and facts, as explained by Mimin. You just need
to change your perception and believe that what you invest will provide
profitable results.
How to start investing?
Each age level has different needs and financial demands.
Therefore, the selection of investment products must be carefully carried out
according to age and needs.
As a novice investor, you can do these three things:
1. Develop long-term plans and goals
By knowing when you want to make a profit, you will know how
much you have to spend and what type of investment product you have to take.
2. Set the amount of funds you want to invest
The percentage of funds that can be issued for investment
ranges from 20% -40% of the income earned. You have to make sure that your
primary needs are met before making an investment.
3. Choose investment products according to your financial
goals
Choose investment products with risks according to your
character and abilities and funds.
According to Fellexandro Ruby, a young entrepreneur and
mentor for Kejar Mimpi, there are 2 types of investment for beginners for the
millennial generation:
First: Investment in real assets or real tangible assets
outside the financial sector such as gold, land, to properties such as
apartments for lease back.
Second: Financial assets in the financial sector where there
is a commitment to bind assets to securities issued by the issuer. Examples
include stocks, deposits, bonds.
This type of investment is suitable for young people
1. Gold
Until now gold investment
is still a popular investment in society. Gold is also suitable for investors
who have a preference for low risk factors and are resistant to inflation. When
compared to other investments, gold investment is classified as an investment
that is easy to liquidate.
2. Periodic deposits
Investment deposits are suitable for novice investors who
are still looking for low risk of loss. Even though it looks the same as
savings, deposits have a certain period of time so that the money saved cannot
be withdrawn before maturity. The interest given by the bank is also usually
higher than ordinary savings, so it can be a profitable investment option.
3. Mutual funds
You must have often heard of this investment because it is
suitable for investors with small capital, which can be made starting from 50
thousand. In mutual fund investment, the investment funds collected from
investors will be managed by the investment manager. The risk of loss or gain
will be shared equally among all investors.
The size of the profit or risk you get depends on the type
of mutual fund you choose. So make sure you choose the right investment company
from the start, where the company has a reputation and can be relied upon.
4. State Securities
Known as government securities (SUN), this investment has
become one of the investment instruments that is quite attractive to the
public. SUN not only provide benefits for the interests of the State, but also
benefit investors or buyers, both individuals and companies.
This investment is suitable for those of you who have small
capital and don't want to take big risks. There are also many types such as
Indonesian Retail Bonds (ORI), Retail Saving Bonds (SBR), Retail Sukuk and
State Savings Sukuk. To buy it, you have to update the ordering schedules.
5. Stocks
Investing in stocks is proof that you are investing in a
company. You don't need big capital to invest in stocks and have proof of
ownership of a company or business entity.
As the owner of the company, you will get regular dividends.
Even though it has unlimited profit potential, the risk in investing in stocks
is very high because stock prices can go up or down at any time.
6. Properties
Investing in property requires enormous capital because it
requires maintenance and high tax costs.
But behind the large capital, this investment promises big
profits because land and house prices always increase every year. In addition,
property has a low risk because the movement of property values is not as
sensitive as stock investment. Unfortunately, properties cannot be liquidated
quickly, as it takes time to sell them.
Choose investments wisely and according to your needs and
abilities. Investment doesn't have to be all about money either. According to
Fellexandro Ruby, there are two concepts of financial planning. The first is
defense, where we prepare investment provisions and self-protection for the future
with the income we have; the second is offense, where we look for ways to
improve skills or choose investments so that income increases.
If you want to know
more and learn about financial planning and investing strategies in your 20s,
you can check out the Kejar Mimpi podcast with Fellexandro Ruby on the Kejar
Mimpi application.
The Chasing Dreams application can help provide your daily
inspiration through inspirational articles and videos. You can also watch
webinars that present experts discussing topics ranging from lifestyle,
psychology to careers.
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