financialtreat – will explain about How to Overcome Finances Ala Reliable Financial Advisory Tips that you will get in the following article. let’s look at this article carefully!
There are so many people who want to live a prosperous life in the future, if you are one of these people, you can follow some Financial Advisory Tips so that your goals can be achieved.
If you want to achieve these expectations and goals you are in the right review, there are a lot of people who don’t know how, this first way you can invest some of your money.well this time we will provide a way and Financial Advisor Tips to start investing properly and smoothly.
The Right Way to Invest for Beginners
You can apply this method so that your investment is not in vain, especially for people who have never invested at all, how to follow the steps below:
Start As Early as Possible
The time factor plays an important role in investing. The younger you are when you start investing, the lighter the preparation of your needs and the achievement of your goals in the future. Want to start planning an investment?
Try the Investment Simulation feature on the webpage. Adjust the length of investment time, the risk profile you have, the initial capital, and the investment commitment per month that you plan. With this feature, hopefully the investment plan will be more targeted.
Define Specific Investment Goals
Every investment should be determined by its purpose. Some common investment objectives include preparing education funds, retirement plans, buying houses/apartments, buying vehicles, renovating property, tourism, accelerating mortgage/KPA repayments, or preparing pension funds.
If you have the services of a financial planner or advisor, you can consult these plans to discuss the timing and instrument of the investment. If you don’t have a financial advisor, it doesn’t matter either, really, just choose one dream or goal that you think is important and makes you excited to start investing.
How to Overcome Finances: Determining the Time Period and Target Funds Required
Determining the investment period will affect the investment amount and the type of instrument chosen to achieve the required funds. The shorter the investment period, the more the nominal that must be allocated is also usually relatively larger, the choice of instruments will also fall on safer / more stable or low volatility.
Example: You, aged 25 years old, set an investment goal to go to Umrah, amounting to 30 million Rupiah. If you want to achieve this goal in 5 years, for example through Money Market Mutual Funds, you can start with a capital of less than IDR 500,000 to be set aside every month.
However, if you want umrah to be faster, for example 3 years, then you must be willing to allocate more than RP500,000 using the same instrument. Again, timing is an important factor, yes! Determine your specific timeframe and target funds before you start investing.
Allocate Funds for Investment Consistently
Ideally, you can allocate 10% to 30% of your monthly income for investment. Make sure the money used to invest does not interfere with daily needs, debt installments, or emergency funds. Always remember that investing not only offers profits, but also comes with risks. Do not let when the risk occurs, survival is disrupted.
For novice investors, first start with a percent of the fund allocation that makes you comfortable, then maintain consistency. Make investment activities a pleasant habit. In line with the increase in income, knowledge, and confidence in investing, you can increase the investment allocation on an ongoing basis.
How to Overcome Finances: Starting to Invest in an Investment Way is not straightforward for Novice Investors
The capital market is indeed synonymous with stock products. However, did you know that there are two other choices of capital market products, namely Bonds and Mutual Funds
For novice investors who are still not confident in transacting stocks, the solution to start investing in the capital market can be indirectly, namely by buying Mutual Fund products. Through Investment Managers, investors have a variety of choices ranging from Money Market Mutual Funds, Fixed Income, Mixed, to the riskier ones, namely Stock Mutual Funds.
After you understand and are more confident about Mutual Funds, you can move on to direct investment, securities (Retail Bonds and Stocks). Furthermore, you can even start your own real business and start joining a business partner that suits you.
How to Overcome Finances: Learn Aspects and Alternatives
Before deciding to invest in one instrument, you need to pay close attention to investment aspects such as the level of risk and return. For example, if the risk profile in your investment is quite low, then make sure the volatility of the issuer or instrument you are going to choose falls into the conservative category. If you plan to achieve your investment goal with a projected return of 7%, then learn whether this instrument should be able to meet your expectations.
Don’t forget the expert’s projections about future economic and business development combined with your investment goals. There’s a lot to learn? Relaxed! Remember yes, that investment should be fun. For beginners, the key is to start immediately, just start first on conservative instruments or with a small nominal.
Choose Financial Asset Investment Supervised by OJK
With the increasing public interest in investing, many financial institutions have also emerged in Indonesia. How to choose the right partner to invest? For the capital market industry, all financial institutions must be registere and supervised by the government, in this case the OJK.
Make sure you drop the choice on a company that has an official license from the Financial Services Authority (OJK) and is registere and supervise by the OJK. You can always get the latest list of legal securities companies on the official OJK website, here. In addition to the legality aspect, also understand his track record, leadership, and experience in running a capital market business in Indonesia. Choose a trusted one!
How to Overcome Finances: Don’t Put All The Eggs In One Basket
For novice investors, choosing just one instrument seems to require a lot of understanding, let alone learning many instruments to diversify? Calm. Everything doesn’t have to be done together anyway. All can be done gradually, one by one.
For example, those of you who have a conservative risk profile, choose to start investing with Money Market Mutual Funds. After 3 months of regularly making investments every payday, you begin to understand how the investment works and moves.
Then you start to be confident, stepping again into the diversification of its first instrument, namely Government Bonds (SBN).
After regularly in Mutual Fund and SBN instruments. Now you are more courageous to step into stock investments.you start to diversify both. By studying the LQ45 index on the official website of the Indonesia Stock Exchange.
After learning how to analyze the fundamental ratios of some companies. You start choosing BBRI and ICBP as their first blue chip stocks. This is your process! Not short, but in accordance with the risk profile and consistent willingness to learn in investing in the capital market.
Potential Profits should be in line with Potential Risk.
When you start investing, you will want to get a big profit in a fast time, right? Eits, but don’t be easily tempte by the form of investment that provides high returns, buddy Mapan! High-profit investment offers are usually accompanied by high risks.
For a simple example, stock instruments have a higher profit potential than Money Market Mutual Funds. However, the risk of stock price fluctuations is much greater. Than the potential fluctuations of Money Market Mutual Funds which tend to be very small.
The potential profit should be in line with the potential risk of an investment product. So, if you get a profitable investment offer with minimal risk, immediately be vigilant, yes!
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Conduct Periodic Supervision to Monitor Investment Performance.
If you have chosen an investment product. You must remember to evaluate the performance of the product from time to time. For stock investment, you can do this by comparing the current stock price with the price when you bought it.
Is it an increase or even a decrease? You can also compare the stock with the market reference price or the Composite Stock Price Index (JCI). Do the stocks you have had positive growth compared to JCI in the same period? After being evaluate.
You can determine a strategy that is more suitable for the conditions of investment performance that you have. Thus the article about How to Overcome Finances Ala Reliable Financial Advisory Tips. Hopefully it will be useful and thank you.