What kind of good investment?

  Investment is the activity of placing money or capital on an instrument in a certain period for profit. Investments can provide higher returns than saving in the bank.

Beginners are often beset by confusion to start investing. A good way of investing for beginners or newbies, whether stock investment, gold investment, mutual fund investment, bond investment, and so on must have goals and benefits.

What kind of good investment?

Know the purpose of investment

1. Get a profit

The main reason why someone invests is to get a big profit. You can get this benefit when you invest long-term.

It is undeniable that the greater the value of the investment, the potential for profit is more and more. Therefore, you need to be consistent and disciplined in setting aside a salary or money for an 

2. smooth business

For an entrepreneur, investment can be used as a tool to ensure the smooth running of his business. Investments can be sold or disbursed at any time to increase business capital, such as gold investments, mutual funds, stocks, bonds, and others.

If you benefit from business activities, some can be relocated to buy or increase investment capital. So, money is turned to productive activities and the value of its wealth does not just disappear.investment budget. That's called a good investment. 

3. Guarantees for old age

A good way to invest for beginners next is to aim as a guarantee in old age. Long-term investments will give you maximum results, such as stock investments, property investments, gold investments, and others.

Hold to sell it even if the price goes up with the potential of tens of percent or down. Long-term investments over 5 years can give you greater profit potential, hundreds of percent, even thousands of percent.

4. Diversification of investments

Investing is the most appropriate way to diversify your assets. For example, stock investment.

When you benefit from stock investments, these profits can be used as capital to buy other investment products, such as deposits, gold, mutual funds, properties that offer a lower level of risk.

Diversification helps you maximize assets and minimize losses from a single investment product. If the performance of one product or investment instrument is not good, there are still other investments that can be expected.

Understanding the Benefits of Investing

1. Increase the value of wealth

A good investment should know the benefits. One of the benefits of investing is that it increases the value of wealth.

For example, you are investing in gold. The potential price of gold in the long run can rise high. When you buy gold in 2010 it is still around Rp 400 thousand per gram. But within 10 years or 2021, the price of gold has been around Rp 900 thousand per gram.

The value of your wealth automatically increases. This is thanks to long-term investment.

2. Training in managing finances

The ability to manage automated finances becomes better thanks to investments. You become wise to sort out expenses so that the allocation for investments is met, so the value continues to increase.

In practice, you can allocate 10% of your salary or income each month to investments. 40% for daily expenses, and to pay down debt set aside 30%.

While the remaining 20% can be used for the portion of emergency funds and charity or kindness, each 10%. This percentage can be changed according to your needs. Importantly, the amount of expenses is no more than the income each month. 

3. Train yourself to downsize

Inevitably, you are also forced to downsize because of investments. For example, if once 60% of the salary was used to meet daily needs, it is now cut to 40% or 50%.

The rest can be allocated for investments or savings, as well as emergency funds. A good investment will open your mind that a young age is time to work hard, save, and save.

It's not a spree that will only make the old days miserable. With investment, you will have stable finances and a prosperous life in the future.

4. Free from debt

Life is frugal and unsanctioned can make you free from debt. Because, your salary or income is only to finance priority or primary needs and investments, not according to passions or desires.

5. Can be used as an emergency fund

Although there is already a special allocation for emergency funds, sometimes the amount is not enough to finance urgent spending. With investment, you can cash it out at any time without deductions or penalties if at any time you need fast funds.

Investments that can be used as an alternative to emergency funds, including mutual fund investments, and gold investments.

Invest Immediately Before It's Too Late

Seeing the benefits of such a large investment, one of which is to prepare for the future, immediately make an investment.

Choose the right investment instrument that fits your risk profile. And prepare investment funds according to financial capabilities and investment goals to be achieved.