Investment is not an alien thing for everyone. Basically investment is an activity to invest capital in a company or an asset with a high value with the aim of gaining multiple profits later on.
That way, investment is often associated with only people who have worked and only high income earners can invest. Yes, maybe that was a long time ago that was clearly different from the present. Now, the millennial generation has been able to invest early.
Indeed, in fact, there are still not many millennia who are familiar with investment because among them are still heavy leaving high lifestyles such as shopping to hang out in cafes. Even though investment today does not require large capital, just $ 10 alone, millennial can invest.
Although the investment capital is small, but if it has started since young, you can feel a lot of benefits later on. However, this is certainly the right type of investment.
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Benefits of Investment
1. The value of assets and wealth will increase
Investment can automatically increase the value of assets and assets owned. The assets referred to here are not limited to buildings or other properties, but money held or stored as investment funds can also be classified as an asset. Assets in this form if set aside for investment will certainly grow more and more. The development of assets is certainly directly proportional to the development of wealth owned.
2. Freedom in financial matters
Merdeka is synonymous with freedom. Being financially free means being financially free. It is said to be free because it can support daily needs with possessions without having to work hard.
Assets owned if invested can bring money that can fill the coffers of the account more and more. From these benefits, it can be used to meet needs without the need to worry about the financial conditions that they have.
3. Avoid inflation
Inflation can be said to be a natural thing that happens in every country. Every country must experience inflation even at different levels. Indonesia itself can be said as a country with a fairly high inflation rate. Inflation almost has a significant influence on the economy, especially in terms of buying and selling, because it can weaken people’s purchasing power. For this reason, investment is one way that can be taken to avoid inflation.
4. Setting Up a Bright Future
Entering old age, even though the desire to work still exists and wants to be fulfilled, but the physical is no longer able to fulfill it. In old age automatically the income earned will be reduced compared to the productive age.
So investing since young is a way to help prepare a brighter old age. Investments planned and started now will certainly help meet future needs.
Types of investments that can be tried
To start investing, of course you must first understand the types of investment. This is done to determine the investment that is suitable and in accordance with the millennial generation. There are several types of investments in Indonesia:
Gold can be said to be the easiest investment and the most classic thing. Investment in gold can be in the form of precious metals, gold jewelry, gold bars and gold vouchers (digital gold). However, the disadvantage of this investment lies in its storage.
Storage of gold investments is recommended using Safe Deposit Boxes provided by certain banks. If you do not use these services, storage can also be done independently by using a personal safe to avoid things that are not desirable.
If you have money but want to save it for a long enough period of time, you can use deposits. Deposits are actually classified as savings but have a certain period of time based on an agreement with the customer. Usually the deposit period is from 3.6 to 12 months. Deposits have three types that can be chosen according to the ability of generation milennials, namely time deposits, certificates of deposit and deposits on call.
Stock is a sign of ownership in a company. The shares themselves are only in the form of sheets of paper issued by the company as a sign of capital participation and the percentage of ownership of the company. The risks and benefits of shares have a proportional nature, namely high risk and high return.
The higher the risk of a stock, the higher the profit that will be obtained. For this reason, if you want to try investing here, you must have the ability to analyze the types of shares and the accuracy of the analysis of the placement of capital for investment..
Tanah dan properti lainnya dapat dikategorikan sebagai investasi yang bersifat klasik, karena keberadaannya sudah ada sejak dahulu. Investasi di bidang ini cukuplah mudah, karena hanya dilakukan dengan sistem yang sederhana. Jika ingin berinvestasi di bidang ini tentunya dibutuhkan modal yang cukup besar pula, meskipun tidak dapat dipungkiri bahwa keuntungan yang didapat juga lumayan besar.
5. Mutual funds
Mutual funds are one of the most well-known investments with the smallest and easiest risks. Mutual funds are a place to raise funds through other parties that will be realized in securities, in the form of stocks, bonds or other securities. The funds needed for this investment are relatively cheap according to the bank that issues mutual funds. Minimum funds invested between $7-40.
Bonds or debt securities can be said simply as investment loans. Investing in bonds is the same as we provide loans to owners of bonds. Bond issuers can be government or companies.
The form of bonds is almost the same as stocks, which are in the form of agreement paper containing the nominal amount and the percentage of interest provisions. This bond has a certain period of time. At the end of the agreement period, the company / country that issues the bond will return the loaned capital and interest as the profit of the bond buyer.
7. Forex Trading
Forex trading is an investment concept by trading foreign currencies. Forex trading is indeed still heard and done by most people, because investment in this field has a very high risk. Even though the benefits obtained are the same. Another advantage of this forex trading is that there is a short period of time.
8. Foreign Exchange
Foreign exchange has often been heard in the world of economy and finance. Foreign exchange is actually the currency used as a means of payment in international trade, such as dollars, euros and pounds.
The principle of investing in this field is actually almost the same as forex trading, only those traded are currencies that are recognized as a means of paying for international trade. Foreign exchange can be bought when prices are down and sold when prices are rising, and the difference can be an advantage for investors.
The disadvantage of this type of investment is the volatility of currency exchange rates which can be influenced by several factors, such as the political or social conditions of a country.
Become a Smart Investor
The important thing that millennial needs to know in investing is be a smart investor and don’t just go along with other people. Determine the purpose of investing first, then select the type of investment that suits your needs. In addition, to avoid losses still control the investment made.