5 Tips to Start Investing for Beginners
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Netgenz - Business Tips | Investment is now starting to become a way of life for residents. A consumptive life attitude can spur someone to fail to manage their finances properly. Therefore, investment is an option that can be taken for young employees so that they can manage their finances. It is well known that investment is an activity to provide capital to get multiple benefits in the future. Compared to saving money independently or in a bank, investing clearly brings certain advantages. This was said by Lecturer of Management at the Muhammadiyah Malang (UMM) Campus, Chalimatuz Sa'diyah. Also, read How surveysay to make money online.
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1. Several investment options that can be taken
Chacha, a close call from Chalimatuz Sa'diyah, said that there are several types of investments that can be implemented. The first is an investment in the real sector such as land, buildings, rice fields, and gold. While the second is an investment in finance such as stocks, bonds, and mutual funds.
"Each investment has advantages and disadvantages. When investing in the real sector the value will continue to increase, but some investment instruments in the real sector such as buildings and land require a long time to be disbursed. Meanwhile, when investing in the financial sector the investment value is uncertain. But the investment can be withdrawn at any time," said the Malang-born lecturer.
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2. Separate financial focus
Furthermore, Chacha explained that before starting an investment one must separate his funds into five parts, namely, monthly need funds, urgent funds, investment funds, savings data, and zakat. Chacha continued to calculate the emergency fund, generally, someone who is still single is advised to prepare a precarious fund of 3 times the monthly expenses.
Meanwhile, for those who already have a family, the precarious fund that is prepared is about six to twelve times the monthly expenditure. "So the funds that will be used for investment are funds that are not used and will not be used shortly," said Chacha.
3. Set investment direction
After separating funds, some beginners must determine the direction of investment. He recommends starting investment in finance because the costs are more affordable than the real sector. There are several choices when it comes to investing in finance, but the investments that have the least risk are in money market mutual funds and government bonds.
"In money market mutual funds, the value of our investment will continue to rise even though it is insignificant. Compared to other investments, money market mutual funds tend to be constant. Government bonds have the advantage that the interest is above deposit rates. ," he added.
4. Stock investment can bring big profits
If some beginners want to get more profit, Chacha recommends trying to invest in stocks. There are many advantages that investors want to get when investing their money in stocks. First, investors will receive funds per year from the company through the distribution of dividends at the General Meeting of Shareholders (GMS). The second is the profit that investors get when selling their shares when the value of the shares increases from the purchase price (capital gain).
"Although it gives advantages, some beginners generally avoid big losses when investing in stocks. There are ways to minimize losses. The first is to study the company's financial books well. Second, pay attention to the company's image in society. Third, don't may invest in new companies because they are not constant," said Chaca.
5. Make sure it has been registered with OJK
In addition to paying attention to these 3 things, so that security is more built, Chacha added that some beginners can buy stocks, mutual funds, or bonds that have been registered with the Financial Services Authority (OJK). Another tactic in stock investing is dollar-cost averaging, where investors are diligent in buying stocks even though the price is down or up / month. This will reduce losses when investing in stocks.
"Investment options will depend on the direction and needs of a person later. Because of this, study it carefully before starting to invest. You should not buy any investment because it is only a follow-up. Stay away from investments that have high-profit prospects so that you are free from the trap of fraudulent investments," he said.
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