The uncertainty in the future is definitely tense enough to think about, especially if it is related to financial problems. Therefore, millennials are expected to be able to manage finances better. Better financial arrangements can start with investing. However, what is the right way to start investing for millennials?
Previously, it should also be noted that investing is different from saving, you know. Saving is an activity to separate part of money from income for occasional needs with a short-term nature. Meanwhile, investment is made to seek profit from the added value of the money invested.
The results of investment activities can only be felt in a long period of time. So, investing can be considered more effective for managing our finances, you know. Come on, see below the types of investment available so you know the right way to start investing!
1. Deposits
Time deposits or so-called time deposits are basically savings, but what distinguishes them is the period of time they save. This time deposit savings account has a longer term than ordinary savings. You can choose a term ranging from one year to two years or longer. Long term deposits are special about deposits because usually the interest or profit on savings is determined by how long the deposit is kept. Of course, the longer the time period we choose, the higher the interest rate.
If you choose deposit, you cannot freely take or withdraw the money that has been saved because you need to wait for maturity. Disbursements of funds that do not match the due date will even be subject to a penalty fee according to the policy of the bank where you are saving. This deposit is suitable for those of you who really can’t stand saving money in ordinary savings. It’s easy to withdraw money from ordinary savings can actually make you more wasteful and have difficulty managing finances to start investing, maybe deposits can be your solution!
2. Peer to Peer Lending
This type of investment brings you together as a creditor or party that lends money with a debtor or party who borrows money. Usually this debt-receivable activity is carried out to build a business, so you as a creditor are the party who lends you some money as business capital who borrows money.
Peer to peer lending is suitable for millennials to start investing because in addition to being profitable, its activities are usually carried out online through websites or applications. Choose a credible and well-intentioned site or intermediary institution, for example, a focus on finding capital for small and medium enterprises in the regions.
For those of you who don’t only want to manage finances by starting investing but also helping others, you can really try peer to peer lending, you know! Don’t forget to find out the intermediary, make sure it’s credible.
3. Gold
Gold investing is the oldest investment method ever, you know! The price of gold which almost always rises even though there is an economic crisis is indeed tempting and gives a sense of security. Therefore, not a few people choose to start investing by buying gold and saving it until the price rises at one time.
If this investment has been a long time, then is it suitable for millennials? This gold investment is still suitable, you know, because currently there are many e-commerce that offer gold investment through their shopping application. You only need to complete the transaction online. This online method also makes you feel safer because you don’t need to put gold at home and you can carry out buying and selling activities anytime and anywhere.
4. Mutual funds
Mutual funds are a type of investment that is suitable for beginners who are just starting out investing because investment activities are regulated by an investment manager so you don’t have to step in to take care of everything.
This investment is also available online and there is a wide variety of investment managers to choose from, from low to high risk.
The results obtained depend on the type of mutual fund chosen, if the lower the risk, the lower the results, but on the other hand, if the risk is high, the higher the results, such as stock products. You can directly access Mutual Funds on the official website of the Financial Services Authority!
5. Property
For those of you who already have a fairly large savings, this investment is for you. Property investment does have a high risk and requires a large amount of capital, but the benefits are not messy and promising. This is because property prices in Indonesia almost always increase every year.
If you want to invest in property, don’t forget to look for a vendor or agent who is credible in buying and selling property. You can check in detail about the letters and property certificates, involve official legal channels so you avoid fraud!