The new year is an ideal time to reflect on your financial achievements, plans and goals for the upcoming year. Starting off with effective financial planning can be a crucial first step toward achieving financial stability and realizing your future dreams. One of the most effective ways to reach your financial goals is through investing.
Why is Investment Important?
Investment involves allocating assets or funds – whether for a company or an individual – for a specific period with the intent of generating higher returns in the future. Additionally, investing is a strategy to protect the value of your money against inflation.
Here are some things to consider when starting an investment:
- Set specific financial goals: for example, buying a house, planning for retirement, paying for children’s education and so on.
- Establish a timeframe to achieve the goal: Generally, the longer the investment period, the greater the potential for growth in your investment value.
- Understand your risk profile: recognize your personal risk tolerance, as it varies from person to person. Conservative investors may prefer more stable options like Money Market Funds or short-term bonds, while aggressive investors might opt for Equity Funds, Equity Index Funds, or long-term bonds.
- Create a budget and keep records: Allocate funds for various investment purposes and track your income and expenses meticulously. This will help you understand where your money is going and identify areas where you can optimize your budget.
- Allocate at least 10% of your income for investment: You can adjust the allocation based on your individual income and expenses. The more you allocate, the quicker you can achieve your financial goals.
- Choose the right investment instrument: Investment instruments should not only align with your risk profile but also match the timeframe in which you aim to achieve your financial goals.
- Start with a small amount and be consistent: Some Mutual Funds can be purchased on myBCA with an initial investment of as low as IDR10,000. To help you stay committed and consistent in your investments, there is an automatic subscription feature available for periods of up to 240 months.
With careful planning and discipline, investing can be the key to achieving a better financial future. Register your investor data (SID) now through the myBCA application and enjoy the various conveniences of investing.
Start working towards your financial goals by investing with myBCA! Download the myBCA app by clicking the button below: