Investment becomes an important step to achieve a better future. With their respective advantages, investments have a variety of types, ranging from investment in precious metal gold, jewelry, stocks, bonds, mutual funds, property, or other forms. In fact, education and training are also considered as a form of investment.
If then investment is so important, does everyone then have to become an investor? In the context of asset investment, there are actually several conditions before you finally become an investor, especially if you choose paper assets.
Paper assets different from conventional assets, such as houses, buildings and land. Paper assets refer to investment assets in the form of paper such as bonds, government debt securities, stocks, and mutual fund investments. Although it does not have a clear physical, but compared to conventional assets, paper assets no less interesting to be an investment instrument.
Here are 5 things you need to do before investing
Now, to start investing, there are some things that you must first confirm and do. With these steps, you will not hesitate in investing
1. Make sure you don’t have consumer debt.
Before investing, it’s a good idea to pay off the consumer debt you have. Examples of consumer debt that you must pay off are credit card debt. Credit card debt has a higher interest rate than the average investment yield, so you need to resolve it immediately.
Also read: This is the reason you do not need to fear gold investment
Before buying an investment product, you must first understand the ins and outs of these financial assets. For example if you want to invest in mutual funds, then you must know the advantages and disadvantages, the risks that exist, up to the type of mutual fund and your own investment risk profile.
Understand all financial products that you will buy. Then buy what suits your preferences and what you understand. Before deciding on an investment, make sure you read everything, from the prospectus to the fact sheet. Don’t be lazy guys! Re-check the track record of the publishing company to its managers, and don’t be tempted by large yields.
If you don’t have time, you can take advantage of investment features in Bukalapak namely BukaReksa and BukaEmas. BukaReksa and BukaEmas, always do a review of the product and always choose an investment manager or a trusted partner, so you will more easily learn and choose the right investment.
Also read: Gold Investment Mistakes That Will Make You a Big Loss
3. Start small and start NOW!
As a novice investor, you can start investing small amounts first while learning. No need to be confused because now there are many types of investments that are lightweight with a small nominal. For example mutual fund investments in BukaReksa that you can start from Rp 10,000.
Even at BukaEmas, you can start investing in ANTAM’s gold bars starting from Rp100. Interestingly, you can invest in Buka Buka Gold while shopping at Bukalapak. Activate and use the Buy Automatic feature, so every time you shop there will be a set aside to add direct and automatic gold balances.
Also read: Get to know Investment Managers, APERD, WAPERD, and their roles in Mutual Fund Investments
4. Adjust the type of investment to the financial goals that you have
Before buying an investment asset, then you need to look at and determine the financial goals that you want to achieve from the investment. For example, if you want to invest in preparation for a pension fund then you can buy long-term investment assets, such as mixed funds or equity funds. Calculate your pension needs correctly so that the target value can be achieved.
In essence, you must have a financial plan as a guide for choosing investments, including insurance. Especially to prepare for retirement in old age, it takes a very long time commitment.
Also read: What is Investment Diversification and How to Diversify Investment
5. Having an emergency fund will be more stable!
Before investing, at least you also have an emergency fund, although in a minimal amount. Emergency funds are reserve funds that you prepare for emergencies, and you only use them in emergencies. Ideally, emergency funds amount to 3 to 6 times a month’s expenditure. Emergency fund requirements are liquid or easily disbursed and safe, aka the price is not too volatile.
Well, if you want to set up an emergency fund at the same time investing, you can use investment instruments that are safe as well as easily sold or disbursed, namely precious metal gold and money market mutual funds. The two types of investment have conditions as an emergency fund plus the potential for good returns.
If the five things have been done, what are you waiting for, invest immediately! Start mutual fund investment here or gold investment here. If you haven’t registered as a mutual fund investor, don’t forget register first here.