Why is it Important to Start Investing for Millennials

For you millennials, is it strange not to hear the word investment? Do you think that if you are asked, do you prefer to travel or do you prefer to invest?

Of course, most of you will answer, prefer traveling. Because young people certainly have not thought about the future in the long term.

Whereas young people have a great opportunity to succeed in the world of investment. For this reason, it is very important for you millennials to start investing as soon as possible from now on.

What are the benefits of investing and what types of investments can millennials use today?

Now you will get answers to questions that are often asked by young people who are just starting to invest.

So read this article to the end so that you understand more about the right investment for you, millennial youth.

Millennials must have thought that investment was only for those who were financially sufficient or the elderly who already had a lot of assets.

Not! You are mistaken if you think like that. Because at this time millennials can invest only with a capital of 100 thousand.

Although

it is quite small, this capital can get many benefits if you start investing early.

Actually what is meant by investment? Investment is the investment of funds or assets by a company or individual within a certain period of time with the aim of obtaining a greater return.

Let’s discuss in detail with parables so that you better understand what investment is:

If you bought sugar to make coffee this morning, then that sugar is included in your consumption. Because the sugar you use today.

If you buy sugar and then you resell the sugar at a current high price, then you are doing a buying and selling process. Because the sugar is your merchandise.

Well

this is different. You buy sugar to save for a month, because there is news that sugar imports will be phased out. This sugar includes your investment, which you buy at normal prices or low prices. And you can resell it when the price goes up, because there is no stock in the market.

Do

you think millennials already understand what investment is?

Why is it Important to Start Investing for Millennials


After you understand investing, there are various benefits why millennials should start investing as soon as possible, here are the benefits:

Increase wealth value

If you start investing now, your wealth will increase. Likewise with the assets you have, ranging from buildings, land, other properties and the money you save. So by investing today, in the next few years your capital will always increase and increase.

Protect yourself from inflation

The most appropriate way to avoid inflation every year is to invest. Because you can anticipate inflation by saving the money as a tool to invest. If you do not do so, then the capital you have will decrease in value.

Inflation

has a significant effect on the economy, especially in terms of buying and selling. So that its existence can weaken people’s purchasing power. For that, the most appropriate way to avoid these problems, is to start investing.

Financial Independence

By investing, it means that you will be financially independent, meaning you don’t have to worry about finances. So you can fulfill your daily activities from the wealth you get without having to work hard. Because you have been investing for a long time. So as soon as possible, yes, start investing from now on.

Bright future

The age factor entering old age can prevent you from working. So that your income will decrease, when compared to the productive age where you can work hard.

To overcome this problem, you can invest from a young age. This is the right way to help you prepare for a brighter old age.

In addition, you can also meet your daily needs without having to work as usual, so you don’t need to doubt starting investing early.

For

millennials who are starting to want to invest, of course you have to know a few things that you must understand in investing so you don’t take the wrong step. So, check out the information first about CariDuid.id’s investment tips

Understanding Investment Objectives

The first thing you have to understand, is your investment goals. Why are you investing now, so you can set the right strategy for investing.

Before starting to invest, you must also determine the time period, as well as how much money you want to invest.

Usually the purpose of people making investments is to buy something for example a house, a vehicle or enjoying old age so as not to be in trouble.

Now by understanding clear goals, then you can easily do financial planning in investing.

Understand the Basics of Investment

As the CariDuid.id team said at the beginning, millennials must understand the basics of investing so they don’t start wrong.

By understanding it well, of course you will be easy to carry out future investments. You also need to know how to work on the investment you choose in order to get maximum results. If you don’t understand how it works and the basics of investing, then millennials will get a loss, not even a profit.

Start investing small amounts

Millennials don’t need to be afraid of failure, because you can try to start investing in small amounts, because there are so many investment products that are offered and circulating in the market that you can choose from.

You can also use this as an experiment and learn to be proficient in investing. Because usually if the investment offers a large return, then the risk you will face is also greater.

Understanding and Choosing Different Types of Investment

The most basic thing you should know when you start investing is choosing the type of investment.

Here you must be able to choose and understand in advance the various investments offered. You should not focus on only one investment instrument, because this can be a prevention if for example one of your investments fails, then there are other types of backup investments. For that you have to start determining what kind of investment you will choose later.

Why is it Important to Start Investing for Millennials

This time the CariDuid.id team has summarized a number of investments that you can try, because they are very suitable for millennials, namely:

Deposit

Deposits can be an option for millennials to start investing. You can use a deposit if you have a lot of money, but want to save that money for the long term.

Actually, deposits are not investments, but savings within a certain period of time based on an agreement.

Usually the term is between 1 year to 3.6 years. So the longer you deposit money, the more interest you will get.

For this type of investment, the risk is quite low, and it is safe to use. Because it’s not complicated to do it.

Share

The most popular type of investment is stock, which is a form of ownership in a particular company. So you are entitled to get a share of the profits obtained by the company.

This activity is actually quite risky compared to others, but the results obtained are also not playful.

For those of you who are interested in trying stock investment, you must understand the risk profile offered, because it is high risk, high return.

Stock prices can rise and fall significantly, in a short period of time.

Property

The next investment you can make is property, because from year to year property always increases in selling price.

This can be your choice in the long run. Even though you need to earn a lot of money to buy a property, it will be covered by the profits.

But you also have to understand about maintenance to keep the property from getting a high selling value.

So for millennials who want to dive into this investment, you have to be ready with 2 choices, namely making a profit or just a loss.

Gold

One of the easiest types of investments to make is this type of investment. Gold that is usually used is precious metals, gold bars, jewelry or others. However, this type of investment has a drawback, namely the location of storage.

It is recommended that the location of gold storage must be safe because it avoids unwanted things. For example, you can save using a safe deposit box provided by certain banks, or you can also use a personal safe.

mutual funds

The last investment that you can choose as a millennial is to use mutual funds. Mutual funds are investments that have a very small risk profile and are easy to do.

How to make this type of investment is to raise funds or money through various parties and manifested into securities.

Usually this method is done in the form of bonds, stocks or other securities. To get started is quite easy, it only requires a small capital, between Rp. 50,000 to Rp. 500,000. Interested to try it?

That’s why millennials should start investing from now on. The most visible advantage that can be obtained is time, because millennials start at a young age so there are lots of opportunities to generate bigger profits and maximize investment returns. So when do you start investing?