Investments Made by the Rich, with Only a Few Money

Four "Non-Investing" Investment the Rich Learned About

     This is an area where the wealthy invest time and again. That's because they know something most people don't - they know that increasing wealth is about more than buying investments in the stock market, becoming entrepreneurs, or taking huge risks to fund promising startups.

Building wealth means becoming the best version of yourself, staying in constant learning mode, and networking with like-minded people who can help you reach your goals.

Here are some of the most common non-financial investments that wealthy people like:

Personal Coaching

Personal coaching is another investment rich people make, knowing they need help to reach their potential.

Morgan Ranstrom, a financial planner in Minneapolis, Minnesota, says that he recommends a high-quality training program for anyone who needs help taking the next step in their business.

Ranstrom has worked with various business and life coaches who have helped him understand his values and clarify his goals, become a published writer, and maximize his impact as a professional and business owner.

For individuals looking to break through to the next level of success, she recommends investing in a trainer. Coaching can transform your life.

The thing that scares many people about coaching is that it is not free; in fact, some coaching programs cost many thousands of dollars. But the wealthy know that the investment is worth it.

Mastermind Groups

Mastermind groups are especially helpful because they let you bounce off business ideas from other entrepreneurs who may think differently than you, but still have your best interests at heart. And sometimes, it's a small piece of advice or a single statement that can make all the difference in your business goals, and your life as well.

Accelerated Learning

Rich people read lots of books written by people who inspired them in some way, or had unique experiences to share. Read books like The 4-Hour Workweek by Tim Ferriss and The Millionaire Messenger by Brendon Burchard.

Reading is a smart and cheap way to add to your knowledge. If reading a few hours per week can help you stay mentally sharp while learning new things, why don't you do it over and over?

But there are other ways to speed up learning that don't involve reading a book. You can also take online courses in topics that are related to your career.

Going to conferences to learn new skills from others in your field is also a smart move for the wealthy to make.

Building Relationships and Networking

When it comes to the top tier of the business world, there's a saying: “It’s not always what you know, but who you know.”

Successful people build relationships that catapult their businesses and careers.

The right connections can help get you a better job, accelerate a promotion, or start a profitable business. But it's not about cheap networks.

For maximum value, focus on meeting people in high-quality professional conferences, mastermind groups, and membership communities.

It's a strategy many successful people know — meet other people you admire, and build relationships that work for everyone.

When you meet someone new who can potentially help you in your business, you can't just walk out the gate for help. There's a VBA — or “Value Before Ask” method. This means making sure you provide value before asking for help from anyone.

In other words, make sure you are doing your part to make the relationship a win for everyone. If you try to build relationships with other entrepreneurs just so you can take advantage of them, you're going to be kicked out of the building before you know it.

How to Detect Investment Scams

Beware of Fraudulent Investments!

     Investing is the right choice if you want to manage your money. Investments are made as savings at retirement.

There are two types of investment,

- Investments in direct financial and business products such as shops, offices or property.

- Invest in financial products.

The choice of many people is mutual funds. In investing you have to be vigilant, because nowadays, many people are experiencing fraudulent investments.

Investment scams are investments that will ask you for a certain amount of money to invest in a product or business that doesn't really exist.

The person who told you to do this intends to take away your money. You have to be vigilant and careful when investing, so you don't get bogus investments.

The Characteristics of a Fraudulent Investment

Many people invest their hard earned money hoping to have their money work for them. While there are many legitimate and worthwhile investment opportunities available, investments are also fertile ground for fraudsters.

While investment scams come in many different packages, here are some common signs to help you spot fraudulent investment schemes.

1. Be careful with “now-or-never” or “limited time” offers. It's just a high-pressure strategy to prevent you from getting the real "scoop" on an investment scheme.

People lose millions of dollars every year in get-rich-quick investment schemes, which promise high returns with little or no risk.

This could include rare coins, gemstones, precious metals, art and other 'investment opportunities'.

Scammers create the impression that the number of 'investment opportunities' available is very limited, and if you don't invest quickly, they will be lost.

This is a scare tactic so that it makes you make a decision without looking further into the company or investment rules.

2. Be wary of high return investment offers with virtually no risk. There is no such investment. Anyone who tells you an investment that will pay off quickly must have some basis for that claim.

Be careful when someone tells you that the rewards of investing are sizable compared to the risks.

Be sure to understand what you're investing in – it's quite odd when you can make money but you don't know what you're doing.

Get an independent appraisal of the specific business, asset or venture you are considering.

The valuations offered by those selling the investment opportunity can be bogus. Speak to the previous owner of the asset or business you are acquiring for its history of value. Discuss any investment plans with an accountant or financial adviser you know and trust.

3. Be skeptical of testimonials – you are better off reading the written prospectus and checking the company with a local, authorized securities commission.

Be careful if the company selling the assets, shares or partnership units has not registered the securities. Companies must register their securities file prospectus and annual report with the securities regulator.

4. It can stop at any time

Investment scammers will usually say that you can stop investing at any time and take profits when you stop.

You will be promised the convenience that will really spoil you as an investor. Of course, this is not true, because the investment process certainly has a certain time period.

If there is a company that offers this, you can be sure that this is a fraudulent investment.

You Think You've Been Scammed! What should you do?

Report it to Authorities

If you feel that you are the victim of a scam, be sure to report it.

Agencies who may be able to help depend on the nature of your complaint, including the Federal Trade Commission (FTC) complaints website, your local FBI office, your state attorney general, and your state securities regulator.

You can find contact information for the latter group on the North American Association of Securities Administrators (NASAA) website. You may also want to consult a private attorney, especially if the loss is very large. (investopedia.com)

Summary

When you want to invest, you should consult with people who understand about investment. Make sure in advance whether the investment service provider business entity is legal, both in terms of licensing, whether its membership has been registered and supervised by the local investment regulator. So you can avoid fraudulent investments. Don't easily believe investment advertisements on the internet, look for information first, ask for and study the investment schemes offered to you.

Usually investment scams are not transparent in providing detailed investment schemes.

Essential Tips for Investing in Stocks for Beginners

Best Tips on Investing in Stocks for Beginners

      Making an early investment is the right step that can provide future benefits.

A number of benefits can be obtained by investing, from training yourself in financial planning, to preparing for future needs.

Buying stock is not that difficult. The important thing is to choose a company that consistently excels in the stock market.

Not everyone can do it. The strategies below will provide guidelines, and have been tried in investing in the stock market.

Basic Tips on Choosing Socks for Beginner Investors

Check your emotions

Success in investing is not correlated with IQ, what you need is the temperament to control the urges that make it difficult for people to invest. Those are Warren Buffet's tips that guide investors to seek long-term profits, beat the market, and build wealth. (nerdwallet.com)

Buffett refers to investors who allow their heads, not their guts, to drive investment decisions. In fact, emotional trading overactivity is a way that investors often do, to the detriment of their own portfolio returns.

Choose companies, not ticker symbols

It's easy to forget that behind the alphabet soup of stock quotes crawling along the bottom of each CNBC broadcast is an actual business. However, don't let stock picking become an abstract concept. Buying stock of a company makes you part owner of that business.

You'll come across overwhelming an amount of information as you screen potential business partners. But it's not difficult to home in on the right stuff when wearing a "business buyer" hat.

You certainly want to know how this company operates, its place in the overall industry, the competitors, long-term prospects, and whether it brings something new to the portfolio of your businesses.

Stay away from trading overactivity

Check your stock quarterly — just like you would receive a quarterly report. But it's difficult not to keep your eyes on the scoreboard. This can lead to overreacting to short-term events, focusing on stock prices instead of company value, and sounds like you need to do something when no action is warranted.

When one of your stock experiences a sharp price movement, find out what triggered the event. Is your stock the victim of collateral damage from the market responding to an unrelated incident? Has something changed in the company's underlying business? Is it something that significantly affects the long term outlook?

Pay attention to the movement of the stock price

The price of a company's stock always fluctuates. Move at any time, even within seconds. The more demand, the stock price soared. Be careful if the stock price increases quite fantastically.

For example, today's stock open, the price of A shares is $ 2 per share. But at the close of the first session, it jumped to $ 4 per share. Then the closing of session II, rose again to $ 5 per share.

This kind of stock movement is not normal. You'd better avoid it. Usually, stocks subject to Upper Auto Reject, or Lower Auto Reject, by the Stock Exchange authorities, change very quickly.

For beginners, it's best to avoid auto-reject shares. Moreover, it has been included in the UMA list, (Unusual Market Activity) or stocks that are moving outside the norm.

Including if the shares are not liquid. Its characteristics are a few bid and offer lines. You can check on the official stock exchange website to find out which stocks are on the UMA list.

Get to know the company and its performance

Don't buy stocks because of persuasion, seduction, or because other people follow suit. Buy stocks because you already know the company and the owner's reputation.

You can check who is the owner of the company, do the financial statements make sense?

In the financial statements, you trace again, is the debt reasonable? Valuation is cheap or expensive, return on equity (ROE) is at least 15% or less, etc.

That's how to buy stocks using the brain, not emotion. So that the results are also clear and maximum.

Property Investment Tips For Beginners

Must-Know Beginner Property Investment Tips

    Today, many people are investing for their retirement. One investment that is very popular is property investment.

There are many kinds of property investment, it can be a vehicle or real estate.

Real estate investment is considered to be more profitable in the long run.

In order to achieve the target you need to set the right strategy.

As a beginner, you should not take steps in a hurry, because there are many things to learn before starting property investment.

The process of buying a property is not easy. There are many steps to go through. Pay attention to the payment system that you will choose, if you choose to make a payment with a mortgage, make sure all the requirements are complete before making the submission. Here are the steps for starting a property investment for beginners.

Select the Right Location

Location is something that must be determined before you want to buy a house or start a real estate business.

People usually decide to start building houses because of strategic locations. For this reason, location is the main factor that must be considered when starting a property investment.

Location also greatly influences the selling price of the property, a strategic location, easy to reach, and close to the center of the crowd, has a high selling price.

Select a Trusted Developer

It is important for you to know the property developer's background. Make sure the performance is good and reliable.

Choose a developer who has a minimum of 5 years experience in the property sector. All information about the developer can usually be obtained via the internet.

Check the Market Price

Don't be in a rush to buy a property. Many things must be considered.

You have to pay attention to the prevailing market price. You have to know the market price of a house that you want to buy. Checking market prices can be done online or by direct research. Thus you can get the best price for your property investment.

Mortgage Approval

Usually people will try to get a mortgage approval to ease the house payments.

It is also something that makes it easier for novice investors to invest in property.

Having a mortgage approval makes a real estate agent or vendor confident about your interest in buying a home and making property investments. In addition, the mortgage also prevents the failure of buying and selling houses between you and the housing agent.

Additional Funds

When making a property investment, you must prepare additional funds, because there will be additional costs in the process of purchasing a property investment. The following are some of the additional costs that arise when purchasing a property.

Bank Fees

Purchasing a house using a mortgage means you have to do several stages of checking the completeness of the paid files. One of them is the property asset survey fee. Generally, checking land certificates and property selling prices are based on prevailing market prices.

Notary Fee

Notary is the party who will assist you in taking care of the deed and certificate of sale and purchase. Notary fees are your full obligation.

Tax

Tax is an obligation that cannot be avoided in every property sale and purchase transaction. Tax costs will be incurred with mortgages or cash payments.

What Types of Properties are Best for Investment?

The best types of investment properties for beginners are generally single-family dwellings or condominiums.

Condos are low-maintenance, as the condo association handles external repairs, you only have to deal with the interior. (investopedia.com)

These are the things that you should pay attention to when you start investing in property.

If you want to buy a house through the mortgage system, make sure you choose a bank with competitive interest.

Investment Management: Definition and How It Works

Investment Management: More Than Just Buy and Sell Stocks

      Investment management is a process carried out to build investment portfolios, such as bonds, stocks and other instruments, in accordance with the desired goals.

Investment management is also a financial service that provides consultancy in the form of an investment strategy for someone, such as how to buy and sell investments and manage them properly and correctly.

The following is a complete explanation of investment management that you must know.

Definition of Investment Management

Investment management refers to the handling of financial assets and other investments—not just buying and selling of investment products. Management also designs short and long term strategies for acquiring and disposing of portfolio holdings. (investopedia.com)

Investment management is a professional management that manages investments in the form of securities, such as stocks, bonds, or other assets with the aim of making a profit.

The parties that make investments are called investors, which are classified into two: individual investors and institutional investors, which are usually companies or institutions.

The following are the reasons someone makes an investment:

1. Improving the standard of living from time to time.

2. Getting a better life in the future.

3. Make tax savings.

4. Reducing the impact of inflation so as to avoid the risk of decreasing value of wealth.

Investment has risk and return that have an linear relationship. The bigger the risk, the bigger the return you get and vice versa.

This causes investors to deliberately allocate their funds in several places to prevent too much risk.

Investment management has an investment decision process which consists of five stages:

1. Determine investment goals

2. Determine investment policy

3. Selection of portfolio strategy

4. Asset selection and portfolio formation

5. Portfolio performance measurement and evaluation

How does Investment Management Work?

If you use an investment management service, the provider company will provide an explanation in the form of the steps you have to take.

Investment management requires that you create an investment account in accordance with the company or broker used

The provider company will help you transfer the money to the investment account.

The investment manager will later make decisions according to investment objectives, time, and risk.

The investment manager will discuss the risks that you will face, for example, when the capital market conditions are rising or falling.

When Should You Use Investment Management?

In order for the money you save to be optimal, here are signs that you need investment management to manage your finances.

- You don't feel confident in managing investments and making decisions. These things can lead to losses.

- You want an expert who oversees your portfolio and can secure assets from multiple portfolios.

- You have a financial problem and are confused about allocating it.

The Role of the Investment Manager in Investment Management

Investment managers are generally the parties that play a role in the formation of mutual funds.

Mutual funds include the money market, stocks, and fixed income, which are portfolios formed by investment managers.

This is exactly what investment managers do.

Manage client assets

After receiving investment funds, the investment manager then allocates these funds in accordance with the mutual funds that have been selected.

For example, if you choose to invest in a mixed mutual fund, it means that the investment manager is free to determine the investment allocation with the largest portion of 79%.

Decide which investment instruments to buy

The investment manager will determine which instruments will be purchased. Because there are so many investment products in the capital market.

The investment manager's job is to choose which stocks to buy, according to the profits and track record in the capital market.

You simply monitor it, whether the investment is profitable or not. If the investment manager you choose is smart, your portfolio will still be green, even if the capital market is sluggish.

Deciding when an instrument is sold

The investment manager will also determine when is the right time to buy or sell stocks that are not working optimally.

Reporting the state of customer assets

Not only optimally managing funds, the investment manager also has the task of providing daily reports about where your investments have been placed.

You can monitor reports from investment managers through your chosen investment management application.

Advantages vs Disadvantages in Gold Investment

Gold investment is not Suitable for Investors Who Want to Make a Profit in a Short Time

     Gold has been known as a profitable investment instrument, especially for the long term. Gold has two prices: the purchase price and the selling price, the value of which never becomes zero, being part of its appeal.

One of the benefits of gold is as a hedging tool. Even so, as with any other investment instrument, there are also drawbacks to investing in gold.

Advantages of Gold Investment

Gold Prices Tend To Rise

If you look at long-term investment, gold prices tend to be positive and continue to increase above the average inflation rate. So, it automatically makes the value of the money you invest in gold does not decrease in value.

Gold Value Resistant to Recession

Take as an example a comparison during the 2020 pandemic, the value of the Composite Stock Price Index (CSPI) fell sharply to reach 26.43%, in contrast to the value of gold in the same year is likely to rise.

Gold is Easy to Cash

Compared to the type of property investment which is relatively long in the process of selling it, gold is arguably very easy to cash out if you are in a condition where you have a need for fast funding.

Gold can be bought with a little money

There are 2 types of gold investment today:

1. Physical Gold

If you invest in physical gold, you can start with only a variety of denominations, starting from 0.5 grams. However, keep in mind, the smaller the denomination, the more expensive the base price is, because factories have the same production costs for packaging costs.

2. Digital Gold

Another type of physical gold is digital gold. The digital gold service even provides gold investments starting at as little as $5.

No Maintenance Fee

Apart from the tax that is charged when buying gold, gold investment does not have maintenance costs or other costs.

Disadvantages of Investing in Gold

High Spread Rate

This is the most prominent drawback of gold investing when compared to other types of investments. For example, if your gold investment is in physical form, then per gram of the spread value is an average of about 11%, in contrast to stock investments which have an average spread value of less than 1%, depending on the platform you use.

Risk of Losing

If we invest in physical gold, both bullion and jewelry, and keep it for ourselves, then there is a considerable risk of losing it. Especially if the gold you have is gold jewelry.

But don't worry, digital gold can answer these worries. Digital gold investment is safe and free from risk of theft, and of course also convenient, especially those registered and supervised by the Financial Services Authority

Slow Rising Prices

The disadvantage of the next gold investment is the price increase which tends to be slow. Gold prices have increased even when economic conditions are unstable.

When economic conditions are stable, gold prices also tend to be stable. But behind the slow increase in prices, gold actually offers certainty. In general, the trend of gold prices increases from year to year, even above the national average inflation, meaning that your investment value also increases.

Relatively Small Profit

Unlike other types of investment, gold investment does not provide great returns. Gold maintains value rather than adds to it. However, behind this, gold is a safe haven.

Safe haven is an investment instrument asset that is able to maintain its value, despite the unstable world economic conditions.

Minor Impact on Real Economy

Owning gold investment does not contribute positively to economic growth in real terms. Because the profits they have tend to be used for personal gain.

However, gold is very worthy to be reckoned with as one of the tools in investing, especially if you want a form of investment in the long term. The benefits of having a new gold investment will be felt in the next 5 to 10 years.

How to Invest in Capital Market for Beginners

How to Invest in Stocks for Beginners

     There are several investment tips in the capital market that must be known by novice investors, in order to be able to benefit in the future.

In the capital market, you can try several investments in the form of stocks, mutual funds, and bonds or bonds.

For beginners, investing in the capital market is actually not a difficult matter. However, it is important to pay attention to various things so that the investment objectives can be achieved and minimize losses in the middle of the investment. Here's how to help you start investing in the capital market.

How to Begin Investing in the Capital Market for Beginners

Define a Specific Investment Goal

The following are things to think about before you invest in the capital market:

1. Investment goals.

Think about your investment needs for the long, medium and short term.

2. Risk appetite.

Do you like high, medium, or safe investments?

3. Total funds for investment.

How much do you want to budget for investments on a regular basis? It is important to remember that funds for investment are different from funds for daily living needs.

Understand Where to Invest

You have to understand the investment vehicle you are choosing. These investment facilities are investment instruments.

Choose an area of investment that you really understand. Such as knowing what products the company sells or where the company's revenue sources come from, and how the business processes are.

Valuation is an important factor when selecting a stock. Company profitability, revenue growth prospects, quality of management and industry performance.

Observe the Price Movement

You have to observe the price movement of the investment you choose, be it stocks, or bonds. Moreover, if you invest in stocks whose price movements are very volatile, you must constantly monitor the price.

Stock prices don't always go down, even though the economic conditions are tough. There will be a time when the stock price will rise. So, you must observe the price movement.

What is the percentage increase and decrease in prices over the last few days.

Do Diversify

Investment Based on the Bank Rate, gradual purchases can also give you the opportunity to observe stock price movements in other sectors.

So you don't put all of your money in one sector. This is called diversification of investment.

For example, if you have bought shares in the property sector, you can put money in the commodity sector. The goal is to minimize the risks that could occur in the future.

When one sector weakens, other sectors can strengthen. So, you don't lose much money.

Invest Gradually

As a novice investor, you must be diligent in buying the investment instrument you choose. Investors need to think about strategies and long-term opportunities.

Learn the Difference Between Investing in Stocks and Mutual Funds

Stock market-traded mutual funds allow you to buy small pieces of many different stocks in a single transaction.

An index fund and an ETF are a type of mutual fund that tracks an index; for example, the Standard & Poor's 500 fund replicates that index by buying company shares in it.

When you invest, you own a small part of each of those companies. You can collect several stocks to build a diversified portfolio.

Individual stocks.

If you're after a specific company's stock, you can buy one or more shares as a way to take part in stock trading.

Building a diversified portfolio of many individual stocks is possible, but it requires significant research.

Individual stocks experience ups and downs. If you're researching a company and choose to invest in it, think about why you chose that company in the first place if the angst came on a bad day.

The advantage of equity funds is that they are inherently diversified, thereby reducing your risk. For most investors, a portfolio made up of mostly mutual funds is the obvious choice.

Mutual funds are unlikely to skyrocket as some individual stocks may. (nerdwallet.com)

Start Investing from Now

Picking the perfect time to invest in the stock market doesn't usually work out well.

No one knows for sure the best time to start.

Investing is a long-term activity. There's no proper time to get started.

One of the core points of investing is not just learning about it, but getting started with it.

If you invest now, and more often over time, that pooling is the thing that can drive your returns.

If you're looking to invest, it's important to get started right away and have a target over time.

Given that your status is still a beginner stock investor, you should spend more time learning stock investing. That way, your first investment returns don't disappoint and you get a profit.

Stock Investing Tips for Beginners

Tips to Invest in Stocks for Beginners

    Stock investment is increasingly recognized by the general public, including young people. Stock transactions are easier and can be done online, the potential for high returns is the main attraction. In order to become more proficient in investing in stocks, you can try the following 4 tips.

Understand the Basics of Stock

In starting stock investing properly, you need to understand the basic science of stock investing. You will find technical terms that will be confusing at first.

In order to make it easier for you to determine how to invest in stocks, you can first identify various terms in the stock sector.

In general, shares are often interpreted as a sign of capital participation from a person or other party including a business entity.

In other words, the equity participation applies to a company or limited liability company.

When you start investing in stocks, you will also find the term GMS which stands for General Meeting of Shareholders.

Basically, the function of the GMS is to accommodate the aspirations of the shareholders in determining the right policies that affect the development of a company.

Don't Buy a Cat in a Sack

Investment is not speculation. Don't just guess when choosing stocks.

Like building a business, you are obliged to do research, whether the business potential of the company you choose is good in the future.

The future performance of a company is usually reflected in the movement of its shares. The more investors trust a stock, the stock price usually tends to rise.

Don't buy a stock just because you see someone else. Learn about the company's performance and financial performance over the last few years.

If the management of the company is good, the liquidity of the shares is also maintained, don't hesitate to invest your money in these shares.

Better to buy shares of a healthy company with more equity value than debt value. You will be more confident in investing and getting results in the future.

Don't Put All Eggs in One Basket

Putting all the eggs you have in one basket can cause them all to break if the basket falls.

When you invest, don't put your entire capital in one investment. Allocate your funds in several investments. Your diversification will protect you. Imagine if one investment is going down, at least you still have other positive investments. When you need money, you can cash out investments that provide positive returns first.

You can optimize your profits and minimize market risk, by diversifying,

Diversification is useful to keep your assets stable. For example, you can choose three types of blue chip stocks in different sectors, for example consumption, banking and energy.

When interest rate sentiment influences the movement of banking stocks, consumption stocks and energy stocks that you own are still safe.

Cultivate Commitment in Yourself

Investing in stocks is not only about skill, but also about the importance of maintaining your attitude to stay consistent.

Just like planting seeds, you need to be diligent in watering regularly so that the seeds can grow into shoots, and then become fruitful plants. The process of growth also does not happen overnight. Everything has a process.

You must be patient and consistent in studying the stocks you choose, then buying and putting them together.

First determine the period of your investment. If you are a beginner, it is better to invest long-term in big cap stocks whose performance is quite stable. Usually the "fruit" will result from the "seeds" you sow after a few years, from the dividends distributed to shareholders, as well as the capital gains you get when you sell your shares.

Invest for Long Term

Stock market investing has proven to be one of the best ways to grow wealth over the long term. For decades, the average return on the stock market was around 10% per year. However, remember it's just an average across the market—some years will go up, some will go down and individual stocks will vary in their returns.

The best thing to do once you start investing in perhaps the most difficult stocks is: Don't look! (nerdwallet.com)

Although it is not always absolute, you can practice these three tips so that you are more proficient in investing in stocks. As they say, practice makes perfect!

Proper Way of Saving According to Financial Experts

Proper and Effective Saving Tips

     Saving is one way to manage finances to prepare reserve funds in the future.

Savings also play a role in ensuring your financial stability if you need sudden funds later on.

Indirectly, saving helps you find out your priorities in finances.

Starting a saving activity plays an important role in the financial flow, especially for those of you who have just worked, and have an income.

The truth is, saving is not always an easy habit for everyone. This will become more difficult especially if you don't begin to get used to the right way of saving.

The Proper Way of Saving According to Financial Experts

Here's how to save the right way according to financial experts, as reported by GoBankingRates.com

Set Automatic Debit to Saving Account

Saving by automatic transfer is the most effective way. It is recommended that at least 10% of your salary be transferred by auto debit to a savings account. That way, you will never forget to save. This can prevent you from being tempted to spend your earnings, before putting them in savings.

Set the transfer amount and transfer date consistently, which is directly transferred to the savings account. By applying this method, you learn to be disciplined in saving in an easy way.

Saving Starts from Small Amount

You can start saving from small amounts first, but do it regularly. Not many people can save large amounts, therefore, start small.

If you are not familiar with the allocation of savings that are 20% of salary, you can start with 2% of salary.

However, make sure that the percentage increases every month until it reaches at least 20% of the salary. Even first jobbers should be able to live off half their salary, because they don't have many dependents and expenses.

Creating a Separate Account

It's important to separate your savings account from your daily account. By separating a savings account, you have saved money to use in an emergency at a later date.

Collecting Your Change

Collecting change can be used to shop for items with great value.

For example, change money after shopping at the supermarket, if collected, can be used to buy coffee and lunch. You can also save on lifestyle spending, and save the allocation of savings money.

This loose change will indirectly help you reduce the use of credit cards to pay for a lifestyle.

Signs that You Haven't Saved Properly

Some of you may have started the habit of saving, but is the method used the right way? The following signs indicate that you haven't been saving properly.

Savings Account Not Separated from Daily Account

If your savings account is still integrated with your daily necessities account, it can be said that your savings method is not right.

Combining savings and spending money will make the account balance bigger. This actually pushes you to spend even more. Instead of saving to increase money, the amount of savings will be reduced due to spending outside the budget.

Unstable Saving Account

When you have a separate savings account, make sure that there is no other activity in the account, only saving.

Having a large nominal savings amount can encourage you to spend it.

In case of an emergency, you can still use the savings. With a note that the value is not greater than the amount you save each month. If you're not in an emergency, but you still often use your savings to spend on tertiary needs or luxury goods, there's definitely something wrong with your way of saving.

Percentage of Savings

Before receiving your salary, you should make a budget to determine the portion of savings, spending, and other social activities. You should set aside about 10% -15% for the allocation of savings. Ideally, the percentage of savings is not less than this.

As salary increases, the percentage of savings should increase as well. If the nominal money you save is still very small, while your income has increased, it means that something is wrong with your spending budget.

Are you still experiencing any of the above signs? If yes, then now is the time to start the right saving habit. It's never too late to begin improving your financial management.

How to Start Investing as a Youth in 5 Easy Steps

Want to Try Investing? Read the Following Tips First

      Having a personal investment in the financial market has now become a lifestyle for young people or first jobbers. The old view that investments can only be made by a mature age is no longer relevant. This can be seen from the demographic data of investors in the world, which is increasingly dominated by millennials.

If you have decided that you want to start investing in the capital market, follow these guidelines for how to invest in the financial markets:

Have Clear Financial Goals

The first thing to do if you want to start investing is to record the financial goals that you want to achieve through investment.

Financial goals are simply interpreted as a condition that you want to realize in relation to a certain financial fund target for a certain period. By having financial goals, the way you invest can be more focused because you have clear targets and strategies. (bankrate.com)

You can also divide your financial goals by target time.

Short-term financial goals

This is a financial goal that you want to achieve in less than 3 years. For example: year-end vacation funds, first home down payment funds, and so on.

Mid-term financial goals

This is a financial goal that you want to collect in a 3-5 year span. For example, funds for marrying in 3 years, postgraduate school funds, and others.

Long-term financial goals

This is a financial target to be achieved in a time span of over 5 years. Included here are pension funds, children's education funds at universities, etc

Understand the Meaning of Investment and its Risks

Investment is an activity to manage finances to multiply money and increase wealth.

Currently, there are various types of investment, including: stock investment, property investment, gold investment, bonds, time deposits, etc

Whatever form of investment you choose, you need to know that investing has its own benefits and risks. Investment risk can occur in any investment with different degrees.

Determine the Investment Instrument

After having financial goals that have been categorized based on the timeframe of achievement, then you can start determining the choice of the right investment instrument according to the time horizon of your financial objectives and risk profile.

The time horizon is very important, because it will affect the assessment of the risk of an investment instrument and its effectiveness in helping you achieve the specified fund target. For example, if your financial goal is to set up a $10,000 marriage fund in 3 years, then the right investment choices are low-to-medium risk instruments such as money market funds and fixed income funds.

Stocks are not recommended for 3-year financial purposes, as the risk of price fluctuations is too high in the short term.

You also have to pay attention to your risk profile as an investor. There are three categories of risk profile investors: aggressive, moderate and conservative.

The characteristics of conservative investors are that they like stable investments, their initial capital does not want to decrease, and they do not like fluctuations in investment value.

Moderate investors are investors who can still accept price fluctuations, hope that their initial capital will not run out at all, and are quite satisfied if their investments grow beyond inflation rates and bank deposits.

Aggressive investors are investors who are ready to take the risk of losing their investment capital, comfortable with sharp price fluctuations, because they want their investment to grow many times above the deposit interest (risk free rate).

Open an Investment Account

After you are familiar with the risk profile and investment instruments, it is time to execute the plan.

In order to invest in the capital market, you must have an investment account. It's easy to open an investment account. You can do this through the right financial institution, such as in a securities company, if you want to invest in stocks, or at an investment manager, if you want to start investing in mutual funds online, etc.

Starting an investment is now easier with the existence of a financial technology (fintech) company that allows you to start just from a gadget without having to go to the physical office of the company concerned.

Discipline in Invest

In investing, you need to have a proper strategy. The strategy helps you optimize the capital you have in order to achieve your investment targets in accordance with your financial goals. For example, for stock investment, you choose the dollar cost averaging (DCA) strategy or regular investment every month, because you do not have a specific time to monitor the daily stock market movements.

There are also value investing strategies in stock investing, and other strategies that you can choose according to your convenience and financial goals.

Evaluate the performance of your investment regularly, at least every semester. You can check your performance through investment return reports that are sent periodically by securities companies or investment managers.

Before starting to invest, it would be better if you have financial readiness. Indicators of financial readiness include: surplus financial cash flow conditions, controlled debt installment expenditures not exceeding 30% of the value of regular monthly income, and have an emergency fund of at least 30% (ideal target value for emergency funds).