My Personal Finance, Science of Strategizing Money

As a first year out of college student, I started to think about personal finances a whole a lot, inspired from what Peter Lynch says that “In the long run, It’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.” Fortunately, I then realised, in addition to the saving of finance management, need to invest also acts a prominent role since our saving value gradually erodes due to inflation, to maintain and grow our value.

Buying gold is my first investment measure to generate returns from it over a period of time due to its relatively lower risk and volatility in the long term and an expectation of continuously increasing rise in its value for years ahead. Recently, buying mutual fund, bonds and/ or stocks has been more achievable as various kinds of alternative investment especially for students, with monthly regular allowance, like me.

In this article, I primarily focus on the mutual funds according to the my risk profile as a moderate risk taker. If you are an investor with a higher risk appetite, you can opt to invest in stock market whereas low risk takers just invest in instruments like bank deposits. My biggest concern is “what option is better between direct investing and regular investing?” as regular scheme already provided by every Mutual Fund in Indonesia called autodebet. From my perspective, it is based on the investor’s financial position and cannot be said one is better.

Broadly speaking, we, as investors, should adjust to our condition of finance. For example, investing with limited money is suggested to buy regular plan although slightly paid in the amount of money. More surprisingly, if we get yearly bonuses or Religious Holiday Allowance (THR), direct plan with enormous amount of money may be picked out as a better way.

Types of investment instruments are obviously available to you. Have you selected one?

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