Have you made any first investments?

Have you made any first investments?
first investments
Have you made any first investments?

FINANCE - Have you made any first investments? Eits, before you start investing, you need to first have an understanding of the fundamentals of the investment process. Before you make any investments, the first thing you need to do is figure out what your goals are for those investments. Obviously, the first thing you need to do is realize that the mentality you need to have while investing is different from the mentality you need to have when saving, specifically


  1. Put some money away to cover your immediate expenses and long-term obligations.
  2. At any time it can be taken or used
  3. Returns that are fixed, yet with a relatively low value and risk
  4. One example would be money saved in the bank.


  1. Utilize the funds at your disposal to generate a profit.
  2. It requires some time to distribute the monies.
  3. High potential reward, with the potential for loss being directly correlated to the return that is anticipated.
  4. Examples include gold, equities, mutual funds, bonds, and other assets.

It is a common misconception that the goal of investing is to amass wealth quickly; however, this is not the case and can lead to greed. Greed might actually cause you to lose money if it isn't balanced out with moderation and common sense. Then, what exactly is the point of making investments? There are two primary objectives of investing, which are as follows:

1. Protecting one's finances from the effects of inflation

When expressed in layman's terms, inflation can be understood to mean a decline in the value of a country's currency. For instance, one hundred thousand rupiah could be spent on a variety of requirements twenty years ago, however these days, one hundred thousand rupiah is only sufficient to purchase a select few products due to the influence of rising prices. In order to prevent the value of your money from being eroded by inflation, you will need to invest some of your wealth in financial products that either generate returns that are higher than the rate of inflation or returns that are higher than the rate of inflation.

2. Attain one's desired level of wealth

Our efforts to accumulate a certain amount of money in order to fulfill a requirement at some point in the future are referred to as our financial goals. Short-term financial goals are those that can typically be accomplished in less than one year, such as purchasing a new laptop or other device for use in one's line of work. Long-term financial goals can be divided into two categories: long-term and short-term. The next step is to establish your financial objectives for the medium term, which can typically be accomplished within one to five years. These objectives can include saving money for a pilgrimage, a down payment on a house, or education costs. And finally, there are long-term financial goals, which are those that are often accomplished in more than five years, such as saving for retirement or purchasing a home.

Before making any investments, there is always a second factor that needs to be understood, and that is the 2L, which stands for legal and logical. If you choose to invest in financial products that are registered and licensed by the OJK, you should never be in a rush to acquire an investment instrument or product, nor should you allow yourself to be lured by excessive advertising offers. Pay great attention to the investment goods that are being made available to you so that you do not become involved in any dishonest investments. A fake investment will typically exhibit all of the following characteristics:
  1. It is unclear whether the investment is lawful because the business that is providing it does not have a permit from the appropriate government;
  2. Guarantees high returns in a short amount of time with no involvement of danger;
  3. Make available for purchase through social media, Whatsapp groups, and Telegram investment items that feature portraits of well-known artists, religious leaders, or public personalities;
  4. The information concerning the operation of the investing firm is not entirely transparent.
  5. The provision of advantages (bonuses) in the event that you are successful in recruiting new members;
  6. Guarantee the safety of the assets that were invested and offer to buy them back if necessary.

When you invest, you take on some level of risk in addition to the expectation of future gains. Investing in general, but especially in the stock market, comes with a number of potential dangers, including those listed below, most notably:

1. the possibility of reduced buying power

This risk is associated with the likelihood of a high inflation rate, which would result in a decrease in the real value of the income generated from investments.

2. Business risk (business risk)

Business risk is the possibility that a company's ability to produce profits will decline, which will, in turn, reduce the company's ability to pay interest and dividends to its shareholders and other stakeholders.

3. Interest rate risk

Generally speaking, a rise in interest rates will cause a decline in the price of securities, which will have the effect of lessening the influence of the value of securities.

4. Market risk (market risk)

If the market as a whole is optimistic (bullish), then stock prices will rise; conversely, if the market is pessimistic (bearish), then stock prices will typically decrease.

5. Liquidity risk

This risk is associated with whether or not a security may be traded right away without incurring severe losses.

You need to modify the investment instrument or product to your risk profile, financial position, and financial goals. This can be done by being aware of every risk that must be confronted while investing and having this awareness. In addition, make sure that you invest using "cold funds," which is money that is not truly used to satisfy the demands of daily living or as an emergency reserve. An explanation of the things that need to be understood in relation to investing is provided there. Therefore, my dear friends, let's get started investing today in order to secure a better tomorrow!