money management tips

How to Invest for Beginners? Here is the Guide

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How to invest – The investment’s necessary. But many who do not know how to do it. How do investment tips, especially the way the investment for beginners?

You must be an investment if it is to achieve financial goals. Children’s education funds and pension funds, for example, can only be realized by the investment.

There have been many who understand that.

The thing is a lot of wrong in choosing investments. Not a good thing, even a loss.

Why Need To Invest?

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Because there is inflation, reaching 6% a year. Inflation is an indicator of the increase in the price of the goods.

Put the money in savings interest rates are 3-4% a year. Money in savings will not be enough to cover the cost increment of life (6% vs 4% inflation interest).

From here, you can see the fact that saving will not bring You so rich. Poor Yes. Not an auspicious instrument actually. Ironically, there are still many who do not know this matter of fact.

Because relying on deposits in savings will not be able to realize the dream of finance, therefore you should invest. This is because of investment profits above inflation.

How To Choose An Investment

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How to make an investment? There are at least three things that you need to understand.

1. What is your goal?

How to invest in the first novice, of course, must first determine the objectives. Financial Planner, Ligwina Hananto, never deliver What you ‘ purpose ‘.

The investment is the instruments, tools, to achieve financial goals. So it’s not an investment destination. You must specify in advance the goal for what, want what and for when.

That goal was what, how and when. So, for example, the goal is Education Fund, then you must determine how the target.

After you know your new goal, evaluate where the most suitable investment instrument for realizing those goals. In General, the guideline is the investment with the highest profits and the greatest risk is intended to target the longest homage due to the longer range of the investment then the risks can be controlled. So any otherwise.

2. Risk & Return

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High profit; the risk is also high; low risk, lower profits. That’s the basic investment.

So if anyone offers investments or whatever, with a turnover of exorbitant and said that that the risk is low, you should suspect or even do not need to waste time listening to it. Because it means that against reality and facts in the financial world that is already more than 100 years.

From here you can already understand that when investing in high return then it should be prepared with high risk. So hunting for investment with the highest profit is not always the best, because it is very likely you are not ready with the risk.

3. Should understand what Investment

A few things that need to be studied and understood when the investment will do:

The legality. Whether they have permits investment of authorities? In General

The existence of a permit is used to ensure that the Manager had already passed a series of screening and certification authority and if it later appears the problem or dispute there are means of the complaint to seek a resolution.

Understand The Risks. Unfortunately, not all people want to pass on the side of this risk (primarily those who are selling products to you). Therefore, because this is your money, you should repeatedly and critical skinning possibilities and where the location of the loss.

Believe me, if it had known of the potential losses from the beginning, when incurred losses, you are more ready to accept it. That I’ve experienced.

Understand ‘ Business Model ‘. Every business must have a ‘ model ‘ of how to generate a profit. How this business works so that making a profit. That you need to investigate and understand.

The goal to knows if this business is real or fabricated; legal or illegal; What is the advantages and the risks are worth it or not. If problems arise, could soon be learned the subject matter issue so that it can decide whether to continue to invest or withdraw.

What if you do not understand the business problem? Yes, don’t invest there.

How can you evaluate whether its bid is reasonable, feasible or not, if not understand? There is a famous phrase by the bankers when evaluating the credit application from the customer: “trust but verified”. You may believe but need to make sure the information provided is accurate and true.


Invest sue you learn, understand how. Understand risk and return, a business model. Trust in others, especially legal professionals are fine. But, ultimately it is your money, who will receive the consequences (profit or loss) is to you, so you should be accountable for how the money is managed. Not someone else.

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