Why Investing? Does it really matter? Those are the questions that goes into my mind when I am still inexperienced in investing. As time goes by, I started to realize some investment method, including some products which are available in the bank that I worked in the past.
Then, my knowledge about investment increasing since I listened to the talk show of my favorite financial planner. When that guy creates a financial plan for someone, he always asks the purpose of his client, then after that he will list them one by one. Purpose of investing is important because the needs of each people are different. For example, the needs of those who already have children and haven’t would likely be different.
Find the Purpose first
Finding the purpose of investment is actually the same with finding the purpose to live. If we already know our purpose, then we need to list of the things that we need to fulfill. For example, if the purpose is to have a vacation in Taiwan, then we can understand all of the necessary things, such as finding flight ticket, accommodation, and every activity which will cost you money.
Different Purpose, Different Treatment
Turns out, finding the purpose to of investment is very important before taking the next step. Preparing money for vacation at the end of the year and pension fund that is still many years in the future will be completely different. Preparing for vacation at the end of the year can be considered as a short term because it is less than a year, so it is better to invest in products with a low risk because if we invest in a product with a high risk there might be a chance that the price will drop. Instead of yielding a profit, we loss some money. While preparing for a pension fee which can be considered as a long-term investment, it is better to invest in a high-risk product because those products usually give higher return, because if we invest in a product that gives low return, we might not able to reach our goal at the end of the period.
After determining the purpose, how about the fund preparation?
Fund preparation or how much money do we need to invest every month depends on the period of reaching our goal. The closer the goal, of course there will be more money that we need to invest. While the longer the goal, then there will be less money that we need to invest for each month. Means that it is better to start investing as soon as possible because we need to allocate less money from our monthly income to be put into our investment portfolio.
So, let’s say if you are curious about how much money do you need to invest for each month if your goal is to have IDR 1 billion in 10 year. So, I tried it in Moduit investment calculator and turned out I need to invest IDR 3,5 million for a month. And what if IDR 3,5 million a month is quite hard, then it is better to invest with a huge amount at the initial investment or at the midst of the period, for example when you get annual bonus, it is better to invest more during that time so it will reduce your monthly investment.
Preparing money to buy a house
Some time ago, when I was invited by Moduit to their event, they talked about preparation to buy property. For the sake of simplicity, let’s say I want to buy a house at the price of IDR 1 billion and the credit for housing is 9% per annum for 15 years. So, how much money needed for the monthly installment? Turns out we need to prepare 9 million per month to pay for the installment. Well, if you cannot set aside 9 million Rupiah per month, then you need to work harder to get more income.
Instead of talking about the whole payment which cost billion, how about we talk about the Down Payment which cost IDR 100 million. Of course, this down payment is more reachable for us if we pay it monthly.
Preparing money to buy a house
I have talked about investing regularly to reach the goal that has been set. And you may ask how to execute it? Actually, the concept is similar with paying credit loan from a bank, we pay same amount of money for every month until we reach our target. Investment instrument that can help us reaching our goal through doing that is mutual fund.
I have done regular investing for a quite long time, because by doing it regularly it will be more measurable. The amount of money that we need to set aside can be calculated through investment calculator provided by many investment platforms
So, here comes the next question, where should we start to invest? Nowadays, it is easy for us to invest, we don’t need to go to bank anymore. Everything can be one from our smartphone, including investing. One of the platforms that will help you to to reach your financial goal is Moduit.
Let’s Get to Know Moduit
Moduit sounds like “Mau Duit” (want money), well it is not a lending platform. Yet, it is a Fintech company which was founded in 2018. As one of the fintech company in Indonesia, it is already authorized by Financial Services Athorithy and Ministry of Informatics.
So far, the investment products available in Moduit is mutual fund. In total, Moduit has partnered with 11 fund managers, with total of 53 fund products including 10 Sharia products.
The interface is simple, elegant, and easy-to-use. For instance, when we want to choose the mutual fund, we can sort it, starting from low risk and low return which is money market, then fixed income, balanced, and equity.
To proceed for the payment/subscription in Moduit, we can directly transfer our money to the fund bank account that we want to buy.
Other than that, Moduit also provide you with investment calculator, on which you can choose your own goal and input the amount of money that you want to invest. After that, Moduit can give you recommendation to allocate your money in certain type of mutual fund based on your profile risk. The next step is you just need to choose what kind of product do you want to buy for each type.
Who wants to get more money? I will raise my hand if someone is asking that question. From now on, don’t procrastinate on investing, whether it is in mutual fund or other type of investment instrument based on your preferences.