Nowadays, a lot of people, regardless of their generation, are starting to become investment literate. Ways to invest and generate profit are sought after by various groups. From time to time everyone will have new desires that add to the list of desired achievements. Likewise for the future. That's what makes people excited to start investing with careful preparation.

Have you started investing? Before we start investing, it is better to understand the basics of investing. The first thing to understand before investing is to determine the investment objectives. Understand first that the mindset when investing is different from saving, namely:

Investing with the motivation to get rich quickly is wrong and can lead to greed. If not balanced with prudence, greed can cause you to lose money. Here are 2 goals of investing:

1. Securing finances from inflation. In simple terms, inflation can be defined as a decline in the value of currency. For example, twenty years ago, Rp100,000 worth of money could be spent on a variety of needs, but nowadays that amount of money is only enough to buy a few items due to the impact of rising prices. You need to allocate some of your wealth to investment products that provide returns higher than the inflation rate, so that the value of your money is not eroded by inflation.
2. Achieving inflation goals. Financial goals are our efforts to achieve a certain amount of funds to fulfill a need in the future. Financial goals can be differentiated based on the timeframe: Short-term financial goals which are usually achieved in less than a year such as buying a new laptop or gadget for work needs, medium-term financial goals which are usually achieved within one to five years, such as education fund, mortgage down payment, or pilgrimage, and long-term financial goals that are usually achieved in more than five years, such as retirement funds and buying a house.

The second thing to understand before investing is to ensure that your investment method is Legal and Logical. Invest in financial products that are registered and licensed by OJK, and never rush to choose an investment instrument/product and be tempted by excessive promotional offers. Look at the investment products offered carefully, so as not to get trapped in fraudulent investments. The following are the characteristics of fraudulent investments:

1. The entity offering the investment does not have a license from the competent authority (unclear legality);
2. Promises big profits in a short time with no risk;
3. Offering investment products through social media, Whatsapp groups, Telegram, which include photos of artists, religious leaders, or public figures;
4. Information related to the investment business process is not clear
5. Offering benefits (bonuses) if successful in getting new members;
6. Promise that the invested assets are safe and provide a buyback guarantee.

Sources:

• https://lifepal.co.id/media/tujuan-investasi-yang-bikin-keuangan-sehat/
• https://koinworks.com/blog/risiko-investasi-yang-perlu-diketahui/#Risiko-Suku-Bunga
• https://www.bareksa.com/berita/belajar-investasi/2021-01-19/heboh-beli-saham-pakai-uang-panas-ini-pentingnya-investasi-dengan-dana-dingin
• https://sikapiuangmu.ojk.go.id/