When payday is a long awaited day for workers. The list of bills that must be paid has also been queued to be paid. Often the salary just rides past without being able to set aside money for investment. Even though the minimum wage is minimum wage, if you plan and manage your finances properly, of course there is still money to invest and save.
What should workers who have a minimum wage pay to be able to invest?
Recording Routine Expenses for a Month
The first thing to do is to record monthly expenses so you can have an idea of where your salary is spent. Expenses that have been recorded are then grouped into living , saving , and playing .
The living category includes zakat/alms, living expenses, consumer installments, and transportation costs. Savings consist of house installments, saving for emergency funds, investments, insurance protection, and saving for vacations or other purposes. While playing is a budget for lifestyle such as entertainment, shopping, snacks, hanging out, and others. If you already know the expenses for one month, is it time to evaluate whether the expenses are in accordance with the priority scale? Don’t let your lifestyle exceed your earning capacity.
Create a Budget
A simple method for creating a monthly budget is to use the 50-30-20 method. This means that the budget for living is 50%, for saving is 30% and for lifestyle is 20%. This is only in the form of budgeting only. You don’t have to spend your entire budget. Even though you have an allocation of funds to pay installments, if you don’t have installments, the money can be used for savings or investment.
Determine the appropriate risk profile and investment instruments
You need to know your own risk profile before starting an investment. There are aggressive, moderate, or conservative investors. This risk profile is useful for determining which investment instrument is right for you. After knowing the risk profile, the next important thing to know is knowing the investment time horizon . What are your investment goals for the short, medium, or long term. This time horizon difference will of course be different in choosing investment instruments.
Mutual fund investment is one of the investment instruments that can be used to achieve financial goals according to the time horizon you want. Mutual funds are investment instruments that collect funds from the public which will be placed in a securities portfolio by the Investment Manager. If you are interested in starting investing in mutual funds, you can choose from a wide selection of mutual fund products at PermataBank. You can even start from IDR 100 thousand.
Some of the advantages of mutual funds at Permata Bank are:
- Investment diversification
Investing in Mutual Funds provides benefits in the form of investment diversification and risk distribution by investing in several investment instruments. You can still have mutual funds with a small nominal.
- Professionally managed Mutual fund
portfolios are managed by investment managers who are experienced in their fields. Of course, the Investment Manager chooses a securities portfolio by conducting an in-depth analysis. You can also study mutual fund performance by looking at the prospectus and fund fact sheet of each mutual fund product managed by the Investment Manager.
- Not taxable
Until now profits from mutual funds are not taxed. In contrast to other investment instruments such as deposits and bonds which are subject to tax.
- High liquidity
Mutual funds are investment instruments that have a high level of liquidity. You can sell it and cash it out in a few days. Mutual funds are perfect for those of you who have short-term financial goals or as a place to store emergency funds.
Even though you have a UMR salary, you can still have investments to achieve your financial goals. Immediately start investing in your mutual funds at PermataBank now.