3 Important Things About Investing For Young

What are the important things about investing for young couples? Young couples, if you are not currently investing then this is the right time.

What are the important things about investing for young couples? Young couples, if investment is not terrible

'Investment' sounds like a terrible word for some people. This is because it is not familiar with investment, but heard some frightening rumors from the people around about investing.

And investment is a great opportunity to make a profit. Especially if you are a young couple who just married.

There are many great needs that must be met immediately, if not invest will be difficult to meet all these needs in the future ini.t this you have not invested then this is the right time.

Know three important things about investing for young couples.
Opportunity advantage of investment is very big, but there are conditions. The requirement is you must want to know and learn the investment well.

This time I will discuss three important things about investment that young couples need to know

# 1 Recognize the Benefits of Cashflow and Capital Gain

There are different types of investment products that you can use. Starting from products such as precious metals, mutual funds, stocks, and other investments. Each investment product has different characteristics and advantages.

There are two types of common investment advantages: cash flow and capital gains. What's the difference? It sounds a bit complicated, but actually, these two things are not hard to understand.

Benefits of cash flow are benefits gained on a regular basis, for example, every month or every year. This advantage is obtained because the investment products that have provided interest on a regular basis.

While capital gain gains are only available once.

This is because to gain capital gains you have to sell your investment products. It is not possible to get a capital gain more than once for a single product.

Simply let's analogy these two types of profits like the advantage of having a chicken. You buy a chick for Rp 10 thousand. These chicks continue to be treated to large.

After the big chicken will produce eggs continuously. You can benefit by selling the eggs periodically. This is called cashflow profit.

You also have another option to sell the chicken. If you previously bought a chick worth $1, after the big cock it is priced more expensive that is $3.5.

If you sell the chicken then you get a capital gain of $2.5 (the difference between the selling price and the purchase price of chicks). Can you imagine the difference between cash flow and capital gains?

Young couples must recognize these benefits in order to choose the right investment product.

Remember, every investment product has different characteristics. The selected product must be tailored to your financial goals.

For example, if you want to increase monthly income on a regular basis then look for investment products that generate cash flow profits.

Meanwhile, if you plan to prepare children's education fund in the long term, you can use investment products with capital gains.

# 2 Risks vs. Risky

It is true that any investment product must have risks. Actually, not just investment products, everything you choose in everyday life is always at risk.

Understanding of the investment risk often makes people afraid of investment products. The reason may have often you hear, many people say that some investment products are too risky.

Unfortunately, only a small percentage of these people understand the difference between investment risk and risky investment.

Let's get these two things straight so you do not get caught up in the unnecessary 'fears' of investing.

Risks will always be present in every investment product. Products such as deposits that in fact are investment products without risk, in fact also still have risks.

If the bank that keeps your money is experiencing a disaster like a robbery then your money will also go missing. Although the fund is guaranteed if less than $200.000, there will always be risks.

Thus, there is no investment product that has no risk. But this risk can be overcome. The trick is to learn the characteristics and 'rules' of the investment product.

I advise you to never use investment products that you do not yet know the rules of the game. Unless your goal is to try and get to know it with little capital.

The same is true with investment products. If you do not know an investment product well, do not use the product first.

Why? If you force yourself to use an investment product that you do not recognize then you are becoming a risk product investment user.

Risky not because of the product itself, but because you do not know how to use it.

Imagine a world's fastest motor used by someone who can not drive a motor. Of course, the risk of accidents will be very high.

Does the accident happen because the motor is a bad motor? Not. But because the rider does not know how to use the motor properly.

So, the risk is not just investment products, investors can also be a risky investment if not studying the product well.

If you experience a sudden loss due to an investment product, try asking yourself.

Does the loss occur because of investment risk, or because you do not learn the rules of the game well so misstep?

# 3 Know Your Goals and Have a Plan

As a wise young couple, you certainly will not invest carelessly.

Investment is the way to achieve a financial goal. That is, you must first have a financial goal before investing.

Every young couple must have diverse financial goals. Whether it's personal financial goals as well as family financial goals. These goals can be achieved as targeted if properly planned.

Investing without planning is the same as walking without any clear direction and direction. Therefore, I suggest you have financial planning first.

Financial planning is very important for everyone, especially if you are already married. In the next few years, there will be a lot of big expenses, especially tuition fees for children.

Although you currently have no children, the education fund can be prepared early on. The faster planned it will be the less costly to be invested.

Wise Investment, Profitable Investment

Do not be afraid to hear the word investment. Investment is not a terrible thing, there are even many benefits that can be obtained by investing.

Especially if you and your spouse are building a new household.

Know the 3 things above as a first step to get to know the investment.

You and your partner must commit to keep in touch with deeper investments. That way you are able to invest wisely and achieve optimal benefits.