Hari Raya allowances or bonuses are one of the things we have been waiting for. Of course you will use it for the needs of the holidays, yes. But because it may not be used at all, what if you turn it into money again?
The trick, according to financial planners, is to allocate it for investment. But you also need to be careful because it's not just any investment, right! But what can be ascertained is legal.
Understanding Risk Profile
The next step that needs to be taken before investing your bonus money is to understand the ability to accept risk or what is called a risk profile.
So, what kind of investment is suitable for us, if I always ask first or always suggest, first we check first, first understand what our ability to accept risk is like.
So if you belong to the conservative category, it is not recommended to choose an aggressive investment instrument. Therefore, there are indeed some investment products that may not be suitable for some people.
An example of a conservative category of investment instrument is a money market mutual fund. Meanwhile, the aggressive ones are equity funds.
Share the Risk
What does it mean? basically what we do does have its own risks, not least in terms of investing.
"Then again, we have to understand how to share the risk. Don't invest in the same instrument," he said.
"High-risk high return, low-risk low-return. This means that if we want high returns, we automatically have to be prepared to accept high risks as well," he said again.
However, again, if you are not ready to take a high risk, then don't expect to get a high return either. In addition, you can divide your assets into several types of investment instruments. The goal is that when your investment decreases in value, you still have investments in other 'helpful' instruments.
Do not invest in the same instrument. So, if you already know the risk profile of a product that is suitable for us, and then understand how to share the risk, that's even better.
Use Cold Money
Finally, it is recommended to use cold money, not hot money.
The point is money that does not affect the daily economic aspects. In other words, you can't eat and activities falter, because you have used 'hot' money, aka for daily mobility.
So that's the way to make your bonus multiply. Interested in trying it?
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