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Why You Must Start Investing Today: From Savings to Stocks

Learn why saving money isn’t enough and discover the best investment options like deposits, bonds, mutual funds, and stocks to grow your wealth.

Many people hesitate to invest because they simply don’t know why it matters. The truth is, money loses its value over time. What you can buy with IDR 10 million today will not be the same five years from now. Prices increase, inflation happens, and your purchasing power shrinks.

This is why investing is not a luxury — it’s a necessity. By investing, you make your money work for you instead of letting it slowly lose value in savings accounts or piggy banks. In this article, we’ll break down six different places to store your money, which ones count as real investments, and how to get started even with small capital.

Why Saving Alone Isn’t Enough

Think about it: movie tickets that once cost IDR 30,000 now average around 50,000–60,000. Public transport fares doubled in just a few years. Inflation steadily erodes your cash value.

If you only save your money — in a piggy bank or in a regular savings account — the nominal amount may stay the same, but its real value decreases. That’s why you need to learn where to grow your money wisely.

6 Money Storage Options Compared

1. Piggy Bank

Putting IDR 2 million in a piggy bank for five years leaves you with the same amount: 2 million. No growth, no interest, and definitely not an investment.

2. Savings Account

While banks offer interest, it’s very low (around 0.64% per year) and often eaten up by monthly admin fees. For small balances, your money can even shrink. Safer than a piggy bank, but still not considered an investment.

3. Bank Deposit

Deposits lock your money for a fixed term with interest rates around 4% per year. After tax, your return is modest — about 17% growth in five years. It’s technically an investment, but it often just keeps up with inflation.

4. Bonds

Bonds are essentially lending money to governments or corporations. They usually yield about 6% annually, taxed at only 10%. Safer than stocks and generally more profitable than deposits. A real investment option.

5. Mutual Funds

Managed by professionals, mutual funds can deliver higher returns. With a 10% annual return assumption, IDR 2 million can grow into IDR 3.2 million in five years — a 61% increase. Returns vary depending on the type of mutual fund chosen.

6. Stocks

Stocks have the highest potential returns, averaging 10–12% annually over the past two decades. With compounding, IDR 2 million can grow into around IDR 3.5 million in five years. Higher reward, but also higher risk.

Which Options Count as Investments?

• Not Investments: Piggy bank, savings account
• Investments: Deposits, bonds, mutual funds, stocks

“Money sitting idle loses value. Money invested grows and protects your future.”

Practical Steps to Start Investing

You don’t need millions to begin. Today, you can invest in mutual funds or buy stocks with just a small amount using digital platforms like Ajaib Sekuritas. The process is simple, regulated by OJK, and designed for beginners.

• Set aside a small percentage of your monthly income.
• Choose the right instrument (mutual funds for beginners, stocks for higher growth).
• Use licensed and regulated platforms.
• Keep learning — investing is a skill you build over time.

Conclusion

Investing is not just for finance experts. Anyone — regardless of background — can and should invest to secure their future. Inflation is real, and saving alone won’t protect you. Start small, stay consistent, and let your money grow over time.

So, where will you start? Share your thoughts in the comments below and don’t forget to spread this article to help your friends start their investment journey too!

Labels: Finance

References / Sources

• Video: Kenapa Kita Harus Berinvestasi
• Channel: Saham dari Nol
• Link ke materi asli