After going through the quarter-life crisis phase, many people begin to realize that a financial journey does not end at simply saving money. Once the savings are in place, the next step is to find ways to make that money grow.
When entering the workforce for the first time, it’s common to have a more consumptive mindset. However, over time, that mindset needs to shift toward being more cautious and strategic. The focus should evolve from merely saving money to growing it through investment instruments with the best potential—this is what’s called a shifting mindset.
From Saving to Investing
Saving or putting money into a time deposit is indeed one way to grow assets. However, when stepping into the world of investing, it must be accompanied by proper education. It’s important to understand which instruments are suitable and how to manage them. Awareness and strategy should go hand in hand.
Signs of Healthy Finances
According to Ka Theresa, there are several indicators that financial health is in good shape:
- Avoid consumptive debt, and focus on positive debt. For example, if you want to buy a smartphone worth Rp20 million, make sure you already have assets worth more than Rp20 million.
- Installments are fine, as long as they are calculated wisely. The problem arises when expensive items are purchased without sufficient funds.
- Never use “hot money”—the funds meant for daily living expenses—for investments or installments.
For tertiary needs, make sure the price does not exceed 10% of total assets. If paying in installments, ensure they don’t become a financial burden. If paying in cash, the same 10% rule applies.
Education: The Most Valuable Investment
Education is one of the most valuable forms of investment. To keep growing, continuous learning is essential—not just about finances, but also strategies to develop assets. Much like managing a portfolio, understanding the methods, risks, and opportunities is crucial.
Getting Started with Asset Management
Once an asset check-up is done, the next question is: How can beginners choose the right assets?
Ka Theresa categorizes assets into several types:
- Cash assets
- Debt assets (productive and positive debt)
- Ownership such as land and stocks
- Digital investments through brokers
- Even knowledge and skills are considered assets
For beginners, it’s best to start with low-risk instruments such as bank time deposits. From there, you can explore higher-risk assets like U.S. stocks. While they offer higher potential returns, stocks also come with significant risks—especially if the fundamentals are not well understood. Many factors can influence market movements, making education the ultimate key to success.
💡 Don’t forget to follow the next part and watch Profitalk Episode 2: “Next Step Upgrade – Build Your Financial Assets (Part 1)” to gain direct insights on how to start upgrading your financial journey!