Today a loaf of bread is sold for $ 5, Five year ago only $ 3, with the same size, brand, type and taste. Does the seller take more profit with that rising price? Maybe yes, maybe no.
It’s product cost increases too. But in common, we know that the price is increasing from time to time. It’s mean our money begin “shrink” in value. With the same amount of money, we can’t get the same things in future.
Can we really “protect” our money’s value? The answer is NO. But we can make it “grow” as fast as or faster than price growing.
Let’s imagine our money is a seed and then we buried in a soil, after a while it’s growing
and produce some fruit. Just like that; Yes, Just Like That. BUT remember only from the good soil, the seed can grow become a good plant that produce the good fruit.
We should make the money growing. How? I-N-V-E-S-T-I-N-G.
Investing in the right place and the right time. There is various investment instrument that we can use, and there are some expert to do that for us.
We can invest in stocks, bonds, lands, time deposits, money market.
Here some important matters that we should have to think and know before investing :
- Set the target and the budget or limit amount for investing.
- Risk and Return. Every action has it’s risk. So the investment. High risk high return, Low risk low return, and No Risk No Investment.
- Time / Period. Decide the time to start and end investing. Invest for long time period, because some investment in the short run usually have greater fluctuation than long run.
- Invest in various type of instruments.
- Don’t forget to consider the tax impact.
Have a nice day !!
