Things You Need to Know When Going to Investment Seminars

investment seminar

Have you ever been to an investment seminar?

I like going to those free investment seminars and gatherings because I get to know many different products offered by various banks and financial institutions. If you are interested in learning more about financial products, you can come to these events with some cautions.

Although it is often called a seminar, more often it is more about selling investment products. Even if it is a financial institution’s consumer gathering about economic outlook, at the end, we are often told about some new product offerings.

Sometimes we get emotional when hearing the special offer available that day.

For example, for the first 7 people who open an investment account with a minimum balance of Rp 100,000,000 will get a cashback of Rp 300,000. You can use the money to trade, but you are not allowed to withdraw for the first three months. We feel like we are getting some free easy money, but when you really calculate it, it is not really worth it.

If you are loaded with lots of money, that amount may be a spare change for you and it does not matter where you put it. However if you are not, you need to think about the opportunity cost of putting that money there. You need to think whether there are better alternatives for you. 

What do you need to do if you come to these seminars?

  1. Come with a clear goal in mind – is it just to learn about an investment product? Then come to learn and do not buy anything.
  2. Ask a lot of questions. If you do not understand the product, do not invest in it.
  3. Get a second opinion from someone outside the seminar, preferably those with financial knowledge and unrelated to the financial institutions that are offering the products. If you have a trusted certified financial planner, you can ask him or her.ziggy second opinion
  4. Be skeptical, especially if they are offering something that is too good to be true because it often is. If they are saying that it is a no-risk, high return investment, then run away as fast as possible because nothing is without risk. The higher the return, the higher the risk.
  5. Do not get pressured by the account officers or sales people, especially if they say that if you do not take action now, you will miss out on the profit. Let it go! There will be other opportunities to make profit!

Just like reading books, financial blogs, going to investment seminars can help you to be more knowledgeable about financial products. Use the opportunity to learn and may what you learn take you closer to your financial goals.

Learn and Grow

Inge Santoso, B Com, CFP®

Interest – Part 1 Simple Interest

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When we talk about investment or borrowing money, we need to understand interest.

For most of us, we had learned how to calculate interest when we were at school, but we might not put much attention to it because we were too young to understand its implication. We only learn the mathematical aspect of it without understanding how important it will be when we grow up and start saving, investing or borrowing. 

Today we will learn about SIMPLE INTEREST. Interest is how much you pay for the use of money. If you borrow money, then you pay interest. If you lend or invest money, then you earn interest.

Example 1: If you invest Rp 1,000,000 and the interest rate is 12% a year. How much interest will you get in 3 year?

You will get an interest of = Rp 1,000,000 x 12% x 3 = Rp 360,000                            

The amount of money you will have after three years is

Rp 1,000,000+ Rp 360,000 = Rp 1,360,000.

 

Example 2: If you borrow Rp 5,000,000 and the interest rate is 10% a year. How much you will have to pay if you borrow for 3 years?

You will have to pay back  = Rp 5,000,000 + ( Rp 5,000,000 x 10% x 3)

                                         = Rp 5,000,000 + Rp 1,500,000

                                         = Rp 6,500,000

 

Tomorrow, we will learn about COMPOUND INTEREST.

Learn and Grow

Inge Santoso, B Com, CFP®

Tips to Put Money into Savings Account

ziggy money spend me

I know some people find it difficult to save money. It’s not because they do not have enough income, but because of their spending habit. When they have money, they just feel like spending them all.

There are many reasons why they do it. For some people, it is because of some traumatic events in the past, upbringing or due to friends’ influence. For some, it is because of their personality type. Certain type of personality such as Influence or Sanguine tends to seek pleasure and want to enjoy things now. They tend to be unorganized and won’t be bothered to track their expenses. (If you want to know more about how personality type can influence your finance, you can attend our seminar “Mastering Your Personality for Financial Freedom”)

These are some tips to help you put money into savings

  1. Auto-debit – automatically transfer some money to a separate account straight after you receive your income or salary
  2. Pension scheme provided by the company – some of the salary is automatically put into your retirement account and you can only access the account at certain age
  3. At the end of the day, take one piece of third biggest denomination of money from your wallet and put it in a jar. At the end of the week or month, deposit that money into your savings account. For example, if there are a few 100K, 50K, 20K and 10K in your wallet, take one piece of 20K (third biggest denomination) and put it away. If you do this for a month, you may get around 500K that you can put in the savings account.
  4. When you get some change after paying for something, put the change into a separate wallet and save them. Don’t forget the coins because they can add up. For example, when you pay for 36K lunch using 50K denomination, put away the 14K and save them.

I hope these practical tips can help you put more money into your savings account. Start today! Put into practice and see you much you have saved by the end of the month.

If you have other tips to share, please do so in the comments.

Learn and Grow

Inge Santoso, B Com, CFP®