Indonesian Economy Recovers, Keep in Mind these 5 Things to Stay Financially Healthy

INVESTMENT - JAKARTA. Following the increase in the people’s mobility due to the controlled Covid-19 cases, the Indonesian economy is predicted to improve in 2022. Aside from the increase in public consumption, other factors such as the revival of the tourism industry and the non-increasing of electricity tariffs for industries and businesses also helped maintain the economic recovery momentum.

In response to this, Bibit.id, an investment app for mutual funds and Government Securities (SBN) for beginners, encourages people to be smart with their investments to achieve various financial goals. According to William, Bibit.id PR & Corporate Communication Lead, the last few months have shown increase in public interest for consumptive purposes such as vacations and buying various goods.

“The momentum of Eid al-Fitr and school holidays that happened consecutively encouraged more consumption in the society. The permission for Lebaran homecoming by the government as well as the easing of tourist travel requirements have brought certain pleasure to the people. However, we invite people to continue being wise in making decisions in regard to their finances,” William said in a press release, Monday 27 June 2022.

William added, there are at least five things that everyone needs to pay attention to so that they remain financially healthy.

Firstly, make sure your expenses are not higher than your income. This means that people are advised not to spend more money than they earn or have.

Secondly, know how to invest properly. “At Bibit, we always encourage users to invest according to their respective risk profiles, financial conditions, and financial goals that they wish to achieve. The Robo Advisor feature can be used for free to help users know their risk profile and balance risk with the financial goals that they want to achieve,” William said.

Bibit is also equipped with a Goal Setting feature that makes investments more focused to achieve financial goals. For instance, for those who intends to buy an apartment for IDR 350 million within the next five years, Bibit’s Goal Setting feature can calculate how much money you need to invest each month.

Third, understand that consistency is key in achieving financial goals. In this regard, Bibit has the Nabung Rutin (autodebit) feature for users who own Bank Jago and GoPay, so that they can invest consistently and without having the risk to forget. The philosophy behind the Nabung Rutin feature is the Dollar Cost Averaging (DCA) method. DCA is a simple method where users invest the same amount of money every month or every week.

This strategy will help discipline the users to buy more units when prices go down and less when prices go up. Despite the economic conditions. It does not matter if the price goes up or down. This method is also advocated by investment gurus such as Warren Buffett.

Fourth, if we belong to the beginner category investors with limited knowledge of the intricacies of investing, try to invest in investment instruments managed by professionals. For example, investing in mutual funds is very simple and is recommended for novice investors because investing in mutual funds means that we entrust our money to be managed by a professional investment manager. Furthermore, the Investment Managers at Bibit have been strictly selected based on legality, track record, and ability to deliver optimal investment returns.

Lastly, ensuring that platforms that help people invest must be the ones that are licensed and supervised by regulators in the financial services sector. In this regard, Bibit is an investment application that is licensed and supervised by the Financial Services Authority (OJK).

Thus, people can invest in peace without worrying about being ensnared by fraudulent investments that are clearly detrimental. In addition, Bibit has also received recognition as one of the best investment applications in the country, proven by the achievement of The Best Fintech Company award at the CNBC Indonesia Awards 2021 and the Indonesia WOW Brand 2022 award from MarkPlus, Inc. for the investment application category.

“What we do is simply to emphasize that anyone, regardless of their social and economic background, has the right to a better financial future through correct ways of investing in the capital market. In terms of using the application, Bibit continues to prioritize convenience and security in every feature that we deliver,” William concluded.