Saving or Investing?

Should we rather have savings than investing? That’s what people think in common. The biggest mistake that we often chose to feel save and comfortable about our money instead of investing it. 

As I’ve seen in youth nowadays, I want to encourage the youngs out there to start investing before it is too late for them. In senior highschool or I also suggest this for college students as well , that most of them already have their id card as it is one of the requirement to open an investor account.

But why should we start investing as soon as possible? So as a beginner everyone takes time to learn and time is also the answer in long-term investing.

For people who are unfamiliar with investing, what is investing? Investing means putting time and effort into something with long-term benefits. In this case you also need to include money of course.

So based on that information, we can conclude that investing in this case is allocating funds by committing as an “owner” of a company and expect a higher return in the future.

Here are the difference between trader and investor that had made people missplay their role in investing. A trader is a person who analyze a company based on their technical such as stock candles and indicators.


But investor is a person who analyze a company based on their fundamental such as reading the news and make their decision of rather buying or selling. I recommend you guys as an investor.

Why? because as a student or a fresh graduate we usually be preoccupied by school stuffs or internship assignment ,so you have less time to daily-analyze stocks,bonds,etc.

Maybe saving your money in the bank sounds good because it is the simplest thing. You don’t need to do anything but wait for the interest compounding through years.

Let me tell you something. BCA ( Bank Central Asia) one of the biggest finance company that does banking only gives you 0,45 % if you have 500 millions rupiah in side your bank account a year! But investing maybe sounds high risk but it also can gives you a high return too.

“The economy, as measured by gross domestic product, can be expected to grow at an annual rate of about 3 percent over the long term, and inflation of 2 percent would push nominal GDP growth to 5 percent, Buffett said. Stocks will probably rise at about that rate and dividend payments will boost total returns to 6 percent to 7 percent, he said.”-Warren Buffet-.

As we can see now, investing gives you 14-15 times bigger then just putting your money in a bank but I want to emphasize that you can expect this high of returns with a good basic knowledge.

And like what I said about the risk, sometimes an investor should do a cut-loss that means they sell at a lower price to stop being taken by the downtrend.So you should also consider about your risk tolerance as an investor.

Higher the risk,higher the return is not always the main point of investing. You can make a lower risk but also getting a higher return by using “Margin of safety” by Benjamin Graham. Your “investing carreer” will be a lifetime of studying.

Every trade that you make will gives you new lesson either when you get profit or when you loss your money. Also as I said before, by being an investor you must read news and do analyzing stuff that ends up with a speculation of an upcoming uptrend or an upcoming downtrend.

You’ll learn a lot by being an investor.When you read the news about export and you can analyze about The Global Market, when you read company’s financial report you can analyze the growth of a company,etc. Beside a greater income in the future it also gives you much more lessons instead.

In this such young age, why don’t we explore our thoughts. Investing is beneficial for us , youths. By investing in this young age, you will get the experiences of arranging your financial for the future and also building your own equity for maybe you will run your own business someday.

You’ll also learn to control your emotion that is crucial for trading in the market. Once you do “the emotional trade” you will be addicted to do more emotional trades. This way I can say being an investor is also being an adult. So, invest! And you’ll know the true meaning behind the word ‘wise’.