12 November 2018
"The Right Way to Save Money" Especially for those who earn Rp10 million or below
By Frandy Efraim Fritz Karundeng

The reason why we will never save money.

You underestimated in saving money (by Chandra P. Negara)

Jim Rohn said "if it is easy to do, it is easy not to do." This is because we often times underestimate, we underestimate the insignificant value of Rp 5.000. Now, only Rp 5.000, we can save gold, etc. In fact, we usually say, even for daily needs, I can barely survive, what can be saved?

Successful people always say Pay Me First. Not to pay the installments first, but rather to pay our needs first, because even the needs of desires will never end. Warren Buffet said: "Do not save what is left after spending, but spend what is left after saving"

The funny thing is, we don't want to save, but at this time there is a discounted price of mobile phones and can be paid in installments 36 times, and it's bought immediately, even though he said there's no money to save. Why? Because you always underestimate saving. That's why, you will never save.

You must make Saving a priority. We must set / lock a certain amount for our allocated savings.

Saving must be our primary need, in addition to food, clothing, shelter. How can we level up, to secondary / tertiary if we don't save.

The wrong way to save

Today many people are starting to realize that they are saving but there are still some that are wrong or not right.

Wrong Motivation, How to save the wrong motives: Saving because of prestige

During this time, maybe you worked hard, saved income, but ended up saving because of prestige. You save instead of being used as your assets, but the assets are disbursed for the purpose of showing off. An example of a Gadget / Smartphone problem. It doesn't matter to buy a gadget that costs tens of millions, almost tens of millions, even. But we go back to the smartphone / gadget what is the function? The most important thing as a communication tool, the features that support our activities, and the camera. Well if you buy a gadget because of this factor, it means you buy a function, around 5-8 million rupiah.

Always emphasize don't buy prestige, but buy the function. Not only gadgets, but also other examples such as motorbikes, cars. as a means of transportation, which takes you from one place to another. Well, if asked, why buy a gadget that costs tens of millions, because of the reason for the brand, prestige with other friends.

Whereas if we buy gadgets, motorbikes / cars, that is an example of a fixed asset whose price / value in the future continues to decline, if one day it is sold. Not to mention the maintenance costs, subject to annual taxes. Then finally the value of the money you save will shrink.

How about the opposite if we buy more high-priced goods, for example we buy land / fields, property, gold. Which value in the future tends to increase. Imagine the price for the next 5-7 years? It will definitely double.

With the same money if you save it properly, you will definitely get multiple benefits. Upside down if you save to buy with prestige, for example motorbikes, gadgets, etc. the future value will go down. If we work 10-20 years, and the result is a lot of property, land, etc. that's cool. But if the car is a lot, the gadget is a lot / the most expensive is cool too, but remember that the car keeps on dropping, the gadget is in the middle of fast changing of technology, a year later it's been missed.

So, if you already know that you have a wrong motivation, then your culture changes.

Saving because of the environment / situation

For example because of the situation, holidays. For migrants, for example those who return home because of Christmas, usually a lot of money is spent. Therefore, places like pawnshops, consumer credit are increasingly crowded. It's not impossible, but try to think again. The money we get, holiday pay for example, will only run out to beautify something whose value will decrease. It's good if we can use holiday pay to become our assets, for example property.

If we are financially intelligent, we will think about assets, assets, assets. If not in the future your assets will continue to decrease.

May the mortgage, but remember we don't want to live just by paying off debt. Now if the situation is like that, don't just tempt us, we have to force ourselves to set it aside to become an asset again. At least one year plus one property, etc.

The right way to save

Robert Kiyosaki, he always said that "If you want to be rich, that doesn't mean that you make a lot of money. But the most important thing is how much money you save. So about saving money is very important.

There are 3 instruments that are right for saving that Robert Kiyosaki suggested,

Specifically I specialize for those who earn less than 10 million (employees or entrepreneurs)

Stocks is a very good instrument. Here I want to say that you are taught to save shares (investors), not to play stocks (traders) (watching the rise of stock prices, buying and selling) If you want to buy a stock instrument, make sure that you are already registered in the financial services authorities. If it's official, in an official place, for example banking. When you buy stocks, you are equal to buying a company with the value of your ability, and make sure saving is consistent. If we save in a bank it is fine, but if the amount is small, the interest we get is very small too. It's different if we save with a large amount. How can we buy shares? You have to go to a securities company, there you will be taught how to open a stock account and so on. Only with a capital of 1-2 million rupiah you can buy stocks, save stocks and you are consistent every month, that's amazing. Well, if you want to know more details you can come directly to a securities company, there will be recommendations for stocks, etc.

Property – A lot of people get a lot of money from selling and buying lands. And that is true, because the property is mostly worth going up and never shrinking. So if you have funds, so you can start to pay in installments. Try to find a house / apartment that can be paid in installments of one million per month and there are already schemes, usually in big cities like Surabaya, there must be. This is a type of saving method that is good, you pay in installments for something whose value must rise in the future. Furthermore, of course you have to know about the quality of the developer.

Gold - The most recommended method is to save golds. Golds, among others, there are gems, precious stones, etc. But here what I want to say is about Gold. Why should it be gold, because the price continues to rise, in 2000 the price of gold per gram was only 70-80 thousands rupiah, in 2018 at the moment, around 650 thousand and its about nine times the initial amount. The second one is gold is very liquid, can be disbursed at any time, if there is an urgent need, school, weddings, etc. If the others are not liquid, property for example. Can be paid in installments, at a pawnshop. If in the past we knew that gold could not be debited in installments, and it must be in lumps, for example 100g, 1kg, and of course a very large amount of money to buy it. Finally, people who earn 10 million are very difficult to buy gold in direct chunks. I do not recommend buying gold in the form of jewelry, because the valuation value will decrease. The most recommended thing is to buy the gold chunk. Now how to buy, just can't afford it, let alone 100g or 1kg? Now there is, one of the SOEs that facilitates this, which is saving gold. Only with 6 thousand rupiah, you can buy 0.01g. And the balance is not in rupiah, but in how many grams of gold you have saved. This is very good, you can pay in installments and save gold. 0.01 per month or you have so much money to save. Little by little, after a while you can have 10 grams of gold. We don't have to buy it in large quantities. The important thing is that you are consistent. If you are able to grow bigger, that's certainly better. But if you can't save more, it doesn't matter, it's small and big is relative. You can start with 5% of your income and so on. The important thing is you must learn and start to save and be consistent. Thus, surely you will definitely be a billionaire someday. Examples of Warren Buffet, one of the richest people in the world. He has one advantage, which is to save money. The example of the company he bought, the Coca cola company, only bought it starting with $ 1 US. But he consistently saved, until finally one of the biggest shareholders.