Jakarta, CNBC Indonesia – The Composite Stock Price Index (IHSG) suddenly strengthened to 7,236.98 in trading on Tuesday (2/4/2024), and there are still many blue chip stocks experiencing correction. But that doesn't mean you can buy it cheaply with all your salary and holiday allowance (THR).

Investing without direction is certainly very dangerous, especially if you instead hope for short-term profits from this momentum by using all your money.

When market movements do not match expectations, then cutting loss is something you can do to prevent your investment capital from decreasing. Always remember that, for those of you who are married and celebrating Eid, there are still several other expenses that must be anticipated.

For those of you who want to use your THR and salary to invest, pay attention to the things below.

Get to know the investment objectives

Have a clear reason why you should start investing. Maybe you want an abundant pension fund in old age, to send your children to top schools, and so on.

Without a clear goal, your investment will only become an activity to increase money or wealth. As a result, you may take profits prematurely and this will clearly make it more difficult for your financial goals to be realized.

Investing should not make life difficult

A simple lifestyle has many benefits, one of which is that it makes it easier for you to save and invest. But that doesn't mean you have to reduce the quality of your life for the sake of this one thing.

With a poor quality of life, physical and mental health can be disrupted, which can later lead to increased expenses related to this risk.

Invest sensibly and build a quality life. With a quality life, you can get lots of ideas to increase your income which will make it easier for you to invest.

Have cold hard cash

One of the advantages of going all in on shares or other investment instruments is the large profits.

Obviously, 1% of IDR 1 million is certainly different from 1% of IDR 100 million. It's not surprising that many people like to invest in a lump sum (one time paying a large amount) for one investment instrument.

However, to be able to do that, you must use cold money or money that is not allocated for any short-term or emergency needs.

So that you can have it quickly, you can allocate a minimum of 5% of your salary every month to several savings or money market mutual funds. Don't use the funds until they have accumulated to the amount you want.

[Gambas:Video CNBC]

(aak/aak)