My relatives and friends ask me about where they should put their "unused" money so that it would generate more income. Well, rather than keep telling the same thing over and over, I'm just gonna write down the general advice that I usually give so that the next time they ask me, I'm just gonna refer them to this post instead. One thing to underline here is that I'm gonna assume you don't have any pressing financial responsibilities (like debt) that you need to settle first.
Now, let's get started. I only have a few things, though:
1. Invest in Yourself
If you're still in your 20s or 30s, the best investment is to upgrade or learn new skills. This will multiply your income potential and propel your investment (in terms of money) in the future. You have the best currency in the world, which is your time. Make the best of it. Learn new skills or enhance your current expertise, and your future self will thank you.
2. Explore Basic Investment Instruments
After that, if you still have some money lying around, you can start looking for investment instruments. Index funds and gold are good starting points, and generally, that should be enough for most people. For those in Indonesia, I often recommend an app called "Bibit" due to its accessibility and ease of use. Look for similar platforms that offer easy access to various investment instruments like index funds and gold.
3. Educate Yourself Further
While you're at it, if you're still curious, you can learn more about investing. Avoid investing in stocks, trading, or cryptocurrency yet since these things require extensive knowledge, and more often than not, you will only lose your money. If you jump in without any preparation, these things are literally just legalized gambling.
That's all.
This advice isn’t a one-size-fits-all solution, but I believe it’s a solid starting point for most people.