PORTALJABAR, BANDUNG CITY - To accommodate salaries or business results obtained every month or every day, people usually save them in the form of savings. And when the savings obtained get bigger, usually someone starts to think about developing their funds in the form of investments.

Head of the West Java Indonesia Stock Exchange (BEI) Office, Achmad Dirgantara, said that a person can invest when the value of the savings obtained has reached 3-6 times the monthly cost of living, or is able to meet emergency fund needs.

"If one day an undesirable disaster occurs, such as layoffs or business failure, then we still have savings that can be used before getting a new job or starting business again," said Achmad, Monday (15/1/ 2023)

According to Achmad, another condition that needs to be met before starting to invest is the need to set aside some of the funds we have to buy insurance or protection, one of which is health insurance.

"If we don't get health insurance from work, we can buy private health insurance or pay for government-run insurance, namely BPJS," said Achmad.

"If there is a risk of illness or death, we no longer need to use savings or sell the assets we own to finance our living needs," he added.

Achmad said that one of the main reasons for investing is to increase passive income, namely income that we cannot get directly. People can still earn income even though they are not actively working.

"If we only rely on a monthly salary, then our financial goals may be difficult to achieve. Meanwhile, investing can at least help us to speed up achieving long-term financial goals," he concluded. (Parno)