Short-Term Investment Strategy for Housewives

Short-Term Investment Strategy for Housewives

Hi guys, do you know the short-term investment strategy that you can do? It is very important to know in order to achieve your financial goals!

Do you realize that August 2024 has passed so quickly. What are your financial resolutions? Hopefully safe! Amen!

For those of you, especially housewives who manage family finances and have not had the chance to start investing this year, don't worry.

The following article will help you all to create a short-term investment strategy, especially for housewives, check it out!

Short-Term Investment Strategy for Housewives

Short-term investments can be an effective way for housewives to maximize their savings while maintaining liquidity.

Here are some short-term investment strategies that are suitable for housewives:

1. Time Deposit

A time deposit is one of the safest short-term investment options.

With a fixed interest rate and a term that varies from a few months to a year, time deposits provide certainty of return on investment.

For example, banks in Indonesia offer deposit interest rates of around 4-5% per year.

Advantages of Time Deposits:

• Low risk
• Guaranteed returns

Disadvantages of Time Deposits: Low liquidity; money cannot be withdrawn before maturity.

2. Money Market Mutual Funds (RDPU)

Money market mutual funds invest funds in money market instruments, such as deposits and short-term securities.

This product is suitable for short-term investments because it has relatively low risk and high liquidity.

Advantages of RDPU:

• High liquidity; can be cashed at any time
• Potential for greater profits compared to deposits
• Can be started with a small nominal
• Investment diversification

Disadvantages of RDPU: Potential returns are lower, when compared to stock or mixed mutual funds.

3. Retail Government Bonds (ORI)

Retail Government Bonds or ORI are one of the investment instruments issued by the government with a certain period, usually 3 years.

ORI provides a fixed interest rate that is paid monthly.

Benefits of ORI:

• Guaranteed by the government so the risk is very low
• Fixed and regular interest

Disadvantages of ORI: Limited liquidity; must wait until maturity or sell on the secondary market.

What about your financial goals? Is the instrument suitable and can it be used to achieve your financial goals?

Preparation Before Starting Investment for Housewives

After knowing the various types of investments that can be used for the short term, you can go through the following steps before starting an investment:

1. Conduct a Financial Check-Up

Before starting an investment, conduct a financial check-up to find out your current financial condition:

• Analyze Income and Expenses: Record all sources of income and compare them with monthly expenses.
• Debt Evaluation: Calculate all debts you have, including home installments, credit cards, and other loans.
• Emergency Fund: Make sure you or your family have sufficient emergency funds, ideally 6x-12x your monthly income.

2. Budgeting

Create a budget that includes all expenses and investment plans:

• Categorize Expenses: Separate between needs (such as food, transportation, and education) and wants (such as entertainment and vacations).
• Allocate Funds for Investment: Determine the percentage of income that will be allocated for investing in money market mutual funds. For example, you can allocate 10-20% of your monthly income for this investment.

3. Setting Financial Goals

Financial goals will help you stay focused and motivated:

• Short-term goals: Examples of short-term goals are saving for a family vacation in 1-2 years or buying items for the kitchen
• Long-term goals: Although focused on the short term, still consider long-term goals such as children's education or retirement.

4. Choosing Investment Instruments

After a financial check-up, budgeting, and setting financial goals, the next step is to choose an investment product that suits your financial goals and risk profile.

Do research on the products to be used, you can consider the performance and risk of the investment products to be used.

5. Monitor and Evaluate

Monitoring investment developments regularly is key to ensuring that you are on the right track:

• Monthly Review: Conduct a monthly review of investments to see performance and adjust if necessary.
• Evaluate Financial Goals: Every few months, review your financial goals to ensure that they are still relevant and in line with your current financial situation.
• Budget Adjustment: If necessary, adjust the budget to increase investment contributions or address changes in spending.

Those were the investment strategies that can be used by you, especially housewives.