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To build wealth, just working hard and being frugal is not enough. You must invest your money if you want to achieve wealth and financial security. Even your money will run out only for daily necessities, and it is difficult to meet long-term needs that require large funds. If you don’t invest, you’re missing out on most opportunities to increase your financial value.

You are also plagued by spending more money than you should when you are not investing. Therefore, invest immediately at your current age, which is financially very profitable. Especially if you are not married and have many dependent needs.

Investing is essential to any financial plan as it is the best way to grow your money. To start investing, you need to set aside funds to purchase investment products that have the potential to generate a high return.

Most investment vehicles available in the capital or stock market offer long-term returns. This rate of return allows your money to create wealth over time as the value of the investment continues to increase. There are also more conventional investment options such as gold or real estate investments, but the appreciation in value is not all that great.

Unfortunately, many people do not invest their savings for various reasons. It’s either fear of investment risk or lack of funds to get started. Although this fear will be one of the causes that will affect your financial health in the long run.

To better understand why let’s take a look at the following article so you can see how much money you’re losing by not investing.

4 costs of not investing

You need a retirement plan

Before going into the details of the amount you will lose if you don’t invest, it’s important to understand your future needs. For most people, the biggest financial challenge is the day you quit your job and never return to work. However, some expenses still need to be funded.

When you retire, you’ll still have to pay for food, clothes, and all other living expenses, but probably on a smaller budget. You need a pension fund to compensate for the difference in income. If you don’t invest, it will be difficult to realize.

Retirement plans seem to fade from memory, and most millennials don’t even have one. The company’s pension fund, if you get it, is not necessarily enough for basic needs, especially if you want to maintain the same standard of living while working.

This will be difficult to do if you don’t have any savings. Unless you want to spend your old age working hard without resting. Many people around us do it or even end up depending on their children and grandchildren.

Retirement provision is important if you want to be financially independent into old age. Therefore, at least for your good, do not allow yourself to be invested in old age.


Cost of non-investment of 200,000 per month

Many people say they don’t have enough money to invest. There are still many people who cling to the understanding that investing requires millions of funds to get started. The same people spend even more money on temporary needs that are less useful for the future, such as B. shopping for shoes and bags.

Even if you don’t need to save hundreds of thousands or millions of rupiah a month to invest. Just save 200,000 of your earnings and let’s see what 200,000 will earn over time. Of course, we cannot classify this amount of money as too large at this point. You may not realize that you spend just as much money just hanging out at coffee shops on the weekends.

Before interest is calculated, 200,000 per month after accrual adds up to 2,400,000 per year. If it is stored for more than 25 years, it will accumulate up to 60,000,000. That amount alone is a lot, but with the power of the market, there’s a lot more to come

Take for example if you invest 2,400,000 at the end of each year for 25 years and earn 10 percent. As a result, you end up with 236,030,000. Or you automatically invest 200 every month, not at the end of the year. As a result, at the end of 25 years, you have 265,370,000.

The cost of not investing 200 a month throughout your career is over 200,000,000. Imagine how 200,000,000 can support later retirement. For many, it could be their income for a year.

Even if you put the money into a savings account, you still lose out on the benefits that can be gained compared to investing in the market. The best savings account interest today is around 1 percent, at the end of 25 years if you save 200,000 a month you will have 68,190,800 at the beginning of the month.

That’s more than 8,000,000 more than just stuffing your money under the mattress, but it’s still far less than what you can get by investing in the market. But even that 260,000,000 is just money you get to retire.

Let’s see what happens when you invest more than 200,000 per month.


The cost of not investing increases in line with your ability to save

Chances are you’re spending at least $700,000 a month on something you don’t need. For example, for those who usually subscribe to cable TV or maybe have lunch at a restaurant three times a week. It could also be a fee for a gym membership that was never visited because it was too crowded.

These funds are more useful when you invest them instead of just being a waste of money. If you quit cable or eat out less and invest 700,000 per month, you end up with 25 years of investment of 928,780,000, again assuming an average annual return of 10 percent per year plus each month.

Now try to review your monthly expense item. There needs to be a set of non-primary expenses that can be cut and allocated for any investment desired. Don’t let the money just be a wasted donation and don’t even invest.


Don’t lose profits by ignoring the power of investing

Warren Buffett also started with his first investment. You can list different reasons why you shouldn’t invest, but there are 20,000 reasons why you should start investing. You can eliminate many potential future costs by investing diligently from now on.

At least 200,000 per month and the results are quite a lot, especially when more are allotted the results can be even greater. To grow your money, invest it where there can be a high return. An example is investing in stocks if you are confident enough. It can also be a type of mutual fund investment managed by an investment manager.

The higher the return, the more money you will make. Modern investment models in the financial markets are relatively more profitable, especially for novice investors. The advantage is that the capital employed is also lower with the same probability of winning.


In other words, you can expect to reap some of the profits from your funds. Unlike the old investment models such as gold, land, and houses, which are no longer relevant for the inflation rate. Not to mention the costs that have to be incurred, such as property and house maintenance.

Investment vehicles tend to offer the opportunity to generate a higher return than savings accounts. Saving your money in a savings account will not affect your financial situation. Instead of increasing, it’s possible that the money you have is just being deducted from the bank’s administrative costs.

Start looking for investment tools so you can be more profitable. The longer you wait to start investing, the more losses you will incur. Don’t hurt yourself by not investing at all. Get rich the smart way.

Stop procrastinating and start investing. Your money won’t grow if you don’t make it work.

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