DIGIVESTASI - Many people desire financial stability that is not eroded by inflation. Having wealth that either remains constant or grows despite ongoing inflation is something many people aspire to. Here are some tips to keep your finances and wealth protected from the impact of inflation:

1. Invest Savings in Inflation-Proof Assets
   Inflation causes the value of money to decrease over time, meaning the money kept in savings accounts loses purchasing power. Investment can be an option that provides returns higher than inflation.
   Investment recommendations to consider:

• Stocks: Long-term growth potential with an average return of 6-10% per year, but requires sufficient knowledge in stock selection.
• Mutual Funds: Easy access for beginners with varying returns depending on the type of investment (money market, bonds, or stocks).
• Real Estate: Property value tends to increase over time.
• Gold: A stable asset often used to protect value against inflation.
  First step:
  Study investment products according to your risk profile and start with small amounts, like IDR 100,000 for mutual funds. Consult with a financial advisor if necessary.

2. Diversify Your Financial Portfolio
   It is important not to put all your funds into one type of asset. Diversifying your portfolio helps reduce risk and provides protection against market fluctuations.
   Example of diversification allocation:

• 30% in bank savings (for high liquidity).
• 40% in medium-term investments (like mutual funds or bonds).
• 30% in long-term investments (like stocks or real estate).
  Benefits of diversification: When one asset's value drops, others can still provide profit.

3. Consider Government Bond Investments
   Government bonds like State Treasury Securities (SBN) offer higher returns compared to savings or time deposits and are often adjusted to inflation levels.
   Benefits of investing in government bonds:

• Low risk as they are guaranteed by the government.
• Higher interest rates than regular time deposits.
• Can be purchased in small amounts starting at IDR 1 million.
  Example: Retail Bonds (ORI) or Sukuk with an interest rate of 5-7% per year.

4. Avoid Keeping Too Much Cash
   Keeping large amounts of cash can cause a decrease in purchasing power due to inflation. It is better to convert cash into assets that are not eroded by inflation.
   Alternatives for savings:

• Deposits with higher interest rates than regular savings.
• Gold bars or precious metals to protect value.
• Digital assets like cryptocurrencies (for those who understand the risks).
  Tip: Keep enough cash for emergency needs (e.g., for 2-3 months of expenses).

5. Adjust Your Lifestyle to Inflation
   Inflation changes the prices of goods, affecting household expenses. Without planning, rising prices can quickly drain savings.
   Steps to take:

• Evaluate Monthly Expenses: Separate needs from wants.
• Reduce Consumable Expenditures: For example, replace items with more economical but still quality alternatives.
• Avoid Consumptive Debt: Focus on productive debts, like business capital debt.
  Benefits: Maintains a lifestyle within your means and ensures savings are secure.

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