We often hear the phrase work smart, not hard. Hard work is important, but in today’s world, working smart has become even more essential. The question is: how do we do it?

For Gen Z and Millennials, challenges in the job market are becoming increasingly real. Opportunities that offer adequate salaries are not always easy to find. As a result, having a side hustle has become a common way to supplement income. However, something just as important—if not more sustainable—is building passive income.

Passive Income: No Longer a Choice, but a Necessity

Passive income is income that continues to flow even when you are not actively working every day. With passive income, you can enjoy greater financial security, improved time flexibility, and a better quality of life.

Amid the continuously rising cost of living—often exceeding the official inflation rate—relying solely on a salary is becoming increasingly difficult. Recent labour market conditions in Indonesia have also been less favourable, with job opportunities and wage growth remaining limited while living expenses continue to rise. As a result, monthly income is often insufficient to meet daily needs, let alone support long-term investment.

Moreover, the stresses of modern life drive us to seek healing through travel, pursuing our passions, or simply enjoying quality time—all of which require considerable financial resources. For this reason, building sound financial foundations is essential for a more balanced life. One key element of healthy financial planning is investing in assets that generate passive income. Passive income allows the money earned today to work as a monthly income-generating engine, even into the future.

Investment: The Most Realistic Way to Build Passive Income

For the Baby Boomer generation, property has long been considered the best investment for generating passive income. Properties are rented out and provide monthly income to their owners. This is why investments in houses, apartments, and commercial properties have been so popular.

However, for Gen Z and Millennials, property is no longer always the most attractive option. There are at least two key reasons:

1. Property prices have become increasingly expensive, making potential returns less attractive relative to the capital invested.
2. The risk of oversupply, which can make properties difficult to rent out and limit income potential.

Amid the rapid advancement of technology, financial investment products have become one of the most realistic alternatives for Gen Z and Millennials to build passive income. Consider investing in stocks, mutual funds, or bonds through various digital platforms, including Growin’ by Mandiri Sekuritas. Capital market investments are now more accessible, easier to learn, more flexible, and can be tailored to each investor’s financial capacity and risk profile.

Some investment instruments that can generate passive income include:

1. Dividend-paying stock investments: Start investing in stocks by selecting companies with strong fundamentals that have a consistent dividend distribution policy.
2. Dividend-distributing mutual fund investments: Choose mutual funds that distribute profits from their investment portfolios to investors. These distributions may come from bond coupons, stock dividends, or other sources of income.
3. Bond/SBR investments: These investments carry relatively low or conservative risk and offer regular income from coupons or interest, with a more measurable and controlled level of risk.

    

The key is having the courage to start investing once you have a steady income—without needing a large amount of capital. Starting early and investing consistently is far more important than waiting until your capital grows and ending up investing too late. Investing is not only for those who are already wealthy; it is a process that can be undertaken by anyone with an income.

Today, investing in stocks, mutual funds, and bonds can be started with affordable capital and done easily through smartphones. The availability of information across various digital investment platforms—such as Growin’ by Mandiri Sekuritas, which includes growin.id, the Growin’ app on the AppStore and PlayStore and Growin’ on Livin’ (Growin’ within Livin’ by Mandiri)—greatly facilitates better and more informed investment decision-making.

Before starting to invest, make sure you have studied and clearly understand your financial goals and the investment instruments you choose, and that they are aligned with your risk profile. Start investing early, continue learning or conducting regular reviews, and remain consistent in building your finances to achieve major goals both now and in the future.

2026: start investing?

According to the Chinese calendar, 2026 is the Year of the Fire Horse. The combination of

the horse and fire is rare and is therefore often associated with courage, transformation, and major innovation. Fire Horse energy is wild, fast-moving, and filled with a strong drive for change. Such energy can only be matched by those who possess courage, resilience, integrity, and strong leadership. It seems like the perfect energy to start investing in the Indonesian capital market, which has begun the year with an impressive performance of the Jakarta Composite Index (IHSG). By starting your investments this year, you can enjoy the benefits of passive income according to your planned timeline. Visit growin.id or download the Growin’ app on the AppStore or PlayStore to get started.
Happy investing!