Financial planning can actually start at any time. However, there are always greater benefits if you start early. Starting early gives you enough time to learn, improve, grow, and enjoy the surprising outcome.
For Gen-Z — those born between 1997 and 2012 — now is the perfect time to create a financial plan, including investing in Indonesia’s capital market, to achieve your dreams in the future. Gen-Z is beginning to enter the workforce, earn their own income, and face unique challenges. High living costs and lifestyles, combined with national macroeconomic instability due to domestic and global geopolitical factors, make financial planning for Gen-Z more challenging — requiring careful attention to many factors. But be excited about it! At the very least, start saving and investing in the capital market through the most suitable products for you such as equity, mutual funds, and/or bonds.
Where to Start with Financial Planning?
Financial planning begins with defining your future goals and estimating the time frame to achieve them. Examples of future goals include buying an apartment or a new house, getting married, purchasing a car, or early retirement. After setting your goals, review your financial strength based on your income, clarify the time frame to reach each goal, identify your risk profile, and, if necessary, consider other factors such as family obligations.
Calculate how much income you receive each month or each business cycle if you’re self-employed. Identify your risk profile — are you a conservative, moderate, or aggressive investor? The more aggressive an investor is, the more willing they are to pursue high returns, though with higher risks.
Other considerations, such as family responsibilities, should also be included if you have dependents.
After reviewing all these aspects, start creating a well-structured financial plan—and put it into action. Begin by setting aside a portion of your income as soon as you receive it. A good approach is to allocate around 20–30% for savings and/or investments. For example, you can allocate 30% of your income for savings and investments, 30% for lifestyle expenses, and 40% for basic needs such as rent, food, clothing, and transportation. If you still have consumer debts, such as credit card bills or pay-later instalments, make sure to include those payments under essential or basic necessities. Follow your financial plan with consistency and discipline—and if you earn additional income, increase your savings or investments to help you reach your financial goals faster.
The next step is choosing suitable investment products. Capital market products such as equity, mutual funds, and bonds can be considered for long-term investments because they offer potentially high returns — though usually with higher risks. If you have a moderate to aggressive risk profile, try equity investing through digital platforms like Growin’ by Mandiri Sekuritas, accessible via growin.id, Livin’ by Mandiri through ‘Investment’ menu or downloadable from the PlayStore and AppStore. Before investing in stocks, learn the basics — such as how the Indonesian capital market works and common terms like buy, sell, bullish, bearish, capital gain, dividend, and so on, as well as how to use your chosen trading platform. Last but not least, make sure to choose a trusted securities company, the one which is registered and supervised by the Indonesian Financial Authority (Otoritas Jasa Keuangan/OJK) like Mandiri Sekuritas, which is also a Bank Mandiri subsidiary that’s been around for more than 25 years.
Equity investing is relatively affordable and can start with cold money — funds specifically set aside for investment (and potential losses), not money needed for basic necessities.
If your risk tolerance is moderate to conservative, consider invest in mutual funds or bonds. A mutual fund is an investment instrument that pools money from the public to be invested in a portfolio of securities by a professional investment manager. The advantage is that it offers relatively high returns and is managed by professionals, so investors don’t need to handle the details themselves. The pooled funds are invested in various instruments such as equities, bonds, or money markets, depending on the type of mutual fund. Study the main mutual fund types: money market, fixed income, balanced funds, and equity.
Meanwhile, bond investing means buying debt securities issued by the government or private companies. With an affordable minimum investment — starting from around IDR 1 million — investors earn returns in the form of interest (coupons), typically higher than deposits. Although there are still risks, bonds, especially government-issued ones are generally safer. Both mutual funds and bonds can now be purchased easily in one trading app: Growin’ by Mandiri Sekuritas.
In executing your financial plan, make sure to continuously improve your literacy about financial products and related topics. Understand the products thoroughly before buying, and review your investments regularly to ensure optimal performance.
Lastly, take time to fully understand the digital investment app you’re using. In today’s digital era, financial information and investment apps are easily accessible. Equity, mutual fund, and bond investments can all be managed in one platform like Growin’. Apps like Growin’ not only offers complete capital market investment features but are also supported by an AI-based virtual assistant called DIMA. This assistant helps investors — both beginners and professional traders — process information and make better investment decisions.
