Jakarta, CNBC Indonesia – LPrecious metals in the form of gold are one of the most well-known investment instruments and are used by generations to invest. The reason for choosing gold itself is because this instrument is understood, liquid, and can be started with small capital.
In addition, gold is suitable for long-term investments, for example, to collect retirement funds, finance children’s education, or buy other assets.
However, is it possible for us to use gold to finance a wedding?
Not infrequently, someone actually uses gold as a wedding dowry. But make no mistake, gold can also be used to become capital for weddings and so on.
Here are smart tips on using gold for wedding expenses.
Make sure you get married not in the short term
The first step you have to do is determine when you will get married.
If the marriage lasts for a short time or between one and three years, then forgo gold and use money market mutual funds, deposits, government bonds, or regular bank accounts.
Gold is a suitable instrument for medium to long term investments. This is because the price of gold fluctuates and there is a difference between the buying and selling prices which is quite high.
That means, without a significant increase in the price of gold, your investment in the precious metal could end up losing money.
If you are planning a wedding in four years or more, you can use this precious metal as an instrument to raise these funds.
Know how much your estimated wedding costs will be
Without knowing the estimated wedding costs, you won’t know how much money you should allocate to invest in gold.
Start doing research on wedding expenses by asking your relatives or relatives. Do detailed calculations about expense items, starting from catering prices, decorations, wedding organizers, music, and so on.
Also watch out for unexpected expenses. Just allocate funds of 10-20% of the total cost of the reception for this expense.
Consistency is key, even though the amount you can allocate is not large, the target can be achieved if you are consistent in doing it.
Set aside money according to your saving ability every month to buy gold. If 1 gram is too heavy, use the gold savings feature provided by several financial institutions or banks.
Or you can also consider investing weekly in gold savings. This can certainly help you meet your goal of raising money for your wedding.
Set aside > 10% of income to buy gold
Apart from being consistent, the amount that must be allocated is also important to know. Allocate a minimum of 10% of your income to buy gold every month.
Also know that the more funds you can allocate, of course, the better.
It would be very good if you could buy 1 gram each month. Because in the next five years, you will already have 60 grams of gold without realizing it.
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