Achieving financial freedom requires a portfolio of varying size for\neach individual. This need depends heavily on monthly expenditure levels\nand the rate of return on productive assets owned. Calculations from a\nPluang simulation show that spending of Rp 5 million per month requires\na portfolio of around Rp 1.2 billion. This figure is calculated using an\nassumed dividend yield of 5% per year, as reported by Investor Daily.\nMeanwhile, the required portfolio swells to Rp 2.4 billion for a\nspending level of Rp 10 million per month. The calculation still refers\nto the same rate of return.<\/p>\n
A large investment value is not the only indicator of financial\nfreedom. Pluang emphasises that there are three main foundations that\nmust be met: ownership of productive assets, freedom from consumer debt,\nand the availability of an emergency fund. Productive assets function as\ngenerators of regular cash flow, not merely recording value movements on\npaper. Their presence is the main support for financing living needs\nwithout relying on an active salary. High-interest consumer debt must be\nsettled because it risks eroding investment returns. On the other hand,\nan emergency fund acts as a liquidity cushion so that investors are not\nforced to sell long-term assets when the market is under pressure.<\/p>\n
The reference for calculating capital requirements refers to the\nexpenditure standards of Statistics Indonesia (BPS). BPS defines the\nmiddle-class group as having an expenditure range of 3.5 to 17 times the\npoverty line. Based on the BPS release of 5 August 2026, the poverty\nline as of March 2026 was recorded at Rp 669,235 per person per month.\nThis means the middle-class expenditure range is between Rp 2.34 million\nand Rp 11.38 million per individual per month.<\/p>\n
The public can determine their portfolio target independently. The\nsimple formula is to multiply monthly expenditure by 12, then divide it\nby the expected rate of return. To pursue a 5% return, investors can\nlook at the IDX High Dividend 20 index on the Indonesia Stock Exchange\n(IDX). This index includes 20 companies that regularly distribute cash\ndividends with an average historical dividend yield of 5% to 7% per\nyear. Another option is Government Securities (SBN), which in 2026\noffered issuances in the range of 5.45% to 7%. The ORI030 issuance in\nJuly 2026 even recorded the highest coupon in eight years, with a net\nyield of around 4.91% to 6.3% after a final tax of 10%.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/pluang-simulation-reveals-capital-needed-for-financial-freedom-1787183412", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }