Economic Uncertainty Makes Saving and Investing Insufficient: The Art of Safe and Growing Money Management

JAKARTA, KOMPAS.com - Saving alone feels insufficient, but fully investing is not always a reassuring choice amid the current economic uncertainty. As a result, more people are racking their brains to find strategies to keep their money safe while still allowing it to grow. In such conditions, managing money is slowly becoming an ‘art’. The issue is no longer just about how large the income is or what investment instruments are chosen, but rather how to determine the portion between funds that must remain safe and funds that can be allowed to grow while facing market risks. President of the International Association of Registered Financial Consultants (IARFC) Indonesia, Aidil Akbar, stated that in an unstable economic situation, the public should first strengthen their liquidity or easily accessible funds. ‘In less favourable economic conditions, I usually recommend saving first. Hold as much liquidity as possible,’ Aidil told Kompas.com on Monday (4/5/2026). This is because economic uncertainty requires the public to be more vigilant against various possibilities, from the threat of layoffs to rising living costs due to inflation. Reserve funds become important to keep finances secure in the event of sudden expenses. According to Aidil, that is where the art of money management lies in uncertain times: keeping a portion of funds safe without stopping efforts to develop assets for the long term. ‘If we have long-term financial goals, using short-term products will automatically not achieve them or take a long time to do so. Why? Because savings products have almost no interest, around 0.5-1.5 percent. What can be expected from that? In other words, for long-term financial goals, our money should be invested. Don’t just save it,’ he explained. According to Aidil, many people feel they are routinely saving, but their financial goals remain difficult to achieve. One of the causes is using short-term instruments for long-term needs. In addition, savings amounts that are too small compared to income also make fund accumulation run slowly. Therefore, Aidil suggests that the public set aside at least 10-15 percent of their salary each month for savings or investments. ‘So every month, it’s best for employees, as soon as they receive their salary, to immediately set aside, say, 15 percent into savings and not touch it,’ he emphasised. To be more disciplined, Aidil also recommends separating accounts or using digital wallet features to manage money according to financial goals. By separating funds according to needs, money for savings or investments is not easily used for daily expenses. ‘Because if people save or set aside in the same account, it will definitely be used. But if the money is taken out of the main account and put into a sub-account, even from the same bank, the money still won’t be visible in their main account,’ said Aidil. Even for those who find it hard to resist shopping temptations, Aidil suggests converting savings into other forms like gold or foreign currency so they are not easily spent.