ANYONE can build wealth, no matter what profession or salary. Simple principles such as frugality and discipline in saving can pave the way to financial independence in the future.
This is in line with the financial literacy education event entitled ‘Like It! Indonesia’s Leading Financial Literacy 2024‘, which was held by the Deposit Insurance Corporation (LPS) together with the Financial Services Authority (OJK), Bank Indonesia (BI) and the Ministry of Finance in Gandaria City, Jakarta, last weekend.
In the session with the theme ‘Diligently Saving is the Way to Riches, Is It Really?’, LPS Secretary, Jimmy Ardianto, emphasized the importance of the habit of saving as the first step in building personal financial stability. Then, saving is an important step to prepare yourself for various possibilities and is not just about saving money.
“Saving may seem simple, but the impact is big. “If people have a good understanding of the importance of savings, it will provide stability for the Indonesian financial system as a whole,” said Jimmy in a written statement, Monday (11/11/2024).
Nevertheless, Jimmy reminded the importance of saving with a good understanding of financial institutions. Like choosing a place to save that is safe and can provide a sense of calm.
According to Jimmy, saving in banks has a high level of security because public funds stored in banking institutions are guaranteed by LPS. “If we talk about putting money in the bank, this is the safest choice. Everywhere, the principle is high risk–high gainthe greater the risk, the higher the potential profit. “However, when it comes to security, saving money in the bank is much safer,” said Jimmy.
He explained that with LPS, people do not need to worry if problems occur at the bank, such as bankruptcy or closure. According to him, at the bank, someone already guarantees the security of deposits. “If there is a problem with the bank, LPS guarantees deposits up to a maximum of IDR 2 billion per customer per bank. “So, as long as the interest rate offered by the bank does not exceed the LPS provisions, customer funds will be safe,” he explained.
At the same event, Acrobyte Group Founder, Theo Derick, shared the story of his financial journey as an inspiration for the younger generation about the benefits of saving discipline. Since his university days, Theo said that the habit of saving has been the key to his financial progress, so that he is now able to build his own business.
“I always believe that the habit of saving is important. If you want to be rich, you must have a stable financial foundation, and saving is the most logical first step. Without the habit of saving, I might not have been able to finish college. “At that time, my savings were always allocated for education costs and living needs,” he said.
He also emphasized that financial discipline must start early in order to build sustainable habits. Theo gave an important message for the younger generation not to wait until they have a large income before starting to save. “Start small, and make it a habit, so it will shape your financial future. “You can be tempted to spend money for a lifestyle, but if we have clear financial goals, we become more disciplined,” he said. (S-1)
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**Interview with Jimmy Ardianto, Secretary of the Deposit Insurance Corporation (LPS)**
**Editor:** Thank you for joining us, Jimmy. Your recent presentation at the ‘Like It! Indonesia’s Leading Financial Literacy 2024’ event highlighted the importance of saving for financial independence. Could you elaborate on why you believe saving is the first step toward personal financial stability?
**Jimmy Ardianto:** Thank you for having me. Saving is crucial because it instills a discipline that leads to financial independence. Many people think building wealth requires a high salary or investment knowledge, but in reality, it begins with the habit of saving. A consistent saving practice not only prepares individuals for unexpected expenses but also promotes long-term financial health.
**Editor:** Interesting perspective. You mentioned that saving is not just about putting money aside but requires an understanding of financial institutions. Can you expand on that?
**Jimmy Ardianto:** Absolutely. It’s vital for savers to choose safe and reliable financial institutions for their savings. Knowing how to select a bank based on its security and the services it offers can significantly impact their financial future. Institutions like banks provide a level of security not found in many other investment avenues, especially since deposits are guaranteed by LPS. This gives savers peace of mind, which is essential for building a savings habit.
**Editor:** You also mentioned the “high risk-high gain” principle in your talk. How should individuals balance seeking higher returns while ensuring the security of their funds?
**Jimmy Ardianto:** It’s all about risk management. While higher returns often come with increased risks, saving in banks is one of the safest options available. I advise individuals to first build their savings in secure institutions. Once they’re comfortable and have a substantial safety net, they can explore other, higher-risk investments. The key is to understand the financial landscape and make informed decisions based on one’s financial situation and goals.
**Editor:** In your conclusion, you emphasized the broader impact of individual savings on the economy. Can you explain that connection?
**Jimmy Ardianto:** Certainly. When individuals save and maintain a stable financial footing, it contributes to the overall health of the economy. A population that saves can lead to more significant financial stability, reducing the likelihood of systemic risks. When people understand the importance of saving and are proactive about it, it helps stabilize the financial system and promotes sustainable economic growth in Indonesia.
**Editor:** Thank you, Jimmy, for sharing these insights. Your emphasis on discipline and understanding in saving is both practical and empowering for many individuals looking to achieve financial independence.
**Jimmy Ardianto:** Thank you for having me. It’s imperative that we continue to promote financial literacy so everyone can have the tools needed for financial success.
