Understanding Idle Money

Idle Money is money that is owned by individuals or institutions that are not or have not been used. For example, Mr. Rifa has been saving for one year with the aim of buying a dowry weighing 1 kg of gold. Unfortunately, when buying a dowry, the woman suddenly cancels it unilaterally. Automatically, Mr. Rifa that was originally allocated for the purchase of gold now has no purpose or is idle. Well, this kind of condition is called idle money. A certain amount of money saved for a specific purpose when needed is not actually issued for a specific reason.

Another example is a loan company (finance), for example, the Board of Directors prepares funds for the target of distributing credit funds of 5 billion a year. However, it turned out that credit distribution could not be maximally recorded, only 3 billion came out in the planned year. Automatically, the funds that were originally expected to become business capital assets, are now unemployed and become a burden. Of course, this is a frozen asset that carries the risk of "both inflation" and other financial risks.

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Don't You Get It?Idle money is idle money or free money. Idle money if owned by individuals may not be too big of a problem. But if it happens to corporations, of course, this money will be a problem. Because the money that was originally intended to be collected for development or for certain purposes is actually idle. Idle money problems become complex and are usually discussed by the company together with other financial experts. Idle money reduction strategies carried out by each company will certainly be different, this adjusts to the company's segment and target.

Sometimes Investment is the thing that is most often chosen to reduce the burden of this frozen asset. The investment targets for individuals and entrepreneurs are usually gold and stock investments which are quite liquid in price.

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Idle idle funds/money owned by a person or corporation, where the initial purpose of the money is to buy or run certain programs. Idle money becomes a frozen asset and PR for entrepreneurs because they cannot generate profits and are eroded by inflation. Usually for individuals themselves, if they have idle money with an amount that is not too large, it will be transferred to certain purchases or investments. However, in contrast to companies that tend to have quite a lot of frozen assets, idle money is a big problem because they have to change to other forms of assets so that inflation will not be further eroded.