how to manage their money...
money is not everything but without money...
almost everything is nothing...
its almost the same as the risk...
we cant avoid it...
but we can manage it...
1st choice to put ur money??
simple 1 time saving+reinvestment
5% simple interest only pay u a 1.3k plus for ur 20 years deposit of 500!
while 10% simple interest will pay u 3.3k plus...
how many instrument u know that can provide u more than 5% with reinvestment??
**dont event think to put ur money into the FD!!its too LOW!
its can only provide u simple interest!!
or you're smarter abit u can do the compound interest urself...
reinvest all the interest gain...
2nd choice...
consistent saving + reinvestment
we can get a 33k
this is how the annuity and compound interest work together!!!
here is my plan...
i'm 23 this year..still have 33 years to go...
main target for myself...
additional 6k each year and...
an average of 10% return for 33 years...
so i will have a retirement nest egg of 1.7mil...
after that...
10% return of 1.7 mil will be 170k which is 14.17k each months for my living...
an inflation of 4% will make the 14.17k in 33 years time worth 4k of today money!!
4k each month for debt free and no financial burden person,
it can be consider "enough" ba...
i can spend rm133 each day...
how many starbuck coffee i can drink each day??around 10 la...
how many big mac set large i can eat each day??around 11 set la...
is it ok??
i'm kinda ok for that...
i believe i will be able to save more once i get into working society!!
save more than 500 each month...
lastly...
investment defined as..
"a current commitment for future usage"
4 comments:
your plan works provided that,
1. You already have a fully paid-up house & car after saving RM500 each month.
2. You are fully covered under medi insurance after saving RM500 each month.
3. Your (future) wife is as commited as you.
4. Your (future) children is as commited as you.
5. You are able to live that long.
hi,
1.500 is the extra saving,shouldn't be a problem.
2.insurance always the 1st part of financial planning...dont worry i will make sure my medic and PA is well cover...
3.this is my investment plan...she can form an investment plan for herself too d...btw i will get 1 wife which is not "luxury" type d..wakkaka
if not...my 14k each month also not enough for her to spend.
4.as long as they are no longer infant...i will let them be independent...
5.i not sure whether i can live that long or not..but this investment plan will not affect my current live style and it still can compound a good return for me...
so everything still very optimistic.
wah, you must teach me this. my finance thing all forgotten d... compound interest and all...
no worry bro...
anytime just come yum cha and discuss about it ba...
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