1st Scenario:
We start saving our earning at the age of 30 years old. We save RM 100 every month which will gives us RM 1,200 per year until the age of 60 years old. We invest this money in a mutual fund which gives 9% after tax return.
2nd Scenario:
We start saving our earning at the age of 20 years old. We save RM 100 every month which will gives us RM 1,200 per year, but until the age of 29 years old. We invest this money in a mutual fund which gives 9% after tax return.
We will be surprised, that at the age of 60 years old, the amount of money we have at Scenario 1 is still less compare to Scenario 2. Even though in Scenario 1, we keep saving until the age of 60 yrs old.
In Scenario 1, we invest a total amount of RM 37,200 (31 yrs x RM 1,200)
In Scenario 2, we only invest a total amount of RM 12,000 (10 yrs x RM 1,200)
We can see here that saving at the earliest possible time do make a huge difference. We heard about the power of compounding interest and we understand it very well.
It’s proven that in order for us to benefit from the power of compounding interest, it’s really needs us to start investing as early as possible, regardless of how much the saving amount will be.
I am sure most of us here can afford to save more that RM 100 a month. Make it a habit to save and invest.
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4 comments:
mmm..ya la..bgs jg ni kasi ingat sy...mau saving la ni sda..hehe
Betul tuh. Apa yg kita buat pada masa ini, menentukan apa yg jadi pada kita di masa hadapan. hehehe
hehe...mcm dlm pla maksud dia tu..ngeh3
Dui..... direct to the point bah maksud dia tuh..... Kalau kita menyimpan ni hari..... masa depan ada duit untuk kawin, beli rumah, sekolah anak dan retirement fund yg mencukupi bah.....
Tp masalahnya sia ni pandai cakap ja.... bukan pandai menyimpan pun juga.... hehehe
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