Here are some interesting figures on how you can achieve your target of one million dollar!
Save
$500.00 monthly for
30 years (accumulated amount)
If the return is 4% per annum, the final value will be $347,025
If the return is 6% per annum, the final value will be $502,258
If the return is 8% per annum, the final value will be $745,180
If the return is 10% per annum, the final value will be
$1,130,244
Sounds easy? You will have to look for an investment vehicle that can provide you with consistent returns and manage your investment risk properly. Always remember, investment is something that is long term. Timing the stock market for quick profit and short term is risky, just like gambling.
It is always a good practice to save first before you spend every month. If you are unable to even make ends meet every month, that means you have either over spent or did not manage your finance properly. Do not overcharge your credit cards. I spoke to some people that provide debt restructuring services last month and they told me that most of the bankruptcy cases are from the people that did not manage their credit cards spending properly.
If you are unable to save $500 every month, you can create it by looking for a secondary income stream. Time is the essence in investment, so start working on your financial plans early!
Check out new vegetarian recipe post at my vegan recipe blog http://veganformation.blogspot.com/
Here are some interesting figures on how you can achieve your target of one million dollar!
Save $500.00 monthly for 30 years (accumulated amount)
If the return is 4% per annum, the final value will be $347,025
If the return is 6% per annum, the final value will be $502,258
If the return is 8% per annum, the final value will be $745,180
If the return is 10% per annum, the final value will be $1,130,244
Sounds easy? You will have to look for an investment vehicle that can provide you with consistent returns and manage your investment risk properly. Always remember, investment is something that is long term. Timing the stock market for quick profit and short term is risky, just like gambling.
It is always a good practice to save first before you spend every month. If you are unable to even make ends meet every month, that means you have either over spent or did not manage your finance properly. Do not overcharge your credit cards. I spoke to some people that provide debt restructuring services last month and they told me that most of the bankruptcy cases are from the people that did not manage their credit cards spending properly.
If you are unable to save $500 every month, you can create it by looking for a secondary income stream. Time is the essence in investment, so start working on your financial plans early!
Check out new vegetarian recipe post at my vegan recipe blog http://veganformation.blogspot.com/
17 comments:
Pete, I have no credit card oso almost bancrupt lah. LOL.. anyway, i have no idea what you're talking about. Frankly speaking, i failed my maths during my SPM. that's why i end up in Mass com... LOL :-(
$$$ will never be enough
thanks for the detailed financial plan. useful for me as i am about to enter the fantasy of working life
Cleff : Basically u are a right brain person, means that you are artistic/imaginative type, that's why u don't like maths. I hv to use graphics to explain this post lar! Uh Uh , very hard to use grahics lor! LOL
Rose : It will be a good guide for you. U still hv 30 yrs to go before retirement, just nice. By the time I realised this concept, I was already way working too long and started a family, so it will be harder for someone to start late because the monthly figure required will be very much bigger to achieve that goal but it is not impossible!
Did you calculate the inflation and money value after 30 years? :p
i should have started earlier. now really too late. too tied up with loans. yes, i'm such a candidate for bankruptcy. eek.
Pete...you're right about that. LOL...I'm a right brain person...much to my dad's annoyance. i think he still haven't got over that i flunk my maths in SPM! :-S
We should all listen to our parents when they told us save save save! It's wise word indeed!
Beverly : I have not put the inflation value. If lets say the inflation is 10% per year, then the $1 mill(30 yrs time) will have almost the same purchasing power of the $180000 that we put at the present time. But this is a regular saving not lump sum, so it is just an estimated figure. That is why a lot of planners will tell you that main purpose of investment is to beat inflation. So that your money will have the same purchasing power in future.
Misti : Don't worry lah, as long as you don't overspend that is ok! I hve many friends that settled their loans early, now they are enjoying life. LOL
Cleff : Our education system should be modified to help right brain person. Using more graphics to teach maths to right brain students. I more worst lah Cleff, sometime I use right more , sometimes left more, so sometime I go crazy lor, left right left right..... Ha Ha LoL
cc: Yes, agree with you. It is good if we can save more cash and take less loan to purchase things like house and car.
Beverly : More accurate figure considering lump sum, would be $100,000 at present will hv the same purchasing power as $1.7 mill in 30 yrs time if the inflation rate is 10% per year.
I want to be a millionaire! What? It take 30 years? With return of 10% per annum some more???
I think my dream will never come true then. :(
Josephine : You work in Singapore. So your target is only $500k. When convert back to Malaysia already millionair lorr. Easier to achieve than us in Malaysia! Ha Ha
Yes, must start young...regardless whether you'll end up becoming a millionaire or not! FD is only 3.8% p.a. anyway, but something is better than nothing! When you retire, you'll be thankful to have that bit of money handy whenever the need arises. If you can't safe, buy some insurance policies. I'm not an agent...but it's nice when they begin to mature!
P.S.: Thanks for dropping by my blog. I'll link u in my blogroll!
You want to say like that meh? In that case, u can also convert ringgit to Rupiah, I guess, many of us already become Millionaire lor. hahahha.
i'm already a millionaire....with my "cheng"...hahahaha.
you got it rite pete. with the calculations, one can be a millionaire in 30 years, provided he/she has got to be very disciplined. ive learned this during my CFP course. but forgot how to calculate liao.
everyone dreams of becoming a millionaire. i did. millions of times. but in reality, money does not buy everything. i'll be more than satisfied if i have a roof above my head, food for my family, stay healthy, a stable job and the most important of all......a happy family, something money cant buy. what say you?
what ever you say,
but your blog it so interest....
suituapui : Thks for dropping by and the link. I hv added u to my blogroll too.
Josephine : Rupiah ahh,, wah have to use gunny sack to carry all the money lorr! Ha Ha
Calvin : Good to have u back. How's ur wifey?
Agree with you, as long a we live within our means but it is good to have some extra cash. At least we can arrive at our problem in style. (This phrase taken from Anthony Robbins), Ha Ha....LOL
I think you asked the right question: If you can save RM500 a month... :).
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