“Dayak Towkay Baru” Agenda: Personal Financial Planning and Compound Saving Interest (CSI)
- What is personal finance; to loan or to save or to settle debts?
- How do you let money work for you while you are rushing to work or even after you retire to live the life you want to be (dream of)?
- How do you want to live your life 20 years from now?
- Or say 11 years from now i.e. achieving rhetoric Malaysia Vision 2020 or your Personal Vision 2020?
- When you retire at 45 – 65 and later or earlier?
- What could it be to benefit your next generation; your family and loved ones, and others?
- What could it be if you had earned so much that you want others to live out of poverty?
- What could it be as God’s servants to help others; while the world may honor the rich—don’t be surprised if God honors the poor? “Listen to me, dear brothers: God has chosen poor people to be rich in faith, and the Kingdom of Heaven is theirs, for that is the gift God has promised to all those who love Him.” James 2:5, TLB
Listen to God whisper: Cherish the Love of God…..
- Money isn’t everything: “Some rich people are poor, and some poor people have great wealth! Being kidnapped and held for ransom never worries the poor man!” Proverbs 13:7-8, TLB
- Ignoring the needy is a sin: “For many and great are your sins. I know them all so well. You are the enemies of everything good; you take bribes; you refuse justice to the poor.” Amos 5:12, TLB
- Helping the poor brings God’s blessing: “God blesses those who are kind to the poor. He helps them out of their troubles.” Psalm 41:1, TLB
- We honor God by caring for the poor: “Anyone who oppresses the poor is insulting God who made them. To help the poor is to honor God.” Proverbs 14:31, TLB
What you borrow from God – help others to prosper too!
Hello, I want to share with you the path to financial success through this blog. These are lessons taught to me by friends, clients, wealthy partners and more importantly, people who have earned success now relaxing in/on their luxury homes/private jets/yachts, and doing charity all over the world to ease poverty pains including promoting churches initiative and other philanthropic organizations. I have seen some of them addicted to doing charity, some even become a priest and some have been given a second life too; to do God’s works. Just stay with me and read a couple of my entries in Compound Savings Interest and I promise you would be on the way towards financial success.
Time to learn if ones have gone wrong, it’s never too late unless you think so
A lot of people believe that in order to achieve our goals in life, we need to earn a lot of money. This is not entirely true since anyone, as long as they have the proper discipline, can achieve financially. The most important thing to consider is the need to plan your finances for the future, your loved ones! Live a decent life but moderate. Living too materialistic and having so much power would destroy you if not your next generation. Live with smiles and cheers not insecurity.
You would need to set your financial goals and write “…….. (Name) Financial Goal2020” according to how you want to live your life when you retire. What people do not realize is, the more money you earn or the more cash you have the more problems they will face. This is because the more money we have in our pockets or wallets, the more confident we are that it will never run out and dry. This is the wrong way of thinking and will only lose you a lot of money indeed…
If your problem is your inability to manage your earnings, no amount of earnings or profits or benefits and/or bonuses will solve your problem. The key to financial success lies in knowing:
- What are your financial needs (today and tomorrow)?
- How to manage your savings to produce passive income?
- Knowing the power of compound saving interest and using it to your advantage
- What you need is to be financially literate and to commit yourself to plan and monitor your financial progress.
A lot of people have gone into business and investments that generated a substantial amount of earnings for many years, later they end up losing more than all they have ever gained. These are people who may have been doing well but do not know how to manage their personal and business finances. Hard work and perseverance are not guarantees of financial success.
So, stay with me as I explain the path to financial success with you and explain the benefits of compound savings interest.
Power-Up your Compound Saving Interest (CSI)
“Man’s greatest invention is compound interest” – Albert Einstein
Compound Saving Interest gives money the opportunity to grow all by itself. By using compound interest we “don’t work for money but we let money work for us”. You leave money in investments that give you good returns and it will grow all by itself. Just like a little plant, you leave it alone and come back after years only to find out that it just isn’t a plant anymore but a large tree.
Scenario I: Let me give you an example
You have RM10,000.oo right now but you don’t know how to spend it. So, you placed the cash on an investment that earns 10% interest yearly. So, you will be receiving RM1,000.oo a year and if you take that money and use it, you will be left with the same $10,000.oo you began with. Ok, lets say you decided to leave that RM10,000.oo alone to grow. After 10 years that RM10,000.oo would be RM25,938.oo! Even better, after 15 years it would be RM41,772.oo! So, if you took the yearly interest, you would benefit only RM15,000.oo however if you leave it alone you benefit RM41,722.oo after 15 years. That is more than DOUBLE the amount in which you would have received if you took the yearly interest.
Some example of local Malaysia Government Compound Saving Interest (CSI) Initiatives: Savings Bonds (Sukuk Simpanan Rakyat); PNB unit trust Amanah Saham Wawasan 2020 (ASW 2020) and ASM; 5% Interest Rate Bond Simpanan Merdaka by Bank Negara; ASMB Al-aiman; and many others excluding legitimate offshore financial institutions offers.
This is the power of CSI. It can make you earn a lot more than just saving the money!
Now, let’s say you save RM100.oo per month earning 5% yearly for next 40 years. By the power of compound interest, it will grow to about RM152,000.oo and if you double it to RM200.oo it will simply be doubled to RM304,000.oo!
At 10% interest rate, saving RM100.oo a month would earn RM620,000.oo! That is Quadruple the amount of the 5% interest rate! Ok, now can you see the power of Compound Saving Interest (CSI)?
And on top of all that, you are not taking high risks when you use the power of CSI. You just need to know how to use compound interest at your advantage! Your key here is TIME and CAPITAL money. They more time you let the money grow and money you put, the larger the amount would be! Just make sure to look for investments that have above 10% interest rate in order put your savings into good use!
Scenario II: For Compounding Saving Interest (CSI) to work, Time is Important!
Let us have another example of CSI along with the power of time. Say, we have two friends; CA and Eawan are two close friends of the same age. CA, being taught the virtue of savings sooner, started saving RM3,000.oo every year with 10% annual interest at the age of 18. He stopped saving at the age of 26 but left his savings intact. Eawan, however, started saving RM3000.oo a year at the age of 26 and invested it with 10% annual interest until he retired at the age of 65. After retirement, it’s surprising to see who has more money.
CA, saving from 18 – 26 has invested only RM24,000.oo by saving RM3,000.oo yearly for 8 years. He allowed his money to grow for a total of about 48 years. Eawan, on the other hand, invested a total of RM120,000.oo saving from the age of 26 till retirement at 65 (nayuh cakok-cakok madek enti udah maya nya kada agi ulih nguntik indu dara…..). He also left his savings remain intact in all those years.
Upon retirement, CA would actually have more money than Eawan. He would have a total of RM1,707,994.oo while Eawan would only have a total of RM1,460,555.oo! But, didn’t Eawan save about 5 TIMES MORE that CA?
Well, the key here is that CA saved EARLIER. Time, it may seem, is a really important part of investing in compound interest. It is not about how much you save but when you save that matters! TIME is more important than the AMOUNT! How about starting with your kid today? Minta ampun ngagai seduai Unggal CA enggau eawan laban ngena identity seduai nuan dalam scenario ditu….
Conclusion
Greed, Hope, Fear and Despair – Four Market Emotions: Buying stocks from the bargain bin is the best way to outperform the market. You only have to do a very few things right in your life so long as you don’t do too many things wrong. – Warren Buffet
Keep desires alive in your mind. One of the most powerful things you can do with your mind is keeping your desires alive there. We’ve talked about how important desire is. The way you keep that fire burning is by giving it your attention, by focusing on it and giving it energy…..putting it in the spotlight of your attention field. Be at par with others if not better and I believe you can wahai Bansa Dayak! Change include Financial Freedom too not just politics.
So, affirm this one today! … And make it happen and be so. Dream won’t become a reality if you hadn’t work on it. Auk….mupuk dulu aku unggal/wai…ila kitai berandau baru…
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