Habit #1: Set a goal, and work towards it
Investment is not only “To make money!”, we should use the money to support a bigger idea. E.g. nest egg for post retirement life, children's education, marriage, world tour, etc...
The goals are not static and subject to change. Revisit it whenever there has been a major change in your life, i.e. marriage, child birth, purchase of home, .....
Says, I would like to have 3 million after 20 year to sponsor my retirement life. Currently I have a 150k savings and I able to save 6k per year (aka 500 per month). And, I am confidence that I am able to achieve this if I able to compound my investment with a 15% CAGR. (You can work out your own number with a CAGR Calculator).
The above results from the CAGR Calculator show me that I should able to achieve my goal by investing as per planned. This is very important for me to know my goal in order for me to:-
I will setup different portfolio to achieve different goal (child education, tour, etc...), perform the budget and set the target CAGR.
I believe everyone have his own numbers. You can work out your version by key your numbers to the
CAGR Calculator and work towards it.
You can read this and this article from kcchongnz if you want to be more precise to know what is your own numbers.
Refences:-
Investment is not only “To make money!”, we should use the money to support a bigger idea. E.g. nest egg for post retirement life, children's education, marriage, world tour, etc...
The goals are not static and subject to change. Revisit it whenever there has been a major change in your life, i.e. marriage, child birth, purchase of home, .....
Says, I would like to have 3 million after 20 year to sponsor my retirement life. Currently I have a 150k savings and I able to save 6k per year (aka 500 per month). And, I am confidence that I am able to achieve this if I able to compound my investment with a 15% CAGR. (You can work out your own number with a CAGR Calculator).
The above results from the CAGR Calculator show me that I should able to achieve my goal by investing as per planned. This is very important for me to know my goal in order for me to:-
- I know how much to save to achieve my goal? For me, I need to save RM500 per month and I can use extra balance from my salary to enjoy my life instead of being too frugal.
- I just need a 15% CAGR. And, I can go for a safety investment options by investing in mature companies instead of risk my money to find for a high growth invesment options that come together with high risk.
I will setup different portfolio to achieve different goal (child education, tour, etc...), perform the budget and set the target CAGR.
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. - Paul Samuelson
I would not pre-pay. I would invest instead and let the investments cover it. - Dave Ramsey
I believe everyone have his own numbers. You can work out your version by key your numbers to the
CAGR Calculator and work towards it.
You can read this and this article from kcchongnz if you want to be more precise to know what is your own numbers.
Refences:-
- Five Habits of Highly Successful Investors, Safal Niveshak
- CAGR Calculator
- What is your retirement number? kcchongnz
- To retire or not, and when to retire? kcchongnz
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