Time is Money

Time is our best ally in investment. So, start now to save regularly. To illustrate the important of start early, let consider these situations.







Case 1

Aminah starts a regular saving at age 25. She plans to have RM1 million a retirement (age 55). Thus she has 30 years to achieve her goal. Let us assume that the dividend is 10% per year. To achieve her goal, Aminah need to save RM481 per month. Note that at retirement, she earns RM8366.79 monthly till the day she dies.

Case 2

Meanwhile, Abu has a similar goal. But he starts his regular saving 5 years later, at age 30. He only has 20 years to achieve the same goal. As a result, he needs to save RM725 monthly, which is RM244 more than Aishah.

Case 3

Zack is the worst. He starts at age 35. He needs to save RM1236per month to be as rich as Aminah and Abu at retirement. 1o years late means Zack has to pay extra RM755 compared to Aishah.

So, the best advice is to start early. Start saving when I receive my first paycheck.