I was talking to undergrads yesterday afternoon and one of the slides is this.
WHAT DOES THE TABLE SHOW?
Let's look at the left hand side of the table (orange column). Jamilah saves RM50 every month. Thus , her yearly savings are RM600. Say that she keeps in an investment vehicle giving 8% return/interest/profit. At the end of 15 years, she has kept RM19,650.
Middle column (blue). Jamilah's friend, Lynn, started saving in 2017, 5 years after Jamilah's habitual practice of savings. Knowing that Jamilah has been keeping RM50/month, Lynn keeps RM70/month at 8% return, hoping that she can beat Jamilah's savings in the next 10 years.
What will happen to Lynn?
At the end of 2027, she only manage to save RM15,101. She actually loses about RM4,500 due to the late timing.
A good move but not the best strategy.
Doing that, Jamilah has reached savings of RM17,132 at the end of 2027.
What have you noticed?
The savings amount for those starting early always beats saving at a larger amount. Save NOW, friends!
Which ones do you have? How much have you saved.
How much return do we get through the savings from each one?
HAVE YOU CONSIDERED THIS AVENUE?
The figures look temping isn't it?
Try reading this :
WHY GOLD & SILVER? - MIKE MALONEY
HOW TO INVEST IN GOLD BARS & DINARS & SILVER BARS?