Here we are on Part II. From the previous issue, I was talking about why personal wealth must start from your own pocket money or capital. It could come from your personal savings or incomes. Once you’re all set, it’s time to make your money grow. This is where you will need basic math skills, particularly if you want to see quick and big growth.
Question: If you have the investment%E2%80%99s principle of 10,000 baht to achieve your goal of five-million-baht savings, how many times do you need to generate returns of 100% for each principle.
Answer: Only nine times. You only need to know the technique of how to make a complete compound from the 10,000-baht principle and repeat that process nine times until your savings reach five million baht.
Some might say, “Who would be able to make it 100% every time? That’s crazy!”
How about bringing down the goal to 20-percent returns for each investment? As long as you are capable of earning income, you could also start from 50,000 baht or 100,000 baht too. It still helps you reach your goal faster with a more practical plan.
I’m sure that a lot of people are surprised over the starting amount. “Only 10,000 baht? Really?!” The answer is “Yes” in terms of math principle. However, my point isn’t about the percentage, but the right investment method that can protect your principle to a certain extent and allows you to repeat it.
The same goes for life.
When it comes to ‘the capital of your life’ whether it’s knowledge, health, wealth, or debts even, you need to focus and look at the bigger picture and establish a clear goal. People often feel a lot of things they want are extremely hard or impossible to achieve because they don’t make a serious plan. If they do, they don’t dare to take action.
If you set a goal and follow the plan, learn from it and try to minimize losses. Once you find your best option, the next step is to develop a ‘discipline’ in making that investment regularly. This is a simple path toward wealth and success.
Even though you don’t know when they will arrive as it depends on external factors, one certain thing is that the day of accomplishment is already waiting for you because you are following your plan.
The full version is available in the 5000s magazine issue 57. Subscribe Now.
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