Why We Need To Invest?
I get to know the word invest when I am still in primary school through my parents investing their savings in fix deposits. Why FD? Cause they are higher interest than other normal bank account. From their conversation i know that through investing we will gain more money than original. Ya, that’s the phrase I remember, “gain more than origin”
Let say we have RM10000 in FD with 5% per annual . After 1 year, our account will have RM10500. The extra RM500 is the interest gained. That’s how gain more than origin explained. If our annual expenses is RM500, then we can retire with yearly income of RM500 without work.
Investing is one of the way that speed up the pathway to financial freedom. They are many investment “vehicles” that can bring you to financial freedom in the market. So which one is the best and fastest? It depends. Some people love unit trust cause of its low risk and moderate return while some love stock market cause of its high profit but also high risk. Risk tolerance and profit are the factor to be consider before choosing an investment.
So, start investing now before too late!
