Wealth Building, Retire Early, Personel Money, Financial Planning, Saving Tips
Since I enter working society, I came across knowledge of financial planning. Financial planning articles are in every corners of media like news, books and radio. Financial planner always urge ever y persons should do financial planning regardless rich or poor. If you are poor, more likely you should do your financial planning.
Although the salary increase gradually for the past ten years from RM1000++ to RM2000++ now but the buying power isn’t increase at all. We are actually in the same place, buying same thing with bigger amount which compensate the increase in salary.
We must work in order to get our salary. If we don’t work, we have no salary. When we are working, we are consuming our energy and time. Energy used can be recover but time used cannot be recovered. Once the time pass, it is a history. We are not Doraemon which have time machine that can go back to yesterday or last week.
Everything start from zero and getting one from zero is the most difficult step. However, many people manage to do it, include you too. If you are just enter the society or school leaver or fresh graduates, please take notes for it.
If you want to grow your wealth steadily in long term, you must remember this rule, protect your capital. Protect your capital means never loss the initial money they you have invested. If you invest RM5000 in turbulence stock market just as end of 2007, you must learn to protect your capital by cutting loss to prevent further losing which eat up your initial capital.
credit through askmen.com
Recently, I pay much concern about inflation as being ROBBER of wealth. Inflation steal your wealth silently and naturally without your concern. Inflation being your biggest enemy on your pathway to get rich slowly.
Price of goods increase double in 12 year times with inflation rate of 6% per year. In other words, your purchasing power decrease half with the same amount of money.
Inflation is our biggest enemy in building wealth. If you neglect the existence of inflation, you definitely end up being poor or middle. If you still wonder what inflation is, you may refer to my previous post.
Inflation is wealth stealer. It steal your money silently and unconsciously. You might not aware of your decreasing purchase power in one or two year times but it make a large different in long term, let say 10 years. 10 years ago, 1 plate of mee in my hometown sold for RM1.30. Now the same plate of mee sold for RM2.30. Nearly double! Price of goods doubled every 12 years with inflation rate 6% per years.
