Slow and steady

Slow and steady

Compound Interest

of 10%

RM10,000 --- RM11,000

RM11,000 --- RM12,100

RM12,100 --- RM13,310

RM13,310 --- RM14,641

RM14, 641 --- RM16,105.10

So ... after FIVE time-period, our RM10,000 becoming RM16,105 which is about 61% increase.

of 20%

RM10,000 --- RM12,000

RM12,000 --- RM14,400

RM14,400 --- RM15,840

RM15,840 --- RM19,008

RM19,008 --- RM22,809.6

So ... after FIVE time-period, our RM10,000 has doubled (more).

This is what I meant by being patient ... trade well, gain about 10-20% per year. In five years time, our capital will be doubled.

What if we could gain 50%?

RM10,000 --- RM15,000

RM15,000 --- RM22,500

RM22,500 --- RM33,750

RM33,750 --- RM50,625

RM50,625 --- RM75,937.5

There you are ... RM10,000 becoming RM76,000

Understanding compound interest is just a very basic about increasing our financial mindset. Then, we could understand why we should NOT buy using credit-card (and paying the minimum) ... and we should not put our money in banks(only 3% per annum).

Stock market is still a good place to invest-trade. But, majority are greedy and want to get-rich-quick ... by buying into Destini and such.

THINK and reflect for the weekend. Perhaps, time to change our strategies?

Have a nice weekend.

TEH

 http://cpteh.blogspot.com/2015/02/slow-and-steady.html