How to become a millionaire?
Many wish to become a millionaire but very few know how to become a millionaire. This article shows simple tips on how anyone can become millionaire. It is not hard to become a millionaire. In fact, everyone should at least target to become a millionaire due to the current rate of inflation. Trust me, with the current inflation rate, if you are not a millionaire, you will be struggling. Let’s look at the calculation below:-
Target: RM 1,000,000
Years to achieve: 15 years
So how much you need to save per month to reach RM 1 million? It is depending on the rate of return. If fixed deposit with annual return of 2.5% is used, then the monthly saving required to reach the goal will be RM 4,585 for 15 years. If one chooses to invest in higher yield investment (say 9%/annum return), the monthly saving required will be much more lesser. It is merely RM2,643 per month for 15 years. Almost half of the amount!
While one might think that RM2,600 is hard to save initially, it is doable if one can control expenses and increase their income along the journey. Becoming millionaire will not be a dream but a goal to be achieved!
What if one has longer duration to accumulate the RM 1 million?
Target: RM 1,000,000
Years to achieve: 20 years
The monthly saving amount will be reduced. If one chooses to invest in higher yield investment (say 9%/annum return), one merely needs RM1,497 per month saving to become a millionaire in 20 years. Something which is not hard.
What are the lessons here as illustrated by the above few example? One needs to the following in order to grow the wealth:-
- Invest rather than purely keeping the money in the fixed deposit
- Start to invest as early as possible for the compounding interest to work like magic
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