Millionaire game plan

Many hope to become millionaire but many think that it is hard if not impossible. Is it really that hard? I always like to use the financial calculator to indicate how simple it is to create the millionaire game plan. It is not hard, in fact most of the time, we over complicate things.

For an example, Keith wants to be a millionaire in 10 years. He has RM 100,000 capital. How he can achieve it?

Finishing line is RM 1 million; Starting point is RM 100,000; Time frame is 120 months

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                 Scenario 1                                        Scenario 2                                          Scenario 3

These are the pathways to millionaire:-

Scenario 1: He needs to invest his RM100,000 for 120 months at 23%+ per annum profit / interest.

Scenario 2: He needs to invest his RM100,000 and adding RM 3,000 / month for 120 months at 11%+ per annum profit / interest.

Scenario 3: He needs to invest his RM100,000 and adding RM 4,000 / month for 120 months at 8%+ per annum profit / interest.

You shall see the game plan involves the initial capital, on-going capital and the interest rate. Higher interest rate can only be achieved with more active involvement, e.g. business, trading or leveraged investments. Which action to take shall depends on how much capital, time and skill you have. If one is good in business, his goal is to compound his capital 24% every year to turn his RM 100,000 to RM 1 million within 10 years.

There is no right or wrong in how to do planning. Once the starting point, finishing point and the time frame are known, we can identify the strategies. The tactics used depends on our risk tolerance and our preference.

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