Slow and steady
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
