Story of Starting Young to Build Big Wealth

Start Young to Build it BIG!

I was glad to have assisted these 2 siblings who are between 21 and 19 years old to kickstart their first investment journey with Public Mutual.

This family was referred to me by my existing client.

My client who is a teacher, helped us to set up the meeting so that we get to meet in their home.

As new investors, both of them listened together with their parents

After they understood the benefits of our investment, they decided to start with a monthly auto-debit of RM 300 altogether.

I’m so happy to see their mom

who has played an important role to encouraged their daughters to start investing early.

Can you imagine how much they can benefit from the compound interest if they let them keep up with this investment for over 30 years?

Assuming the rate of return of 8% per annum on the investment that they are doing, they will receive altogether RM 450,090 by the time they both reach 49 years old and 51-year-old respectively! Isn’t this great?

The most powerful aspect of investing early is the power of compound interest.

Over time, this compounding effect can lead to substantial growth, allowing our investments to multiply many folds and it’s also known as a snowball effect.

“Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t… pays it.” – Albert Einstein

According to The New Straits Times dated 24th January this year, 51.5% or 6.67million of EPF members under the age of 55 are having “extremely low” savings of less than RM 10,000 in their EPF, as stated by the Chief Strategy Officer -Nurhisham Hussein.

Therefore, Malaysians cannot retire solely depending on EPF.

Planning ahead definitely can avoid this.

In this situation, both of these ladies can have peace of mind as they’re building a nest of golden eggs for their comfortable golden years.

Again, auto-debit is a facility that u can pay yourself first (save and invest) before you pay others (creditors, bills and utilities, other expenses).

It is also a disciplined way to cultivate the savings habit for a person. It helps to save before spending. Many people can achieve financial freedom simply through this disciplined way of investing via the auto-debit facility.