There are certain calculation techniques that we, financial consultants used to make us looks cool, sharp and FAST. 🙂
One of the well known, unguarded secrets is the usage of Rule of 72.
The ‘Rule of 72’ is a simplified way to determine how long your investment will take to DOUBLE, given a fixed annual rate of interest.
Example if you have $10,000 now, given an investment return of 10%/year, how long will it takes your money to turn $20,000?
@20%/year, how long will it takes your money to to turn $20,000?
The formula is simple. Divide 72 by the annual rate of return (example 10 or 20), you can get an estimate of how many years it will take for your initial investment to DOUBLE.
So…..Investment annual return of 10%, it will take about 7.2 years for your money to DOUBLE….
Investment annual return of 20%, it will take about 3.6 years for your money to DOUBLE….
Rate of Return
Rule of 72
Actual # of Years
Difference (#) of Years
2%
36.0
35
1.0
3%
24.0
23.45
0.6
5%
14.4
14.21
0.2
7%
10.3
10.24
0.0
9%
8.0
8.04
0.0
12%
6.0
6.12
0.1
25%
2.9
3.11
0.2
50%
1.4
1.71
0.3
72%
1.0
1.28
0.3
100%
0.7
1
0.3
From the table, you can see, the higher your rate of return, the faster, your money will DOUBLE!
If you will like to know of instruments that can help your money to double, do not hesitate to call me. Thanks! 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
There is a Malay proverb that says, “Melentur buloh, biarlah dari rebungnya”…
Translation: “If you want to carve bamboo, carve it from its base”
I firmly believe that, if you want to teach your child something GOOD… you better teach them when they are still YOUNG….this is BECAUSE, when you teach them when they are still young, they will LIVE TO REMEMBER!!! 🙂
One of the things, that, parents NEED to share with your child is, the HABIT OF SAVINGS…
I remember, when I was in primary school, I have this big, big transparent savings tin in my room. My mother gave me $0.50 of pocket money each day, and I will diligently put in $0.10 every day. (that’s 20% savings)
I continue, to do so until it become a habit. A habit which I continue to practice till today…. 🙂
Another habit, which parents need to preach to their child (notice, I use the word preach) is BUY only when you can AFFORD. I realised, while doing fact finding with clients in roadshows, that many youngsters today having credit card debts.
That is not healthy and never it will be healthy….@ 2% interest per month, 24% interest per year…The interest is simply too much… 🙁
Inculcating that habit of “BUY only when you can AFFORD” is extremely crucial…
Okay…Now, you may be telling me….”Helmi, we already know the importance of savings blablabla…….So, what is the best methodology to teach OUR children these good MONEY values….???”
Simple…..Its by preaching….You do it, and they follow.
If you want your child to love reading, you too need to love reading books. You need to show them, prove to them with your actions that you LOVE reading books.
If you want your child to love to eat vegetable, you too need to show your child that you LOVE to eat vegetables. You need to show them, prove to them with your actions that you LOVE eating vegetables.
If you want your child to love to SAVE money and not spend lavishly, you too need to show your child that you LOVE to SAVE money and not spend lavishly. You need to show them, prove to them with your actions that you LOVE to save money and not spend lavishly.
So remember…The way to share with your children GOOD money values is by “preaching” and not by “teaching”….
Show them, lead them as an exemplary model. When you teach, you may be doing the exact opposite. (Example, you watch TV while your child is busy studying)
BUT when you preach, you walk your talk and substantiate your beliefs with actions. Actions speak louder than words.
All the great successful people on earth are great “preachers” and not “teachers”..
Example, Prophet Muhammad SAW, Mahatma Gandhi, Barack Obama…..
So remember….Preach your child of good money values, and they will heed your advice!!! 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
I am very sure, you heard before, the 8th Wonders Of The World, which is “COMPOUND INTEREST”… as mentioned by Albert Einstein, the scientist who is famous for his theory of relativity.
…………………………………………………………
View this video, to see a simple explanation of how compound interest can help your money grow over time. 🙂
Last month, I went for Accelerated NLP Practitioner Certification Course, feeling so refreshed and FULFILLED as ever.
NLP also known as Neuro Linguistic Programming is a science to model the patterns of excellence of others.
I will be using it, to model the TOP 50 CLEO bachelors in Singapore (jokin) 🙂, to model TOP financial consultants in Singapore, and also subsequently to model TOP investors in the whole world.
I will not explain in detail, the holistic context of NLP here. You can google it, to find out more.
In every seminar, you will learn a lot of NEW things. Sometimes, you get OVERWHELMED.
I am, the type who try to take just one POWERFUL idea and APPLY it immediately! Yes, things CHANGED for the better when you APPLY, not just when you learn.
You know, for these few months, I have been grappling with the idea on leading a successful life.
…Leading a successful life…..and leading a balanced life.
Balanced life…………Successful life…..
Can we have both? I get lost along the way…:(
A powerful lesson, I learn from the course is that YOU WILL NEVER ACHIEVE ANYTHING GREAT IN LIFE,IF YOU ARE BALANCED.
There is no balance in life.
Its integration, INTEGRATION in life that we must have.
Everybody needs, NEEDS to support you!!!
Take a look, at Barack Obama. His wife, Michelle Obama, is always by his side, in his ups and downs.
Take a look, at Dr Mahathir Mohamed, former prime minister of Malaysia. His wife,Siti Hasmah, stands thick and thin, travelling all over the world, in support for her husband. Her husband spent countless hours at night, reading to save his country.
Take a look, at even our very own Prime Minister, Mr Lee Hsing Loong. His wife, Ho Chin,step down from Temasek Holdings, so that she can provide that additional support that her husband needs.
All these icons, are extremely successful people.
Like what is best said, behind a successful man, lies an intelligent woman. (Notice that I bold the word intelligent, because some naive women do screw their man…lolz) 🙂
If you are a husband to your wife, a boyfriend to your girlfriend, take out a piece of paper and draft out your life plan. I realized, for a relationship to work out well, what is really needed is SHARED VISION.
SHARED VISION….That’s the keyword.
Your wife, your girlfriend, should support you working 14, 15 hours a day, in your pursuit to achieve that success you desire. You “sacrifice” in a happy manner, because the “rewards” to be shared is very, very sweet. Your rewards taste sweet and the “sacrifice” tastes BETTER!
I have a lot to share, yet in this article, I will just like to clear that notion of a balance life….If you act like everybody, you will become like everybody.
If you act like somebody, you will become like somebody. Be different. Dont follow the crowd. Lead an INTEGRATED LIFESTYLE!!! 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
Many of us, today, are holding tight, holding dearly to our CASH, because of the economic uncertainty that is looming wide on us. 🙁
If YOU read yesterday’s straits times’ newspaper, under the finance section, they recommend YOU to keep at least 12 months of YOUR monthly expenses as YOUR emergency funds instead of the usual, recommended 6 months monthly expenses in YOUR bank account.
I think that is a prudent measure & I will like to add on to it 🙂
You see….I believe, overall, in life, many of us have GREAT AMBITIONS to fulfil.
Some of us are entrepreneurial, will love to start our dream business. Some are career minded, looking forward to climb the corporate ladder. Whatever route or path, you CHOOSE, there is 1 BIG PURCHASE that you will do in your life.
I will usually recommend all my clients to settle this 1 BIG PAYMENT as soon as possible before spending on other stuffs. That is….
1) Paying For Your House
Try to pay your house in full as soon as possible.
Yeah…I know, for some adventurous people, they will say, “Helmi….mortgage rate is so low. May as well, I invest the money, and get higher returns”.
The one philosophy that, I shared with all my clients, is anything you want to do, PROTECT YOUR FAMILY FIRST.
This includes buying life insurance, buying hospitalisation insurance plan, and the most important, pay off your house loan as soon as possible.
This is because, in life, many unwanted things can happen. Today, you may be making lots of money, running your own business, or perhaps earning BIG MONEY, holding an enviable corporate position in your company, BUT no one can guarantee you such blissful fate in the upcoming years.
At least, should anything unwanted happen, you know, you got life insurance, you got hospitalization plan and you got YOUR HOUSE all secured.
You then only, depends on your 12 months contingency savings in your bank to pay for your basic necessities.
You know, I always hear people say, those who indulge in business, are taking BIG RISK. In fact, I will say, most of them take “calculated risk”.
Many of those businesspeople, I met are super risk averse. They do anything ONLY with a clear goal and a well developed strategy.
In fact, if you follow what I share with you, in this article, you are taking calculated risk because all your fundamental needs are well taken care of, should your business or career failed. YOUR BOTTOM LINE IS TAKEN OF. You can explore, can indulge in any field of endeavour FREE FROM WORRY & ANXIETY, because why?
Because your main structural support is already in place. You have done your homework. You have a plan for your worst case scenario.
Only then, you can start planning your financial life in a more adventurous way! 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients’ financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.