Saturday, January 14, 2006

The Basic Rules of Investment

Let say you use 8,000 (as the beginning investment fund) to start your investment in this year, and estimate the Return Rate is 28% every year, and you will put another 10,000 every year to your investment fund.

How much is your fund on the 13th year? Please see the below table

Beginning Fund 8,000

No. of Year
Gain (28%)
Total
Add On
Total Fund for
Next Year
1
2,240
10,240
10,000
20,240


2
5,667.20
25,907.20
10,000
35,907.20

3
10,054.02
45,961.22
10,000
55,961.22

4
15,669.14
71,630.36
10,000
81,630.36

5
22,856.50
104,486.86
10,000
114,486.86

6
32,056.32
146,543.18
10,000
156,543.18

7
43,832.09
200,375.27
10,000
210,375.27

8
58,905.08
269,280.35
10,000
279,280.35

9
78,198.50
357,478.85
10,000
367,478.85

10
102,894.08
470,372.93
10,000
480,372.93

11
134,504.42
614,877.35
10,000
624,877.35

12
174,965.66
799,843.01
10,000
809,843.01


13
226,756.04
1,036,599.05
10,000
1,046,599.05

By the 13th year, You Are Millionaire!

This is how Warren Buffett (the Greatest Investor in the world) becomes one of the top rich men in this world!

Please observe carefully in at the table, a few criteria you have to achieve in order to become a millionaire

Good Saving Rate: so that every year you can increase your investment fund, like example 10,000 annually.

Discipline yourself to become a low spender to have a good saving rate. No half way taken out the fund to buy another house, big car, & etc.

Find the Investment Tools which giving you the Return Rate 28% annually or more.

Improve your knowledge/skills to seek for the 28% Return Rates Investment tools.

I believe if one’s can reach the above, he or she will become a millionaire by 13th year or early.

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