Saturday, October 16, 2010

Time and Money Relationship

Many are asking me, Millette how can I become a millionaire? At my rate of saving right now, when can I become a millionaire?

I always say, let’s put it in Math. Hey, everybody can do math. If you can’t then you will not become a millionaire.

I prepared a simple presentation on how we can relate money with time.

I can’t do X-Y analysis here cause readers will flood me with those “what-is-she-talking-about” comments.

Here it is:

In the presentation above, I assumed that you want to retire by the age of 60 (But you can retire earlier if you wish to.) and that you are saving in a facility which earns 12% per annum.

If you are 25 years old right now and wants to have 10Million by the age of 60, you should be saving 24000 pesos per year or 2000 pesos per month or 67 pesos per day.

If you are 55 years old right now and doesn’t have savings at all then FREAK OUT! Cause you nees to save and invest 4500 pesos every day or 134000 pesos every month or 1.6 Million every year.

You see. If you are going to procrastinate saving and investing then you’ll end up saving more per month. So why procrastinate? Save now!

~till then

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