Wealth Inspirations From Chinese New Year
Have you heard of Ang Pau? Ang Pau is a Chinese tradition during the Chinese new year.
People who are married will use a ready made "small red envelope" to put in some dollars and give it to relatives / friends who are not married.
Base on the past, most people will receive $200 every year.
This is something that only Chinese will have so some people might not have heard about it.
Although it's a small amount of money every year, there's a magic in these "Ang Pau".
If you invest all your Ang Pau money into equity unit trust (let's use 12% as estimation), how much will you get when you are 25 years old? It's a total of $29,866.
79! This means when a Chinese graduate from university, he is capable to pay for a cheap house's deposit and buy his first house.
He might rent out some of the rooms and stay in it.
Before he starts his first job, he already owns a house with a small amount of passive income.
This is a Is that cool for a Chinese? No.
It's not.
The coolest thing in the whole part is the magic of compound interest.
This is not a privilege for Chinese only.
There are 2 ways you can use the magic of compounding interest: First, you use it to encourage your kids to start saving $200 per year.
In order to save $200 per year, you will get your children to form a good habit to budget his expenses and not buying things with emotional influence.
This solves most of the problems which young people face which is "spending more than what they earn" and "getting into huge debt problem".
Another way you can use the magic of compounding interest is that you start saving your own money and be a millionaire in the next 20 years.
According to my calculations, you can be a millionaire in 20 years when you start investing $1000 every month in unit trust that gives you a 12% Annual return.
Saving $1000 per month might not be easy for someone.
If you have problem saving $1000 per month, start a small and easy business such as internet marketing that will give you a stable $1000 per month.
Don't get addicted to make lots of money and start spending a lot and not saving.
Financial success can not be achieved solely by making more money.
Financial freedom and success can be achieved only with the combination of making more money, spending less money, expanding current asset and good money management.
People who are married will use a ready made "small red envelope" to put in some dollars and give it to relatives / friends who are not married.
Base on the past, most people will receive $200 every year.
This is something that only Chinese will have so some people might not have heard about it.
Although it's a small amount of money every year, there's a magic in these "Ang Pau".
If you invest all your Ang Pau money into equity unit trust (let's use 12% as estimation), how much will you get when you are 25 years old? It's a total of $29,866.
79! This means when a Chinese graduate from university, he is capable to pay for a cheap house's deposit and buy his first house.
He might rent out some of the rooms and stay in it.
Before he starts his first job, he already owns a house with a small amount of passive income.
This is a Is that cool for a Chinese? No.
It's not.
The coolest thing in the whole part is the magic of compound interest.
This is not a privilege for Chinese only.
There are 2 ways you can use the magic of compounding interest: First, you use it to encourage your kids to start saving $200 per year.
In order to save $200 per year, you will get your children to form a good habit to budget his expenses and not buying things with emotional influence.
This solves most of the problems which young people face which is "spending more than what they earn" and "getting into huge debt problem".
Another way you can use the magic of compounding interest is that you start saving your own money and be a millionaire in the next 20 years.
According to my calculations, you can be a millionaire in 20 years when you start investing $1000 every month in unit trust that gives you a 12% Annual return.
Saving $1000 per month might not be easy for someone.
If you have problem saving $1000 per month, start a small and easy business such as internet marketing that will give you a stable $1000 per month.
Don't get addicted to make lots of money and start spending a lot and not saving.
Financial success can not be achieved solely by making more money.
Financial freedom and success can be achieved only with the combination of making more money, spending less money, expanding current asset and good money management.
Source...