“Everyone who has achieved financial independence will tell you that – at least in the early days you have to work smarter and harder. The price of success must be paid in full, and it must be paid in advance. There are no shortcuts.” John Cummuta.
Saving is traditionally and simply defined as not spending. Investing take place when saving actually start to earn something.
“Wealth is not a matter of intelligence it’s a matter of inspiration.” Jim Rohn.
Saving generate more stable return like fixed deposit and bonds, whilst investment gives a fluctuating return; stocks, unit trusts and long term bond are some of the examples.
Simple interest is the amount of interest paid at the end of a specific period of time. Compounded interest is the amount of interest paid on the original principal plus interest already earned.
“To be wealthy, you must develop a burning desire for wealth and financial independence.” Brian Tracy.
Rule of 72 is used to determine the number of years it will take for the principal amount to be doubled. Simply divide 72 by the expected annual rate of return on your investment.
“Before you can really start setting financial goals, you need to determine where you stand financially.” David Bach.
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