Are You Working for Your Future?

Think about these questions.  What is the reason for us to go to work in the early morning and return late, day in day out?  You may say it is for earning more bucks or may be for career advancement.  What is the purpose of having financial plan?  It may be for comfortable retirement or able to send your children for overseas education.  Whatever reasons you can provide for these questions, at the bottom line, you need to have money to work for you.  But where is the money come from?  Very simple, it will be from your savings.  But the big question is, how to save?



Figure the question this way.  How many hours in a month you work for yourself?  In other words, after receiving your monthly salary, who do you pay first?  Your bills or yourself?  If you say you will pay yourself whatever left over after bills, it is really sad.  You should ask yourself you are working for yourself or for your bills?

I believe you have heard of compounding effect.  It has a best friend, named "time".  The long the time, the more power the compounding effect is.  Put it in the other way.  If we could start invest as early as possible, it is actually taking less time to achieve our financial target.

Based on all of the above, be nice to yourself.  Pay yourself first before any spending and payment.  Invest it and let the compounding effect do the rest.  It is really easy.  Do you know if you save $5 a day, you will have a savings of $150 a month.  If you invest this $150 monthly into an investment that generate 10% return a year, you will have more than $300,000 in 30 years or $900,000 in 40 years.

Therefore, the choice is yours.