
There have been alarming concern about the global economy downturn recently, in addition, the political unstability in Malaysia has also arisen uncertainty in our employment market, money market, share market, inflation, consumer index, consumer spending power/attitude etc. How shall we react on this crisis, or proact on the potential or opportunities?
We have come up some ideas below and hope these ideas could give all of us the directions. But we must take postive actions on these suggestions and ideas, instead of knowing or sitting on these ideas. There are only 4 ideas for easy understanding and actions.
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You could have read the investment idea from my post about the Rule of 72 for Money Management and Financial Planning. And I had introduced how mutual fund (or unit trust fund) that could be a great tool to everyone to achieve financial goals.
What is a “mutual fund”?
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For money management and financial planning, Rule of 72 is a golden rule.
Rule of 72 is the most popular financial method to estimate time required to double an investment at a given interest rate, or halve the savings at a given inflation rate.
- Years to double = 72 divided by Interest Rate (in percentage), e.g. it takes 12 years to double an investment at 6% interest rate.
- Years to halve = 72 divided by Inflation Rate (in percentage), e.g. it takes 12 years to halve an investment at 6% inflation rate.
Technorati Tags: Annum, Compound Interest, Drastic Decision, financial planning, Golden Rule, Housing Loan, Inflation Rate, Initial Investment, Investment Savings, Millionaire Dream, Money Management, mutual fund, Redemption, Rm80, rule of 72, S Education, S University, Systematic Approach, unit trust fund, Year 63