Saturday, May 26, 2007

Are you doing yourself a favor?...

Most people have always been on the look out for opportunity to build wealth... to have bigger houses, nicer cars, more money to spend and lastly the most famous sought after goal among us...financial freedom.

Well, define financial freedom?... the meaning varies from people to people...but i think many would agree with me that financial freedom to many people would means the ability to live comfortable live without having to worry about their financial situation.... which in short means money is not a problem.

How many people have this luxury nowadays? It seems only 5% of the population fits in this category statistically. A report from EPF showed that 90% of the people in this country have less than 100k in savings... hmm.... 100k can only last the most 5 years for those living in urban area...let alone if he/she needs to support their family...easily the numbers would be reduced to ~2 years...based on pure spending/expenses.

The question is what can we do to prevent us from having this problem when we retire later in our lifes?...
It's a no brainer isnt it?.. investment of course!....

Question is what's the best and fastest way to do it? Unit trust, property investment, FD you may tell me...property investment needs a relatively huge capital to begin with...Unit trust and FD on the other hand may sound like the safest and sure way but the return is really mediocre when you factor in the ever rising inflation, medical costs, and many other miscellaneous costs of living.
So after all the consideration, stock investment is the only way to achieve financial stability the shortest way for me. Apart from the small amount for the stock trading fees. everything else goes back to you... lately there's an article on the rich getting richer thanks to the booming stock markets... in China as many as 1million trading accounts being registered in a month!...

I'm not saying that you'll be rich by just investing in stock market but doing it the right way is how you can get there. Warren buffet, Bill Gates do not get rich over night... these people are visionary i would say... so look deep into the future... imagine what the world might be in 10, 20 years down the road...and use that knowledge/information to help you in your selection of stocks... of course current fundamental values of those stocks you've identified matters the most... you don't wanna choose a company that get's into PN17 or worst ends up delisted/wind-up the moment you bought them. Lastly, technical analysis will provide guidance in the timing for entry into the stock market.

So use all the tools and resources in the internet to help you achieve your GOAL, and if you're new to stock investment, the only logical thing to do is to read up on this topic before you start...

You don't need much to start this wealth creation project on your own... I started mine with only RM5k....
So if you don't wanna end up old, penniless, and leaving a life filled with fear, anguish and uncertainty... you better start now for time does not wait for no one.




1 comment:

Unknown said...

People should all learn from these reports and do something about their it. It's never too late. Nice reminder Toe... :)