How do I start

There are many mode of investment to consider about. It’s all depends on the personal attitude towards risk or the individual risk appetite. Some would prefer high risk-high gain concept, we classified them as aggressive investors. Most of their portfolio concentrates on individual equities or stocks.

The common portfolio of an aggressive investors :-



There are also a group of people, where this group still have the preference on investing, but rather concentrate on less riskier approach, such as bonds and money market instruments. Not saying they are free from any form of risk, but the risk level is reduced as compare to equities. We called them moderate investors. A quick glance on their portfolio shows a bigger piece of pie on Bonds and Money markets.

The common portfolio of a moderate investors :-


The third category of people is, who not willing to risk any of their money in any form of investment. Most of their portfolio shows (if there’s any), their hard earned money were parked under Bond , Money Market , FD or savings account.

The common portfolio of a low-risk investors :-


A gentle reminder, no matter how high is your risk appetite level is, it’s always a good decision by not to put all your eggs in one basket!! Diversification must be put in priority on any type of investments.

Investment Risk

Good day to all, by now you should understand what is compounding and how investment helps you to achieve your financial goals.

Now let’s see, how many types of investment instruments or vehicle are out there for you to consider from. From conservative to aggressive, you can choose the type of investment that suits your risk tolerance. Remember, there is no investment tool that is without a risk associate to it. Even a regular savings in any bank is prone to risk. The total amount insured for 1 account in any 1 bank is only RM60K.

Below is the illustration of various kind of investment, each with its own level of risk and return.

Source :- Easy Guide to Risk , Prudential Unit Trusts Berhad.

In conclusion , the level of risk the person is willing to take is depends on the individuals investment goals as well as personal attitude to risk. Everyone know that the higher the risk , the higher the potential rewards. But , are you ready to take such risk , considering where you are now ?

Investment ....When should I do it ?

Many people have wondered when is the correct time to do an investment, let analysis this question with an example for an easy understanding.

Mr. Blue , Mr. Green and Miss Pink , just graduate from university and immediately obtain a good job in a MNC status company with a monthly pay of RM2500.

Mr. Blue realizes the important of savings and allocates 30% from his monthly income for the purpose of investment and retirement fund. So, Mr. Blue saves ~ Rm 750 monthly.

Mr. Green realize the important of investment and retirement fund, 5 years later and start to allocate 30 % from his pay. Now lets assume no income change over this period. So , Mr. Green saves ~ Rm 750 monthly

Miss Pink , on the other hand have decided to start to save for investment and retirement after 10 years of her work. The amount allocate is the same 30 % , which is Rm 750 a month.

So , Mr. Blue , Mr. Green and Miss Pink starts to save from year 0 , 5th year and 10th year respectively with annual saving of Rm9000.

Assume all of them invest in an investment vehicle that promises a 10% consistence return over a period of 30 years. The final targeted amount by them is, to accumulate at least Rm500K at the age of 55.

Now, we knew that every one will achieve their target at their age of 55 , but the question is, who will put the least amount of money to achieve the target. Let see the table below ,

Mr. Blue only needs to invest a total of Rm33K to achieve his dream of Rm500K at the end of year 30.

Meanwhile Mr. Green needs to invest a capital of Rm60K to achieve his dream of obtaining Rm500K at the end of year 30.

On the other hand, Miss Pink, need to invest Rm135K to achieve her dream of reaching Rm500K at the end of year 30.

Conclusion from the table, you need to invest as early as possible to achieve your dream or goal, with minimum effort. The rest, let the compounding magic to take over.

What is Compounding ?

First of all let me explain how compounding works for you …. We know compounding helps your money grow exponentially … so , what is compounding anyway ?

In layman term , compounding is an interest over interest + capital , ( that’s how most Ah Long’s make their money !! : )

Example of a compounding effect on your Rm500 , with a yearly interest of 10 % compound for 5 years. Meaning , you deposit your Rm500 , in a investment vehicle that promise a 10% return consistently over a period of 5 years.

Did you see the magic ? Your money have grown 1.6 times over a period of 5 years. Now what have you done ?.....simply hold and wait. ( A strategy inspired by Warren Buffet , buy & hold forever ) Lets see , if we left our investment compound over 30 years … at the age 55 ( assume your age is 25 now ) , you will end up with Rm 8724 … is that wonderful …your money have grown to a whooping of 17.5 times ………


Now you know why , Albert Einstein called compounding the 8th wonder of the world …..

Towards $$ Freedom

Hi all ,

This will be my first article, on my struggle to be on the path towards a financial freedom. Being an engineer with a yearly income of 60K, not really helping me to be financially free…, yet put me into more trouble to continue on daily life. With a spouse, 2 children and my parents and sibling to take care …60K yearly seems nothing …currently. “An engineer in a multinational status company…” that’s what remains and not the dollar …. :(

I have been reading lots of books, financial blogs, business news …..and two key words keeps on popping in the books , blogs and other financial websites is , INVESTMENT and COMPOUNDING. Un-realize what is investment in first place, I did do some investment back in my childhood in ASW2020 , somewhere in 1996 with a capital of Rm200, now , the money had double in its value. I’m definitely experiencing as what labeled by Einstein as the 8th wonder of the world…. “The power of compounding“.

Realizing this , I’m start to allocate ~ 10% ( previously this money goes to my savings ) of my income for the sole purpose of investing. I have read the Azizi Ali’s handbook “Growing Your Money“ , and the book really helps the beginners to the investment world , introducing the many type of investment tools and vehicles out there to be utilized.

Me and my spouse have a set a goal confidently , to be a millionaire by the year 2019 , a merely 10 years from now , and I have to construct my path and plan my strategies clearly to achieve my million dollar goal. This is not difficult to achieve, since somebody have done it within 5 years starting from zero just like me. I will put this gentleman’s as my mentors and gurus following exactly what they advice. Follows exactly what to do’s and don’ts ……

Let me tell a story before ending this article …..

“ There was a village with no rain falls for few years …. the village leader decides to conduct a prayers dedicate to the rain God for a rain fall. A day was set for the prayers and hundreds of village people turn out to participate in the special prayers. Out from hundreds of people …there goes a child carrying an umbrella under his armpit. One village man ask the boy , why child you carrying the umbrella ? The child reply “ after the prayers completes, I don’t want to get wet from the falling rain …. “

Now, that is confident …. Not a mere hope ….

Follow my path towards my golden dream and I will share my strategies with you , as I believe I can gain more knowledge by teaching someone else….