A good financial management and wise investment is a must to be rich! Good financial management allows us to save money as the fund for our investment.

John is earning a low monthly income from his job. He knows the power of compound interest, hence he saves a small amount of money each month in order to invest.

Is it possible for an investment to grow by a compounded rate of 20% annually? Wait a minute; we never know what will happen in the future. We couldn’t be sure that we will get 20% of compound grow of our investment annually. There are risks in investment.

He could choose to have his own business instead of working for others. But there are risks too: he might lose all his money if he fails in his business. He could choose to buy a shop as his investment, and rent it to others. What if the market of real estate turns out to be bad, nobody wants to buy or rent his shop, and thus the return will be 0%. How can he gain wealth? He could choose to buy some bonds or shares. But there are also risk that the share market may not perform and his investment return turns out to have negative.

Good financial management needs self-discipline. The power of compound interest needs time and patience. I believe that everyone of us can make it once we have that determination. However, 20% of compound return per year is not easy to achieve as investment comes with risks that are beyond our control. If everybody is able to do so, then common people will be millionaires.

Well, how can we achieve the goal?

First, pay full attention to your investment. Second, sacrifice your time to watch and monitor your investment. Third, use your heart to observe and learn the experience in investment. I just chose to invest in the stock market as it can be one of the most rewarding type of investment within a specific timeframe. Furthermore, we do not need a big amount of fund to buy a stock and the processing of buying and seeling stocks is simple.

In this blog, I will disccuss various ideas and techniques to help us getting closer to achieving compound return of investment of 20%. Good luck and all the best in this investment journey!