1. Get a job, earn some money. ( Do something you like most and do it with persistency can earn you most in long run )
2. Setup Standing Instruction to transfer 10%-30% from your income account to another dedicated saving account.
3. When the saving account reaches 50% or the same amount of your Income account, save the extra to a 1 month Fix Deposit
4. When the 1 month Fix Deposit is as much as 2-3x your monthly income, start another 3 months FD.
5. Like wise you start keeping 3 months and 1 year FD. Its totally up to you how much to put in each FD. If you don't have patient, you may even choose not to start a 3 months FD. But you HAVE TO do Steps 1-4 as minimum. Else my guarantee to you is considered void.
( you can jump from 4 to 6, but you cannot skip 4 and 6 )
6a Start putting money into Mutual Fund or Unit Trust ( for now, they are the same )
6b The way you invest is like step 2, except it is not by percentage but a fix amount.
6c Start a mutual fund with RM1,000 and automatically put in RM 100 every month. ( from saving account or income account ). Make sure the automated systems runs for the next 3-10 years.
7a Understand that stock market is a 'representative' of country's economy
7b Select businesses that you like, have worked with and/of have high hopes in.
7c Analyse the figures and management of the company to decide which business you would like to own too
7d Buy that company shares ( if in doubts, just start with Blue Chips )
Results : If you start at age 22 with a monthly salary of RM 2,200
by only doing step 2, you will have more than RM 200,000 by age 52
by doing step 3, you will have an extra of RM 100,000
by doing step 6, you will have another extra of RM 120,000
So you have about half a million CASH by the time you are about 50.
It may not be a Huge Figure but don't forget, this half a million is by doing Nothing but only setup the initial steps. It may take only the first 3 years to setup everything.
