Philip Khor

Here’s a little teaser.

Say, you save RM 500 per month of your hard earned money. Diligently, without fail. I’m 99% sure 99% of you would find it quite difficult, whether you’re earning RM 2000 a month or RM 5000 a month. For convenience sake, lets say you got the discipline to put aside RM 500 after taxes, bills, repayments, etc.

Question: How long will it take for you to save up RM 1,000,000 (one million ringgit)?

Points to consider:

1. Interest rate is at 2.5% (per annum) for low risk investments (FD)

2. Inflation rate is at 6% (possibly more)

3. RM 500 today might not be worth RM 500 in x years.

Well. The answer?

2000 months (or roughly 167 years).

High returns is cancelled out tremendously by the rising costs of goods as well as inflation (escalating at increasing rate for the past century).

It is really scary, I tell ya~!!

Moral of the story: Use all your money today, and don’t worry about tomorrow (source: 2012 movie)

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