17 August 2014

Time Value of Money - Key Thing You Need to Know

We have wasted a lot of time doing a lot of things that do not bring any benefits to us. Sometimes, we focus on making money than making use of time wisely. In investment, the first element of the success formula is "Time".

Everyone has equal time, although they may not have same earning profile. Whether you are a business owner, a worker, a retiree, or even a young kid, we all have same amount of time. With "time", we can create something out from nothing. In investment, we can create money from the money. The money we have is just like a seed of plant, where you need some patience and time and the technique to grow the plant so that it can bear nice fruits and the seeds again.

The better skill and tools you have, the better result you would after certain time frame. For example, it takes 3 years for oil palm plantation to grow before it starts to generate palm oil for around 15 years. In this 15 years of palm oil production, you may use sell the palm oil for profits or continue to upgrade the skills so that you could produce higher quantity and better quality of palm oil products. This is a continuous process that require you to develop your soft skills and hard skills.

You may hire a good financial advisor to manage money for you, if you do not really have enough time to just focus on your career path. Then you should develop a skill to select good managers to work hard for your money. It will also create a good result for you after time passed by.

DO remember that, there is no free lunch in this world. You should know that "Time" is the most important element as and when your assets are growing bigger and bigger. If you understand the "Power of Compounding", you would be surprised that the investment amount that you earn in the final years could easily beat the total amount of savings you could achieve since the day you started to work.

I hope that my articles could inspire you to achieve your financial freedom via investment. It is a marathon that takes years to accomplish your mission. Let's work harder and stay stronger along the investment journey.

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