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It is possible to plan for savings without having to wait for money, because the less money you have, the faster you need to start saving. For anyone who wants to start saving but does not want to do it the hard way, today, ACU PAY will introduce the easiest way to save money, whether on a small income or any career basis can turn thousands into millions with ‘Save 10% of your income, you can earn millions’ techniques.
The easy way to calculate savings is to put “total income before deduction” in that month divided by 10 and deposit the results into account every time immediately.
For example,
Monthly income is 15,000 ÷10 = 1,500. The monthly savings amount is 1,500 baht.
To grow savings, you may choose to deposit it in high-interest or fixed-rate savings accounts, but there are other important factors that can turn small sums into large sums, such as using it in investment and relying on the power of compound interest, which depends on yields rate, duration, and use interest to invest more.
If we deposit 10% of our income, which is 1,500 baht, into a savings account that offers 0.25% interest per annum with monthly savings for 10 years, we will save about 183,800 baht.
Nevertheless, if we put 1,500 baht into a fund that offers an average yield of 5% – 10% per annum in the same amount for 10 years, it turns out that we have accumulated around 234,000 – 305,000 baht.
The investment will give us more growth returns than in regular savings accounts, and the more interest we take into savings, the amount of interest on the principal will continue to increase.
Apart from the fact that yield rates and regular savings are important, there is also a very important “investment period.” The longer and more continuous the investment period, the more interest compounded it will benefit.
Let’s compare the savings between Mr. A and B with the same salary of 30,000 baht per month, with a monthly saving of 3,000 baht and an average return of 10% on investment per year.
However, it’s different that Mr. A chose to save at 30 years old, but Mr. B chose to save at 24 years old.
It turns out that Mr. A, who started saving late, had to wait until he was 44 years old to save millions, while Mr. B, who saved at an early age of 38, had already made millions.
Even though the two have the same life background, the difference is age in saving. The sooner you save, the sooner you have a million, and this is the importance of a variable called ‘duration of investment’.
However, the monthly savings of 10% is only the minimum savings. Currently, it is recommended to save more by adjusting the figure to suit your income.For anyone with heavy burdens and low incomes, can gradually save as much monthly savings as possible. Additional jobs may be needed in the meantime to help ease the burden. The most important thing is not to give up on saving; a little bit of money savings would be better than having no savings.
