My Investment Journey

I’m not the kind of person who think a lot about personal finances since young. All that I know about money is the virtue of saving, that was deeply rooted to me since I was young. Other than that, I did not have any knowledge about investments.

When I was in BMT, I decided to sign on to the military, knowing that I would have a scholarship, lightening the financial burden it would have on my family. I did not think any further about my personal finances then either.

During my first year of university, I took this business module called Financial Management. The most memorable topic in this module was this concept called “Time Value of Money”. If today we would put $100 into a investment vehicle that could generate a modest return of 5% per annum, you would have doubled that amount in 15 years. 15 years sound like a long time but it is better than letting your money sit in a bank and let inflation slowly erode the value of money.

Imagine this. If you have $1 million, would you rather spend this money on a big ticket item such as car, travelling around the world or would you rather invest this $1 million and generate a constant cash flow of $50,000 per annum to fully cover your living expenses every year without having to do anything. I would choose to do the latter.

I’m not saying that we shouldn’t spend money investing in experiences. I’m saying that we should think for our future self too. Allowing them to have the luxury of indulging in experiences as well 🙂 I would love to plant seeds for my future self to reap the fruits of financial freedom. But that doesn’t mean I will neglect my current self!

Now, think about this. How many 15 years do we have in our lifetime? If we are lucky, probably we can live through 8 financial cycles (~8 years for one). I’m 21 years old as of writing. I realise the need and advantage of starting early. Hence, I will be exploring the different ways that I could leverage on my youth and stable stream of income to grow my net worth so that one day I could be financially independent. The ultimate goal for this blog is to journalise my thoughts, my actions so that I could be accountable to myself.

I have started my Investment Journey, how about you?

~ Daryl