Have you ever thought of having your own house and asked yourself how much savings you should have? Have you ever wondered how much you should save for retirement and where the would the money come from? Or, what type of investment can grow your money?

A good thing about saving money is you will have an emergency fund or achieve your life goals, such as buying a house, a car, getting married, and investing your money to gain interest for spending during retirement. Thus, if you start saving early, you will have an opportunity to reach your financial goal quickly.

The following question maybe for those who don’t have much salary and still have a monthly burden like expenses including debt. They may have little money left or may not have it at all. Then, how can they dream of financial freedom? The answer is their dream can be true by start saving a small amount of money with the DCA approach. DCA is the automatic investment of a set amount of money on a periodic basis, say monthly.

DCA is well-suited for those who want to grow their savings by investment and can take moderate risk in Mutual Fund. DCA fits beginner investors who are cautious about investing huge sums of money. Besides, Mutual Fund has a wide variety of policies so it’s a good diversification; and when damaged, it helps minimize the loss of investment.

A positive side of investing in a Mutual Fund is Fund Manager will generally oversee the fund and manage its direction to grow your wealth, regardless of a large or small amount of investment. With Mutual Fund, you can get rich quickly if you have investment discipline and choose a fund that fits the long-term investment. Here are some investment tips to “get richer and faster”.

The investment conditions of the 5 following cases

1. Invest 2,000 Baht per month

2.Receive 5% average returns per year

Case #1

Start investing in Mutual Fund at the age of 25 and quit investing at 34 (10-year investment or 120 months) and your money grows at 310,565 Baht. Suppose you quit investing at 34 but still retain your money in this fund until you reach 60; the amount of 310,565 Baht will be increased to 1,051,683 Baht.

Case #2

Start investing in Mutual Fund at the age of 25 and quit investing at 60 (36-year investment or 432 months) and your money grows at 2,412,992 Baht.

Case #3

Start investing in Mutual Fund at the age of 35 and quit investing at 44 (10-year investment or 120 months) and your money grows at 310, 565 Baht. Even if you quit investing at 44 but still retain your money in this fund until you reach 60; the amount of 310,565 Baht will be increased to 677,924 Baht.

Case #4

Start investing in Mutual Fund at the age of 35 and quit investing at 60 (26-year investment or 312 months) and your money grows at 1,276,512 Baht.

Case #5

Start investing in Mutual Fund at the age of 45 and quit investing at 60 (16-year investment or 192 months) and your money grows at 586,486 Baht.
 

(Calculation method: Use EZ Financial Calculators with TVM calculator function to calculate investment value in the future by filling the amount of determined investment, such as weekly, monthly, quarterly, annually, and then stating expected returns and investment period (weekly, monthly, quarterly, annually), the outcome will be investment value in the future.
 

Referring to all cases, it’s found that case #2 starts investing from an early age and continually, so this case gets the best returns. The key is compound interest which comes from the principal accumulation value. Once the principal is increased, interest or returns will rise according to the investment period. 

Above all, there are 3 key factors comprising interest rate, time, and continuous investment without withdrawing money. As a result, returns are getting higher throughout the times, and finally,  it’s the power of compound interest that always makes “Start earlier, get richer and faster” possible.