One of the misconceptions about personal financial planning and the main reason why most people neglect their financial planning is a financial planning the rich’s matter. It's not about the poor and the middle class, which is a very misunderstanding. In fact, personal financial planning is directly related to people of all financial positions, whether they are rich or poor. Especially for the salary earners who think they have low income or don't have enough money to invest. They may not believe that they can invest in million (and millions), which in this article will show you how to invest in millions.

From the above picture, we just save 20, 30, 50, 70, or 100 baht a day and bring it to the investment for an expected return of 6% per year. At the end of 20 years, we will have 264,856baht, 397,284baht, 662,141 baht, 926,997 baht or 1,324,281 baht, respectively.

You can see that with just this, we can be 'rich'. It is not difficult at all. In addition, if we have a longer investment period, for example, 40 years, the results of the investment will be even more wonderful.

From the picture, if we have enough time to invest, it will make the power of compound interest work even more. And we'll have a greater chance of success as well. Accumulating money to make it work for us with the power of compounding interest is the secret of real financial success.

The power of compound interest is comprised of three key components: principal, investment period, and the interest rate or the rate of return on investment Let's explain the meaning and importance of each element as follows:

• Principal : you should save money or have a large enough investment each month. Because the more you save, the more significant interest earned each month. One thousand baht may give interest in a penny only, so it has almost no power to change your life. But the interest of one hundred thousand baht may have different results.
  
  
• Investment Period : The more you save or invest with the longer continuity will make more compound interest, its power will explode at a 10% annual interest rate. Your savings are doubled every 7.2 years. But if you are saving for 15 consecutive years, it will quadruple. And it will increase to eight times if you are saving for 22 consecutive years. The power of compounding will be even more if you do not hasten to use the dividend.
  
  
• The interest rate or rate of return on investment : The higher interest rate will greatly reduce the saving period and allows us to achieve our goals faster

If we want to know how to find an investment with an expected yield of 6% per year? The answer is an investment through stock mutual funds or equity savings schemes. This can be done by debiting your account on a monthly basis to buy stock mutual funds (in the case of investing through mutual funds) or buying shares as specified by the broker. The minimum investment depends on each asset management company and the broker determines. For example, if we want to invest through a retirement mutual fund or RMF for a tax deduction, the minimum investment is 500 baht. Otherwise, if you want to save on stocks, the minimum investment (some brokers) will be at 1,000 baht, etc. (you are recommended to study more details before investing).

A monthly investment like this is called a Dollar Cost Average or DCA. It is a cost-average investment and is an automatic systematic investment. It helps us have the discipline to continually invest which will be able to make a dream comes true 'I want to get rich and be a millionaire'. It's not really difficult than what I can do.

Nipapun Poonsateansup CFP®, ACC

Independent Finance Planner and Public Speaker