How to increase your savings at every birthday or increment...

“I thought I could save money by cancelling my gym membership, but I’ve now grown so fat that I’m spending much more on new clothes!”

TWO weeks ago we discovered the “Latte Factor”. How would you like to turbo charge your way to wealth accumulation?

LEE MUN WAI introduces the “Espresso Factor” this week!

THE Expresso Factor is simply the Latte Factor on steroids! Every birthday or every time you get a pay increment, increase the savings you put aside into your special Latte Account by 5%. So instead of saving RM300 monthly, you will now be saving RM315 monthly after a year. Repeat this every year diligently.

How does the Espresso Factor improve your wealth? Following on from the previous example with a 6% annual return, if we compare the Latte Factor to the Espresso Factor, instead of accumulating only RM300,000, you will have accumulated more than RM538,000. This is a 78% increase in your Latte Account after 30 years and more than halfway to that million ringgit goal. In other words, you will have an extra RM238,000 simply by increasing your savings by 5% every year.

Go a step further and get your Latte Account working just a little harder by setting up a well-constructed and efficiently managed investment portfolio returning you a double digit annual return. Watch your savings grow like they really are on steroids!

How can we get the Latte and Espresso Factors to work for us in real life?

Some practical examples are:

●Boil your own water and fill up your own bottle to drink rather than buying bottled mineral     water.

●Terminate that gym membership you signed up for but never used after the first few months.

●Invite your friends over for a pot luck party instead of going out for a meal.

●Give up smoking or too much alcohol...it's also good for your health!

Get the idea now?

If you still cannot fathom the maths behind it all, contact your financial planner and let them handle the maths for you over coffee. You just need a financial buddy to work with you to improve your financial position. Start focusing on your Latte and Espresso Factors − they really do add up!

Clement Jouling ialah Perunding Unit Amanah berlesen (Licensed Unit Trust Consultant). Sekiranya anda berminat untuk mengetahui lebih lanjut tentang pelaburan unit amanah, boleh hubungi beliau terutamanya buat anda yang berada di Kota Kinabalu dan sekitarnya.