1. Convert income money to capital money. This is another way of saying that a person must spend less than his/her earn. Capital is required to begin any kind of investment program. Once you have amassed some capital by saving, then your money can begin to make money for you. No capital, no investment income.
2. Start while you are young. Compound interest- 8 wonders in the world; the phenomenon of compound interest delivers its most fantastic rewards to those who put their money to work for the longest time.
3. Have a simple plan. Calculate where you are and plan where you want to go. Understand how much to achieve per year to reach your goal.
4. Have a realistic goal. An unrealistic goal will make a person out of focus and unable to keep on track their financial plan set earlier.
5. Be patient and disciplined. It takes years for compounding interest to show its magic. Cyclical market will caused a person to lost focus by greed or fear...
6. Do tracking on your goal regularly. If fail to achieve goal in certain, you may need to review on the portfolio on what went wrong; to cut down expenses? finds extra income? etc.
7. Avoid major life disruption. Easy to say than done, but it is one of the vital fact in financial planning also. Accidence, personal health issue may cut out a big chuck of the money you invested. Maybe what you can do is take care of your own health; cutting cigarrette for smoker, have a balance diet etc.
8. Let the power of coumpound interest to generate your wealth
