CJH Financial Planning

It is often said that the first million is always the hardest . Assuming you are building your wealth from scratch and not raking in a six-figure monthly income like a professional footballer, you may have bills to pay, family to feed, and risks to worry about.  So how can you do it in a reasonable amount of time? The answer is simple (but not easy) - Discipline and Compound Interest . Firstly, we need to instill the discipline of "paying yourself first". This means setting aside a non-negotiable proportion of your income into investments every payday. I recommend 10-20%, but you can do more if you wish to. This money must not be touched for any purpose other than for growing it. Next, we need to choose where to invest this money, and use the effect of compounding to grow it.  As Albert Einstein said, " Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it. " The type of instrument that you invest in makes

Think of your financial life as a sailboat, bringing you from where you are now, to where you want to go in the future. Think of the sails as higher-risk investments, as they help your boat goes fast. These may include stocks, bonds, funds, or other alternative assets. The boat (or the hull) is akin to cash and other low-risk assets like fixed deposits. They keep you safe and stable on your journey. When you have too much sail and too little boat, you are 'windsurfing'. If you have seen windsurfers in action, you will often see them capsizing as the winds topple them over due to their small base. Your boat may break before you reach your goal. On the flip side, if you have too much boat and too little sail, you are not harnessing the power of the wind. Instead, you are rowing your boat by hand. You will find yourself using lots of effort to work the oars just to move the boat a little, and certainly never getting to your destination on time. The key, therefore, is to find a goo