How to Make a Million in 10 Years

Many of you may have heard your parents tell you about the past when savings deposits could generate 10% annual interest. For example; 100,000 Baht deposit gets 10,000 Baht annual interest, and 500,000 Baht deposit gets 50,000 Baht annual interest. And you could enjoy spending all those benefits for months. 


Nowadays, you not only gain low benefits and interest rates from either savings deposit or investments, but you also put in hard effort to avoid being lost. Anyway, everyone will choose an investment that can grow their money sustainably well. 


Currently, the returns like interest or that gained from the investment are not stable and at a high level as in the past, and the situation can be volatile all the time. However, if you choose a proper investment, you’ll have a chance to get satisfactory and competitive compensation. 


The condition that possibly brings good returns is long-term and regular plan investment with equal allocation in each period (Dollar Cost Average: DCA). Investors should also select an investment that fits an acceptable risk level and matches their investing style.

 

Example: Start investing with 100,000 Baht with additional 5,000 Baht each month

Average returns (Annually)

After 10-year investment

Total money (Baht)

After 20-year investment

Total money (Baht)

After 30-year investment

Total money (Baht)

1%

741,262

1,449,936

2,233,110

2%

785,718

1,623,117

2,645,748

3%

833,642

1,823,585

3,159,369

4%

885,332

2,056,131

3,801,597

5%

941,112

2,326,432

4,608,068

6%

1,001,336

2,641,225

5,624,833

7%

1,066,390

3,008,507

6,911,505

8%

1,136,694

3,437,782

8,545,370

9%

1,212,707

3,940,350

10,626,775

10%

1,294,929

4,529,652

13,286,180

 

Remarks: The calculation will be processed by a tool called EZ Financial Calculators with the TVM calculator function to calculate investment value in the future. Starting by adding current investment followed by nominal investment on monthly basis, and then adding expected returns with the investment period. The result is an investment value in the future. 
 

Referring to the example Table, a factor to easier hit the financial goal is financial planning. Start being self-disciplined by investing continually in the long term. If you invest in assets that generate high interest, you’ll have a quicker chance to get a Million. 


Before choosing the type of investment to get expected returns, consider your risk tolerance as risk always comes with benefits. Low risk offers low benefits but provides high safety. That means there’s little chance of losing the principal. On the contrary, high risk generates high benefits accordingly but a big loss may happen. 


After that, it’s recommended to study specific information that you plan to invest, such as What type of asset to invest in? What are the conditions of investment? What about the retrospective return? Who will take care of financial investment? and also consider arranging investment port and expanding to foreign investment, etc.


Besides, after investing, you should regularly update the progress to monitor whether the investment port still creates benefits as expected. If not, you need to adjust the asset ratio as planned for the long term to the ratio you first intended to invest in. More importantly, don’t withdraw your financial investment or trade it frequently. You must hold the discipline that will enhance you to save a big sum of money in order to achieve your life goals.