Is Your Finance Strategy "Think About It"?
I spent about an hour giving an investment crash course to a friend who is seeking for money advice.
I talk about how the market return curves works and risk-free rate. I intended to "sell" him the idea of getting PRS incentive by investing in the Private Retirement Scheme. For RM1,000 incentive and tax relief - that's more than 100% guaranteed return if he only invests RM1,000.
Then I found out that he has some money that looms free around his account. So I suggested that if he hesitates to do PRS, he would at least put the funds in fixed deposit. "I will think about it." -.- " WHAT!?
That's what happens to some people. They have the best people around (one of them being me, I hope) to help them, give them knowledge, and even offer free money. But they always make the choice to think about it.
Think About It, And Then Act. Like everything else, finance is action bias.
Look at the vast difference when you do something instead of dreaming:
Thinking about writing a will and actually writing it. - Peace of mind
Thinking about investing and actually investing. - Increase the probability of retiring earlier
Thinking about making home cook meals and actually cooking. - Healthy living
If you need to think about saving spare cash in FD or not, you are wasting your time thinking. In fact, you should be investing even if you don't know what to invest. #Insurance excluded.
Life is hard, relationships can be hard, emotions and health are hard but finance is the simplest life math on earth. Make the right choice of chasing the numbers.