How fast do you double your wealth?

Last night, I had an online 1-on-1 coaching session. It was done for one my Money Automation System student.

He did all the homework assigned in the online course, and we scheduled a 1-on-1 to talk about his situation. He started out great because he is currently making a lot of money working oversea, more than RM300,000 a year in his mid-thirties.

First, we look into his saving rate. I always encourage people to have a healthy saving rate. If you can save RM150 from every RM1000 you make, your saving rate is 15%. This guy is saving as high as 60%! That's something he should be proud of!

Naturally, with such a high saving rate and high income, he should have already accumulated some wealth. So we went through the exercise of listing his assets and liabilities. He owns 4 properties and planning to buy more. Out of the four properties, he only has 2 mortgages. Therefore, from this Net Worth Statement, we estimated that his net worth is about RM2 million. Wow! He is a multimillionaire.

Then we went on to find out how much return he is compounding with his current net worth. And I showed him the Rule of 72 and use that rule to estimate how soon can he doubles his wealth. Currently, his wealth is getting around 7% return. To double his wealth from RM2 million to RM4 million, it will take him 10 years. It can be shorter since he is saving money from his regular income too.

I asked him, "Do you want to double your wealth faster? Imagine if you can get 15% return instead of 7%, you will get to RM4 million in 5 years, and become RM8 million in 10 years. When you have RM8 million, you'll have more than RM50k-RM100k passive income every month."

Of course, he wanted to know how to maximise his wealth and I told him how to do it the proper way, the safe way, and the fun way. And I showed him last night and he should have had an "aha" moment. I couldn't see his face but I was pretty sure a "light bulb" did light up in his brain.

So you might be wondering, how do you do the same --- double your wealth faster?
The short answer: have a healthy saving rate and invest safely and profitably.

The precise answer: save 30%, compound your wealth 10% or higher each year.

The details: I couldn't possibly show you everything in an email, or even in a thousand word article, or even in a well-written hundreds pages book. But I've in fact showed you a lot of stuff, through all the posting on my blog, the regular online webinars and also the online courses that teach you how to invest safely and profitably in businesses, stocks and properties.

If you want to learn how to double your wealth fast, start with this free ebook: https://kclau.com/lp/ebooklin