A little bit of introduction about myself. People who know me call me Jack. I am in my early 30s. I have approximately 10 years in experience when it comes to investing In Bursa and maybe 5 years in experience investing abroad. In the past 7 years I have a CAGR of 17.6% in KLSE but that came after I blew away everything in my first 2-3 years of my investing journey. I do not consider myself a genius and I do not think you need to be very smart to succeed in your life.

Subconsciously, I believe many people have exposed themselves to credit facility without knowing that it will be a powerful tool. What is the first thing that comes to your mind? Credit card. When you are using a credit card you are effectively leveraging on the bank’s money as usually it will have 20 days interest free period depending on your card. If you are late for repayment the bank will capitalize on you by imposing late payment fee or high interest fee on your credit card balance.

How much can the small window of interest free period save you anyway? If you swipe 1k, you can potentially save RM2.19/month using a 4% high saving account as an example. It may not be a lot but this is a prime example of leveraging on other’s money. What is so miraculous about this concept is credit facility like your investment will ‘snowball to become an avalanche’. What if you can effectively leverage 6 figures, 7 figures or 8 figures using the bank’s money? There’s endless opportunity. You don’t even need to save cash as u can just take a cheap business loan or credit line from the bank anytime.

Do you think people who borrowed from ‘along’ consciously because they wanted to? Or do you think they were stupid? It’s because they had no choice. They are not bankable.

Always, always develop good relationship with your banker and build a responsible and healthy track of credit record by paying your loan on time ‘consistently’. If you have your own business this is even more important as companies can take long term loan at a more competitive rate depending on your industry. Always strive to be more and more bankable. If compounding interest is the eight wonder in the world then ‘Credit facility is the ninth wonder is the world’.

Quoting from Robert Kiyosaki “Leverage is one of those words that can mean many different things. What I mean is you have the power to earn more and more by working less and less.