Making money while you sleep – the compounding bank account (ASB)

When it comes to investing, you don’t have to become a genius or squeeze your brain to the extreme by figuring out stock investments, index funds, gold investments and many more complicated investments out there. In this article, we will talk about an investment that can make money while you sleep – It is a financial instrument that helps multiply your wealth by many folds. Even Tony Robbins, one of “Top 50 business intellectuals” by Accenture, really stressed on the potential power of compounding in his book, “Money: Master the Game”. But knowing how much the compounding power holds such super potential, how come we don’t see many people taking advantage of it?

“If you don’t want to work, you have to work to earn enough money so that you don’t have to work”


Based on the book “Money: Master The Game”, the key to having your financial freedom is to work hard enough and accumulate massive abundance of money – which then makes the money work hard for you. This compounding technique is your main road to financial freedom and acts as your freedom fund. Cutting to the chase, the main criteria to make money while you are sleeping is as simple as – discipline, have a portion of money to put aside in your bank account, and  having determination not to disturb the portion allocated. But I would like to think of the money you put aside not as your savings – but investments; investments that will grant you your dreams!

This would require you to make a significant financial decision in your life. What decision? It is the fixed amount of money that you are willing to set aside every single month out of your income stream. How much amount of your money you are willing to park inside your bank account and leave it untouched no matter what happens in your life, no matter how desperate you are – that is the sacrifice. But heed my words that your sacrifices won’t be in vain for the money you put aside will keep on accumulating and grow, and keep on growing on dividends until you see that the income it produces on compounding effects will be big enough to help with your lifetime needs and wants and for the people you care.

“Riches are not an end of life, but an instrument of life”

– Henry Ward Beecher

Some examples that have compounding effects are like the retirement scheme in The United States, 401k – or in a more relatable context in Malaysia, the Amanah Saham Berhad (ASB). Let’s take an easy example:

 If you take a 100,000 loan for 30 years. Every month you put in RM 650 – this would give a return of approximately RM 8,000 a year for the first year, and you will have about RM 17,000 the second year. How does this happen?

1st year

If 1 month = RM 650,

12 months = RM 7,800 (this is the amount you will save in your bank for one year)

With an average of 7% return annually for ASB,

You will get RM 7,800*1.07 = RM 8,346, you just invested and obtained a great amount of approximately RM 8,000 a year!

2nd year

Assuming the monthly payment is the same as 1st year, you will still pay full RM 7,800 a year for the second year.


The calculation would be calculated as dividends on top of dividends, what do you mean?

It means,

[RM 7,800 (full year payment) + RM 8,346 (first year payment + 7% dividend)]*7% = what do you get?

RM 17,276!!

Who would give you RM 17,276 in two years?! Plus, you can now put a 10% deposit for a RM 170,000 house now – simply awesome. So how much can the amount grow to in 5 years? – it is RM 47,995 but this excludes yearly or quarterly bonuses that the banks may announce which means the amount should be higher than RM 47,995, crazy right? The amount will keep on accumulating like a snowball because it grows dividends on top of dividends from previous years. Having all the necessary capital, you can now take steps to proceed to know the 5 things you should consider before buying your first house or you can start by knowing the basics of buying a house through the 7 steps guide to buy a house – the complete guide – it is all up to your own pace.

“My wealth has come from a combination of living in America, some lucky genes, and compound interest.”

– Warren Buffett

Now imagine a bigger vision – after 30 years that 100,000 loan you took may have stretch to RM 600,000! just by applying consistency and discipline – who will give you RM 600,000! let alone RM 1000! Using the power of compounding you will be able to achieve financial freedom!

But always and always make sure to have that minimum amount saved in your mind and take action to do the needful, put the money in your compounding bank account. Tony Robbins advised, “turn your should into your must!” and in this case having that clear mind to achieve financial freedom and make that fixed amount saved in your bank account must be your must! This is only the surface about investing and we are not even talking about active aggressive ways of investing. all you need is discipline and patience after making that calculation and follow through to your plans, goals and visions so that you can cater a happy life for you and your loved ones.




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