I used to view “financial freedom” as a distant, even delusional concept reserved only for the ultra-wealthy. This mindset kept me hesitating for a long time. However, once I looked at it through the lens of mathematics and practicality, I realized this door is much closer than I ever imagined.
Simple Math for Big Goals
Let’s start with a specific number: 20% per year. This is the target yield that sustainable value investors often aim for. With a capital of 600 million VND and achieving this rate of return, you would earn 120 million VND annually. Broken down over 12 months, you effectively have 10 million VND per month—a passive income stream sufficient to cover basic living expenses in many cities.
While 600 million VND is not a small sum, it is far from impossible to accumulate over several years of working. The key here is not just the initial capital, but the ability to consistently generate a 20% return.
The 10-Year Formula and 30 Minutes a Day
Achieving a 20% profit isn’t about luck; it is the result of disciplined practice. The rule is clear: Apprentice for 10 years, dedicating at least 30 minutes every day.
Why 10 years? Because this is a sufficient timeframe for an average person to:
- Understand Economic Cycles: Experience every stage from euphoria and bubbles to recession and recovery.
- Grasp Policy: Understand how money flows through government monetary and fiscal policies.
- Read Businesses: Learn how to analyze business operations, competitive advantages, and the intrinsic value of an asset.
Shortening the Path
The 10-year milestone and 20% return serve as a “safe framework” for everyone. However, if you have a deeper passion and a hunger for learning, this roadmap can certainly be shortened. In favorable market years, achieving returns higher than 20% is entirely feasible if you possess solid knowledge.
