The Hidden Wealth Secret Grandma Left Behind

In the Southeast Asia region, there's a famous movie called "How to Become A Millionaire Before Grandma Dies".

This is a Thailand-produced movie about a kid who quits work to care for his dying grandmother, motivated by her fortune. He schemes to win her favor before she passes.

Spoiler alert – this issue is not a movie review, but I'll need to reveal the movie's ending to highlight the point about money.

So, if you haven't watched and wish to watch the movie, read this issue next time.

Anyway, I published this issue after so long since the movie is to avoid spoiler alert. 😃 

Ok, if you're still reading, it means you're fine.

How to Become A Millionaire Before Grandma Dies is a very touching movie and many great lessons to be learned.

The apparent lessons include being filial, loving the elders, etc.

But honestly, I think most of the audience misses the most valuable lesson about money at the end of the film – everyone can be rich if they start early.

At the film's end, the kid does not get to Grandma's house; it is given to Grandma's son instead.

However, despite Grandma being just an ordinary person, she left a small inheritance fortune to her grandson because she has been saving money in the bank under the kid's name with compounding interest.

Slowly, the money kept compounding, and after tens of years, it snowballed into a significant amount.

So when Grandma passed away, the banker called up the kid to collect all of the savings that had grown immensely because of compounding interest.

Compounding interest is often called the "eighth wonder of the world" (a phrase famously attributed to Albert Einstein, though its exact origin is uncertain) because of its extraordinary ability to grow wealth over time through a simple yet powerful concept.

Here's why it earns such high praise:

Exponential Growth

Unlike simple interest, where only the principal amount earns interest, compounding interest allows interest to earn interest over time. The growth becomes exponential rather than linear, creating a "snowball effect."

For example, if you invest $1,000 at a 10% annual interest rate:

Year 1: $1,100

Year 2: $1,210

Year 3: $1,331

The interest grows faster each year because you're earning interest on both the principal and the previous interest.

At the same time, compounding rewards time and patience. The longer you leave your money to grow, the more dramatic the results. It demonstrates the power of starting early and being consistent.

More example:

If you invest $100/month starting at age 20 versus 30, with a 7% annual return, the earlier start could double the final amount due to the extra 10 years of compounding.

In other words, you'll have to DOUBLE YOUR RETURN.

It can start with small contributions that can potentially become significant returns.

Thanks to compounding, even negligible, regular investments can become substantial over time. The financial reward opportunity makes it accessible to anyone, not just wealthy individuals.

Once set up, compounding interest works automatically—it doesn't require ongoing effort. This makes it a "wonder" of wealth building.

Frankly, the topic of "how to become rich" is a boring subject. This is easily achievable by anyone by simply starting early.

Starting Late? So Did I, and Here's Why It's Not Too Late.

If you're in your 40s and just starting to think about investing and compounding interest, I get it because I was exactly where you are.

I used to beat myself up for not starting sooner. One of the reasons is because of my arrogance. I didn't see the "point" of investing when I was young.

But let me tell you something that changed my perspective: It's always possible to start, and even small steps can create big results.

Yes, starting earlier would have been ideal, but what's done is done. The worst thing you can do now is waste more time worrying about what could have been. The truth is, you still have 20, 30, or even 40 years ahead of you to grow your investments. Time may not be unlimited, but it's still on your side.

Make Compounding Work for You — Starting Today

Here are a few things you can do:

1. Start Small, but Start Now. You don't need a huge lump sum to begin investing. Even if it's just $100 a month, consistency is key. The earlier you put money to work, the sooner compounding can do its magic. Over time, your investments will snowball.

2. Increase Your Contributions Over Time If you're in your 40s, chances are you're earning more now than in your 20s. Take advantage of that. Start with what you can afford, and as you gain more, increase your monthly investments. That's what I'm doing — treating the extra income earned as an opportunity to invest more.

In Malaysia, we have EPF, similar to the 401K in the US. While only some Malaysians would agree to put extra money inside there since you will be allowed to withdraw once you've retired, I'm adding more money there.

Because it's "force savings". For me, it's the best way to have my money put aside for compounding interest for the next 10 years.

3. Focus on Long-Term Growth Investments. In your 40s or 50s, you might have to play catch-up fast. But resist the urge to chase risky, high-return investments. Instead, focus on long-term growth assets, like index funds or diversified stocks with a proven track record of growth over decades.

If you're young and reading this, CONGRATS! However, if not, while you may not have 40 years ahead like a 20-year-old, 20 years of compounding can still make a massive difference.

For example, investing $500 monthly at a 7% annual return will grow to over $250,000 in 20 years. That's a powerful start!

Every dollar you invest is a seed for your future self. It grows slowly initially, but you'll be amazed at how far it can go over time. Don't let the regret of yesterday stop you from building a better tomorrow.

So start today. Even if it's small, even if it feels late.

Because the truth is, when you look back 10 or 20 years from now, you'll be glad you did. I know I will.