heheh - as a benchmark lar bro.
ie. the minimum
MIND U, 20% of cash income, add EPF to it, yar.

The full formula from the Millionaire Next Door (doesn't include EPF coz US book mar):
Net worth should be >= Total income * Age * 10%

His other book "Stop Acting Rich: ...And Start Living Like A Real Millionaire", he uses the term Balance Sheet Affluent and has more detailed calculation, which i remember something to the effect of "20% of total lifetime's income" is the minimum to be part of that circle.

Good books - simple concepts which TV/lifeSTYLE floggers seem to go against (ie. they show millionaires spending like no tomorrow and stuff/orgy filled life).

BTW, how many % of youngsters these days U personally know that saves 20% OR have that kinda net worth, instead of spending all or more of income and/or have a negative/lower than 20% net worth?
Heck, how many 30 or 40 year olds?
U'd be surprised - lots of "big hat, no cattle" folks around.

This post has been edited by wongmunkeong: Oct 7 2012, 06:44 PM

ok...simple yardsticks are always more welcomed than complicated ratios and numbers

and to define "success" with flash cars, posh houses and expensive vacations is...wrong. That is poison of material capitalism. Comfort is the key word, not wasteful luxury.

Just my 1 rupiah worth of opinion

Added: Only myself
a few off my friends only recently started to save (coming to 30 years old unker status already)

This post has been edited by Pink Spider: Oct 7 2012, 06:50 PM

Heheh - not wrong lar bro.
Different realities/perception - some folks prefer collecting -ve assets, some folks prefer +ve assets & others prefer memories (changgih overseas or if possible, over planetary travels) mar.
If everyone was frugal - die man the economy (and our investments!). Thus, shh!

BTW, U shd see some folks' (especially women on 1st date) reaction to my old Wira It helps as a great "filter" against leeches & value-destroying flers.

BTW2 - welcome to unker status. Those who goes into this status knowingly, usually ends up financiall free
Reason? Simple - unker focuses on pragmatic stuff, not flash in the pan stuff. Rock steady vs Flashy & shaky

This post has been edited by wongmunkeong: Oct 7 2012, 06:57 PM

Wong Seafood is sifu indeed

U made me change my mind about upgrading my car...old cars do have a very good "function"

Yes, stick to your old car if it serves you well...

Car depreciate once you drove it off the sales room !

FYI, the world's greatest investor W.B continues to drive an old car and live in the same suburban house he bought in 1958.

and u won't feel "sakit hati" when ppl scratches your car, u dun feel "sayang" to park it under lamp post infested with crows, and it serves u, rather than u "serve" it

Yes, but sometimes i was thinking what is the point of saving millions of dollar and not enjoy the fruits of your hardwork.
Like what Wong Sifu taught us, keep some money in the "feel good" funds, pamper yourself occasionally lah, what is the point of living if we are only chasing numbers and live frugally.

Once you have met you saving targets/investment goals, why not reward yourself and your family once in a while.
Life is more than just numbers you know.

paste this very good financial mgmt newpaper cutting.





Attached thumbnail(s)

Any online version? A bit susah to read >_<

Here. I put it in my blog
Can you retire with 1 Million?

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Added on October 8, 2012, 7:15 pmBecause car is not his interest. He has a private jet, though.

This post has been edited by jasontoh: Oct 8 2012, 07:15 PM

Allow me to share some of my opinions.

I use the allocation of 70 in stocks and 30 in bonds for my portfolio. I used the thumb rule of 100-age=allocation in stocks.

Furthermore, I made sure I have 6 months in cash/liquidity to support me in case of emergencies. I have disability, health, jobless, liability and legal costs insurance only. I suggest everyone to consider what risks you would like to transfer and buy the appropriate insurance. Be a smart consumer and do not listen blindly to the agents. They are not a financial planner and work only to sell as many policies to you as possible.

I set a goal to increase my net worth by 2% monthly or 27% annually and so far it has been possible. I monitor my net worth using a simple asset/liability spreadsheet monthly. My assets such as my car are amortized linearly. I put most of my salary roughly 35-40% monthly into investments such as the stock market, mutual funds and bonds. With disciplined monitoring and evaluating of my portfolio quarterly, I rebalance the allocation accordingly.

One golden rule everyone should follow is to only invest in money you can afford to lose. No matter the investment, always understand the risk, and don't just get blinded by the reward.

Thanks a lot.

So a 24 year old should have approximately 20 000 min in savings. That's relatively lower than the nation average. I guess most people are in loan debt.

you already have more than 20K at 24?

I dont even have 5K that time... haha

bro, that's just an example leh

I have 15K at the age of 21. I earned a single penny depend on my selves. Families not giving me anymore single cent to spend. and I'm not staying with family, I leave my hometown at the age of 17 year old and went to big city alone //

This post has been edited by adolph: Oct 9 2012, 10:39 AM

That is very good.. Much better than me.

he owns one of the largest private jet company

nice BMW u have there

This post has been edited by cscheat: Oct 9 2012, 10:05 PM

Wong Seafood owns a private jet company?

I think fellow forumers were talking about Warren Buffet lar.
Me? Private jet company?
Car also cannot afford A8 or TT