Follow AFISH formula,

A- ASN, ASB, ASW2020, Sukuk, bond, etc
F - FD
I - Insurance
S - Share
H - House / Property

how much earn is not a real concern. It is like seizing opportunity. Good time saves more, bad time recession history shows almost 8-10 yrs once, shares goes down buy more, if enough cash buy property - commercial or residential get one for passive income - rental

stinky tauhu business I not yet start.. that is why I just calculate my net profit savings per year that I set is RM25K, after minus everthing personal expenses, etc
parents rich will inheritage at least one residential and one commercial property to take care of inflation- father said so....

At the moment I planning to go for another property around RM200K just waiting for recession time. If to buy a RM400K property- I will move in there to stay, I will pay downpayment RM200K and borrow RM200K, the existing condo rent out to finance the installment of the RM200K...I like financial freedom...continue with my plan the RM2K savings per month without fail ..

if suddenly company lay me off, i just pack my bagpack and go back hometown just add a pair of chopstick eat only...passive income from rental existing condo and some cash in hand interest should be able to sustain daily expenses..Siu sa go back hometown become juru ukur tanah...wait for recession to go away in same time can do business like selling stinky tauhu, etc

Second stage - I follow my parents steps , acquire property in cash that is hard earn and savings one... then holding power long collect rental to sustain life.. if price property go up high high sell lo, keep the cash, wait for next recession time enough money to buy 2 more. I hope I can buy a property every 10 years lo... Now 33 yrs old got 1 oledi, plan to get another 1, at age 43 get another 1, at age 53 get another 1.. Think about it also happy got 1+1+1+1 = 4 properties liao at age 53

I have a target is to achieve RM2 million in 10 yrs time earlier mention  the plan + ( 1 hse + 1 commercial shop - this one dunno when can get, no hurry one) inheritage from parents to retire... [coz with 2 million either I cash out] or [existing 2 property I just rent them out and with around RM300k cash and move back hometown] stay with parents to look after them..
I calculate very simple to achieve the financial freedom

RM2 million 5% interest is RM100K
RM100K divide by 12 months - Each month around RM8K, should be sufficient for daily expense for retirement? don;t u think so?

I now like savings RM2K per month I also can live, if I have 4X more money to spend, should be able to happily retired right?

Do inflation happens 4X?

Of course in real life, I do not hold all RM2 million in cash, I put some in property, some in shares that gives good dividen like Public Bank shares, some in bond, here n there..

So u see based on my calculation got so many properties, but I need to diversify my financial management.....I do not like to call it investment because I prefer min. risk type.

Later I go back hometown, I go meet those millionaire old man sitting at coffee shop every morning to ask them more advise on financial management...

they also very kiamsap one...

they go jogging every morning, then go coffee shop order kopi o satu, sit one table together read newspaper for free, chit-chat with friends and enjoy the fan for whole morning...They tell me cheap lo just need to pay the kopi o one glass only ma, can read newspaper and enjoy the fan..home no need order newspaper and waste electricity on fan...can enjoy some more chatting with friend..then 11 smtg the go round round their business...Crazy lo...u see their Ah Mat come big car benz pick them up one..

then we one day talking how long do u use the soap (sabun). I tell them I use till very thin, then I throw away already...they laugh at me...They tell me the secret to become millionaire is u stick the thin soap onto a new soap and continue using till the end no waste....HAhahahaa......No wonder they so rich...they really practise a simple life yet when look at their lifestyle they really pay attention to details on waste management...

There are a few kinds of millionnaires. The most important is what are they giving up to earn or store those millions.

The millionaire next door (Stanley and Danko) which is what MOST of the percentage of millionaires are made of.

and

The lavish millionaires which do not have to calculate the price of a soap bar to become a millionaire. They make 300 000 a month minimum and can enjoy life based on their freedom without subjecting themselves to miserly acts.

Secondly, I can't debunk this myth enough:

Those old uncles drinking kopi-o with kaya bread reading newspapers are rarely secret millionaires. This is some romantic fantasy those frugal Malaysians teach us. It sounds nice on paper and it sounds like an inspiring story but to be true-if you have time to sit at a coffee store 6 hours a day smoking and talking with your buddies, you are probably a taxi driver or beca man.

If they ARE millionaires they are the exception not the rule.

Compounding interest will not make you millions if you do not have large capital. You will only make probably 4 million when you are in a wheelchair at an old folks home.
Compounding interest will make you a millionaire with big initial capital. This will rocket you to a millionaire by at least 30 years old or younger.

Yes that is correct: But I will add some other individuals:

Rich people with a rich lifestyle( freedom and choice)=have high earnings, high savings, high spendings(if they choose to)-the best

Rich people with poor lifestyle=have high OR low earnings, high savings, low spendings

Rich people with rich lifestyle ( but in deficit) =high earnings, low OR deficit savings, high spendings- like footballers/moviestars that are bankrupt

Poor people with rich lifestyle (deficit) = have high OR low earnings, low OR deficit savings, high spendings

Poor people with poor lifestyle-have low earnings, low savings, low spendings

There you go. Life is not about money alone-you must see what the money makes for the individual.

So yes,
There are millionaires who buy secondhand clothes, second hand cars and eat frugal everyday.
There are millionaires who buy supercars who are up their nose in debt and are soon to be bankrupt.
There are millionaires who have supercars OR secondhand cars if they choose to and after all that still have 10 mill in the bank.

Which millionaire do you want to be?

In my years of experience and talking with those old uncles at coffee stores. Sure they do know how to hustle and make lots of dough, but they rarely drive Merc and BMWs. This is just a myth of those people who preach frugal living giving extreme examples to justify their position which is rather silly.

It is true however young people these days spend carelessly without giving a second thought.

Of course, the best is being able to drink as many chattime drinks as you want while owning a Merc but that is apparently out of the question in this forum so I will refrain from sharing that lifestyle.

But some uncles in small towns really don't have anything to do and can afford to sit 6 hours at kopitiam... Their business is run by workers, and they probably have lots of land. Read in newspaper article some small town where ppl buy properties in CASH. And we're talking about 500k to
1m properties.... 

I humbly disagree though on the lavish millionaires. If there is no discipline and personal finance, i'm pretty sure they will end up overspending and will sooner or later end up a non-millionaire. The world is too good at encouraging one to spend lavishly. Few m on diamond rings, few m on sports car, few m on a yacht... And it's gone. Unless you're talking about super billionaires, no matter how they spend also cannot finish their money.

Unfortunately i think most of us normal joes will not be in the super millionaire category, (that's why we're here!), so i believe the stankey danko type of millionaire is what most of us can aim for... Has anyone ever tried to do a survey on malaysian millionaires like stanley danko? Would be interesting to see if they buy new cars, drink starbucks or buy rolexes.

And just a curious question, how do you guys budget effectively? I have been trying to do that but it's extremely hard to keep track of expenses... Write down somewhere each time money is spent? Review daily?

U have been frank here so I wouldn't refrain being frank with you.

This thread is called "Personal financial management", not "How to make it big and get rich".

Anyone with a sense of logic would tell u that people who hang around here needs help to manage their finances better, esp thru controlling their expenses.

Your "I-made-it-big-and-I-do-not-see-merit-in-living-frugal" attitude is very unwelcome here

The kopitiam scenario initially came up because a member stated how people saving on soap at kopitiams were millionaires. This is not the best[ way in my honest opinion to gain your wealth.

If sitting at kopitiam after landing huge business deals is their choice then all props to them. They have achieved the freedom of financial choice which is true wealth.

Yes I am talking about high net worth individuals
But not all of them-yes I can't say this enough from my last post. If you are a billionniare, multi millionaire, millionnaire, or have 25 cents in your pocket and you overspend-you WILL be in debt and later on bankrupt. That is not the point, the point is if you have high cash flow-you can increase your spendings BUT not to the point that it overextends your cashflow. If you do wish to do that then you need to increase your cashflow futher. But your spendings must always be lesser.

Case in point,
If you want to own an EX5-you must try to increase your earnings from 1000 to 5000 a month for example.
If you decide later you want an Aprilla-you must try to increase your cashflow from 5000 to 50 000 for example.

Under the stanley and danko millionnaire you CANNOT:

Buy rolex
Go to starbucks
Eat sushi
Buy first hand cars
Buy first hand clothes
Buy gifts
Eat at posh restaurants
Go to first class trips

You must be a slave to your budget.

On the budget topic, for me it was veryyyy hard.

I started around age 14 because my mom at that time told me to keep a notepad.
In this notepad I had to write all my incoming and outgoing expenses down to the cent.

Even if it's a piece of chewing gum I had to write down. So from my teens I already wrote my balance sheet/income statement even though I didn't have a job/ my allowance was put under "income".

So yeah it's hard but it usually takes 3 to 4 weeks for a practice to become a habit based on a science study I once read which has proved true for me. So do this for 3 weeks and it will as natural as walking to you after that.

The kopitiam scenario initially came up because a member stated how people saving on soap at kopitiams were millionaires. This is not the best[ way in my honest opinion to gain your wealth.

If sitting at kopitiam after landing huge business deals is their choice then all props to them. They have achieved the freedom of financial choice which is true wealth.

Yes I am talking about high net worth individuals
But not all of them-yes I can't say this enough from my last post. If you are a billionniare, multi millionaire, millionnaire, or have 25 cents in your pocket and you overspend-you WILL be in debt and later on bankrupt. That is not the point, the point is if you have high cash flow-you can increase your spendings BUT not to the point that it overextends your cashflow. If you do wish to do that then you need to increase your cashflow futher. But your spendings must always be lesser.

Case in point,
If you want to own an EX5-you must try to increase your earnings from 1000 to 5000 a month for example.
If you decide later you want an Aprilla-you must try to increase your cashflow from 5000 to 50 000 for example.

Under the stanley and danko millionnaire you CANNOT:

Buy rolex
Go to starbucks
Eat sushi
Buy first hand cars
Buy first hand clothes
Buy gifts
Eat at posh restaurants
Go to first class trips

You must be a slave to your budget.

On the budget topic, for me it was veryyyy hard.

I started around age 14 because my mom at that time told me to keep a notepad.
In this notepad I had to write all my incoming and outgoing expenses down to the cent.

Even if it's a piece of chewing gum I had to write down. So from my teens I already wrote my balance sheet/income statement even though I didn't have a job/ my allowance was put under "income".

So yeah it's hard but it usually takes 3 to 4 weeks for a practice to become a habit based on a science study I once read which has proved true for me. So do this for 3 weeks and it will as natural as walking to you after that.

hi avatar123,

I did my own calculation but not using XIRR and came to a figure out about 4.06% effective interest per year. In my opinion, this is very good and low cost of loan, even lower than housing loan which I think is lowest at this time (4.4%?)

I think this is your company benefit, something like a financial assistance plan - I know because one of my previous companies also offered same benefit 

While it's a good deal, you need to find out these:

1. What happens if you leave the company BEFORE 3 years is up? (or if company let you go, hopefully NOT!) Repay balance one lump sum? What if you do not have that amount to repay at that time?
2. Is this benefit taxable? i.e. reported in EA form? If yes, then you need to factor in that 'cost' too.

and like others have said, you need to make sure you have the discipline to handle the extra cash. Don't spend it, but instead invest it, even in something low risk like bond so that you can hopefully get better than 4.06% returns pa until the end of the 3 years.

P/s : I'm new in this section of the forum, but have been reading/learning a lot about personal finance. Even remember reading an article in personal money by one of the forummers here 

In my years of experience and talking with those old uncles at coffee stores. Sure they do know how to hustle and make lots of dough, but they rarely drive Merc and BMWs. This is just a myth of those people who preach frugal living giving extreme examples to justify their position which is rather silly.

It is true however young people these days spend carelessly without giving a second thought.

Of course, the best is being able to drink as many chattime drinks as you want while owning a Merc but that is apparently out of the question in this forum so I will refrain from sharing that lifestyle.

You know why those old men will not own a merc? Because they know that a car is not an asset but a liability.

I have a medium priced car <100K, yet i rather spend my money on properties/investment that generate monthly returns.

Lol if I liquidize all my investments, can buy more than a few luxury cars.... but I choose not to do so. It is my choice to make right?

Not everyone will spend money if they have it, it is usually those who have easy come easy go attitude, who have not sweat blood and tears on their hard earned money.

I would say let those who live a frugal lifestyle has it's own merits, so no need to keep advocating on splashing the/your wealth on 'things'.

The kopitiam scenario initially came up because a member stated how people saving on soap at kopitiams were millionaires. This is not the best[ way in my honest opinion to gain your wealth.

If sitting at kopitiam after landing huge business deals is their choice then all props to them. They have achieved the freedom of financial choice which is true wealth.

You must not have seen real millionaires yet right?

I know a owner of a big listed company (which is still listed now), he is worth billions of RM (yes billions, not million), yet he goes to the wet market, live a simple frugal life, enjoy kopitiam meals, washes his own cars (a medium priced sedan), goes around in shorts and t-shirt. He is very humble and well respected.

On day he arrive at one of his factories, alone, with simple attire, in his own car and want to go into the factory. And the security guard refuses to let him in, even after he told the security several times he is the owner, but the security guard did not believe him from his outlook. Then he told the security guard he wants to see the GM, the security ask him to wait and confirm with the GM. He sat on the bench like every other worker and wait for his turn to be called. Once the GM heard his name, the GM ran down from the office to the security guard post where he was quickly ushered into the office and tell off the security that he should recognize the chairman of the board. Instead of getting a scolding, the chairman gave the security a hefty pay raise for not letting stranger into the plant and upholding company rules. 

I think this will happen in 1 out of 1K billionaires. I personally know many of them will enjoy fine dining and drink red wine, although occasionally you will see them having their meals at hawker food. Anyway, there are many type of rich. Some are rich, and some are wealthy. Rich of wealthy - which are you? categorized it quite accurately. Majority of the "kopitiam" millionaires are financially free are from middle class society and majority of them really fugal or some times over stingy. While the really rich and wealthy category, I doubt they will sit in kopitiam whole day read newspaper, they might just drop by Starbucks nearby their office to pack a cup of latte - provided coffee is their thing. These kind of people will be busy attending meetings and seminars looking way to increase their wealth. And trust me, they don't even care if they lose one soap. So, the soap story only applies to the middle-class rich who aim to be financial free. I think @BeachKid just trying to tell us that "kopitiam" millionaires are frugal and stingy to the extend sacrificing some basic lifestyle or need, while the really wealthy one will not care about one soap. Nowadays, people are using body gel and shampoo - so less wastage
And I think in one article in The Star mentioned that many millionaires don't feel rich - that is because they are really not rich. Can you retire with 1 Million? With 1M, it only takes you 500 months to finish, if the expenses is at RM2K. So, do you think at RM2K, you can spend luxuriously? The answer is no - that is why many millionaires don't feel rich and have to be really frugal.

With 1M, it only takes you 500 months to finish, if the expenses is at RM2K. So, do you think at RM2K, you can spend luxuriously? The answer is no - that is why many millionaires don't feel rich and have to be really frugal.

17. Average people focus on saving. Rich people focus on earning.Wouldn't that suggest you should not focus on saving that small piece of soap?

I think here the millionaire trying to share is using the small piece of soap no matter how small it is , add to the big piece of soap you got a bigger chunk of soap to use. Bigger piece of soap bigger the earning right?

actually I admired 1 of the millionaire is he used to clean even the toilet. He tell me he is given a toothbrush to clean it. He did his very best to clean the toilet to become shinny. His boss enter the toilet, saw he did very well and later they become partnership. Small details like cleaning the toilet till shinny shinny what else can stop him from managing the team? he is paying attention to small details that eventually matter much in big decision making.

So if an individual can drink kopitiam in the morning. Then he decides to go for a frappe at starbucks in the afternoon.

After 20 years of doing this, he still has more savings than a person drinking kopitiam exclusively AND the person drinking frappes exclusively.

Wouldn't this be the best reality?

Difference between Average people and Rich people :

1. Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

2. Average people think selfishness is a vice. Rich people think selfishness is a virtue.

3. Average people have a lottery mentality. Rich people have an action mentality.

4. Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.

5. Average people long for the good old days. Rich people dream of the future.

6. Average people see money through the eyes of emotion. Rich people think about money logically.

7. Average people earn money doing things they don't love. Rich people follow their passion.

8. Average people set low expectations so they're never disappointed. Rich people are up for the challenge.

9. Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

10. Average people believe you need money to make money. Rich people use other people's money.

11. Average people believe the markets are driven by logic and strategy. Rich people know they're driven by emotion and greed.

12. Average people live beyond their means. Rich people live below theirs.

13. Average people teach their children how to survive. Rich people teach their kids to get rich.

14. Average people let money stress them out. Rich people find peace of mind in wealth.

15. Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

16. Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

17. Average people focus on saving. Rich people focus on earning.

18. Average people play it safe with money. Rich people know when to take risks.

19. Average people love to be comfortable. Rich people find comfort in uncertainty.

20. Average people never make the connection between money and health. Rich people know money can save your life.

21. Average people believe they must choose between a great family and being rich. Rich people know you can have it all.

Source > http://www.businessinsider.com/how-rich-pe...he-poor-2012-8#

Yes you are right RM 1 million nowadays is noting much to shout about. If you have at least 1-2 properties and debt free, you are already a millionaire. In Malaysia generally accepted term to 'feel' rich net worth is at least 1 million USD figuratively speaking.

You are also right on the some of the millionaires spend and some don't. Some choose to save and some choose to spend. There is nothing wrong with that. Life is all about the choices we make.

It is just that you should not impose YOUR choices on others who CHOOSE to manage their finances differently. Hence either to scrimp and save and to spend lavishly is within their own right. 

If you think you have to spend lavishly when you are rich, then go ahead, but never look down on people who are savers. Each has it own ways of enjoying their wealth. Some enjoy by just seeing their wealth goes up.. instead of spending it... some enjoy spending it and accumulate 'things'. 

"Do you know the only thing that gives me pleasure? It's to see my dividends coming in." - John D. Rockefeller, the first American to amass 1 billion dollars. 

So long list.   

All written by people like Robert Kiyosaki in order to make more money off people like you through their motivational books.

Unfortunately, it is all motivational mumbo jumbo without any practical ways to earn more money or even save money.

Let me simplify for you and I give you a well known wisdom minus all mumbo jumbo: -

NEVER SPEND MORE THAN YOU EARN.

or EARN MORE THAN YOU SPEND.

That's it.

Want to live a billionaire's lifestyle? Get a billionaire's income.

You are currently earning a fresh grad salary of RM2.5K gross? Well, make sure your expenditure is RM1.6K and save the rest of your net income.

Simple as.