The "one slice of soap" is an analogy on how the rest of us should do in order to get rich, or at least, financially comfortable in a practicable way.

What Yeoh clan, AK and the rest do, is probably unique to them and at their circumstances.

I highly doubt by reading their exploits you could replicate their success for yourself that easily or their secret path to riches could be so easily "read".

Otherwise Malaysia would be overrun by millionaires already, no?

It is not a very good analogy for the rest of us to follow in order to get "rich". And in fact, I never heard anyone getting rich because of that. Maybe there are some, but I never met any of them. Those I know doing very well financially, don't even really care savings like few cents. Many of them will just think how to get few zeros more to cover for the loss of the few cents. And yes, none of them will be so free to sit at kopitiam reading newspaper, just to save some few RM on newspaper and electric bill. And yes, they are not AK and Yeoh level, but they are high income earners. The point is, you won't get rich by savings every little penny. If you want to get rich, you have to earn more or find ways to make more money. The same goes to be financially free. You cannot just save, and spend time and effort saving penny. It will bring you nowhere. You would be well off spending time and money on business or investment. It is very wrong idea to alwiz instil "stinginess" just to be financially free because it won't happen. I have many examples of the "flops" that scrimp their lifestyle, but they are poor in both lifestyle and wealth. Not that I encourage spending lavishly, it's just wrong to say that skimping lifestyle will lead you to financial freedom. It will not. Only by making more money and optimizing the money only you can achieve that.

Ahh...that is the problem isn't making...the CORRECT and SAFE ways to make more money?

Unfortunately, there is no sure fire way that everybody can safely and accurately make more money to in order to achieve financial freedom.

"Making more money" is NOT guaranteed. You could easily lose money than gain money in one's quest to make more money.

The number of idiots that got scammed by Genneva alone proved it.

However, what is guaranteed way to financial freedoms that is within your control is to manage your wants and live appropriately to your income, and never spend above your income, no matter what it is.

Of course, I am not suggesting that one should not try expand one's income if able. But the sad truth is, not everyone could do so due to fate or ability in life.

My point is, making more money is secondary priority only to watching your expenditures.

Master your expenditures, curb your wants, then only figure out how to "make more money", whatever that is.

I agree with this view. Since this thread is about personal finance management, I think we can safely exclude those who are really earning super high incomes, living a high consumption lifestyle (they can afford it, no problems). Majority of people will be normal wage earners, striving to improve their personal finance status.

Obviously, there are some opinions that one should strive hard to earn more money, and therefore don't have to live the frugal life, but some people do not see the point in spending excessively in things which they feel is not needed. Meaning they actually feel happy living a frugal life, not a poor sad state of existence trying to be a millionaire by using soap shavings and reading free newspapers.

I hear all those stories about fresh grads coming out to work, earning say 2k per month and then jumping in to buy new car on 7-9 year loans, drinking starbucks,chatime, buying the latest iphone/samsung galaxy costing their 1 month salary or other expensive branded goods on credit. Those are all scary situations, and I'll admit that I was once like that too. Just looking at nicer cars, and calculating whether I can afford to own/loan it through a 5 or 7 year loan - as long as I can afford to pay the monthly installment, then there is a high probability to get it.

We are conditioned by the consumer market we live in, and some by peer pressure and some by lack of awareness. Many would have gone through the buy-new-car-on-5-year-or-more-loan mistake for example and then scratching their heads wondering why they don't have much money...

Let me try and ask a question, assuming now someone gave you RM500k and told you it's yours, free for you to do anything with it. What is the first thing you would do? Answering this will probably reveal a lot about how the person thinks in terms of personal finance management.




This post has been edited by poolcarpet: Jan 25 2013, 04:25 PM

I will SPEND ALL on div stocks since I have already car and house

That's not a prudent answer. One should diversify their holdings.

If the stock tanks for whatever reason, there goes your money.

If I start from scratch, I would put maybe 20% of that money in FD, 20% on Unit Trust and 10% as deposit money for some select properties I want to use as a rental income.

Why need to beg/pray someone give u RM500K?

Real case...

Average ppl nowadays come out with a degree also earn RM2.8K. Not sure u guys all agree or not. But my younger brother grad with a teaching degree from TTC and is a primary teacher start teaching 2012 after CNY around RM2.7-2.8K lo. He follows my steps too savings RM2K per month. Rental, expenses those roughly RM800 per month in KL.

I am below average ppl ok when I just start working.

I am Technician blue collar..after SPM, take 2yrs diploma then come out to work. Keep it simple - KIS , life sucks without direction, plan, etc.
So I listen to those old ppl sitting at kopitiam self make millionaires. Then they just give me a Golden Rule - I practise.

A - ASN, ASB, Wawasan 2020, Sukuk, bond, etc
F - FD
I - Insurance
S -Shares
H -House

If got A buy A lo, if don;t have just buy FD everymonth without fail. Shares buy during recession or bearish time, collect dividen, when bullish time sell them. From stock shares can earn enough $$ to buy House in cash.

Savings RM2K per month no matter what happens. Even sky fall or end of the world. Top up RM1k make it RM25K a year for easy calculation. Early time when I started to work really hard coz not easy to increase earning to save the RM2K per month.

I put this formula easy to see for calculation, reality I didn't use the interest just add more into the savings ..

First year - RM25K, 5% interest - RM1250
2nd year - Add RM25K , Now total u have RM50K, 5% interest - RM2500
3rd year - Add RM25K , Now total u have RM75K, 5% interest - RM3750
4th year - Add RM25K, Now total u have RM100K, 5% interest - RM5000
5th year - Add RM25K, Now total u have RM125K, 5% interest - RM6250
6th year - Add RM25K, Now total u have RM150K, 5% interest - RM7500
7th year - Add RM25K, Now total u have RM175K, 5% interest - RM8750
8th year - Add RM25K, Now total u have RM200K, 5% interest - RM10000

Total interest collected is RM45K

So in 8 yrs collected RM25K x 8 = RM200K, interest RM45K . Able to buy condo and car cash.

In reality I make it in 6 yrs as I do the AFISH theory, gain some from share market, dividens, etc

Bought my very first 2nd hand 1000+ sqft corner lot condo around RM230K in cash during recession, now worth RM500K in Penang island..Bought a car using the interest in cash too...

Now my savings cash in hand roughly nearing RM200K just waiting for recession to grab my next property in cash, or else grab more shares from stock market..

Earlier got a forumer ask me how much my net worth - around RM700K ,

I plan to retired in 10 yrs time and estimate my wealth grow to 2 million (property + cash in hand)

My savings after I acquire another property buy in cash for passive income, should roughly add another RM1K per month to my montly savings..


For fresh grad + gf can do it easier...suffer 6 yrs too...

I survey last year around Nov 2012 a condo corner lot, 1200sqft, high floor near ampang commuter station walking distance 2nd hand , partly furnish is RM300K, so I take RM300K condo to calculate ok.. New one should be around RM450K and above

Easy formula ...Let say u grad age 24yrs old. Save RM2k a month, make it easy calculation RM25K a year like me. If cannot earn that much do part time job, OT , etc to make sure u save RM2K Ok..

Your girl friend do the same ..RM2K per month RM25K per year..

I take sukuk - 100% safe as this is not investment, principle is gurantee

First year - RM50K go buy Sukuk gurantee 5% interest - RM2500
2nd year - RM50K go buy Sukuk, Now you have total RM100K, 5% interest - RM5000
3rd year - RM50K go buy Sukuk, Now you have total RM150K, 5% interest - RM7500
4th year - RM50K go buy Sukuk, Now you have total RM200K, 5% interest - RM10,000
5th year - RM50K go buy Sukuk, Now you have total RM250K, 5% interest - RM12,500
6th year - RM50K go buy Sukuk, Now you have total RM300K, 5% interest - RM15,000

Total intrest collected is RM52, 500

RM25k x 2 persons x 6 years = RM300K...Go buy property at age of 30 with the RM300K, take the interest go get married lo..RM50K more than enough ..If not enough save another year + N or else take the interest buy a car ... Cash is king ! Buy hse cash, buy car also cash !

Ask yourself and your gf this question..Do you want to be bank slave for the next 28 years? They vampire suck your bloody hard earn money...Let say u borrow RM200K, pay installment RM1K per month, 70% -RM700 is intrest and 30% - RM300 is paying principal..

I really think suffer 6 yrs and get back the 28 years of suffering is worth a lot...

This post has been edited by AAAABBBB: Jan 25 2013, 09:29 PM

Where wisely park money at the moment? RM500K that is a lot.

I do not have that much. I have RM200K only.

Wisely park more cash in hand at the moment is the best. Why? RECESSION Coooming...Cash is King

Think of the bargaining power, discount, etc

Park here n there like I do. Park in place where can cash out or liquidity without lossing any principal ok..

I park RM50K in my Mom senior citizen HL FD
I park RM50K in my Dad senior Citizan HL FD
I park RM50K in Sukuk 1 Malaysia
I park the remaining one here a bit there a bit..

Think of all those YUMMY shares drop during recession....
Think of all those YUMMY properties you can grab during recession...

If they drop 25~30% is YUMMY enough oledi..

All this required you to start doing homework now, open few portfolio and eye for them...

One in a million?

http://www.youtube.com/watch?v=v-ezVFq9QWc

The one millionaire that kiamsap a bit one talking about the soap use until thin stick to a new soap and used till finish is a she lo.

She is the one who give me the AFISH Formula.

Lately only I got meet up with her, minum at kopitiam in the morning. They not sit around after going exercise at coffee shop whole morning doing nothing.

It is call network. They usually talk or boasting about business, etc , etc.


She come out with a creative, innovative idea of increasing $$$. Doable. Now only she mention to me since u got your 1st pot of gold more than RM100K can consider doing business..


Maybe this two rule is true, when she gives me the idea.

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

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

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

She mention Penang island a lot of condo, apartment, etc. Since govt going green, approach govt with a proposal use LED to save electricity and get their support. Get a lawyer to write the proposal.

Simple idea.Setup a company hire a few electrician.

Go to condo, meet up with management proposed to them that you can change all their light bulb in the corridor, swimming pool, etc to LED type for FREE.

They just need to photostat the 6 months ago electricity bill for you. After change to electricity save LED bulb, the cost of electricity sure goes down but the management needs to pay the same amount that they pay before for the last 6 months average. Pay to TNB first and the balance to my company.

Pay electric bill until can cover the quotation of my company for changing the LED light bulb. Then how to make money I ask her?

she mention in the contract, include maintainance inccured cost of replacing a LED bulb etc can only be done by my company. She ask me think large scale. Think if govt supportive go green, come out a ruling that high rise must change to LED save electricity and u are the pioneer in the industry thus sure can become millionaire lo.

Hehe....

Who wanna join?

This post has been edited by AAAABBBB: Jan 25 2013, 10:56 PM

I respect you for your discipline and determination. Your plan is very good but it would not have catered to the crazy escalating properties in klang valley. By the time you save the rm300k, the property that was 300k would have increased to 700-800k so leverage from a flexi property bank loan is also important....

Btw, i ask the 500k question as that is a good way to gauge our thinking. For some get 500k means straightaway go buy the nice car they have been eyeing. Some maybe to travel to places they've always wanted to go.

Good to see all response so far is nothing of that sort, but rather to invest and think how to make the money work for you.

So we have a lot of potential (and already) millionaires here bravo



This post has been edited by poolcarpet: Jan 25 2013, 11:45 PM

Agreed. But govt is tackling this problem of property price raising too fast with PR1MA. http://www.pr1ma.my/index.html

PR1MA will be the first that exclusively targets this middle segment with homes ranging from RM100,000 to RM400,000 in a sustainable community

I discuss with those milionaire on this topic too..I save save save a lot also not enough money to buy property how?

They give me an example Hong Kong,

3 categories of ppl

Category 1 (30%) - Ppl already own a property. Finish paying up the loan already. CAn retired sell the property and immigrate ..since their property worth millions already.
Category 2 (60%) - Ppl who bought a property, paying up their loan. Let say they lock down the property at 700k, now worth millions already. Everyone happy coz when they finish paying up their loan they are millionaires already.
Category 3 (10%) - Ppl fresh grad, wanted to buy a property cannot afford to as price is rocket high talking about millions here. They can afford sit BMW but stay in rented hse.

Govt wanted to help category 3, hong kong land still a lot ma. Can built cheap studio, 2 bedroom type enough for category 3 ppl - husband wife and children can stay maybe around 200-300K

When category 1 & 2 heard this, they objection...Why? Coz if they do like this how can they retire? The property that worth millions will drop to few hundred thousand..They disagree and warn will re elect new govt if govt want to help category 3

during interview with category 2, they mention the category 3 youngster dream want to own a hse, not hardworking enough to strive with an objective to own a hse, they need to work harder

during interview with category 3, they say they always strike here n there coz cannot afford a property in hong kong..


They told me Malaysia is not moving into property trap like in Hong Kong where everyone craze in buying property..like skim cepat kaya..

They will always be control, GST tax, etc

Look at the hse price keep on increasing exponentially, does normal ppl working for companies salary increase exponentially too?

Like the saying if the buying stop, the killing stop too..

Same theory here, hse developer perhaps the cost of building a condo is just 200K, but they want to sell it 800K, u buy, other buy, the faster it sell out all, meaning demand is high. Profit margin also high they built more and sell higher.

But how many ppl can afford? we are not talking RM2 vs RM8 but RM200K vs RM800K the buyer maybe foreigners, expatriate, millionaire, etc. Count speculator in too ok...

they can increase to heaven figure, normal ppl cannot pay them hell bank note even for downpayment, thus getting harder and harder to sell, demand low eventually price will drop too..

worse is during recession, a lot ppl retrench by company, work 4 days a week , salary cut....This is a good time if u have some savings thus able to buy cheaper price..

That is why when I secure the condo in KL for RM300K I did not lock down or buy.. Waiting recession, let say it drop 20%, than the price going to be RM240K.. I got cash RM200K, I borrow from father RM40~50k, I pay him back in 1~2 yrs time..thus I buy in cash RM240K..

recession time, bank very hard secure financing loan, since I got cash in hand, I nego bargain for RM230-235K , if the owner desperate he sell too..

another thing that I notice in KL is election coming, a lot of uncertainties...saw a lot foreigner selling their property at cost price going back own country.. let say the foreigner buy a property at 300k from developer few years back, they are willing to let go at 300K too now...

make sense or not?

if govt don't control even the white collar category middle income ppl, household around RM2500 -7000 cannot afford property in Malaysia...

Do take note I am in Penang. Property here is the highest in Malaysia since it is an island.

This post has been edited by AAAABBBB: Jan 26 2013, 12:31 AM

nothing to brag about the kopitiam millionaire la

within 1 month i already quite understand their path to be millionaires when i hang out with my uncle during kid time my uncle who is also a typical kopitiam multi millionaire lepak kaki from penang

they are rich by being stingy, no exception.

some of them even wear torn clothes for fuk sake.

i mean what for ? that is pretty pathetic


1 of the reason they lepak kopitiam a lot as i know is they are looking for money borrowers, mostly ah long/gambler/etc those illegal businesses mostly, as their own traditional business often is taken care of.

their family businesses usually are inheritance business ...generation to generations ..like farming, manufacturing etc.


so there is no secret there, just stingy and loan money to needy and earn high interest, besides their family business income.
they are nothing special to me.


they got lot of cash but life isnt pretty interesting either

u lepak at the wrong kopitiam...more like black shop..

I think it is important to understand that money is a tool. You use it to achieve the goals you want in life. The more you consume, the more money you need. Wants are unlimited. When you have a Honda, you want a BMW, when you have a BMW you may want a Ferrari or a Lamborghini so on and so forth. The most important thing is: Does it make you happy? If material goods are the only things that people strive to achieve and acquire, I really do pity them.

Why do you need to pity anyone?

All it means is they have different outlook and objectives in life. What is more important to understand is one man's food is another man's poison - your personal understanding of money is not relevant. A Ferrari may not make you happy, but it will for someone else.

In fact, they might pity you for being under-achieving and un-ambitious. So how can one decide who's wrong and who's right?

If I am a millionaire, I don't see the point bragging or living a flash lifestyle.

Many real millionaires tend to stay low key and humble.

The ones that are living big and flashy, I tend suspect whether they are really solvent in the first place.

Did I hit a nerve? LOL

keyword : not interesting.

money is just number until you spend it.
There is nothing wrong for saving up.

There is nothing wrong if one chooses to take a financial leap too.

A bit religous but nice to share, Buddha once said the most expensive wealth is HEALTH bcoz money cant buy. But if i have another options to live happily i'll choose live in totally financial freedom without debts. Enjoying life is always in my wish, but need longer time to succeed only....