Hi Guys, I would like to increase my financial potential. I am a greenhorn at this though, so go easy on me.

Just turned 24,Currently Australian student into my final semester-Start working probably June this year. Working part time now at Subway. I will break down my income in two countries: Australia and Malaysia.

Australia:

Income per month: 1400 Aus
Allowance per month: 1700 Aus-from parents
Total per month: 3100 Aus

Expenses breakdown(monthly):
Rent-500
Phone-30
Internet-80
Food-750
Transport-free(bike) or friend's car
Church-480 tithes
Reserve: 500 per month(bank only allows this amount maximum) for savings which has interest of 7% p.a.
Extra: Any extra which amounts to probably 600 to 700 will go into my other savings which pays 5.8% p.a. The reason I can go over 500 is because the interest is lower so there is no maximum monthly deposit.
FD: I really need advice on this. The saver I am using now pays 7% p.a. which is more than the 5.7 p.a. for term deposits(which is FD here). However for term deposits they state that is it 5.7% p.a. for two months, interest paid on maturity. Does this mean I will accumulate more with it since its two months?

Total savings so far for both saving accounts: 3552.
Been saving regularly for 6 months(500 a month), the 52 dollars is interest paid from the 6 months. The rest of the money I have taken out to spend on a Hong Kong trip, drumset, and few concert tickets which I have been looking forward to after my hard earned work. Again, correct me if I am spending too much.

Malaysia:
FD: 10200
Savings: 50
Amanah Saham-1000
2nd Amanah Saham-5000
Investings/Shares: 6000

All accounts have not been touched since 3 years ago so I am not sure about the total plus interest.

Spendings in Malaysia: Zero-no commitments or loans,etc.

1) What do you think about my financial position at this age of 24? Am I below or above the average? Reason being I think I am a bit too low as I see all the people posting here having like 100 k at 25. But among my friends I am pretty well off with most of them only having 1000 dollars in savings at 24. Maybe I am mixing with the wrong crowd lol.

2)What recommendations would you advice for a higher earning potential? I am open to any ideas as I know most of my money is just sitting there doing nothing.

Thanks guys!

Just quickly,

How much should a 24 year old have in his/her savings on average that reflects good financial management so far?

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.

A question for you all. I have read the last 3 pages with interest on how to cut down expenses to enjoy a higher saved income.

Of course, if I had a higher income, I would have to cut down less expenses. Capish?

So the question is, do you think it is possible for an individual to drive a porsche, drink lattes, go to 3 michelin star restaurants and first class travel while having saved more than you ( 200 000 in your 30s)?

This is not a direct attack. Just a food for thought.

Now if your answer is yes. The following would be then, why aren't you seeking to practice that lifestyle.

If you answer is no. Then you are wrong because there are people living that way. In short, they have more savings than you, but have lived a richer lifestyle than you.

I am not saying eating oatmeal everyday is bad. But a nice brunch consisting of potato cakes with freshly poached eggs cooked by a professional chef which is why we pay services for his years of perfecting the art of cooking is a huge level up. Is cooking at home wrong? Definitely not. But why not get the best of both worlds?

See here is the dilemma.

A person who saves a lot is a slave to his budget. He forgoes the experience of life for his purse. Let's not argue about how you can be a miser while still living rich. Sorry it does not work that way. you can't have your cake and eat it too.

A person who spends a lot is a slave to his lifestyle. Therefore he is always broke and living on a paycheck basis.

There are however a few who can enjoy the savings of the first and the lifestyle of the second. That is who you should aim to be.

I am nowhere near that , but am slowly but surely reaching. My mentor is a real life individual who is 27 years old. Healthy as a horse. Eats 6 meals a day. Enjoys premium cut beef with the highest of wines for dinner. Doesn't have to work until the sun sets. Travels 3 times a year minimum for pleasure, not business.

Also, he has a net worth of at least 15 million. Not including his tangible assets( real estate, etc).
Would you say he has had successful personal financial management? Yes.
Would you say he has a successful lifestyle? Yes.
Would you say he has the best of BOTH worlds-he can eat oatmeal for breakfast and dinner OR japanese cuisine if he wants to? Yes.

There is another way my friends. Saving your hard earned cash is not the only way to successful financial management.

This post has been edited by Beachkid: Jan 12 2013, 10:13 AM

Yes of course. But most people here are only focusing on the controlling cost are they not?

Exactly. You cut costs to get more cash. It is better to get more cash so you can joyfully increase your cost( of course within a limit).

Ask yourself this. If you could earn 1000 dollars a day, how would your life change?

My housemate right now was a blue collar worker. He worked in furniture and design, 10 to 16 hours a day. Now he runs a consulting firm for? You guessed it, an architecture firm paying $1000 a day for his services. Let's just say he now has plans to retire at 33.

This post has been edited by Beachkid: Jan 12 2013, 10:37 AM

Yes I have asked since he is my mentor. Would I go for tutelage under a lottery winner? Dear sir, tell me how to win the lottery? Definitely not.

Was it a lottery? No.
Did he start a business at 15? Not really, more like 25.
Did he buy his ferrari prior to his wealth. Nope. Actually he had only $5000 in his account up to 25.
Does he really have 15 million in tangible or intangible wealth is what you are asking. Answer: 15 million in cash-not including shares, real estate,cars, his collection of paintings,etc.

Yes of course I definitely agree with your second point. I know doctors who earn 150 000 a year and buy a porsche worth 850 000. Ridiculous! They will definitely see their downfall in years to come.

But no worries, my mentor and a lot of others like him who have found wealth have supercars which only took less than 7 percent of their net worth.

You have to read my post again.

The first person is the slave to his budget. He forgos 800 dollar headphones to have a bigger bank account.

The second person is a slave to his lifestyle. He forgoes a big bank account for 800 dollar earphones.

The person I am advocating is the person with the big bank account AND the 800 dollar earphones.

It is not a mirage, they do exist. Yes , only in small numbers due to the lack of wealth creation out there, but they exist nonetheless.

p.s.: Yes of course there are people who are in prison. Are all rich people in prison? Definitely not. Not the crowd I know of that's for sure.

This post has been edited by Beachkid: Jan 12 2013, 11:07 AM

I always get this whenever a person sees another rich person. Must be a rich kid.

Nah, he wasn't a descendant of bill gates. He had 5000 in savings up until he was 25. You have heard of the saying-rags to riches right?

Yes for those with no silver spoon-like me, my housemate, my mentor-all born well not in poverty, but definitely not in luxury , we have to make do with our means. You do not need a lot of capital to start a business. This is a myth.

Luck has nothing to do with it. Luck is preparation meeting opportunity.

Everyone wants to get out of the rat race. I am not saying that is not a noble goal. But there are better ways of doing it. All roads lead to rome.

Tsk tsk, I posted the exact same thing in another forum and a few members asked me how to attain that goal. You can see a whole different response here.

Also, I came here to share and get advice. Noone has asked any advice yet so why post? I have stimulated the advice through my questions on lifestyle and wealth. I am not successful as of yet, far from it as I have said. However the most important is the goal. If I can achieve that reality which people are currently living, why dispose of that for any other lifestyle?

Well successful in terms of my goal, no not yet. But if you mean objectively successful then yes I would consider myself so.

You can see it as bragging which is how most envious people see it. Or you can see it as an offer to another life. When a person comes up to you and says, how would you like to join me and make 10 000 a month? You can say, stop bragging or you can say-tell me and I will see if it is possible. Two different responses indicate the individual. It is obvious which one you are.

Yes of course some do not throw their wealth around, some do. Again, it's all in the words. I equate "throwing their wealth around" with "enjoying the fruits of their labour". If they worked hard and smart for it they can enjoy it as much as they want without shame.

I respect them either way for whichever lifestyle they choose to live and how they choose to spend their wealth regardless. Just because someone is successful and chooses to drive a sedan you choose to cast him aside and only follow a success who drives a mini car? Really? It doesn't matter what they do with their results, that is up to you when you have acquired them. What matters is how they got there.

You can choose to be warren buffet who lives frugally.

Or richard branson who buys an island for himself.

They both have wealth well above their means and I respect them both for that. What they do with it is unimportant.

This post has been edited by Beachkid: Jan 12 2013, 11:40 AM

You missed the point completely. It was not about their personalities at all.

The post wasn't directed only at you so that's good you are comfortable with your wealth.

The 10 000 was an example because I wanted to show if someone was earning less than that how an offer of 10 000 could be seen in perspective as bragging which you did or a proposal to a different way to wealth. Obviously if you are earning much more than a different number would be put in the equation.

Yes thanks for the history lesson. Since then I have graduated and have started out independently so yes I do know the real world as you call it.

This post has been edited by Beachkid: Jan 12 2013, 11:59 AM

This is getting way off tangent. I agree with you in everything you have said about their character and how important it is. What I meant was- the reason of you bringing personality up was from a missed point. Think again, how did personality come into this conversation. I told you that what a man does with his wealth as long as he has earned it morally and legally is up to him-we can learn from him regardless.

I then stated two individuals and how chose to spend their wealth and you then said branson was brash which is true but a missed point.

Yeah like my successful mates who had to pay their way through college with a ptpn loan but have achieved great wealth. Yes, there are great wealth builders who have had silver spoons and those with none.

My question is, do you believe a poor person can become wealthy? If your answer is yes then why are we arguing?

Yes there is much more to life than money of course. But we are in the personal financial management so let's stick with the numbers.

Yes we must end it but not for the reason you state. All wealth comes from philosophy and right now that's what we are debating, so it's not spam.

So basically you disagree on my view that wealth should be spent which was not my view at all.

Here is my stance, wealth should be a free choice of whether it should be enjoyed or kept or given away if the individual has achieved it through his own means. That's it. Do you agree with that at least?

This post has been edited by Beachkid: Jan 12 2013, 12:21 PM

Yes thanks for proving my point. It is a freedom of choice.

Exactly.

So a guy is born with a silver spoon. Does this make any of his accomplishments less intact?

That's is truly unjustified.

So we can say to all the rich babies, whatever you achieve in life whether it be building your own empire or winning your primary school race it doesn't matter-you were born rich so your achievements aren't worth as much.

Finally I have people curious about his job, and I commend you for that. That is how he got his wealth as well, he was a student of wealth as we all are-always learning.

Nah it's not commodities-commodities is a relatively "safe" industry so to speak but the returns need years to show a profitable balance. Also, you cannot make a lot of money FAST-by investing with low capital. Therefore, unless you are already rich-investing is usually second choice.

He has his own company-as do many rich people who made their wealth young without forgoing their lifestyle.. Again, I can't stress this enough. Being able to milk a money cow while living the lifestyle of your CHOICE-which gark missed this point completely-is the greatest happiness in life.

Basically he runs a few ventures, but his primary milk cow is a service he created which tells the prime franchise locations in any state of America and their future value as well. In laymans terms, if you want to buy a franchise and have a hard time finding the best location-this service will help you.

If you want to be financially independent slowly here are the steps:
i)Buy a secondhand car since it is going to depreciate anyway.
ii)Buy a cheap house and then sell it off when the property goes up-then buy an even cheaper house and save the excess for your bank.
iii)Cut expenses on all your meals, do not eat out if possible and never even THINK about that yummy looking muffin staring at you . No starbucks, no posh restaurants, no sushi, no dessert, no chops, nothing-even if you choose to. Not even chu char since a good chu char meal can cost up to 50 bucks one sitting. Store your cabinet with oatmeal and dried fruit and you had better enjoy it-regardless if you want to or not.
iv)No iphones or macs
v)Travel cheap and backpack or do not travel at all
vi)Do not waste your money on clubbing
vii)Put at least 50 percent of your earnings in fixed deposits or ASM
viii)Do not spoil your girlfriend or wives with lavish gifts
viii)Everything has to be a necessity. You will also have to give up freedom of choice.

Follow these steps and you will become a millionnaire by probably in your late 40s-depending on when you start. If you have a slightly higher income and have saved more you will probably have maybe 5 million by then. Now that you are 45, you can now retire and spend the rest of your life the same way using the money you saved until it runs out or you die.

If you want to become financially independent fast-NOT EASY,this is an important distinction. All those late night infomercials selling get fast quick is ACTUALLY get fast easy. There is no easy way. My mentor always told me-I don't need easy, I need possible-quote from Bethany Hamilton.

i)Start a active capital that reaches scale and magnitude. This is key. A corner Ramly Burger store won't do nor will a curry puff outlet.
ii)Start a passive capital that has high capital. This is also key. But for this to happen (i) must happen successfully first or you can be silver spooned blah blah.

And then follow the previous steps stated before if you CHOOSE to. Or you can buy all the macs,iphones and muffins you want-it will be your choice. A critic once told my mentor-hey you are so stupid buying a porsche, that thing will depreciate fast. He just smiled and said, " Yes I know and I can handle the depreciation." Choice and Freedom. The two most beautiful things ever.

So buy a t shirt from batu feringgi costing 7 bucks or buy a ralph lauren in 15 different colors, you wouldn't worry when you have a healthy enough stream to choose.

This is the income earning side don't forget. Of course no matter how much you earn whether it be 1000 or 100 000 you must never live above your means-this is common sense and you must always have a reserve in case things go sour-this too is common sense. What is not so common is how to earn more cash.

This post has been edited by Beachkid: Jan 12 2013, 06:17 PM

You too will be rich someday if you continue having this attitude.

Yes, out of sight out of mind. I actually have told people before on some trips I have made about people below 30 making a fortune and some people have even outright called me a liar to my face.

It's sad that for them, this reality does not exist. It is like telling someone you know of a person who can fly. They cannot comprehend how a 20 something year old can be a millionaire without being:

i-born in a rich family
ii-winning a lottery
iii-selling drugs illegally and exempting tax
iv-or any other silly excuse

However, when you find that "group" and you mix with them your reality starts to change. This is my reality, and nothing people say or do can change it. That is why I am at peace now when people call me a liar or a spoiled child. Doesn't change anything.

Yeah they probably started young. i actually regret because when I was a teen and young adult I was partying and just having fun. Sure I studied and worked hard on my part time jobs but I definitely was not focused on financial freedom.

http://www.retireat21.com/interview/interv...ting-super-star

Take a look at this fella.

Earning 300 000 a month. His age? Nineteen

Do you think he has to eat oatmeals everyday to get to this stage? No? I guessed so.

5 million is just a rough figure. You can earn 5 million by say 50 years old or 55 if you have a higher income since this dictates that you have more capacity to save. So whatever you are saving right now that gives you the 2 million, the other individual is probably saving twice as much-since he has the capacity to-and therefore can reach 4 or 5 at the same age.

Secondly, it is true what you say, however there is a loophole

This was misunderstood by another member, i forgot his/her name,,so I will repeat once again.

A earns 1 k a month, and he saves 600-he is wealthy. What does this life dictate? That you are a slave to your money. Remember- you cannot do both. Either you are sacrificing your lifestyle or you are sacrificing your purse.

So I would rewrite your sentences this way:

A earns Rm 1000 a month, he saves RM 600- he is rich in wealth, but poor in lifestyle.
B earns Rm 10 000 a month, he spends Rm 12 000-he is poor in wealth, but rich in lifestyle.

There is another person-this person not many people know of.

C earns Rm 100 000 a month-he spends Rm 50 000 and saves Rm 50 000-he is rich in wealth and rich in lifestyle.

Okay before you go on a rage, yes he can choose to save Rm 80 000 or Rm 90 000, since Rm 50 000 is a rather obscene. But the emphasis is on ,, which I have been repeating for the last few posts ..the freedom of choice.

C can CHOOSE to spend Rm 50 000 or maybe spend like A , only Rm 600. Regardless, he has saved more EITHER way he spends.

Why is that? Because his earning capacity has increased.

This is the problem with always focusing on the expense side of the equation-your control is limited.

A person to have successful financial management should focus on the revenue and expense side to have a healthy wallet and lifestyle.

Well here is where we differ. Yes I believe everyone can push their limits and make a fortune. Of course they can.

Your first point:
Many people earn the average-yes, of course they do. That is why only 0.1 percent of the population are milionaires (USD).

Second point:
Yes of course you must spend within your means. Please read my post on page 92. No matter how high or low your income you should never overspend-this is common sense.

However, you are moot on one point. Your lifestyle and spending has to accomodate your income until you find the opportunity so that your income accomodates your lifestyle.

Third point:
This one is a fallacy. Are we living in a socialistic state where everyone earns the same in whatever he does? Of course not.

No numbers are not made out of nowhere-those numbers are real numbers from real people with real jobs.

If you use your example, then of course again I have said,,common sense dictates the person who spends less than he earns is better off.

Finally:
Yes as you increase your income, your spending can increase as long as it is within your means-or you can have the same level of spending as before and save even more-your choice. And no, you cannot choose your income, but you can choose your earnings-two different things.

But all this is redundant since we have two different beliefs from the very start of the post.

I agree with you that not many people earn 100 000 a month or more. So a person can choose to be like the not many or he can just choose to be average-if so, this is not wrong. You can still follow the points I listed to have good personal finances the slow way on page 92.

This post has been edited by Beachkid: Jan 14 2013, 11:07 AM