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.

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#

Anyway, the point that I'm trying to make is there are different type of rich, not to enforce either to be a savvy saver or a lavish spender. I personally feel that it is always good to live below your means and I know majority of us will only get rich by becoming a savvy saver as most of us don't have the "network" and background. If you will asked me, even if I can retire by having my money generating more than my current annual income and debt free, I will still say that I'm just a financial free guy, not rich. I doubt you guys can always see Mr Yeoh, AK go kopitiam read newspaper spending their effort thinking how to save 1 slice of thin soap.

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.

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

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

True, lots of people want easy money. That's all the people lining up to play the lotto and all the people falling for scams.

Fast money does not equal easy money. Fast money (being relative 3 to 5 years) can be made. But it's not easy.

I agree with you on everything you have said. The only place where we differ is I would put expanding my income my priority and then watching my expenditures a VERY close second. However the marriage of these two habits are the best.

Hi lowyat,

I'll be graduating soon and I have saved RM13,000 in my account. All my life I've saved all my duit raya, and I got a part time job while at uni. I help senior (read: middle-aged) students write their papers, assignments, thesis etc. I'm also quite stingy so I never buy anything that's not necessary. So what should I do with the money? So far I'm thinking of either saving the money (duh!) or using it to fully pay my PTPTN. I borrowed 12,000 from PTPTN but since it has no interest, maybe it would be better for me to use the money for other important things. Any Advice?

Thanks!

No, just because you don't know does not mean that "There is no such thing as high returns low risks".

Manage risk on what sense and how? I do not see any clue from your post

Hi guys,

I am near 30s and got burden with house loan of 30 yrs. Can investment really make someone rich?

not really ler.. cos most u can make also maybe 10-20k in a year. that wont really make u rich..

And u need money for investment so its either u r already rich then invest become more rich a bit.

Wat i mean is that it not stable la

that 1 is investment banker liao.. its different.

cos if u r investment banker, u r already doing your job and get paid >10k every month.. the extra money from investment is like bonus only

I am not a bumiputra and I still hold on my opinion that "There is such thing as high returns low risks" and you ignore it at your own opportunity loss .

Other than that, I agree to your other statement on risk management, at least put in your thought instead saying generally "manage your risk appropriately".

It is easy, go understand the value investing strategy. IMHO, it is a row risks high return strategy for investments. The principal is to understand that value is what you get and price is what you pay. When you buy at cheap, your risk is lower with potential to earn higher return, of course you should be the non-believer of efficient market hyphotesis.

For example, most normal investors would think a share that drop from RM100 to RM10 (drop by 90%) is more risky than a share drop from RM100 to RM50 (drop by 50%) due to volatility. However, I look at da ifferent angel that there is more room for RM50 to drop to RM5 (drop by 90%) than RM10 to RM5 (drop by 50%) and thus more risky to buy at RM50. So buying a share from RM100 to RM10 (drop by 90%) is having lower risky than a share drop from RM100 to RM50.

When the share price bounce back from RM10 back to RM100 (appreciate by 1000%) and making profiting than if it was to bounce back from RM50 to RM100 (appreciated by 200%).

This is what I am emphasising on low risk high return.

1998.. that was a bad year for Malaysia, but it also presented great opportunity for a lot of people..