all income should goes to pay/acquire asset (FD, business) such that the assets can generate passive income to pay for all expenses/debt.

This cycle should be automated until passive income exceed all expenses, where you achieve financial freedom on paper.

That's all is needed for the so called Personal Financial Management.

some like it complicated, others like it simple, to each its own.

on paper yes, but then this is life, there is always unexpected things that we need to buffer against.

keep your expenses low, once your income generating asset exceed your expense generating liability are all covered, you would never need to learn about personal finances.

for every liability you need to acquire, you need to find an asset to cover for it. thumb of rules always work for those who knows how to apply it.

free advice are not specific, and not accountable.

use it on own digression, disagree if u like.

from your replies, even if i share more (which i already did), you will still blame me for not sharing more.

so.. i guess i have to agree with you.

over and out.

any property 'owners' who only paid 10% deposit or pays 50% interest of his/her month installment would should rather consider their property as liability rather than asset. One should not call themselves owner owner unless they have fully paid a freehold property, they real owner is the bank.

Some are deluded into thinking they could sell at market for double of their initial purchase price, without realize how much they already paid to bank in the form of interest, legal fees, property agent fees, taxation, maintenance cost, quit rent, etc that wiped out any profit that they probably gain. Many of these 'owners' whose tenant barely help cover their installments and only pray that they could come out a little more profitable, majority after sold tried hard to convince others that they 'made' money from property, after their so called 'flip'.

Any 10% owners like to testify or counter my view feel free to share openly.

technically you should buy a property < 7 x net income 6190 x 12 mths = 520k and hopefully get 6% rental yield, i.e. 6% * 500k / 12 = 2500 rental income if you rent whole unit out. How much you bought the condo btw?

Also, spending rm3070 for property out of 6190 net income is rather risky move, someone mentioned rent 2 rooms for 1k, you cannot even cover cost, so it's definitely negative cashflow. Not to mentioned cukai pintu, repair cost, legal fee, stamping fee, misc bills, etc. Situation would be worse off if you only paid 10% deposit.

dont worry it's not entirely your fault if you need a roof, but current market price is not attractive for home ownership, as mean salary (hence rent) lags (or drags) behind property price.

This post has been edited by lowya: May 23 2017, 11:05 AM