if i earn 20 million a month also i wont buy a 300k car.

my brains will immediately go ka ching, forcing me to sell said car immediately (maybe get RM260K back),invest in a trust fund, generating returns of RM30K per year, and buy a Myvi by taking the longest bank loan (hopefully my car cost is RM600 per month)

so the RM30K returns per year, i invest it in another trust fund, netting me RM6K per year, enough to cover my car cost

Hence, instead of losing 300k on a car, i use the RETURNS OF THE RETURNS of the price, to buy a myvi.

The problem is, driving smart is a waaaaaay better method to reduce death chance, rather than buying an expensive car.

the chances of death in a car is already low
but chances of death in a car, given you are driving smart, is darn near 0.00%


To me, the only reason to buy a car so expensive, if im a CEO of a company i dont fully own, so i can use company funds to buy said car, and "expense" it and charge my shareholders


This post has been edited by FindingGamerWife: Apr 10 2014, 08:14 PM

not really.

notice how out of the 300k, only the returns of the 30k is used to buy a car.
in fact, the 260k are all making more money to make more money for me.

all my earnings are making more money to make more money for me.

in short, by not buying a car, you are less a slave of your own money

because buying a car means you have to slave to pay for the debt, pay for maintainence, and work more.

you dont understand simply because you are not in my position

Why do you think warren buffet still want to earn money despite being a billionaire?
Why do you think taib want to have power on sarawak despite being a billionaire?

every billionaire in top 20, continue to strive to become a billionaire

Once you reach my position, you will understand the real meaning of money. Money is not about spending on this that, showing off in a car, whatever

money is a game of life. it doesnt matter if i spend or do not spend on myself, but money is a game. all spending is meaningless in the spirit of the game of making more money. how much money can i ever accumulate? how big can my power and empire grow? how much money can i make in my lifetime? these are the questions once you reach financial independence. its no longer about how big car i can drive etc etc. those are just side dishes to the main game of money.

the chance of death on a car is only 3 to 9 deaths per billion km travelled (UK is at 3.1, we are at the upper end)

if you travel 30km back and forth to work everyday, thats only 250-300 per billion chance or 0.0000027% in any given day.

Furthermore, the probability of being in an accident given that you are smart is only 10% of the average accident rate. that makes it even thinner at 0.00000027%.

the cummulative probability of death in 40 years (which has 40x250 driving days = xsqrt(10000) which is 0.000027% probability of death in a lifetime. or approximately 0.00%

This post has been edited by FindingGamerWife: Apr 10 2014, 09:16 PM

When he bought the private jet, he bought it because it the incremental profit and the additional utility from time saved (versus commercial), is better than the opportunity cost of the maintainence/depreciation of the asset.

For example, even someone like me, i value my luxury time at RM90-140 per hour. Someone like warren buffet as a billionaire would probabily value his time at USD100,000-USD150,000 per hour. hence, as long as luxury time gained is more than opp cost of the plane, he will still profits.

moreover, weather you use a myvi or a ferarri to work, ur gonna get stuck in the same jam as everyone.

read properly

the first purchase consideration is a car. A car wont save you more time irregardless of what car you drive. (myvi or honda or toyota, you will still get stuck in the same jam) hence, since there is no time saving, there is no luxury time accumulated, and hence, in monetary terms, you have wasted money

warren buffet bought a plane. A plane can save a few hours of travel and queueing compared to its next best alternative (commercial aircraft). Furthermore, it allows flexibility for warren buffet to schedule his meetings. For someone who have a luxury time valued at USD 100,000-150,000 per hour like warren buffet, if he travels everyday, he can easily accumulate a few million USD worth of luxury time.

Luxury time, can easily be converted to money (by working, making an investment decision, etc), hence in monetary terms, is effective.

TLDR: Time is money
Expensive car saves you no time, hence you wasted $(price of car)
Private airplane saves time, hence, it is not a waste if opportunity cost is less than Value of time saved.

This post has been edited by FindingGamerWife: Apr 11 2014, 07:28 AM

actually, i spend more than 15 days a year enjoying mother nature, and 7 hours a day on weekdays relaxing (5.00pm to 2.00am is my hours).
Weekends i cross country cycling.

Spending and enjoyment has a middle parameter, which is the util efficiency. I maximise utility per unit dollar, thats why everyday is a holiday to me. I go to work, update some spreadsheets, socialise and go out to talk with clients, or go to investment talks and seminars. 5.00pm-2am is my private hours.

This is how i become happy despite my own spending patern. people think the only way to be happy, is to spend.

but they end up spending 300k on a car yet get stuck in a jam 3 hours a day, while i spend RM3 per month on my mode of transport, and spend 10 minutes traveling a day

they spend 20k-30k on a 1 week holiday packages to city centres like france, while i can spend 3k-5k and enjoy 3-4 weeks of mother nature.


Thats why, many people are trapped. without efficiency of spending money, without thinking on what they spend, they keep on buying expensive items which gives little to no happiness. And thats their own downfall.


And many different analyst and sector specialist and professionals say what im saying in a different way.
They say after the 4th house, you will just go for properties
They say once you achieve millionaire, you can be more relaxed
They say you need to achieve some kind of net worth.

But in reality, the threshold is not magnitude of wealth, it is the wealth relative to spending. IE: financial independence.

in almost the past decade, i have only spent RM20.70 on eating out in restaurants/side stalls/etc. mostly for when i woke up late, and have to buy nasi lemak, which happens once every few years.99%+ of the time, i cook all my meals myself. and manage my own groceries.

I always cook myself. because the kind of food i cook, is hard to find at normal roadside stalls in Malaysia. Its also my hobby to cook, and innovate on food (not really innovate lol but yeah tweak tweak recipe).

Furthermore, i hate waiting for food at diners. lol.

This post has been edited by FindingGamerWife: Apr 11 2014, 08:34 AM

note how luxury time = I equate to money just now? (in the warren buffet example)

the main aim of life, is to maximise luxury time (or maximising utility). because by having lots of luxury time, you maximise your enjoyment in life. you want to have as much free time to enjoy life as possible, and do what you consider most fun, in the mean time still have enough money for financial independence.


In short, all the money in the world, or spending in the world, my main goal, is to free up more and more luxury time for myself. Luxury time translates into happiness, utility, and satisfaction in life.

Lots of people think that money is the most important resource in the world, and needs to be optimised. but in reality, money is the second derivative of time. Time is the most important resource in the world. And to have free time, is to understand the true meaning of why we work everyday, earn money and spend. To gain more time for ourselves.



capital gains has no tax, only 2-3% zakat.
property gains has no tax considering my holding period, only 2-3% zakat.
my dividends, i have always calculated it in an after-tax basis
ASB and AS1M has no tax, only 2-3% zakat.


Any FM worth salt, will always consider returns in an after tax basis. Saying you are financially independent, only for your client to be killed by tax, is the best way to blow your own credibility lulz.

actually. in the fm industry, losing millions = no feel. You only feel it if you lose your money because you made stupid decisions, like not being diversified enough, or acting on impulse. of which we keep on learning. if KLCI went to 0, and my fund went to 10, i still outperform KLCI.


My personal portfolio is relatively diversified, with some in fixed-priced funds like Tabung haji, ASB, KWSP, AS1M, i have malaysian equity, i have some in FD, i have some in gold and silver paper, i have quite a large chunk in my condo's and property across KL, i have some in mutual funds, and some in foreign equity.

It is normal for price to fall, and any of my asset class can underperform. But as long as im diversified, its difficult to lose all my money at the same time. Even if the world goes to war, or malaysia interest rates goes to 30%, or pakatan rakyat takes over, or US gets nuked to hell, ill be fine. I will lose some money. thats to be expected in life. but i will always be conforted by the fact that, i am much better to do than most people around me.

depends. i put money in FD based on my current income requirement.
For example, since next year im aiming to buy 1 or two more properties, and i need 30% down, so i will have some 200k-300k cash in FD.

Property is a good hedge of inflation. A good hedge of inflation has a characteristic that its nominal value increase through time. And hence, i do put a large chunk of my investment in property. The net rental income is enough to cover my historical loan payment by almost 1.5x, so it also is a cash generating asset. Furthermore, the rental of condo, also increases through time. and hence, it is quite a good asset class to be in, as long as there is law and order in land ownership. Property makes up >45% of my portfolio.

ASB/AS1m/Tabung haji are decent investments, but they only make up less than 7% of my portfolio because they are not inflation hedges. Investments in non-inflation hedges like fixed price fund will expose you to inflation risk, and too much weighting will result in you underperforming during periods of high inflation.

That means, during periods of high inflation, ASB will give 7%-8%. but money will deteoriate at a rate faster than 7%-8%. Moreover, property prices and equity and commodities, which are better hedges in inflation, will increase faster than the inflation rate. Hence, it as i said, its not good to be too focused in ASB/AS1m/Tabung haji.


However, Bank FD has a lower return.
According to my own investment policy statement, my risk profile is above average risk tolerance, and to maximise return given risk tolerance. Having too much money in bank safe, altho is "safe" (not really, the quality of your bank savings is only as good as the quality of the bank). will jeapordise total returns, hence, bank FD should be only used for immediate liquidity requirements. Especially given my long time horizon of 50-60 years to my own death.

This post has been edited by FindingGamerWife: Apr 11 2014, 09:04 AM

just leave ur money in account1/2 la zzzzzz.

if u wan in tabung haji, you need potong ur kewkew

Top to bottom depending on priority.

endowment fund
foundation
trust
charity

i plan to set up foundation, trusts, and charity under my name
my target is 30 mil by 2055. its not much, but enough to hire a good manager once I die. (it is hard to open a foundation if the asset size is too small)

This post has been edited by FindingGamerWife: Apr 11 2014, 09:58 AM

it is normal for middle class serfs to attempt to lure you into their wasteful lifestyle.

They do so by

- Pressuring you to get married with beautiful expensive wife
- Pressuring you to buy expensive car
- Pressure you to wear branded clothes
- Pressure you to eat in expensive dining halls
- Pressuring you to go on expensive holidays
- Pressure you to have expensive weddings etc.

They will say you have no life if you dont marry beautiful expensive wife OR do not have exp car OR not using branded clothes OR not going to expensive diners OR not going to expensive holidays OR not having an expensive wedding.

In short, you have no life, unless you live like a middle class serf.

Thats why, majority of malaysians are middle class serf. they have no ability to say no, and hence, they get swept in wasteful lifestyle, and get drowned in debt.

Do whatever you want. Live however you want to live. Do whatever you enjoy. your life is yours. Not theirs.