According to reports, less than 0.4% of adults in this country have over us$1m net worth.

Source? Individual or household?

IMHO, even at USD$1M net worth, may not be enough due to:
1. extreme "gravy wanted" / lifeSTYLE
2. net worth includes non-$ making items like home, cars, super bikes, yatchts (?!!), etc.
3. ever inflating lifeSTYLE due to more income, instead of tapering off once certain comfort levels have been reached

Wealth report by investment bank. Adults.

This post has been edited by icemanfx: Aug 7 2018, 01:03 PM

We cannot always look-look up up and keep competing with our rich friends or neighbours.

Sometimes we need to look down at less fortunate people and see how they can live happily while managing their tight household incomes. If we lucky to get higher active income but keep our lifestyle like people less fortunate (not too extremely frugal), I’m quite sure that many people can achieve FI.

Also still living happily with our beloved family.

momma says - one mountain got one mountain higher
thus, best to compare with oneself, ie. yesterday's self and try to better that.
maybe different mommas teach different things kua , ie. some teach children to keep up with the Joneses

This post has been edited by wongmunkeong: Aug 7 2018, 01:57 PM

If net worth including car, and home, then it is not good yield stick to determine FI.

It is ability to generate passive income from the gross/net worth which is more important that determine the FI.
Eg.
A lives in a house that worth 5.5 mil, but has nothing else, A net worth is 5.5 mil. But has zero passive income, A is not FI at this point, until A liquidates the house.

B lives in 500k house, and has other investment/asset worth 5 mil that generates 5% average or 250K pa passive income, B is FI.

Cash money is needed for paying daily expenses, not net worth.
Don't be surprise this cashflow management 101 that even some big corporate, listed company failed to do so.

Nowaday its more effective manifest your thoughts in opposite ways.

One more year syndrome always hit FIRE folks when reached original target, finding contentment is way more important prior calling for RE. Kudos to meonkutu11

If 5M then based on 4% FD it is about 200k/year which is about 17k per month

It definitely looks a lot for now, even for a family with a reasonable good lifestyle

I think the main consideration here is in the future 10 years or so perhaps there is no more guarantee return of 4% per year in FD, who knows the interest rate will decrease to a new low. Therefore at least RM 5M is just to be safe and worry free.

Again I think if someone can achieve RM 5M current asset (easily disposable to generate cash such as bank savings, stocks, unit trust etc), then his/her ability at that time will be enough to continue surviving, and growing the capital without working

Fully agree that some of people need this much. Maybe current lifestyle and commitments with kids and etc needing that much monthly expenses. But thats some of us, and I believe not the most of people.

If you see not many getting their salary growth passes 10k in 10years. Take government servant for example but we will see even with 2-3 kids, they are managing their life better.

Even fresh graduates now, when I started (11yrs ago) around 2500 and I believe that company still paid freshie with same basic salary.

My point is, I believe in 10years time, we maybe dont need x3,x4,x5 of our current expenses in order to survive. Even so, we always can do side job/part time to get additional income. Rather than keep stuck in rat race thinking that we still dont have enough money (which will never enough).

People say “reducing/controlling our expenses is easier than increasing our income”.

-Only my opinion-

reminds me of 'The quality of the Question greatly affects the quality of the Answer"

eg.
when we dunno how much we need /for goals/whys
AND how much we have,
thus can plan & explore how to "get there",
HOW la to "have enough" leh? "Enough" also no idea what number or why

Thus, the Q of "how much is enough".. maybe better Qs are "what do i want to achieve, why, by when" to make things clear/prioritize,
then the "how tos" can be filled in - with many many options/choices.

Just a thought, no absolute right/wrong - just Wong

this. why ar. why don't move one ar. then how youngster can save? lol

Do we have anything similar to what the FI/RE ppl of US uses.
Nearly all of them emphasize Betterment .

so.. focusing on that only = cant?
FYI - during my parents' time, no investment books, no forums to learn from, no computers & Internet, etc.
Ya, $ was "big" then but houses still costs several donkey years' wages.

my time - just had dial-up modem + BBS, luckily have investment books + security firms for stocks & mutual funds
heck 1990s was a challenging year to find good paying starter jobs. i started as a warehousing assistant, driving forklifts and even climbing several stories of racking..

nowadays, U young ones have access to the WORLD via online brokerages, online tools, info, etc.
heck, nowadays banks giving free $ in terms of 0% 6 to 15 months balance transfer or cash into account. dont have to believe me - check it out with HSBC, HLB, PB, Aeon Credit and MBB on/off.

not downplaying your challenges - just stating every generation have their challenges. so.. roll-over & play dead or learn & adapt?

This post has been edited by wongmunkeong: Aug 10 2018, 11:49 AM

How u guys plan for kids education fund?

My kids only toddler stage, i don't know how much they need?

I read with great interest this thread. I have pondered for a long time whether i should put in my perspective about Financial Independence/ Retire Early and i have finally decided maybe i should.
I have lived and worked in Sydney for just under 40 years and plan to retire next year (in Msia). I can continue to work if i want to and can add about A$60-70k/yr extra to my retirement fund if i decide to work longer but i have decided not to as i have no kids and my wife also has some retirement money having worked to 50 herself. If i retire next year, both our retirement assets can generate a minimum of RM14k/mth (based on a conservative 3% return). If i work another few more years, this figure will probably go into RM20k+/mth and all my friends (and relatives) are telling me not to stop as i have a very cushy job and know most things like the back of my hand.
I ask myself how much money do i need to be in 'happy' in retirement? My wife has always been pushing me to retire as she thinks that we have quite sufficient funds to retire in Msia. I have been researching this passive income subject for a long time and how much is 'enough' as my relatives are saying that i am making a big mistake by retiring at such a young age (in Sydney most people continue to work and don't stop because of the cost of living is so high).
After a lot of analysis and research, i find that this happiness (about how much passive income we need so we will be satisfied whether we plan to retire or not) is very strong connected to contentment. I am an easily contented person (in-built in my personality) and is satisfied with the simple things in life (although my weak spot is food which is what i think will take up most of my retirement expenses).
Just my 2c worth of reading for a Sunday morning.

like life, it HEAVILY depends..
1. on Gov Uni?
a. cheap lar compared to (2.)

2. on Private Uni/College?
a. If totally local, current cost is about MYR150K+/- for a UK/AU computer science degree
b. If 3+1 or 2+2 etc. - the cost of living overseas is the main pain
c. Ivy league? <faints>

3. on type of degree
a. Engineering & other stuff needing specialized tools?
b. Medical? get ready with at least $500K if without subsidy / scholarship
c. general stuff like biz, computing, accounting, etc.? "cheapest"

I'd suggest:
take the above $ cost, then calculate FUTURE COST = CURRENT COST *(1 +xx%) ^yy
xx% = education inflation expected, eg. 6%pa 8%pa
yy = number of years to uni, eg. kid now 3, thus around 15 years time
using above eg. in Excel, FUTURE COST = 150K * (1+6%)^15
in English, "^" is "power of"

the current costs can easily be found via googling the local campuses & their programmes

hope the above idea/guide helps


It's a great feeling having nailed down a goal / clarity, thus focus eh.

Just some data, just in case (my apologies for assuming if U already know) to help in your planning, since i'm living in MY for (like ever! ):
1. FD here - if yearly, U can get 4%pa +/- unless MY goes crazy up or down, i've seen 10%pa+ before but that was like in 1980s

2. Food is generally "cheap" comparatively - per pax, eating out MYR20-30, unless U are talking about fine dining which can be easily MYRXXX to MYRX,XXX per pax. If U are like me - likes food & eats anywhere but eats a lot, per pax range from MYR12 to MYR35 - from good wanton noodles to bahkutteh dry+wet (told U i eat like a pig )

3. Rentals? heavily dependant on area
Cost of home? also heavily dependant on area & landed or apartment-types.
eg. rentals for a landed house ranges from MYR1.5K to MYR2K currently VS purchasing a house MYR800K to MYR1.xM,
in Subang Jaya & Petaling Jaya (my normal haunts)

4. Inflation - officially around 4%pa+/-
Unofficially.. gawd.. it can be bad if one's lifeSTYLE is crazy or it can be nearly half that, ie. 2%+, if one is frugal (not into Starbucks and the likes of branded only lifeSTYLE)

5. Cost of maintenance - car, home, wiring, water-related, airconds, etc.
Still "cheap enough" to "outsource" for middle-income families in MY compared to developed nations.

6. Suggestion to look up MALAYSIA MY SECOND HOME if you're an Aussie planning to retire in MY - why not leverage on what is available

Just some thoughts ya, and my bad if U already know all the above (and more)

This post has been edited by wongmunkeong: Aug 12 2018, 10:30 AM

Well the provlem is we wont know what courses they will take....
just assume medicine as the worst?

IMHO, in all budgeting & cash flow planning, it's a matter of probability or median lor
if assume highest or 0, then either stressed like kaka or no need to save
thus, personally, i'm using MYR200K+ as current cost then add inflation.
i've been doing this since 2012 and my extrapolation of costs then, is very near the $200K+ cost now. thus, ok lar - works for me as a clear focus

Agreed. After all, "what is enough" & contentment is very subjective to a person; Eg: Birkin bag is basic need for Rosmah but Bata slippers is enough for TunM.

I'm doing a lots of study on contentment, mindfulness as well lately and found following pretty insightful too.
> https://beherenownetwork.com/category/joseph-goldstein/ (series of podcast, [as a freethinker, take away the religion elements] it's good to learn his views and interprete the life)
> https://www.thesimpledollar.com/the-wisdom-...final-thoughts/