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 FI/RE - Financial Independence / Retire Early, Share your experience

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TSmeonkutu11
post Feb 16 2019, 04:46 PM

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Definition from Google...

Whats does frugal mean?

The Real Meaning of Being Frugal. ... When someone is frugal, it may be that they do spend less money than the average consumer. But they're not miserly – or extreme with saving. Being frugal means one is less wasteful and more resourceful and people who live a frugal lifestyle are simply happily living with less.
TSmeonkutu11
post Mar 31 2019, 09:01 AM

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QUOTE(Garysydney @ Aug 12 2018, 08:47 AM)
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.
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Hi Uncle😁,

Interested to know what is the decision on this. Are you decided to settle or continue few more years over there?
Thanks
TSmeonkutu11
post May 3 2019, 05:46 PM

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QUOTE(Bjorn1688 @ May 3 2019, 05:18 PM)
I have been a practitioner of FI for a long time.

Stems from bad childhood experiences.

Basically there are a few principles to follow on this, here are mine :-

1) Have a clear goal in mind and always begin with the end in mind.

2) Be smart, be prudent, be somewhat secretive, be careful of false prophets  and be kind especially to yourself.

3) Don't be an arse, don't be naive, don't be boastful and finally  don't be too proud to ask for directions.

4) There is a BIG BIG difference between a need and a want, needs must be met wants does not need to be met. A venti latte at Starbucks isn't a need, an iPhone XR isn't a need, an outing at an Instagram cafe isn't a need if you can't claim the meal on your boss, eating out isn't a need and a Honda City/Toyota Vios isn't a need when you can get a car that is RM20k cheaper bare minimum and does the same job. Shelter is a need but having a nicely renovated landed house isn't a need.

5) No such thing as a shortcut to riches. No such thing as a free lunch. If a deal exist that is too good to be true then it most definitely is.

My goal of financial independence isn't really to retire early but to stop doing a job because I need the money but because it is what I enjoy doing.

I've had many turning points in life. I've had many challenges in life and if you think your life was difficult you clearly never walked a day in my shoes.

I've had parents that essentially said I'm not their kid from as far back as I was 10 when they went their separate ways.

Never had pocket money for school, went from 1 relative to another and when the going got tough I was passed on to someone else. Involved in gangsters became a norm, became a "loan shark" at 13 and you name the trouble in school I had it too from fighting to fucking in school I had it all before 16 years old. Oh yeah becoming a loan shark was my first taste of financial independence, used the ang pow money I had as capital. 50sen on Monday = 55sen on Friday.

Contrary to popular believe, despite coming from a wealthier background I haven't really been a beneficiary of that wealth because in my young days I've always opted for my road and my way. Stubbornness I suppose? Oh yes, I'm not really any smarter than any of you, for the record I mostly failed my UPSR and SRP and wasn't even offered a place for Form 4 in a SMK.

Only reason why I managed to continue school? I had a grandfather that in his retirement went on to become a Christian missionary and he used his influence to get me a place in an international school. This was where I had a turning point in life. Was among people that cared and guided me well.

I went on to Birmingham where I read engineering. During my time in England I picked up several jobs, one being a milkman and the other pulling pints at a pub. I bought myself a Morris Minor then because without it I could not get to work.

When I did my sandwich year, despite the new found income I still kept to my cheap ole student digs and made do with that Fiesta.

When I returned to Malaysia at the age of 23, I kept to it, what I have after savings was what I could live and spend on. That meant living at home in mum's house in exchange for paying the electric bill and some groceries. It meant no buying a Toyota Vios on 9 year loans, in fact there was no buying a Waja or any new car for that matter, instead I made do with a 1983 Volvo 244. Paid RM3000 cash for it. Fixed a couple of things on it on my own and it ran for 3 years. Guaranteed I was spending less per month on motoring than anyone else in the office at CyberJaya, because I had no car repayments and insurance was next to nothing. Meals? I used tupperwares to get leftovers from home or previous night's chapfan dinner I would take 1 or 2 extra dishes and ate it the next day.

Bought 1st house and 4 years later there was a major turning point. I lose absolutely everything, ex-wife decided she wanted out, she locked me out of the house and that was the end, savings, all the bonuses from previous years, everything gone. Only thing I had? A suitcase of dirty clothes and whatever I had on me plus that month's salary. Was 28 then.

I started over from scratch. I took a taxi to office, stayed at the office without anyone suspecting for a week that I was homeless. Looked for a room that was nearby, office was in Mid Valley, I rented a room at the low cost flats nearby. Walked to work everyday.

No issues with that, when asked why I did not drive I told them it was faster for me to walk, when I needed to go somewhere usually a distributor was more than happy to pick me up and give me a lift. Food? If boss paying then I go out, if can claim I would go out, else I would have a slice of bread with ham and hit the gym.
It was 5 months later when my mum finally asked where was I as she had driven to my former house to find I was no longer there. She asked me to let her help me I told her I did not need her help as I had everything I needed. It wasn't long before my dad found out I was living in a rented room in a low cost flat, he insisted I move to his house which was only a few km away, I declined as well.

A year later, my late grandfather left a house to 2 cousins and me, I borrowed money from my father to buy out the other 2 of them. Was originally going to live in a room but it turned out I saved more money by continuing to live in the rented room so I continued to live there. Rented it out whole and rental more than covered everything I needed to cover as well as make a profit.

When my financial situation improved, I got a mortgage to pay off my father for the balance of what I owed on the house, then I took some money to put as a deposit on a townhouse, a cheap one as it needed some work and there were issues with the strata title. After that as I collected enough I bought another unit and bought 4 within 2 years as there were many being let go on the cheap as no one wanted to buy one due to various reasons. In 2006 it cost less than RM120k to get a unit. Could rent for around RM1200 per month.

Then around 3 years later a new turning point came along, I started a new job that paid 30% more and while doing that job my uncle started selling off the late grandfather's properties and their businesses started failing and failing badly because of windfall money, gambling and poor business acumen. I saw a lifetime of an old man go gone with the wind within 6 months. I took the opportunity to buy up a property at a bargain, corner house for the price of an intermediate.

These days I keep a mantra of save 40% of your nett income. I also remarried and have a baby, the one thing that all the experiences made me realise, I can pass on every single one of my properties to my kid but without education it will be the same story.

Investing is important, how do I invest? 70% of my investments are in real estate. I pay 30-50% deposit, rentals pays off the 25 year loan. Profits? It goes back to reduce the principal. I don't really give a toss when people tell me there are better investments than real estate, you aren't walking in my shoes and I don't walk in yours.
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very good sharing and good points;
- don't overspent on needs
- don't give up to build up from scratch.
- save whenever you can
- grab opportunity.
- live low, buy asset and invest.
- Educate kids.

Thank you.
TSmeonkutu11
post Jul 24 2019, 01:04 AM

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QUOTE(BillCollector @ Jul 23 2019, 10:58 PM)
Retiring early isn't something I'm striving for as I always believe the idea of retiring early are for those that generally don't enjoy what they do for a living or simply do it just for the paycheck.

I do seek for financial freedom and independence though. It has been something I've looked at and planned for a long time. Past history made me realize without money and financial independence any dream you have can evaporate in front of your eyes.

This was further reinforced when I was about to get married. My financial freedoms meant I had control over what I wanted to do and I did not need to dance to the tune of  my now out-laws. I also realized with financial freedom I could follow any decisions based upon conscience and convictions I did not need to do something I did not want because my paycheck depended upon it.

How I seek financial independence? Quite simple, I buy assets that generate passive income.

I am not that big into trusting other people with my money as I've had too many bad experiences and for the most part I feel passive income for financial independence should come from sources that are very secure and safe.

My asset of choice is real estate, I used to buy stocks and bonds but now not any longer as you have to have too much faith in the system and quite easy to lose it all. The other aspect to it is unlike real estate you do fundamentally own something and nothing beats the security of it.

I have 2 types of real estate investments. The first kind is what most people do, but on the bargain and rent it out. I only buy certain types of real estates in Malaysia, namely landed, freehold and in mature or maturing areas. I usually buy something off auctions or I look for houses in need of TLC to buy on the cheap. Fix it and rent it out. Most of my properties are rented by American expatriates.

The other kind of real estate investment I do is I have a partnership with 3 other persons, a lawyer, a contractor and a real estate agent. We look for landed houses that are run down, derelict or ugly. Renovate it and sell it. Each of us contribute 25% of the cost and when it is sold the profit is shared out in the same way too. Our aim is to find a basic unit house that is worth RM1,000,000 and try to buy it for RM750,000 then spend around RM250-300,000 on renovations and finally sell it for RMRM1,250,000 or more. We try to do 2-4 of such projects each year and it is what we enjoy doing as a team, do we do it for the money? Our lawyer partner does but it indirectly helps him gain more clients. Our contractor each time we have a project he usually gains 2-5 more projects within the same neighborhood because someone saw the work he was doing and was impressed with it.

Savings is something I practice, I have a very simple way of looking at it. Primary job income when I get my salary, 10% goes for tithes, 20% gets saved in a separate account, the rest is what I live off and spend. Profits or returns from investments I tithe 15% of it and save 35% and every 4 months I keep 3 months expenses and the rest I put it in FDs till I collect enough for my next real estate purchase.

Here are the reasons for my quests for financial independence and freedom? The answer to this would go back to the past.
» Click to show Spoiler - click again to hide... «


I must say lessons in life I've always found are you are the master of your own destiny and if someone has to rely on you make sure you don't disappoint them however never put yourself in a situation that you must rely on someone.

Regrets in life? I have none.

Would I be retiring anytime soon? Nah.
Just letting you know that I was following this topic and loved the contributions you have made. But oh dear you did mention some too familiar names. Small world but best to let bygones be bygones.
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Thanks for sharing your life journey and your thoughts.
Such an amazing experiences that you have been through.

TSmeonkutu11
post Jul 25 2019, 11:51 PM

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QUOTE(cynthusc @ Jul 25 2019, 01:11 PM)
Loving all the stories here. I am FI but not planning to RE. I am probably semi retired now. I go to the office around 11 and work about 2-3 hours. I stay in the office until 4 or 5 but just surf the net, read story books and sometimes watch some movies. I don't work on Sat or Sun.  There are times when I have to work harder...maybe pull an all nighter but it is pretty rare...maybe once every 2 to 3 months.

I am 43 and a single mom. My daughter is 17 and just entered college on a scholarship.
When I was 19 I left home to enter a local university. Although I was offered several overseas scholarships I could not take the offer as my parents were not willing to subsidise my living expenses in UK although they could afford it.  I could have worked and studied at the same time but during that time at the age of 19 I was scared to go to UK alone and was really clueless. HAHAHA.

So anyway I left home and stayed in a hostel  that was crowded and more like a elevated version of a prison cell. 8 to a room. During my four years of studies I did well and the university sent me overseas for competitions. As it was a local university and I was not a bumi, I was not qualified for JPA or MARA scholarship and many of the private company scholarships at that time had a 2 year bond attached to the award. So I just hustled and got paid to do assignments for my uni mates. Paid my own way through university.

When I left university I got a high paying job immediately but being young and stupid I fell in love and got married at 25. By 26 I had my daughter and 10 months later I was divorced. At the time of my divorce my ex left me with no money and a car debt as he bought a car in my name.

Since I was 26 and had a young mouth to feed, I guess survival instincts kicked in. I then started working in 3 different companies before I left and started my own business 12 years ago.  I started my business because I wanted more time with my daughter and I wanted flexibility as I had no help from my family or my ex. I was totally on my own.

Currently my business has 5 full time employees  and two part timers and my income has doubled from last year. My income is approximately 600K per year after expenses. My passive income is about RM20K per month and will probably increase  because I am still earning and saving.

Most of my passive income comes from FD and share dividends. The rest from the rental of 2 properties (only 20%).

I am not a miserly person but I am quite frugal in my daily expenses. I eat at home quite a bit because I find home cooked food healthier and I love cooking.  Recently due to the increase in my earnings, I have loosen the purse strings a little and bought a 200K car. I have also increased my travelling because that is the only thing I like. I usually travel 3-4 times a year but now I travel business class. The car and some of the travelling is paid by my company as an expense.

As my daughter is on scholarship I don't really need to support my daughter that much. She gets a RM500 per month allowance from me and yet she hardly spends it.  She is an amazing person and we have a very close relationship.
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Thanks for sharing this. I believe it will give many of us more determination to work hard and not give when facing hard time in our life journey.


TSmeonkutu11
post Jul 26 2019, 02:19 PM

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QUOTE(ahwai @ Jul 26 2019, 11:37 AM)
if can still work why retire early? then do what at home?
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Thanks for your effort writing here.

The important parts is FI. As people shared here, we must start working on this as early as possible.

As general, the steps towards FI;

- Financial awareness
- Financial management
- Increase saving/investment
- Reduce/control expenses
- Maintain/reduce lifestyles

Once people achieve FI, they can choose to RE or continue their existing work/professions.

I believe when people here sharing about their retirement (want to retire), they already achieve that FI/FF phase.

Otherwise, FI/FF is the target, first.
TSmeonkutu11
post Jul 26 2019, 10:39 PM

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I like to ask your planning on kids education fund, especially those who already choose to RE but kids still in secondary schools for example.

Do you keep the fund in term of cash, ASNB,TH, FD, shares and/or property?

Cheers
TSmeonkutu11
post Jul 27 2019, 04:36 PM

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QUOTE(Hansel @ Jul 27 2019, 03:37 PM)
Another way of funding for kids' education is by investing into a country with a currency that has a strong tendency for appreciation. You continue to ride on that currency's strength.

I sent my family out when they were young, so that they could experience what it is like in an international community, and order that they they could mingle. Somehow, I feel that sending them out when they reach pre-U age is a bit too late. But that's just my opinions,...

Of course, sending them out earlier will consume more resources because we will start to spend for their studies and their living expenses t  younger age, compared to against when they reach pre-U age. Whatever spent earlier could then have been saved up for spending in later years.

However, I opted for the first choice.

My decision to invest in foreign countries has been a great help to me towards financing the above responsibility.
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Can you further explain how you sent your kids overseas when they are younger? Sent to relatives or boarding school?

TSmeonkutu11
post Jul 28 2019, 11:34 PM

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QUOTE(tometoto @ Jul 28 2019, 07:37 PM)
Tq share here it is very inspired.

I am otw also. But at the moment love my job and low stress since working at university. Planning to work until 60 and have saving about 2m. At the moment got 500k cash already at age of 35.

Keep sharing here
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Good job there managed to have 500k at 35.

Please share your journey and how manage your daily/monthly expenses. I’m sure it will benefit many people here. Thanks
TSmeonkutu11
post Aug 1 2019, 05:07 PM

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QUOTE(johnnyzai89 @ Aug 1 2019, 04:50 PM)
https://www.youtube.com/watch?v=_Q-nI1FRHnE

Do watch this for a good boost of inspiration smile.gif
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Thanks for sharing. Are you achieved or working towards FI/RE?
TSmeonkutu11
post Aug 2 2019, 04:46 PM

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QUOTE(johnnyzai89 @ Aug 1 2019, 07:30 PM)
achieving smile.gif
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Great!

Appreciate if you can share your journey so that people can learn from you. Thanks
TSmeonkutu11
post Aug 7 2019, 01:15 AM

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QUOTE(BillCollector @ Aug 1 2019, 12:57 AM)
I doubt I would stop redeveloping or taking on regeneration projects. I do it for interest, professional relevance as well as investment. However what will change is closer to retirement I probably would stop doing it for my own but purely for the fees and experience, most likely will do less as well as time goes by.

Properties across the globe? I haven't quite thought or decided on how I would manage them when I no longer have the energy to run around the same way.

No doubt dividends and coupons would be easier but without me taking on some of these development or regeneration projects I lose my relevance as a consultant for urban regeneration.
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Bill,

What’s your opinion on the off plan projects in UK with current situation?

TSmeonkutu11
post Aug 7 2019, 04:00 AM

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QUOTE(BillCollector @ Aug 7 2019, 01:46 AM)
In today's Britain it will depend on the location, proximity to rail/tube services and what energy efficiency rating it is been promised.

However I would not buy anything unless it is being built by the best of the best of developers as currently one of the biggest issues facing the building industry is awash with cash flow, materials and worker shortages due to Brexit.

Anyway I won't invest in any real estate in Britain at this moment in time until there is a clearer picture on Brexit.

Is there a project that is off interest to you?
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I bought one unit in Salford from X1 in 2016.

Been thinking whether it is a good time to get another one maybe also in Manchester or Birmingham or Liverpool.

Care to share the reliable and good developer over there?

TSmeonkutu11
post Aug 16 2019, 06:32 PM

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QUOTE(kbandito @ Aug 16 2019, 05:21 PM)
In an ideal world i would like my kids to go into a public uni like me and my wife did, I remember my total course fees for 3 years was <RM6,000)! Yet we are doing well in life compared to many people who spent 6-figure in private education.

He can then use up the education fund i set aside to him for i) a few years of gap year, or ii) to have a good head start in life, maybe for a house or investment to make up for the delay in starting his career.
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I like your points which get an investment i.e. property that can supports some of the expenses while kids are working and honestly I didn’t think of it before. That’s good way to ensure parents not overspend on education and also teach kids to start investing as early as they can.

Thanks for sharing.
TSmeonkutu11
post Aug 16 2019, 06:35 PM

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Guys, anyone has already chose to FIRE or knows anyone that passed this stage?

Many of us here working towards FI and some FIRE. But not many shared post-FIRE lives.

What kinds of problems, challenges or whether what they planned pre-FIRE less or more than what they need post-FIRE.

Thanks
TSmeonkutu11
post Aug 18 2019, 12:07 PM

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Thanks for sharing. Really appreciate it.
I love your thinking below and I’m fully agree with you. Also, we can use the time post-retirement to reconnect with community especially the unfortunate ones and helping them in which areas that we capable of.

I have a few questions if you don’t mind;

1- How long you have been retired?
2- RM13k monthly expenses are from first month you retired or has been gradually adjusted?

Thanks

QUOTE(magika @ Aug 18 2019, 10:39 AM)
In my opinion , a person should aspire to retire early so that we can reconnect with our friends and family that otherwise we dont have time for and also pursue our own interest not because we need to past the time but because we want to.

My monthly expenses is around RM13k. I would think most of it is due to eating expenses as we rarely cook at home.
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TSmeonkutu11
post Sep 17 2019, 07:38 PM

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QUOTE(pinnacle999 @ Sep 17 2019, 06:56 PM)
Finished reading all the posts under this thread. Amazing sharing and very inspiring life stories.

Have just started my journey towards FIRE few years back.

Savings close to 50-70% of net salary. Commitment is quite high for 2 kids and I am the sole breadwinner in the family.

I am sold with the idea of having option to work or not to work after reaching FI.

I will probably not RE but doing some other low stress part time or volunteer work to contribute to society.
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Nice bro and welcome.

Keep on sharing your journey, i.e targets, challenges, achievements etc. Much appreciated.

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