Well again, it would depend on how much one is spending. If spending RM900k out of a RM1 mil income every month, what will RM100k a month savings do?

Rule of thumb to achieve FIRE, spend less than your savings rate. Eg, if you save RM1.5k a month, then you spend RM1k a month. Over a period of 20 years (hopefully you have been investing all that money at 5% pa return), then you will be able to achieve FIRE by the age of 45 and live on your investment returns for 40 years (RM2.8k withdrawal rate a month).

That is the simplest form of calculation for a better understanding.

That's not key.

I have achieved FI, but I still have mortgages (25 years to go), hire purchases etc other bills to pay.

The key is that, my passive income is greater than my expenses.

Technically... the less you spend the faster you can achieve FI..

If you can live on RM 1500 a month.. RM 750k is sufficient to retire on indefinitely..

Assuming 2.5% withdraw rate and 5% fixed income fund return.

But who can live on 1500 a month in modern times unless you're really frugal.

I've been saying, FIRE work even better, the further down the income scale you go.

True.. or alternatively if you can lower your expenses significantly, you can also achieve FI earlier.
Most common way is if your house is worth a lot, sell and downgrade to a cheaper home. Then use the difference to generate more passive income.

This post has been edited by Slash21: Feb 14 2019, 07:00 PM

Can you share your personal experience "road to FI"?

Was there any significant changes (e.g. lifestyles, commitment, etc) done during the journey?

Was the fund for saving and investment came from normal active job or business?

During the journey, was there any big adjustment to the expenses for the household, kids and education etc?


Thanks.

If one could live like a monk, could fire fairly easily and early. The question is whether this lifestyle is suitable, worth fire for?

All this talk about being frugal. Personally I feel that not enough focus is being talked about upping ur income.

Although both of them are important. It is a balance. If u arent earning enough it doesnt matter how much % u save.

But savings are the things that allow u to invest and become financially free.

As only about 3% of adults in this country have over us$100k net worth mean most of reply are like asking a blind to lead a deaf.

Half true. If you are not frugal, no matter how much you earn you gonna spend it all.

I've actually shared some of my experiences previously under the user 'tucker crowe', but that user got banned and all my posts got deleted.

Such a shame, and a bloody waste of time. Won't be surprised if this user gets banned too, please dont report this dupe

Anyway, I can share one of the things I changed.

12 years ago, I finished paying off my Proton car 5-year term installment. I did some calculation back then, think I was spending on average about RM1,500 for this car (installment, petrol, toll, car park, insurance etc). I decided then to keep this car for another 10 years.

A year later, I moved to a home near the LRT. I started going to work using LRT. My transportation cost practically went from 1,500/month to 100/month. I use the car on weekends, but hardly. Whatever payment I make, I try to use my maybank Petronas card. All cc points I earned, I redeem Petrol gift card. I remember not paying for petrol at all for years.

Also 12 years ago, I started with zero in my savings account, I got married that year too and spent everything on the wedding.

In average over the last 12 years, with my salary growing, I put my money into savings at about RM3,000 a month. So in the last 12 years, I went from zero to 600k purely from this savings alone.

Now, a lot of people tell me the above wont work for them because their workplace is not near LRT. To be honest, I would have simply moved near my workplace - I would walk, cycle, kapchai to work. It does not matter how I get to work, as long as I dont drive.

But alas, people always have excuses. It's just a matter if you have that mindset to do it, or not.

p/s: since i reached FI 2 years ago, bought myself a beemer. And yes, I sold the 15 year old Proton

Good sharing. Keep it up!

In the end still boils down to one's contentment.
Some people can happy with flat and motorcycle.
Some people can happy with condo and local car.
Some people can happy with 3storeybungalow and foreign car.

Yes. Up the income, maintain or lower expenses, boost savings is the key.

But don't up income to a point you become stressed out or unhappy lah, maintain balance across everything.

Actually if you betul2 wanna FIRE, you WILL BE stressed out and unhappy at times.

Its a pain, but once you get there, then its heaven

30m 3% is like 900k
Perhaps some of them are on this thread, who knows

Here is a place for you to share and discuss, even if none of them are here, we still can learn from each other.

What makes you feel the reply here are like blind leading the deaf?

if one need to live frugally means their income is too low? no?

if your INCOME is 50k monthly, you SPEND 10k/month and SAVE 40k every month, i think you can live comfortably with that 10k/month and still get to save half mil a year

3% of adults is fewer than 900k.

For certain, some of those with over us$100k net worth are lurking here and the number remain among 3% of members.

Only those who are or could fire are worthy to emulate and carry weight else blow water only.

This post has been edited by icemanfx: Feb 15 2019, 02:16 PM

I think the point on this thread is retire early. If you only spend 1k per month, you can retire way earlier than spend 10k per month.

Not entirely true nor false
Some earning 10k but living like earning 3k while some earning 10k living like 15k..

It's either u find a way to have passive income the same as your working income or live frugally..
Plus living frugally does mean living comfortably tho.

i am getting almost 15k after all deductions.... spend about 7k including loans...balance safe ... considered good ?