I think a lot of people has this misconception about FI/RE that there has to be an exact number to achieve FI/RE.

This is not true at all.

In fact, the less you make, the easier it is for you to achieve FI/RE.

Let's put it this way, does the person that earn 1k/month will have the same FI/RE number as the person who earns 100k/month?

Most probably no, because it depends on one's lifestyle and needs.

So, if you are talking about FI/RE - usually the poorer you are, the number will be smaller for you to achieve FI/RE.

No problem! Here's an excerpt from MrMoneyMoustache just for your reading pleasure

2: It Doesn’t Matter How Much Money you Make

Sure, many of the people most passionate about FIRE tend to be tech workers and doctors who happen to make a lot of money. When people with lower salaries notice this fact, they tune out and assume the ideas won’t work for them. When in fact, they work even better, the further down the income scale you go.

When I tell a Google employee earning $200,000 per year that she should not burn through too many $10.00-plus-tip glassses of wine at happy hour, she can rightfully respond that each one represents only about ten minutes of her after-tax pay. But what about the guy getting by on $20k? A ten-dollar expenditure is ten times more of a blow to his finances, and an even bigger portion of his monthly surplus income, if he has any surplus at all.

I’m not telling low-income people that they can retire in five years. I am telling them that they can make their lives better, RIGHT NOW, by spending less money on certain things that don’t improve any of our lives. Ten dollar drinks are one easy example, but there are dozens of other ones that I’m suggesting.

And dozens of ten-dollar bills start to add up to real money pretty quickly, which is something most people don’t realize. The vast majority of wealthy people are the ones who have figured out that a millionaire is made ten bucks at a time.

At the opposite end of the scale, earning more income will rarely solve your financial problems: most high-income people are still within just a few paychecks of insolvency, because it is possible to blow almost any paycheck, simply by adding or upgrading more cars, houses, and vacations.

A fundamental truth in society is that most people are pretty bad at math. At the core, these FIRE ideas are simply about taking some solid math, combining it with principles of human happiness, and then distilling it down into a list of simple tactics that will get you way ahead in all areas of life. The benefits go way beyond money.

Source

I think you're talking about continuing work once reach FI, not RE.

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.

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

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

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

good or not good, only you can decide. Everyone has a different number for FIRE.

p/s:why so many /k open topic like this. Tell us what you make, then ask good or not?

Thanks!

No, I reached FI with about 1.5m in savings (the other 900k from flipping properties - this all happened in the past 10 years), and another 500k in EPF.

Waiting for my EPF to reach 1m (currently at about 600k) so I can start withdrawing the dividends. I think I can RE (yes still working) in 5 years time with 3m in total.

My wife is on the same path & progress as me, so household should have 6m.

This post has been edited by Bora Prisoner: Feb 15 2019, 02:50 PM

currently i'm saving about 40% of my income. You should not really bother about percentages, because it fluctuates because a) your salary increases over time & b) your spending & priority change over time. What's important here is just to save as much as you possibly can anytime.

As for post-RE, with 6m and a modest rate of 5% per annum income we should be able to generate 25k/month. The big ticket items are our home which is 2.5k/month, and maybe we would each like to have a decent conti car at around 5k/month. So the rest is just money to spend on anything lah.

We thought about moving to some semi-dee in Mont Kiara and rent for 5k/month once the kids become teenagers, then have the current condo we're staying in rented out. Then move back to condo once kids are off to college.


Yes, I agree the property boom helped. I netted 900k from flipping 3 properties.

I still hold another 3 properties rented out, they're not making any real monthly income because the rent just covers the expenses. I'm keeping them for capital appreciation, and also for other big expenses in the future ie college fund, wedding, medical emergencies etc so will offload them when needed to.

FD & dividend-yielding stocks

Just some examples of what i think i did that was frugal

1. Kept same car for 15years
2. Go to work by lrt
3. Electricity bill averaging rm50. Got AC but never use.
4. Water bill RM0
5. No astro for 15 years
6. Meals stick to 3 times a day. No snacks in between
7. I dont take coffee, or tea. So avoid those ‘starbucks trap’
8. Minamalist furniture


This post has been edited by Bora Prisoner: Feb 16 2019, 08:00 PM

You mean life insurance?

Mine is About 2%.

I don’t bother much about life insurance it’s not vital in my plans

This post has been edited by Bora Prisoner: Feb 17 2019, 02:12 AM

Hi, how are you able to afford RM8k/month house when you only make RM7k/month?

https://forum.lowyat.net/index.php?showtopic=4731021

speaking of car loan, which one did you get - axia or iriz?

https://forum.lowyat.net/index.php?showtopic=4439920&hl=

eh, but previous post say you have a bmw and honda. which is it?

I only learned about FIRE through this forum, which was about a couple of months ago. Strangely enough, I've been practicing this concept for the last 12 years without knowing its called FIRE.

I can understand that you cannot forfeit all lifestyle spendings. I only have 1 guilty pleasure, which is traveling.

While I save most of my monthly income, I spend all my annual bonuses on traveling.

To date, I have traveled to 37 countries.

yup it's a renters market...but it's also a buyer's market, the secondary market at least.

A lot of owners are willing to let go their properties at a much discounted price now - especially those people with 3-4 properties like you mentioned

Now 41.

Start ASAP.

here's the thing, there is no fixed number, everyone will have a different number.

the one thing people dont realise about FIRE, is that the lower your income, the lower the number for you to achieve FIRE. Your lifestyle decides it.

I'm wondering why is your wife still working? Dont you have enough to cover household expenses, or she just feels like working?