Interesting stuff. Something i came across in lowyat.net forum. Just sharing it out here. Here's the link to that forum https://forum.lowyat.net/topic/2953389/+1460
Ride a bike/Public transport?
The biggest hidden cost anywhere is often the car. Most of us assume it’s the only way to get around, and that cascades into an unhappy and less-wealthy lifestyle. So if you design your lifestyle to be based around walking and biking instead, you end up healthier, happier, and often $15,000 (depends on country) or more a year richer. FYI, M'sia is 2nd most expensive country to own a car.
Make that RINGGIT work for you
Start thinking of ringgit bills as little blue/green/purple employees. If you spend a ringgit, it’s gone forever. If you invest that ringgit, it works for you forever. So your goal is to keep as many of these employees working for you as you can, rather than letting them slip through your fingers. Once the fruits of their labor are enough to pay for all your needs, then you can start getting a bit sloppier.
It’s about the spending
How much you spend is more important than how much you earn. While income can come and go with booms and busts, you can control your spending much more easily. And when you gain this control, it provides a huge happiness boost, because you are no longer at the mercy of the world. As a convenient side effect, your spending rate is the single biggest factor determining when you’ll be wealthy enough to retire.
Turn off the TV (True for me,never watch TV - less than 1 hour in a year icon_rolleyes.gif )
Do anything besides watching TV. Your hours outside of work are the most valuable ones you have. Most of us discard these hours by plugging the brain into a TV and the opportunity is squandered. But as soon as you completely remove any form of broadcast and cable TV from your house, magical things start happening. Your mind wakes up and starts looking for information again. You start reading, learning and exercising more. You are freed from the inaccurate perception that the world is a dangerous and negative place, an illusion created by the sensationalistic nightly news to keep people hooked. You start meeting more people and opportunities start multiplying. You have more time, money, energy, health and creativity. Life gets immeasurably better.
You don’t have to believe me. Just try it for a week and make a note of how it feels. Then you’ll want to try another month, and so on. I gave up TV 15 years ago and I have never looked back and never been happier.
Fill your life with riches
Learn about happiness. Read some books about it, and study up on managing stress as well. If you make happiness your life goal, which if you think about it is the only goal that really makes sense, you realize that many things you were chasing after are just distractions.
I was reading something interesting on lowyat forum on making money and decided to post it here. Not my work but just sharing. To view the original posting please go here: https://forum.lowyat.net/topic/2953389/+1460
Retire early...35 to 40 years old
1. Fully pay up house/condo/apt
2. Average your spending in a month x 12/year, let say RM3,000 (avg) = RM36,000.00. Rule of thumb 25 times of your average annual spending! 25 x RM36,000 = RM900,000.00, Below 2 options :
Say, average int rate(fixed long term, 3.8%) (BR - 4.6-4.7%)
Option A (3.8% int) You need RM950,000 x 3.8% (auto renewal,% maintain till 30years..), to generate your int. RM36,100.00, any spending less than that, its a saving..
Option B :(BR 4.7% - 5 years) You need RM770,000 x 4.7%, to generate your int. RM36,190.00.
3. You dont need to work anymore, your interest will be generate income for your average spending. Financial Freedom.. rclxm9.gif
4. You still have your EPF not factored in (est RM800/month @ RM198,200 min saving set by EPF)
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