Tuesday, January 14, 2020

One Year Anniversary of My Early Retirement is Coming Soon

By mid-February 2020, I will celebrate my first anniversary of my early retirement. My friends keep asking me questions like:
  1. How do I feel for the past one year? 
  2. Do I feel bored? 
  3. How do I spend my ample time? 

Monday, October 21, 2019

Do You have to Quit when You are Financially Free?

Last week, I read an article which shares a 32-year-old young retiree goes back to work two years after his retirement. He says the reasons for him to return to work are:

Tuesday, October 15, 2019

逾半国人储蓄难撑3个月 About half of Malaysians' Savings Can't Last for 3 Months

新洲日报2019年10月5日财经版第3页
看到这篇报导,感到些许无奈。原来马来西亚人的储蓄是那么的少。到底问题出在哪儿?

二十几年前,刚大学毕业的我刚开始工作时,薪金也是惨不忍睹。当时的我只是一味的量入而出,不浪费辛苦赚来的钱。有规划的消费,从来没当过月光族。就因为这样,那时的我因工作的关系虽居住在外地,每个月还能储蓄超过七成的收入。虽然低薪但至少还有储蓄。在那同时,我也努力学习投资。在投资领域里我也跌到过。但我从错误中学习让我创建自己的投资模式。之后收入虽然增加,也因为结婚,生子,买屋,买车等等负担下,我还能存下至少四成的收入。控制花费,储蓄,投资与积极的财务管理让我在30岁时达到无债务,40岁时完成财务自主,47岁正式提早退休。因此,我还是真的不是很理解为何当下那么多的马来西亚人的储蓄撑不过三个月。

我认为国人应该留意自个儿的消费模式。当我在外走走时,我不会随意消费。但我观察到那些奶茶店却挤满了年轻人。他们面不改色的花超过马币10块钱来买一杯奶茶。我的眼镜几乎要掉了下来。我可以在普通咖啡店里用不到马币1.60喝到的奶茶,为何那些年轻人要多花超过10倍的数额购买?为何时下的人们愿意花千元换手机而不储蓄?说到底,不就是要跟潮流,要最新最好的,只为了一时的过瘾。其实我们只要在消费时三思,情况肯定会好转,想成为月光族都很难。就从今天开始,好好研究消费模式吧!

This Chinese article is sharing some information about 43% Malaysian's savings can't last for more than 3 months. I was shocked when I saw this report. It turns out that the savings of Malaysians are so small. What is the problem?

Twenty over years ago, when I was a fresh graduate, my salary was terrible. However, I did not waste my hard earned money. Careful consumption planning had make me saved more than 70% of my monthly income. Although my salary was low, I was still able to some some. Meanwhile, I also learned to invest. I failed in  investment as well but I learned from my mistakes. This has make me to create my own investment model. Years after, even though my income increases, burden on marriage, childbirth, buying a house, buying a car, etc. increase, I still able to save at least 40% of my income. Continuous spending control, savings, investment and active financial management have allowed me to reach debt-free at the age of 30, financial free  at the age of 40, and early retirement at the age of 47. Therefore, I still don't really understand why there are so many Malaysians don't even three-month savings.

I believe people should pay attention on their own consumption patterns. When I walk outside, I don't simply spend. But I observe that the tea shop was crowded with young people. They queue to buy a cup of tea that cost more than RM10 while I can have the same at RM 1.60 in a regular coffee shop. Why do those young people spend more than 10 times more for a cup of tea? Why people willing to spend thousands of dollars to change their mobile phones? In short, it is just to follow the trend for the moment of fun. In fact, as long as we think twice before we consume, the situation will definitely be improved. Start today and study the consumption model!

Monday, October 7, 2019

Life of Early Retirement

During chatting, I ask my wife what I have changed after my early retirement. She says I have become friendlier, more smile on face and spend more time with the family. My kids tell me that I have become more patient. My observation to myself is that I walk at slower pace to make myself easy. No work pressure has make me to show my real heart on greeting with my neighbors and friends when meeting each other. I strongly believe that relaxing mindset and feeling happy are keys to remain healthy.

Friday, September 6, 2019

After Thought After Reading "Quit Like a Millionaire"

In early August 2019, when I was browsing a book catalogue of a local famous bookstore, I came across an introduction of the book which as shown over the left hand side. Even though I have achieved early retirement for more than half a year ago, the introduction of the book in the catalogue still make me to buy this book. 

The book author is from China and currently staying in Canada. Her poor family background has caught my attention on how she able to survive in high cost city in Canada. She hated her unpleasant full time job and wanted to quit as soon as she can. She, together with her husband, able to retire at the age of 31 with a net worth of $1 million. The author explained all these at the beginning of the book. In this review, I would like to pick up some points to share and discuss.

Tuesday, August 20, 2019

到底为什么? What is happening?

载自新洲日报投资致富2019年8月19日第24页
看到这标题体,你有什么感想?你是否也面对同样的窘境,甚至有过之而无不及?

就一般而言,我们必须拥有至少三个月的生活费的值作为紧急基金。重点来了。何谓生活费?这必须包括衣食住行的基本需求但不包含不必要的花费。如果能累计到六个月的生活费的值那会更好。但以此文章而言,看来半个月的需要都拿不出来。为什么呢?这只有从你的日常消费来找出个所以然。除非你有记帐的习惯,要不是不可能完成的。

从日常帐目中,寻找那些没必要的消费。小心研究是否可以避免或减少。我的建议是那些适当有意义的消费(如旅游,親子,家庭聚餐等等)可以加以控制。若因为省钱而完全没适当的娱乐,人生也没什么意义了。

再来就是债务重整。在债务方面,你必须务实。尤其必须避免无意义的债务(如信用卡)。在来就是如何尽快解决大债务如房贷。唯一能做的就是能够存多少,尽可能将房贷尽早缴清。我个人就是用这方法将房贷在五年内缴清。在这五年里,我的确过得很清寒。但对我而言,辛苦也不过这五年。而且当时我还年轻,也没家庭负担(还没成家立室)。所以,我建议那些还没结婚成家的年轻人,就让你的年轻吃点苦,以后的日子也会好过些。我就因为在31岁时已将房贷供清,下来我便可以专注在财务累计上,才能成就我今日的财务自由,才能做回我自己。也就是说,时间绝对是你财务成功的朋友。越早开始,成功地几率就越大。

我身边有许多朋友到了我这年龄,都羡慕我能这么早得到自由。我反问他们当我在年轻时为房贷缩衣简食时,他们在干什么?他们说在享受花费带来的快乐。这就是因。现快乐,辛苦就随之而来。中国人有一句话说得好:先苦后甜。我对这句话深信不疑。

现在就别再没方向了,快点设定你的财务目标,划定你的财务路线图,脚踏实地去执行吧!

This Chinese article is talking about an average American can't even take out RM1,680 (US$400) immediately if required. What do you think about this? Are you facing the same dilemma, or even worse?

In general, we must have a minimum of three months of living expenses as an emergency fund. What is the cost of living? This must include the basic needs of food, clothing, housing and transportation but exclude unnecessary expenses. It would be better if you could accumulate the value of living expenses for six months. But in this article, it seems like average American can't even take out half a month's needs. Why? This is only can be found out from your daily consumption. You could only complete this by having the habit of tracking your expenses.

From the daily expenses records, look for those are not necessary items. Carefully study whether they can be avoided or reduced or not. My advice is that appropriate and meaningful consumption (such as travel, family gathering etc.) can be controlled. If there is no proper entertainment for the sack of savings, life will become  meaningless.

Then there is debt restructuring. In terms of debt, you must be pragmatic. In particular, it is necessary to avoid meaningless debts (such as credit cards). It is important to reduce huge debts such as mortgages as soon as possible. The only thing that can be done is fully utilize how much you saved and pay as much as possible for the mortgage as soon as possible. I personally use this method to payoff my mortgage within five years. During this five years period, I lived frugally. But for me, I only suffered in that five years. Further, I was young and I didn't have a family burden (I was yet to get married). Therefore, I suggest young people who have not yet married to work hard for your better future. I have already cleared my mortgage at the age of 31. Therefore, I can focus on the financial accumulation. This is how I achieve my financial freedom today and be my own. In other words, time is definitely a friend of your financial success. The sooner you start, the greater your chances of success.

Many of my friends with similar age are envying me able to be free so early. I asked them what they were doing when I was a young and focusing on clearing my mortgage. They say that they enjoyed the joy of spending. So, this is the cause. There is a Chinese proverb that says work hard now and enjoy later. I am fully convinced on this.

So set your financial goals, draw your financial roadmap, and implement it at no time!

Thursday, August 15, 2019

Half a Year after Early Retirement

For the past one month, I have been busying on sending my father for medical follow up. We had spent lots of time on getting information on his illness and the doctor suggested for an operation after 1.5 months of medication and following up.

Thursday, July 18, 2019

Critical Success Factor #1 on Achieving Financial Freedom: Control Your Expenses

There are two critical success factors to attain early retirement:
  1. Control your expenses
  2. No debt
 Today, I will like to talk more about factor #1.