Live below my means
Life is fantastic when you received your first paid salary after so many years of parent support. A lot of youngster started their fancy life to convince themselves that they have the right to enjoy all of their salary because of the whole month of hard work and pressure. But this will hurt badly especially when they start to spend on the thing that they don’t “NEED” to impress other people. On average younger people is spending 90% of their income (or more) to maintain their life style. That is excluding economical support from their parent mainly free accommodation, free transport, and free of 2 meals per day.
Save money as much as possible to buy property
Earning money is tough but saving what you have earned is even tougher. But if you would like to have healthy financial life after you are 30, actually you mainly have no choice but to save any many as possible to start your property investment life. I started working at the age of 20 and only save enough to buy my first property at the age of 24!
Avoid luxury holiday
Few local airlines are giving fantastic deal to Malaysian to travel all over the world at very much cheap rate. But if you look at it from financial view, after saving from the travel fare, you still need to pay for the travel expenses like hotel, transport, food and shopping expenses. Just to share my personal “holiday life” with all of you. I started working in year 2000 and my first holiday is four years after that! Life is all talking about “delay gratification”.
Avoid over spend on credit card
Having credit cards is good. At least you don’t need to carry so many cash and its convenience and easy to use. But a lot of youngest using credit cards as their sources money to spend. And for your information, young adult is the easiest to be influence. Just to share with you all about my credit card usage;
1. Insurance payment
2. Petrol expenses
3. Occasional shopping expenses
On average my credit card expenses is below RM1,000 per month and I will make full payment before my due date. Are you practicing the same? I know some of you are not. Let me list out what is your credit card expenses listing;
1. Insurance
2. Petrol expenses
3. Shopping
4. Restaurant
5. Movie
….
20. Bank interest
21. Bank late payment
This can be avoid and it need to be avoid if you would like to have healthy financial life after 30.
Surrounded by good friends / partners
For me, all my surrounding friends are lawyer, valuers, real estate agent, bankers and property owners. You need to be surrounded by all the above people to have better deals on real estate.
Lawyer – give you advise on the deal and the most important discounted legal fees
Valuers – give you the information about the property, potential risk and return of the project.
Real Estate agent – Give you the “Good Deal”
Bankers – Give you the loan facility at the better rate, good margin, and fast approval
Property owner – Sharing of information and experience which can help you to save time & money
Read, gather and get more experience through sharing
My journey on investment started at year 2000 when I was reading “Robert Kiyosaki” books. The book really opens my eyes on how important we need to have financial literacy. From there onwards I keep updated myself by reading and sharing experience with all property owners and friends. From there my knowledge grows tremendously. It’s a fast track to financial freedom.
Above are all secret that I have to earn my first million before I’m 28. I’m gearing myself to achieve first five millions before I’m 33 as I’m confident on it! Furthermore millionaires nowadays can’t help much in giving me better life. I need to be multimillionaires.
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{ 46 comments… read them below or add one }
Cool. I earn my first RM10mil before 33 not from properties but from business.
Tim,
. Anyway congratulation to you. Try conserve some of your money into your asset. Its for your future generation. Cheers..Happy Investing
Business is good. Too bad I’m not experience in doing business
CK Wong
i also had read the book written by Robert Kiyosaki and it give me spirit to keep going learn about financial. and of course your tips also help me gaining knowledge.tq.
Sofia,
Robert Kiyosaki book is the first financial book read. So continue reading. The more you read the better your foresight and experience. Its too cheap gather experience and knowledge through reading. If you think knowledge is expensive, try ignorance. Happy Investing
Ck Wong
Another wonderful blog from a Malaysian, from KK somemore, 28 years old a millionaire already. Wow impressive! I wish I’ve read Robert Kiyosaki’s books much earlier, but hey better now than later right. Thanks for your sharing. This will help me greatly on my road to financial freedom and be a millionaires myself. Cheers..
Dom
Dom,
I’m moving forwards to increase my target to multimillionaires as nothing great about a millions nowadays. The number is still there but the value is depreciating. Let us share, experience and work together for more millions and better life. Happy Investing.
Ck Wong
I am a reader from KCLau. Nice blog you’ve got here. Looks like there is still a long way for me to go and a lot of things i need to learn….
Dawson,
Life is all about learning and appreciating what other people has achieved. Learn more and share among your friend as sharing is the fastest way of learning. Happy Investing.
Ck Wong
Thks for sharing u’r knowledge and experience!
Was introduced to this blog thru KCLau, and it’s really great to have a good blog from KK!
I’ll be book marking it, and look forward to reading more from u!
Good one. Unfortunately for me, after 6 years of hard workings, because of my unwise buying and credit card spending, hurting my financial badly. However, the damages is done, life must go on and still not to late to learn and make good of it.
Tom,
Its never too late. At least you release it now. Take action now. Make more different in your spending and saving. Happy Investing.
Ck Wong
I like your ideas on property, I have some common point with you about property. Sadly, with the age of 24, I just start working! I wish to buy a property as investment in two years time. Is it suitable to buy cost rumah rendah at Sarawak as investment?
MrCoolku,
Its good you release it now rather than when you are 44 years old. So its already a good start for you. Why invest in low cost housing? Please share with me what you know about the project, rental yield, potential, area and etc. Then we discuss further from there. Happy Investing.
Ck Wong
so you are a millionaire before 30???
Are you still working for people or now you are working for yourself?
Yes. I’m 30 this year. I’m still fall into working class while I’m building my passive income. Hope I can get out from this class next 3 to 5 years. Happy Investing.
Ck Wong
Hi CK,
I think how you make your first million before you were 28 is because of you name ‘CK’. Ck stand for ‘Cepat Kaya’ right ? pleas lah admit it !
I hope you don’t mind I crack 1 or 2 jokes here !
happy investing !!! cheers
Ah Fook,
.. Happy Investing.
CK can be alot of thing..I prefer CASH KING
Ck Wong
CKwong,
your comment does not auto emailling us telling there is an update.
I need to manual check each of your post.
Which is not very friendly.
Hi,
The problem has been fix. Thank you for your reminder. Happy Investing.
Ck Wong
Dear CK and friends,
Today I was driving back to my office passing a housing area , I saw a small girl must be around the age of 7 or 8 eating a mango that she pick up from the ground . She doesn’t look local to me (meaning a foreigner) and she should be in school. That looks like her lunch. What about her next meal ?? Your guess is as good as mine.
Here we are talking about how to save, invest and make our millions. I just want to invite all of us to think about this little girl and be really thankfull for what we already have .
Dear All,
Can poverty be solve by giving you more money? NO!!! You will go back to normal life if you don’t educated yourself on how to invest. My dad always teach me to invest and he never give us money to invest. He always say ” If I give you fish to eat now, you will not know how to fish in the future and by teaching you how to fish now that will feed you for life”. So let us share our experience and knowledge here to secure our better future. Happy Investing.
Ck Wong
Hi CK,
So impressed you have became millonaire before 30 yrs old. I am 37 yrs old now, still working in factory as engineer. Time passing by very fast, I am not sure how to move forward to have passive income even I have dream about it 2-3 yrs back. I hope you can provide some advice.
Hi,
Life is tough when you find out your achievement is not at the level where you want. I fully understand it. Please bear in mind your most productive period is almost ending. But there is always a way out as long as your commitment is there.
My advise to you is:
1. Start saving more
2. Cut down major expenses
3. Look out for good property at good location to buy. Not only that make sure the rental yield is high / positive cashflow proeprty
4. And try to “capitalise” on what you already have now to move forwards
If you want me to help you further, I need more information on your current situation. Happy Investing.
Ck Wong
Just was wondering while I read ur blog..how do you strategise in what ur doing ?? Like in investment of properties??
I am just a beginner looking into properties investment. Can teach me a few note..still kinda confuse when i read in books saying buy houses from auction ..do you need to have a lot of cash to do that??
How about the loan part from bank??
How do I convince them in giving me a loan..
Please advice
Serena,
Just for your information, I really can’t teach what I have learned and experienced for the past 8 years. But keep reading my blog as from time to time I will updated my own knowledge and experience here. Meanwhile you have to know all your real estate agent, lawyer, banker and valuers if can. They will lead you to “FAST TRACK” of property market. Anyway buying property need some cash..says about RM30-RM50K..is that alot? As a banker, I always always and always remind customer to “KEEP” fantastic repayment records with any banks in Malaysia. Even credit cards payment as this will show all your repayment “HABITS”. Banks only loves “ON TIME” repayment records shows by you. Happy Investing.
You cannot Grow Land.. Ck Wong & KH Wong
hai ck. i’m impressed with you. i’m 26, consider very late to own a house nowdays. I’m not rich, just start working and have lot of commitment. I’m going to have my own house very soon (waiting banker release loan to the vendor), which I will benefit about RM400 net per month after deduct the repayment. Before I overspend that extra income, better I ask for some advise. What should I do (my next step) to become like you? I project with RM300/m(RM100 maybe for my emergency fund), I will get my 2nd house (maybe same area, same house with same return) at 28. Or should I move forward for bigger house and return? Thanks.
Karnie,
Please continue on what you have done so far. Don’t ever buy big house for owner occupied and trying to convince yourself that you are RIGHT!! No point wasting your investment resources buy something which you don’t need to impress other. You can do that when you have millions dollar in your account. There is 2 rules that you need to follow:
Rule 1 : Live below your means
Rule 2 : Don’t forget rules No. 1
Happy Investing.
You cannot Grow Land.. Ck wong & KH Wong
CKWong August 6, 2009 at 10:11 am
Serena,
Just for your information, I really can’t teach what I have learned and experienced for the past 8 years. But keep reading my blog as from time to time I will updated my own knowledge and experience here. Meanwhile you have to know all your real estate agent, lawyer, banker and valuers if can. They will lead you to “FAST TRACK” of property market. Anyway buying property need some cash..says about RM30-RM50K..is that alot? As a banker, I always always and always remind customer to “KEEP” fantastic repayment records with any banks in Malaysia. Even credit cards payment as this will show all your repayment “HABITS”. Banks only loves “ON TIME” repayment records shows by you. Happy Investing.
You cannot Grow Land.. Ck Wong & KH Wong
Reply
hi ck,
thanks for ur advice, i am 24 this year, just brought an apt for myself few mths ago ard rm 100k. cash wise i dun hav alot but i think sufficient for another properties let say if the property is ard 100k.
still working as and employee in company.
now thinking of growing my wealth.
anyway i enjoy reading ur blog alot.
CK
I believe that you become a millionaire by 28.
But I am quite skeptical if anybody else could do that even if followings all the necessary efforts as you have listed. Please pardon my doubt, as for me one’s wealth is based on net assets discounting all liablities. Owning a house at 24 via loan is different from
“owning” it. We always joke that we work for a bank instead – indeed if you loan, you should consider the interest that you pay the bank.
But if you bought your property using cash – yes sir, that’s your house or condo inside out! Then again how many 24 years old could afford to buy a house or reasonably expensive condo using cash? If you become a millionaire becuase your properties that you purchased at the age of 24 via loan have multiplied in value when you are 28, well why not, you are one in a million as within 4 years in Kuala Lumpur or else where in M’sia that’s quite a rare feat.
If you are a millionaire at 28 because you bought a property via loan and then rent it out, then buy another one, rent it out as well, etc, you may earn passive incomes but to become a millionaire out of that, hmm I don’t know, sorry, I am stretching my brain with some arithematics here.
I have experienced becoming a millionaire within 5 years but not when I was young. It was possible for me within 5 years becuase my avg saving per month was/is quite big. But when I was 24, my salary was a starting salary thus not possible. It would take me many years to accumulate a million no matter how frugal I live at between 24 to 28. Thus how on earth it is possible to become millionaire at 28, then and now, not so simple I think.
Cheers
Hi Ruijugah,
Let me answer your doubt here… After minus all my liabilities my net worth should be exceeding RM2M…but I think this is just beginning for me. Life just get started…My target is to be more than this. Of course life is not going to be easy when I started invest at the age of 24. I start working at the age of 20. It took me 4 years to really accumulate my bullet for my first killing.Maybe I can say I have a better luck than anyone else. The first land I purchase is at RM27K but the following week valuer valued it at RM136K. That is about 5 years ago. Now I think it might easily worth more than RM200K. So you must try to capitalise on whatever resources you have now to invest. I can’t help much beside sharing with you all my experience. Just for you information I’m following my dad hobby only..my dad started buying land early 1970s. Until now he still buying and its become his hobby!! Now its my turn. . Hobby of accumulating land title..Happy Investing.
You cannot Grow Land.. Ck Wong & KH Wong
CK, thank you for sharing, I can see that you are from a family where your dad is a brilliant investor. To be honest, I have not expanded my thinking to land that much, perhaps because I haven’t heard many success stories. The land that you purchased has multplied in value almost 7 times, indeed that is very good deal. I supposed it is much better than buying share – which has ups and downs but the land is only up and up, right? You probably had discovered the land opportunity by mixing with the right people. Now I apreciate your advice that one must know good people, in your land case, they must be realtors or property lawyers or bankers. I agree that mixing with successful people bring more success.
A question, now you are worth RM2m on your own merit at a very young age. How much do you think is enough to be financially independent? This is a question I constantly projected myself too. I always estimate how much per month or year is enough for me to live comfortably. To be honest – a lot! LOL. Thus it is like chasing a running target and quite frustrating….but it is always feel good if the target is achieved first, after which – the rest could be considered as bonus.
I read KC Lau about the fisrt perception of a successful classmate as someone who drives E Class and the less successful would be one who drives middle range Japanese, I supposed Camry or Accord. I think most people think like that, it is why so many latest model E200, 520i are on the roads. One of my neigbours changes car regularly and sometime spotted with 3 of them – BMW coupe, S-350 and the latest one is Porche Cayenne….I don’t how he could afford all those…my question is : do you believe in owning expensive car? If I would to buy a car tommorrow what car do you advise me, assuming money is never enough but not a constraint for me, to buy the car that is. Hope to hear your answer. Thank you. Have a nice day.
Ruijugah,
Perhaps I also don’t when I will stop chasing the money games. Its part of my blood already. I really don’t know how much actually I need.. So please don’t ask me when I stop..Money games is too interesting for me..I will continue acquired more land and hope to become master developer in the future..
Ruijugah,
Car is only “transport” to be..I’m not crazy till ask all my employees ‘my money” to suicide in front of me. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
I am considering a medium-cost (i guess) apartment RM 100k in KL where rental around RM 600.
(a) Considering 100% loan and the rental RM600 and my monthly loan payment is RM600.
(b) Shall I pay more on down-payment and get 80% loan so that my rental is RM600 and monthly loan payment is RM500.
Which of the case is a better case of investment?
Hi Ghee,
If you thinking of continue adding more property into your portfolio, I advise to to take higher margin of finance now. As when you purchase 4th or 5th property bank will slash your margin of finance. At that time you need more downpayment. So capitalise your current borrowing opportunity. Please do it wisely and only invest in calculated risk property. Over leverage might cause you to fall easily. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
Hi CK,
Q1. What are the common risks we are looking at? Any advise on the mistake in properties investment you have made or we shall avoid?
Q2. The unit is on a 99 years leasehold land which already been like 30 years now. Normally regardless of other risk would you consider this property?
Thank you & Regards.
Hi,
Q1. Buy matured residential – easy to be rented out.
Buy below market value – easy to dispose when you are in hurry
Q2. Im not familiar with that area. So in terms of lease its all depend on the crowd of the place and targeted tenant as this will affect your rental income in the future.
Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
I refer to RJ’s comment about liability, if its true that we take 90% loan from the bank, then we are literally “working’ for the bank and making them rich.
My last 3 properties are all 90% loan (and with passive income) and I am no where near the million target (though the total property value is near 1 million). Perhaps when i grow old… or die prematurely.
Hi Jeo,
Having millions dollar portfolio is better than non right? That why you need to keep accumulating and play more with numbers games. If you already have 3 properties thats very good already. Keep repeating your success…definitely you will make it.. Happy Investing.
You cannot Grow Land..CK WOng & KH Wong
Thank you. I am continuing to accumulate good cash flow units. Recently I had attended a mortgage reduction seminar. Frightening to see how the banks manipulate the loan structures. What is your comment about mortgage reduction?
As an investor for long term, do you recommend that we quickly pay off the loan amount or let the monthly rentals do the bank pay-off?
Joe,
I heard that company before. Actually the rules are very simple, if you want to save more interest write into the bank and ask for it. If they don’t reduce it, that mean they are losing money. So what you do next is to refinance away your property. Why you need outsider mortgage consultant to do the job for you and the worst you need to pay them commission? You must remember bank is profit oriented company. Whatever they do, they do it for profit. So nothing is free. The best of course dont borrow. Then you dont need to pay interest at all. Right? Please be fair to bank also.
Joe,
As long term investor, normally I prefer not to pay off my loan. I will continue to leverage my money for my other investment. Borrowing cost is too low now. Why not capitalise on it?But anyway I’m risk taker of course with calculated risk. That why I borrow alot. It might be different case for you. You should design a reccession proof portfolio for yourself. Happy Investing.
You cannot Grow Land.. Ck Wong & KH Wong
Hi CK,
What’s your opinion on young people who invest their time(age) in education rather than to start working at early age to accumulate wealth? Do you feel that higher studies will do good than bad in earning money quickly for investing in future?
What’s your opinion on people who start working at 30 with highest qualifications by means, will they succeed in accumulating wealth and retire early?
Regards,
Harin
Harin,
I dont think so.Many multi millionaires I met is not educated. suprising not even diploma holder. And those highly educated especially doctor, lawyer and professional is highly in debt!! So financial education is important. The time you reach 30, your property next door might have triples. So bear in mind, property price will not wait for you. The moment you go deeper for formal education, your mind might have soliciting for more secure and lower risk portfolio. People including me are trying very hard to “un-learn” not to learn more. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
Harin and CK,
To be fair, I am a PhD holder.
If you ask me if I would trade place with CK, my answer may be a yes.
I spoke to you (ck) before and you are impressive, you do not sounds like one of your age…
Your exposure is great!
Education give you knowledge but rarely financial knowledge which i would say “street survival”…
However, I m not highly in debt tho i have some loan which is in advance payment. CK is rite regarding many professional are in HIGH debt…
I drive the cheapest car and they drive those poshy cars, see the difference?
Hi,
Formal education is only the first stage in wealth building. All of you should agreed with me. Street smart is what we need in today world and not to forget nothing is more important than live our life below our means. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK..
Nice info sharing here..I`ve read all the comments..
TQ Bro.
PG
pgcare.blogspot.com
Dear CK ,
Education is good but practical financial knowledge will save you a lot of troubles though not all.
High pay job is a killer . People always think they can always earn that high pay and can spend them all thus end up with lots of bad debts.
I also believe that one need not have to live below your means. If there’s something that i want , I will find ways to pay for it withour hurting my usual budget or cash flow. And difinitely not credit card or borrowed money.
I bought my first bicycle with pocket money that come from the job that i did during my school holiday when i was in form 1. So the point is If i said i must live below my means I would not have owned that bicycle. That was my first and last bicycle I own and it had served me well for many years.
Azlan