Life isn’t same anymore after you leave your university. If you are lucky your parent might support you extra month for your holiday. But if you are unlucky like me, you will start finding the best job suited to your area of expertise to earn for a living the moment you get your education recognition. On average most of the young people are starting their career life at the age of 24. Some are earlier but some are late. I’m pretty lucky started at the age of 20. Yes…I have been working for 10 years. It’s like speed of light. Things happen too fast for me but at least I have something in my hand now. How about you? What you have done to yourself for the past 10 years? Did you getting wealthier? More experience and knowledgeable? Or you are getting worst financially and started blaming surrounding environment? Let me share my view on what have this group has done to themselves financially that might wipe off their entire lifetime earnings.
What is the feeling you have after receiving your first salary from your 30 days of hard work? Are you happy with it? Is that enough? In general, I believe it’s enough as most of your daily expenses are subsidies by your parents. But what is the mistake that people always make at this junction? Buying a car!! Yes this is the biggest mistake that most of the youngest make simply because it’s a ‘depreciating” asset. Have you ever heard people making money buying car? Of course yes especially limited edition like Ferrari, Lamborghini, 911, Bugatti and Classic car.
"Costing few millions"
But have you heard any salon car, Ninja King, or Pajero Car when up in terms of the value after few years driving? NEVER!! You must remember car is only for “transport” and it will not make you richer the moment you drive it. You will only gain if you are buying buses or taxi for commercial purposes. Otherwise, you are losing money every day not counting on your monthly petrol and maintenances yet which easily reach RM500 per month. Including your monthly bank installment say RM600 plus another monthly seasons parking of RM100. Virtually you are spending more than 40% your monthly income just to settle your transport problem (if you are earning RM3000 per month). This is excluding your foods and your entertainment.
Most of the time I feel shy whenever people talk and share their happy holiday overseas. Frankly my passport was not renew since last year as I know I will not go for travelling the next 2 years. I know life is fun and enjoying when you visited other places and with the further help from Air Asia, I believe it does lower our travelling expenses.
"Everyone can fly now"
But it’s still not significant enough to convince myself that why I should spend that much of money for enjoyment. For me at the end of the day, whatever you spend for pleasure is equal to “zero”. Of course some of you might say the experience is different. But frankly how many of you will learn and remember while you travel? I don’t think so. I’m not here to restrict you from travelling but please bear in mind, your hard earn money is getting tough to save day by day. If you don’t capitalize on your current resources for investment, do you think you will still have the resources when you reach above 30’s? Hoping for your boss to increase your paid and bonuses so that you can start your first property investment? Stop dreaming ok… Life is all about you yourself.
Another mistake that the youngster group always make is buying a wrong property for owner occupied. I came across a lot of youngest buying big house for owner occupied. Some even worst spending their entire saving to renovate the whole house and furnish it with furniture but only 2 persons stay inside. Not only that, the wife also taking part renovating the whole kitchen ending up only cooks simply foods like Maggie Mee!!
"Commonly cook at youngster kitchen"
Am I correct? Maybe? But this is what I see from people surrounding me. To own double storey terrace house now in KK easily costing you upfront cash of not less than RM82K or more. Let us analyze below case:
Mr. AA and Mrs. AA are newly married couple and their would like to buy a unit of DSTH at Kingfisher for RM300K. The breakdown of the costing would be:
Down payment 10%: RM30K
Legal Fees + Stamp duty for SPA: RM8K (estimated)
Loan agreement + Stamp Duty: RM4K (estimated)
Minor renovation: RM 20K (some built in cabinet)
Furniture: RM20K (including kitchen and living room)
But there are some problems that this young couple needs to settled before they can own their dream home that is:
1. To earn combined monthly income of not less than RM5K
2. To have upfront cash of RM80K
3. To have extra monthly cash flow of RM300-RM500 for utility bills and general maintenance
4. To get bank approval for 90% financing
I’m not discouraging you all from buying property for owner occupied. But please bought house which is affordable with reasonable monthly commitments and cash outflow. At least this will help you in increasing for other asset acquisition.
My advice to the youngster is that please do not waste your resource especially when you are young. Your hard earn money should work harder than yourself. You are the CEO for yourself. But if you fail to plan for yourself, do you think you going to have enjoying life when more and more commitments comes when you reach above 30’s? For me I always believe in 2/60 rules. Yes this CK rules. Do you want to suffer first 2 years then enjoy the rest of 60 years or you want to enjoy the first 2 year then suffer the rest of 60 years? Make your choices.
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{ 66 comments… read them below or add one }
Excellent write up . For me, i used the “555″ formula whereby you need to suffer 1st 5 years. Firstly, you have to save religiously in the 1st 5 years and maybe at 28 years old, you will get married and buy your first house with a second hand kancil . Then ,you start to enjoy the rest of your 55 years in which your lifespan should reach 78 years assuming you start working at 23 years. But whatever is it,it depends on your parents on how do they raise you up as they are the “king maker” in educating you in your early years on financial planning….
Hi,
The most crucial is the first 2-5 years. Whatever long term debt you commit will determine how is your entire financial destiny. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
As the saying goes, “Discipline is the bridge between goals and accomplishments.” If you don’t plan for yourselves, guess what other ppl will plan for you? Not much i guess, therefore every walks of life need to sacrifice something for the better tomorrow. This is the philosophy of sewing and reaping.
Hi,
I fully agreed. To be wealthy we need to be well dicipline. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
While I was in university and when I was just graduated, I used to fancy of buying luxuries, thinking that I will be able afford them. I was quite ambitious in that sense but I was too rushing and clumsy. My wife too were as ambitious as me. Thus we made many financial mistakes. Now we are 29. But luckily we are stepping into our 30th with all those mistakes undone. It took many sweat and tears to undo all mistakes (thus I wrote a blog to share with others what I’ve learnt). Youngsters (school leavers and greaduates), do not simply jump into big expenses (cars, houses) and businesses (online, offline, network marketing) without thinking deeply and without any careful planning.
HI,
Its good to know you wake up early. You still got plenty of time do achieve what you want in life. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
i just like to share some of my own thinking after look at Ian kree comment above.
i am a tuition teacher, whenever my students(especially form 5) students they talk about the network marketing, MLM. etc.. i would not discourage them to join..while i just tell them “do not put so much money if you are not thinking that is your future way or life”
to me, i think that experience is better than any advice.
the youngster should go to thus MLM plan so that finally they can awake ” there are no such free lunch in the world”. who know “one of them” can really show the talent there?
One thing i am really agree with Ian, DO NOT SIMPLY JUMP INTO BIG EXPENSES.
one of my friend, who graduate from secondary school at 18 years old. he get his first job at 19 as a tutor and he buy a Myvi car for he own use. as a friends, we all are not supporting him to buy the car as his salary not more than 1000 and he need to go college continue his degree. (his car loan- 700 per month)
guess what, he doing a part time tutor when studying in a college. he told us he is suffering in paying the loan but he is OK because he think that it is a good way as he is not wasting the money in luxuries.
As he doing well in his tutor job, he get a lot of students and income.
last year he had bought an apartment in kk which cost around 180k. he had totally suprise all of us(friends).
last, i would like to encourage all the youngsters should dare to take the risk if you have the attitude in manage your financial as my friend above.
Hi Eric,
I’m not against MLM. In fact, I’ve learnt many things from MLM which I used in my own business e.g. name listing, setting appointment, FAQ preparations, doing proper table talks, goal settings, leadership and so on. You have to try it to learn it!
Read my word carefully “…do not simply jump into big expenses … and businesses (…network marketing) without thinking …”. What I mean is; join MLM but do not simply invest too big without thinking deeply. There are many MLMs in Malaysia which encourage members to invest big, lump sump, to jump certain ranks i.e. buy some tens thousand ringgit products and to be automatically promoted to ‘Diamond’ or ‘Baron’ rank or etc. Well, I did this mistake once and I regret it (but I don’t blame anyone). And I also know few MLMs which require prospective members to buy thousand ringgit worth of product and few tens ringgit membership fee to join them.
Like I said, do not simply jump into big businesses (e.g. MLM) without thinking deeply and without any careful planning.
Anyway, thank you Eric.
99.999% of MLMs are scams. Only those brainless will join.
HI,
That why they pay you so well right?Nothing is free…remember a famous quoto..If you got free lunch, be prepare for expensive dinner..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi 163.com,
My two cents: I think you went overboard by saying ‘those brainless will join.’ Firstly, I’m not a MLM guy and will never join any. But I know many close friends who are now enjoying their lives to the sky. One guy who was a technician in a government hospital is now driving BMW and he is now doing it fulltime. Another guy was a driver in a government agency is now doing it fulltime too – making lots of money (5 digits income a month). A woman was an officer in tax department, bought a $1.3m house recently, also doing it part time. My ex-classmate, she’s driving a BMW now, appears many time in MLM magazine.
My advice to those who want to join MLM: just try it but think carefully before making any big investment in it, plan your business well, put your full heart into it, learn all the required skills, and lead your team with sincerity and full responsibility. But you must know when to quit. If you do all these, you are not brainless.
Ian, why are u so obsessed with money? If you are not brainless, you shouldn’t compare one to each other….. Also, in our society, we need good, passionate and responsible government servants who are not greedy.
In response to your “advises”, here what I think: There are no skills to be learned in MLM except trying to brain-wash and cheat people. There is no real B2C/C2C business in MLM but a pyramid scheme where focuses are not put into products but “networking”. I laughed when I saw your comments doing MLM can learn goal-setting, leadership and table talks. That’s all bullshits, one can learn them anyway if they are working in a paid-job in an office.
Why MLMs are not active in developed countires? Because these countries are strictly regulated to tackle MLMs. MLMs will create social problems and at the end of the day, government and tax payers are paying high cost to fix these social ills.
Pls don’t underestimate the intelligence of our youngsters.
Hi 163.com, I think we have to respect InvestKK and do not squable here. As I said, that was my two cents; meaning ignore if your are not agree with it. And I’m not obsessed with money – those who know me personally know this.
CK,
I kind of disagree with you about travelling. Average I travel once every 2 years& I just come back frm Shanghai from a working trip. I watched a TV interview about escalating property prices in Hainan& the experts suggesting government to intervene. I won’t go into the details but what i am saying is u learn something different. Yes not every experience is applicable in M’sia but it opens your eyes to new prespective. If u boardened your life & make it more than yourself, u will feel enriched. CK, with your earnings frm your properties, I’m sure u can take a short trip somewhere near. Reward yourself my friend.
CK,
I kind of disagree with you about travelling. Average I travel once every 2 years& I just come back frm a working trip to Shanghai. I watched a TV interview about escalating property prices in Hainan& the experts suggesting government to intervene. I won’t go into the details but what i am saying is u learn something different. Yes not every experience is applicable in M’sia but it opens your eyes to new prespective. If u boardened your life & make it more than yourself, your life will be enriched. CK, with your earnings frm your properties, I’m sure u can take a short trip somewhere near. Reward yourself my friend. BTW, thanks for your email about property agents in KK.
Ian, a scam is a scam, there shouldn’t be any advices/2 cents/3 cents at all, it’s morally wrong and irresponsible to promote MLMs in any mean. You will mislead people.
163.com, I’ve already said that we have to respect InvestKK.com and stop squabling here. Anyway, are you saying Mr. Robert T. Kiyosaki misleading people (maybe you have read/bought his book)? Are you saying Mr. Donald Trump, who recently started his own MLM company, is misleading people (maybe you watched/favourited The Apperentice)? Dr. M had once publically supporting MLM, is he misleading people? Moreover, I’ve wrote my comment on MLM with words of cautions so that people think carefully before joining any. And lastly, if you do not know what ‘two cents’ is, please refer to Google, type ‘two cents definition’. Come on man, it is a gentleman’s term for ‘take it or leave it.’
Ian, you are a super idiot, who can 100% guarantee famous people don’t mislead others? Madoff misled his investors, George W Bush misled the American on Iraq War, Alan Greenspan, Richard Li, Tony Blair, Dalai Lama and so on and so forth.
You are saying like, “go to do something bad but pls think carefully before doing it”.
I am sorry to CK for being so rude here but I must be responsible to tell what the fact is.
Hi,
Its for us to learn from each other. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Sorry InvestKK …
Sorry 163.com although I haven’t throw sarcastic words to you like “super idiot”, “obsessed” and “brainless” …
Yes, we learn from each other.
HI,
Learning is the process. Sometimes we need to “UNLEARN” whatever we know to grow further. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CKWong/InvestKK,
Yes, I do agree with you. There is no way to fill a full glass. Empty it first then fill it.
Best Wishes,
Ian Kree
Hi guys, i’m pretty naive and still learning, what does MLM stand for please??
Hi,
Multi Level Marketing or commonly known as DIRECT SALES. Happy Investing
You cannot Grow Land..CK Wong & MY DAD
In certain ways, I agree with CK on his views of building up wealth through heavy investments in property. On the other hand, I feel that people shall diverse their hard earn money to treat them in forms of rewards to make them happy. Many people work so hard for their life to find out in later stage that they can’t enjoy it due to health issues, hence their savings will be transferred for medical helps in ways to keep them alive. I am in New York at the moment and somehow seeing how things work open up my view differently. Opportunities lie everywhere, if you look careful enough, you will find some. Remember ‘salaries give you a living, earnings give you a fortune’.
I kind of agree with what you said here..but I would like to put in some of my opinions. Well I agree that we should save money when we first start out in life to invest so we can enjoy life comfortably in the end. But we need to balance our “saving” attitude with an attitude that enjoys life. I recently read a post at kclau.com where he quoted from his friend “Money isn’t yours until you spend it”. Having a lot of money but not actually spending it equals to not having it in the first place. Therefore, a balance is extremely important.
David.
HI,
Its not easy to have balance spending habits and saving. I rather “suffer 5 years then enjoy the rest of the years”. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
hi..CK..
How do u know u would live for another 5 years? life is full of surprise…i reckon “we need to balance our “saving” attitude with an attitude that enjoys life” by David Koh..
Just personal view..anyway ur is calculated risk..haha
HI,
I love investing rather than spending my hard earn money. I think I’m balancing myself already. Anyway if I suddenly passaway today, I believe my family will be financial free. I leave them with asset over liability. What about you?Still want your family to bear your debts? Its your decision. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK,
I really enjoyed reading your pages and have never stumbled upon such informative page like yours. I need your advise perhaps you could help me. I am not very familiar with KK market.
I am planning to buy a second property as an investment at 1Sulaman near 1Borneo. The unit that I am interested in is 900sqft and cost RM235k after discount. Do you think it is a good investment to buy a unit there?
Thanks,
Syikin
HI,
The location, idea, design and prices is reasonable..but I worry more on the completion RISK. Happy Investing.
You cannot Grow Land..CK Wong & MYDAD
CK,
Do you mean that they might not able to complete the condo? I heard the developer is quite reputable – built 1Borneo and Warisan Sq. Could you elaborate more on that please?
In your opinion, where should I invest my money in if I’m looking at a property max of RM250k in KK?
Thanks for your advise!
HI,
Please be advise that, this is only my personal view. I cannot give you all clear answer for all the above issues otherwise I will be sued. Use your own knowledge and do findout more first before you commit into it.. Below RM250K? There is plenty..INdah Court, Lucky Height Condo, Hilltop apartment, Dah Yeh Court and etc. Of course all rental is depend on floor and furniture. Happy Investing.
You cannot Grow Land.. CK Wong & MY DAD
Hi! a developer who give so many extra for free, have to think about. It is on the newspaper. There is no free lunch. Think!
I do have a close relationship with the developer of 1Borneo. The Sultan of Brunai, the official investment group of Brunai is planning to invest in 1Borneo. It is about 30% of their properties.
HI,
1Bornoe is completed, I have no doubt on the possible investment from “rich” investors like Sultan. But its only rumous. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
It is not a rumor, you will soon find out.
I meant to say that you don’t have to worry about investing in 1Sulaman. I already have 4 of its units.
pjoelee,
Which units did you buy? A, B or C?
hi…
Wao…all in one ‘basket’…what make u so confident? Or u are merely too rich?..haha..
Hai, Mr CK. just wanna ask ur opinion..it is worth and correct move to purchase a 2 storry teracce house for RM 375250 in mile 21/2 jalan tuaran( near wisma wanita) ?
HI,
I thought this project is 3 storey or 2 1/2 storey terrace house? I believe its tough for you to convince people to buy residential properties near to cemetry. But this location is good as near to town and all major schools in KK. You buy for own use or investment? Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
hi,
The project has 3 storey and 2 storey, all the unit sold out except the bumi lot. I plan to buy for investment. please kindly advise?
HI,
You can’t have 100% winning factor in property selection. For this location I think you are hitting 80% which already discouting from the location that near to cemetry. So I advice you to “BUY” it. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi,
I’ m considering to buy a property( Apartment or Condo) as an investment but I’ve no experience in this field! My friends advised Beverly Hills. Could you give me some opinion? and it’s current market value?
Hi,
Its all depend on numbers of room, sf, renovation, floor and etc. I can’t give you the value directly. Its ranging from RM60K-RM190K. Its all depend. Happy Investing.
You cannot Grow Land…CK Wong & MY DAD
Hi Ck Wong,
your blog is fantastic good.
let met add up something about younger own property. perhaps I can suggest to thus younger who already have property to rent out some empty room, at least can cover some part of the bank loan as well.
by the way, may I know how and where you may get a sarikei land at below 80% market value? mind share more? sound interesting for me
tq
Ivan
Hi,
The land was acquired by me 6 years ago through my dad (freelance agent). I’m back here this week for holiday and I get to know Sarikei agricultural land is highly on demand due to swiftlet farming. The land value which I bought 6 years ado has appreciate few times over my purcase price. I think it will grow further. Happy Investing.
You cannot Grow Land..CK Wong & MYDAD
May I know where you get the financing for purchase a piece of land at sarikei? IT seem a huge capital investment need. Thanks for sharing.
This is such a great resource that you are providing and you give it away for free. I enjoy seeing websites that understand the value of providing a prime resource for free. I truly loved reading your post. Thanks!
nice post. thanks.
HI,
Greatest achievement in my life is to see what I can do with what I achieve to help the rest of people who wish to help themselves. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
CK,
Like to ask for your opinion again. I am in KK for holiday for the happened to visit Colonade Condo next to QE hospital. I was told that the developer which used to let their units are now slowly releasing their units to the general market. One of their walk up apartment (1433sf) cost about RM400k. The agent said it can be rented out easily to Doctors working in the hospital. What do you think of this place?
HI,
Avoided area as:
1. Its too big unit in terms of size.
2. Higher management fees due to larger units
3. Limited tenant as QE doctors has been seperate into few area ie Kingfisher and Damai.
4. Not easy to resell.
Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
hi…
is this site discuss only about buildings,apartments..etc…
how about land?
HI,
What you wanna to discuss about land? Its a very boring topic but as I always say the best return come from vacant land..Its the games for the ‘rich”..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi all…….
How much in average a 30 years old degree holder should have in his savings/epf/fd etc……………
please share
How much we should have at 30?
HI,
Your annual Income * your age then divide by 10. This is should be your networth today. If you got negative then better watch out. Happy Investing.
CK Wong & MY RiCH DAD
great formula.i feel secured
can we have networth rm100k at 30 in malaysia?
Hi,
Why not? Spend less, earn more and invest when you are young. Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
if we buy a house worths rm150k and we only have savings rm5ok…..is out networth NEGATIVE?
If you have savings RM50k, you buy a property worth RM300k with your savings and loan of RM250k, your net worth is still RM50k (Property worth RM300k less Loan RM250k).
If your property worth appreciated to RM400k, you will have a net worth of RM150k (Property worth RM400k less Loan RM250k).
Pls take note that the above is just a simple illustration without taking into consideration monthly instalment, rental etc.
HI,
Thanks for the example. Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
ok thanks……good example…..