Working professionals, do you really love ONLY your job? 

Haha. Funny question? Not really because you see, beyond just my job, there are a lot of things and people I like and love. Don’t get me wrong, especially my CEO who may be reading this article. I love my job too. However, my job cannot replace my love for my family. It provides me with a salary to feed my family but imagine if I work 7 days a week. I may be earning a lot but I am replacing my time for my loved ones with more money? I am not sure about you but I am one who believe that laughters with my loved ones are still better than a very productive meeting with my favourite boss. Actually, I meant all my bosses. Somehow, after working for nearly 20 years, I have good bosses since my very first job. (WOW!!) From my first job, my Japanese GM (Mr. C.H) now back in Japan to my second and fourth job’s GM (Mr. E.S) and to my 3rd job’s ex Group CEO (Mr. S.M) and my current CEO (Mr. S.S), I love our working partnerships okay.

So, what could we do then, in order to have the best of both worlds? A great boss and a great future? Well, keep working hard, very hard so that all your bosses would love you and would always want you to do more (oops) and they pay you more lah. All your earnings meanwhile, please INVEST lah. First investment? Buy more investment books. Second? Follow the advice of those investment books. Third? Start to share with your friends about investment. Actually, when we do it together, it gets more exciting and we usually are more committed. Since this is kopiandproperty.com, of course my example has to be property investment, right? Do not worry, for stock investment, here’s a great resource to have. DividendMagic.com.my Even if it’s alternative investment that you are looking for, say Bitcoin, here’s one good resource. Ringgitohringgit.com All these are really kind people and they have not yet paid me a single cent to be quoted here. Haha. Not even a latte, yet. Anyway, back to property investment. It’s for our family.

Let me share a very brief example of what a working professional could achieve if he were to just invest into one medium priced property every 10 years. Medium priced as in RM400,000. I assume this working professional earns just RM4,000 per month (until the day he retires?) and saves just RM500 per month, somehow. RM500 x 12 months x 10 years = RM60,000. RM60,000 is enough for 10% downpayment for a RM400,000 home plus minor renovations, lawyer’s fee, stamp duty and basically everything. Do note that I assume this working professional could not save anything HIGHER than 10% and his RM500 savings are unchanged until he retires. Haha. The more we save, the more we have for future.

Over his entire career life of 30 years, he bought just 3 RM400,000 property and he rents out 2 of them and one for his own stay. This saves him rental.  RM1,500 x 12 x 30 years = RM540,000. His RM400,000 home? Well, at 2.5% up per year for the next 30 years, the first home would become RM846,000 when he retires. The second home, at 2.5% up per year for the next 20 years would become RM659,000 when he retires. His last property, bought just 10 years before he retires and goes up the same 2.5% per year would become RM513,000. I know, I know, the interest he paid for the homes are higher than 2.5%, right? Well, I did not calculate the rental he would have gotten for those properties anyway. There’s little need to do some final calculations about how money would shrink etc etc etc. By the time we retire, as a senior manager in some companies, we have 3 homes that is either fully paid for or nearly fully paid for. Still better than just working for salary and saving and saving and saving… right?

I know, there are times the property could not be rented out. PLEASE… buy something that can be rented out. You can already check it out via the property sites or even ask your friendly real estate negotiator friends. Here’s one for Penang. 016xxxxxxxx.  Here’s one for KL.  012 xxxxxxxx.   I know, these calculations are just assumptions. By the way, even that company that you trust do not know how their future orders would be. I think these are conservative assumptions because if we work really hard, there’s no way our bosses would not pay us more or promote us. Totally noted about those higher living expenses debates. Here’s my point. Eating cheaper is still possible, depends on us actually  I know, RM400,000 means we can only get a high-rise unit. Well, anything wrong with high-rise? There’s too many of them? 😛 Here’s my response. I know, for the third property, 30% downpayment is needed and that is RM120,000 instead of RM40,000.

Actually, as soon as we have invested the money into property, we could no longer afford a lot of stuffs. Sometimes it is sad but are we working only for ourselves or also for our loved ones. If it’s for them as well, then think about their future. I am aware of many other forms of ‘investments’ with much higher and faster returns. Unfortunately, I do not know to speed up the whole process. I am just another working professional who still have to clock in and clock out and sometimes have to work even during weekends. At 40, I have 20 more years to go. Ooops. Noted my current CEO, Mr. S.S, I will be in office early on Monday morning. Happy working, saving and investing.

written on 15 Oct 2017

Next suggested article: It’s always best to start investing 5 years ago, Agree?

 

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