Money = Freedom

Had breakfast with @enjiliew and her mum. Moment like that comes pretty precious to me as most of the time we are out there to fight for our freedom. Looking back, it is not easy to away from home, as in hometown and start building new circle of network. However, to me it is now or never. Being at the 20s (near to 30 soon) and still have very minimal commitment so far, I can put a lot of stake at trying and failing. Plus, I have always wanted to pursue entrepreneurship, which I think 24/7 work that I could design and structure into the lifestyle I love, that is like a heaven to me. Knowing that the path requires immense sacrifices but at the end of the road, I could achieve a sort of freedom.

Listening to Mr. Wonderful (Kevin O Leary) from Shark Tank, money to him is freedom. With an approximate 5 million USD in your account, it would mean that we never have to worry on our life ever again and able to do anything I want (of course, with rational way of spending). He mentioned that the first million was hard and to 5 million was hell too. But to 10 million will be slightly easy and to the next 50 million will be even more easier. When money accumulated at a certain level, it creates a momentum that allows us to do things we never able to do and accelerate things. Growth rate will become exponentially faster and this would then turn into positive cycle whereby our wealth will be like a snow ball, rolling and getting larger by time. Thus, my aim is to double my wealth every year and to hit that sweet spot of 5 million USD or is it possible to stay at MYR? Haha, anyway, 5 million MYR would be a good goal for now.

What I could do with 5 million? Thinking of its annual interests itself would amount at around 150k per year. This would convert to 12.5k per month. Like how Mr Wonderful put it, only spend the interest and never the principal. I would like to take this as my golden rule for finance management as well. Of course, this is for investment and not for situation which is urgent. With such amount, 12.5k would fetch me a nice collection of property with an amount of 2 million plus in total value. Imagine that the 2 million plus property would then generate cash flow that could meet the 12.5k of interest. That would add back to my principal and this would become a great wealth generation mechanism. To me, it sounds crazy but definitely doable. As long as I have the right assets that allows me to gain this wealth generation, that would put me in that position.

Well, there are a lot of situation that I imagined about when I hit the first pot of money. I would set myself at 1 mil for the very first 5 years. How I gonna reach there? It will need a clear and strict action plan that I would need to construct. Can’t wait to see how it would turn out.