Life is tougher when you are reaching 40th!! Why? Assuming your life ended 80 years olds; you have walked half of your life? What achievement have you done for yourself and people surrounding you? At this stage normally you will be having stable career path. Or I would rather say, you have not much choice but to continue working for your current company knowing your loyalty towards current company might be well rewarded when you retire. I remember my current company is giving away RADO watch worth more than RM2K in returns of their entire most productive working life.
Rewards after 20 years
Yes this is the rewards that they will get after 20 years of works. Frankly, RM2K divided by 20 years = RM100 per annum which equivalent to RM 0.30 per day!! What a jokes. Looking at your career rewards sometimes will make you vomits blood so better focus on more interesting part.
Around this age, most of the people will start to have bigger expenses mainly on their own personal status and their child education especially pre school, primary, secondary and university levels expenses. Upgrading of personal status especially from smaller homes to bigger homes will be common for man after 40’s. I know there is a lot of people are upgrading their terrace house to semi-d and from semi-d to detached house.
Bigger Home means Bigger Expenses
Every time they upgrade it will be a disaster financial years for them.If you can afford it, why not? The worst is alot of people really can’t afford it. They are trying to have it with borrowed money to impress the rest. Don’t you think its too costly? Personally I totally disagree with this move. If you can recall, the world 3rd richest man still stay in his own house that he stayed 30 years ago and still driving his old car till today even tough his total assets easily exceeding RM 50B which equivalent to our Maybank Bhd market capitalization. Just to share with you one of my good friend who is 40’s years old still live in his 2 ½ storey terrace house he bought 8 years ago and still driving same car for the past 15 years. Today total asset under his management easily exceeding RM10M!! The best part is he still growing!! What about you? Are you still managing asset less than RM0.5M with the intention want to buy another bigger house for your family comfort? Or you want to be like my friend who spend his entire holiday last year at Europe Cruise for 21 days costing him RM200K and yet he still getting his paid together with property appreciation!!
When you reach 40’s, I assume your kids are attending schools either primary or secondary level or even better maybe at final years of university. By questions is, can you afford to send your kids to overseas to finish her studies? Not many can afford it and those who can afford it also not very clever. Why I say so? Sometimes I don’t understand why some parents willingly send their kids overseas just to study simple course like business administrations, marketing, accounting and others businesses course which I think you can learn it better locally at much lower cost. Education in overseas is good but how many student will be above to “earn back” whatever they have spend during their studies at overseas? The answer is…NOT MANY!! Some even worst when they can’t even find a good job locally when they come back due to their pride. I finished my studies at local college with total expenses less than RM60K back in year 2000 and my friend who taking same course with me when to New Zealand. He spends more than RM250K @ 4 times more than me. Today he getting same paid like me or even slightly lower. So the moral behind this story is educating your kids overseas with high expenses not necessarily will bear fruits. Imaging if that time, the parents taking the extra RM190K buying 2 units of Api-Api Apartment with 50% loans facility, today he easily worth RM600K plus steady rental income of RM3200 per month for both units. DON’T ARGUE with me. THIS IS THE FACT!! of course, I don’t mean overseas education is not good but please send your kids overseas for special course like medical, engineering and etc. You don’t need send they so far because of simple course like business administration or marketing. That is really a waste. Street smart is much more important than school smarts. If you don’t believe me, ask you kids bring money and certificates to the counter then ask the cashier see whether the cashier want his money or certifcates!!
Who say adult above 40’s can’t have good reasons to reject wealth accumulation program? Sad to say, some even have better and more solid excuses to tell you. Good thing to laugh which I would like to share with all of you. Last week I met one of my colleagues which I try to encourage her to invest in properties. Do you know what reason she gives to me? She says she is too busy buying vegetables and taking care of her daughter. That why she can’t allocated any times even 5 minutes per day looking for good deals and this already happen for the past 15 years. Do you think it’s a good reason? Think it over… Happy Investing.