Jobs are necessity for everyone. Any of you loves your job very much and satisfy with your paid? Your boss really asks you work from 8am to 5pm? Have you ever thought of looking for higher paid job? How much you can save from your salary per month after deduct your daily expenses and all compulsory expenses like car petrol, home loans, car installment, children expenses and etc? I strongly believe majority of the employees are not satisfied with their jobs especially when we talk about their salary. Your employer or even my employer will calculate every dollar they spend which will compute into your job descriptions. So nothing comes free nowadays. That mean you get will get paid for what you work for and of course the more the better just like sales target. It’s a norm that sales job required us to achieved our target every month and if can they will push you to achieve beyond your target. This also happen to me. Sometimes it’s really tiring and pressuring knowing no matter how good you done today it will zeroes by tomorrow morning. I believe you will have same feeling like me if you are in sales line. Looking at myself, when I entered banking industry as senior executive climbing up to assistant manager after 7 years and with total increment of salary around 50% @ 7% per annum really make me sick of receiving such salary.
The Rules of 80/20
The rules 80%/20% really happens to me. So far I have spent more than 80% of my 7 years working life earning 20% of the incomes which I think it’s a worst investment that I ever made. Luckily I have spent the rest of my 20% time earning the rest of my 80% wealth in property.
My wealth building only started end of 2004 when I successfully acquiring first pieces of vacant land. My property ownership continue to increase till today and I hope it will continue to rise as my personal target for this year also has been set. Giving myself a pressure to achieve what I need in life is much better than been pressure by my supervisor to achieve the overall company profit right? Just to share with all of you, few of my rental properties has appreciated so much which enable me to cash out some of them through refinancing and top-up additional loans. Even though I’m running at negative cash flow now, but it’s very marginal and manageable to me. The positive part is that, in total I have cash out more than RM 300K compare to my initial capital invested which is less than RM100K. Yes that more than 300% increase @ 50% per annum (divided by 6 years since 2004). This is excluding my monthly rental income that continues to come in despite economy downturn. I don’t think your employers will not pressure you more during the last economy crisis. Some of you might get pay cut and your hope of getting bonuses is virtually zero. I got mine bonuses every year from my property appreciation. In fact, my wealth grows every second but a bit shaky last week after I decided to sell off one of my condominium to finance my purchase of commercial unit. But at last, I decided to call off my disposal of my condominium as I know the value going to be more due to its location, environment, size, and surrounding development. The appreciation of this condominium is equivalent to more than a year working income for me. Yes more than 1 year working income but I get it without much effort after purchasing this property in 2006 for rental collection.
Dear friend, my job gives me 7% increment per annum while my property give me more than 50% increment per annum!! 20%/80% rules right? Bear in mind, the appreciation equity is only from my rental portfolio excluding my vacant land appreciation and my share investment. If I include in, I think I might as well resign from the banking and focusing more on my property acquisition. Needless to say more as the time will not wait for you. Please start somewhere somehow today and continue acquiring good location properties as time will prove how success you will be 3 years from now.
As I always say, if you purely depend on your working income to built your wealth, until the day you die also you WILL NOT MAKE IT. Please don’t try NOT TO UNDERSTAND WHAT I TOLD YOU TODAY.
Who take care of your rise bowl?
It’s a fact in life we have to take care on our own rise bowl as your employers will definitely not going to take care of you leaving you a comfortable living. You will only realize the scary part after you reach 50 years old and your real nightmare only begin after golden ages of 55 years old. Wake up now knowing early birds will have more worms to eat. Happy Investing.