Quote:
Originally Posted by 2M in assets at 35
it's simple.
Step 1: work hard and smart to get a higher income (at least 10K per month) so you have a good cash flow
Step 2: live frugally and build up savings (aim for at least 80K per year)
Step 3: use your war chest (min 500K) to buy property or stocks when there is a recession (example in 2003 after sars and 2009 after AFC).
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Thanks for the advice, it makes sense. The tough part for me is to increase my income streams, to more than just the monthly 5k pay. The thought of being so dependant on my employer and the measly increments, and obviously never going to retire comfortably on pay alone, makes me v uncomfortable. Sadly I only woke up to this reality in 2009.
To increase income, I tried forex and stocks with no success, lost money instead! Thought about having an internet business on the side, but can't think of a product or service that I am interested to sell. Currently still working on my trading psychology to become better at forex and stocks.
Yes, definitely I need to be more frugal. Currently my spouse and I save 30% of our income, we should be able to do better, although it would be a challenge when the kids come, and if I buy a car its goodbye to my savings
If I can save up a few hundred thousand when the next property and stocks crash come, this is my opportunity to make it, and become like some of you, self made millionaires! Till then I will continue working at it and keeping my goal in mind.