Case Study 1 - How Poly Lecturer became Millionaire - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




Case Study 1 - How Poly Lecturer became Millionaire

Reply
 
Thread Tools
  #1 (permalink)  
Old 31-12-2007, 05:11 PM
Salary.sg
Guest
 
Posts: n/a
Default Case Study 1 - How Poly Lecturer became Millionaire

This is a story of how a salaried person (and his wife) managed to accumulate a million dollars in cash over just 10 years.

And he did it without playing Toto or 4D, and neither did he dabble in stocks and property.

He started his working life in the private sector. During the Asian financial crisis, he switched to teaching. That was when he started accumulating the million dollars.

As a junior lecturer, he was making close to $5k a month (polytechnics especially like mid-career entrants with a few years' experience and generally match their last drawn pay). With the 13th month bonus and a couple months of performance bonus, this came to about $70k+ in annual pay.

He also taught part-time in SIM. This gave him an additional $10k to $20k every year, depending on how many classes he took.

Over the years, he was promoted twice in salary grade. And his total annual income crossed the $100k mark.

He's now in his forties. In the past 10 years, his income averaged about $100k a year, from both full-time and part-time work.

So, in 10 years, he collected $1 million. In cash.

Now, you ask, what about expenses? Doesn't he pay bills?

Well, his wife is also working, though not making as much. As a manager in a statutory board, she's making $50k+ per annum (averaged over the 10 years). This is more than enough to cover their total spending: utility bills, entertainment, classes for kids, car loan, allowance for parents, medical expenses, insurance premiums, taxes,* and once-a-year overseas vacation. And they pay their housing loan with CPF money.

Had he invested in a condo before the recent property boom, he would have even more money.

He has a million dollars (with help from his wife). How much cash do you have?

See other case studies.

http://www.salary.sg/2007/case-study...e-millionaire/

Reply With Quote
  #2 (permalink)  
Old 16-01-2008, 01:10 AM
Error---
Guest
 
Posts: n/a
Default 751

Don't need to pay tax? CPF?

Reply With Quote
  #3 (permalink)  
Old 21-01-2008, 01:40 AM
Chris---
Guest
 
Posts: n/a
Default 760

The $100K he got is after deducting CPF and taxes? Does it include bonuses?

Reply With Quote
  #4 (permalink)  
Old 22-01-2008, 11:30 PM
admin---
Guest
 
Posts: n/a
Default 763

Chris, it's before CPF and taxes. Bonuses are included.
Reply With Quote
  #5 (permalink)  
Old 23-01-2008, 02:31 PM
JTK---
Guest
 
Posts: n/a
Default 764

Hi guys,
can I make a summary for this case study?

Q: How to make 1 mil in 10 years?
A: You just need to make 100k per year. 100k x 10 = 1 mil already.

Q: Don't have to spend ah?
A: His wife salary will pay for all the expenses.

Alamak... so 100k x 10 = 1 mil already.
Reply With Quote
  #6 (permalink)  
Old 24-01-2008, 04:43 PM
yea---
Guest
 
Posts: n/a
Default 768

the formula is so simple, yet so many working professionals aren't able to save enough to be called a millionaire. but what they have are nice clothes, fast cars, good food and nice photos of their travels.
i guess its a matter of choice.
Reply With Quote

  #7 (permalink)  
Old 02-02-2008, 01:45 PM
David Seah---
Guest
 
Posts: n/a
Default 795

Indeed if this lecturer can be so prudent and hardwork...why cannot for the rest of us for example if we fall into the high income bracket.

In fact, it is very easily achievable I will say if one's spouse can be as understanding as the case study example.
Reply With Quote
  #8 (permalink)  
Old 03-02-2008, 09:46 AM
admin---
Guest
 
Posts: n/a
Default 807

David, indeed. But one doesn't have to ask the wife to pay for all expenses. It's just one way to structure the household finances.
As long as the couple earn a combined income of $150k and save $100k every year, they'll be a millionaire (as a couple) in 10 years.
Reply With Quote
  #9 (permalink)  
Old 03-02-2008, 09:07 PM
jiante---
Guest
 
Posts: n/a
Default 810

Millionaire as a couple is not difficult. Millionaire as an individual is.
Reply With Quote
  #10 (permalink)  
Old 04-02-2008, 06:01 PM
still not hard---
Guest
 
Posts: n/a
Default 818

Still not hard.... if you or the lecturer can save $50k/year for 20 years.
Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Case Study 3 - How Couple got Stuck with Property Salary.sg Investments and Net Worth 16 19-07-2009 04:42 PM
Case Study 6 - Bankrupt and Successful Businesswoman? Salary.sg Income and Jobs 8 17-07-2009 01:08 PM
Case Study 4 - How High-Income Lady Lost $33k in Shares Salary.sg Investments and Net Worth 4 30-06-2008 01:37 PM
Case Study 5 - Shrewd Millionaire Employee Salary.sg Investments and Net Worth 9 18-06-2008 01:46 PM
Case Study 2 - How Engineer made Half Million Salary.sg Investments and Net Worth 4 10-02-2008 11:38 PM

» 30 Recent Threads
Different rank in local banks ( 1 2 3... Last Page)
70 Replies, 134,325 Views
Lawyer Salary ( 1 2 3... Last Page)
10,768 Replies, 3,700,538 Views
Roles in accenture singapore ( 1 2 3... Last Page)
1,193 Replies, 348,480 Views
Compare civil service salary ( 1 2 3... Last Page)
11,662 Replies, 6,638,122 Views
fresh grad seeking a career,but no... ( 1 2 3... Last Page)
56 Replies, 24,331 Views
Compilation of MAs/Analysts Gross... ( 1 2 3... Last Page)
445 Replies, 92,609 Views
Sic a lobang for free money
0 Replies, 33 Views
Retirement Amount - SCMP Artcile
4 Replies, 274 Views
How is life as a doctor in... ( 1 2 3... Last Page)
1,939 Replies, 1,163,976 Views
DBS Graduate Associate Program ( 1 2 3... Last Page)
2,004 Replies, 467,890 Views
How much are you earning per annum? ( 1 2 3... Last Page)
12,209 Replies, 4,069,788 Views
UBS Financial Services Industry... ( 1 2 3... Last Page)
180 Replies, 51,206 Views
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
348 Replies, 160,750 Views
Serious advice on career change...
0 Replies, 142 Views
High Finance Thread ( 1 2 3... Last Page)
208 Replies, 55,990 Views
Career as Teacher ( 1 2 3... Last Page)
3,541 Replies, 2,145,119 Views
Job Application with MOE... ( 1 2 3... Last Page)
298 Replies, 264,657 Views
Asset Management Salary
9 Replies, 479 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
3,026 Replies, 1,383,242 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
5,668 Replies, 1,510,563 Views
How is HTX Associate Programme...
7 Replies, 1,517 Views
Job Offer Advise ( 1 2)
12 Replies, 889 Views
CPF SA Shielding (do this just...
4 Replies, 1,295 Views
Engineer Pay ( 1 2 3... Last Page)
182 Replies, 76,699 Views
DBS tech seed programme ( 1 2 3... Last Page)
448 Replies, 97,065 Views
OCBC Graduate Talent Programme... ( 1 2 3... Last Page)
683 Replies, 197,131 Views
Grab Software Developer Fresh... ( 1 2)
15 Replies, 952 Views
Anyone working in NTU... ( 1 2 3... Last Page)
102 Replies, 107,797 Views
GIC career ( 1 2 3... Last Page)
284 Replies, 399,122 Views
MAS : Mid Career Professionals ( 1 2 3... Last Page)
296 Replies, 187,817 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 02:37 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2