Case Study 5 - Shrewd Millionaire Employee

A reader called "whizzard" generously shares his experience in getting rich.

"I was pretty careful in the way I spent money and diverted much of what I had left over into investments ... My friends were having a ball, wining, dining and holidaying"

Read his story here. Thanks, whizzard!

[Edit: for more words of wisdom from whizzard, see his other comments here, here and here.]

If you would like to share your experience, please feel free to submit a comment or email me.

See other case studies.

http://www.salary.sg/2008/case-study...aire-employee/

I really don't get people who spend beyond their means. I know a lot of people like this. When I talk to them, they say, "Of course you can save, you earn so much!"
But then I could save about 1500 while I was earning 3000 (take home pay 2400) many years ago. Even after paying my rent.
I still take the MRT and bus these days, taxi when needed. Many of my friends earning less than half of what I earn already have cars. On installments.
Many of them eat at 100+bucks/pax restaurants regularly. I'm happy with bringing my loved ones to Sakae Sushi or Din Tai Fung.
Many of them saves for a few months then burn it all away on a 14-day Europe vacation or whatever. I'm happy with going to Thailand or Bali at most twice a year--food there is much better (and cheaper!) than in Europe anyway.
My point is, saving up is not that hard. Right now I save/invest almost as much as what my entire salary was a few years ago. Much harder is to increase your income radically. Because just by saving up, sure, people can become millionaires relatively easily with a reasonable pay and careful investment decisions.
It's a question of how fast? Do you prefer to be millionaires in your 40s or 60s? How about being one in your 30s?

you only live once...

And even if you're a millionaire, it's probably not enough to survive comfortably without working

Enough la. You have 5 million in the bank, with 3% return, that's 150k/year. 12.5k/month. Even if you have 2 kids, that's comfy enough already.

inflation will eat away your capital..

though having said that 5m is prob enough. but having 1m is hardly enough to retire...

When I commented that earning $3k a month is not alot of money, many people flame me and say I am arrogant and attitude. Ask me not to post any more comments. Well, then why 1 million dollars CASH is not enough? 3% return is very conservative. About 6% to 8% return is very acheivable. That makes it $60k to $80k a year passive income. Beats $36k a year earned income.

To howcome,
you can save about $3k a month, thats pretty good!

Anyway think I don't post anymore. Get flame again for nothing. Cheers!

eh, don't stop lah, no arrogance and no attitude boring leh
Anyway I don't save 3k/month. That was my salary many years ago. I save as much as my salary a few years ago only, not so many years ago...

Howcome,

That's good for you. Seems like you are a disciplined saver. I save about $3k to $5k a month, recently less because prices are going up for almost everything, so I spend and buy alot recently. The product that you want to buy may increase price as soon as tomorrow. Somemore malaysia increase petrol price, better buy more now, don't wait. Sure 100% increase price.

Btw don't intend to comment so frequently, cos sometimes the truth hurts and people cannot take the truth straight in the face. Kena rap for nothing. $$ is getting smaller by the day, $3k a month pay is really nothing. Cheers!

i guess it's a matter of striking a balance. As long as you set aside a portion of your savings every month for your vacation (or any other thing you term as luxury or lifestyle cost), i don't think Europe or Bali matters. For eg. you may take x months to save for you to go Bali but x+y months for you to go Europe.