Saving your FIRST RM 100,000

For most young adults who just started working, one of the ideal goals they want to achieve in their lifetime is to have financial freedom. This enables them to “WANT TO WORK” rather than “HAVE TO WORK”.

People normally talk about the importance of saving and investing in achieving financial freedom. Yet, it is not uncommon that majority of the young people tend to end up getting into credit card debts, accumulating more liabilities and in the long run, never achieving their financial goals.

Hence, the first step to achieving financial freedom is of course to SAVE RM 100,000 cash. Yet, most young people brush off the idea as the figure sounds too huge, too scary. It is no surprise that in Malaysia, only 1% of the population have an immediate lump sum of RM 100,000 cash ready.

Of course, it would take more than a simple article such as this to fully explain how one can actually do so, using the system and structure we have put in place in this life insurance industry. But for the simple basics, the following are the foundations of financial planning:

1. Income Protection
The first foundation is to ensure that one has Medical Insurance and Income replacement ready in place. By saving 5% of one’s income set aside for insurance, an immediate estate would be created for you, just in case you need it. This is to simply fulfill a financial need that you can’t do yourself yet.

2. Wealth Accumulation

Once that is done, the next important foundation is to have WEALTH ACCUMULATION.
Wealth accumulation looks into three different types of savings:
Normal Savings
Wealth Accumulation Savings
Retirement

Normal savings is what we put into our bank accounts – money we withdraw for our expenses, perhaps saving for a holiday, or setting aside money for emergency uses.

Wealth Accumulation Savings are meant for the long term, and should be separated from our daily savings account. Money here goes towards creating cash cows, investments, maybe funding a business.

Finally, retirement savings is to enable us to still enjoy the lifestyle we want, when we are no longer able to work. Of course for young adults with no commitments yet, would tend to start off with normal savings, then leading towards wealth accumulation savings, and finally retirement savings.

The important question then is how to accumulate wealth? The two most common ways, is of course, working for money and letting money work for you. When given a choice, most people would say is to ‘let money work for me’. Yet, in order for that to happen, one would of course need to have enough money to let money work for them! In the case of working for money then, one needs to either be employed, or be in business.

Not surprising however, most people end up being employed. Yet, when you ask someone if they prefer working for a boss, or being their own boss… they would always say “I want to be my own boss”. We know business isn’t easy as it requires capital, experience and risk. Hence, it’s no surprise that 80% of all new businesses fail within the first year, and in the next 4 years, 80% of the remaining fails!

Hence, in conclusion, for one to save RM 100,000 one would need to accumulate wealth. For one to accumulate that wealth, they would need to have enough money to work for them. IN order to get “enough money”, either they have to work as an employee and accumulate, or go into a business.

What if there was a business opportunity to accumulate RM 100,000 in the next five years, which didn’t require capital, experience, and risk? Sounds too good to be true?

Well, come see for yourself by attending our Buss Business Success Presentation.