Friday 20 June 2014

You can save $400,000 before 40


Whenever I ask around, how much do you need to be able to be able to slow down in work pace and that you can choose how to live your life and not rushing to work everyday, the answer is always $1 million. I dont know why but it seems that $1 million is the magic number. I mean how many of us, the working class can accumulate $1 million through savings. 
I am sure most of you would have read the news about how a 74 yrs old cleaner was conned of her entire life savings of $400,000. You can read the news from here. This news served as a wake up call, if a 74yrs old cleaner, with not much of a education (my assumptions), is able to amass a huge savings of $400,000, I dont see any reason why most of us cant. In fact most of us should be able to accelerated this amount conservatively by half the time taken. We are much better educated than her, we have more opportunities than her, and our earnings are so many times more than her. This lady reminded me of my Ah ma, she was a very frugal lady. As their generation had gone through so much hardship, they were very thrifty and saved every pennies they could. This is probably one of the traits that most of us would not have, sadly. 


A working couple earning combined income of $7000, if they save $3000 a month, in 12 years time, they will be able to save $432,000. This also means that before you hit 40, you would have half a million of savings, isnt this cool. Do you think this is achievable ?

6 comments:

Createwealth8888 said...

Saving including CPF?

Any housing loan?

Oldman said...

In the e.g? It's just pure saving.

Investopenly said...

I think it is definitely possible but the question is, do you enjoying life (not necessary in a spendthrift way) while saving up the millions? I find that striking balance is still important. As [er one of the popular HK TV series : "人生有几多个十年“? ;-)

Oldman said...

Yes Richard, it's about finding a balance. And enjoying life can be inexpensive too ...

Richard Chu said...

The number can be larger if added on investment gain. Besides, ppl who pursue financial freedom value independence more than materials. Saving is a virtue. Save, invest, and donate. Once a while, indulge a little.

Oldman said...

Yes, it allows you to be in control and gives you the options to do the above, donate and indulge a little.