Dec 27, 2020

Cory Diary : Wealth Accumulation

Saving is key to wealth accumulation else whatever we earned is spend away. And if we get addicted, we could fall into debt spirals. Therefore to most families, we are often taught to learn to save when young.  Culturally we have been conditioned to save.

However people often do not realize that in order to save we need to earn. To put it simply, how much we earn gives us the needed runway to save. However, to most people like me that being a worker to earn monthly salary, it is the typical process that forms bulk of the earning.

We only have one life. How can we break through from here ?

1. Side hustle : Unless you enjoy doing this not easy. There is no risk to capital as salaried man unless you are defined in item 3. Is a temporary measure to help boost some saving but scaling is tough.

2. Stocks : Risks. You could lose your pants and set you back for years following tips or herds. A place where knowledge and skills are tested out together with lucks and experiences. This is a viable alternative income than doing business oneself.

3. Busines : Mentor or understudy in family business I would think will be great. Outside the bubble, risk of failure is high. Most are not fortunate to have the luxury to be born or work in a family business.

4. Gamble : The fact works against you. How do you think Genting and Marina Bay Sands survived on ?

5. Career : Generally getting a career in MNC or Gov related gives a good boost to your income. To top it off the annual bonus and benefits are much higher. This is a really good place to start.

6. Property : With ABSD and TDSR in force, a lot of cash has been held idle. A new generation of locals with only one property. For living and investment, one probably has to buy one with the largest affordable range and then scale down with the hope of making profit out of it. The alternative will be two private properties under separate names.

Not surprisingly item 5 is something I am most comfortable with. And here's how I got my First Million. Hard work and working smart.

However it took more than 30 years to hit my first million in Net worth considering we have to go through growing up, education, learning and working with starting salary. 

Less than 8 years to hit 2nd. It gets easier with time due to increase earning power and investment allocation. And that's when item 2 and 6 come in for me which are Stocks and Property namely. To do them we need to avoid pitfalls. Is not something we like to experience with, even though some time we may. So always risk mitigated.

Typically I go for things that are more transparent, more accountability and better recourse. I do not believe in hearsay and rather do my homework reading quarterly reports. Trust is cheap. And it took me slightly longer before I got into local property investment.

Whatever we do put health as first priority. This can be mental or physical. Else whatever we earn is for nothing. I have added one that it has to be ethical too.


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