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Last updated: July 2020

Young Investors

Goodbye My Desk

Monday, 15 April 2013

Do you know what you are going to do after you graduate?

That is one question with implications that many of us do not truly understand until we do graduate.

I just did.

The moment I stepped into this new stage of life – work – I had to accept and overcome the inflation of the basic needs of life. I had to manage my earnings to ensure every cent was spent wisely. And I suddenly realized the latest topics around me are about Money. Money is so important and tight that there is almost no way to avoid it.

I'm not talking about luxury here. Even the basics of life have become an issue.

No Money, No Money, No Money

"Let's go for a holiday…"
"No money!"
"Let's go for a movie…"
"No money!"
"Let's go to XYZ for lunch…"
"No money!"
"Let's go shopping…"
"No money!"

No joke.

I used to have no work. But I had money to survive.

Now I'm working. But I have "No money!"

And if I have "No money!" to enjoy now, how would I achieve those goals and targets I've planned? With just a few thousand ringgit per month (yeah you read right, I said "just"), I don't see myself owning my own home anytime soon.

My home. Suddenly it sounds like some faraway dream.

My Dream, My Action Plan

Inflation of property prices is now at a level where we can't follow the appreciation in house value anymore. A tiny studio apartment now easily carries a RM400,000 price tag. With my less than RM5,000 salary and hefty bills, I don't see the 10% down payment happening soon. Heck, I don't even think a RM5,000 package can do that.

So what can we do? Work hard, work hard, and only word hard? Spend more time working and less time spending?

That is definitely an option. But it's not the way out.

Working is Active Income, income derived from our jobs or services that performed. It is income that we have to work for. And that's the income most people are getting.

Work, money. No work, no money. Get the idea?

Passive Income

Passive Income, on the other hand, does not require work to generate the payment. It is income that "happens" without active effort. This is the kind of income that doesn't need you to drag your feet to work because you can't afford not to.

Passive Income gives you the chance to start "ball rolling" your money if you put in the right effort, and takes no work after that to generate the EXTRA income.

And it really isn't that difficult to generate Passive Income. Stocks, dividends, interests, bonds, or real estate rental, and an ocean of other vehicles for generating Passive Income.

In short, Investments.

Understand the simple concept of investment, and you will discover it really isn't difficult. With a little effort, you'll discover the strategy that best fits your risk appetite and personality.

Risk? Yes. Great risk? Depending on how you invest. That's why we have to learn. Learn to invest wisely and you'll decrease your risk greatly. Yes. There'll always be risk, and I believe everyone accepts that. Just like there's risk in losing our jobs. If you think there's something that's really risk-free, please call me on my personal toll free line, 1800-YEAHRIGHT.

If you're happy to sit at your desk and not take ANY risk, you'll be sitting at your desk for the next 20 years.
- David Rubenstein's

Goodbye, desk.

By the Young Investors Team