Reader’s Story: Ups and Down, The Journey Towards Financial Security and Retirement

This story comes from a reader who kindly shares his experience in managing his finance and investment. His story represents many Malaysian’s real experience with all levels of financial maturity and income.

My name is David (not real name) and currently working as a salesperson in a health care industry. I am 36 and married with children. In life I have made many ‘silly mistakes’ – serious financial mistakes.

The first time I have my hands on investment was in stock market. I invested blindly and heavily into it until I lost RM100,000. I was enticed into stock trading when one of my friend advocated me into buying stocks. He lent me one of Warren Buffett’s famous book. I am grateful for that book because that was my very first motivational book.

However, I lost RM100K and it was really my hard earned money that I am still trying to recover until today.

Wow! When I tried to recall, that was a stupid move that I made. Yes I did not do much of study on the stocks I purchased. I was 30 and ambitious, and eager to get rich quickly. I bought 2 stocks which were at the very high price and suddenly drop due to the global market crisis in 2007/2008. What made it worse, that I did not sell the stocks quick enough. Of course initially, I hesitated to cut my losses until it was too late.

At that point, I learned that whether you are in business or stock market, you should have your plan. You need to plan ahead of your target and decide when to call it off. This could be done if I faced the fact that I made a mistake earlier. The earlier I admit my mistake the better it should have been.

What I should have done, was to do my research before putting my finger into the stock investment, attend courses, get a bit of education in stock investing, I suppose. In the contrary, without being well-informed I did the opposite of what Warren Buffett’s advice, “When everyone is greedy, you must be scared. When everyone is scared, you must be greedy.” I now find that this is a very useful quote from him that applies in running businesses, stocks, properties or most investments in general.

Having failed in the stock market, has brought my attention to business. Apparently, it was not one business, in fact it was 2 businesses. Hence, my cycle of mistakes began, again!

Without much experience, I confidently jumped into two businesses: a tuition centre, and later a Taiwan Bubble Tea Franchise.The tuition centre was seeing profit, however I had a fall out with my partner so the venture did not work out.

After experiencing profit from the tuition centre, I was drawn into the franchising business model, and it was Taiwan bubble tea franchise. The required investment was RM70,000 which I happily paid. However, it turned out that the franchisor was dishonest and intended to flee with the franchisee fee. Having learnt to cut my losses, I managed to sell my franchise at a minimal loss.

Attempted to recover from the loss, I have gone into employment again. I know being in employment is also risky because I put my future in my employer’s hand. However, being in the employment will keep me and my family afloat at least for now. I do not trust the employment system, hence I tried to venture into many sorts of things and even attended some mentorship programs, which were useless to me.

And now resistant, I may be, I am back in stock market, :). Of course this time, I have done my research and to your surprise I have gotten back my minimum return. I too just recently purchase a house. I am not proud of my journey in creating wealth, as it did not turn out as I hope it would. I am still working for people and feel miserable – thinking ways to live a better life.

All in all, I am trying to be positive, though just like everyone else I can’t help feeling a bit low sometimes. I apologize if I sounded negative, depressing and probably bored you to death. In light of my story, I do believe in second chance, and waiting for something to work in the way that I planned it within these two years.

I am so tired in my current employment that offers me no happiness and freedom of life. I clock myself from 8am to 9pm, so that my manager can snatch the credit away from me. However, back in my mind, I know, I am a winner and in time I will be.

Reminder: This is a story from one of your fellow readers. Please be nice. It takes much courage to put your story out in public for the first time. Remember that the author isn’t a professional writer, and is also learning about money like you are. If you have any comments or suggestions, please post it below and help each other to learn and grow.