Last night, I came across an interesting video posted by my friend, KC Lau when I was Facebooking. It’s a simple 5-minute video where KC talks about ‘Money Priority’ and how one shift in it can dramatically impact our financial future. The concept is so easy and is worth taking notes about it. Let me explain.

How do we save money?

Perhaps, for most of us, the equation below sums up how we would manage our finances.

Income – Expenses = Savings

Unconsciously, we’ve made paying bills our priority over saving money. We first pay our mortgages, service our car loans, settle utility bills, grab the latest iPhones, drink Starbucks, shop for new clothes, buy Christmas presents, and go on a holiday.

We spend on just about everything and anything first before working out what is left. Often, particularly to most fresh graduates, it is not much if there is any money left.

What’s the Shift?

Instead of taking care of other people’s financial welfare, we should start taking care of ours first. In other words, let us make ourselves a priority.

Income – Savings = Expenses

Basically, it is the same equation. But, the psychological impact is different as the priority is now to first determine how much money do we want to save. Once it’s decided, then, we would allocate a budget to spend. Naturally, you’ll be empowered to plan ahead and avoid unnecessary spendings in order to achieve your predetermined amount of savings.

The Real Impact

Here’s the difference maker.

Let us say, we have two guys, Mr. A and Mr. B. Presently, both are fellow colleagues of the same company, having the same position, making RM 3,000 a month. Both decided to remain in the company where they’ll receive 5% a year increment in their annual salary.

Both have attended an investment course and acquired the skill of building a stock portfolio that pays out 6% a year in dividend yield. The only difference between the two is:

Mr. A works on ‘Income – Expenses = Savings’.
On average, he manages to save up 10% of his annual salary for investment purposes.

Mr. B works on ‘Income -Savings = Expenses’.
He sets a target to save up to 30% of his annual salary for investment purposes.

How long do they take to invest RM 100,000 to build their stock portfolio?

For Mr. A, it takes 14 years for him to have invested RM 101,150 into his stock portfolio. From which, he would expect RM 6,069 in dividend income a year on the 15th year.

For Mr. B, it takes 7 years for him to have invested RM 104,252 into his stock portfolio. From which, he would expect RM 6,255 in dividend income a year on the 8th year.

The difference is a whopping 7 years.

14 Years Later

Let us say, after 14 years, both Mr. A and Mr. B did remain in the same company and receive the same salary package. They would:

Figures in RM

In Year 15, Mr. A’s dividend income amounts to 8.94% of his annual salary. Meanwhile, Mr. B’s dividend income amounts to 26.82% of his annual salary. The dividend income for Mr. B is like having a 3 months bonus of his annual salary. Obviously, Mr. B is ahead in building wealth and achieving financial freedom compared to Mr. A.

That is how profound the shift in Money Priority is one’s financial future.

How I can Start Building my own RM 100,000 Stock Portfolio?

Here, I would like to share a few tools which you may start with.

Watch KC Lau’s Video on
‘Money Tips #1 – What You Don’t Know about the Priority that can Hurt You?’

Request a Free Template to calculate How Soon You Can Build Your Own RM 100,000 Stock Portfolio adjustable according to your salary, rate of investment, and expected dividend yields.

Copy this Message: RM 100,000 Template

Paste it Here.

Request a Free Copy of KCLau’s Free Money Tips eBook.

This article is contributed by Ian Tai, creator of, a platform to empower Malaysian investors to build winning stock portfolios. You may click here to check out how Ian buy good stocks cheap and sell them when they become expensive. 

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