A reader replied my email sharing his success story. I think that what he has achieved is a proof that one can achieve financial freedom in employment.
Although his achievement is something to be proud of, he chose to remain anonymous due to personal reasons.
He worked in a local bank starting as an executive officer and before he left – a working life of 32 years, he was holding a senior manager position.
“I am in my mid fifties and already financially independent (retired) having various streams of passive income. The key to my success is building wealth through savings and investments, and paying off my debts fast.
My first property was a small double storey terrace house although my staff loan entitlement permits me to go for a bigger house worth at least RM300k. Free from having to meet high loan instalments, my surplus income was used to invest in equities. Over time I was able to build a respectable share portfolio as well as acquire other properties.”
When I asked him what are the three most important things he has done that ensure his success, he stated these:
Things that I did right:
- Plan for your retirement early and familiarise with investment/financial issues
- Do not spend on non-essentials as that will greatly increase your savings rate (spend below your means)
- Diversify investments over various asset classes
Things I did not do right initially:
- Speculate instead of invest in the stock market
- Not having a cut-loss limit when buying shares
What do you learn from his sharing?