Financially Independent By The Age of 40

Posted by Kris | Thursday, July 28, 2011 | | 6 comments »

I never really take notice of the tagline used by fellow blogger & engineer, ChampDog until today... 

" To be financially independant by the age of 40"

Now I been thinking hard on how to achieve it since I am just a normal employee aka working for someone else. Day in day out working hard, which i don't think can make me a millionaire or at least financially independent when I reach retirement age. These days having a RM1 million is not enough to close shop and retire early with the rising cost of living. Everything is rising.. Only your salary will not increase dramatically to cope.

People say that breaking the middle income trap is hard. I guess we just need to break out of the comfort zone and strive to reach a higher echelon by doing things different. 

"If you do the same thing day in and day out, you cannot expect it to produce a different result"

What are you thoughts on how to achieve "financial independant by the age of 40? "

- Is it through investment route like what ChampDog is doing? 
- Business?
- Buying lottery?
- Or marrying a rich spouse :P haha


  1. ChampDog // 2:34 PM  

    I guess you get this tagline from my twitter?

    In fact, I talked about this in 2007 and I"m not sure if you have read it. Here is the article: 10 years retirment plan is possible.

    This article basically gives you some senses of how much money that you really need for your retirement. :D Let me know what you think and hope that is helpful.

    P/S: Btw, sorry about the link - if you're not okay, you can remove this comment entirely.

  2. Kris // 6:41 PM  

    Haha..i think i saw your tagline a few years ago.suddenly not there in your blog..only your twitter.

    From your post, Item 1 & 4 is beyond our control.

    So zooming on item 2 & 3.

    2.My Income continue to grow with at least 7% (Wah, not sure whether average salary-man's salary grows at that rate yearly for 10 years. It will get stagnant as you career peaked, unless you get a sudden jump due to big promotions, etc)

    3.My Investments return have at least 8% (can be achieve-able with careful planing)

    Last item: Make sure your spouse can contribute & cooperate into the financial freedom plan :P Nowadays, husband and wife need to be working to make end meets.

  3. ChampDog // 6:58 PM  

    So, always have the make sure your career is not stagnant. When it happens, probably it is time to change.

    Good one about the last item. Talk is always easier. Always need to invest some times to let your the other half to understand certain things. Having a same goal still fine but what if having a different style & strategy? :)

  4. Mt. // 11:37 PM  

    do you know the beggar on the street has been financially independent for more than 8 years now ? He doesn't need a single cent to get by and he doesn't really mind at all ...

    So bill gates is financially independent so is billy the beggar on the street.

    I am sure one can find his own balance in between that 2 extremes.

  5. ChampDog // 10:53 PM  

    Hahaha... good analogy!

  6. Kris // 11:03 PM  

    You should have said a madman. Not a begger; which a begger still need to beg for money for his financial freedom.