Personal Finance and Investment

(This article was originally drafted in April 2013)

With rising inflation and unofficial inflation, people are getting harder to make end needs. New workforce have difficulty to start their life especially buying a new house. However, many are not aware the economy is getting worse as shown by Cyprus economy crisis. It is a strong signal that the European economy recovery is a false. In fact, there is a huge possibility after Cyprus, Italy and Spain economy will also go down. It was announce yesterday, a major investment in Penang from a Bosch valued for RM2.2 billion has been canceled. It is a telling sign the economy is not getting better.

However, all is not lost. If one is willing to look for information, there are still many locations in Malaysia where the economy is bubbling such as in Johore, Sabah and Selangor. For a lazy and misinform people, being in the right location at the right time give them the better opportunity. But, knowing the exact industry which is getting better is the key for future prosperity.

The government has spent many scheme to improve the life being of the society. However, it is up to the people to chart their own progress. My past experience shows that even if one have a strong income, but lack proper planning, the income is easily wasted.

Having a high income is not necessarily a hundred percent securing your future. It is only a step in the right direction. To grow your wealth, you need to attend extra short courses depending on your interest. No matter what is your interest, a personal financial planning is a must. I am not talking about attending a personal financial planning given by an insurance or trust fund agent. They only want to sell their products. For them, everything is good for investment as long as it is their products. And I am also not talking about short courses conducted by academician in the field. If they are successful and multimillionaire, they don't become an academician in that field anymore!

One must look for people who are willing to impart their experiences. Experience is the best teacher. Based on one's experience, one should know what to read, learn and do. Since I have a full time job, I have decided to focus on property investment. Property investment does not need to deal with human on daily basis. It is only once in a while activities which usually when you want to buy, sell, rent or repair the properties. And many of these activities can be subcontracted to a third party to reduce your hassle.

However, property investment is a misconception. Most people assume, property investment is only for rich people. For me, since I am not rich yet, I have to invest in property! In UTM Skudai, we have one security guard who was previously not an officer. Yet he own more than 20 houses!