Monday, May 08, 2006

What is Savings for?!

This is a short post. Basically it's this. Most of us, when we finish school and start working, we're already in debt, either on study loan or on car loan, and some even with housing loan.

Anyway, one day in the future, we can manage the debt very well and we even have RM10,000 in Savings. And then we continue working, and then we have RM20,000 in the bank. Still we continue working, and then we have RM50,000 in the bank. And we continue working and then we even reached RM100,000 in the bank.

The question is this. At what amount of savings will you really quit your job and start up your own cash machine (ie business, investment, etc)?? Will you really end up quitting your job and risk using RM50k for a business, or would you still continue working where you are even if you have RM200k in the bank, of course placed in various 'investment vehicles'?

At what amount of money that you own that's easily liquidable (ie bonds, stocks, unit trusts) will you actually dare to tell your boss bye bye, and then leave for riskier but brighter future? Or will fear grip you, hold you and tell you to just let the money build up, continue working forever?? Because should you lose that 50k in a 1 year business, and then heads back to employment, they might not pay you as much as you have been paid.

Seriously, savings for investment should have its limit, and then it should be savings for a better life. What's your savings limit to get you out of your job?

3 comments:

Anonymous said...

At the rate I'm going, I don't think I'll ever quit my job. i'm just too chicken s**t scared of quitting and losing that sure thing $$ at the end of the month. Until one day (which i hope never) they decide, eh, we don't need this fellow, let's kick her out!

Anonymous said...

Oopps forgot to answer pulak, I think I'll take the risk when I have at least about my two years spending worth of moolah and of course no credit card outstanding balance, and car and house all secured and paid for. It's the debt that ties you down!

Anonymous said...

well, i believe as long as you've save enough money for your car and house loans (at least 1 year's worth of debt), it's not wrong to try come out to the world w/o a secured monthly $$$. That's the difference between an employee and an employer. Comfort zone is a very bad place to be as you tend to rely on what you already have but will it able to give you more than that when you are at your 40s or 50s? How many people you know off that are well paid and taken care off when they retire when in his / her lifetime only been an employee? When you are young, if your business/ideas failed, at least you have the time to make adjustment or back to where you started, an employee, till you have enought $$ to start another (or similar but with better planout system) business/idea. But when you are already 40s, with at least 2 - 3 kids to take care off, you will not have enough time to fail anymore and you might even made your family suffer with you. Life is like an investment, if you take low risk, your return be very little (that's why you can always find people complaint about not enough $$$) but of course the higher risk you take, there's a 50-50 chance you get but if you never try, you'll never know (which brings to life is all about learning). So, if you want to succeed in life, learn from Bill Gates, he failed thousand times before he is what he is today!!..tat's my point of view lah.... - Cindy