Can a University Graduate Really Save RM100,000 in 5 years?

University graduates usually will have an income from RM2,000 to RM5,000 in the first 5 years of their working horizon. It is even more if you are a Malaysian working overseas in places such as Hong Kong and Singapore. If you can stay alive with just a mere RM600 PTPTN in University, it is BULLSHIT that you can’t save RM100,000 in 5 years with such salary.

The point is whether you are willing to save those money by temporary lowering your standard of living so you can reap the BIG reward in the future. And on whether you understand how much your RM100,000 will be worth 20 years later.

Save the damn RM100,000 in the first 5 years. Live like you are depending on PTPTN for the first 5 years. Then you can do whatever you want to do with your salary after you got your initial capital (car, house, insurance, wife, Sky Bar, Lorenzo, prostitute …).

To make my earlier examples more easy to understand, I’ve asked you to compound only after you have RM100,000. But in real case scenario, you begin to compound the day you start putting money into your capital! If you save RM10,000 for the first year and compound it at 20% for 5 years, it will become RM25,000! So the money you save in early years will enjoy compound gain. So even if you save less at the beginning when your salary is low, the power of compounding is already working for you. And in the late years when your salary is higher, you can save a higher portion of your salary. So RM100,000 is really not that hard!

Savings Plan Example -

Year 1 - RM10,000
Year 2 - RM15,000
Year 3 - RM15,000
Year 4 - RM20,000
Year 5 - RM25,000
Total _- RM85,000

So you saved a total of RM85,000 from your salary in 5 years. But since you already have money saved in the first 2 years (RM25,000), you should be able to invest those money and earn your remaining RM15,000 easily on Year 5. So you will be able to get a minimum of RM100,000. Understand now why car, house, insurance and wife will slow you down?

From ahyap.com