Thread by @najibfazail

You're financially free when your passive income=expenses.

Meaning that, if your expenses are RM5000 per month, you need to gain RM5000 per month passively.

To give you a clear idea of being financially free. If your expenses are RM5000 ( RM60k per year).

If you put your money in a fixed deposit with a return of 3% per year, you need to have RM2 million.

But the problem here is that, when you have RM2 million, will your monthly expenses be RM5000 per month? 🤔

Most of us tend to increase our commitments when our income increases.

Sebab tu bila kita tengok even orang kaya pun, still work hard sebab nak cover monthly expenses.

Passive income formula through dividend by @DividendGrowth

https://twitter.com/DividendGrowth/status/1400240204699648002?s=19

Actually, tiada resepi rahsia untuk capai financial freedom. It's hard work, savings and invest.

Saya sendiri pun tak yakin yang saya boleh maintain low monthly expenses bila dah ada million dalam account 😅

It's just human being, we tend to spend more when we earn more.

Theoretically memang nampak easy but the reality is hard.

Sama ja konsep bila kita ada RM100, kita aim RM1k. Bila kita ada RM1k, kita aim RM10k.

Bila kita ada RM10k, kita akan aim pulak RM100k...the cycle continue...

Apa yang saya boleh cakap is that jaga portion income tu.

Elakkan commitment more than our mean sampai kena buat loan rapat limit 😢

@mohdkautharr pernah share dalam space hari tu, 8/10 credit card holders gagal bayar their credit cards accordingly.

To conclude, reaching financial freedom is not easy even it's a goal for everyone.

But, berbelanja within our mean is much easier. Practice this first! 💪