Are you one of those people who can survive more than 3 months without your salary? If yes, then you are the only 18% of working adults in Malaysia who are able to do so. Now, how about 6 months? 6%. Thats the figure of all of Malaysia working population can survive without their pay check coming in every month. Congratulations! This data have been collected by Bank Negara’s “Financial Inclusion and Capability Sutdy”. Isn’t it scary to see if you are to lose your job tomorrow, then you probably be begging for food by the 3rd month if you haven’t a new job yet?

There is a few of my friends in KL have being driving Uber or Grabcar.  Some of the early adopters in KL are said to be earning more than 10k per month doing that, but now the figure has drop drastically. In KK, it is said to be very hard to get even half of these figures. With KK being a small city, and every thing is within 10 to 20km its hard to generate enough cash to sustain, for example from Alam Damai to KK airport is only RM10 per trip. To make RM1000, you will need to go 100 trips! Even you drive 26 days out of 30 days its only around RM3k per month, hardly enough for today living standards.

Investing in stocks might be the preferred choice because of the liquidity, ease of transaction and fast returns. Like investing in properties, you have to think long term and not buy and sell everyday, otherwise its difficult to maintain any gains because you are selling too soon. This most likely because you are investing money you can’t lose or afraid to lose, so if you are going into stocks, just remember there is no SURE WIN. I don’t care what your friends  say or friends friends say, don’t invest because of a HOT tip either; A tip may be Hot when it first came out, but by the time the news came to you, its lukewarm at best. haha.

To avoid this situation, we must build up our cash flow, passive income, and the easiest way (for me at least) is to invest in income producing properties. Those properties that generate cash flow straight away, even if there is a bit of negative, in a few years time you can raise the rent and should probably have cash flow positive. In the meantime you are also building equity, while enjoying capital appreciation.

It is a fact of life that things is not going to get cheaper anytime soon. Going forward technology is going to change a lot of the things, like Uber is changing the Taxi industry, Airbnb changing the hotel industry, soon 1 day your job might ceased to exist; the only way is to invest in yourself and build passive income so you don’t depend entirely on your job. Remember, no one is responsible for your rice bowl except you! So make sure you get a few bowls, when one empties there’s others around.

propertykid. Always Learning. Always Investing.