financial independence

What are my current financial plan?

How do I plan my financial spending and what exactly are my goals?

First off, to be considered as financial independent, one would have to save 25 times the annual expenses. – Wikipedia

Which means, if I spend an average of 35,000 a year, I would have to save at least 875,000 in order to be financial independent.

Why 25 years? Studies show that 4% is the safest withdrawal rate every year, which of course provided that you’re not dead after 25 years. Which also means, if I plan to retire at 40, I will only be able to sustain my life until 65. Which is why saving only 25 years worth is definitely not enough, considering inflation rate goes up as well. 

Another question is that, if my take home salary only comes up to 45,000 annually and after deducting my annual expenses of 35,000, I would only have 10,000 left.  Even if I live frugally and able to cut my annual expenses to 30,000. I would only be able to save 15,000 a year, which probably takes me more than 58 years to be able to reach my goal of financial independence.

I’ve been reading a lot on this particular topic, and most articles suggest people to live frugally in order to save up to the amount needed. Which makes total sense, if you cut off the 15 bucks coffee daily, you will be able to save another 5,000. But the problem is how do you know what are you spending on the most?

Here comes the number 1 most suggested and effective way – ALWAYS RECORD YOUR SPENDING. 

I have been recording my spending for almost 2 years now, and it’s really interesting how I am able to see my own spending habits. For me I normally spend the most during Dec – Feb as those are the gifting seasons. Once you’re clear on what you spend on the most, you can start cutting those unnecessary spending too. It is also good to budget your spending while tracking it.


My thoughts are, if you’re having a sum of money sitting in your bank and only getting 0.2% (different rates apply for each bank) interest rates, why not let it roll to a bigger sum instead? Put it in whichever platform that you prefer and let it roll. Be it FD, funds, bonds, whichever you think is suitable for yourself. I’ve managed to grow on average 6% of my initial capital each year. Which means a 50,000 investment will be able to roll to 53,000 in one year. Of course this really differ for each person, some might have a bigger appetite and aim for a higher return, which require more effort and risk tolerance.


In my opinion, I don’t really think that I’m earning enough at the moment. So most of the time I’d just find as many ways as possible to earn more. Most of the time I’d write for other websites and get paid from those websites. I’ve been trying out ways to earn more, and providing service/selling things that you’re best at is definitely the easiest and you’d enjoy doing it as well!


See, I’ve put the “try” on the sub header because well, I will do my best to give what I can in return to my family. What’s all the fun with the money you have when the people around you aren’t?

So that’s what I’m currently practicing in my daily life in terms of financial side. Do share what are your plans are in terms of managing your financial! 🙂

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