Hello Grasshoppa,
How hard is it to build an RM100,000 investment portfolio? After I cleared my debts & began my investment journey, the only thing that was in my mind was to grow my wealth towards retirement. I barely had any deep knowledge towards investment hence starting to invest in the beginning was daunting. In my previous investment journey that I had when I started to work, I only invested to support a friend of mine for her Public Mutual business but I sold it a year or 2 later.
It is a really hard journey that I had when I was trying to clear my debts & I was trying to figure out how can I rebuild everything again. How can I actually be rich & just live an easy life? That was all that was running through my mind so I started to explore high & low by going through the internet & bookstore & I stumbled upon Smart Investor Magazine. I remembered one of the columns in the magazine was featuring a portfolio of a mutual fund called FSMONE (previously known as Fundsupermart). I went on further to do my research on FSMONE website where it used to my source of investment knowledge. After I managed to clear off some of my debts, I immediately invested with them from 1 fund to 4 funds which I later sold off to invest in StashAway. As for now, I still maintain my PRS investment with FSMONE.
How Did I Go From Negative To RM100,000 In Less Than 3 Years?
1. Strict Planning Of My Debt Management, Daily Spending & Investment Allocation
I allocate my monthly salary based on the number of debts I have to pay & my daily spending. Back then, I had to clear at least 4-5 bank debts & I had to live off on a minimum RM20 per day budget. The RM20 would include my daily meals & miscellaneous expenses. The extra money will be kept & be allocated to my investment portfolio. Aside from that, I also allocated extra RM100-RM200 per month for my investment allocation.
2. Increasing My Investment Portfolio Once My Debt Is Cleared Off
Having multiple debts is not easy. Not all debts are due at the same time so I had to adjust my financial from time to time. Whenever I cleared each debt, I will be allocating more money to my investment portfolio. When I finished clearing my debts, I already had a RM10,000 worth of investment portfolio.
3. Always Stick To My Investment Allocation
It took a lot of discipline to get this step done. Sticking to a plan may look easy but executing it consistently really requires effort mentally & emotionally. The only inconvenience that I gave myself during this time was not setting up auto-debit where I have to manually invest each month. At the same time, I was also exploring other investments such as stocks after reading some investment book & blogs.
4. Using My Extra Income To Invest
There were times where I would be getting extra income from my company, side businesses or even income tax refund. This money will be invested back into my investment portfolio. It sounds easy but many people usually use their bonus to spend on luxury items rather than investing their money.
Conclusion :
To sum it up, I am able to keep up to RM34,000 per annum or RM2,840 per month. Is that even possible? It is possible if you are willing to reduce your daily food expenses and other unnecessary expenses. You just have to allocate more money to your investment portfolio. I have done that by reducing my social activities with my friends, eating expensive meals & reducing my cafe sessions. These are the sacrifices that I made to build an RM100,000 investment portfolio.
If you are keen to build an RM100,000 portfolio, my advice to you is to start small. To have you change your lifestyle within 24 hours is not possible but to take small baby steps to build an investment habit is possible. You just have to start as small as you can & slowly build up your investment portfolio. I used to think that it is not possible but the results show otherwise. Honestly, I wasn’t expecting my investment portfolio to reach RM100,000 in such a short time but my discipline made that happen. I am 100% sure you can achieve that as well as long as you stay focus & stay invested.
OSS!
