Wealth Symbols: These encompass having time, freedom in life choices, the ability to select holidays, the freedom to live anywhere, and dressing however you like.

In many cases, some people are fortunate enough to enjoy both status and wealth symbols. But, for the sake of this thought exercise, let’s imagine you could only choose one. Which would you prefer? In contemporary society, many individuals tend to link their wealth to their status. They spend money on expensive cars, watches, shoes, and other branded items to appear affluent. Does this accurately reflect their actual financial status? In some cases, yes, but certainly not in all. We all know people who attempt to appear “rich” but are drowning in debt and have meager savings.

To achieve Status Symbols in the shortest possible way, all you need to do is earn a certain income and put yourself in debt by overspending on credit cards, taking out loans that you’ll struggle to repay, and having no savings left at the end of the month. This image might be created for public perception, but consider the enormous stress it puts on an individual. Many of us have experienced this struggle in the past or are currently facing it.

On the other hand, to achieve Wealth Symbols, the simplest explanation is reaching financial freedom, which can vary depending on your retirement budget. For some, their retirement budget may be relatively modest, which limits their ability to live in various parts of the world or travel frequently. Nevertheless, achieving financial freedom is a privilege, especially when it affords you the time to do as you please.

For individuals who manage to have both status and wealth, especially those who’ve earned a substantial amount and decided to retire, it’s achievable with a well-thought-out plan. While having both may be ideal for many, it’s important to ask yourself which one is ideal for you if you only have one choice.

Personally, I lean towards the Wealth Symbol. In my current situation, I’m paying off car and house loans, which each require more than RM3,000 per month. I opted for a 5-year car loan to minimize interest, and for my house, I’m making overpayments each month to reduce the repayment duration. Currently, I’m focused on increasing my passive income to the point where it can replace my active income. Several years ago, my active income represented 90% of my earnings, with passive income at just 10%. Today, it’s at a ratio of 70/30, where my active income surpasses my passive income. When I’m able to earn 70% of my current active income through passive income, I’ll be in a position to retire and live a Wealthy Status life. At that point, I should be able to clear some of my debt, such as my car and house loans, which will reduce my monthly financial commitments.