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Retirement In Malaysia: 5 Proven Ways To Stretch Your Retirement Fund

It takes a lot of diligence and dedication to retire early as a self-made millionaire. If you feel you are not accumulating enough to achieve your retirement goals, chances are you are right. Trust your gut feeling and seek a fee-based retirement planning adviser or financial planner to get a second opinion. You will get better peace of mind at the end of the day. Thus, at least you can do something about it before you are off track too far from your retirement roadmap.

So, How Much To Retire Comfortably In Malaysia?

As of 2018, MYR 10,000 per month can get you a comfortable lifestyle without clipping coupons or needing to think twice before deciding whether to eat out or cook a meal yourself at home. You may even be able to throw in local sightseeing trips around Malaysia a few times a year. In short, it is affordable to retire comfortably in Malaysia especially for foreigners.

Early retirees typically begin on the same path by assessing their financial state, cutting back on expenses, and diligently tracking their progress and spending habits. Once retired, they tend to spend even less, focusing on experiences and living a life they love filled with hobbies and travel.

1. Take Inventory of Your Finances

There are TWO things a person needs to do to plan for the future: calculate their net worth and find out how much they spend annually. These two puzzle pieces will help you craft a plan to reach financial independence. It’s tough to reach any destination without knowing your starting point.”

2. Track Your Net Worth and Spending

Early retirees don’t stop at taking stock of their finances. They continue to track their net worth to ensure they’re on the path to financial independence.

Tracking net worth will show you where the opportunities lie to improve your financial picture. It is the cornerstone habit that helps build momentum for all the other things you do to grow your wealth. To stay in line with their net-worth goal, many early retirees also track their spending.

3. Focus On Increasing Your Earnings

Planning for early retirement isn’t just about spending less. It’s also about making more money. Increasing your income is more powerful than cutting back your expenses because you can cut back only so much. The truth is you can’t always cut more from your spending, but you can always earn more.

Aspiring early retirees increase their income by starting a side hustle, retraining for a higher-paying career, increasing their focus in their current career, negotiating for more money, or going to work for themselves.

One of the best ways to do this is to “hide the money from yourself”. It’s a classic strategy in which you save and invest your money before paying other expenses and splurging on wants.

4. Create Passive Income

Many early retirees create passive income through side hustles or investments. Once you have reliable monthly passive income that you can live on, you’ve effectively reached financial independence. Investing income is the ultimate passive income, and this is the main strategy the wealthy use to both get rich and stay rich.

5. When You Do Spend, It Is On Experiences

Many early retirees prefer to spend their money the same way: on experiences.

Things lose value, but early retirees understand that experiences tend to appreciate within our heads.

The financial aspect of things in retirement is important, but retirement fulfillment isn’t just a question of money. The emotional aspect matters too. Among the factors that make for a happier post-career life: maintaining your health, staying active and engaged through occasional work or volunteering, cultivating a circle of friends.

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