Readers who have
been following this blog probably know about my frugal behavior in spending
money. Even though I come from a well to do family, I am still living a life
below my mean. I believe in creating my own personal wealth of my own since I
want to feel its challenge.
It has been almost seven years since I moved back to Jakarta,
Indonesia, and working in my dad’s company. I started with a decent salary
since working for him; however, I have not received a single raise yet. I am
not complaining about it since I am only working part-time for him. In fact, I
believe I am more of a freelancer in the company but still receive a monthly
wage.
I am really fortunate and blessed to have this kind of privilege
since many people out there don’t have a job. Even though my wage is quite low
if comparing it with workers from the United States, my monthly wage is
considered pretty good in my country.
Since the first day I start working with my dad, I have been
very conservative with the way I spend my income. I was living very frugally back
then to save up 80% of my monthly wage. However, I am now saving about 60% of
my monthly wage and spending 40% of it for everyday use.
Many people are confused about why I am living frugally, even
when I am considered wealthy. I have many friends who complain about my
spending habit and think that I am overdoing it. In this article, I am going to explain why I am living below my
mean. Living a life unlike many others, will eventually result in me to having
a life without any financial worries in the future. I hope the things I am
doing can make my parents proud of me.
Prove
to My Parents.
This is the prime reason why I am doing all the things I’m doing now. I could simply live a lavish lifestyle with the money my dad has. However, I don’t feel the challenge of achieving that. What my dad has is not something I work for. I believe in doing and creating something on my own. I want to make my dad and mom proud of me for doing something.
I believe my parents have raised my brother and me properly.
Yes, they can be strict sometimes, and it can be annoying. However, if my dad
had spoiled my brother or me, we won’t be who we are today. I feel that because
my dad is strict about giving money away to us makes me the person I am today.
I probably will not learn to invest in the stock market if I was simply handed
free money from my dad all the time. I will not feel the need to do something
to achieve the things I want in life.
Being able to work on something and achieve something by myself
gives me the pleasure of happiness. I like the feeling of building my personal
wealth on my own. It feels really great! It makes me feel I have a purpose in
life. I felt that if my dad has been too generous to me when it comes down to
money, I probably would not feel any happier.
I want to challenge my parents that I can achieve success on my
own. This gives me a purpose in life. It’s like having a mission of my own that
I need to pursue. I am still working on how I can achieve the financial goal I
wanted. It will take some time, but I believe if I keep working on it, I can
somehow be closer to the goal. If you readers are interested in learning about
my plan to achieve financial freedom, I have written
an article about it.
Even though I am receiving a monthly salary for almost doing nothing in the company, I want to use it to create something great with it. I do not want to use the money I received recklessly and being financially irresponsible. I know it’s still considered cheating since I am receiving a monthly salary for almost no work at all, but if you actually read the article about my plan to retire wealthy, you readers can understand what I have in mind. I will keep trying to create value for myself even though the chances of it being successful are really slim. Doing what I do now, like saving and investing, can make my parents proud of me. This means a lot more than just money to me. It makes me feel that my life has a purpose.
This is the prime reason why I am doing all the things I’m doing now. I could simply live a lavish lifestyle with the money my dad has. However, I don’t feel the challenge of achieving that. What my dad has is not something I work for. I believe in doing and creating something on my own. I want to make my dad and mom proud of me for doing something.
Even though I am receiving a monthly salary for almost doing nothing in the company, I want to use it to create something great with it. I do not want to use the money I received recklessly and being financially irresponsible. I know it’s still considered cheating since I am receiving a monthly salary for almost no work at all, but if you actually read the article about my plan to retire wealthy, you readers can understand what I have in mind. I will keep trying to create value for myself even though the chances of it being successful are really slim. Doing what I do now, like saving and investing, can make my parents proud of me. This means a lot more than just money to me. It makes me feel that my life has a purpose.
The second reason why I am living below my mean is that I want to invest more of my money when I’m still young. You, readers, are probably confused about why I want to invest more when I’m still young. Starting investing early in life can result from having compound interest work best. Being able to invest more now can result in massive wealth in the future. I want compound interest to work for me when I am still young.
Investing early in life can have compound interest work best for you. I have written an article about the power of compound interest and why you should invest early. Basically, by me, investing now can result in more significant compared to investing later on. I do not want to procrastinate to achieve my financial goal. This is why I am investing most of my monthly income religiously.
You readers are still probably debating as to why I’m doing this now. However, I want to share my reason so that you guys will understand. I believe that great results require scarification. You cannot reach a certain goal if you are not putting work into it.
I am already a millionaire at the age of thirty if I combine my Indonesian and United States stock portfolios. However, I am planning to keep doing this till I am the age of 45. That will be in the year 2035, and it’s about 14 more years to go. I calculated that if I keep up with being consistent in saving and investing the same amount now, I can be very wealthy in 2035.
What Am I Going to Do Once I Reached that Financial Goal?
I still have another 14 years to go before I decide to enjoy the fruit I have planted since the beginning of working with my dad. If I reach the financial goal I am planning now, I plan to live more comfortably. I probably increase my monthly budget to about $10,000 a month if I hit $7,000,000 net worth in 2035.
Even considering inflation, I still believe that a $10,000 monthly budget is a handsome amount of money 14 years from now. I will use the remaining sum of money to be invested in the portfolio to keep building wealth.
This is another strong reason I should live below my mean now and consistently invest most of my income. I believe as we get older, we will have more responsibilities. I am currently still single right now; however, I will have a family of my own in the future. I am very positive that once I have a family of my own, I will have more responsibilities. I will need money to keep my family survive.
I hope this article helps you explain why I am living below my mean despite the wealth I have now. I believe I want to sacrifice a little bit more before enjoying the result I worked for. Most importantly, I want to prove to my parents that I can achieve something in my life. I do not want to live a life where the money is just simply given by my dad. I want actually to work and do something to achieve that. Moreover, I want to make sure I am financially stable when I have my own family.
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