Is the only source of income drawn from your salary? Do you live paycheck-to-paycheck?
Read on about Ah Huat’s story – an average, freshly-graduated degree-holder.
Ah Huat, 23, graduated with a degree in Business Management and works as a management trainee in the Bank of Whatchamacallit situated near where he lives, in Shah Alam for a salary of RM 2,500.00 per month.
He calculated his estimated monthly expenses as follows to help him plan for his future:
RM 370 leftover savings was not enough for Ah Huat as he had to be prepared for emergencies as well as make plans for his future.
He decided to take up a freelancing job as a tutor to earn more. He charges his students RM 80 per hour, teaching Mathematics two times a week from 8pm-9pm. He has three students. That adds up to RM 1,920 extra pocket money a month, and a whopping RM 2,290 to save up!
With that extra RM 2,290, Ah Huat puts aside RM 1,000 for emergencies, and the remaining RM 1, 290 is used to invest because he believes that investments, whilst there are risks to it, are the only way to beat inflation.
He researches on the stock market and cryptocurrencies and invests. He experienced highs and lows but with careful investing, within a year, he managed to make an extra profit of RM 4,500. It may not seem a lot for 12 months but nobody would ever say no to extra money!
This is just the beginning for Ah Huat. As he works up the ranks and gets increment at his job, his income will increase, and with increased income, he will have more to save, more to invest, more to spend.
Read our previous article to find out Why Trading isn’t Working Out For You
Start your trading journey at the M+ Online Trading Platform
Disclaimer: This article is for general information only and is not a recommendation, offer or solicitation to buy or sell any investment product. Investments are subject to investment risks. The risk of loss in stock trading can be substantial and you could lose your initial capital. Do seek a licensed broker before you engage in any trading activity.