Millionaire Employee

Moving Annoucement

2006-05-29T05:44:00.000-07:00

Please note that the following blog has been move to the following location: http://www.victor-fam.com/. Thanks.

Compound Interest - Way to Millionaire

2006-05-20T20:49:00.000-07:00

My first exposure of the possible way to becomes a millionaire employee is through the compound interest. Way backs in years of 1999, I read John Mak's Strategies for the Intelligent Investor and get to know of this concept. John Mak stressed the power of compound interest. He strategized the plan for an employee to becomes a millionaire through ultilizing the effect of compound interest. Compound interest is an amazing feature of money. You can see your money double, or even triple. This is where you get your money working for you, when you get paid interest on interest. It is really a great invention, and one of the best ways to grow your money. An example of compound interest: $1000 invested @ 10% = $1100 $1100 re-invested @ 10% = $1210 $1210 re-invested @ 10% = $1331 John stress that everybody can becomes a millionaire by understand and applying this concept. However, in order to apply this concept effectively, you must learn how to invest. He mentions that the secrets of getting rich using compound interest lies in 2 factors: 1. The Return Rate of Investment: Lets assume you do a one time investment of $1000: The first conclusion is, the higher the return rate of you intestment, the faster your money grows. 2. Length period of Investment: Lets assume you do a one time investment of $1000 with annual return rates of 24%: The second conclusion is, you need to invest long enough for you money to grow. Lets don't forget that the above figure is resulting from just one time investment of $1000. So if you are an employee, you can still become a millionaire by learning how to invest. Lets look at the following examples: You invest $100 in every month and assume that you get an annual return rate of 24% (Inflation rates of 3.1%) If you have notice, the example we use here is only to invest $100 per month which is such a small amount for most us nowadays. If you go to Starbuck Cafe or a restaurant a few times you may have easily spent this $100. Imaging if you can invest $500, $1000, $2000 or more per month, what will be the outcome? I was still a University student when I was expose to this concept. It becomes my first and foremost plan towards the path of millionaire. This concept forms the basic structure of my millioanire employee plan. For me this is definitely not a fast way to get rich. But it is a solid rock plan towards millionaire. After I refine and combine this basic plan with other concepts, I'm sure my dreams to millionaire will happen soon.

Work Ethic VS Free Agent

2006-05-16T06:20:00.000-07:00

Recently I got a better job offer. The offer is good so I tempted to leave. Later when I resign, my current company counter offer me with a better salary. So I told the other company about the offer and I tell them I need some time to re-consider. The other company tell me that they think that I am not ethical considering I have signed the letter offer with them but still thinking of the counter offer. I was thinking about this. How ethical is consider ethical? Nowadays if company need you they will pay you good salary to work for them. Once they don't need you, they will retrench you anytime. Does that mean ethic? There is no such things as job security nowadays. Retrenchment can happens anytime, anywhere. All the while I consider myself as a free agent in the job market. I am selling my expertise and services to my employer where they pay me salary and benefits. I do my best for them. But on the other hand I do my best for myself. I work hard to create my value and I work hard to get better pays. I create value by do more than expectation and increase my responsibility. I am responsible for my own career path and what I will be getting. I'm not sure other people thinks like this but this may be the characteristic of Generation X (1965-1981). According to Glenn Shepard (in his book How to Be the Employee Your Company Can't Live Withtout-18 Ways to Become Indispensable),'Generation X distrusts institutions and feels little loyalty to employers. They see themselves as free agents in the job market and consider it acceptable to change jobs more frequently than previous generations.'

Path to Millionaire

2006-05-15T08:18:00.000-07:00

I believe what ever you want to do, if you want to success, you must have a plan. Your plan does not need to be very thorough in the beginning. But it needs to be something that you are able to start with. The plan will provide you with a sense of direction on where you are heading. It can be a very simple plan, but you have to write it down. The fundamental point is, you need to have something to work with first. When time goes by, you can then refine the plan from time to time to suit the situations. So my plan to become a millionaire employee is currently like this: 1. I will keep my day job as a software professional. This will be my main income. I believe that in order to become a millionaire by working as an employee, you need to have a salary that is high enough. But how high is high? This can be a very subjective. Aziz Ali mentions that you should be earning at not less than RM 2000 per months to aim for this. So if you got less than this figure, then you should seriously consider doing something else or getting another job. It is important that the job that I do bring in decent income for me. And it has to be a job that I love. I will make sure that I continue to learn new skills and acquire knowledge related to my job so that I can continue to be more expert. 2. I will do a part-time job. This will be my second income. There are many jobs that you can do during part-time. Examples are lecturing, multi-level marketing, writing, internet, part-time sales agent, part-time insurans agent. The ideal part-time job is a job that can be expandable and have potential to grow over the times. Take for example part-time job like multi-level-marketing, internet where you may earn not much in the beginning, but the earning can be increase when you put more time and effort over the time. I choose to work on internet business because I can do it at home after work. I like to stay at home. :) I will not sell hard goods on the internet because I don't have time to manage the inventories. I need to travel quite frequently from time to time for my day job. So most likely I will go for digital products because the maintainance is low. As a starting point, I will set up a good content site that can bring some income through affiliates and google adsense kind of ads. I am in the process of working on one. 3. I have been involve a bit in properties and stock market, and I will be continue to put efforts in this two area. Invest in property is a long term things. My strategy is to invest in a few good properties that have high rental yields. I can then rent out the properties to cover my loan installment every months. Of course the rental here have to be able to cover the loan installment. It is not impossible to find such property in Klang Valley if you do your research thorough enough. Stock market is more liquid type of investment, where it is more easy to sell and cash out the money when needed compares to properties. The extra money that I earn from stock market can be use to settle the house loan faster. This way my investment in property and stock market can complement each other well. A good book on this will be 'How You Can Get Rich from the Property and Stock Markets' by Milan Doshi. My two cents: In order to become a millionaire employee, you need to earn enough money, save as much as you can, then invest it wisely.

Financial Independence

2006-05-12T19:10:00.000-07:00

My strategy to become a millionaire is : Financial independence first, then only go for rich. Robert T. Kiyosaki in his book 'Guide to Investing' mentions that wealth is not measure by how much you earn every year. It is measure by how long you can survive when you lose your main income. You can earn 20K every month. But if your expense for every month is also 20K, then you are as good as a person who earns 5K every month and use up all his expense. If you lose your income, you even cannot survive for 1 month. Many people nowadays are in this financial situations. So what if you earn 20K a month. then you spend 10K every months. You put aside 10K in your saving account. After 6 months you will have 60K in your account. Now if something happens to your income, you still have 60K in your saving account. With this 60K, you can survive for another 6 months. Now you got it? Wealth is measure by how long you can survive when you lose your main income. So what about if I take that 60K and do some investment. Yes of course. It will increase your wealth because the investment will bring better returns than in saving account, if you do it properly. Financial independence is important. If I am financially independent, I don't have to worry about my daily expenses. I can do what I love to do. I can focus on creating more wealth.

Why Millionaire Employee?

2006-05-12T08:33:00.000-07:00

Most probaly that you will question me: 'Why do you want to be a millionaire employee? Why not be a millionaire entrepreneur? Wouldn't it be much much faster that way?'. Yes, you are right that the entrepreneur path is much much faster than you work as an employee in earning money. For me, it is a matter of choice. When I make a choice, my first questions always be: 'Who am I? What do I want?'. This is a very important point. You need to know youself well and you need to know what you want. 'Starting a business is not everyone's cup of tea. Not everyone has to necessary qualities to do so. A person needs to have enough knowledge on business - not only the technical aspects (buying and selling) , but also other areas such as marketing, human resource management, and financial management.' - Azizi Ali. Visit http://www.malaysian-entrepreneur.com for article on interview with him. For your information Azizi Ali is a Malaysian author that write the book: The Millionaire In Me - How to Remain an Employee and Still become a Millionaire. I strongly agree with Azizi. Not everybody have what it takes to go into business. You need a lot of skills and knowledge. Passion itself its just not enough. Is your personality suit to become a business man? Are you socialize enough? There are many factors need to be consider. Yes, of course even if you don't have enough skills and knowledge and you don't have the right personality, you can still give a try in business, and who knows you may success because of your strong determination. But how long will that take? How long do you need to refine your personality in order to become competent enough? Another way of speaking, is it worth going for that direction? The answer is, its all depends on you. If you think it is the ultimate path for you, then go for it, the world is yours. But I admit that entrepreneur can earn much much more than an employee. Entrepreneur get more recognition from our society, simply because the hard work involve and the greater contributions. However, some of us still prefer to stay as an employee. As an employee you don't have to worry about everythings. You just need to make sure you are an expert in you area. You can have peaceful sleep every night and you can have time for you family. I am one of them. Does that mean that I do not have a chance to become a millionaire then? Of course not. As Napolean Hill says: Whatever the mind can conceive and believe, it can achieve. Its just the matter of whether you think you want to do it or not. Below are some reasons that I like to stay as an employee: 1. I am a professional in software industry and I will get regular income from my job. 2. I get good benefits from my company. 3. I am a specialist. I can continue to specialise in my area of expertise. 4. I simply love my job. :) Who knows one day I may decide to go into business. But not for now.

Employed Millionaire

2006-05-11T08:36:00.000-07:00

One of the topic that I am particularly interested in is how an employee can manage to become a millionaire. Millionare Employee means that you are a millionaire but yet you still work as an employee. As of today there are many many millioinaire employees out there, yet we do not know they are millionare. I am still learning and researching the process and path of how an employee can become a millionaire. Hopefully after after few years, I can proudly say that I am a millionaire employee. If you are an employee and wanted to become a millionare, stay tuned...