Financial Freedom Update: February 2017

Financial Freedom & The Direction of Ringgit Matters

Hey everyone,

Sorry I haven’t been posting in a while. I’ve been quite busy with work and life in general…but that doesn’t mean I’ve forgotten to blog! Let’s talk about Ringgit Matters and financial freedom.

So I’ve been thinking long and hard about the growth direction I want to take Ringgit Matters to. Should I use it purely to post useful articles? Or maybe purely as an e-Commerce website? How do I monetise it? Is it really worth creating content from scratch? The above are the questions that have been lingering in my mind for the past few weeks.

Thus, I decided to revisit the original intent of starting Ringgit Matters. What was the initial objective?

I wanted to document my journey to Financial Freedom, with all the successes and failures. Hence, I will start with this post.

The Road to Financial Freedom

Financial Freedom Tracker

My definition of Financial Freedom

Let’s start with my definition of financial freedom. I define it as the point where my passive income equals or exceeds my expenses. Simple, right? Note that my active income doesn’t play a part in this equation. Because it really doesn’t matter (if you truly understand what passive means)!

One way I am measuring this parameter is by taking the percentage of Total Passive Income divided by Total Expenses, which in this case is 9.2%. This will be tracked on a monthly basis.

As you can see, I am just starting out and still far from 100%. I will continue to share the decisions I make and vehicles I use to bring me there. All in due time. 🙂

Understanding Expenses

Expense Report

Making sense of Expenses

To understand expenses is to understand financial freedom.

Ah…we all love expenses, don’t we? Especially with our spending ability in the current booming Malaysian economy…*rolls eyes*. Anyway, just thought I’d share this with you so here you go, a first look at the breakdown of my expenses.

Yes, I leverage a lot. Because I believe in the power of leverage, and you should too. It’s the only way you can grow fast without relying on your own resources! I’ll touch on that in a future post. There’s good debt and bad debt. Choose the former lah!

Unfortunately in this case, currently the bank loan is a bad loan. Why? Because it is used to fund a depreciating asset (or in my book, a liability). To remove or not to remove, that is the question.

There’ll be some interesting major changes to my expense pie chart in the upcoming months so stay tuned and any feedback is much appreciated.

Where to go from here?

Cutting expenses? Increasing income? Or both? What do you think?

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