Most people in Malaysia want to achieve financial independence, but many don’t know how to do so. In fact, more than 35% don’t believe that they can retire early. But, there are ways to achieve financial independence, including smart spending, investing, and financial planning. For example, Malaysians can invest their money in mutual funds, stocks, and even gold.
In a recent survey, Malaysians estimated that the best age to retire was between 50 and 59 years old. Another 22% said they could retire at age 60. Meanwhile, 10% said that they should retire between 40 and 45 years old. Another 4% said they were undecided.
When you plan your financial independence, it’s important to understand your savings needs. The amount of savings required depends on your income and your family composition. For example, a person with a low investment return might need more than 25 times their annual expenses in order to reach financial independence. On the other hand, someone with a higher investment return may need less than 25 times their annual expenses.
Whether you’re looking to retire early or live a comfortable life, financial independence begins with the decision to spend less than you earn. The FIRE movement encourages frugality and smart investing. By using your investments to meet your expenses, you’ll be able to retire at a much younger age.