14 Jul, 2009

Posted in Events | 1 Comment

How do you make a $100,000 work for you .

The guys and I cooking at the VILLA

I was staying up late and having intelligent talk with my new made friends in Egypt last night . When guys talk , it usually revolves around :

1)Girls , in this case Lebanese girls
2)Somehow girls again
3)Money

Most of the guys that are staying with me at the Villa , used purchase viagra overnight delivery to be engaged before . Looks like it’s somewhat of a norm here to get engaged for a period of time before you get married . Besides that , it’s also a normality to annul the engagement . -_- The guys I know annulled theirs and were speaking about their experiences . Quoting their words ` David , don’t make the mistake that we made ‘ . -_- .

Hypothetically , our conversation also moved on to the topic of how would you make a $100,000 work for you ? Work here meaning making the $100,000 generate more money for you .

Something like an essay you’d find in high school aiy ? Reminiscence of the past ( I love my high school days by the way )


MAKING A $100,000 work for YOU

My thoughts on it , and the way I will make a hundred thousand work for me .

When you talk about making money work for you , the old timers would say put your money in a fixed deposit , collect the interest , and save up for your retirement . There’s nothing wrong with that ……….if you want to retire at 55 .

The next norm that comes into mind will be to invest in property , which I think is a good idea by the way . My parents are both government servants , however each have bought a house in Subang in the early 1990s with a government loan and mind you , the prices of both houses have catapulted by almost a 150% ! What a great investment . That however , took almost 20 years to achieve .

I want both my active and passive income to be big , and due to that , I have stayed away from the normality of having a 9-5 job . I’m not saying that having a permanent 9-5 is bad , it’s great if you enjoy it and it offers security besides stability . That’s one of the reasons I suffered like a mad dog to get my engineering degree . If anything were to happen , I have something to fall back on .

So with a $100,000 ….

1)I’ll start my own tv show
I’ve always wanted to do this and every time an offer comes , I can’t pursue it due to the fact that I’ll have my ass kicked out of university if I skipped that many classes for shooting . With the $100,00 , I can fund most of the production cost that can’t be covered to make it an excellent show . With a TV show , sponsors will pop up , endorsements , and best of all , my performance fee will increase . I’m actually finishing up the script for my show right now , and meeting with production houses after I’m back from the middle east .

2)Invest in PROPERTIES and collect rental while waiting for the value to increase I’m already doing this , however I need more properties under my belt to have a comfortable income . If each property , I can collect , an estimate of RM500.00 nett as profit from the rental , I’ll need at least 4 more properties for a ` slightly comfortable ‘ passive income . With a $100,000 , it would be enough to add roughly two more properties . Two apartments would likely be it , and that would be a hypothetical earning of $1000.00 a month from rental . This is very subjective though , as if the price of the property itself increases , I earn more by the passing time . Say I invest now in two $300,000.00 properties . I get a loan of 90% if I’m lucky . $30,000 down payment for each property , plus and minus stamp and ownership transfer , that’ll be $36,000.00 for each property . A total of $76,000.00 used so far to generate $1000.00 a month .

3)Reform my website
A new website means more clients , at least that’s what I feel ( and from experience ) . A new website would roughly cost me $2500.00 , which is covered up by 1 show generated . A fairly good investment eh ?

I was never really a fan of public mutual funds, stocks , and even tried my hands on forex . I guess focus is really the key here . I want something physical that I can touch and feel and I guess property really fits my taste . The only thing that bothers me is getting the loan and so far , I think I’ll be able to do that quite easily with a few connections that I made recently .=)

3 properties by the end of the year ? and 5 by 2010 ? Hey , that’s a start .=)

The Villa that I’m staying now

I’m also going to be an agent in a real estate company to learn the ins and outs of property in Malaysia when I get home . It’s going to be like a REAL job , and I hope to learn a lot from it … and earn some too . 1% commision sounds like a little , but if the house is RM500,000 …..

A $100,000 to $1000,000 in 3 years . Honestly , I don’t think it’s impossible at all . With the right attitude , a little delayed gratification and intelligent decision making , I’m confident it’ll be achievable .

I’d love to hear your thoughts . If you had $100,000.00 right now , what would you do to multiply it’s value ?

-David

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  1. 1. 50,000 for my degree.
    2. the rest invest and wait for the money to grow?
    now i realize…how small is 100,000…

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