KUALA LUMPUR, Aug 14 (Bernama) -- Bursa Malaysia closed lower on Friday, even as utilities, healthcare, and financial services sectors saw increased buying interest following the release of Malaysia’s second-quarter (2Q) gross domestic product (GDP) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 7.32 points to 1,727.39 compared with Thursday’s close of 1,734.71. The benchmark index opened 0.01 of a point higher at 1,734.72 and fluctuated between 1,726.77 and 1,734.72 throughout the day. On the broader market, losers trounced gainers 619 to 538, while 554 counters were unchanged, 1,117 untraded and 29 suspended. Turnover eased to 3.50 billion units valued at RM2.59 billion from 3.51 billion units valued at RM3.05 billion on Thursday. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said FBM KLCI closed lower despite Malaysia’s stronger-than-expected 6.0 per cent GDP growth in 2Q 2026, underscoring the market’s forward-looki...
There is this book called The Millionaire Next Door by Thomas J. Stanley and William D. Danko regarding the process of every one to accumulate great wealth. Don't get me wrong, this book is not giving the tips on how to get rich in 5 minutes, but rather the slow and steady process of successfully accumulating wealth.
According to the book, there is a formula to calculate or benchmark whether a person has successfully accumulate wealth according to their age and income and it summarizes into the following:-
Multiply your age by your gross annual income from all sources except inheritances. Divide this by ten. This, less any inherited wealth is what your net worth (excluding home equity) should be.
There are few classification of wealth accumulator and is as follow:-
The formula actually quite make sense because a doctor might be making a whole lot more money than a janitor, yet because the doctor spend excessively, he or she is actually a UAW while the janitor might be AAW or UAW because of his or her habit of accumulating wealth. Age also comes into play in determining whether a person is a wealth accumulator or not because the older you get, you will eventually have higher net worth.
Let's look at the following scenario:-
A and B is earning 50K and 100K respectively and both of them are of same age at 30 years old.
According to the formula,
A = 50, 000 x 30 / 10 = 150, 000
B = 100, 000 x 30 / 10 = 300, 000
Both A and B are AAW if both of them have 150K and 300K in net worth respectively. But should A has net worth the same as an AAW B which is 300K, then A is a PAW. On the other hand, should B manage to accumulate net worth as an AAW A which is 150K, then he or she is UAW.
According to the book, there is a formula to calculate or benchmark whether a person has successfully accumulate wealth according to their age and income and it summarizes into the following:-
Multiply your age by your gross annual income from all sources except inheritances. Divide this by ten. This, less any inherited wealth is what your net worth (excluding home equity) should be.
There are few classification of wealth accumulator and is as follow:-
- A prodigious accumulator of wealth (called a PAW throughout the book) has a net worth twice as high as this formula.
- An under accumulator of wealth (UAW) has a net worth under half of this.
- An average accumulator of wealth (AAW) who has the net worth between half the formula and twice the formula.
The formula actually quite make sense because a doctor might be making a whole lot more money than a janitor, yet because the doctor spend excessively, he or she is actually a UAW while the janitor might be AAW or UAW because of his or her habit of accumulating wealth. Age also comes into play in determining whether a person is a wealth accumulator or not because the older you get, you will eventually have higher net worth.
Let's look at the following scenario:-
A and B is earning 50K and 100K respectively and both of them are of same age at 30 years old.
According to the formula,
A = 50, 000 x 30 / 10 = 150, 000
B = 100, 000 x 30 / 10 = 300, 000
Both A and B are AAW if both of them have 150K and 300K in net worth respectively. But should A has net worth the same as an AAW B which is 300K, then A is a PAW. On the other hand, should B manage to accumulate net worth as an AAW A which is 150K, then he or she is UAW.
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