The first thing I will do is to pay off every single one of my loan owing to the banks. I want to be debt free as I believe this is the first step to achieving financial freedom. That being settled, I will use some of these money as fresh funds injected into a small start-up that’s currently being run by a friend. Although a small setup, this company is showing a lot of potential and is currently doing well. I am interested to be a significant shareholder without committing the time to run the company. At the end of the day, my objective is to gain high returns from this investment.
Now that I have made sure I am as commitment-free as possible and built a path for future gains through passive income from the start-up, I will allocate a sizeable amount as my son’s education fund and this will be put in a fixed deposit account for the long term. I may even put a portion of this education fund into a foreign currency fixed deposit.
The remaining money will be saved up in another fixed deposit account and never to be touched. This shall be my retirement fund.
You may ask why I do not invest some of these monies into the stock market. Well I have every intention to buy into the stock market, but not all at once. Since I am commitment free, I will have a lot more disposable income from my monthly pay cheque (you didn’t think I was going to quit my job, did you?). This monthly income will be used to consistently buy into the stock market and unit trust funds.
That’s the story of my one million. What would you do with a million bucks?
{ 5 comments… read them below or add one }
Hi Penny,
Thanks for joining !
You have an interesting site =D
Thanks for dropping by!
Hope to hear good news soon!
That’s a good strategy on clearing off all debts. But do bear in mind that not all debts are bad. Some debts are used to leverage on other higher opportunities cost items. Since you will always only have a limited amount of cash in hand, the trick is to figure out which one would give you a better ROI in the long run.
Keep up the great work, Penny!
Agree with you about the debts part. But I don’t have any good debts
Btw, I like your blog and I’ve linked you up. Do link me too!
Thanks for the link, Penny, you’re now in my list of Malaysia PF Blogs