'How I managed to amass $750k before the age of 35'

'How I managed to amass $750k before the age of 35'

This is an interview with Brian Halim, 33, who writes the blog "A Path to Financial Freedom." For the past decade, he has been working hard to achieve financial freedom by saving $750k before the age of 35. We hope his insights about career and investing can help and inspire you to dream big and achieve your goals in a similar manner.

Brian recently managed to save $750k in Singapore before reaching the age of 35. But how was he able to achieve such a big feat, and what could our readers learn from him? We asked him to share his thoughts on the matter.

Story of Brian: How I Managed to Amass S$750k Before the Age of 35

Being able to amass $750,000 is by no means an easy feat. It requires not only early planning but also tight spending control and making some investments with a high level of conviction. Longtime readers of my blog A Path to Forever Financial Freedom would know that it has been quite a bit of a stretch for me to try achieving Financial Independence, Retire Early (F.I.R.E.) during this interim period of working life before I turn 35 (in 2020). To accomplish this goal, I've had to adapt and adjust many times since I started on this path about eight to nine years ago. In my view, there have been three critical levers that I have focused on to achieve my goal.

First Lever: Income Growth through Career Advancement

Income factor is one of the most important aspects of the three levers: I wanted to grow my human capital as fast as I could. Most of us grow our capital base by being an employee, working a day job from 9 to 6. In this sense, the first salary base that we get from our first employment plays a big part in the future wealth compounding. If we start from a low base, it takes even more time to play catch up at a later stage. While luck often plays a big part in determining one's first job, but I didn't want to be dependent on what I could not control.

For example, there is usually an annual increment exercise for most multi-national companies, so employees should gradually see their income grow higher over time. However, the growth part is a critical factor like most valuation methodology in investing so we need to play it smart. In order to think about this smartly, I wanted to distinguish the difference between progression and promotion.

Progression means you probably did okay and the company survives another year so everyone in the company gets about three to four per cent increment the following year.

Promotion, on the other hand, means you get a new responsibility and are promoted to the next level, so your increment should be higher, generally about two times higher at six to 10 per cent. of course, promotion doesn't come often and depends on many factors; however, if you can consistently do it, you'll win the rat race within the company.

In fact, jumping to another company immediately after your promotion will probably give you the best ROI, as illustrated below. I've seen a lot of people who do this and many employers agree this pose a big risk to the company in terms of losing talents.

Progression-Progression-Promotion-Jump-Progression-Progression-Promotion-Jump-Progression-Progression-Promotion.

In my 10 to 11 years of working experience so far, my income has grown at a CAGR of about 14 per cent a year, which I think has played a tremendous boost to my ability to contribute more capital into my investment portfolio.

2nd Lever: Savings Rate

Having a high income without establishing a tight spending control is equivalent to having a good Ferrari car without the proper tyre. The higher the savings rate, the more likely you are to have excess funds at the end of the day.

While it may seem pretty obvious that we need to spend less than what we earn, the reality is that doing so is not easy to digest until we are accustomed to seeing things differently. For example, someone who already started with a low savings rate when he is single because they love spending on gadgets or other needs will have a difficult time adjusting his spending pattern once the tough gets tougher.

The reality is that your savings rate would likely decline over time as you tend to start your own family, have children, buy tonnes of milk and diapers, renovate your home and furniture appliances and many more. In my case, I managed to achieve a very high savings rate of almost 80 per cent when I was single, but it slowly dropped to 40 per cent after getting married and having kids.

The ability to continuously save an excess amount of capital every month means I am able to put the money to use to invest and grow my portfolio. This is especially important to do so when you are young and single since your savings rates will be higher and because starting early is crucial when it comes to compounding returns, which I explain next.

Third Lever: Compounding Returns

The last lever is arguably the most difficult and is the last piece of the wild card. Achieving the first and second lever is good enough, but being able to benefit from compounding returns can provide a huge kick to your portfolio. Compounding returns allow one to grow his wealth simply by relying on time.

For example, even if everyone could earn 10 per cent returns every year, someone who started investing 10 years earlier would be worth more than double what another person who started later. When your money can compound over a long period of time, the growth can become exponential. This is why it's so important to start investing early, either through bank deposits, equities, bonds, property or any asset class that generates positive returns.

In order to do this well, I had to spend the first few years building up my level of competencies. The skills and experience that I accumulated over the years played a significant part in compounding my returns.

Many people expect the outcome to be immediate when they start investing, which is a big mistake. A lot of times, much of the good returns instead come from refining your investment and research process over the years, and I had to dedicate a lot of time and effort to do so. In my case, I managed to achieve a return in the stock market of around 19 per cent per annum in the last 9 years of investing through fundamental investing strategy, though there are also many other strategies out there.

Final Thoughts

Everyone knows the formula to building wealth is:

Crazy Income + Crazy savings rate + Crazy Compounding rate = Crazy F.I.R.E

However, it took a lot of refining and adaptation over the years before I was able to fine-tune my lifestyle. And I am still always in the process of learning new things in order to make it better. The hardest part is in the execution and maintaining the determination of wanting this to succeed badly.

This article was first published in ValueChampion.

homepage

trending

trending
    'He was jealous': Woman allegedly slashed with knife for chatting with 2 men below Jurong West block
    Who doesn't forget easily and who doesn't gossip? Hong Huifang, Cynthia Koh and Pierre Png, cast of new Singapore-Thai thriller, talk people politics
    Singaporean who defaulted on NS obligations used fake Malaysian passports at checkpoints over 800 times
    This revamped Raffles Place food court has Michelin-recognised and cult-favourite brands - here's what to try
    Heartbroken dad dies hours after teen son is killed in motorcycle accident
    'We should not prejudge him': Ex-diplomat Bilahari Kausikan weighs in on Trump's ambassador-nominee to Singapore
    Kaya toast, extra cute please: Breakfast-themed plushies with a local twist at Marina Square pop-up
    Can Singapore run without air-conditioning or fossil fuels? We break down the innovations Temasek Foundation is backing for $2m
    4 women arrested in Yishun for allegedly offering sexual services disguised as massages
    Geylang petrol station employee, 77, dies after being hit by reversing car
    Climbers battle torrential waters after flash floods hit Mount Kinabalu; all 155 persons safe, says park
    Malaysian man strikes $4m lottery after betting on his, girlfriend's IC numbers for 3 years

Singapore

Singapore
    • Fulfilling a childhood dream: RSAF pilot enlists after JC, takes part in first NDP
    • 'I believe there will be more opportunities in the future': Fresh poly graduate who took up contract role on job hunting
    • Economic Resilience Taskforce unveils new business grant, support for workers amid global trade jitters
    • 'A seminal leader who shaped Malaysia': Lee Hsien Loong wishes Mahathir happy birthday on his centennial
    • All 12 government parliamentary committees to get new chairpersons, 19 first-term PAP MPs included as members
    • 'You need to do some homework': Trump's ambassador nominee to Singapore under fire at Senate hearing
    • Man in Tampines tased by police officers after allegedly brandishing penknife at them
    • Singaporean fugitive nabbed in Thailand for alleged drug trafficking, turned over to CNB
    • Singapore must develop deeper relationships with China, US, Europe: Shanmugam
    • 'Give a positive review': Hidden AI prompt found in academic paper by NUS researchers

Entertainment

Entertainment
    • Ex-NCT member Taeil sentenced to 3.5 years of jail for sexual assault
    • Sheila Sim takes haircutting course after giving daughter bad trim
    • 'I could not possibly discard the embryo': Lee Si-young pregnant with second child through IVF months after divorce
    • High energy, strong vocals: J-pop boy band Be:First makes explosive debut in Singapore
    • 'I was so excited I wanted to cry': Fans spend up to $50k in auction to experience a day with Jackson Wang
    • Tori Kelly reveals she is expecting her first baby
    • Jay-Z hits out at 'harassment' from man claiming to be his son
    • My Chemical Romance sparks speculation on new music with teasing clues on Instagram
    • Orlando Bloom breaks silence on split from Katy Perry with family photo
    • Nicki Minaj alleges Jay-Z owes her at least $128m

Lifestyle

Lifestyle
    • Singapore coffee brand Alchemist debuts 2 outlets in Japan, marking first overseas venture
    • Now you can get Springleaf prata in a cup - with curry - from a vending machine
    • Orh Gao Taproom, popular bar by night and kopitiam by day in Serene Centre, to shutter
    • Singapore Food Festival returns in September, includes SG60 Specials series
    • 'Definitely a big improvement': How Chery went from cheap joke to become a competitive automotive player
    • I try Springleaf prata in a cup from a vending machine - how does it compare to the real deal?
    • Cat A COE prices cross $100k mark again in first bidding exercise for July 2025
    • Sleeping on the job: This company will pay people $7 per hour to nap
    • Chanel shows haute couture in private salon setting at Grand Palais
    • McDonald's launching Chilli Crab Sauce Burger in collab with Jumbo Seafood, also releasing limited-edition Lunch Bag

Digicult

Digicult
    • Slim, sleek, but slightly too short-lived: Samsung Galaxy S25 Edge review
    • World's best Dota 2 teams to compete for $1m prize pool in Singapore in November
    • 'Report 1 shop, another 10 appear': Hoyo Fest artists on copyright struggles
    • NTU penalises 3 students over use of AI tools; they dispute university's findings
    • Australia social media teen ban software trial organisers say the tech works
    • Disney, Universal sue image creator Midjourney for copyright infringement
    • Initiative by IMDA, AI Verify Foundation tests AI accuracy, trustworthiness in real-world scenarios
    • Under siege? Helldivers 2's latest city to be invaded by aliens could be spoof of Singapore
    • Honor 400 Series launches in Singapore with first free in-device AI image-to-video tool
    • Home Team humanoid robots to be deployed by mid-2027, $100m to be invested: Josephine Teo

Money

Money
    • Best credit card promotions in Singapore (June 2025): Citibank, DBS, HSBC, UOB and more
    • Temasek sees $45b rise in net portfolio value to record high of $434b amid global uncertainties
    • 'It's our grandfather's company, we won't sell', says Wong family as shareholders reject GE delisting bid
    • Japan, South Korea hit with 25% tariffs as Trump ramps up trade war in letters to leaders
    • Trump says alignment with BRICS' 'anti-American policies' to invite additional 10% tariffs
    • Regulators warned Air India Express about delay on Airbus engine fix, forging records
    • Higher seller's stamp duty a 'light touch' to curb property flipping: Experts
    • Trump tax bill averts one debt crisis but makes future financial woes worse
    • Seller's stamp duty rates for private homes raised; holding period increased from 3 years to 4
    • Trump escalates feud with Musk, threatens Tesla, SpaceX support

Latest

Latest
  • Daily roundup: Ex-diplomat Bilahari Kausikan weighs in on Trump's ambassador-nominee to Singapore — and other top stories today
  • US wants South Korea to join efforts to counter China in shipbuilding
  • Effigies of refugees set alight on bonfire condemned in Northern Ireland
  • Asean agrees Myanmar election is not a priority, Malaysia says
  • Philippines' president to discuss tariffs in Trump meeting this July, top diplomat says
  • New Zealand braces for severe weather as storm threatens flooding
  • China offers to help resolve Thailand and Cambodia border dispute
  • South Korea, Japan and US conduct air drill as defence chiefs meet
  • US's Marco Rubio to meet China's Wang Yi in Malaysia amid trade tension

In Case You Missed It

In Case You Missed It
  • Jail for ex-auxiliary police officer who loaded 1 bullet and accidentally discharged revolver
  • Woman injured on SMRT bus after bottle thrown at vehicle shatters window
  • Singaporean drivers rack up over $17k in fines for VEP violations in 5 days
  • Roblox avatar and lantern: Star Awards 2025 looks that made us go 'huh?'
  • Long time no see! Sharon Au, Li Nanxing, Yvonne Lim and others return to Star Awards stage
  • 'Intimacy was not anything sexual', says man who drove car with lover's husband on bonnet
  • Boy, 9, has kidney removed after falling at Bukit Batok playground
  • 'We just want our money': Income Insurance shareholders disappointed at failed Allianz deal
  • Buying property in Malaysia as a Singaporean: 6 key restrictions to be aware of
This website is best viewed using the latest versions of web browsers.