Introduction: Income vs Wealth — Don't Be Fooled
Many people equate a high salary with wealth.
But in truth, wealth isn’t how much you earn—it’s how long you can survive without working.
This idea is simple, but life-changing once you internalize it.
Let's explore why calculating your true wealth matters more than boasting about your monthly paycheck.
Defining True Wealth: It's About Time, Not Salary
Wealth = How long you can maintain your current lifestyle if you stop working today.
If your expenses are RM5,000 per month and your savings are RM100,000, your wealth is roughly 20 months.
Meanwhile, someone earning RM20,000 per month but spending RM19,500 monthly has only a few weeks’ worth of true wealth if they lose their job.
This perspective shifts how you manage money—from chasing high incomes to building durable assets.
How to Calculate Your Real Wealth (Step-by-Step)
Step 1: Calculate Your Net Worth
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Assets: Cash, investments, property (current value)
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Liabilities: Debts like car loans, mortgages, PTPTN loans
Net Worth = Total Assets – Total Liabilities
Step 2: Calculate Monthly Expenses
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Housing
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Utilities
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Food
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Transportation
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Lifestyle
Step 3: Divide Net Worth by Monthly Expenses
This will give you the number of months you can survive without income.
Examples
| Person | Monthly Income (RM) | Monthly Expenses (RM) | Net Worth (RM) | Months of Survival |
|---|---|---|---|---|
| A (Doctor) | 15,000 | 14,000 | 30,000 | ~2 months |
| B (Accountant) | 5,000 | 2,000 | 100,000 | ~50 months |
| C (Blogger) | 3,500 | 1,500 | 80,000 | ~53 months |
Notice that Person C is wealthier in real terms than Person A, even though Person A earns 4x more!
Conclusion: Focus on Building Wealth, Not Chasing Salaries
Ultimately, the goal is not just earning a lot—it's owning your time.
Financial freedom begins when your passive income and savings cover your living expenses, freeing you from dependency on active income.
Let’s start measuring wealth properly from now onward!