Fastest Way To Accumulate $10,000
Blogged By: Low Hang Wei @ November 13th, 2007 - 2:54 pmAs promised in my previous post, I am replying to the exact same question that I am posting. Before I go on, I have to add a disclaimer… although I set the question, I do not have the model answer for it. 
The answer may be different for each individual, therefore this is purely my comment and while it is the best answer I can give, it is not the best answer in the world. Now, just to repost the question in case some of you did not read the previous post
“If I have just 2 hours a day and $500 in savings, what will I do to accumulate $10k in the shortest possible time?”
Scenario
I’m a lowly educated person with no knowledge in anything.
My wage rate is $5 per hour.
That 2 hours a day excludes travel time.
I am already sleeping the minimal amount of hours, so I can’t sleep less.
Investing grows my money, but I do not have money in the first place…
To illustrate my point, let’s assume that I work that extra 2 hours a day and invest what I have. Assuming an hourly rate of $5 with 2 hours per day, I will have an extra $10 a day or $300 a month. Assuming that I invest and reap the historical gains of the U.S S&P index, I will have $10,000 after 4 years and approximately $30,000 after 10 years. As you can see, this is apparently not a fast way to attain financial freedom. Besides, it would be incredibly difficult to commit that extra 2 hours of work for a few years and it may be faster to fall sick than to become financially free. Of course, if I can persist working that extra 2 hours a day and investing what I have, then I may have $500,000 at the end of 30 years. However, it is more likely that I die from overworking.
Actually, to be fair, investing can help many people to become rich in the long term, because most of us are not in the kind of situation that I am assuming in this case. Many of us work comfortable hours with reasonably good pay and can afford to invest much more and bring ourselves closer to financial freedom with each passing day. Now, let’s go back to the scenario and see what I will do…
I will… pick up a skill with that 2 hours a day. Since I’m assumed to be without education with no knowledge of anything, this is something I need to change. With that 2 hours a day, I have 180 hours after 3 months. This equates to enough time for 3 modules in University level. If I use these 180 hours purely to pick up a skill, I’m sure that I will have a reasonable skill level by that time. To give some ideas…
The creative people may want to pick up the following skills: Photography, Graphic Designing, Make Up, Sound Editting, 3D Modelling, Character Animation. Those who are technical may be interested to pick up programming or derivatives trading.
After spending that 180 hours to pick up a skill, I would spend the next 3 months to build up a portfolio and hone my skills at the same time. With a portfolio, it will be much easier if I intend to do freelance or even if I am prepared to look for a job. It is possible to get a freelance hourly rate that exceeds $50 per hour for any of the fields that I listed as an example and they are only scratching the surface of possibilities.
Of course, some people may take more than 6 months to learn a skill and build a portfolio, but if there is total dedication, I am very sure that one year will be the maximum it takes. By becoming good at a skill, it is just so much easier to get a better salary and accumulate wealth. It may be possible to secure a job that pays $1,500 instead of below $1,000 and work lesser. That’s not the end too, because with a job that requires skill, it is much more possible to get pay raises.
It may take up around 3 to 4 years to accumulate that $10,000 too, but the next $10,000 will take a much shorter time. Becoming financially free will no longer be a dream, because a skill is learnt, retained and will generate wealth. Through time, I will get better and get compensated for my expertise. If my employer does not reward me well, I know that the option of becoming a freelancer will always be open.
Therefore, my final point is: only through learning… I start earning.
What do you think?
Blogged Under: First Million Challenge, Self Improvement, Random Thoughts
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November 14th, 2007 at 12:53 am
That is an interesting way of looking at thing (Thinking out of the box).
Thanks for sharing your view and jia you in making your first million (and many more).
November 20th, 2007 at 1:26 am
heya.
just wanna say that i enjoy reading your blog. you obviously spend much time thinking about life and what you can do to make the best out of it.
money can’t buy you everything but we definitely need money to get around! its good to hear you share your ideas bcos i intend to invest wisely when i get a job next year! so thk u!
i’m curious to hear from you, what would be your motive for making so much money? what is it that you’re looking for in life?
November 20th, 2007 at 11:07 pm
hi! just happened to chance upon your weblog, and further chance upon some interesting issues. i must say, its a very interesting read cuz there are so many varying opinions. most of all, i enjoyed reading your tactful responses to rather offensive comments. i also admire your ability to be transparent, honest and bold because you believe in yourself and in what you have to say. and most of the time, i agree with your opinions. may i add that you have my respect if what you preach here is practiced. keep up the good work, i’m sure you’ll be a millionaire one day! would love to learn more from you so i’ll continue to pop by! (do drop me an email too, would love to ask you a few questions cuz i’m a business student myself) good luck!
April 23rd, 2009 at 2:10 pm
Dear Hang Wei …..the only reason people makes big money is bcoz they focus on doing wat they are good at without using people’s disadvantages to their own advantage. The second reason people make big money is bcoz they are surrounded by people who are successful, learn from them and always look at the positive side of themselves and others. The third reason is they are very low profil and humble. Hope you will make your million soon ….all the best to you …….
April 23rd, 2009 at 2:17 pm
Dear Hang Wei ….i advise you to spend less time on this blog and spend more time on your investment projects. Talk to those successful investors and learn from them. Read more and spend less time answering to those people that do so little in life and yet want to be successful….. all the best to you . You should have work in the press or join some motivational institution, work for them ……bcoz from wat i have read about you …….you are full of heart ….you wanna really make it big but at the same time you have very low self esteem …….(sorry about that) but that is ok. Stop spending time with all this wasting your time people on this blog ….bocz i believe you are much more better of doing better things than to explain to this people …………… you have the talent …….good luck …….all this bloggers are wasting people’s time…..GOOD LUCK LOW HANG WEI ………you have the talent ….make full use of it.
April 30th, 2009 at 2:53 am
hi,
You need strategy, that’s all. Be open to options around you. There are many trades will let you earn your first pot of gold. If you can breakdown 2hrs of job earn how much, things like that. You will soon figure out that earning a 5 figure sum is not really difficult. You can sure think out of the box and I am sure you can earn your first 10k very soon especially you know why you are doing it. That is already a motivation.
have you noticed that the poor will queue up at the bank, trying so hard to save while the rich just borrow against them. They are using the poor man’s money to make them richer by buying more properties or more valued investment. See? I dun mean to be rude, your mum is an example. She has work hard all her life but she did not accumulate her retirement fund. Working hard is one thing, learn to leverage , using other people money give you a different perspective in life. 10k investment compounded at 30% for the next 18 times ( you just need to get it rite 18 times and it is possible) earns you more than a million.
Keep your secret formula to become a millionaire to yourself. There is no one formula. You need not share with many of them out there. Many of them will not understand, it not a easy job to make them understand either.
I just chanced on your blog and I agreed with what big money said. Spend less time on blog and learn more on how successful people make swift decision and still get out very much better each time.
All the very best!