Episode 1 – How He Plans to Retire by 40 by Investing Over RM100k a Year | @pakingyourfunds

Since 2022, @pakingyourfunds has been documenting his personal finance journey with refreshing honesty—sharing his net worth updates, spending breakdowns, financial book reviews, and practical money tips for everyday Malaysians.

What started as a way to stay accountable has grown into a resource-packed account inspiring others to take charge of their financial lives.

In this interview, we dive into his money mindset, evolving strategies, and ambitious goal to achieve Financial Independence by 40. Whether you’re just getting started or looking for long-term motivation, his story has something for you.

1. What inspired you to start @pakingyourfunds, and what motivated you to share your personal finance journey anonymously?

The motivation started when I realized that education today doesn’t teach us about investing. I mean, they do but only invest into banks with fixed deposits.

You can retire with 1-2 million with the bank’s fixed deposit rates with 40 years of work. But the question is, is 1-2 million enough with inflation? 

And that’s how I started. 

There was a gap in what school teaches us… but in reality there are better investments out there. The financial knowledge gap is huge.

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2. Can you describe your financial situation before you began your journey—what were your biggest struggles or blind spots at the time?

I think I was fairly doing alright financially. I clear my credit card diligently and have always been frugal. 

Credits to my late dad and mum for bringing me up this way. 

3. What were some of the key changes or milestones that helped you take control of your money—from tracking your net worth to reviewing your spending?

Taking control of my finances was the first step by tracking my spending. Group them into major buckets (i.e. rent, subscriptions, F&B, entertainment, travel, etc).

With 1 or 2 months of data you would be able to budget what you can afford for these buckets with the salary you bring in. 

Once I’ve gotten hold of my finances then it’s time to forecast my net worth needed for retirement. My initial thought is just how much I need to burn monthly without worrying. 

So dividends per year (5-6%) / 12 = net worth needed. 

Previously my goal was to reach retirement by 35. But that was too aggressive. So I’ve moved it to 40 as it is more realistic (still a very aggressive target).

4. How has your approach to budgeting and saving evolved since you first started?

I used to be very meticulous since I am a data guy. 

For example, I would split F&B expenses to breakfast, lunch and dinner expenses and label each restaurant with their respective amounts. I’ve learnt that it’s not needed most of the time. 

Just ensure each bucket doesn’t go above your budget on a yearly basis.

5. You’ve shared a goal of reaching Financial Independence by 40—how are you working towards that, and what does FI mean to you personally?

40 year old financial independence is still a very aggressive target for me, with RM100-150k invested per year with 8% annual growth including dividends & capital appreciation.

I keep very little cash and am still very aggressive until today. 

To me, Investments = Salary – Expenses. 

Hold as little cash as possible. 

There are a few months where I would have less than 3 digits in my bank account and pay everything on credit. Unless you are disciplined enough, I don’t advise this. 

Personally, financial freedom to me is free time for myself and family. I don’t need to worry about my job security when I have peace of mind about my finances. 

6. You often share financial book reviews—what’s one book that truly shifted your mindset or challenged what you thought you knew about money?

Haha I don’t read many books. The last book I read was atomic habits.

Small changes have big results. 

1% a day for a year is 37.7 times better off in a year. This is literally compounding interest over time. With good habits you’ll reach there faster.

1. Practice stacking habits. If you want to be motivated and change a habit. Stack a good habit with something you like doing. (I.e. workout & watching Netflix).

2. Practice making it easy. Ensure you have all things prepared for your workout so you won’t feel the need to skip them.

In the past few years I’ve been stacking habits, some even extreme. I would go lengths to save money and come up with no spending days. It’s not very healthy actually to force yourself not to eat. Or even treating insurance as an expense and one point removing it entirely relying on my company’s insurance policy.

I’ve learned that you don’t have to go to extremes to get the outcome. Health is always more important. 

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7. Looking back, what’s a piece of financial advice you used to believe that you now see differently?

I just posted about it recently! There was a financial rule that I’d never break. 

Never invest in the opposite trend because you’d not be better off if one stock goes up and another goes down. 

For example, you should not invest in traditional automotive makers like Toyota, Honda, Ford if you’re convinced that Electric Vehicles will overtake them one day. Eventually, one will win and another will go to 0 if they don’t change their ways. So you’ll not be better off. 

I am very bullish on crypto and Bitcoin in particular. But banks are the opposite trend. But there is one bank that I’ve set my eyes on for the longest time but never invested in it until today. 

So my views changed drastically. If your financial goal is 8% per annum and a bank pays you 5% dividends, gives you 2% foreign exchange based on SGD to MYR trend, you are essentially hoping that their value rises 1% per year to make up for the total 8%. How is it not a viable investment?

You set your goal per year and stack assets that’ll help you achieve your goal.

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8. What are money rules or habits that you live by today and won’t compromise on?

1. Always pay with credit card, if available, to maximize your points output. Essentially you pay the same amount in cash vs credit. So why not get extra by paying credit? 

2. Never miss your credit card payment.

3. Never spend more than your salary in a month unless it’s a huge sum that you’ve saved for.

4. Housing loan is good only if the house appreciates in value.

5. You don’t have to stick to your budget on a monthly basis, but you should never go above the budget set on a yearly basis. 

6. Set an investment goal yearly. Be realistic and stick to it.

9. As you look ahead, what’s one financial or personal milestone you’re most excited to hit in the next few years?

Oh I think I’m almost a half-millionaire! 

I should be reaching that milestone by this year! 

Another 5 more years, realistically to reach RM1 million!

10. For Malaysians just starting their own personal finance journey—especially young adults—what advice would you give to help them build a strong foundation and stay the course?

1. Know your spending habits

2. Come up with a budget by buckets and stick to it. Be realistic, not aggressive. You’ll get demotivated if you don’t set a realistic budget.

3. Clear your high interest debt as soon as possible with excess cash flow. No one will laugh at an overweight person if they are going to the gym daily. Everyone starts from somewhere, whether it’s clearing debt to 0 net worth, or stacking your net worth towards financial freedom.

4. Calculate what kind of lifestyle you are comfortable with and what $/month you want to draw. Assume 5% dividends, back calculate the net worth you need to retire.

5. Set a realistic target amount to invest yearly/ monthly towards that goal. Don’t deviate, stay the course.

6. Celebrate any wins. Trust me, it’s very motivating when you do.

7. Don’t believe any claimed online money gurus out there. 10% per annum is achievable, anything more, start questioning. If it’s too good to be true, it probably is a scam.

Thank you, @pakingyourfunds, for taking the time to share your journey with us. Your transparency, discipline, and sharp mindset are truly inspiring—and a reminder that financial freedom is possible with the right habits and long-term perspective.

Follow his journey on Instagram @pakingyourfunds for more practical money insights, net worth updates, and real talk on investing in Malaysia.