THE MILLION RINGGIT MYTH: WHY ‘LIVING BELOW YOUR MEANS’ COULD BE KEEPING YOU POOR!

The Million-Ringgit Myth: Why 'Living Below Your Means' Could Be Keeping You Poor!

Introduction

Let me ask you something: When was the last time you felt truly financially secure?

'Live below your means' — a phrase often hailed as the cornerstone of financial wisdom. But is this advice genuinely helpful, or does it serve as a mechanism to keep the rich richer and the poor trapped in a cycle of struggle? While many praise its practicality, some argue it distracts from systemic inequalities and hinders financial growth. 

Imagine this: you wake up, go to work, stay late, come home exhausted, watch some TV, and go to bed — only to wake up the next day and do it all over again. If the routine stops, so does your income.  

You barely have savings, your living expenses feel overwhelming, your salary doesn’t seem enough, and you're juggling credit card debt. Maybe you’ve taken out a student loan, believing education would lead to financial freedom, but instead, you’re stuck with a nagging loan hanging over your head.  

Building wealth and achieving financial freedom feel like distant dreams. You look at millionaires and billionaires and wonder how they’ve done it. Meanwhile, your aspirations — owning a mansion, driving your dream car, paying off your mortgage, or traveling the world — remain just that: dreams.  

If all you do is focus on 'living below your means', you’re playing a game you can never win.

1. The Other Side of the Coin

Think about your morning coffee. Cutting it out might save you RM15 daily or RM5,475 yearly. But even after 10 years of no coffee, you'd have saved only RM54,750 - hardly enough for true financial freedom.

What if I told you that with the right strategy, unimaginable wealth and true financial freedom could be within your grasp? A life where money is no longer a concern. But how do you achieve that?

If your goal is to build significant wealth in the shortest time possible, simply 'living below your means' won’t get you there. There’s one resource we all have that’s more valuable than money — time. Once it’s gone, there’s no way to get it back.

Consider this: if you saved RM200 a month and invested it at an 8% annual return, it would take 45 years to accumulate over a million ringgit for retirement. That’s 45 years of frugality, with inflation quietly eroding your buying power. By the time you hit that milestone, the most precious resource — your time — will have slipped away.

Living within your means may preserve your finances, but it also means trading your time for money, leaving you far from the wealth and freedom you truly desire.

2. Stop Chasing Money

Many people pour immense effort, energy, and focus into making more money, but here’s the harsh truth: working harder or longer hours has little impact on building real wealth.  

Your income isn’t based solely on your effort—it’s determined by your perceived value in the market. And who defines that value? Your market, which could be your community, industry, or society at large. For instance, football players earning millions only do so because there’s a thriving market for football. Fans are willing to pay for tickets, merchandise, and broadcasts, creating high demand. The players at the top of their game, in turn, are rewarded generously because their perceived value is immense.  

It’s not about hard work alone. A cleaner who toils every day earns far less than an accountant sitting at a desk. Why? Because the market sees the cleaner’s role as easily replaceable—it doesn’t require specialized skills or years of training. On the other hand, the accountant, with expertise in saving clients thousands on taxes, is perceived as offering greater value and is compensated accordingly.

Think of value like a durian seller. Two sellers might work equally hard, but the one who knows how to pick the best durians and build relationships with customers will earn more. It's not about working harder - it's about being more valuable to your market.

Even so, we’ve established that relying on a job, living below your means, and saving alone won’t help you amass significant wealth quickly. So, how do you increase your perceived value?  

Before diving into that, let’s first understand why it’s so profitable to keep the poor, poor.

3. Why They Want the Poor to Remain Poor

3.1 Dependence on Loans

Imagine you're playing a game where someone keeps lending you money, but every time you borrow, you have to pay back even more. That's how banks make money from people who can't afford things outright. When you're told to ‘live below your means,’ you might end up needing loans for big purchases like houses, cars, or education. The banks love this because they earn interest from these loans - it's like they're collecting rent on your dreams. The longer you stay in debt, the more money they make from you.

3.2 Cheap Labor for Capitalists

When people are preoccupied with surviving paycheck to paycheck, they are less likely to pursue education or entrepreneurial ventures. This ensures a steady supply of low-cost labor for corporations, sustaining the economic hierarchy.  

Think about a giant pizza. The person who owns the pizza shop sells each slice for RM10, but only pays their workers RM1 to make each Pizza. When people are struggling to make ends meet, they're more likely to accept lower-paying jobs just to survive. Big companies know this, and some of them actually prefer keeping wages low because it means bigger profits for them. When workers are told to ‘be humble’ and ‘live below your means’ it sometimes helps these companies continue paying less than what the work is really worth.

3.3 Government Subsidies for the Wealthy

Subsidies on essentials like fuel and food are often marketed as relief for the poor. However, they disproportionately benefit the wealthy, who consume more of these subsidized goods, further entrenching inequality. 

Here's a surprising truth: while many people think government help mainly goes to the poor, wealthy individuals and big corporations often receive much more in tax breaks and subsidies. It's like having two cookie jars - one for the poor with a few cookies, and a giant one for the wealthy that keeps getting refilled. When regular folks are busy pinching pennies and 'living below their means,' they might not notice or have time to question why wealthy individuals and corporations get these special treats from the government.

3.4 The Buy Now Pay Later Trap

The ‘Buy Now Pay Later’ scheme sounds friendly, like a helpful friend saying ‘Take it now, pay me when you can!’ But it's actually a clever trap that makes you spend money you don't have yet. While you're trying to live below your means, these companies tempt you with easy payments that seem small at first. It's like being offered a delicious cake that's cut into tiny slices - each slice doesn't seem like much, but before you know it, you've eaten the whole cake and now have to pay for it, often with extra charges. This system keeps people in a cycle of owing money, making it harder to build real wealth.

3.5 A Distracted Population

Frugality-focused advice diverts attention from systemic issues like income inequality, wealth concentration, and unfair taxation policies. By keeping the masses focused on survival, the elite grow wealthier unchallenged.

The most clever trick of all? Keeping people so focused on daily survival that they never question why they're struggling in the first place. It's like being in a maze where you're so busy looking for the next turn that you never stop to climb higher and see the whole pattern. When people worry about paying bills or affording groceries, they don't have the time or energy to learn about investing, starting businesses, or understanding how wealth really works. This distraction is worth billions to those who benefit from maintaining the current system.

4. Breaking Free: Your Path to Real Wealth

4.1 Shift Focus to Growth

Instead of solely cutting back, look for ways to increase your income through skill development, entrepreneurship, or side hustles.  

Stop thinking about what you can't spend and start thinking about what you can earn! It's like having a plant - instead of just saving water by giving it tiny drops, focus on helping it grow bigger so it can produce more fruits. Look for ways to increase your skills and knowledge that could lead to better-paying jobs or business opportunities. Maybe you're great at art - instead of just saving on art supplies, think about how you could sell your artwork. Or if you're good with computers, consider learning new programming skills that companies will pay more for. The key is to water your talents until they bloom into something bigger.

4.2 Smart Investing

Put your money to work. Explore diversified investments like stocks, ETFs, REITs, Mutual Funds, and Real Estate to grow wealth passively.  

Investing isn't just for rich people - it's how regular people become wealthy! Think of it like planting seeds: some will grow into trees that give you fruit every year. Instead of just keeping all your money in a savings account where it barely grows, learn about investing in things like stocks, property, or even starting a small business. Yes, there are risks, but playing it too safe by only saving might actually be riskier in the long run because your money loses value over time due to inflation. It's like keeping ice cream in a broken freezer - it slowly melts away.

4.3 Build an Abundance Mindset

Reject the 'just get by' mentality. Aim for financial freedom and actively seek opportunities to elevate your standard of living.  

Imagine you're wearing glasses that only let you see limitations - now switch to glasses that help you see opportunities everywhere! An abundance mindset means believing there's plenty of wealth to go around and that you deserve your share of it. Instead of thinking I can't afford this,’ ask yourself ‘How can I afford this?’ This isn't about being reckless with money; it's about believing in possibilities. When you see successful people, don't think ‘They're lucky’; think ‘If they can do it, I can learn how too.’ It's like changing the radio station from sad songs to motivating ones - suddenly, everything feels more possible.

4.4 Question the System

Educate yourself about systemic financial inequalities. Understand the rules of the game so you can play it to your advantage, rather than being played by it.

Be like a curious detective investigating why things are the way they are. When someone tells you to ‘live below your means’, ask ‘Why aren't my means enough?’ When you see wealthy people getting tax breaks, ask ‘Why don't regular workers get the same benefits?’ Understanding how money really works in society is the first step to changing your situation. Join communities where people discuss these issues, learn about your rights, and don't be afraid to speak up about unfair practices. Remember, many rules in our financial system were made by people, which means people can change them too!

5. Stories of Transformation

Let me tell you about Sarah, a 35-year-old teacher from Penang. For years, she followed the traditional advice of cutting costs, bringing packed lunch to work, and avoiding any ‘unnecessary’ expenses. Despite her frugal lifestyle, her savings grew painfully slowly. One day, while grading papers at a local café, she overheard two entrepreneurs discussing digital marketing. Intrigued, she started learning digital marketing skills in her free time.

Within six months, Sarah launched a side business helping local businesses with their social media presence. Today, she earns triple her teaching salary through her digital marketing agency, which she runs after school hours. She still practices smart money management, but now she focuses more on growing her income than cutting corners.

Then there's Raj, a former factory worker in Johor. Instead of just saving from his modest salary, he noticed how many of his coworkers struggled to find reliable transportation to work. He started with one second-hand car, offering ride-sharing services. By reinvesting his profits and gradually expanding, he now owns a small fleet of cars serving factory workers across industrial areas. His monthly income has grown tenfold.

These stories teach us something crucial: while being mindful of spending is important, the path to wealth often lies in spotting problems you can solve for others. Both Sarah and Raj found ways to provide value to their communities while building their own wealth.

Conclusion

In a country like Malaysia, the opportunities are endless! With a growing economy, a thriving entrepreneurial ecosystem, and world-class infrastructure, this is the perfect place to take charge of your financial future. Whether you want to start a new venture, learn a high-demand skill, or invest in emerging industries, the resources and tools are right at your fingertips. 

Don’t settle for where you are now! Break free from the cycle of mediocrity, challenge yourself, and strive for greatness. Malaysia is brimming with potential, and so are you. Seize the opportunities, take risks, and create a life where you not only survive but thrive. Your journey to success begins today—make it count! 

What do you think? Share your thoughts in the comments below.