In the Pay Day column, finance guru Michael Ko delves into the often avoided topic of personal finance, aiming to demystify money matters and encourage discussions on earnings, savings, and investments. Through his YouTube channel with over 15,000 subscribers, Ko focuses on strategies to generate passive income streams through avenues like the stock market and real estate.
Reflecting on his financial journey, Ko shares advice he would give his younger self, stressing the importance of steering clear of detrimental debts and starting investments early for a secure financial future. Ko reveals that his family didn't engage in direct discussions about money during his upbringing but instilled values of frugality, saving diligently, and working towards homeownership as essential financial practices.
When it comes to his own financial situation, Ko describes it as comfortable, with sufficient resources to meet both necessities and desired luxuries. He candidly discloses that a significant portion of his income goes towards his mortgage, especially after moving into a new home where expenses have increased due to splurges on furniture and home upgrades, such as motorized blinds and curtains for added convenience.
Ko acknowledges his tendencies to spend on items that may not necessarily enhance his life significantly, like frequent technological upgrades, recognizing that finding happiness through material possessions can be a misleading notion. He emphasizes the importance of self-education in financial matters, pointing out the lack of emphasis on financial literacy in conventional education systems. Ko advocates for disciplined saving, maintaining multiple bank accounts for different financial purposes, including a dedicated emergency fund for unexpected expenses.
As Ko reflects on his financial journey, he underscores the significance of avoiding harmful debts and starting investment endeavors early on. His insights and experiences serve as valuable lessons for others seeking financial stability and security.