I want to stress on the word self-made millionaire. This mean, in order to be a millionaire by our own effort, we must remember this number one rule. Life below our means. To be clear, we must live moderately. I believe many people will be against me. Most people believe that millionaires life in a luxuries life, drive a fancy sport cars and allow their young wife shopping 24 hours non stop. People, our perception had been distorted by the media.
Yes, only minority millionaires live this way, and they never can sustain their wealth. Now, we don't want to be that person. We work hard for our money and we want to protect it. We want to grow and sustain it. We want our kids and grandchildren also do the same. That is what we want to be. Meanwhile, there are three types of people who tend to live in a luxuries lifestyle and shortening their wealth period. Remember, we don't want to be in this group. I believe, if you belong to one of this group, you are lucky, it's time to get out of it.
Group number one is what we call the false rich.Most of them, they are from the professionals and high executives who earn a very high salary, but spend as much as what they earn. Sometimes more. These people, they drive a latest luxury car, fly in the first class and dine in the finest restaurants. They appear to be very rich and successful. But the reality, they are very weak in accumulate their wealth and they have a very few positive cash flow assets. Basically, they just one to two paycheck away from broke. I promise, I don't want to be in this group in my life.
Group number two is the people who inherited their millions. This bunch of lucky bums are people who don't have to break their sweat to earn money. They are people who win a lottery. They are people who married to a millionaire. They are people who inherited them from their millionaire's parent. This people, to be honest, they don't understand the value of money. They spend like there is no tomorrow. Most probably, within a few years, they will be broke. Again, I promise not to be in this group.
The last group is the people who are the highly talented celebrities. These people are the ones who earn their millions not because their financial intelligence but due to their talent in singing, acting or sports. Due to the millions come easily to them, they tend to spend all of it. Unfortunately, no matter how much they earn, eventually they may wind up broke and in debt. Some of the examples are like Mike Tyson, MC Hammer and Michael Jackson. You can google up and read their financial story. I believe, you also don't want to be in this group.
In a nut shell, we must live our life below our means. Don't try to showoff your wealth because once you be like that, there is no turning back. You will always be in that trap. So this is when people said prevention is better than cure. Always be moderate in our life because that is the key to be a millionaire. I believe, it is okay to sometimes we spends a little more than usual, but always keep in mind to watch the cash flow. I know my father belong to the first group, and I learn my lesson. :)
Thursday, June 17, 2010
Wednesday, June 16, 2010
I love to be in Civil Engineering!
Tonight, I want to share with you how I ended up studying degree in Civil Engineering in Universiti Teknologi Petronas. Don't worry, this thing have a very close relationship with my financial future. The truth, everything was a great coincident. I never thought in my life that I want to be a civil engineer in the future.
When I'm in my secondary school, my ambition was to be a surgeon or neurologist. At that time, my father was my role model. I want to be a respected person and a rich-looking people like him. To make long story short, I apply to UTP for Civil Engineering course. My plan was just to experience the interview sessions and get some friends there. I got lucky, UTP send a letter to my home saying that they accepted me to study there. The day I got my real SPM result, I consult with my father whether I need to go to UTP of not, and he give me a green light.
A few days before I went to UTP, I consult my father again. I told him that I really like business. I also want to be a doctor. To be honest, my Biology was not so good compare to my Physics and Additional Mathematics. That's the reason why I put aside my dreams to become a doctor. About business, my father told me that I can learn business by myself. I said okay, maybe I can take MBA after I graduated in order to improve my financial literacy. I'm trying to be flexible with my father's opinion. It is ironic how a doctor don't want his own son to be a doctor too.
Then I ask him why he want me to be a civil engineer, rather than a doctor. He said, he has many engineer friends and most of them are richer than him. Being an engineer, you don't have to always be in office, sometimes you come to the construction site, meet clients and do other stuffs. He always compare with his life, became a doctor, you have to be in office and meet patients to make money. If you are not there, you got no patients, means you got no money. It is very hard for a doctor to work for more than one clinics at one time. But for engineers, work for more than one projects are possible.
Now, after reading a lot of business books, I found one similarities. When come to investment, most of them will talk about properties like land, house and apartment. In order to give a great advantage to me, I must think how my profession in the future (civil engineer) can be manipulated in properties. I might use my specialties to improve the value of a property. Everything is just a matter of being creative and flexible. Thank god I'm taking civil engineering.
p/s- only Allah knows what will happen in the future but it is our responsibility to give the best in whatever we do. If we want to be rich, we will work for it and Allah will give it. Nothing is impossible.
When I'm in my secondary school, my ambition was to be a surgeon or neurologist. At that time, my father was my role model. I want to be a respected person and a rich-looking people like him. To make long story short, I apply to UTP for Civil Engineering course. My plan was just to experience the interview sessions and get some friends there. I got lucky, UTP send a letter to my home saying that they accepted me to study there. The day I got my real SPM result, I consult with my father whether I need to go to UTP of not, and he give me a green light.
A few days before I went to UTP, I consult my father again. I told him that I really like business. I also want to be a doctor. To be honest, my Biology was not so good compare to my Physics and Additional Mathematics. That's the reason why I put aside my dreams to become a doctor. About business, my father told me that I can learn business by myself. I said okay, maybe I can take MBA after I graduated in order to improve my financial literacy. I'm trying to be flexible with my father's opinion. It is ironic how a doctor don't want his own son to be a doctor too.
Then I ask him why he want me to be a civil engineer, rather than a doctor. He said, he has many engineer friends and most of them are richer than him. Being an engineer, you don't have to always be in office, sometimes you come to the construction site, meet clients and do other stuffs. He always compare with his life, became a doctor, you have to be in office and meet patients to make money. If you are not there, you got no patients, means you got no money. It is very hard for a doctor to work for more than one clinics at one time. But for engineers, work for more than one projects are possible.
Now, after reading a lot of business books, I found one similarities. When come to investment, most of them will talk about properties like land, house and apartment. In order to give a great advantage to me, I must think how my profession in the future (civil engineer) can be manipulated in properties. I might use my specialties to improve the value of a property. Everything is just a matter of being creative and flexible. Thank god I'm taking civil engineering.
p/s- only Allah knows what will happen in the future but it is our responsibility to give the best in whatever we do. If we want to be rich, we will work for it and Allah will give it. Nothing is impossible.
Tuesday, June 15, 2010
Let's play Cashflow 101 online!
To be honest with you, I'm not the game kind of a person. Like most of my friends, they like to play games very much like Pro Evolution Soccer, Warcraft and Need For Speed SHIFT. My room mates back to Universiti Teknologi Petronas, he is the god of Need For Speed SHIFT. But this holidays, I found a new game which involve personal money management. Something like Monopoly, but this one is far more real.
It is a Cashflow 101. This game was invented by Robert T. Kiyosaki, one of my favorite author. For people who seek for financial knowledge, this game will give you a very practical understanding of your own finance. I believe most of us, we are either from a poor class or middle class people, and we have our own perception about money. One of it is, we always thought that we have to work harder to make more money.
This is where this amazing game came in. In order to change our financial level, we first have to change our attitude on money. This game teach us to think like the rich. The rich always think, if they want to make more money, they have to make sure the money work for them. Not like us, we work for the money.
In order to make money work for us, we must have some passive incomes. Passive income in this game where we get money by renting some properties. Most of us, we use our money to buy liabilities. Just bare in your mind, anything that can put money in your pocket is an asset, while anything that can take your money away is a liability. So, the strategy is to accumulate as much assets as possible to gain more passive income.
In this game, you will also learn about income statement and balance sheet. In the income statement, there will be your income amount and your expenses which both in form of monthly basis. Your income is determine by your profession which can be a doctor, web designer, school teacher, lawyer, pilot army and many more. If you a doctor, of course your income will be more, but your expenses also will be more. This is the truth in the real life. In the expenses part, it is where you have your taxes, home mortgage, school loan payment, car payment, credit card payment and many more.
For the balance sheet, this is where you put your assets and liabilities. Remember what I've told you about the difference between assets and liabilities. When you buy a property and it give you a positive cash flow every month, it is an assets. When you buy a car, and you need to pay the car monthly, it is obviously a liability to you. In order for you to get out of the rat race, you have to accumulate as much as possible assets that can give you a positive cash flow. Sometimes you have the opportunity to sell your assets and enable you to get more cash. That cash you use to buy another assets which can get you more passive income. This is what we call delayed gratification.
I believe that for you to totally understand the concept, you must play the game as often as possible. I also provide half an hour everyday to play the game, just to make sure that I have the right mindset about money, which is "make money work for us". Just click here to play the game. I you are not the member of Rich Dad, you have to register first. Don't worry, it is free. Enjoy!
It is a Cashflow 101. This game was invented by Robert T. Kiyosaki, one of my favorite author. For people who seek for financial knowledge, this game will give you a very practical understanding of your own finance. I believe most of us, we are either from a poor class or middle class people, and we have our own perception about money. One of it is, we always thought that we have to work harder to make more money.
This is where this amazing game came in. In order to change our financial level, we first have to change our attitude on money. This game teach us to think like the rich. The rich always think, if they want to make more money, they have to make sure the money work for them. Not like us, we work for the money.
In order to make money work for us, we must have some passive incomes. Passive income in this game where we get money by renting some properties. Most of us, we use our money to buy liabilities. Just bare in your mind, anything that can put money in your pocket is an asset, while anything that can take your money away is a liability. So, the strategy is to accumulate as much assets as possible to gain more passive income.
In this game, you will also learn about income statement and balance sheet. In the income statement, there will be your income amount and your expenses which both in form of monthly basis. Your income is determine by your profession which can be a doctor, web designer, school teacher, lawyer, pilot army and many more. If you a doctor, of course your income will be more, but your expenses also will be more. This is the truth in the real life. In the expenses part, it is where you have your taxes, home mortgage, school loan payment, car payment, credit card payment and many more.
For the balance sheet, this is where you put your assets and liabilities. Remember what I've told you about the difference between assets and liabilities. When you buy a property and it give you a positive cash flow every month, it is an assets. When you buy a car, and you need to pay the car monthly, it is obviously a liability to you. In order for you to get out of the rat race, you have to accumulate as much as possible assets that can give you a positive cash flow. Sometimes you have the opportunity to sell your assets and enable you to get more cash. That cash you use to buy another assets which can get you more passive income. This is what we call delayed gratification.
I believe that for you to totally understand the concept, you must play the game as often as possible. I also provide half an hour everyday to play the game, just to make sure that I have the right mindset about money, which is "make money work for us". Just click here to play the game. I you are not the member of Rich Dad, you have to register first. Don't worry, it is free. Enjoy!
Monday, June 14, 2010
The 4 Levels of Wealth
I started to thinking about getting rich is when I was 13 years old. I swear I knows nothing about life when I was in my primary schools. Everything was so nice and easy till I don't remember having any hard time. Then I get into one unique boarding school called SM Sultan Abdul Halim. The reasons my secondary school is so unique for me is due to its structures and landscapes.
I never found any school that is so different structurally(is this word exist?). There is mosque inside the school. There is big eye at the entrance. There is a medium-sized pond besides the eyes with a cute cottage-like structure. The building have numerous holes which I try to total up the sum of the holes but I forgot the numbers. The mosque shape is like a semi-cylinder coffin. There are three blocks for the male students to stay which from the top, its look like the tip of the satanic spears (the one like at MU's logo). I think if I study the whole structures of Jenan(this is the other name for my school), I can create a very mystical stories and relate it with the buildings. One more thing, there also a huge keris(Malay tradisional small sword) besides the hall(the hall's wall have a colorful geometric pattern). To make long story short, you better come to my school to experience it yourself.
We back to our business which is my personal money. When I'm in form 1 (13 years old), I really sure that I wanted to be rich so badly. Twice every month, my mom will come to visit me and give me RM50. My dad is so busy with his job that I don't think he got time for me. But I'm consider to be so lucky because most of my friends, their parents never come (because their home is very far). For a kids like me at that time, I always wondering how I'm going to pay back all the good deeds that my parents gave to me especially my mom. When I'm going to be independent? 13 years is a damn long period of time. And guess what, she keeps giving me pocket money till I'm 17. My father also do the same sometimes.
So, every night I keep on thinking about money. How to get it, how to make it more and how to protect it. That's when I develop this reading habits. I love to read books about money and self-improvement since I'm 13. I promise to myself to be rich and I want to give my parents the gift that no child can give. I want to bring my parents to Hajj and enjoy eating as much pistachios as we want, I want to bring them to Paris and let both of my parents fall in love for the second time, I want to bring my parents to Antarctic and make friends with the cute penguins and I want them to be the happiest parents in the world. How to do that? By becoming rich and wealthy.
Then I ask myself, what is rich? Do you know what is rich? In order to be rich, we all must have the clear understanding of wealth. Once we understand, then we can put our actions, ideas and time in order to be rich. According to one of my master(Adam Khoo), there are 4 levels of wealth.
Level number one is Financial Stability. The requirement to become Financial Stability is when you have accumulate liquid assets (like cash in hand or saving account) that enough for you to sustain your basic expenses for 6 months. This also include that you already have the required insurance if you have family in case something happen to you. For example if every month you need RM500 in order to have a very simple life(this example is just practical for students like me), that's mean you must have at least RM3000 in your saving account. If yes, you already achieve Financial Stability. Congratulation! So, now we need to move to the next level.
The second level of wealth is Financial Security. You have achieve Financial Security when you have a passive income that is equal to your expenses. Passive income means the side income that you get by very little involvement. It can be your online businesses, properties rental, multi level marketing, books royalties or many more. For example, if you have an online business, and your business can provide you with monthly net profits of RM500, you are already consider to achieve Financial Security. Our life just secure, but we need more than secure, right? We need more! (Just like Chipsmore) So,that's bring us to the next level.
This third level is what we call as Financial Freedom. This is what most people talk about. The benchmark to this level is when you already have enough passive incomes that enable you to live in a current lifestyle. You may need RM3000 in order to wear the branded shirt and jeans, driving your dreams car (Kancil is my dream's car as a student) and bring your girlfriends to shopping. That's means, if you stop working now, nothing happens to you. You can continue living your current lifestyle with your girlfriend(don't plan to have another one) because your passive income is working for you.
And lastly which is the ultimate level of wealth, is what we call as Financial Abundance. This is my ultimate dreams. In order to be in this level, you must have a lot of passive incomes which enough for you to life your life according to your fantasy. This is when the dreams come true. This is where the millionaires and billionaires are. In their life, they always busy with their vacation's planning and thinking what cars they want to drive for next month. Magically, most of them are still doing their work. Why? Because they love what they are doing and they keep on doing it even they already achieve Financial Abundance. To be clear, we must have an example. If you want to travel around the world every month, and you need at most RM20,000 for that, you must make sure that at least your monthly passive income is roughly around RM50,000 in order to cope with your imagination's lifestyle.
So, from this moment. If people ask you whether you want to be rich or not, you tell them that you want to be financial abundance. And, if they don't know what is financial abundance, tell them to read my blog. I'm just kidding, you teach them what that means. Cool?
p/s- Most people nowadays live like they are in Financial Abundance, but in reality they are not even in Financial Stability. This explain why they are always broke and they will broke till death.
I never found any school that is so different structurally(is this word exist?). There is mosque inside the school. There is big eye at the entrance. There is a medium-sized pond besides the eyes with a cute cottage-like structure. The building have numerous holes which I try to total up the sum of the holes but I forgot the numbers. The mosque shape is like a semi-cylinder coffin. There are three blocks for the male students to stay which from the top, its look like the tip of the satanic spears (the one like at MU's logo). I think if I study the whole structures of Jenan(this is the other name for my school), I can create a very mystical stories and relate it with the buildings. One more thing, there also a huge keris(Malay tradisional small sword) besides the hall(the hall's wall have a colorful geometric pattern). To make long story short, you better come to my school to experience it yourself.
We back to our business which is my personal money. When I'm in form 1 (13 years old), I really sure that I wanted to be rich so badly. Twice every month, my mom will come to visit me and give me RM50. My dad is so busy with his job that I don't think he got time for me. But I'm consider to be so lucky because most of my friends, their parents never come (because their home is very far). For a kids like me at that time, I always wondering how I'm going to pay back all the good deeds that my parents gave to me especially my mom. When I'm going to be independent? 13 years is a damn long period of time. And guess what, she keeps giving me pocket money till I'm 17. My father also do the same sometimes.
So, every night I keep on thinking about money. How to get it, how to make it more and how to protect it. That's when I develop this reading habits. I love to read books about money and self-improvement since I'm 13. I promise to myself to be rich and I want to give my parents the gift that no child can give. I want to bring my parents to Hajj and enjoy eating as much pistachios as we want, I want to bring them to Paris and let both of my parents fall in love for the second time, I want to bring my parents to Antarctic and make friends with the cute penguins and I want them to be the happiest parents in the world. How to do that? By becoming rich and wealthy.
Then I ask myself, what is rich? Do you know what is rich? In order to be rich, we all must have the clear understanding of wealth. Once we understand, then we can put our actions, ideas and time in order to be rich. According to one of my master(Adam Khoo), there are 4 levels of wealth.
Level number one is Financial Stability. The requirement to become Financial Stability is when you have accumulate liquid assets (like cash in hand or saving account) that enough for you to sustain your basic expenses for 6 months. This also include that you already have the required insurance if you have family in case something happen to you. For example if every month you need RM500 in order to have a very simple life(this example is just practical for students like me), that's mean you must have at least RM3000 in your saving account. If yes, you already achieve Financial Stability. Congratulation! So, now we need to move to the next level.
The second level of wealth is Financial Security. You have achieve Financial Security when you have a passive income that is equal to your expenses. Passive income means the side income that you get by very little involvement. It can be your online businesses, properties rental, multi level marketing, books royalties or many more. For example, if you have an online business, and your business can provide you with monthly net profits of RM500, you are already consider to achieve Financial Security. Our life just secure, but we need more than secure, right? We need more! (Just like Chipsmore) So,that's bring us to the next level.
This third level is what we call as Financial Freedom. This is what most people talk about. The benchmark to this level is when you already have enough passive incomes that enable you to live in a current lifestyle. You may need RM3000 in order to wear the branded shirt and jeans, driving your dreams car (Kancil is my dream's car as a student) and bring your girlfriends to shopping. That's means, if you stop working now, nothing happens to you. You can continue living your current lifestyle with your girlfriend(don't plan to have another one) because your passive income is working for you.
And lastly which is the ultimate level of wealth, is what we call as Financial Abundance. This is my ultimate dreams. In order to be in this level, you must have a lot of passive incomes which enough for you to life your life according to your fantasy. This is when the dreams come true. This is where the millionaires and billionaires are. In their life, they always busy with their vacation's planning and thinking what cars they want to drive for next month. Magically, most of them are still doing their work. Why? Because they love what they are doing and they keep on doing it even they already achieve Financial Abundance. To be clear, we must have an example. If you want to travel around the world every month, and you need at most RM20,000 for that, you must make sure that at least your monthly passive income is roughly around RM50,000 in order to cope with your imagination's lifestyle.
So, from this moment. If people ask you whether you want to be rich or not, you tell them that you want to be financial abundance. And, if they don't know what is financial abundance, tell them to read my blog. I'm just kidding, you teach them what that means. Cool?
p/s- Most people nowadays live like they are in Financial Abundance, but in reality they are not even in Financial Stability. This explain why they are always broke and they will broke till death.
Sunday, June 13, 2010
9 Habits Of The Millionaires
According to one of Adam's book, there are seven steps to become financially abundance. Now I only want to talk about the first step (I'll save the other steps for my next post). The first step is to adopt the million dollar mindset. Our mind is our biggest asset which it may determine how we manage our finance. If we have enough financial knowledge, then we can easily accumulate the other assets like properties and stocks. The most important thing is we can avoid big financial mistakes which can make us bankrupt. That is the worse financial scenario that can happen to a man.
Millionaire think differently than us, the average classes. For example, everyday when we do something in our life, we tend to face a lot of problems; like our house area have a lot of cockroaches and there are to much teenagers fooling around with their motorbikes. On the other hand, millionaires see this as a big opportunities. To be more specific, they see this problems as a money making opportunities; it is profitable if they made a pest control business and futsal court for the teens. This mindset is what we need to have.
Besides that, millionaires have another good mindset which they love failures. I know it sounds weird. But let me explain further. Most of use, we do financial mistakes. I also do some of it and I admit it. We experience being fooled by our friends to join the quick rich scheme. We experience being fooled by someone who pretend to be a rich multi level marketing businessman and convince use to join his pyramid scheme. (I know some MLM's companies are good). We also experience being fooled by someone from internet sending spam email asking use to pay RM50 so that we can get RM350 net profits in returns. This all are our failures. And because all of this failures, most of us just give up on their finance. They said, it is impossible to become a millionaire. But to the millionaires, they are actually make much bigger mistakes than us but they never give up or even sad. They look at it as a learning experience where they will never get fools anymore. Then they educate themselves with the knowledge of finance. And that is what we should do.
And if you already have both of the millionaire mindsets, it is not enough. You need to practice their habits. Below are their nine habits that we need to follow:
#1. Always exceed expectations
To be a millionaire, this is a must. Always exceed people's expectation. We must set a high standard if we want to do something. For example, if our business partner expected us to gain RM5000 net profits for a month, get more than that, make it RM10,000 at least. And if we own a business, and we provide a service to our clients, give them a life changing experience which is far beyond our competitor's standard. Then we can charge more. Most business people tend to think, if they reduce the price, they can become more competitive. This is wrong. Millionaires don't do this. They increase the price but, they triple the qualities and efficiencies. This is what clients want, they seek for qualities, not a cheap price.
2. Be proactive
Most people including me, always reactive. We wait for something to happen, then we act according to the situation. This what make our performance limited. We always depend on our environment and react from it. This is a totally different case to a millionaire. Millionaires are proactive. They don't wait for something miracle to happen, they are the one who make the miracle happen. Next time, we should be the one who control the situation. Be brave and smart at the same time.
3. Take 100% responsibility
Millionaires never depend on other people, they are the one who people's depend on.
4. Delayed gratification
Delayed gratification means you delay your joy. Save your money first. If you have a fix income, control your cash flow and save at least ten percent of it. You can't expect to start your own investment if you can't even save your own money. Most people, professionals especially, when they start working, they tend to have instant gratifications. They use half of their money to pay monthly installment for their latest BMW cars. They bring their beloved girlfriend to shopping. Long story short, they spend more than they invest. They will ended up broke. Millionaires don't do that. They save and invest much more than they spend. Initially, they just live a moderate lifestyle, when their assets provide enough passive income, then they can buy whatever they want without using their hard work money. This is their secret. (My father don't know this)
5. Do what you love
Adam give a very simple tips on how to know whether you love your job or not. Ask yourself all this questions. Do you want to do the job even if you have all the money in the world? Are you going to do that for free? If both of the answers are yes, then go on, you are on the right track to become a millionaire. I also still searching for the job that I love. I love to kill cockroaches because I hate cockroaches so much. I love to talk (you know me). I like to dreams. I like to read business books and self-improvement books. I like kids (I'm not saying that I'm ready for a kid). I like weird buildings. So, I must think of businesses that related with the things that I like. You should do the same. List all the things that you love and start thinking what business might suit you.
6. Acting with integrity
Always be honest. Why? Think of this. You take 20 years to build up your credibility and trust from your clients, but it only take 5 minutes of your dishonestly to destroy your credibility.
7. Be 100% committed
8. The ability to turn failure into success
It is not how far you fall that matters, it is how high you bounds back that matters.
9. Respect and love money
p/s- Being a millionaire is not easy, and that's why only 5% of the populations are millionaires. So, believe me. Don't afraid to be the minority because this minority are the one who control the majority.
Millionaire think differently than us, the average classes. For example, everyday when we do something in our life, we tend to face a lot of problems; like our house area have a lot of cockroaches and there are to much teenagers fooling around with their motorbikes. On the other hand, millionaires see this as a big opportunities. To be more specific, they see this problems as a money making opportunities; it is profitable if they made a pest control business and futsal court for the teens. This mindset is what we need to have.
Besides that, millionaires have another good mindset which they love failures. I know it sounds weird. But let me explain further. Most of use, we do financial mistakes. I also do some of it and I admit it. We experience being fooled by our friends to join the quick rich scheme. We experience being fooled by someone who pretend to be a rich multi level marketing businessman and convince use to join his pyramid scheme. (I know some MLM's companies are good). We also experience being fooled by someone from internet sending spam email asking use to pay RM50 so that we can get RM350 net profits in returns. This all are our failures. And because all of this failures, most of us just give up on their finance. They said, it is impossible to become a millionaire. But to the millionaires, they are actually make much bigger mistakes than us but they never give up or even sad. They look at it as a learning experience where they will never get fools anymore. Then they educate themselves with the knowledge of finance. And that is what we should do.
And if you already have both of the millionaire mindsets, it is not enough. You need to practice their habits. Below are their nine habits that we need to follow:
#1. Always exceed expectations
To be a millionaire, this is a must. Always exceed people's expectation. We must set a high standard if we want to do something. For example, if our business partner expected us to gain RM5000 net profits for a month, get more than that, make it RM10,000 at least. And if we own a business, and we provide a service to our clients, give them a life changing experience which is far beyond our competitor's standard. Then we can charge more. Most business people tend to think, if they reduce the price, they can become more competitive. This is wrong. Millionaires don't do this. They increase the price but, they triple the qualities and efficiencies. This is what clients want, they seek for qualities, not a cheap price.
2. Be proactive
Most people including me, always reactive. We wait for something to happen, then we act according to the situation. This what make our performance limited. We always depend on our environment and react from it. This is a totally different case to a millionaire. Millionaires are proactive. They don't wait for something miracle to happen, they are the one who make the miracle happen. Next time, we should be the one who control the situation. Be brave and smart at the same time.
3. Take 100% responsibility
Millionaires never depend on other people, they are the one who people's depend on.
4. Delayed gratification
Delayed gratification means you delay your joy. Save your money first. If you have a fix income, control your cash flow and save at least ten percent of it. You can't expect to start your own investment if you can't even save your own money. Most people, professionals especially, when they start working, they tend to have instant gratifications. They use half of their money to pay monthly installment for their latest BMW cars. They bring their beloved girlfriend to shopping. Long story short, they spend more than they invest. They will ended up broke. Millionaires don't do that. They save and invest much more than they spend. Initially, they just live a moderate lifestyle, when their assets provide enough passive income, then they can buy whatever they want without using their hard work money. This is their secret. (My father don't know this)
5. Do what you love
Adam give a very simple tips on how to know whether you love your job or not. Ask yourself all this questions. Do you want to do the job even if you have all the money in the world? Are you going to do that for free? If both of the answers are yes, then go on, you are on the right track to become a millionaire. I also still searching for the job that I love. I love to kill cockroaches because I hate cockroaches so much. I love to talk (you know me). I like to dreams. I like to read business books and self-improvement books. I like kids (I'm not saying that I'm ready for a kid). I like weird buildings. So, I must think of businesses that related with the things that I like. You should do the same. List all the things that you love and start thinking what business might suit you.
6. Acting with integrity
Always be honest. Why? Think of this. You take 20 years to build up your credibility and trust from your clients, but it only take 5 minutes of your dishonestly to destroy your credibility.
7. Be 100% committed
8. The ability to turn failure into success
It is not how far you fall that matters, it is how high you bounds back that matters.
9. Respect and love money
p/s- Being a millionaire is not easy, and that's why only 5% of the populations are millionaires. So, believe me. Don't afraid to be the minority because this minority are the one who control the majority.
Saturday, June 12, 2010
My rich dads and my poor dad.
Read the title carefully, and you will realize the existence of "s" at the rich dad and no "s" at the poor dad. It is not a typing error, it is what it meant to be. This issue is kind of sensitive since it's involve dad, and that means its involve family. Things I wanted to declare here is, when it comes to money, everything is personal. So, I do take money matters personally. Even when it comes to my dad.
If you know Robert Kiyosaki, this is where the original title came from which is "Rich Dad Poor Dad". He produce a lot of financial books which is far different than any financial books. Now, let's focus on the title. In my life, I have one poor dad which is my own dad. I have several rich dads which I don't think they know me, but as long as they teach me something useful about personal money, I will call them my rich dads.
My poor dad use money differently compare to my rich dads. He is a doctor and I believe his income is much more than average people. He don't buy any house even for us to stay or for renting purposes. We stay in a house inside a secondary school where my mother is working. We rent the house. Instead, my father use the money to buy a Mercedes C class which look so cool to him. I don't like car so much since I learn from Azizi Ali that car is nothing more than a tool to bring me from A to B so why should I spend half of my money for car. The truth is, my real father have no financial knowledge and this explain why he can't manage his own money very well.
Now, I wanted to introduce to you some of my rich dads. My first rich dad is Azizi Ali and he is a pilot. He has wrote many books especially in personal money management and properties. I know, since I am 20 years old and I have no experience buying a property, his book make me become really excited about properties investment. I really want to have a life like him. A moderate life but financially abundance. One day, I also want to write books and be a financial consultant like him. The best thing about him is, he is not a people from finance background (I told you he is a pilot) but he manage to take MBA and ChFC. I recommend you to read all his books. My favorite books from him is the properties combo pack which I not really understand some of it. I guess I need to read it again and again so that every lesson he thought really sticks in my mind.
My second rich dad is Robert T. Kiyosaki, which is the one who comes up with the phrase "Rich Dad Poor Dad". He teach me about the four cash flow quadrants which are employee, self employed, business owner and investor. I never know about this quadrant before I read his book. Now in my life, I wanted to be an investors, not an employee anymore. He also invent a cool board games called Cashflow 101 and Cashflow 202. Up to this moment, I just played the Cashflow 101, next time I'll try the 202 version. If you want to experience playing the game online, just click here. It is really fun for people who don't have a formal financial background like me to learn about income, expenses, assets and liabilities while playing the game. The best thing about this online game is, it is worldwide, so I also experience playing with people from Mexico, China, India and Africa. You better give it a try.
My third rich dad is Adam Khoo. He is from Singapore. This person is one of a brilliant student in his university. The good thing about him is he is so young and energetic. If I'm not mistaken, he manage to get his first million when his age just twenty something. Imagine how great his life would be. I wonder how he manage to have the spirit to do things differently than others. Some of the lesson that Adam teach me is about delay gratification. Rich people, they a people with patience. They don't buy expensive toys immediately even if they have money, instead they buy assets. This assets will make money work for them and enable them to own expensive toys without any burden. Adam also teach me about passive income and the power of leverage. A great example of passive income that apply the power of leverage is writing a book and use internet for marketing purposes. That is why I think, if I want to be rich, I must write books.
To make long story short, who ever my rich dads are, I will never love them more than my poor dad. I have a great dad and he is very responsible with whatever things that he do. I believe, I can't blame him why he don't have enough financial knowledge since this is one of the disadvantages of our education system. I hope I can be much better than my father in term of financial knowledge and my financial success. God bless me and my father.
If you know Robert Kiyosaki, this is where the original title came from which is "Rich Dad Poor Dad". He produce a lot of financial books which is far different than any financial books. Now, let's focus on the title. In my life, I have one poor dad which is my own dad. I have several rich dads which I don't think they know me, but as long as they teach me something useful about personal money, I will call them my rich dads.
My poor dad use money differently compare to my rich dads. He is a doctor and I believe his income is much more than average people. He don't buy any house even for us to stay or for renting purposes. We stay in a house inside a secondary school where my mother is working. We rent the house. Instead, my father use the money to buy a Mercedes C class which look so cool to him. I don't like car so much since I learn from Azizi Ali that car is nothing more than a tool to bring me from A to B so why should I spend half of my money for car. The truth is, my real father have no financial knowledge and this explain why he can't manage his own money very well.
Now, I wanted to introduce to you some of my rich dads. My first rich dad is Azizi Ali and he is a pilot. He has wrote many books especially in personal money management and properties. I know, since I am 20 years old and I have no experience buying a property, his book make me become really excited about properties investment. I really want to have a life like him. A moderate life but financially abundance. One day, I also want to write books and be a financial consultant like him. The best thing about him is, he is not a people from finance background (I told you he is a pilot) but he manage to take MBA and ChFC. I recommend you to read all his books. My favorite books from him is the properties combo pack which I not really understand some of it. I guess I need to read it again and again so that every lesson he thought really sticks in my mind.
My second rich dad is Robert T. Kiyosaki, which is the one who comes up with the phrase "Rich Dad Poor Dad". He teach me about the four cash flow quadrants which are employee, self employed, business owner and investor. I never know about this quadrant before I read his book. Now in my life, I wanted to be an investors, not an employee anymore. He also invent a cool board games called Cashflow 101 and Cashflow 202. Up to this moment, I just played the Cashflow 101, next time I'll try the 202 version. If you want to experience playing the game online, just click here. It is really fun for people who don't have a formal financial background like me to learn about income, expenses, assets and liabilities while playing the game. The best thing about this online game is, it is worldwide, so I also experience playing with people from Mexico, China, India and Africa. You better give it a try.
My third rich dad is Adam Khoo. He is from Singapore. This person is one of a brilliant student in his university. The good thing about him is he is so young and energetic. If I'm not mistaken, he manage to get his first million when his age just twenty something. Imagine how great his life would be. I wonder how he manage to have the spirit to do things differently than others. Some of the lesson that Adam teach me is about delay gratification. Rich people, they a people with patience. They don't buy expensive toys immediately even if they have money, instead they buy assets. This assets will make money work for them and enable them to own expensive toys without any burden. Adam also teach me about passive income and the power of leverage. A great example of passive income that apply the power of leverage is writing a book and use internet for marketing purposes. That is why I think, if I want to be rich, I must write books.
To make long story short, who ever my rich dads are, I will never love them more than my poor dad. I have a great dad and he is very responsible with whatever things that he do. I believe, I can't blame him why he don't have enough financial knowledge since this is one of the disadvantages of our education system. I hope I can be much better than my father in term of financial knowledge and my financial success. God bless me and my father.
Friday, June 11, 2010
You are greedy!
One lovely morning, you wake up and as usual, you open up your email and you found something wonderful. Out of nowhere, one anonymous guy send you an email asking help from you. That person wrote in your email that he is from Sudan, he now have a war back there, but he from a rich family. He have USD150 millions with him and he need your help to keep the money until everything back to normal again. In order for him to trust you, you just need to pay him USD100 to proof that you are reliable and can be trusted. Wow! Then you think USD100 is just nothing compare to USD150 millions. One more thing, he promise to give you 50 percent of the money as a way to thank you (he want to give you USD75 millions!). You thank to god because of the email.
You know what, you are greedy!
Another story.
One day, one of your best friends come to you. He said you are going to be rich because luckily he found a new type of investment which can double your investment in 6 months. He don't know exactly how they do it, but it is proof to be true. Last 6 months, he said he already paid them RM100 and now after 6 months he get back RM200. "See! Don't you get it? This thing can bring us to millionaires planet. ", that's how your best friend convincing you. He tell you more. "Imagine if we invest RM100, 000 and after half a year, we will get back RM200,000. And if we don't use the money, we invest it back, in a year we already accumulate RM400,000. What if we invest for 2 years? I already calculate it, we got RM1,600,000. That's mean we can be a millionaire in 2 years." Now you see the plan. But you don't have any money, but your parent have a house which cost RM150 000. That is more than enough.
You know what, you a greedy!
Now I will explain why I said you are greedy. In this world, people who want a lot of money without working, we call them greedy. That is both situations is all about. It's about you wanted to be rich without doing any work, just wait and get the money. That is not how this world work, no one will paid you money without you giving any benefit to them. But why people still believe in this both situations even they realize that it is weird?
They reason is because when people are greed, their mind cannot think. They only see the money. Logic don't exist anymore in their life. They live in Wonderland together with Alice. Their eyes had been closed by the huge amount of money. And they start to become stupid. Even the most genius person in the class can become a dumb ass when they become greedy.
Now I will explain to you about the first situation. It is all about the internet scam. Nothing real. Don't be greed. Just think wisely. If you were the Sudanese guy, and if you have USD150 millions with you, you will never ever give USD75 millions to no one just like that. It is way too much and why you risk you money to the person that you don't even know. For me, I better dig a secret hole and keep all the money inside it. I remember the coordinate and after everything turn back to normal, I'll dig it back. I just need to make sure that the hole is deep enough and I'm lucky enough to be save after the war. That's it.
The second story. It is what we call as a Quick-Rich-Scheme. Or QRS. It is just an acronym, nothing complicated. To be realistic, if I were you best friend and I really found that kind of investment, why should I tell you about that. I better invest it myself and when I got the money, I will give a thousand to all people that I know. And for you, I will give a million just because you are my best friend. Besides, the point why your friend asking you to join and pay the money because it is how that scheme work. They pay the previous people with the money from the new people that join it later. Even if this QRS really works, I believe the banks will bankrupt because everyone can be rich and no one need to lend money from them. Our government can't just let that happen.
So my advice, be realistic and don't ever greed because greedy people always poor. The millionaires, they are not greed. They work harder and smarter than anyone else, that is why they are rich. They even donate the money to lazy people who always dreams to be rich. But lazy people never learn. They keep on saying rich people are greed.
Thursday, June 10, 2010
Do things that you love, you will be rich and happy.
People is this world, they are so many type of them. If we take finance and happiness, we do simple matrix, we can have 4 types of people. There are people who rich and happy. There are people who poor but happy. There are people who rich but unhappy. There are people who poor and unhappy.
So, choose which group are you? I'm sure everyone wants to be the first type of people which is rich and happy. I also want to be rich and happy. One of the secret is stop forcing yourself to do the things that you hate. Do just the things that you like. And of course, that specific things must be beneficial to others as well. Think of the things that you love to do that you will even continue doing it just for free. This explain why millionaires continue "working" even they have tons of the green stuffs. They just love doing it.
If you love to study and love to teach others and you are very good at it and you are at the top of your class, go on. Continue what you are doing. I know some people (better said many) hate to study and they are forcing themselves doing it and for sure, they are sucks at it. You don't have to listen to this people. They just being envy with you. You are good because you like what you a doing. You might consider to be a teacher, lecturer or private tutor (I like this idea). In special cases, some people are good in doing what they hate the most, and that is a disasters.
Maybe you are sucks in your studies, you hate books and you hate using your brain to think. For you, thinking maybe just a waste of time, but you love futsal so much. When the watch shows 5pm, you are the most energetic person calling all your friends to play futsal. Good. That's futsal is your passion. You might not become a futsal star (if you feel you can, work on it), but you can train people to play futsal. You might open a futsal business with a futsal court, you can become coach for school team or teach young people some futsal tricks. It is so cool to play and make money at the same time, right?
Okay. I know, you are not both of the case. You are not intelligent and you are not good in sport. Hey, it is not the end of the world. You know how to play guitar. Not only know,but you are very good at it. Even your friends love to listen to you playing the guitar.So, what are you waiting for, start some guitar-business. You can teach people to play guitar. You know a lot about guitar, you may help some beginners choosing best guitar for them and get some cash from it. You might do a performance and get paid from it. See, you enjoying your hobbies and making money at the same time.
If your intelligence level is low, you hate sport and you don't have any talent, don't be sad. Think of the things that you enjoy doing it. You might enjoy killing cockroaches because you hate cockroaches so much, you might consider starting a pest control business. You enjoy your time being at the beach watching a beautiful sunset, you might consider opening a chalet near a beach as your business (I like this idea too). You enjoy fishing very much, why not opening some fishing ponds as a business.
I hope now you know what it makes to be rich and happy. I also have some plan to make me rich and happy in the future. In this moment, I'm just financially stable and happy, but I want more. I want to be financially abundance and happier than today. So do you, right? So, start plan from now because time never wait you, chase them and use them efficiently.
p/s- Be honest with yourself. God is fair. Everyone have their own strengths and weaknesses. Success people use their strengths to improve their live to be better. On the other hand, losers always complain about their weaknesses and never stop cursing success people envying their success life.
So, choose which group are you? I'm sure everyone wants to be the first type of people which is rich and happy. I also want to be rich and happy. One of the secret is stop forcing yourself to do the things that you hate. Do just the things that you like. And of course, that specific things must be beneficial to others as well. Think of the things that you love to do that you will even continue doing it just for free. This explain why millionaires continue "working" even they have tons of the green stuffs. They just love doing it.
If you love to study and love to teach others and you are very good at it and you are at the top of your class, go on. Continue what you are doing. I know some people (better said many) hate to study and they are forcing themselves doing it and for sure, they are sucks at it. You don't have to listen to this people. They just being envy with you. You are good because you like what you a doing. You might consider to be a teacher, lecturer or private tutor (I like this idea). In special cases, some people are good in doing what they hate the most, and that is a disasters.
Maybe you are sucks in your studies, you hate books and you hate using your brain to think. For you, thinking maybe just a waste of time, but you love futsal so much. When the watch shows 5pm, you are the most energetic person calling all your friends to play futsal. Good. That's futsal is your passion. You might not become a futsal star (if you feel you can, work on it), but you can train people to play futsal. You might open a futsal business with a futsal court, you can become coach for school team or teach young people some futsal tricks. It is so cool to play and make money at the same time, right?
Okay. I know, you are not both of the case. You are not intelligent and you are not good in sport. Hey, it is not the end of the world. You know how to play guitar. Not only know,but you are very good at it. Even your friends love to listen to you playing the guitar.So, what are you waiting for, start some guitar-business. You can teach people to play guitar. You know a lot about guitar, you may help some beginners choosing best guitar for them and get some cash from it. You might do a performance and get paid from it. See, you enjoying your hobbies and making money at the same time.
If your intelligence level is low, you hate sport and you don't have any talent, don't be sad. Think of the things that you enjoy doing it. You might enjoy killing cockroaches because you hate cockroaches so much, you might consider starting a pest control business. You enjoy your time being at the beach watching a beautiful sunset, you might consider opening a chalet near a beach as your business (I like this idea too). You enjoy fishing very much, why not opening some fishing ponds as a business.
I hope now you know what it makes to be rich and happy. I also have some plan to make me rich and happy in the future. In this moment, I'm just financially stable and happy, but I want more. I want to be financially abundance and happier than today. So do you, right? So, start plan from now because time never wait you, chase them and use them efficiently.
p/s- Be honest with yourself. God is fair. Everyone have their own strengths and weaknesses. Success people use their strengths to improve their live to be better. On the other hand, losers always complain about their weaknesses and never stop cursing success people envying their success life.
Wednesday, June 9, 2010
Beware of Dream's Killer!
I know everyone have their own dreams. It can be dreams about your finance, relationship, health, hobbies or anything. Whatever you plan to achieve in the future is a dream and dreams always different from people to people. Since my blog is about personal money management, of course I will talk about your financial dreams.
To be honest, my dreams financially is to be a millionaires when I'm 35. Millionaires to me means I have net assets of more than a million (can be from my businesses or my properties investment) and I'm living the life that I want.
I want to live in a moderate life. A moderate car which just comfortable and safe. A loyal,understanding and beautiful wife which always be with me when I'm up and down. Two kids which I can always tell them about my life experience and listen to their problems at school. I'm gonna give enough love to my wife and kids of course. Every month, I can bring my family traveling through out the world to admire the uniqueness of building that exist in this world.
I want to own some motels near beach in a beautiful island because I love beach so much. I love the wind. I love the sound of the wave. During holidays, my family can enjoy running businesses for the tourists. Have some BBQ for them and fun water sports like snorkeling, banana boat riding, deep water diving and lots more. My kids will have chance to learn some practical knowledge about running a business and learn how to appreciate the beauty of the nature.
So, this is some of my dreams. You may have your own dreams. And I know, it might be totally different than mine. Go ahead, dreams as much as you can because it is fun. It will be much more fun when your dreams come true and that is what all of us want.
Now we come to the main point. Things that you need to be careful is to whom you tell your dreams. Don't just tell it to everyone because you may ended up being upset. People will said that your dreams are ridiculous, stupid, illogical, waste of time and a lot more heart breaking words. They even may laugh at you and think you are nut. That's when you start to feel emotionally unmotivated and you start to forget all the dreams that you have been plan before. This is the moment where your dreams have been steal by a dream's killer.
Dream's killer might be anyone. It can be your best friends, your parent, your class mate or event your "best friends forever". I know they said that because they don't want to see you fail in your life because they love you. They don't mean to make you upset. They don't mean to be a "dream's killer". But this is reality, you have to be strong and tough. Rather than waste your time blaming the dream's killer because not supporting you, better focus on your dreams and achieving it. That's your ultimate goal.
My advise, keep on dreaming your financial freedom and working toward it. Equipped yourself with knowledge so that you don't have to repeat the same mistakes that previous people already experience. Read more books about money management. Everyone have their own life and no one have the power to create it except you yourself. So, have fun dreaming and enjoy working toward it. I hope our financial dreams will come true and we live a happy life. Ameen.
To be honest, my dreams financially is to be a millionaires when I'm 35. Millionaires to me means I have net assets of more than a million (can be from my businesses or my properties investment) and I'm living the life that I want.
I want to live in a moderate life. A moderate car which just comfortable and safe. A loyal,understanding and beautiful wife which always be with me when I'm up and down. Two kids which I can always tell them about my life experience and listen to their problems at school. I'm gonna give enough love to my wife and kids of course. Every month, I can bring my family traveling through out the world to admire the uniqueness of building that exist in this world.
I want to own some motels near beach in a beautiful island because I love beach so much. I love the wind. I love the sound of the wave. During holidays, my family can enjoy running businesses for the tourists. Have some BBQ for them and fun water sports like snorkeling, banana boat riding, deep water diving and lots more. My kids will have chance to learn some practical knowledge about running a business and learn how to appreciate the beauty of the nature.
So, this is some of my dreams. You may have your own dreams. And I know, it might be totally different than mine. Go ahead, dreams as much as you can because it is fun. It will be much more fun when your dreams come true and that is what all of us want.
Now we come to the main point. Things that you need to be careful is to whom you tell your dreams. Don't just tell it to everyone because you may ended up being upset. People will said that your dreams are ridiculous, stupid, illogical, waste of time and a lot more heart breaking words. They even may laugh at you and think you are nut. That's when you start to feel emotionally unmotivated and you start to forget all the dreams that you have been plan before. This is the moment where your dreams have been steal by a dream's killer.
Dream's killer might be anyone. It can be your best friends, your parent, your class mate or event your "best friends forever". I know they said that because they don't want to see you fail in your life because they love you. They don't mean to make you upset. They don't mean to be a "dream's killer". But this is reality, you have to be strong and tough. Rather than waste your time blaming the dream's killer because not supporting you, better focus on your dreams and achieving it. That's your ultimate goal.
My advise, keep on dreaming your financial freedom and working toward it. Equipped yourself with knowledge so that you don't have to repeat the same mistakes that previous people already experience. Read more books about money management. Everyone have their own life and no one have the power to create it except you yourself. So, have fun dreaming and enjoy working toward it. I hope our financial dreams will come true and we live a happy life. Ameen.
Tuesday, June 8, 2010
500 Businesses You Can Start!
The day I sat for my final examination paper for this Jan2010 semester, me and some of my batch mates went to Jusco Supermarket at Ipoh just to enjoy watching Prince of Persia at the cinema. Man, that movie was awesome. I rate if 5 stars. It's so cool and unpredictable.
Before the movie, at the ground floor there was a simple book fair. MPH make some discount sale just to finish up their old stocks. Then, while waiting for the movie, I just fooling around the book fair. Searching for some nice business books. I found the Azizi Ali book "Millionaires are from different planet" and another cool book which is from Adam, "Business You Can Start".
Actually, I want to buy both books, but since I have limited budget, so I decided to buy the Adam's book rather than Azizi Ali's book although I don't even know who the hell is this Adam. Next time I'll buy the "Millionaires are from different planet". This Adam's book is so unique. I never found such a practical business book like this before.
Just the summary of the book. This book consist of more than 500 types of businesses that we can start by our own. All the businesses is categorize according to their startup cost. From under USD1,000 to above USD40,000. Since it is from US, that's explain the currency used, but we can get the rough cost estimation by convert it to Ringgit Malaysia.
Back to the book. In each type of the businesses, it provide some description details about what is this business is all about, the start-up and the hidden costs. Potential earnings are also included. Besides, some businesses need specific qualification and equipments which also stated in each business profile. The best thing among all is this book also provide some marketing and advertising tips for best results from the businesses.
I bought this book for only RM20 but after I've read a quarter of it, I think this book is priceless. I'm so lucky to have this book and hopefully I can optimize the benefit of it by apply the knowledge in my real life.
p/s- Buy books during sales and discount!! It is damn cheap.. :)
Before the movie, at the ground floor there was a simple book fair. MPH make some discount sale just to finish up their old stocks. Then, while waiting for the movie, I just fooling around the book fair. Searching for some nice business books. I found the Azizi Ali book "Millionaires are from different planet" and another cool book which is from Adam, "Business You Can Start".
Actually, I want to buy both books, but since I have limited budget, so I decided to buy the Adam's book rather than Azizi Ali's book although I don't even know who the hell is this Adam. Next time I'll buy the "Millionaires are from different planet". This Adam's book is so unique. I never found such a practical business book like this before.
Just the summary of the book. This book consist of more than 500 types of businesses that we can start by our own. All the businesses is categorize according to their startup cost. From under USD1,000 to above USD40,000. Since it is from US, that's explain the currency used, but we can get the rough cost estimation by convert it to Ringgit Malaysia.
Back to the book. In each type of the businesses, it provide some description details about what is this business is all about, the start-up and the hidden costs. Potential earnings are also included. Besides, some businesses need specific qualification and equipments which also stated in each business profile. The best thing among all is this book also provide some marketing and advertising tips for best results from the businesses.
I bought this book for only RM20 but after I've read a quarter of it, I think this book is priceless. I'm so lucky to have this book and hopefully I can optimize the benefit of it by apply the knowledge in my real life.
p/s- Buy books during sales and discount!! It is damn cheap.. :)
Sunday, June 6, 2010
Must, Important, Nice and Useless.
I'm back after stop blogging for 4 months. The reason is because I have some academic plan for my Jan2010 semester (the semester I've just finished) in order to improve my cgpa and hopefully my hard work will be paid. Now I'm at my home in Sik, Kedah and do nothing except eating, sleeping and surfing internet.
Today,I planned to register my account for ASB at the post office but the registration form had already finish, so maybe I'll try again next week or after a couple of days. Next, on the way back to my home, I drop at the public library. Maybe I can spend some time reading some business books there. And look for some interesting book.
Then, I grab a book from Azizi Ali (my idol) entitle The Millionaire Chronicle, and read some of it. Now I going to share with you a simple tips from him. This tip is about personal money management. How you can reduce you expenses by 10 to 20 percent. It is very simple.
First, you must know the different between a "must", "important", "nice" and "useless". The reason why you must really understand this is because you will apply this when buying things. Most people just spend their money without considering this categories. Next time you go for shopping, categorize the items you want to buy based on this four categories.
You must be wondering what is the real meaning of "must", "important", "nice" and "useless". "Must" is something that you really need to buy whether you like it or not. This can be foods or cloth. "Importance" is things that meaningful to you and can improve your life, make you happier and healthier. It can be activities like traveling or sports. "Nice" is something that you like it but to own it, it is a burden for you. Like luxurious car. And the last thing is "useless", it bring no good for you and just harm like cigarettes.
This thing is very subjective. It is different from everyone. For a student like me, buying a car is "nice" since I already have a motorcycle, but for people who just get married, having a car is a "must". So, think wisely and be honest with yourself. Never compare yourself with others. For a moderate income people, buying a Lamborghini is "useless" but for a billionaire, it is a "must".
For your spending, eliminate all the "nice" and "useless" things, you will be shocked by how much money you can save by doing this. That money you can use for "must" and "important" things or just save it for your future.
Today,I planned to register my account for ASB at the post office but the registration form had already finish, so maybe I'll try again next week or after a couple of days. Next, on the way back to my home, I drop at the public library. Maybe I can spend some time reading some business books there. And look for some interesting book.
Then, I grab a book from Azizi Ali (my idol) entitle The Millionaire Chronicle, and read some of it. Now I going to share with you a simple tips from him. This tip is about personal money management. How you can reduce you expenses by 10 to 20 percent. It is very simple.
First, you must know the different between a "must", "important", "nice" and "useless". The reason why you must really understand this is because you will apply this when buying things. Most people just spend their money without considering this categories. Next time you go for shopping, categorize the items you want to buy based on this four categories.
You must be wondering what is the real meaning of "must", "important", "nice" and "useless". "Must" is something that you really need to buy whether you like it or not. This can be foods or cloth. "Importance" is things that meaningful to you and can improve your life, make you happier and healthier. It can be activities like traveling or sports. "Nice" is something that you like it but to own it, it is a burden for you. Like luxurious car. And the last thing is "useless", it bring no good for you and just harm like cigarettes.
This thing is very subjective. It is different from everyone. For a student like me, buying a car is "nice" since I already have a motorcycle, but for people who just get married, having a car is a "must". So, think wisely and be honest with yourself. Never compare yourself with others. For a moderate income people, buying a Lamborghini is "useless" but for a billionaire, it is a "must".
For your spending, eliminate all the "nice" and "useless" things, you will be shocked by how much money you can save by doing this. That money you can use for "must" and "important" things or just save it for your future.
Saturday, February 6, 2010
Stop buying cigarettes!
This tips is so simple that I believe every single person of you can follow it. Whether you are boys or girls. To be honest, I'm a smoker too but just an occasional smoker. Smoking is good for me because when I smoke, I feel so relax and calm, the high feeling is so good. But, that feeling can't be compare with love. Love feeling is far more cool than the feeling of smoke. The point I want to stress here is STOP BUYING CIGARETTES!, I'm not saying stop smoking or stop ask your friends a cigarette.
Why I'm telling this in my personal money blog? It just simple, you need money to buy cigarette, that's mean when you buy cigarette you waste your money. Don't believe? You burn your money. Both are same whether you buy cigarettes or you burn your money. For you to realize, I take myself as an example. I love Marlboro Light and Winston Light. I use to smoke minimum once a day. Roughly one box of 14 Marlboro Light cost me around RM7 and it can last for one week. In a month I already waste RM28. In one year I waste (searching for my calculator) RM336. In one decade I waste RM3360. Do you realize If I continue buying Marlboro Light for the next 10 years, it will cost me a motorbike. But if you smoke Dunhill, it might cost you a superbike!
So, how to do this? Let's start by not spending any of our penny on smoke. If you feel to smoke, ask from you friends who have some. If they don't have it, DON'T SMOKE! Smoking is nothing but wasting your money and damage you body. Do you know smoking can reduce you sexual strength and you production system? I don't want that to happen to me. I want to make sure my wife are the luckiest person on earth because she got me. The same goes to you. Don't sacrifice you health just for the damn smoke.
What else to do other than smoke? Go for sports. Find your dream soul mate. Read novels. Join some outdoor activities. Go for hiking. Go swim at the waterfall. Go picnic at the beach. Attend motivational or career seminar. Do part time job. Hang out with your friends watching sunset. Make a camp fire and enjoy singing till late night. Join martial art club. See! There are more other things that are better than smoke. You just need to love yourself, and enjoy doing something that brings benefit to you.
Why I'm telling this in my personal money blog? It just simple, you need money to buy cigarette, that's mean when you buy cigarette you waste your money. Don't believe? You burn your money. Both are same whether you buy cigarettes or you burn your money. For you to realize, I take myself as an example. I love Marlboro Light and Winston Light. I use to smoke minimum once a day. Roughly one box of 14 Marlboro Light cost me around RM7 and it can last for one week. In a month I already waste RM28. In one year I waste (searching for my calculator) RM336. In one decade I waste RM3360. Do you realize If I continue buying Marlboro Light for the next 10 years, it will cost me a motorbike. But if you smoke Dunhill, it might cost you a superbike!
So, how to do this? Let's start by not spending any of our penny on smoke. If you feel to smoke, ask from you friends who have some. If they don't have it, DON'T SMOKE! Smoking is nothing but wasting your money and damage you body. Do you know smoking can reduce you sexual strength and you production system? I don't want that to happen to me. I want to make sure my wife are the luckiest person on earth because she got me. The same goes to you. Don't sacrifice you health just for the damn smoke.
What else to do other than smoke? Go for sports. Find your dream soul mate. Read novels. Join some outdoor activities. Go for hiking. Go swim at the waterfall. Go picnic at the beach. Attend motivational or career seminar. Do part time job. Hang out with your friends watching sunset. Make a camp fire and enjoy singing till late night. Join martial art club. See! There are more other things that are better than smoke. You just need to love yourself, and enjoy doing something that brings benefit to you.
Sunday, January 31, 2010
Don't show to people that you are rich!
My point here is, even if you have a lot of money, don't show to people that you have a lot of money. This is very dangerous. The reason I'm telling you this is, based on my own experience, bad people love to rob people with a lot of money. They don't care what race you are, what is your age and what contribution you have done to the society, they want your money. I know it's not fair, your money is yours. It is your effort, you work hard to get it.
This bastard people, they are lazy. They don't want to work hard to get money. They think rich people are cruel. But they are the one who cruel. They think rich people take money from society and that's the only reason why they are poor. Their mindset is, you don't deserve to be rich while they are poor. I hate to say this, but this is reality. This type of people really exist and they are many in this world. This people observe you everyday and they can be your close friends.
How to do that? Live your life moderately and don't show off. Be low profile. I know most of you have a lot of money, and when you work harder, you are getting much more money. But don't make it too obvious. Don't buy luxuries car, don't wear branded stuff, don't show your thick wallet when you want to drinks at Mamak stall, don't tell your friends to much about your asset, don't buy expensive gadget and much more "don't show off" things. The point is simple, if you are so stubborn and do all the don't things that I'm telling you. I bet you are inviting those bad people to rob you. You expensive stuff saying "Come take my money, I'm rich, I have a lot of money"
Why I'm telling you this? Not because I don't want you to look successful, just because I love my readers. I don't want you to get robbed. My father last two nights got robbed and I really learn the lesson. He use Mercedes Benz C200 Kompressor. He is a doctor and he has his own clinics. His minimum monthly salaries is five digits. I know most of you are richer than him when you start working. The point is, I don't want this thing to happen to me and also to you. Live moderately and enjoy your money for other things than to "show off". Your life will me much more meaningful.
p/s- I really love my father, he is not a perfect man, so do I. But I will follow what good things in him and I change what bad things he does. You must do the same!
This bastard people, they are lazy. They don't want to work hard to get money. They think rich people are cruel. But they are the one who cruel. They think rich people take money from society and that's the only reason why they are poor. Their mindset is, you don't deserve to be rich while they are poor. I hate to say this, but this is reality. This type of people really exist and they are many in this world. This people observe you everyday and they can be your close friends.
How to do that? Live your life moderately and don't show off. Be low profile. I know most of you have a lot of money, and when you work harder, you are getting much more money. But don't make it too obvious. Don't buy luxuries car, don't wear branded stuff, don't show your thick wallet when you want to drinks at Mamak stall, don't tell your friends to much about your asset, don't buy expensive gadget and much more "don't show off" things. The point is simple, if you are so stubborn and do all the don't things that I'm telling you. I bet you are inviting those bad people to rob you. You expensive stuff saying "Come take my money, I'm rich, I have a lot of money"
Why I'm telling you this? Not because I don't want you to look successful, just because I love my readers. I don't want you to get robbed. My father last two nights got robbed and I really learn the lesson. He use Mercedes Benz C200 Kompressor. He is a doctor and he has his own clinics. His minimum monthly salaries is five digits. I know most of you are richer than him when you start working. The point is, I don't want this thing to happen to me and also to you. Live moderately and enjoy your money for other things than to "show off". Your life will me much more meaningful.
p/s- I really love my father, he is not a perfect man, so do I. But I will follow what good things in him and I change what bad things he does. You must do the same!
Thursday, January 28, 2010
Use transportation wisely, limit your top up usage and avoid junk foods.
Tonight I want to share with you some tips how you can cut down some of your daily expenses without making your life less enjoyable. Some of this tips is so common but most people don't practice it. All you need is just a positive attitude about saving your money and a good discipline. Stick with this simple tips and I think your life will be fun and difference than before.
First things is about your transportation. Most people nowadays have cars. And they is nothing wrong with having a car. What I'm advising you to do is only use your car if you really need to use it. Make it a last option for your transportation. If you only want to go to the shop nearby, better walk or use motorbike. It is fun to walk and meet new people. Smile to them. Ask them how they are doing. For students, if you want to go to lectures, walk is the best option. Unless if your lecture class is so far away. You can enjoy watching and knowing many beautiful girls and handsome guys on the way to the lecture. It's also healthy for you. Walk can really burn down your calories. You will shock at the end of the month how much you can save for your petrol and also how much your weight loss.
The second thing is your top up. Most people don't set a limit for their top up. They just buy the new one if it's already finish. This is not good. You better set some exact amount to limit your top up usage. My advice is you just use your phone only for important things. And if you are messaging or calling people, make it a simple and straight to the point conversation. If you just want to message or call your girlfriend or boyfriend, I think it's really waste your money. You better meet them face to face. It is much more romantic and fun. You can stare at their face and you can talk as long as you want. It is much more enjoyable than you are sending them messages or calling them. And the best thing is it is free. So from now onward, stop messaging or calling you love one, just meet them and spend time with them doing enjoyable activities. I bet you will save a lot and your relationship will be much better than before.
My last advice for tonight is about your food. Don't eat junk foods. Its a real waste of money and you can be fat because of it. Make sure you take food smartly. Eat on time. Never skip meals. Follow the balance diet, make sure your food have carbohydrates, proteins, fiber, vitamins, minerals and small amount of salt and fat. This is what your body need. Not a junk food with high level of salt and fats. Even they are delicious, just imagine yourself become obesity just because of that junk foods. You don't want that, right? So, start from this moment, eat a balance diet and save your money by not buying any junk foods.
First things is about your transportation. Most people nowadays have cars. And they is nothing wrong with having a car. What I'm advising you to do is only use your car if you really need to use it. Make it a last option for your transportation. If you only want to go to the shop nearby, better walk or use motorbike. It is fun to walk and meet new people. Smile to them. Ask them how they are doing. For students, if you want to go to lectures, walk is the best option. Unless if your lecture class is so far away. You can enjoy watching and knowing many beautiful girls and handsome guys on the way to the lecture. It's also healthy for you. Walk can really burn down your calories. You will shock at the end of the month how much you can save for your petrol and also how much your weight loss.
The second thing is your top up. Most people don't set a limit for their top up. They just buy the new one if it's already finish. This is not good. You better set some exact amount to limit your top up usage. My advice is you just use your phone only for important things. And if you are messaging or calling people, make it a simple and straight to the point conversation. If you just want to message or call your girlfriend or boyfriend, I think it's really waste your money. You better meet them face to face. It is much more romantic and fun. You can stare at their face and you can talk as long as you want. It is much more enjoyable than you are sending them messages or calling them. And the best thing is it is free. So from now onward, stop messaging or calling you love one, just meet them and spend time with them doing enjoyable activities. I bet you will save a lot and your relationship will be much better than before.
My last advice for tonight is about your food. Don't eat junk foods. Its a real waste of money and you can be fat because of it. Make sure you take food smartly. Eat on time. Never skip meals. Follow the balance diet, make sure your food have carbohydrates, proteins, fiber, vitamins, minerals and small amount of salt and fat. This is what your body need. Not a junk food with high level of salt and fats. Even they are delicious, just imagine yourself become obesity just because of that junk foods. You don't want that, right? So, start from this moment, eat a balance diet and save your money by not buying any junk foods.
Wednesday, January 27, 2010
Don't waste too much money chasing technologies!
Today I want to talk about technologies. This is what this era is all about. People who can't cope with new technologies are consider left behind. Everyday life involve it. You can't run from it. Communication, networking, business, learning and others. Internet is one of the greatest technology. This is the era where no barriers and unlimited access to information. But most people waste too much money to own it rather than use it to the maximum level.
One of the example is gadgets. Cell phones especially. Nowadays new phone is like mini computer. It is equipped with a lot of things. High mega pixel camera, 3G network, touchscreen, wi-fi, GPRS, bluetooth and a lot more stuff which getting better and better in term of it's abilities and performance. This things what make the gadgets far more expensive than others. My advice, don't buy this gadgets just because you want to have the latest technology and feel proud to show off to your friends. Most people buy the latest gadgets and don't even make full use of its ability. On the other hand, if you really want to make use of it, so go on. Buy one. It's really can benefit you a lot. For me, my phone is just enough to call and text my friends. That's all I need for my phone.
Other things is your personal computer. People dare to spend thousands just to make sure their computer standard is up to date. They want the best graphic card, the best processor, highest watt for power supply, original and latest operating system, high RAM and more other stuff that I don't even know why they bought it. Obviously all this thing mostly useful only for gaming and to much playing games is a waste of time. You can play game to have fun but don't be too fanatic. The virtual world of gaming will control your life and you will lose the real world. Just buy a personal computer with moderate abilities which just enough for you to do your works done perfectly and play some games.
Other things is internet. Make full use of it. It is so cheap till most people tend to take it for granted. They only use it for email and surfing social networking website. You can save a lot by using internet. You can read online newspapers for free. So no need to buy newspapers. You can get info about almost anything you want to know for free. But make sure it is from a reliable and credited sources. Some free information can really change your life. You can learn how to improve your study and make it more effective, you can learn how to get rid of your fat and stay in shape all the time, you can learn how to become a good leader and you also can learn how to do business. All this things if free and this is the reasons some people can become so successful even they don't have money. Internet make it possible.
One of the example is gadgets. Cell phones especially. Nowadays new phone is like mini computer. It is equipped with a lot of things. High mega pixel camera, 3G network, touchscreen, wi-fi, GPRS, bluetooth and a lot more stuff which getting better and better in term of it's abilities and performance. This things what make the gadgets far more expensive than others. My advice, don't buy this gadgets just because you want to have the latest technology and feel proud to show off to your friends. Most people buy the latest gadgets and don't even make full use of its ability. On the other hand, if you really want to make use of it, so go on. Buy one. It's really can benefit you a lot. For me, my phone is just enough to call and text my friends. That's all I need for my phone.
Other things is your personal computer. People dare to spend thousands just to make sure their computer standard is up to date. They want the best graphic card, the best processor, highest watt for power supply, original and latest operating system, high RAM and more other stuff that I don't even know why they bought it. Obviously all this thing mostly useful only for gaming and to much playing games is a waste of time. You can play game to have fun but don't be too fanatic. The virtual world of gaming will control your life and you will lose the real world. Just buy a personal computer with moderate abilities which just enough for you to do your works done perfectly and play some games.
Other things is internet. Make full use of it. It is so cheap till most people tend to take it for granted. They only use it for email and surfing social networking website. You can save a lot by using internet. You can read online newspapers for free. So no need to buy newspapers. You can get info about almost anything you want to know for free. But make sure it is from a reliable and credited sources. Some free information can really change your life. You can learn how to improve your study and make it more effective, you can learn how to get rid of your fat and stay in shape all the time, you can learn how to become a good leader and you also can learn how to do business. All this things if free and this is the reasons some people can become so successful even they don't have money. Internet make it possible.
Monday, January 25, 2010
Live your life moderately.
When I said "Live your life moderately", I refer to you life in term of financially. Spend your money moderately and smartly. Don't get me wrong. I'm not saying that you can't live your life to the fullest. Go on. Enjoy the most in every moment in your life. You deserve it. I'm also enjoying my life to the fullest. When you want to live your life to the fullest, it doesn't mean you have to sacrifice all the money that you have. You just need to make full use of it and make sure it is the optimum ways to spend.
For example, many people are so obsess with branded clothes. They thought the more expensive the cloth is, the more quality it is. Sometimes, they are willing to pay more than RM200 for just a pair of jeans. I think they are wrong and a little bit stupid. You can get a pair of jeans for just less than RM50. Mine just RM39. All the jeans are just the same for me whether they are branded or not. One of my friend tell me that people will notice the brand of cloth that you wear. Actually, the real thing is no one will look at your brand tag and they don't even care what brand you wear as long as you are not naked in front of them.
Next example is about cars. People lost a lot of money for their cars. Some people are willing to be hungry just to make sure they can buy a luxury car like Mercedes Benz, BMW, Porsche, Ferrari or Lamborghini. This people they love their car more than they love other living creatures. Some of them don't even have their own house just because most of their money are use to pay the car installment. Other people thought these type of people are the successful people, but the truth is their life is full of misery. They even can't give enough love to their children because they always work more to pay the car and got no time for their family.
This two examples is about people who have an extreme life financially. They don't want to have a moderate life. Their life will never feel peaceful and their money will never enough. Debt will be their best friend forever. Just be simple. Live moderately. You will be shock after you realize how much you can do with your money if you spend it smartly. Be a smart consumers. Don't be a retard with full of egos.
For example, many people are so obsess with branded clothes. They thought the more expensive the cloth is, the more quality it is. Sometimes, they are willing to pay more than RM200 for just a pair of jeans. I think they are wrong and a little bit stupid. You can get a pair of jeans for just less than RM50. Mine just RM39. All the jeans are just the same for me whether they are branded or not. One of my friend tell me that people will notice the brand of cloth that you wear. Actually, the real thing is no one will look at your brand tag and they don't even care what brand you wear as long as you are not naked in front of them.
Next example is about cars. People lost a lot of money for their cars. Some people are willing to be hungry just to make sure they can buy a luxury car like Mercedes Benz, BMW, Porsche, Ferrari or Lamborghini. This people they love their car more than they love other living creatures. Some of them don't even have their own house just because most of their money are use to pay the car installment. Other people thought these type of people are the successful people, but the truth is their life is full of misery. They even can't give enough love to their children because they always work more to pay the car and got no time for their family.
This two examples is about people who have an extreme life financially. They don't want to have a moderate life. Their life will never feel peaceful and their money will never enough. Debt will be their best friend forever. Just be simple. Live moderately. You will be shock after you realize how much you can do with your money if you spend it smartly. Be a smart consumers. Don't be a retard with full of egos.
Sunday, January 24, 2010
If you feel tension, don't go for SHOPPING!
This is what I believe and I want you to believe it too start from this moment. Sadly, this is what I saw most of my friends do when they are under pressure and I believe most people outside also will do the same. Especially girls. My opinion, if you girls go for shopping and buying new cloths and hoping for boys to look at you. You are just wasting your money. Dudes don't look at your cloths, we look at your body or your face. Sorry, I just trying to be honest here.
So, stop wasting your money now. How to release your tension without spending any penny? Make new friends. Go outside. Start talking to strangers. Try to be generous with your words. Exchange ideas. It will be fun and crazy. Then you will start to listen to other people problems. And the most important thing is, their problems are far bigger than yours. But they still look happy and laughing all the time. After that you will see your problems as nothing compare to them. You will start thanking to God. And, that's good for you.
What else can you do? Go for sports. Everyone love sports. It's fun and healthy. You got no reasons not to play sports. If you never enjoy sports before, don't worry. You can start at any time. Try go for jogging or running. It is the best sport ever because you are using all your limbs and muscles. Besides, it is for sure free of charge. Unless if you don't have any sport attire and a pair of sport shoes, you must get one. While you jogging, you can make new friends and enjoy the beautifulness of the nature. Now you realize that a lot of good things are free. Shopping do cost you money.
The best thing to do if you are in pressure is to share you problems. Shopping will not solve your problems. Instead, it will make new problem for you which is you are out of money. Go find any friend. Make sure your friend is the one who always supporting you and a good listener. Or else, you will be more tension when your friend start condemn you and laughing at your problems. It doesn't matter wheather it is the same sex with you or not. Make sure you tell your friends everything about the problems and I guaranteed you will be happier than before even if your friends can't suggest you any solution. Give it a try.
So, stop wasting your money now. How to release your tension without spending any penny? Make new friends. Go outside. Start talking to strangers. Try to be generous with your words. Exchange ideas. It will be fun and crazy. Then you will start to listen to other people problems. And the most important thing is, their problems are far bigger than yours. But they still look happy and laughing all the time. After that you will see your problems as nothing compare to them. You will start thanking to God. And, that's good for you.
What else can you do? Go for sports. Everyone love sports. It's fun and healthy. You got no reasons not to play sports. If you never enjoy sports before, don't worry. You can start at any time. Try go for jogging or running. It is the best sport ever because you are using all your limbs and muscles. Besides, it is for sure free of charge. Unless if you don't have any sport attire and a pair of sport shoes, you must get one. While you jogging, you can make new friends and enjoy the beautifulness of the nature. Now you realize that a lot of good things are free. Shopping do cost you money.
The best thing to do if you are in pressure is to share you problems. Shopping will not solve your problems. Instead, it will make new problem for you which is you are out of money. Go find any friend. Make sure your friend is the one who always supporting you and a good listener. Or else, you will be more tension when your friend start condemn you and laughing at your problems. It doesn't matter wheather it is the same sex with you or not. Make sure you tell your friends everything about the problems and I guaranteed you will be happier than before even if your friends can't suggest you any solution. Give it a try.
Saturday, January 23, 2010
Only 10% of your salary is for your car monthly installment.
This statement make me shock. Who told me this? Azizi Ali and Ridzuan Hafiz. Ridzuan Hafiz is one of the best MAA consultant I've ever known. And both of them really master their personal money management in their life. They are not the richest people on planet, but both of them really have a stable life financially. Then I try to be positive, and ask myself the reason behind this weirdness?
When you buy a car, you have to got some important points in your mind. Car is one of your liabilities and its price will always reduce by time. Its need petrol to move and that's mean more money come out from your pocket. You also need to service it to maintain the performance and again you need more money for you car. Its obviously not a great investment tool. Most important thing is you buy it because you need it as your transportation, not as an adult toys that you plan to show off to you friends.
I take mine as an example here. After I graduate, my basic monthly salaries from PETRONAS maybe around RM3500. At this moment that is the average salaries that other graduates got. So, 10% of it is only RM350. This mean I can't afford to buy Mercedes or BMW car straightly after I graduate. The best car to buy seems like Kancil, Satria, Viva or Kelisa. And that's fine for me. I can really save my money a lot by using one of this car especially Viva.
To compare with what most people do. After they graduate and start working. They will straightly buy expensive car like BMW or Mercedes. And, they will show off to all their friends and telling them how successful they are now. Then, after two to three month, this "successful proof" become a real burden to them. They work hard everyday just to pay their car installment. They can't sleep every night thinking of car's debt. Their life is full of pressure. And, they continue to recommend their friends to do the same (by buying expensive cars) and feel their "happy" and "successful" life.
So now, I totally agreed with this statement. How about you? Go for Viva!
When you buy a car, you have to got some important points in your mind. Car is one of your liabilities and its price will always reduce by time. Its need petrol to move and that's mean more money come out from your pocket. You also need to service it to maintain the performance and again you need more money for you car. Its obviously not a great investment tool. Most important thing is you buy it because you need it as your transportation, not as an adult toys that you plan to show off to you friends.
I take mine as an example here. After I graduate, my basic monthly salaries from PETRONAS maybe around RM3500. At this moment that is the average salaries that other graduates got. So, 10% of it is only RM350. This mean I can't afford to buy Mercedes or BMW car straightly after I graduate. The best car to buy seems like Kancil, Satria, Viva or Kelisa. And that's fine for me. I can really save my money a lot by using one of this car especially Viva.
To compare with what most people do. After they graduate and start working. They will straightly buy expensive car like BMW or Mercedes. And, they will show off to all their friends and telling them how successful they are now. Then, after two to three month, this "successful proof" become a real burden to them. They work hard everyday just to pay their car installment. They can't sleep every night thinking of car's debt. Their life is full of pressure. And, they continue to recommend their friends to do the same (by buying expensive cars) and feel their "happy" and "successful" life.
So now, I totally agreed with this statement. How about you? Go for Viva!
Friday, January 22, 2010
When you buy, pay cash!
Yup, and that's mean no credit card. When I say cash, I mean the real money in your wallet, not the plastic rectangle money with numbers and your signature on it. I know many people will not agree with me, but I bet your action are wrong. YOU ARE WRONG!
What I'm going to tell you is nothing but the real truth. This is one of the best way to avoid bad debt. Bad debt is when you buy liabilities. Liabilities are all things that bring your money out. Cars, petrol, cloths, shoes, cigarettes and many more. All that stuff bring your money out, not in.
The reason I want you to use cash instead of credit card is to make sure you spend less than what you earn. Most people who use cash will stop buying when there is no more cash left in their wallet. On the other hand, people who use credit card, their buying power are unlimited. They can buy whatever they want by just paying the minimum credit card payment every month. Most people thought there are the smartest when they use credit card but the real thing is they are stupid. And no one care whether they pay using cash or credit card.
But, there is other option if you still want to use card instead of cash. Maybe cash is not so flexible because difference country have different currency . It's also dangerous to bring a lot of money in cash if you plan to buy an expensive stuff. So, use DEBIT CARD. This is the magic card where you put your money inside the card's account and you can only use up to the amount available in the account. Means you still spend less than what you earn. So, say "Hye" to debit card and say "Go away!" to credit card.
What I'm going to tell you is nothing but the real truth. This is one of the best way to avoid bad debt. Bad debt is when you buy liabilities. Liabilities are all things that bring your money out. Cars, petrol, cloths, shoes, cigarettes and many more. All that stuff bring your money out, not in.
The reason I want you to use cash instead of credit card is to make sure you spend less than what you earn. Most people who use cash will stop buying when there is no more cash left in their wallet. On the other hand, people who use credit card, their buying power are unlimited. They can buy whatever they want by just paying the minimum credit card payment every month. Most people thought there are the smartest when they use credit card but the real thing is they are stupid. And no one care whether they pay using cash or credit card.
But, there is other option if you still want to use card instead of cash. Maybe cash is not so flexible because difference country have different currency . It's also dangerous to bring a lot of money in cash if you plan to buy an expensive stuff. So, use DEBIT CARD. This is the magic card where you put your money inside the card's account and you can only use up to the amount available in the account. Means you still spend less than what you earn. So, say "Hye" to debit card and say "Go away!" to credit card.
Thursday, January 21, 2010
Pay yourself first!
That is true. Most people when they start working, they forgot this basic thing. They work hard everyday, from 9 to 5 only to give their money to others. This is so sad and useless. Don't do this. You will end up making others rich except you.
Maybe some people still can't get it. I give one example. Once you have enter the new world, which is the working world, most people dreams to buy a car. And when they want a car, they don't mean they want to buy Kancil or Viva. They mean the "real car". Maybe BMW, Mercedes or other branded car. They is nothing wrong with the car. It is high in quality. That is what every people want. Right?
But the problem people don't realize is the car they want to own, ended up owning them. Since the car is so high in quality, so do the price. The price is far higher than the average car. Every month they need to pay more than half of their salary just for the car installment. This is a REAL BURDEN!
At the end of the day, most of your money you spend to pay your debt. And, only the small amount left is for you. That if you are lucky enough. If not, nothing left for you.
Maybe some people still can't get it. I give one example. Once you have enter the new world, which is the working world, most people dreams to buy a car. And when they want a car, they don't mean they want to buy Kancil or Viva. They mean the "real car". Maybe BMW, Mercedes or other branded car. They is nothing wrong with the car. It is high in quality. That is what every people want. Right?
But the problem people don't realize is the car they want to own, ended up owning them. Since the car is so high in quality, so do the price. The price is far higher than the average car. Every month they need to pay more than half of their salary just for the car installment. This is a REAL BURDEN!
At the end of the day, most of your money you spend to pay your debt. And, only the small amount left is for you. That if you are lucky enough. If not, nothing left for you.
Wednesday, January 20, 2010
How to get RM1 Million for your retirement?
Today, I'm going to share with you a personal financial secret that 99% of people in Malaysia don't know about it. It's about your retirement. Have you ever think of your retirement? Most people don't. So, you better start thinking now or you will have to work until you die.
This knowledge I got from book called "Jutawan dari Planet Jupiter". Guess who is the writer? Azizi Ali again. Thanks to him. The secret is if you are 20 years old and you start saving RM155 every month until your age is 55 years old, you will accumulate RM1 Million in your saving account. That money is more than enough for your entire life. Assuming annual interest of 12% which is very reasonable and it is possible!
But, if your age is 30 years old, you have to save RM532 monthly in order to get RM1 Million at age 55. The bad thing is if you are 40 years old, you need to save monthly by RM2001. That amount is a lot for me. Things get even worse if you are 50 years old, you need to get RM12 244 every month for your RM1 Million retirement. That is almost impossible to do.
So, where to save the money for your retirement? The are many answer to that question. But one example is in unit trust. It can be ASN, ASB, Amanah Wawasan 2010 or Public Mutual.Those unit trust can really make you happy when you are 55. Take your action now!
This knowledge I got from book called "Jutawan dari Planet Jupiter". Guess who is the writer? Azizi Ali again. Thanks to him. The secret is if you are 20 years old and you start saving RM155 every month until your age is 55 years old, you will accumulate RM1 Million in your saving account. That money is more than enough for your entire life. Assuming annual interest of 12% which is very reasonable and it is possible!
But, if your age is 30 years old, you have to save RM532 monthly in order to get RM1 Million at age 55. The bad thing is if you are 40 years old, you need to save monthly by RM2001. That amount is a lot for me. Things get even worse if you are 50 years old, you need to get RM12 244 every month for your RM1 Million retirement. That is almost impossible to do.
So, where to save the money for your retirement? The are many answer to that question. But one example is in unit trust. It can be ASN, ASB, Amanah Wawasan 2010 or Public Mutual.Those unit trust can really make you happy when you are 55. Take your action now!
Tuesday, January 19, 2010
30% of your money is for your future.
This is what Azizi Ali taught me. If you don't want to believe me, believe what Azizi Ali said. If you don't know who Azizi Ali, google it. So, what does this mean?
I take myself as an example. I got RM500 every month from my allowance. So, 30% from RM500 is RM150. So I need to save RM150 every time I get my allowance. Why so much? Hey, the balance is more which is RM350. Use it wisely. Don't buy cigarettes. Don't shopping if you don't need to.
For those of you who never save before, start with 5% first. How to do this is easy. Go to the nearest bank and open a new saving account special for this saving purpose. Ask them for account book instead of ATM card. Then put the account book at the safest place that you can imagine. After 2 months, increase the percentage by 5%. Then just repeat the increasing rate until you achieve 30%.
The tips is always take your saving portion from your money as soon as you get it in your account. The best thing is, I got RM1800 at the end of every year in my saving account for my future use. So, you deserve it too.
I take myself as an example. I got RM500 every month from my allowance. So, 30% from RM500 is RM150. So I need to save RM150 every time I get my allowance. Why so much? Hey, the balance is more which is RM350. Use it wisely. Don't buy cigarettes. Don't shopping if you don't need to.
For those of you who never save before, start with 5% first. How to do this is easy. Go to the nearest bank and open a new saving account special for this saving purpose. Ask them for account book instead of ATM card. Then put the account book at the safest place that you can imagine. After 2 months, increase the percentage by 5%. Then just repeat the increasing rate until you achieve 30%.
The tips is always take your saving portion from your money as soon as you get it in your account. The best thing is, I got RM1800 at the end of every year in my saving account for my future use. So, you deserve it too.
Monday, January 18, 2010
Why I choose "personal money" for my blog?
I have many answers to that question. So, I list down 3 of the reasons why I choose this topics.
1. I love to read business books. I don't mind spending hundreds of ringgit buying books about business. I enjoy reading them even if I have to stay up the whole night. But most people don't. So, why not if I share what I've learn from my reading with others? At least they save their time and learn what I've learn. At the same time they can enjoy a good sleep.
2. I see many people around me including my friends facing problems with their money. Its always not enough even if they ask from their parent for more. So, the only thing that their parent should give them is not money but financial knowledge on how to manage money. While their parent keep on give money to them, I can provide them with some knowledge on personal money management. By time, they will be better and at one point, they don't need to ask money from their parent anymore. That is what all parents dreams. To have an independent children that they can proud of.
3. This is consider a sensitive topic for most people. When come to money, they always want to make it a secret. They event don't want people to know what is their account balance and some people relate money with negative things. "Money is for capitalist.", "Rich people make others poor.", "If you want to make money, you have to cheat." and "Money is not everything, so it is not important". This is what most people think about money. The truth is all of this is wrong. Most people say this because they lack of financial knowledge and they keep on hating & cursing rich people. Why don't we approach any rich people and ask them, how they make money? They will be happy to share with you their secrets.
So, these are some of the reasons I want to start blogging. I hope I can post at least one personal money tips every week. And, I hope you can get some benefits from it.
1. I love to read business books. I don't mind spending hundreds of ringgit buying books about business. I enjoy reading them even if I have to stay up the whole night. But most people don't. So, why not if I share what I've learn from my reading with others? At least they save their time and learn what I've learn. At the same time they can enjoy a good sleep.
2. I see many people around me including my friends facing problems with their money. Its always not enough even if they ask from their parent for more. So, the only thing that their parent should give them is not money but financial knowledge on how to manage money. While their parent keep on give money to them, I can provide them with some knowledge on personal money management. By time, they will be better and at one point, they don't need to ask money from their parent anymore. That is what all parents dreams. To have an independent children that they can proud of.
3. This is consider a sensitive topic for most people. When come to money, they always want to make it a secret. They event don't want people to know what is their account balance and some people relate money with negative things. "Money is for capitalist.", "Rich people make others poor.", "If you want to make money, you have to cheat." and "Money is not everything, so it is not important". This is what most people think about money. The truth is all of this is wrong. Most people say this because they lack of financial knowledge and they keep on hating & cursing rich people. Why don't we approach any rich people and ask them, how they make money? They will be happy to share with you their secrets.
So, these are some of the reasons I want to start blogging. I hope I can post at least one personal money tips every week. And, I hope you can get some benefits from it.
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