I Thinketh! - What is Rich?

Poor and content is rich, and rich enough.

~ William Shakespeare

Content makes poor men rich; discontent makes rich men poor.

~ Benjamin Franklin

There are people who have money and people who are rich.

~ Coco Chanel

This is rich. Sitting by the poolside, enjoying time to yourself, watching the children play with their blow-up ball splashing in the children's pool. No rush in getting to work, no pressure to meet a deadline. Nice clear sky in cool weather complementing the inviting waters. You just might jump in.

This is rich. Book in hand relaxing at the neighbourhood cafe at the start of the day. People watching. Scurrying citizens on their way to work, all dressed in their Sunday best which has become an every day best instead. Sunday is the time to wear slacks.

This is rich. Enjoying a game of tennis to work up a sweat before heading for a nice simple English breakfast at the nearby restaurant. Laughing, teasing, applauding with every ill-timed return and with every fluke. It's all in good fun. 

This is rich. Having a chat with a total stranger while in the queue in the supermarket. A curiosity question or remark started it all. Your conversation ends when your turn arrives but trade name cards to keep in contact. A year later, you two turn out to be good friends.

This is rich. Taking a plane ride to visit the place of your choice. You spend a week, two, maybe more, experiencing new food, practices, even picking up a new language (vaguely). Exploring cultures and its history. Stepping into the unknown. Perhaps making a friend or two. Your world becomes much larger than you expected.

This is rich. Volunteering to help out with some charity work. Peeking into the lives of total strangers. You see happy faces and troubled ones as well. You feel, you think, you realize life is precious and yet unfair. Perhaps you'll be a better person. Perhaps you'll see a troubled face smile.

This is rich. Your children jump into bed waking you up with their giggles and glee. You chase them out of the room so you can continue with your dream of winning the lottery. You go back to bed and the dream changes to you with the winnings in your arms. Your children being the prize.

Where's the richness in money for money's sake?

Cheers,

~K

7 Ways to Improve Your Finances in 2011

2011 is upon us. In a couple of hours, fireworks will light the sky and parties will last till the wee hours of the morning. In the spirit of making the coming year a good one, here's a list of things that one can do to financially improve oneself.

1) Set a Budget for the Month

At the start of every month, withdraw your "allowance" and stash it at home, setting yourself a spending limit per day. Cater an additional sum for transport, fuel and parking coupons if you drive, handphone bills, and whatever monthly bills you have. Personally, I tend to top up a $100 into my MRT (that's our train here for non-local readers) card each month regardless whether I finish up the previous $100 or not. This ensures that I'll always have enough to travel should I run out of actual cash.

Also, try to set aside an emergency amount per month too, which acts as a buffer for unforeseen circumstances. At the end of each month, any leftovers can either be used to treat yourself and/or loved ones to something or to add into your 6- month savings account.

2) Pay in Cash Where Possible

Studies have shown that people are less likely to spend when they use cash versus credit cards because they feel the pinch when handing over their cash. This allows a higher chance that we buy only the things we really need or want and not spend blatantly. Also, spending by cash allows you to see how much you have left thereby allowing you to figure out how to stretch your cash till the end of the month.

3) Save for Big Things

We all have our wants. A simple way to fulfill this is to set aside a monthly amount that is catered to this. Therefore, when the item of our desire presents itself, be it a new wallet or a branded bag, we'll have the cash ready for it.

4) Make Use of Promotions. Use Loyalty Cards and Discount Coupons

Make use of specials and promotions to stock up on things you need monthly. This includes facial products, nail polish and whatever knickknacks which helps reduce your spending in the long run as you'll be saving on things you need. Note the word "need".

Points gained from loyalty cards will also help offset expenses. Discount coupons, normally found in the mail though intended to make one spend, is most welcomed if they refer to things you would normally spend on anyway. 

However, that said, beware of the trap of buying things that you do not need or buying just because the item is on discount. You'll end up broke much quicker. A discipline approach is necessary.

5) Delay Spending

Try to put off buying an item for a week or two. This allows you to think about the purchase more preventing impulse buying. 

6) Choose the Cheaper Alternatives

Spending time with friends and/or family needn't be a wallet breaker. Instead of spending time at the neighbourhood Starbucks, a hang out at the coffeeshop or a cheaper cafe may prove just as or even more satisfying. Also, you could decide to hang out at free public spots such as the beaches and parks, where the money saved could be put to better use. 

For drivers, Orchard and town area carparks differ in charges. A bit of research into the charges at each venue will help you plan where to park thereby reducing unnecessary spending.

7) Set Up a Savings Plan

I cannot fully emphasize the importance of saving. As hard as it may seem to do, having a stash of cash lying somewhere is crucial especially in times of emergency. 

One painless way is to set up an automatic deduction that transfers a portion of your pay into a savings account. By doing this every month, you'll realize you're not missing the cash and sooner or later, you'd have amassed a substantial amount. You'll feel most achieved when that happens I guarantee.

To your 2011.

Cheers,

~K

I Thinketh! - Stuff in My Room & the Need to be Financially Free

This is the true joy of life, the being used up for a purpose recognized by yourself as a mighty one. 
~ George Bernard Shaw

As I sit up on my bed typing this post with my future wife lying fast asleep cuddling up next to me, I’m reminded how important and what being financially free really is to me from just observing my surroundings.

In front of me stands my library. Three 2m high bookshelves cluttered with books.  These books from a wide range of categories – literature (classic and modern), contemporary fiction, finance, philosophy, travel, history, arts, science and language – lie dusty, in need of wiping, and quite a number in need of being read. It’s been a nagging thought of mine to start. Instead, I find myself constantly being distracted by something else that needs looking into causing me to put down the book I intended to read.

The last I had any proper time to really start and concentrate on my book was on a holiday to Krabi in September. That was a beautiful and relaxing trip. I finished the book too - all 300 odd pages of it - in the 4 days I was away. Just like I used to in the past. It helped that it was a page-turner. The Fight Club by Chuck Palahniuk.

Today, I find my eyes constantly drawn to my guide on Italy. The breakfast chatter with my brother has got me longing to travel once more. I love Europe and want to visit it again. Backpacking around for a month wasn’t enough. England, France, Germany, Czech Republic. That was more than four years ago. The mini-trips since then never quite matched up to the experience. Let's Go, the words on my travel guide to Italy says on the cover. I want to. It’s been a dream of mine.

My future wife rolls over in her sleep and my thoughts turn to her. In another year, we should be married. A wedding. Honeymoon. A house. And then kids. I’m not quite sure that they’re always in that order though. But I am sure that I want to be capable no matter the order they come in, and not handicapped by that piece of paper constantly changing hands called money.

I’m also sure that eventually we’ll have a dog. A dog that will provide love to and will be loved by the family. A dog that will be annoyed by the kids, but will play with them all the same. But eventually dogs too, grow old, and a lot faster than us. And at the end, we’ll wish we had spent more time with it before the inevitable. I’ve experienced this before. And I never hope to experience it again, let alone wish it on my children. The mat in the corner of my room ensures this. It belongs to the past.

Old age, illness, they go hand in hand. Personal calamities that need dealing with. The medicine bottle lying on the shelf serves as that reminder.  Zoom out. The world is a lot larger than our own personal problems. Wars, famine, poverty. Animals ill-treated. Species threatened. Dying. People suffering, children homeless. Uneducated. Sometimes all they need is a bit of helping hand. Isn’t that what humanity is all about? A dollar goes a long way. Involvement goes even further.

In short, being financially free opens up options, giving one more time to do the things that really matters to oneself and in that way, living and eventually dying without any regrets.

Able to do what one wants to do, when one wants to do it. The long awaited freedom.

~K

It's All Part of the Plan

Vision without action is a dream. Action without vision is simply passing the time. Action with vision is making a positive difference. ~ Joel Barker

Yes I'm a Joker fan if you recognized the title as a quote from the latest Batman film, the Dark Knight. And which emotion did the Joker incite most? Yep, that's right (or at least I hope you said). Fear.

Fear is a very powerful emotional tool that prevents a lot of people from achieving their dreams. It's so powerful that it's been one of the main obstacles in hindering people from reaching their first million dollars. Why is that? Well for starters, some of us have strong doubts of our ability. Or, we fear the amount of work we'll have to put in, the sacrifices we'll have to make, the relationships we'll have to sacrifice, the cost of failure, the fear of embarrassment, the lost of respect, the troubles we'll cause, the label of "bankrupt" stapled to us wherever we go, the loss of our homes, our jobs, our families, all because of a desire to live life to its fullness. And so what do we do? We make excuses, we procrastinate, we delude ourselves into thinking we're ok just scrapping by, we think life will change when we're lucky enough to strike TOTO or 4-D or whatever lottery we take part in, we look at the guy driving the Ferrari and think "Lucky devil." and just continue looking, we blame the world for our circumstance, our parents, our teachers, our damn luck. Yes, we just wait. I waited too, for such a long time, without realizing I was missing out on opportunities everywhere. So I know exactly what waiting does to oneself. It does absolutely nothing.

If you want to see money coming into your pockets, wanting it is simply not enough. Yes, the first step is to desire it but then, you have to vision it, see it, feel it, believe that you can obtain it and then most important of all, act on it. The Mindset is crucial and that gets you acting. So what do you do now?

Now you start to aim, plan and do. Aim how much you want to retire on, or how much you want to earn each month, or how much you want to be able to spend each month, etc. Figure out what your objectives are. Is it to grow your money? Protect your capital? Save for an education fund for your kids? Are you saving for future medical costs? And then prioritize. Make this aim clear with real figures with real dates to achieve this by. Divide this into long-term goals (>5yrs), mid-term goals (2-5yrs) and short-term goals (<2yrs).>

Whew, sounds complicated isn't it? Well if it is, the first person you'd like to speak to is a financial planner. Wherever you are, you should consult a certified financial planner who is well-versed in the various investments and who is able to tailor your plan to your objectives. But believe me, it really isn't that hard to start.

You might want to educate yourself first. Here are some suggestions:

1. Personal Finance for Dummies

2. Mastering Your Personal Finance - Dennis Ng

3. The Automatic Millionaire - David Bach

4. Start Late Finish Rich - David Bach

5. Secrets of Self-Made Millionaires - Adam Khoo

6. Rich Dad Poor Dad - Robert Kiyosaki

Well, the weekend is here again. So take care and enjoy!

Cheers,

~K

Believe Your Path to Wealth

Believing a solution paves the way to solution ~ Dr. David Joseph Schwartz

Dr. Schwartz certainly knew what he was talking about. A leading authority on motivation in America, he authored his first bestseller - The Magic of Thinking Big about 30 years ago which became a bestseller. A trainer, consultant, lecturer and expert on motivation, Dr. Schwartz studied the subject for years and found that the key factor to personal success was the desire for it. That's the secret. Success, is not simply luck or circumstance but it's a choice.

Similarly, if you want to be financially free or even rich, you have to make a decision and hold strongly to that choice, desiring to see it through despite adversity, fear, worry or any obstacles come what may. In Napoleon Hill's historic book, Think and Grow Rich, the idea of belief and persistence are constantly emphasized. This is one book that most rich people have read before they became rich. I strongly recommend reading it as well to set it as a stepping stone to your success and financial independence.

But till that day comes, Believe.

Till next post,

~K

Want it? Believe in Yourself & Go for it

To accomplish great things, we must not only act, but also dream; not only plan, but also believe. ~ Anatole France

You are destined to be a millionaire.

What was your reaction to that? Was it disbelief? Were you cynical? Did you go "Yeah right. Sure I will..." and then roll your eyes?

Yes, I totally understand why you'll think it impossible. Firstly, how many of us "normal" people have ever seen a $1,000,000 before? Yes, I can relate to that. Couple of years ago, I barely saw $5,000 in my account at any point of time. And when I did see it, mostly thanks to the December bonus, it was gone really quickly too. So lets not even think of a million dollars right? Don't answer that. Secondly, you'll probably say you aren't earning enough or aren't earning period, especially if you're a student, to even begin to amass such an amount. Lastly, you'd probably have truckloads of bills to pay & things you'd want to get. So that'd mean you'll be paying for all those goodies and not have much left to save.

Truth to tell, if you're gonna think like that, you aren't gonna be able to. If you want to be financially free, you got to think financially free. BUT most important of all, you have to believe that you can become financially free. Remember that it all starts from your mind. And there are many aspects of the mind that hinders the path to wealth and financial freedom such as fear, disbelief, no confidence in one's ability, laziness, procrastination, unwillingness to learn, false perception, inertia and many others. Only you can set right these sabotaging thoughts and prevent them from being an obstacle to your goal of being financially free.

I recommend reading these books in helping you change your way of thinking.

1. Think and Grow Rich - Napoleon Hill

2. Secrets of the Millionaire Mind - T. Harv Eker

3. The Rules of Wealth - Richard Templar

These books are packed with valuable content and is too much to lay them out here in this blog. Nonetheless, I'll touch briefly on those that I feel are especially noteworthy in future posts.

Till then, think rich, think free.

You are destined to be a millionaire. Believe it.

Cheers,

~K

Mindset to Financial Freedom

My greatest challenge has been to change the mindset of people. Mindsets play strange tricks on us. We see things the way our minds have instructed our eyes to see. ~ Muhammad Yunus

While you're saving your hard-earned cash & building up your reserves, perhaps also clearing your debts too, lets turn our attention to something we can work on together while waiting for your savings to grow substantially.

As Muhammad Yunus realized, mindset is extremely important in how we perceive things to be. For example, if you grew up not liking the colour green, chances are you'd be fussy with your vegetables. Or, if you had a bad fright in a plane due to the horrible turbulence you experienced when you were a child, chances are you'd still feel this unreasonable aversion to flying every time you go for a trip. As you can see, the mind has a tendency to develop biasness due to the experiences we gather during our childhood development. Fear of insects, snakes, cats and/or dogs or distrust of foreigners, people of authority, etc. can mostly be traced back to bad childhood experiences.

My mother, for one, used to be terrified of swimming because she nearly drowned as a child in the sea. So for the great portion of her years she used to cling to the edge of the swimming pool or to my dad (who used to grumble or tease her about it heh). However, one day she decided to overcome her fear. She first started forcing herself to be comfortable in the water without holding onto the edge. Later she ventured into wading around and in a couple of months was swimming the breath of the pool. She never let her head go underwater though but the distance she's come & the achievement she's gained, is impressive. How did she achieve this feat? Simply put, she had a change of mindset.

Similarly, if you want to become financially free and/or rich, your mindset needs tweaking. A lot of times people say they want to get rich, even attempt to get rich, but their mind is not ready to get rich and so these people fall by the roadside frustrated & stop trying eventually. Therefore before the person can become rich, the mind has to become rich & think rich first. Only then can you change your attitude and attain the level of richness you sought.

Simply put:

Mindset leads to Thoughts which leads to Feelings which leads to Attitude which leads to Actions which leads to Results/Outcome

In the next couple of posts, I will expound on how to prepare your mind in order for you to attain that financial freedom you deserve.

Till then, keep saving!

Cheers,

~K