WHY THE RICH GET RICHER?

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THEY DON’T WASTE ANY MONEY

The idea of saving money is a boring idea of becoming rich.

Honestly speaking, this is the only way to do it – unless you have something up your sleeve (rich family), then you are at the wrong place.

It’s the only way because it does not matter how much money you make, but if you’re someone who does not spend or invest wisely, you’re not gonna end up becoming rich.

Look at some of the rich and famous people who made millions (or billions) worth of dollars, but ended up bankrupt. How is that?

It doesn’t matter how much money you make as long as you don’t know how to keep it.

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THEY LOOK AT THEIR NUMBERS DAILY

I personally know entrepreneurs who rarely look at numbers daily.

This is a bad habit.

Numbers don’t lie. It gives you a quick insight on where does your business (or personal finance) will end up heading.

This may sound trivial to some – reality is, knowing the figures gives you better understanding of your financial situation so you can make better decisions; short and long term-wise.

If your sales increases, look at expenses you did that made sales go up.

If your sales hit rock bottom, look at ways to cut your expenses that don’t seem to support sales.

And so on. You get the idea.

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THEY WORK SMARTER, NOT HARDER

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The idea hard work equals results no longer applicable these days. And the rich know this too well.

Yes, you still need to put in the effort – but it needs to be smart effort.

If you’ve been doing the same thing over again without much results, the answer is not to do more of the same thing.

Instead, you should start finding alternatives.

This is why successful people often continue to learn and be adaptable; so they can easily adopt new ideas or methods to get results.

THEY MAKE THEIR MONEY WORK FOR THEM

People often like to say rich people are lazy. It’s far from the truth.

Rich people know that they don’t always want to work and not to enjoy the success they have accomplished.

So, they are always on the move to make their money to do the work such investing in companies, stocks and so on.

This is how most rich people stays rich despite of always looking like they don’t work at all.

There’s nothing wrong with that. Who wants to work for their entire life?

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THEY VALUE MONEY MORE THAN OTHERS

There’s nothing wrong about valuing money more than everything else.

You worked hard for it. Of course you’re going to value it more than most other things.

If this doesn’t sound like you, then you’re going to have a hard time to get rich – or to stay rich.

Most people like to spend money every time they get paid. They like to spend on things that don’t make much sense.

They don’t save and invest. How can they?

This spending habit will leave them constantly living paycheque to paycheque; ends up having to work for their entire lives.

Rich people, on the other hand, knows how money works. They don’t spend their earned income.

Instead, they save a portion of it to invest. Once that investment bears fruit, only then they’ll start spending.

This is why rich people value money more than others.

THEY BENEFIT FROM HAVING GOOD CREDIT

I don’t think it’s necessary for me to talk in depth about having good credit, do I?

In short, good credit means easy access to financial loans, government grants and so on.

Access to such financial support is crucial if you wish to own a house, start a business et cetera.

Let’s move on. 

THEY DON’T KEEP UP WITH JONES

There is a saying that “Poor people like to talk about others, while rich people like to talk about ideas.”

No. I did not say it.

But I can support by talking from my experience itself.

If you pay enough attention, people who are doing well (or well on their way) rarely talk about others. We rarely gossip.

On the other hand, when I talk to average folks, they seem to prefer talking about things that don’t benefit.

Sometimes, I can even sense envy or hate (or both) in these conversations – which is another tell-tell sign of a person who will struggle in life. No offense.

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THEY PRIORITIZE SUCCESS OVER LEISURE

This does not necessarily means you should enjoy less leisure time. Nobody wants that.

Instead, create tasks and schedule them where you will only work around specific time and day(s).

Then, use the remaining time (or days) to enjoy some leisure activities ONLY AFTER YOU’VE COMPLETED YOUR TASKS.

This is what I mean by prioritizing success over leisure.

CONCLUSION

For closing, the most important thing is to, quote Nike ‘Just Do It’.

People tend to read and think a lot. We like to, sometimes, even over-complicate things. DON’T.

Just do it. Full stop.

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Secrets To Financial Freedom

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You work very hard. Day in. Day out.

Yet, you could not yield the results you want – which is to achieve financial freedom.

Today, I’m gonna share with you the secrets to financial freedom.

Create Your Networth Target

Creating a budget never really makes sense to me in the first place.

I went through many online material that talks about budgeting & yet, they continue talking about cutting spending & never really got to the core of budgeting.

Whilst it is a no-brainer to cut down spending, I was clueless as to how much is considered a good budget.

I was directionless.

Then I discovered how important net-worth is and how helpful it is when it comes to creating a budget.

Basically, you need to come up with a targeted net-worth & how long you’d think it requires to reach that target.

Once you have a target, all you need now is to reverse engineer that figure into tangible numbers using simple math – giving you an idea how much you need to save every month and so on.

In a nutshell, let’s say you’re aiming to reach a networth of $100,000 in 3 years. This means you need to make $2777.77 every month.

This is where you decide where to cut your expenses or how much money are you short from achieving the figure. It all comes down to simple math.

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Apply The 50/30/20 Rule In Budget

I’ve also talked about this rule.

For those who are not familiar, the 50/30/20 rule was introduced as guidelines to how much you should spend based on needs, wants & savings

Although this is a good place to start, I believe there should be some tweaks depending on where you are today.

In short, I believe the rule should be re-introduced as 40/10/50 – where savings should be the priority, so you can add more money into investment later on.

If you want to know more about it, check out my other article where I discussed this in details.

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Seek Wise Men/Women For Advise On Investment

This is the toughest topic to talk to you about.

Honestly speaking, there is no such thing as an investment that fits all.

Different investment has different settings, different mentality and so on – which can be challenging if you’re not used to the environment.

My experience tells me that the best person to talk to about investment are those whom you have personal relationship with – who have gone through the experience from becoming poor to wealthy.

Gaining their insight is valuable as it gives you first hand lessons, mistakes & failures that you can avoid in the future which is priceless.

Then, once you’re certain – you can go all in.

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Improve Tax Awareness

You have no idea how much money you can save by starting to listen to your accountant.

Credited accountants are able to tell you exactly how and where to spend in order to get the best tax reliefs, or tax reductions.

Getting tax reliefs is always great – so maximize its uses.

If you run a company, it’s even better. You can gain more tax reliefs under company spending.

So go talk to a credited accountant now before that next tax declaration dateline.

My Final Two Cent

If you’re clueless as to where to begin, then, seek advice from wise men or women. Take note every single thing they share with you – even if you disagree with some of the ideas.

Always keep in mind, the best entrepreneur are the ones who are open-minded and do not have answer to every question.

Let me know what you think about the article in the comment below.

Don’t forget to Execute

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Why I Disagree With 50/30/20 Rule In Budgeting

What’s up future millionaires? I’m gonna share with you the reasons why I don’t like the 50/30/20 Rule.

For those who are not familiar with it, the 50/30/20 rule represents how much you need to spend based on needs, wants & savings respectively.

While it is good that people are finally taking more care of their personal finances with this rule, I feel there needs to be more adjustment.

Create 40/10/50 Budget

I personally don’t like the idea of the 50/30/20 Rule.

The ’50’ needs should be reduced, for example, try staying in a cheaper apartment, or rent out a room in your house to reduce your monthly installment.

My personal view is that the 30 wants also needs to be reduced. Avoid from spending on luxury goods – or try to reduce spending at least. Sacrifice today so you can leave a better life tomorrow.

Instead, add more into the savings/investment. This increases from 20 to 50 giving you a lot of cushion for investment and money for emergency.

Therefore, I feel the 50/30/20 rule should be re-introduced as 40/10/50 instead.

When I was in my mid-20s, I worked while doing my studies. Even then, I managed to save up to 80% or sometimes more from my income. Most of that savings are put into investment. I could do this back then since I didn’t have much commitments. That was about 10 years ago.

The reason I’m sharing this is demonstrate to you that the Rule is also time dependent. If you’re a single bachelor, it’s always the best idea to put more money into savings/investment since there aren’t much monthly commitments for you to make.

My Final Two Cent

My final two cent? Don’t get too caught up with the 50/30/20 Rule. Use it as your guideline. My rule of thumb, try your best to have higher percentage for savings/investment.

I know not able to spend money on your wants sounds terrifying after hard days of work.

But this is only temporarily till you can live on dividends alone – which you can loosen up the strict spending then.

Let me know in the comment section below if you feel otherwise. Cheers.

10 Easy Ways to Save Money (And Make Some Too)

“Many folks think they aren’t good at earning money, when what they don’t know is how to use it.” —Frank A. Clark

I’m quite shocked to find out from some friends who keep telling me that it is near to impossible to save money aside these days. When I ask them exactly what they did do to save, the answer I keep hearing is they’d only keep a portion of income into bank and that’s it. After hearing some of my explanation, the guys were quite surprised at the amount of things they missed out in order to become financially stable. Nevertheless, it’s never too late to start saving money. Better now than never. So here’s my take on the 10 easiest ways anyone can do to save money:

Continue reading “10 Easy Ways to Save Money (And Make Some Too)”

Why Making Money Is Actually Boring? The Truth

I know what you are thinking. Who in their mind get bored when making money?

These days, I’m seeing a lot of people aspiring to become rich but not willing to hear what they should hear.

At the end, these people ended up listening to many of these so-called business gurus offering online classes worth thousands dollars ended up disappointed.

The reality is you need to do what every successful people in the entire of mankind’s history has been doing, which is to SAVE MONEY!

By now, I’m sure many of you clicked to not read this article further – not wanting to face reality.

Honestly, saving money is the key to becoming and remain wealthy.

No matter how much you make, if you still fail to save money, you’ll eventually become not wealthy.

Don’t believe it?

Just look at the number of business people, celebrities and athletes who made millions of dollars in their prime; yet despite all of the money, they still ended up in bankruptcy.

SO HOW TO SAVE?

“Not Wasting Money Is The Best Way to Save Money.” – Mokokoma Mokhonoana

Saving money alone is not efficient if you want to become wealthy. You need to devise a plan. A budget plan. This allows you to have clearer picture of where your money should be spent and where not to.

Budget plan does not help you solving your financial problems, it helps you see the problems!

Below is a simple process to create a budget:

  • Create Your Networth Target – Create where you’d like your total networth be within a dateline. E.g. You aim a total of $500,000 within next 5 years. This means you need to make $8333 each month. This is where you start creating a budget.
  • Budget – With a target, creating budget becomes easier. This is where you need to look at your personal finances. Start looking at expenses and cut whatever is necessary. Try to be as lean as possible in your spending. Then, look at your income and determine how much more you need to make money in order to make that $8333 per month. When you’re able to see where you are today in the aspect of wealth and how far are you away from reaching that target, your money awareness is heightened. This is the ‘awareness’ that every individual needs to help them save money.

Obviously, there’s more to it in devising a financial budget – but it would be a very long article to write about, something which I look forward to writing in the future.

Remember! Budget plan does not help you solving your financial problems, it helps you see the problems!

That’s it for today. Let me know in comment section of what you think about the article.

 

 

 

 

 

7 Qualities That Will Make You Rich

When you see successful people, you seldom think about what lies underneath all the cool lifestyle they exhibit.

Many people dream to achieve success but often struggle due to lack of understanding the qualities required.

Today, I’m sharing the top 7 qualities that will make you rich.

1. Become known for one thing

People often feel proud whenever they tell you they have many talents.

While this can be seen as an ‘ego-booster’ for many, the reality is that it can be both a blessing and a curse.

“He who catches two rabbits at once will catch none.” – German proverb

Attempting to achieve various things at once can drive you to the brink of depression as you try relentlessly to try fit them all into your packed-tight schedule.

You might feel you can do it at first, I felt the same too, but as time goes by, you’ll start begin to worn out. When that happens, you’ll start losing focus on ALL things.

I know that sometimes, you feel you need to make the best out of the time available to you – I’ve been there. Then, I realize that it only accelerate my exhaustion level.

So, why should you focus on one thing at a time?

To start, our brain has shown that it works best when concentrated one thing at a time.

In fact, a research by Stanford University that frequent multi-taskers were actually worse at multitasking.

They even performed worse because they had more trouble organizing their thoughts and filtering out irrelevant information.

Researchers at the University of Sussex in the UK also found that multi-taskers suffer from cognitive impairment affecting their empathy as well as cognitive and emotional control.

Apart from health concerns, if you look at those who are exceptionally successful, you’ll see how often they champion the idea of ‘focusing getting things done – one at a time’.

“Focus and be known for one thing.” – Anonymous

“Your life is controlled by what you focus on.” – Tony Robbins

By becoming known for one thing, the word gets out about you and your business much faster than someone who ‘multi-tasks a lot and known to be an average at a lot of things’.

People are more likely to come to you since you’re the best – some might even fly to you and vice versa.

Start focus today. Be known for one thing.

2. WILLINGNESS TO MAKE SACRIFICES

“Whenever you see a successful person, you only public glories. never the private sacrifices to reach them.” – Vaibhav Shah.

We often see the successes of people, but can never learn enough from the struggles they went through.

Being an entrepreneur will make you realize that the lifestyle you want doesn’t come for easily.

“The dream is free, the hustle is sold separately.” – Anonymous

Real entrepreneurs are not only able to see the opportunity, they are also willing to do what it takes to earn it. They respect the dream and know there’s a price to pay.

On the other hand, if you see entrepreneurship as a way out of your 9-5pm job, or because you enjoy less time working, then, you’re stepping into a ‘sinking ship’.

This is what separates between successful entrepreneurs and ‘wanna-preneurs’.

When I started out, I had to care for both my parents down with chronic diseases. That along with running businesses – I had to make tough decisions and sacrifices along the way, some I’m not particularly proud of but had to be done. I’m glad I made it through today.

That’s entrepreneurship. There’s no easy way up. It’s a rollercoaster.

It’s not going to be easy, but it’s going to be worth it IF you’re smart about it.

3. SELF-MOTIVATION

“Don’t focus on the risks. Focus on the rewards.” – Anonymous

Life will get harder in your journey as an entrepreneur; and to be honest, you’re in this alone in the beginning.

Unlike your job, there’s no one to motivate you but yourself. You have no boss, no peers – you get the idea.

You’d argue “what about partners, investors etc?”

Well, they can only recommend you on the direction and decision making the company should take – but at the end of day, you’re the driving force that should get things done.

You’re your own motivator.

Yes your family and friends will be around you, but what lies within yourself is where you REALLY make the difference.

There will come a number of times where your brain will start to wonder – and start telling you to doubt, stop and give up.

Why not? After all, your business is not making much progress after 1, 2, 3 years. Savings all dried up. There’s nothing left you could do.

This situation alone might scare off most people away.

But successful entrepreneurs know better. They see the risks but they focus on the outcome. This is one of the best ways to motivate yourself. See the rewards, not the struggles.

In addition, you also need to find various amount of motivational quotes and to keep it as mantra in case you start feeling worn out.

Create reminders of what success would look like, or any possessions (e.g. mansion, yacht etc) you desire to own. Do whatever it takes to remind that you need to work harder if you want to achieve it.

If you’re unable to motivate yourself, you’re in tough luck and better off working a job.

4. Define your goal daily

“A dream written down with a date becomes a goal.

A goal broken down into steps becomes a plan.

A plan backed by action makes your dreams come true.”

If you’re an admirer of various successful people, I’m sure you’ve come across the importance of writing down your goals every single day.

This is a habit most entrepreneurs live by; as it helps you an impulse to act on a daily basis.

By setting your goals, you’ll start to wake up ‘with a plan’ rather than ‘to have a plan’.

This attitude helps to start your day as productive you can – not wasting time trying to figure out ‘what to do today’.

When you set the goals every day it helps you to define priorities and keep the most important things on the first place.

The initial identification of priorities is one of the most important things you need to do.

Focus on getting the most profitable activities done early, and then everything else. Soon, you’ll discover the best route to your success.

5. Practice resilience

“The task ahead of you is never greater than the strength WITHIN you.” – Anonymous

“Resilience is the ability to fall, pick ourselves up from the floor quickly, learn and continue with the journey.” – Anonymous.

Resilience is key to success. It gives you an advantage over people who choose to give up the moment they face failure.

You can be the smartest person in the room – who are also not spared from failures; but if you lack the discipline to keep going, you ought to fail as well.

I’m a big saver. In fact, I enjoy saving money especially being able to see my money grows every month at the bank and eventually investment. Of course, I desire for luxurious possessions in life, but I knew I had to keep my grit and carry on saving money.

I’ve tried most which entrepreneurs went through (except being homeless) e.g. eating peanut butter and jelly sandwiches almost everyday, had to juggle between taking care both my parents and my business, and so on.

Today, majority of the savings are in investments. I can live comfortably from the returns alone. I do still save, but slowly, I start to increase my expenses a little bit so I get to enjoy after all the years of sacrifices.

“If you don’t give up, you still have a chance ….” – Jack Ma

You cannot avoid ups and downs along the way but you need to find within yourself to uphold a strong spirit to accomplish your short and long-term goals.

6. Obey the “Rule of 500”

In a nutshell, you need to offer your services or products to at least 500 people per month in order to become a millionaire.

Of course, this depends on the nature of your business i.e. profit margin etc. What’s being pointed out here is to get your product in front of as many people; and quick.

There will be large number of refusals – but this is just part of sales. You just need to be ready for it.

7. Long Term & Short Term Plans

“You have to believe in the long term plan but you need the short term goals to motivate and inspire you.” – Roger Federer

Everything you’ve done in life so far has been for the immediate future.

Mankind functions in strange ways where we mostly know the importance of long term plan – and yet, we still seek for a shortcut.

If you wish to be successful in life, your mindset needs to be re-wired quick.

You need to stop looking for shortcuts, there isn’t one. There are large numbers of successful people can attest to that.

To be honest with you:

It will take between 7 and 10 years to change your life.

You’re probably getting discouraged hearing this – and opting for Netflix instead.

If you’re that person, that’s good. You’ve just saved yourself from 10 years of hard work to success – than decades of average work to just being average.

Being successful requires you to think ahead and take actions now which will have an impact over the long term.

Successful people often look at the rewards of hardship; and then deconstruct it into short term plans to achieve that end game. This mentality is what’s going to help you pivot towards success.

It works similar like reverse engineering a product. You tear it into pieces trying to figure how it works and being made.