“If you must be a millionaire, then you have to be with one, think like one and learn to be the one.”
Who needs to read this page?
I’ve written this page to emphasize the importance of saving and investing at a young age. Since young, I’ve been like any other teenagers, spending all the money I’ve earned from my part-time jobs after ‘O’ levels on the things that I always wanted but couldn’t afford when I’m still schooling. It is not wrong to do so but if you are able to set aside a little amount to be saved, a little will eventually become a lot without you knowing it. This is due to the power of compounding. “Time is money” ; the longer the time period, the greater the returns. So, I urge you to start saving if you haven’t do so to benefit from the formulae, compounding, which have been proven to be one of the greatest discovery in mathematical history.
This page is for you,
who has just got your first allowance from your parents,
who has just receive first part time job’s paycheck after your ‘O’ levels,
who has just receive your first allowance from your NSF service,
And any other YOU…
This page might just have the financial tips you need.
Decision Making Cycle: It All Starts in Your Mind
The Decision Making Cycle starts from your thoughts which is in your mind that eventually evolve to the action that you will take. This cycle repeats every single moment in your life and even as I’m typing this paragraph. To rephrase it in laymans’ term, “What you think is what you get”. Thus, the first thing you need to do is to develop a right mindset. Being a saver might be easy for some but not for others and the main reason is due to the lack of one’s determination. Therefore, it is important to constantly remind yourself of your mission. To develop a right mindset, start by making a commitment to be a saver, setting attainable goals, taking small steps one at a time and staying focus. Eventually, you will be able to nuture the right mindset to be a saver. However, It doesn’t stops there. Once you have learned how to save, you will be open to the next phrase of turnings your saving to greater value and returns through Investing. So, the earlier you start, the more money you would have in future. So Start NOW!
JX’s Tips on Saving
Here are some tips for you that will last you a long way as a saver for life!
1.Your own Financial Statement
This might be a huge set back for you if you have never heard of this term before. However, its not as difficult as it seems. Your own financial statement shows where you are today in terms of monetary value. It is important to start having a financial plan to know your current financial status. You should start by sorting all your Assets, which are the things you purchase and own, example: houses, cars etc. . . your Liabilities, which are the things you owe, example: loans, installments etc. . . your Income, your source of income which you receive from, example: salary etc. . . and your Expenses, your spendings, example: food, transportation, bills etc. . . into the template generated below :
I urge you to do up a financial statement and be as Creative as Possible! It is your own financial statement therefore do it in any way you like it. I recommend you to use a whiteboard to do this as you will be updating your financial statement on a regular basis. Now that you have done up your financial statement, your Life Mission would be to INCREASE the GREEN sides and DECREASE the RED sides. To calculate your Net Worth, which is the amount you are worth in terms of the monetary value, Subtract the Red Side from the Green Side. Your Net Worth will definitely increase if you are focus on your Life Mission. Hang your Financial Statement in a prominent place where you will see it everyday to remind yourself to increase your savings and decrease your spendings!
2.Your Credit Card
Having a Credit Card has its Pros and Cons. I hope that if your income permits, subscribe to ONE Credit Card. Let me explain about the Pros of having a Credit Card. All Credit Cards entitles the users to some form of discounts and rebates on their purchases with their Credit Cards. Other benefits includes interest-free installments on certain purchases and extra reward points systems that allows the user to exchange the points for items or shopping vouchers.
After hearing all the pros of a Credit Card, I would like to warn you that you may be in debt to your Credit Card for the rest of your life if you are not CAREFUL! The TEMPTATION to swipe your Credit Card is the hardest to resist especially when you know that you would only need to pay for your Credit Card purchases in the following month. That’s when bad debts comes into picture with the humongous sum of interest awaiting you to pay. Things normally gets worst if you own more than one credit card. There’s a picture that most Credit Card users do not see. Everytime you swipe your Card, you are actually temporary loaning cash from the bank which is also using your Future Money to pay for your purchases. Thus, most people assumesdthat they have already paid for the item using their Credit Cards and would neglect the unsettled bills till the following month. When the statement arrives the next month, the bills would have compiled to an amount that they never thought they would have spent. Thats when the user starts to have debts.
Here’s a solution in clearing the debts incurred from Credit Cards. Example: If you would have more than one Credit Card in debt, terminate all the Cards except the one with the least debt. Every month, save an extra portion of your income and split the money equally to clear the debts of the Cards you’ve terminate. For the remaining credit card that is still usable, focus on using only what you can pay each month and do not accumulate any more debts. Once you’ve clear the debts incurred from the Credit Cards you’ve terminate, swipe the one and only remaning credit cards within the limit amount you can afford from your next pay. By then, You should be debt free.
Here’s my Tips on Credit Cards. Have only ONE Credit Card that suits you the best, considering the benefits each credit cards provides. Swipe only what you can pay at the end of each month and never accumulate any debts. Never delays in paying your Credit Card bills. If you have presently accumulated any debts, clear the debts before you use your Credit Card again.
