Money Management Habits (I)

There are several money management habits out there taught by many highly successful people (Robert Kiyosaki's Rich Dad Poor Dad, Frank & Dr Muriel Newman's The Seven Ways to Wealth, Adam Khoo's Secrets of the Self Made Millionaires, T. Harv Eker's Secrets of the Millionaire Mind) but most of them have 1 thing in common, that is - PAY YOURSELF FIRST.

The concept is simple, for most financially-challenged people, the cashflow management is as follows:

When the pay cheque comes in, they spend first and whatever is left, they save. The pitfall is most of the time, there isn't anything left at the end of the month to save, let alone to invest. For this type of cashflow management, there is usually a little self control for spending and they tend to overspend or buy things on impulse or things which they did not plan to buy. Why is that so? It's because our expenses will always rise to the level of our income.

As for the RICH, the cashflow management is:

When pay cheque comes in, a fixed amount (10% is usually the recommended value though the higher the better) will be channelled to another account (which in T. Harv Eker's programme, its called Financial Freedom Account or FFA in short - we shall discuss T. Harv Eker's method's another time) and then spend whatever is left. Using this practise, the tendency to overspend will be reduced as the will not be that much "free" money lying around. Furthermore, the money saved will then be used to invest for higher returns.

We have had this concept for a long time long long ago but we didn't put into practise until recently when we attend the Millionaire Mind Intensive (MMI) course by T. Harv Eker that we finally decided to start to practise this habit. It does takes a lot of control and discipline but its a matter of habit which we are forcing ourselves to do so. Three months have passed since we started and amazingly we were able to control our spending and forced ourselves to save some money.

Learn more about money management habits, go to this link :
http://tinyurl.com/3cnl8w

Quote of the day:

"You are the root of your own success"

Rich Dad Poor Dad (I)

Our first foray into the concepts of financial freedom came from a book called "Rich Dad Poor Dad" by Robert Kiyosaki. It was recommended to us by a long time friend called Ah Tiong. After reading this book, we began to understand why the rich are rich and the poor are ....poor. We are sure many people have read it because its on the bestseller list for years. If you haven't, go read it, its a good foundation.

In this book, we "learnt" something very important (learnt in quotation because it was something so basic and yet not many people actually practises it) and that is the term Financial Freedom. Basically, the concept is if you use your time to earn money, it is active income and in layman's term, No work = No pay. And if you have income that comes in whether you work or not and that's passive income. Therefore, if your passive income is greater than your expenses, hey you are financially free. Isn't that simple? Then why is it that there aren't that many financially free people around or at least around us?

The answer is simple because if you were like us who tried to look at how he did it and concluded that, well, that's in US and his method can't work in Singapore and we stopped there. That's exactly what happened to us. Though in our mind, we understand the concepts but it was not "do-able" so we did not take any actions and our financial situation remains pretty much the same i.e. kept working very hard for the meagre pay cheque.

Quote of the day:

"Success breeds success"

History is made - our first blog

We are a married couple with 2 young kids living in Singapore and this is the first time we are writing a blog. Our purpose of this blog is to share with everybody our learning experience on our path to financial freedom. We aimed to achieve that status and also a net worth of 1 miilion in 5 years time (2012) - starting from scratch.

In our blog, we shall include motivational quotes, self development articles + products, internet marketing articles + products, investment ideas, passive income generation, multiple streams of income etc.

Some of the authors/trainers/successful people of interest are Robert Kiyosaki, Adam Khoo, Stuart Tan, T. Harv Eker, Anthony Robbins, Ewen Chia, Napolean Hill, Warren Buffet, Peter Lynch...and the list goes on.

Our main intention here is to integrate our experience with what we have learnt from these people and share it with everybody who has the desire to learn and live their desired lifestyle.

We may be including links to some great products from these people from time to time and if you decided to buy, please use the links as a gesture of appreciation to us, THANK YOU.

Quote of the Day
"Success does not happen by chance, it happens by CHOICE and DESIGN"