Having a chance to get in touch with a rich and young entrepreneur. His goals is to achieve financial freedom in three more years, at the age of 35. No typing error, 35 years old with financial freedom. He is a professional trader and NLP coach. He is just my idol for being young and rich.
WTH! Is that what you want to say? Me too! WTH! Young and rich, dream of all people but not many people able to make it. When you are young and rich, you are still energetic and able to persuade other thing besides money. You can go travelling oversea once a year and you can count it how many countries is welcoming you. You can drive luxury car with you beloved sitting beside. You can go challenging exciting things you never try before. You can have more time with your family. You can see thing differently as the money is not problem for you. The list still go on as long as you can name it!
Read more…
Recently, I pay much concern about inflation as being ROBBER of wealth. Inflation steal your wealth silently and naturally without your concern. Inflation being your biggest enemy on your pathway to get rich slowly.
Price of goods increase double in 12 year times with inflation rate of 6% per year. In other words, your purchasing power decrease half with the same amount of money.
Read more…
Inflation is our biggest enemy in building wealth. If you neglect the existence of inflation, you definitely end up being poor or middle. If you still wonder what inflation is, you may refer to my previous post.
Inflation is wealth stealer. It steal your money silently and unconsciously. You might not aware of your decreasing purchase power in one or two year times but it make a large different in long term, let say 10 years. 10 years ago, 1 plate of mee in my hometown sold for RM1.30. Now the same plate of mee sold for RM2.30. Nearly double! Price of goods doubled every 12 years with inflation rate 6% per years.
Read more…
From this post, I would like to highlight two things 1) how powerful is the compounding interest and 2) Start saving and invest earlier. Study the table below and examine the different between it.
The table below represent 3 persons start saving and investing at different age and different amount of money.
Read more…
If you are Rich Dad series fans, you should have understand and differentiate between Good Debt and Bad Debt. In short and simple explanation, good debt make you richer while bad debt make you poorer.
Good debt is debt which help you get into debt at the same time help you expand your wealth. You use debt to acquire asset which bring passive income in future. Most well known example of good debt is acquire property for rent. Your debt is paid by your tenant.
Read more…
For me, delay gratification is an interesting phrase in financial world. Before I talk more on it, let us understand the meaning of delay gratification first. Gratification means self satisfaction. You might want to buy yourself a branded watch after you have receive monthly pay-check. You feel happy and satisfy after wearing it. It happens to all people.
I think you can guess the meaning of delay gratification by now. You delay the gratification desire and save the money for more important purposes. You can save your money for investment which generate passive income instead of buying fashion clothes or branded watch which do not add value to your portfolio.
Read more…
Financial planning is important if you want to retire early and retire rich. It is just like your travel planning from destination A to destination B. There are several ways for you to reach there which have pros and cons on each of them. Same apply to financial planning. The important is you need have the blue print in your mind how to achieve your goal.
Below are 5 steps of financial planning. Each of them are equal important.
Read more…
