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Ideal Salary Allocation?
I had been working for 2 months as temporary teacher. My salary increase from Rm1200 to Rm1900 after my graduation. With adding some allowance, my monthly salary will have slightly more than 2k. Wow, not bad. I am starting falling in love with my job. My salary rate per hour is around RM11.
I had been budgeting for my salary although yet receiving it. Craving for it! It always took a long time for the first time government worker to get paid. Usually will take around 3 months.
Live Below Your Means
Almost all financial expert give advise of to live below your means. In other words, spend less than your earn. If your monthly income is RM2000, you spend less than that amount each month. You don’t buy a 42” LCD TV which might cause around RM5000 or more by installment. This figure have exceed your income limit. A normal flat screen TV will be sufficient for watching. The stuff appear on the screen is exactly the same!
Live below your means definitely is a workable way to achieve financial freedom. You have extra money for saving and for investing in variety of investment. However, live below your means is a get-rich-slowly scheme. You build up your net worth cent by cent.
Compounding Interest Effect
Compounding interest is the phenomenon where the interest given is re-invested consecutively to the original fund.
The compounding interest might not make much different in the initial year however, it make a remarkable different in amount in the end of a long-term period. The chart below is taken directly from Smart Couple Finish Rich by David Bach which the author had give the permission for anyone to duplicate it to share with their friend.
Subscription To Personal Money Magazine For One Year
I had made my decision to subscribe Personal Money magazine for one year start from October 2009. Past, I had bought them consistently each month from local book store start from January 2009. I even bought the pass issue of Personal Money online with cheaper price.
Personal Money is a local financial magazine. Just as the name given, it is a magazine that provide information about managing your money efficiently. The topic range from insurance, stock pick, tax, travel, financial product, car and IT gadget too. All in all it provide you precious info to maximize uses your money and manage your money efficiently.
Business Vs Investing
Investing and business is totally separate term and different meaning for me. I find that some people get to interchange and misuse this two term as they like.
Okay, if you invest something means you are waiting for passive income by work nothing or little on what you invest is called invest. Good example of investment vehicle are Fixed Deposit, Unit Trust, Stock and the list go as you can name it. All of them need less attention from you.
Rich Dad Cashflow Game
If you ever read Rich Dad series of book, you will not be unfamiliar with the Rich Dad Cashflow Board Game. It is a creation of Robert T.Kiyosaki after he retire. You can just imagine cashflow board game just another type of monopoly which bring education knowledge.
Cashflow board game is described as mimic of what happen in real life, where most people is in the rat race. Those who are in rat race are people that spend more than they earn. They live from paycheck to paycheck to settle the bill and debt.
