10% to Upgrade

First of all, I do not mean computer upgrading!

I suggest you to take 10% of your salary to upgrade the most important thing in you life. YOU!!!

10% to Upgrade YOURSELF!!!

How many of you think that education ends with your university convocation? I hope none of you does but there are many that do. People that think like that won’t buy books, won’t go to courses, won’t take up extra night classes etc. The most hated feature in them is they also hate people that do all those things. They would say something like “ Courses are useless, you might as well flush your money down the drain”. Please don’t be someone like that.

How to upgrade? Buy books or go to courses related to your work or about something you want to know. For example, I have suggested you to save 10% for investment every month. I hope you have done so. So next, you are supposed to read on books or go on courses about investment so that you could use the money saved wisely. Don’t ever belief the words of person that says “Never do, Never know”. You should know before you do anything. You can’t know everything but you at least have to know something, right?

Why so much? 10% of your salary is costly? Benjamin Franklin said it right, “ Education is costly? Try ignorance!” Books that are popular or good might cost you around 20 – 50 dollar. That is affordable for everyone. But courses starts from 100 – 10000, depend on what course you want to take. So, you can save that 10% up for a few months before you go for a course. But you have to go to a course at least once a year or read a new book at least one a month. Or better still, you can do both.

How to choose? For books, look for reviews in the newspapers or ask a friend, a colleague or even you boss. From those sources, you could have an overview of what the book is about and also the writing method in it. For courses, I strongly encourage you to attend their previews before paying for it. You could experience the way they teach to see whether you could accept or not.

Well, we are back with Emma before we end. 10 cents couldn’t get her anything. So she saved up and bought a book when the money saved is enough.

So, remember

10% to upgrade Yourself for youself.

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By,
Yong Yeong Chow
Public Mutual Unit Trust Consultant (Certified Financial Planner to be)
MSN : yyc83@hotmail.com
* you can chat with me there

Feel Free with 5%

I last blog was on the end of June in hopes that you have started to save 10% first on your June salary. But maybe you haven’t received your salary, so remember to do so when you received it.

Now what do I mean by feel free?

First, the old saying, “ You forget 70% of what you read, 50 % of what you listen” but when you READ and LISTEN you remember 70% so when do you remember 100%? When you feel it (or do it), that is the time. So, my next suggestion is for you to

Spend 5% of your salary ( after deduction) to Feel Free.

What free? Financially free.

When do I get to do that? Do you have this question in mind?

Well my mother always says, Save First Then Spend later. So, you can spend it after you have saved the 10%. But you must spend it in the month you get it. Say you get your June salary in July, you spend the 5% in July. Don’t bring it forward, unless you have bigger enjoyment plan for it. (Example, a travel fund for an oversea travel you really want to)

Spend it on what? Spend it on things that you never dare to do just because of the price. Some are afraid to go into Starbucks, Some are afraid to go into a Steak House, for some it might be the climb up KL tower. So, go do IT! Spend that 5% on it, and feel the sense of being financially free to try these things out whenever you want to.

5% is not enough? That simply means your paycheck is not big enough, rite? That the 10% you save first is meant for. Invest your 10% accordingly so that you can have a passive income and together with your working income, you would be able to use 5% to just do it.

Now we are back with Emma, you know she had only 1 dollar. So 5% is 5 cents. What do you think she spend it on? She actually bought a sweet with it. Does she feel financially free by eating a sweet? SURE NO. That’s what make her to save and earn more. After twelve month, she had 5% out of 2048 dollars to spend. How much is that? 102.4 dollars, is still not enough for her, I hope. ( Only unfulfilled people would move further up the money road).

So, start this month (after you saved 10%) and

Feel Free with 5%.!!

By,

Yong Yeong Chow : Public Mutual Unit Trust Consultant (Certified Financial Planner to be)

MSN : yyc83@hotmail.com* you can chat with me there

Pay Yourself 10% First!

Many people are in the condition of broke. They may earn a lot but they spend a lot also. Some are even worse; they earn a little but spend a lot! I hope you are not one of those people.
There are many books out there that teach people how to get out of that special situation, and most of the advices start with this.

Pay Yourself 10% of your salary ( after deduction of tax, SOCSO etc), FIRST.

Why pay first? While most people, pay themselves last after a month of spending. They would say I have loans to pay, kids to take care, I could only save after all expenses is cleared. This is one of the ways, but ask yourself, how many of them have money to save after they pay all the expenses? A lot? A little? Or None at all? A much more secure way to save your money is by paying yourself first and then budget your spending afterwards. By doing it like that, you would be sure to save some up every month.

Why 10%? Because taking 10% off your budget would actually not affect your spending too much. Say normally you have 100 dollar to spend but now you only have 90 dollar. Not much difference right? You could opt for more percentage but make sure it won’t affect your life too much. Remember, Pay Yourself 10% First!

When can you use the money? NEVER! The money can only be used for investment. The 10% is meant for you to create a passive income. That is to make your money work for you to earn more money.

If you are thinking that your current financial standing doesn’t allow you to do so. Let me share a story from the book “Secrets of the Millionaire Mind”.

Emma who was about to claim bankruptcy was at a seminar when she heard about Paying Yourself 10% First idea. Remember? She was broke, about to claim bankruptcy. So, she didn’t have much to start. She started with the only money she had, 1 dollar. She saved 10 cents up and budget before spending her remaining 90 cents. She knew 1 dollar is not enough to get her financial free, so she commits to double up the money every month. After twelve months, she had 2048 dollar to save and she was also out of bankruptcy.

I know you have more than Emma. That’s why I know you can more successful than her. So remember, start today and

Pay Yourself 10% FIRST Every Month.


By,
Yong Yeong Chow
Public Mutual Unit Trust Consultant (Certified Financial Planner to be)
MSN : yyc83@hotmail.com
* you can chat with me there

Managing Money

People get broke or continue to be poor because of one reason. They don’t care to manage their money. Don’t belief? Ask those that say they are broke or poor around you. Then you would know.

There are many reasons for a person to not manage their money. The more common ones that we hear are, “ I have little money, so there no need to manage it”, “ I will manage my money after I have a lot of money”, “ No one teach me how to manage money”, “ I have no idea of such things”, “ I….”

Those are the reason they are broke. We don’t want to be them right?

Now, to start to manage your money, you do not have to have a lot of money. You actually manage your money to make you have a lot of money. Why you don’t need much money to start? Let’s think like this, if a person cannot lead a 3 person team, do you think he could lead a 100 person team? NO! It’s the same with money, if you can’t manage RM 1000, you also won’t be able to manage RM 10000.

I hope you want to manage your money now, because that’s what will make you financially free. Financially free means that you can choose your job based on what you like to do, and not for the sake of income. You want that? Yes? Then start to manage your money.

You probably have your own way of managing money. The suggestions in my blog are only my opinions gather from books I read. I find them useful and want to suggest them to you. Bear in mind, although I am not yet a millionaire or financially free. The writers of the books are. I am still on my way there, that’s why I know the suggestions are useful.

Start off by reading my First Blog.
Pay Yourself 10% First!