My last suggestion on managing your money is
The remaining of 60% of your salary is meant to support your living expenses.
I put this suggestion last because only then your life would be focus on the future more than the present.
Why care about living last? Because normally many people would say “I save what is left at the end of month”, that “what is left” sometimes would be zero in figure. That’s why by putting your living expenses at the end, you would be force to budget your expenses for the whole month at the start of the month. This would ensure a constant increase in your future modal and also a living now.
Not enough? Is that the question you have in mind? Then budget is the word you need to learn. A budget helps to limit your monthly expenses, you would be more aware of your financial status within the month. This would help you live the life you want and also save some for the future.
How to budget? This is only my suggestion, you would have to try it out to see whether it works on you or not. First of all, take care of those overhead you have every month, such as rental, loan payment, family support etc. After that, you should take into account your living expenses such as food, transport, electric etc. At the end, would be your miscellaneous expenses, such as entertainment, clothing, etc. Budgeting is about prioritizing, you should put the “must do” things first and the “want do” things last.
If you have been following my blog from the first article, the suggestion I made to you are also arrange according to priority. I suggest to invest first, enjoy second, upgrade third, help others fourth, long term fifth then care for now last. That’s the priority of many millionaires according to books like “ Secrets of the Millionaire Mind”. I have no millionaire friends but the author does. So we learn and use, some day we would be millionaire too right?
Have a try, budget today with the mind of
60% to live.
By,
Yong Yeong Chow
Public Mutual Unit Trust Consultant.
MSN: yyc83@hotmail.com
* Catch me on MSN for a chat.
Wednesday, August 15, 2007
Wednesday, July 25, 2007
10% for the Unexpected
Have you experienced before a sudden family emergency? Maybe an accident or other cases? I hope not, but life is not expectable sometimes. That’s why we have to be prepared for it financially or mentally.
Thus, I suggest that you save
10% for the Unexpected.
Is 10% enough? I hope it is. 10% every month would amount to quite an amount in a year. But if emergencies do happen and you need more money, there are always other accounts that you saved up. That’s why you need to save money and not spend it all.
Where to save? Saving money at the right place is very important in this world where inflation keeps eating away our money. I suggest that you save 50% of your money there, and the other 50% in a low risk financial tool example Fix Deposit or a Bond Fund.
Why not all in bank? Because money saved in banks are given too less interest to normal practice is below 1%. With an inflation rate of about 5-6%, your money in bank is getting less every year. Fix deposit will help in the fight with inflation by providing 3-4%, while Bond Funds provides a constant 8-10% every year.
Why not all in FD or Bond Fund? Liquidity would be the problem. Savings in bank could be taken out thru ATMs before midnight. FD could be taken out only in office hours. While Bond fund needs 5 working days before you get the money. Thus, it is better to save separately to avoid financial problems when emergency arise.
How about insurance? Personal Accident insurance only cover you accidents , Medical is also the same. Some medical does cover the whole family, but normally doesn’t include your parents. So, I suggest you do buy a PA and a Medical but still you need to save some up because emergencies could not be expected.
I hope you won’t need to use the money but still you must save
10% for the Unexpected.
By,
Yong Yeong Chow
MSN: yyc83@hotmail.com
* Catch me on MSN if you need FREE financial advice.
Thus, I suggest that you save
10% for the Unexpected.
Is 10% enough? I hope it is. 10% every month would amount to quite an amount in a year. But if emergencies do happen and you need more money, there are always other accounts that you saved up. That’s why you need to save money and not spend it all.
Where to save? Saving money at the right place is very important in this world where inflation keeps eating away our money. I suggest that you save 50% of your money there, and the other 50% in a low risk financial tool example Fix Deposit or a Bond Fund.
Why not all in bank? Because money saved in banks are given too less interest to normal practice is below 1%. With an inflation rate of about 5-6%, your money in bank is getting less every year. Fix deposit will help in the fight with inflation by providing 3-4%, while Bond Funds provides a constant 8-10% every year.
Why not all in FD or Bond Fund? Liquidity would be the problem. Savings in bank could be taken out thru ATMs before midnight. FD could be taken out only in office hours. While Bond fund needs 5 working days before you get the money. Thus, it is better to save separately to avoid financial problems when emergency arise.
How about insurance? Personal Accident insurance only cover you accidents , Medical is also the same. Some medical does cover the whole family, but normally doesn’t include your parents. So, I suggest you do buy a PA and a Medical but still you need to save some up because emergencies could not be expected.
I hope you won’t need to use the money but still you must save
10% for the Unexpected.
By,
Yong Yeong Chow
MSN: yyc83@hotmail.com
* Catch me on MSN if you need FREE financial advice.
Thursday, July 19, 2007
Lift Up Other with 5%
You have make money work for you; you have enjoyed the things money can bring to you; you have upgraded yourself; now, you should also help others to do so.
I suggest that for every month you use 5% of your salary to give out to charity.
Lift Up Other with 5%
Why give to charity? As the old saying goes, “What you give would come back”. You pass out hatred to people, you probably get back hatred; you laugh people when they upgrade themselves, you probably would be laughed at on other things. Ever experience such things? Yes, I did, how bout you? So, if bad things come back, good things would too. Today you help people, tomorrow people would help you.
5% can’t help? Then you are wrong. 50 cents could fill a beggar’s stomach for half a day; RM 50 can fill up the stomach of a family in the lower income group; RM 100 can do much more. The truth is, how much you give is not important, the important is your willingness to give.
Give to who? If RM 1 is what you are willing to give then just give it to the beggar. But if you are thinking of larger sums, I suggest that you donate to established organization like WWF, Red Cross etc (type “Charity” in Google to find more). Some of you might have religious offering like churches or mosque, those are also fine. But for Chinese Malaysian, I would recommend donating to our education establishment.
Wait till you are rich? Well, you might have the idea that Bill Gates only give 80% of his wealth to charity when he’s rich or Warren Buffet gave 90% of his asset to charity when he is rich. But you are wrong, both of them have been giving to charity a long time. But the more they give the more they get back, they are not the only ones. You might be the next one.
Give it a try, start to
Life Up Others with 5%
By,
Yong Yeong Chow
MSN: yyc83@hotmail.com
* Catch me on MSN for FREE financial advice.
I suggest that for every month you use 5% of your salary to give out to charity.
Lift Up Other with 5%
Why give to charity? As the old saying goes, “What you give would come back”. You pass out hatred to people, you probably get back hatred; you laugh people when they upgrade themselves, you probably would be laughed at on other things. Ever experience such things? Yes, I did, how bout you? So, if bad things come back, good things would too. Today you help people, tomorrow people would help you.
5% can’t help? Then you are wrong. 50 cents could fill a beggar’s stomach for half a day; RM 50 can fill up the stomach of a family in the lower income group; RM 100 can do much more. The truth is, how much you give is not important, the important is your willingness to give.
Give to who? If RM 1 is what you are willing to give then just give it to the beggar. But if you are thinking of larger sums, I suggest that you donate to established organization like WWF, Red Cross etc (type “Charity” in Google to find more). Some of you might have religious offering like churches or mosque, those are also fine. But for Chinese Malaysian, I would recommend donating to our education establishment.
Wait till you are rich? Well, you might have the idea that Bill Gates only give 80% of his wealth to charity when he’s rich or Warren Buffet gave 90% of his asset to charity when he is rich. But you are wrong, both of them have been giving to charity a long time. But the more they give the more they get back, they are not the only ones. You might be the next one.
Give it a try, start to
Life Up Others with 5%
By,
Yong Yeong Chow
MSN: yyc83@hotmail.com
* Catch me on MSN for FREE financial advice.
Wednesday, July 11, 2007
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.
*if you like to be notified everytime i update this blog (normally once a week) you can email me.
*if you want the suggestion in your email everytime i update, jsut drop me an email saying so.
By,
Yong Yeong Chow
Public Mutual Unit Trust Consultant (Certified Financial Planner to be)
MSN : yyc83@hotmail.com
* you can chat with me there
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.
*if you like to be notified everytime i update this blog (normally once a week) you can email me.
*if you want the suggestion in your email everytime i update, jsut drop me an email saying so.
By,
Yong Yeong Chow
Public Mutual Unit Trust Consultant (Certified Financial Planner to be)
MSN : yyc83@hotmail.com
* you can chat with me there
Wednesday, July 4, 2007
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.
Yong Yeong Chow : Public Mutual Unit Trust Consultant (Certified Financial Planner to be)
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).
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
Wednesday, June 27, 2007
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
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!
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!
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