When you have the cash, I suggest you make a few short term and long term investments.
Short term investments bring returns in a short period of time whereas long term returns in a longer period of time. With these investments, your money keeps growing. Hence, you need not worry about facing the problems with the shortage of cash.
However, what to invest in and when, it depends solely on you to pick the best investments that suit you. Before you start investing, I strongly recommend you learn more about your investments before you invest. As often quoted by Mr Buffet, "Never invest in something you don't know".
Invest some time and some money in learning all those investments. It is worth the minor investments.
Friday, December 26, 2008
Monday, December 22, 2008
Managing Your Wealth
Once you had acquired those assets, such as Real Estates and Paper Assets, it doesn't stop there. You need to manage them. Otherwise, you wealth will decrease.
I start with Paper Assets. As I had mentioned in my previous postings, Paper Assets are those stocks, bonds, mutual funds and etc. After we acquire them, we don't just leave it like that. We must always keep up to date with the latest information about the assets, especially the market price. We should act according to the situation. I won't teach you the method about how to manage the paper assets. Instead, I advise you to read about it or seek professional advice.
Now, we go to Real Estates. When we acquire real estates, the 1st thing we must consider after that is the maintenance of the property. Any problems with the property will affect the value of it. So it is best we keep the property at its best. Besides that, when we invest in Real Estates, we must always keep up to date with the latest happenings in the surrounding. Anything happens around that place will affect the price of the property. So, we should act wise, based our rationality, not emotions. Consult experience people if possible. They can offer you tips and strategies that you can't find them in any books.
The 3rd category of assets, of course, is business. Different people do different business. I can't talk much about it but there's a principle we should stick to it. We must always manage our business well in order to sustain. Business is not a short term thing, but it is more of a long term work. I suggest you read more on managing business or consult experience or professionals.
Managing your wealth is necessary. Wealth is hard to find. If we don't manage it well, we will lose our hard earned money and effort.
I start with Paper Assets. As I had mentioned in my previous postings, Paper Assets are those stocks, bonds, mutual funds and etc. After we acquire them, we don't just leave it like that. We must always keep up to date with the latest information about the assets, especially the market price. We should act according to the situation. I won't teach you the method about how to manage the paper assets. Instead, I advise you to read about it or seek professional advice.
Now, we go to Real Estates. When we acquire real estates, the 1st thing we must consider after that is the maintenance of the property. Any problems with the property will affect the value of it. So it is best we keep the property at its best. Besides that, when we invest in Real Estates, we must always keep up to date with the latest happenings in the surrounding. Anything happens around that place will affect the price of the property. So, we should act wise, based our rationality, not emotions. Consult experience people if possible. They can offer you tips and strategies that you can't find them in any books.
The 3rd category of assets, of course, is business. Different people do different business. I can't talk much about it but there's a principle we should stick to it. We must always manage our business well in order to sustain. Business is not a short term thing, but it is more of a long term work. I suggest you read more on managing business or consult experience or professionals.
Managing your wealth is necessary. Wealth is hard to find. If we don't manage it well, we will lose our hard earned money and effort.
Saturday, December 13, 2008
Building Wealth
Every month, when you have extra savings, what will you usually do?
I have asked many people this question, they gave me various answers such as save it for the rainy days, buy things they want or change his or her car.
If you are new to the working world, the BEST thing to do is to SAVE it for the RAINY DAYS for the first few MONTHS. Instead of spending lavishly on expensive meals, branded clothing or new meals, we should save it, unless you have a huge reserves in your bank account. It is because we will not know what is going to happen next. Maybe you will need a huge sum of money then.
If you need to spend on a car, especially in Malaysia, where the public transportation is disappointing, I think we have no options but to buy a car. However, you should ensure that the car installment plus other care related expenses don't exceed 40% of your income. You need to spend on other things as well to enjoy maximum satisfactory in life, or we called it utility in economic terms.
Now back to Wealth Building business. When you have some reserves, you may think of building your wealth. Some people suggests on Insurance Plan. It is up to individual, but in my opinion, I prefer to invest in other wealth building plan. No doubt we need Insurance, but we don't need to many plan. After all, Insurance is also a business. People do it as a business. No 100% guarantee. It always has risk.
According to Mr Kiyosaki, the author of Rich Dad Poor Dad, in his book, titled,"Retire Young, Retire Rich", if a person wants to retire young, retire rich, in summary, the only thing to do is to acquire assets. So I adapt his advice and suggest that you should acquire assets. The assets we acquire should be relevant to the amount of money we have and also our capabilities.
Based on his books, there are 3 types of assets:
1) Paper assets
2) Business
3) Real Estates
I will not explain the meaning of the 3 assets. You may want to find out from Mr Kiyosaki's book. We have to think about what we want to acquire. But one should start small if they are inexperience and have limited funds.
In this new age, the INTERNET as well as NETWORK MARKETING have provided new opportunities to many people. It is up to them to decide whether they want to do it or not.
I have asked many people this question, they gave me various answers such as save it for the rainy days, buy things they want or change his or her car.
If you are new to the working world, the BEST thing to do is to SAVE it for the RAINY DAYS for the first few MONTHS. Instead of spending lavishly on expensive meals, branded clothing or new meals, we should save it, unless you have a huge reserves in your bank account. It is because we will not know what is going to happen next. Maybe you will need a huge sum of money then.
If you need to spend on a car, especially in Malaysia, where the public transportation is disappointing, I think we have no options but to buy a car. However, you should ensure that the car installment plus other care related expenses don't exceed 40% of your income. You need to spend on other things as well to enjoy maximum satisfactory in life, or we called it utility in economic terms.
Now back to Wealth Building business. When you have some reserves, you may think of building your wealth. Some people suggests on Insurance Plan. It is up to individual, but in my opinion, I prefer to invest in other wealth building plan. No doubt we need Insurance, but we don't need to many plan. After all, Insurance is also a business. People do it as a business. No 100% guarantee. It always has risk.
According to Mr Kiyosaki, the author of Rich Dad Poor Dad, in his book, titled,"Retire Young, Retire Rich", if a person wants to retire young, retire rich, in summary, the only thing to do is to acquire assets. So I adapt his advice and suggest that you should acquire assets. The assets we acquire should be relevant to the amount of money we have and also our capabilities.
Based on his books, there are 3 types of assets:
1) Paper assets
2) Business
3) Real Estates
I will not explain the meaning of the 3 assets. You may want to find out from Mr Kiyosaki's book. We have to think about what we want to acquire. But one should start small if they are inexperience and have limited funds.
In this new age, the INTERNET as well as NETWORK MARKETING have provided new opportunities to many people. It is up to them to decide whether they want to do it or not.
Wednesday, December 3, 2008
Diversifying your Source of Income
A working person usually have only 1 source of income, which is their PAYCHEQUE.
When the source of income is concentrated to 1 source, the risk of losing your income is higher. To reduce this risk, there are a few methods, but I think the best is either Insurance Plan or Alternative Sources of Income.
Regarding Insurance, I suggest the best you seek professional advice but for the Alternative Source, I recommend some E-Commerce or MLM. If you are interested to diversify your source of income in a MINIMUM start up capital, or NO capital at all, please visit this site, http://www.geocities.com/wengfei87 for more information.
When the source of income is concentrated to 1 source, the risk of losing your income is higher. To reduce this risk, there are a few methods, but I think the best is either Insurance Plan or Alternative Sources of Income.
Regarding Insurance, I suggest the best you seek professional advice but for the Alternative Source, I recommend some E-Commerce or MLM. If you are interested to diversify your source of income in a MINIMUM start up capital, or NO capital at all, please visit this site, http://www.geocities.com/wengfei87 for more information.
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