This is the final part of this book review.
Once again, I have to thank
Noryani Ismail from "From Dead Broke to Cash Rich" and
Susan Reynolds and Lauren Bakken from “One-Income Household – How to Do a Lot with a Little”
for their guidance.
During my tours on the internet yesterday, I do encounters many on-line advices on how to reduce credit card bills. Some of which even told me to shift all my debts to a 0% or low interest account. I have something to say, "Tried that, Done that & Screwed that too". Closing credit card accounts, as said on these sites, will make a bad financial credit record. But, you will be a worse condition by shifting all your debts into one account, clearing up the offending accounts and yet not to close them. I would advise otherwise, as on the same track as these writers, who may also "done the same".
Once you cleared the account, you are no longer in debt with that bank, and if you do not need so many cards, for God's sake, REMOVE them. I know the banks not going to like my statement here. But that's the truth. So if you take the advise or not, it is entirely up to you.
This is the summary we had discussed:
1
Recognise That The Root Is the Problem
2
Show Me the Money
3
Open Up
4
Seek Professional Help
5
Make Tough Decisions
6
Keep Daily Financial Records
7
Avoid Monthly-Instalment Payment Options Like
The Plague
8
Change Your Shopping Habits
9
Create Multiple Sources of Income
1 Create Multiple Sources of Income
a.
Spending less and saving more is the first
strategy out of financial misery. However, no matter how much you save, it will
take you a very long time to repay all of your debts and set you on the road of
financial freedom, with just one income.
b.
As there are multiple methods of spending money,
of course there will be more than one way earning money.
c.
Developing multiple sources of income does not
mean that you will be using your employer’s time. You can develop alternative
source of income on your own time. Or develop business that does not require
your presence to run. You can hire someone to work in the business you own.
d.
Some runs a leasing services, like taxis, shops.
Some write books and earn a royalty out of it.
e.
There are plenty of opportunities out there for
you. Just keep an open mind and do not stop looking. Remember, if you cannot
afford it or do not like it, do not let anyone talk you into it. Your new
venture should not require a large chunk of your money at this time or require
you to make monetary commitments that you cannot afford.
f.
Many have been cheated during their quest on
finding additional income the quick and easy way. Many invested in Stock,
options and properties only to lose it all. What they do not understand is
investment is not something to do with your life saving or your emergency fund.
Every single individual should have money saved for their retirement. Money
saved for retirement and emergency cannot be used for anything else because
this is your lifeline. It is something you fall back on should everything
fails.
g.
Many unscrupulous business people, especially
ones with a gift of the gab, successfully convince people to invest in a
business, scheme or fund that they are developing. And many people lose money
in the process. So how do we know whom we can trust?
h.
Number one rule of investing is to invest in
something you understand. And it you do not understand it, learn about the
business before you make any decisions. And you are not 100% sure what to do,
do nothing. Simple as that. Investment brokers and agents may rush you into a
decision satin that if you miss this chance, you will lose a once-in-a-lifetime
opportunity. Do not fall for that. Whenever you are rush, you often cannot
think straight. The Richest Man in Babylon says, “Better a little caution than
a great regret.”
i.
Most people say that you need money to make
money. And they will say it with frustration written on their face. Many people
think that they need to take on a huge loan to start a business. This is
because they are only familiar with large scale business such as opening a
restaurant. What about something small and capable helping you make a lot of
money, as long as we are willing to work hard.
j.
We want to do something today that will make us
rich in the quickest possible time. This is why many people fall for scams. You
see, you can make money with no money or very little money, there are ways that
are legal and morally acceptable by all standards. You just need yo get your
creative juices flowing on ideas. Then choose one path and get going.
- Planning the savings
There are many ways in planning savings, I heard of splitting into 4 taught in one of scriptures, which
(1) Savings (2) Donation (3) Expenditure (4) Investment
Otherwise, noted from the 2 books, which sounds more or less the same:
a.
With the money you have accumulated, split it
into 7.
i.
Savings & Emergency fund (Save it and forget
it)
ii.
Investments
iii.
Paying down debts
iv.
Charity
v.
Own Expenditure
vi.
Family Expenditure (2 portions)
b.
Many of us are too deep in debt to think of
dividing the money into so many portions. If this is the case, use the money
from second third and fourth to do this. If you do not start distributing your
cash this way, you will never get any closer to achieving any amount of
financial success.
c.
Remember, it is not the size of your pay check
or income that leads you down the road of financial freedom but what you do
with the money that matters.
d.
While waiting for the money in your investment
to grow. It is best to learn about good investment opportunities. Legal and
lawful ones only.
e.
Do not be surprise how your nest egg can attract
unwarranted attention. With your growing pile of savings, you may find a
growing interest from others wishing to borrow or suggest that you partner them
in an investment deal or a venture. Be alert and aware of some people and their
attention. Look, if you can go through the sweat, heartache and tears getting
yourself from dead broke to cash rich, there is no reason why others cannot do the
same. Furthermore, if you loan them money, you are not helping them in anyway;
you are merely helping to eliminate the symptoms and not the problem itself.
f.
We may feel pity for others but will they feel
the same for us when they do not repay us? Pity or any such emotion will not
put money or food on anyone’s table. So unless you are a bank or financial
institution, it is best that you stop offering to give your money to people who
have no means of repaying you. If they could, wouldn’t the banks approve them
for a loan? So if the banks are wise enough not to do it, so should you.
Instead, why don't you teach them how to plan their expenditures and savings as well?
Spread the knowledge!
3
Conclusion
a.
Above Steps to get back on track. After doing
so, it is easy to slip back to old ways. Therefore, your mind-set must be
changed first. Once you change your thinking, actions to complement your
thinking follow automatically, and you will have the power to change your life.
Let this be your lifetime occupation, building as many income pipelines as you
deserve. In order to continue to rise up the path of financial success, grow
your interest in the subject of money, read more, attend seminars and surround
yourself with people who have already achieved what you want to achieve so that
you can learn from them. You have got nothing to lose!
Notes complemented from
(2) Susan Reynolds and Lauren Bakken from “One-Income Household – How to Do a Lot with a Little” [ISBN: 978-1-60550-133-8]
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