Consistency - Part 2

We have discussed on acquiring knowledge and experience consistently by reading, sharing, and asking. So, now it’s the time to take action! We have discussed about Savings in previous article which is key element before we start develop our investment portfolio. Hence, how it can be done and materialized? And more importantly is consistently!

I believe almost all of us are earning salary or monthly income consistently and why not we reflect it into our saving too! It has very powerful element in order to success with consistent saving. People always emphasizing on steady (or consistent) income but hardly people emphasizing on consistent saving. Hence, again as highlighted in my previous article on Earning Vs Saving where I emphasized on the percentage of saving compared to the actual amount because it shows the CONSISTENCY. Again I would like emphasize here that we must consistently allocate our hard-earned money (steady income) for steady saving to ensure we can expedite to develop our investment portfolio.

Our way forward towards financial freedom is mainly to develop consistency on saving from our consistent active income. By having this steady income, must ensure that we can have consistent saving too on monthly basis. When we can develop our consistent saving automatically we can generate passive income consistently (with assumption no money is spent from saving dividends). As we develop further, there will be consistent passive income higher than our steady active income (please read Levels in Financial Freedom). You’ll see the miracle when we do it consistently from beginning, where financial freedom is just ahead of us and it’s possible to achieve.

If you notice, this CONSISTENCY will actually develop attitude to achieve our goal toward financial freedom. Anything we want to develop must develop from attitude, not specifically only finance subject matter but anything on earth. So, key element to success is attitude which has to be developed from habit which actually CONSISTENCY. Hence, when we can do it consistently you’ll see that you’ll slowly, steadily, and consistently will develop your investment portfolio. Let us start do it consistently!

Levels of Financial Freedom – Part 3

We have seen from level four (4) to level three (3) was like a magic where suddenly have some passive income but very minimal amount and cannot be used as our core income in our life due to insufficient amount. So, we can move ahead for higher level?

Again to achieve higher level is not something can be achieved overnight but will take some time and efforts to reach there. Now, to be in level two (2) where our passive income could cater our expenses or is higher than our expenses will be more challenging because we have trained ourselves to spend more than 50% of active income (very common scenario). Remember that our passive income still lower than our active income in this level two (2) but somehow able to cater our expenses. In this level, our passive income not possibly from dividends only but should be some other means like in property investment, businesses, etc. Bear in mind that all these must be halal and legitimate so that we are seen as the most handsome or beautiful person financially.

Similar to level three (3), we could reduce first our expenses so that we can develop our confident level to go ahead for sourcing some means of passive income. There so many means where we can get passive income but ensure we are well equipped with knowledge so that risk and loss can be minimized. Don’t simply attempt without knowledge, and the worst part is don’t simply acquire knowledge without taking any action (I hope you can get my point). Once you’re taking action, then experience will follow and you’ll find your skills much better than the beginning of your involvement.

Great! Now we have reached level two (2) and eager to go for level one (1) where anyone in this earth are looking to be in this level. What is the main difference? Obviously, passive income more dominant than active income and it could be passive income is much higher than total of active income and expenses. How it could happen? This is something like from level four (4) to level three (3) where the skills play a role to acquire more means of passive income; you’ll experience once you have reached level two (2). Many more to come on this passive income in future articles. So, stay tune with me!

The key element to be financially free here is that we must be very passionate and patient in achieving our target because there will be so many challenges along the way. Always remember “where is will, there are multi-ways”.

Levels of Financial Freedom – Part 2

We have discussed about the worst level or stage of the ranking in financial freedom ruler. Wow!!! It seems like music chart where we have ranking will be changing by weekly basis and similarly our aim to move on to be the best level in financial freedom ruler.

The next level or level five (5) will be the expenses is equivalent to the active income or the monthly salary received by us. This seems like not an issue but ultimately will affect our goal to achieve financial freedom. What would be the possible ways to bring our level to next level (level 4)? Exactly! Similar approach like we did to move from level six (6) to level five (5). What? Forgot? Yes, then you have to read, read, and read even the same materials until we take it into action.

After we have cut expenses and increase our income (mainly active income), we should able to move to level four (4) where our expenses is less than our active income which may put under savings which ultimately will be used as our fund or capital for investments. All this lift-up process of the levels will not happen overnight but will take some time and we have to be passionate and patient to move steadily. Remember about consistency!

So, we have some savings from surplus of our active income and we should have put somewhere to give us some return which is mainly some dividends because at this level this is the only potential passive income for us (even there are potential better investment with proper planning). Without noticing it, we have moved to level three (3) where we have some passive income but definitely much lower than our expenses.

Let us digest first these three (3) levels here before we proceed higher level which are level 2 and ultimately level 1. Digest here is not only read, read, and read but also understand prior to take action. Definitely later we must take action to make it realistic. Whoever have reached this level, CONGRATULATION! We’ll move ahead to higher level soon.

Double Jeopardy

Double jeopardy is always one of the main key criteria in making any decision. Why is that so? Why we must always put some doubts on any products, services, promises, etc.? Sometime people may say that double jeopardy is not credible scenario but in reality anything is possible in this real world.

 

Hence, take this criteria as an opportunity to further refine any ideal ideas before implement it to be the real ideas. Bear in mind that there is no ideal scenario in this real world. How this can be applicable in our financial planning or towards our goal to be financially free from any burden?

 

There are many ways to achieve this financial freedom legitimately where most of the time many people may end up with scams if no sufficient knowledge in investment. How to get this knowledge? If you’re reading this and still passionate to read further then you’re in the right path in order to gain financial and/or investment knowledge.

 

Part of mechanisms to achieve financial freedom via buying financial related products and services in order we are secured and safe while executing our plan. They are so many salespersons want to sell their products or services claiming that they are the best among the best. The moment people claim they are very good, then, we must put some doubts on their products or services.

 

You may need this criteria when somebody is trying to sell you by saying that product A or service A from him/her is the best available in the market. Such statement is mainly from salesperson where want to sell their products only. Remember!!!! They just want to sell their products or services only!!! That is the reason we always require this criteria to evaluate the products or service.

 

 

 

So, how to get this criteria in to the place so that we can make unbiased judgement when buying products or services? If there is only one product or service then no choice to doubt on the product or service because from the definition itself states double or two. The simplest way to get this criteria by approaching some other competitors which offering similar products or services.

 

When we start comparing and asking couple of questions that the salesperson might notice that we're well aware of the product or the service that they're offering. Always remember that we must dictate what we need not what the salesperson(s) wants.

Kad Kredit - Bahagian 1

Siapakah tidak mempunyai kad kredit atau tidak pernah mempunyai kad kredit dalam hidupnya? Jika tidak mempunyai sekarang apakah sebabnya? Jika tidak pernah mempunyai kad kredit apakah sebabnya? Adakah kita memerlukan kad kredit dalam hidup kita pada zaman ini? Untuk apakah kita memerlukan kad kredit? Adakah kad kredit akan memanfaatkan kita atau bank akan manfaatkan daripada kita dengan adanya kad kredit? Kedua-dua senario ini boleh terjadi sekiranya pihak yang mengawal kad kredit tersebut menguasai dan dapat memanipulasi kad tersebut.

Apakah langkah dalam memilih sesuatu kad kredit? Apakah kriteria yang diperlukan dalam mendapatkan sesuatu kad kredit? Kebiasaannya pengguna muda yakni graduan yang baru memulakan pekerjaan amat teruja dalam menggunakan kad kredit kerana kononnya dengan menggunakan kad kredit ini, gaya penampilan akan menonjol apabila pergi membeli-belah atau ke restoran-restoran eksklusif. Tanpa disedari kita makin menjeratkan diri dalam perangkap hutang tanpa henti sekiranya niat kita tidak betul sewaktu mendapatkan kad kredit. Apakah kita perlu tahu terhadap sesuatu produk kad kredit sebelum kita memohon kad tersebut? Perkara yang paling asas adalah yuran tahunan yakni anda terpaksa keluarkan duit sendiri untuk membayar servis penggunaan kad kredit ini. Mungkin ramai yang akan tanya mengenai kad kredit yang tidak mengenakan yuran tahunan dan mungkin tidak percaya sekiranya menyatakan bahawa tiada yuran tahunan untuk sesuatu kad kredit itu.

Bagaimanakah kita boleh mengetahui kad kredit terbaik untuk kita? Nantikan artikel akan datang mengenai kriteria pemilihan kad kredit.

Real Investment

Investment should be something giving us back some values; it could be monetary values, experience, knowledge, etc. Investment itself may sound simple but when comes to execution level, it must be done very strategically so that risk can be quantified. Nothing in this world is safe and genuine especially money related matters. Hence, really need  detail analysis in order to materialize it. The fundamental on investment must be very strong so that can stand for any uncertainties, at least we are ready with way forward to face the disaster or namely financial crisis.

In order to invest in any potential profitable investments, we must know the pro and con of the industry. How to know it? How to gauge the risk of the industry? What to gauge? Where to gauge it? When to gauge it? All the checklist could be different based on different industry; namely stock, real estate, direct selling, gold, etc. 

People may ask how to get or to know all the checklists prior to start investment so that we are able to mitigate potential risk before, while, and after investing regardless any industry. For me as simple as reading ABCs because in our level while reading this article considered expert in reading but not same for kids who just started to know the alphabets. Once we know the alphabets, we must know the words so that can write it properly and so on so forth. Similarly, before we start investing in any potentially profitable investment, we must conduct some evaluation via some researches. Research here is not by pursuing doctorate in that investment area but reading subject matter related books, articles, magazines, etc. Some may suggest to go for seminars or talks even with no fundamental knowledge on that area investment area. For me I would say that you may go for the talks (one to three hours) which is normally free as introduction before they (organizer) organize the actual course, we may get some key points for us to do some detail study before attending the paid course. 

Buying books authored by the speaker(s) would be a good strategy before attending any paid course so that you have some idea on issues that we may have foreseen in the books. Besides to have some ideas, it's better to read because our database (memory) will store all the information read longer than via listening. Definition for research itself could be subjective based on the materials or approaches you will be using and we have to ensure the research should really feasible before take action in investing. Or else, some disasters will come even without actual financial disaster.

Hence, spare some time, money, efforts, and/or anything that can lead to financial knowledge enhancement so that we know the right path when start our investment. So, start your investment with knowledge first before anything else.