Do you have Money to Invest?

Hi,

This week you probably have read this headline several times in your newspaper : DOW Hits Another High!

The stock market has been very active in the past few days. The Dow market marked its 12th all-time closing high in 17 sessions. You may already have cashed out your profit and now enjoying the fruit of your smart investment. This is the beauty of Passive Income, in this case you earned it through just a phone call to your broker or a few mouse clicks if you are trading on line.

Or, you have missed the boat? What have preventing you for investing? I am not just talking about stock but
referring to all kind of investments that will provide us with a consistent stream of Passive Income [please read my post on Chasing Daylight : the importance of having Passive Income].

Some of us get on with our live without much saving and when a good money opportunity knocking our door we find ourselves do not have the resources to take advantage of it. Saving of money is so important without it we can't create Passive Income streams for us to be financially free. Certainly, saving without investing is equally bad.

So how exactly could we manage our money?

In his book Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth, Harv suggested the following:

(1) Put 10% of money into a separate bank account designated your Financial Freedom A/C.
This money is used for investment or creating Passive Income streams. The money in this Financial Freedom A/C is never spent-only invested.

(2)Put 10% of money into "play" account. This account is primarily used to nurture yourself. It is for the special things that you enjoy doing like going for a holiday, renting a boat for the day. Or go to a posh restaurant. The rule of this account is that it must be spent every month.

(3)Put 10% into your Long-Term Savings for Spending Account

(4)Put 10% into your Education Account. This is to equip yourself with the necessary skill and knowledge to be financially free. Or, to increase your financial literacy.

(5)Put 50% into your Necessities Account

(6)Put 10% into your Give Account. There is a Universal Law that says the more you give, the more you get. I strongly believe it!

Whatever money you have , begin managing it now. Do not wait another day. Even if you only have a dollar. Manage that dollar and you well be on the road to Financial Freedom.

To your success and happiness.

Are you ready to be Financially Free?

Hi,

Most of us learn about money at home,that is mainly from our parents. They simply say "Stay in school and Study hard so that you could get a good paid job". Thus, we may graduate with excellent grades but with a poor financial mind-set.

That is why so many high-income professionals,doctors,lawyers,athletes and even accountants are basically broke. From outside they may look very rich and "expensive" but in reality they are highly in debts and could not afford to loose their job.
Their income could not catch up with their "expensive" living life style and therefore they are basically broke if you add up all their assets minus their liabilities (ie,negative net worth). [read Rich Dad, Poor Dad]

The problem is Money is not taught in schools. We are not taught in schools how to manage our money with a goal to achieve financial freedom. Most of us grew up being programmed that we "have to work hard for money" but not the other way round "money work hard for us".

So, how do we get started?

The financial freedom model is not complicated. In his book Secrets of the Millionaire Mind T Harv Eker laid out four simple elements in the financial freedom model:
(1) Income
(2) Savings
(3) Investment (to generate more Passive Income)
(4) Simplification

Income comes in two forms - Working Income and Passive Income. Working income is the money we earned through our active work, for example our pay check from our day-to-day job.
Working income is important to most of us without which we will not have Savings to generate passive income. However, since working income need our physical involvement we should not totally forcus on it. Passive Income is money that earned without us actively working. In other words, passive income is being earned while we are sleeping or watching our favorite TV programmes.They include dividend income from our stocks, interest income from time deposit, rental income from real estate etc.. We should pursue Passive Income earnestly, as this is when our Passive Income exceeded our living expenses we attained the Financial Freedom.

Savings is so important. Without savings we can't go to the next stage - Investment. You can earn a lot of money but if you don't keep any of it, you will never create wealth. Financial Freedom is not how much money you have but is more about how much money you could keep and grow. Delay your immedaite gratification to achieve long term financial goals.

Invest your savings wisely so that to grow your money. Every dollar in your bank is your employee so make sure they work hard for you. Generally, the better you are good at investing, the faster your money will grow and generate a greater net worth (I will show you how in my future postings, so stay tuned).

Simpliciation in my own words is having a cost of living that substainable by our Passive Income. Remember, our utlimate goal is to be financially free and have time to do things that we always like to do. Thus, if you want to have three vacation homes then go out to find enough passive income to support this financial committment. If you can't stay put at where you are first, but do not forget your dream of having three vacation homes.

Harv's book Secrets of the Millionaire Mindis a good book to start to get our mind-set ready to be financially free. I hope you will benefit from his book and get ready to be financially free, it is easy and sometime is fun just like a football game.

To your success and happiness.

Chasing Daylight

Hi,

I am going to share with you the importance of spending quality time with your family and friends before it is too late.

Eugene O' Kelly, the former Chairman and CEO of the Accounting giant KPMG was in the full swing of life at 53 and enjoyed a successful career until that fatal day on May 24, 2005 when he was diagnosed with brain cancer in his doctor's office. He was given 100 days to live. Six days later he relinquished all his positions in KPMG and began his last 100 days journey, leaving him just enough time to say goodbye.

In his book, Chasing Daylight is the account of his final journey. A compelling message from the book is about to live a more vivid, balanced and meaningful life. In his fast pace corporate life he was so immersed in his job that over the course of a decade, he managed to have lunch with his wife on weekdays just twice. His travel schedule was set 18 months out. In the book, you could feel his sense of regret. " Had I know then what I knew now," he says, " almost certainly I would have been more creative in figuring out a way to live a more balanced life, to spend more time with my family."

He passed away September 10,2005.

You and me have a choice Now! (at least we have more time than Eugene) We have to act fast if we decided that family is the most important thing that we care about. Honestly, we have spent more time talking to our business associates than listening to our children. Is this wise?

I can hear you screaming! " I work hard, 10-13 hours/day is to give my family a good life! I care about them let's why I keep on working,working, working..." I can hear you and I understand.
However, while we could provide all the material needs to our family but we could miss the most precious things in our life that is to share those little special moments (happy or sad) with our love ones, to connect with our children, to enjoy quiet time with our wife or husband every day, to catch up with old friends etc..

Is there a way out?

The answer is a resounding .......YES! and the way is to generate Passive Income, many of Passive Income that do not need our physical involvement (thus you could have more time for your family and you do not worry about the next pay check).

But, how? Where could I get Passive Income ideas? I do not know of anythings except my own profession? The good news is that you do not need a MBA to become rich and be financially free.

Get inspired from Rosalind Gardner's experience. She was once a government employee working as traffic controller but now earning US$437,000 per year through her Internet affiliate programmes. Get a copy of her Supper Affiliate Hand Book Now! to duplicate her success stories.

A good start is to read as many Financial Freedom books as possible to increase your financial literacy. One book I strongly recommend is Rich Dad, Poor Dad you could also go to
Rich Dad Resources to get more fresh ideas on Passive Income.

In my humble Mind.your.Money site I have carefully selected books that are relevant on this Financial Freedom subject and hope that will cut short your learning curve.

By just reading of Financial Freedom books without actions will not make you financially rich. Do not get demoralized by other people comments on what you are doing, but always remember the lesson from Chasing Daylight .

To your success and happines.