Many of us hold a job and that is our only source of income. On a weekly basis, we pay a visit to Singapore Pool (state lottery) and pray to the Gods that a win-fall will come and solve all the money problems in our world. In short - we are not in control and allow external forces to determine how we feel about money. A year ago, after struggling with my young business and not having a fixed salary (try it, it will freak the hell out of you if you have been working in a 9-5 job), I had enough of this sucky feeling. ENOUGH! There has to be a way where we can be free of this anxiety and be in control of how we feel about money. Didn't we create an economical system to serves us instead of becoming a slave to it? I started researching and talking to people who has successfully attained the elusive 'financial independence'. That was when my obsessive reading begun and a new state of awareness about money started. Master your relationship with money - New state of awareness Money is NOT a means to an end. It is a great tool to help you achieve your goals and the lifestyle that you want but it is not the ultimate journey. Here is ther kicker *Spoiler Alert*, you will NOT find true happiness even if you achieve your monetary goals. *Shock waves in the room and gasping of air from the audiences*. Yes, I've been there and let me illustrate why. For those who have been working for a few years, think about this; when we all started our career fresh out of school, in our little heads we thought - won't it be great if I earn $xxxx amount and I will be happy? When I first started in my job, that number was $4000 monthly. Within 2 years I hit that mark and the exclude bonuses and guess how I felt? It felt great! For like a couple of days and after that I was back to my regular routine. The feeling didn’t last long and I am back by the run mill in no time, aiming at the next goal or the next promotion. It is good to have goals, it pushes you to be better but just remember at the end of the money rainbow, it is really only just a pot of paper. It takes more important factors such as love, contribution, gratitude, relationships, growth and etc in your life to make your happy. Hold yourself accountable - Accountability is the glue that holds committment to results Do you always blame external factors for your lack of money? A hospital bill, a family member in need of money, someone's wedding, high mortgage and the list goes on. It is time we stop giving excuses and 'men-up' (in our case, women-up) and learn to make smart decisions.
Plan your financials - A goal without a plan is just a wish Pen down how much you are spending on a monthly basis. There are apps for that now and many of them are free. From this data you can start putting them into different chests and plan where everything goes. Below is my monthly plan, my investments chest is more aggressive as I am working on an early financial retirement plan. You have to figure out a ratio that is comfortable for you, bear in mind that I did not start off with 50% investment chest straight away. I sold my car a year ago and found that public transport saves me a ton of money! The difference I saved is channelled to my investment fund and within a year I clocked up close to $50,000 in investments... how crazy is that! Discipline - The more discipline you become, the easier life gets
Reaching financial independence takes a good routine and repetition until the goal is reached. That means you need to commit to it and this is the part where many of us fall off the wagon. When I decide to commit 50% of my income to investments that means my bonuses or side income from other sources, I make sure half goes to this pot. If there are months that I earn less, I cut expenses at other areas to make this 50% happen. It sounds daunting at first but it gets easier once the momentum kicks in. I reached a point where it becomes enjoyable to see that pot growing because it means I am closer to my goal of financial freedom. Dream Fund - While working hard for the future, girls gotta want to have fun! Its not all boring and gloomy and your mind has to enjoy the process, having a Dream fund is part of the re-wiring. This fund is where you go for your trips, buy the bag you have been eyeing for a long time, donate to a charitable clause or even a gift for your spouse that you know he/she will appreciate. Through this your mind will see this process as enjoyable because you still get to enjoy and feel good as you are working towards your ultimate goal. As it is, I am using this dream fund for Adele's concert in Australia in 2017! It is going to be an exciting journey ahead. Start working on your chest, stick to it and rewire your relationship with money gradually. 10 years down the road, you will thank yourself today for taking that first step. It's only been a year and I am grateful to 'the year ago me' for getting started!
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Author"Earn more, spend less, invest the difference." Archives
February 2017
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