path_seeker
Junior Member
- Joined
- Jun 21, 2012
- Messages
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Hi all
Last year i begin taking charge of my finance when i became a father. I been reading alot of books,doing research and also attended some seminars. When i talk to most of my friends, i realised they reminded me of myself when i was a total noob when it comes to money. i had wrote an article and was wondering if i could pass it to them and hopefully it would make a diffeernce to their life.
I would hope some guru here would share its sentiments or correct me before i give it a final vett and share it with the ones i care about.
This simple article is about how i feel abt money and financial mangement.
Thank you all.
"I sincerely want to make a world a happier place by sharing some of the knowledge I would like to offer for those who might find these useful. All the information shared is of no ill intention to any organization or anyone.
Money makes the world goes round?"
It’s a cold hard fact that money is a great deal to a lot of people. They can’t live without it even though most can’t outlive it as well in the most ironic way. But really, do money really makes the world go round? Of course, money is a very important factor as it helps us to pay our bills, give us shelter and all other necessities needs. It basically runs our lives as one can say. But, if one can only see money as a simple tool to help us gain stability and functionality in our daily lives, do they really need to chase it as if it really make the world go round? I say, why don’t we take charge of this tool and run it like well oiled clockwork mechanism so we can have more time to do other things that make us really happy in life?
By taking charge of this tool simply means applying this thing call “Financial Management” over our favorite free-will attitude of spending money in a non systematical method. Everyone knows that we have to do financial planning, save up for rainy days etc… But how many really know why and how should we do it?
I had come to realize that there is insufficient knowledge about financial management in our school days. We were all told to study hard so we can earn more money to buy a bigger house or car to gain higher social status. All this will eventually lead us a larger debt ratio in our lives while the rich get richer. I personally feel that everyone, especially those in the lower income group needs a have a basic knowledge what financial management is all about. If we don’t take charge of that tool know as money, how can one be really carefree and be happy chasing after it?
I would love to share with those who really wanted to make an effort to take charge of the tool and live life in another dimensional way of not chasing money, but simply uses it like a handy tool? There are thousands of ways to do a proper financial management, but to make things really simple and easy for all, I suggest we can adopt the “P.A.I.D” concept.
Protection Accumulation Investment Distribution
1. Protection.
One should always stay protected by spreading risk through insurance. It simply means if 1 in 1000 people were to get run over by a car, all the medical expenses or liability of that unfortunate soul will be share by the 1000 people who had pool their money together to spread the risk. The most basic protection one should get is by upgrading its personal medical shield plans to a better privatize plans using one’s medic save. This is to lower a significant amount of medical charges one has to bear in time of need. Term insurance coverage is a also good way to make sure one is to be sufficiently covered for each individual liability.
2. Accumulation
We must save and slowly accumulate our hard earned money for rainy days. A good thumb rule is to save at least 20% of you household income. Start by doing a household income budget and set aside an amount of saving at the start of the month instead of doing it at the end of the month, saving what is left of. Do live within your means and live life in the delay gratification manner. One important rule is not to have too much of saving. Just make sure you have about 6 months of your household expenses of rainy days funds. Anything more is just going loses it value over inflation over the time.
3. Investment
I am sure most will be asking what to do with the additional money once my saving hit 6 months of reserve. This is a very tricky situation as it depends to every individual needs and goals. To start off, you must make a financial goal like saving a specific amount for your wedding, a new car, new house, retirement. And also, another important factor is the horizon of the period for your goal. From there, you will know how much risk or liquidly the saving needs to be. Let’s study some of the way that how you can make your additional saving work harder for you to preserve its value as below:
Type of investment
Fixed D
Bonds
Endowment saving
Shares/Low Risk
Shares/High Risk
These are some of the ways how one can make his saving work harder to preserve its value. But always remember there are always risk involved in any kind of investment and its best to diversify your funds to minimize the risk.
4. Distribution
How will your assets be divided when you are no longer around in this universal on day? Distribution of your personal total wealth beforehand is a very good way to take care of things the way you want it to be. You would have to distribute in unbiased manner to your love ones according to their needs and requirement.
Lastly I hope anyone who had just read this will try to make some minor adjustment their lifestyle and do some personal financial planning. Sop being those who keep coming up with all kind of excuses to go to the gym and adopt the diet starts tomorrow philosophy . Stop procrastinating and take charge of your own money now!
Mr B
Last year i begin taking charge of my finance when i became a father. I been reading alot of books,doing research and also attended some seminars. When i talk to most of my friends, i realised they reminded me of myself when i was a total noob when it comes to money. i had wrote an article and was wondering if i could pass it to them and hopefully it would make a diffeernce to their life.
I would hope some guru here would share its sentiments or correct me before i give it a final vett and share it with the ones i care about.
This simple article is about how i feel abt money and financial mangement.
Thank you all.
"I sincerely want to make a world a happier place by sharing some of the knowledge I would like to offer for those who might find these useful. All the information shared is of no ill intention to any organization or anyone.
Money makes the world goes round?"
It’s a cold hard fact that money is a great deal to a lot of people. They can’t live without it even though most can’t outlive it as well in the most ironic way. But really, do money really makes the world go round? Of course, money is a very important factor as it helps us to pay our bills, give us shelter and all other necessities needs. It basically runs our lives as one can say. But, if one can only see money as a simple tool to help us gain stability and functionality in our daily lives, do they really need to chase it as if it really make the world go round? I say, why don’t we take charge of this tool and run it like well oiled clockwork mechanism so we can have more time to do other things that make us really happy in life?
By taking charge of this tool simply means applying this thing call “Financial Management” over our favorite free-will attitude of spending money in a non systematical method. Everyone knows that we have to do financial planning, save up for rainy days etc… But how many really know why and how should we do it?
I had come to realize that there is insufficient knowledge about financial management in our school days. We were all told to study hard so we can earn more money to buy a bigger house or car to gain higher social status. All this will eventually lead us a larger debt ratio in our lives while the rich get richer. I personally feel that everyone, especially those in the lower income group needs a have a basic knowledge what financial management is all about. If we don’t take charge of that tool know as money, how can one be really carefree and be happy chasing after it?
I would love to share with those who really wanted to make an effort to take charge of the tool and live life in another dimensional way of not chasing money, but simply uses it like a handy tool? There are thousands of ways to do a proper financial management, but to make things really simple and easy for all, I suggest we can adopt the “P.A.I.D” concept.
Protection Accumulation Investment Distribution
1. Protection.
One should always stay protected by spreading risk through insurance. It simply means if 1 in 1000 people were to get run over by a car, all the medical expenses or liability of that unfortunate soul will be share by the 1000 people who had pool their money together to spread the risk. The most basic protection one should get is by upgrading its personal medical shield plans to a better privatize plans using one’s medic save. This is to lower a significant amount of medical charges one has to bear in time of need. Term insurance coverage is a also good way to make sure one is to be sufficiently covered for each individual liability.
2. Accumulation
We must save and slowly accumulate our hard earned money for rainy days. A good thumb rule is to save at least 20% of you household income. Start by doing a household income budget and set aside an amount of saving at the start of the month instead of doing it at the end of the month, saving what is left of. Do live within your means and live life in the delay gratification manner. One important rule is not to have too much of saving. Just make sure you have about 6 months of your household expenses of rainy days funds. Anything more is just going loses it value over inflation over the time.
3. Investment
I am sure most will be asking what to do with the additional money once my saving hit 6 months of reserve. This is a very tricky situation as it depends to every individual needs and goals. To start off, you must make a financial goal like saving a specific amount for your wedding, a new car, new house, retirement. And also, another important factor is the horizon of the period for your goal. From there, you will know how much risk or liquidly the saving needs to be. Let’s study some of the way that how you can make your additional saving work harder for you to preserve its value as below:
Type of investment
Fixed D
Bonds
Endowment saving
Shares/Low Risk
Shares/High Risk
These are some of the ways how one can make his saving work harder to preserve its value. But always remember there are always risk involved in any kind of investment and its best to diversify your funds to minimize the risk.
4. Distribution
How will your assets be divided when you are no longer around in this universal on day? Distribution of your personal total wealth beforehand is a very good way to take care of things the way you want it to be. You would have to distribute in unbiased manner to your love ones according to their needs and requirement.
Lastly I hope anyone who had just read this will try to make some minor adjustment their lifestyle and do some personal financial planning. Sop being those who keep coming up with all kind of excuses to go to the gym and adopt the diet starts tomorrow philosophy . Stop procrastinating and take charge of your own money now!
Mr B
