March 9th, 2009 by dawni

Financial Independence by Jim Rohn
Shortly after I met my mentor he asked me, “Mr. Rohn, how much money have you saved and invested over the last six years?” And I said, “None.” He then asked, “Who sold you on that plan?”

It is better to be a lender than a spender.

To become financially independent you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn profit into investment; and turn investment into financial independence.

Financial independence is the ability to live from the income of your own personal resources.

If you depend on your company to take care of your retirement, your future income will be divided by five. Take care of it yourself, and you can multiply your future income by five.

I remember saying to my mentor, “If I had more money, I would have a better plan.” He quickly responded, “I would suggest that if you had a better plan, you would have more money.” You see, it’s not the amount that counts; it’s the plan that counts.

If you were to show me your current financial plan, would I get so excited by it that I would go across the country and lecture on it? If the answer is no, then here’s my question: “Why not”? Why wouldn’t you have a superior financial plan that is taking you to the places you want to go?

I used to say, “Things cost too much.” Then my teacher straightened me out on that by saying, “The problem isn’t that things cost too much. The problem is that you can’t afford it.” That’s when I finally understood that the problem wasn’t “it” – the problem was “me.”

January 1st, 2009 by dawni

Money is often the main cause for disagreements and unhappiness.  The needs and commitments of every individual or couple differ and you need to plan your money accordingly.  Arguments and dissent start when there is no proper communication between partners in money matters.  Facts and figures should be clearly defined and planned.

You can manage your finances better if you put in all information about your money in writing.  You could file all your payables into a single file chronologically so you need not search for the bills and their due dates.  It is better to discuss your financial position regularly with your spouse or partner.  This will help you curb expenses and think twice before embarking on any expenses.

The first step is to analyze your monetary situation.  You have to assess your total income, expenses, debts, and their due dates.  Then, delve deeper into interest rates and loans to find how much you are paying over the years.  This will give a clear picture of your estimated expenses, how much money you need, and when.

Then prioritize the most important items and get it on paper.  Think of ways to save, and think of some fun ways to make extra money.

Although going through the bare facts may kindle worries, it is necessary to plan for your future.  Once you are aware of the problems, you can write down all possible solutions to make extra money to pay off debts.  After completing the list, you can again go over it and try to cancel the impractical ones and go ahead with sure ways of making extra money.

You will be happy when your plans materialize and you are able to repay your debts.  However, in case the plan does not yield the necessary results, you need to again get a better grasp of your problem before embarking on an alternate solution.

Monetary stress is mainly due to overspending and unplanned spending; you just buy on impulse and then repent your spending when you are not able to pay the debt.  Hence, it is necessary to make a budget and control your expenses to be able to have no stress about money matters.

You can take help from counselors and advisers to manage your money better without any stress.

October 14th, 2008 by dawni

We often start out with great expectations, shooting for the stars, but are quickly brought crashing back down to earth with reality.

To many people, reality means forgetting your passions, giving up your idealistic dreams, your lofty goals… and just stick to your daily dolrums where you can’t go wrong.

Ironically, it is often those very people who love us that hold us back and try to extinguish our efforts in reaching for the stars. They don’t want us to take any risks. They are afraid that we might get hurt.

How many of us start out with having good intentions, only to give up along the way?

How many of us know what we want, what we should do, and yet do nothing?

How many of us know… and are struggling along in the pursuit of our dreams?

How many of us don’t even know what we want?

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(If so, you can sing along with the song “I don’t know what I want” below!) LOL!

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Take some time to look within yourself… what do you really want? Is the star you want worth pursuing, inspite of circumstances, against all odds?

But not many people are willing to take action. Why? They are not willing to get out of their comfort zone. They are not willing to take the risk of getting out of their comfort zone.

Intention does not produce results. It is Action that produces results.

It does not matter how many books you have read, or how many seminars you have attended. It is still action that produces results. Massive consistent action is needed to bring about significant results.

If you have done the same thing over and over again and expect the different results, that’s called INSANITY! It is time to do something different.

Ask yourself, how much does it cost to buy a star? Are you willing to pay the price to buy your star? Are you willing to do whatever it takes?

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NOW IS THE TIME.

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References:

Anthony Robbins: The Edge – The Power to Change Your Life Now

The Edge - The Power to Change Your Life Now

I Don’t Know What I Want, But I Know It’s Not This: A Step-by-Step Guide to Finding Gratifying Work

October 4th, 2008 by dawni

This morning, I got shocking news about 2 old friends. I learnt that they had borrowed money from loan sharks and are on the run, one of them resorting to fleeing overseas never to return.

I guess their bad financial habits caught up with them. They used to borrow money and don’t return, and I guess that bad habit snowballed, getting them black-listed in the banking credit ratings, as well as severing friendships.

It is a discipline that they must learn, else no matter where they go, they will leave a trail of bad debts following closely behind!

It is a great lesson in financial discipline. We must be disciplined in the way we handle our financial matters. Little things matter, and if left disregarded, bad habits might snowball until it is out of our control… and destroy our lives, steal our future and crush our freedom.

And… that is definitely not the price to pay!

In the movies Money No Enough 1 and the recent Money No Enough 2, the lack of money brought plenty of trouble. The movie directors have been very upfront and frank about money matters, in true typical Singaporean fashion, no holds barred!

Never take risks that you cannot afford. Else you jeopardise your whole life!