The keys to personal financial success !

Key number 1 - Be Debt Free !
While our grandparent’s time advocate saving is a virtue, our modern day philosophy is live for today and pay in the future. We only live once isn’t it ? Spent it since we wouldn’t know what would happen tomorrow.

As more and more people grew to believe the later to be true, we have inevitably made ourselves more vulnerable to become debt burdened.

I believe the highest interest rate for loan currently being charged the loan from credit card, where 24% p.a will be charged if card holder spent beyond his credit limit.
That is 2400 for every 10K spent beyond the credit limit. Is this amount spent necessary ?
Why not we prevent all this in the first place by spending within our limit ?

May be you blamed it to the temptation of the modern luxuries where we just cannot resist indulging on stuff like iphone, Sony laptop, Prata, LV. However it boiled down only to one word. Discipline ! If one had save up the money where he spent on his car loan every month , e.g. 800SGD and put it into a fixed deposit or unit thrust, he will gain much more in years to come. With the compounding effect of interest, a monthly saving of 400 for about 40 years would easily make you a millionaire.

Key number 2 – Acquire Property !
Having a property not only boost one self ego ( the feeling of owning something ), it also gives one a much stronger position when he would apply loans from the banks with very low interest rate, long loan repayment period and highest approved loan amount.

In a company scenario, with depreciation of the property and the interest paid up for the financing of the property being recorded on the balance sheet before tax profit. It can be effectively use to reduce the tax being imposed on the before tax profit figure and potentially save some money from the amount of tax paid.

Key number 3 – Be knowledgeable in your Financial Management.
Would you feel comfortable if someone told you, give me all your money in your bank and I give you a 50-50 chance to triple the amount in your bank balance. I don’t think I will because why would other people be interested managing our money since the money doesn’t belong to them in the first place. What they are concern is that they need your money to make investment, exposing OUR risk for a chance to POTENTIALLY make some profit and be able to reap some commission from it. Therefore, their mind set is to acquire as much customers as possible, thereby increase their GAMBLING chance and commission. You have to be the master to your own finance, else you just can’t control where your money would flow. It can well just flow out of your pocket and never get back.