For those who care to know about financial knowledge, it's
important to have 6 months savings, while the rest of the money set
aside into bonds, stocks, commodities, passive income, etc. Putting
more than necessary in banks is quite stupid.
I have a few plans myself, just sharing because I see my friends
owning cars/houses/maids/credit cards and looks very rich, but
every month working like a slave to pay all that. For me, money is
working very hard for me, so next time I don't have to work so hard
at all.
I know this sounds crazy, I am 25 but I am already planning ahead
for retirement, if you're younger than me, you have a headstart
advantage over me. I put 60k in investments altogether, so this 2-3
yrs will be tough for me, because I'm investing heavily since I
came from a poor family. Considering my investment growing at the
current constant rate, even if I go to jail now and come out 20 yrs
later, I'll still be a millionaire.
Secondly, I've invested heavily in my studies, because next time I
plan to come out and be a professor. I find studying extremely fun
and interesting. Since it's in my interests, next time I should
probably enjoy working. Education will help to get you out of
poverty, that's what I believe in, and something that I acted
upon.
Third, it's important to buy some insurance to cover illness
especially if you are not particularly rich. Even millionaires can
become bankrupt nowadays with the rising medical fees, believe it
or not. So always protect yourself physically and
financially.
Forth, it's good to be earning multiple streams of income. It's
amazingly fun especially when you know that you are in control. If
your income comes purely from your job, then when you gets
retrenched, then you have no cash flow. If you have MSI, then even
if you lost one customer ( your job ), then you still have plenty
to get along, your cash flow is not disrupted at all.
Fifth, I always hang out with positive/smart people ( most of the
time, they also happen to be directors and big shots so i guess
personality helps alot ), so they kind of influence me alot. I say
this because most of the time, people are so stubborn they refuse
to learn, they always think they are the smartest. So to be
financially savvy, you also need to be open minded and filter
information that can be financially beneficial to you. For example,
I wanted to buy a car last time for my gf, so I seek advice from
this business man, and he told me about all the things associated
with having a car, which luckily I listen and give up such a stupid
idea given my financial status at that time.
Sixth, it's important to have good work ethics. It doesn't matter
how good you are at your studies, if you have terrific work ethics,
you are opening many opportunities for yourself. I have gotten to
know many high ranking people from small companies to huge
companies through my hard work which they recognize and refer me
more clients. This is something you can't get even if you have a
PhD with lousy work ethics.
Seventh, I'm hoping to be an author in the future. I told my friend
and see what they think, they laughed at me, quite amusing. The
truth is I am writing everything I've learnt and I'm making things
happen instead of leaving it to luck. Every month during my spare
time, I write a small digestible chapter so maybe a few years down
the road, I should have enough to get it published. So to want to
be rich, you have to start taking responsibilities for your own
actions and make efforts to turn your dreams into reality. You
don't have to care what other people think, because chances are,
many people don't want you to succeed, and they try to put you down
with words or anything else they can, but successful people will
not succumb to such tactics. In fact, everytime people criticise (
non-constructive criticism ) me for something, it makes me want to
work so hard and driven to succeed. Part of the reason I wanted to
get a PhD anyway is not so much to make a living, since I intend to
have businesses, but the paper is to make a statement.
Also, I read alot of books, averaging 3/month, and it helps alot. I
used to be really stupid, in terms of financial sense and business
sense, but I've came a fair bit since then.
I hope those thoughts help, even though it might makes me sound
like an asshole, to some people, I might be, but otherwise I can be
really nice person.
