Practical Tips to financial freedom
1.) Cancel your credit card if you have have, pay them off as soon
as possible, go for debit card instead. It is a sin to spend future
money and usually you will end up paying much more later on.
2.) Set up a budget listing all of your source of incomes and
expenses, look for way to eliminate those bad expenses. This way,
you can have a clearer picture of your financial health and can
take step to rectify it if it is showing problem.
3.) Go buy insurance to protect your income stream and major
illnesses. You never know when illness or accident can occur.
4.) Set up a saving plan and stick to it. Saving consistantly is
the only way to financial freedom, you will need money to make
money, even setting up a business need money and unless you are
born rich, you will need to save to build up your capital before
anything else can happen.
5.) Invest your CPF ordinary account. Do not let it be idle with
CPF Board. the return is only 2.5%, investing it in reputable
mutual funds can easily enhance the return
6.) Avoid Car purchase as they are appreciating liabilities.
Singapore transportation system is worldclass though many see the
fare increasing every now and then but if u serious consolidate all
the various costs of car ownership, you should see that it is still
relatively cheaper to take public transport. just to name a few
cost, Car insurance, road tax, car maintainence cost, carparking
cost, ERP, Fuel cost, Interest cost, Opportunity cost, potential
legal liability, where as in the area of public transport, it is
only the fare we are talking about. You think about it and
decide.
7.) Learn more about investing and the risks involved. You should
understand the various investing instrument such as equity, bond,
real estate, insurance, structured product, mutual funds, hedge
funds, forex trading, futures trading, option trading, warrant
trading. there is a vast array of instrument for you to choose. it
is quite fun actually when you got the funds and making the choice.
YOUR CHOICES.
Though i know i will surely be flamed for saying this, but not all
people can be financially free. Reason is simple, human free will,
People can preach to you that you should spend time thinking about
your future, about the need to save and protect, people tend to
dismiss it as nonsense and still carry on their spendthrift
way.
Actually it is a blessing for the little bit of us who believe in
saving cause they will be the group of people who will sustain the
world wide economy and become poorer when we the minority become
richer. Let face this, if everyone in the world save aggressively
and never spend, the worldwide economy can be brought to a stand
still.
Though i myself is not free yet, but i set for myself a 15 years
plan and i aim to be free when i hit 40.
