by Helmi Hakim | Mar 8, 2015 | Insurance, Investment, Miscellaneous
Latest, hot and spicy news!!! 1st Singapore Idol winner, Taufik Batisah is getting married!!! 🙂
I was humming, Singapore Idol’s Taufik Batisah, latest song, “Awak kat mana”
which means “Where are you?” in Malay….
The song is so catchy and the dance moves are so slick, cool and contemporary…. Nevertheless, sometimes, it can be annoying, when people keep repeating, “Awak kat mana? Awak kat mana? Awak kat mana?” :p
And as a financial consultant, everytime I hear this song, it reminds me to ask myself,
“Where Am I FINANCIALLY?” 🙂
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I used a few financial indicators and ratios to determine my financial bearings.
After doing my cashflow statement and my networth statement, I used these financial ratios to determine, if I am financially okay or not. I encourage you to use it too.
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1) Basic Liquidity Ratio
Basic Liquidity Ratio indicates your ability to meet your monthly expenses and other emergency needs.
Basic Liquidity Ratio= Cash/monthly expenses
Like a Malay proverb which says, “Sediakan payung sebelum hujan”, which literally means ‘Prepare your umbrella before it rains”.
In my own words, you need to prepare some liquid cash in your bank, that you can take out anytime you need, without any hassle.
As a rule of thumb, if you are an employee, I encourage you to have at least 6 months of your monthly expenses in your bank, ready for use during emergency.
If you are self employed, where your income can fluctuate up and down, have at least 12 months of your monthly expenses in your bank.
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2) Liquid Assets to Net Worth Ratio
Liquid Assets To Net Worth Ratio calculates the amount of net worth you have in terms of cash.
This is important because in an emergency situation, it may not be easy to convert your assets into cash, without any hassle.
You wont caught up in a situation, as my mum always say, “nak terberak, baru nak siapkan jamban” which literally means “wanna shit, then you want to dig a hole.”
Therefore, it is necessary to maintain some assets in cash.
Liquid Assets to Net Worth = Cash / Net Worth
I recommend you to have at least 15% cash in proportion to your networth.
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3) Debt Service Ratio
(measure the proportion of ‘take home’ income, net of CPF contributions, used to make regular repayments of debt)
Debt Service Ratio = Total monthly debt repayments / Monthly take home income
I recommend you to have a debt service ratio of 35% and below. It means you have enough take home pay to service your monthly debt repayment.
Anything above than that is unhealthy and will put a financial strain in your life.
You will not want to live life, waking up every morning, only to work and slog hard like a slave just to earn enough to pay your debt. Have some financial buffer and live life comfortably! 🙂
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4) Savings Ratio
(calculates the proportion of income the one sets aside as savings for the future)
Savings Ratio = Savings / Gross Income
Personally for me, if you are still single, don’t have much financial commitments, I highly recommend you to save as much money as possible. The higher your savings ratio, the better it is!!! 🙂
If you are married, have kids, and aged parents to support, target to save at least 20% of your gross income.
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5) Change In Income Ratio
((This Year Income – Last Year Income)/ Last Year Income) X 100
As you know, I am self employed and I make money by earning commissions when I provide my clients with financial planning advice. I have an excel spreadsheet where I monitor my commissions earned every month, cumulatively every year.
I expect my change in income ratio to increase steadily by at least 20%/year. This is imperatively important to me and also my clients, because they know, that my financial planning practice does well, and I can stay in the business for long, to service them, as long as they live! Alhamdulillah, my production improved by 32% last year and for the first time in my career, I become the top 85 financial consultants in my insurance cooperative in the whole of Singapore. 🙂
If you are self employed or running your own business, I encourage you to calculate your own Change In Income Ratio too! 🙂
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and by the way, if you are still wondering, what’s the Taufik Batisah’s song that I have been talking about earlier, tune in below! Enjoy! 🙂
by Helmi Hakim | Oct 21, 2014 | Insurance, Investment, Miscellaneous, Motivation
I was reading a book called SpeedWealth by wealth guru, T Harv Eker and will like to share some powerful nuggets that can help you become rich and super successful in your business.
The nuggets may look like common sense but I find it invigorating and refreshing, and I believe it will benefit you too, especially if you are self employed or running a business/practice like me! 🙂
Have a read! 🙂
1) You have to position yourself for wealth.
2) Success is a learnable skill.
3) If someone is doing better than you, it’s because they know something that you don’t.
4) The Law Of Income: You will be paid in direct proportion to the value you deliver according to the marketplace.
5) Demand + Supply + Quality + Quantity = $$$
6) Why does a brain surgeon earn as much in one day as a gas attendant in a whole year?
Because he or she has a rare and specialized skill that is critical when needed. Put bluntly, there are millions who can pump gas, but few who can fix brains.
7) Model a proven winner.
8) Copy someone who is making a mint right now.
9) A business system is a repeatable process that produces a profit.
10) Business is simple. People are complicated.
11) Work ON the business, instead IN the business.
12) First you create something that works well on a small scale, maybe one store, one office, or a sale to one person. Then you repeat the process, again and again. It’s that simple!
13) One SpeedWealth strategy is to find buyers who can purchase or sell large volumes of your products and services.
14) If you are not using leverage, you’re working too hard, and earning too little!
15) How can I provide people with my value, my products or services, while I sleep?
16) Practice does not make perfect. Practice makes permanent.
17) The best advice about money is only three words: Get it handled!
18) Lastly, remember, success is a learnable skill!
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If you find this post beneficial, do share it with your friends! I am very sure, they will appreciate it! 🙂
by Helmi Hakim | Oct 19, 2014 | Insurance, Investment, Miscellaneous, Motivation
Strategy 1:: Eat Your Breakfast Every Morning
Breakfast is the most important meal of the day.
Research shows that if you skip your breakfast, you will tend to feel hungrier later and overeat during your lunch.
When you overeat during your lunch, you will spent more money on food.
Eat your breakfast every morning.
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Strategy 2 :: Use Public Transportation
In Singapore, we have arguably, the best transportation system in the world.(though some may disagree vehemently now)
Take advantage of Singapore’s famous “BMW”, (Bus, MRT, Walk)
….and you’ll save more dollars.
You save on your vehicle maintenance, your vehicle loan, your vehicle insurance, your petrol cost (which is increasing incredibly these days) and more.
Do you know that your vehicle NAV (Net Asset Value) depreciate by $5000, the moment you bought it?
Unless you are in a sales job with a lot of money making appointments or you need to use your vehicle as a “social proof” to tell your clients how successful you are, I recommend you to take public transport.
With more ERP gantries in Singapore, it is also advisable to take public transport.
In addition to that, you get more exercise throughout the day, which keeps your heart, immune system, and brain healthy.
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Strategy 3 : Read The Newspaper Online
All major newspapers have their own website.
They update it every single hour.
You can go to these websites:
1) www.channelnewsasia.com
2) www.straitstimes.com
3) www.newpaper.com.sg
4) www.beritaharian.com
One day, you save $1, 30 days, you will save $30.
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Strategy 4 :: Clear Your Credit Card Debt
Credit card interest rates are very expensive.
24% a year.
If you save your money at an interest rate like what credit card companies charge you, your money will double every 3 years.
Your credit card company is earning like Warren Buffet at your expense if you choose to be a victim to this vicious cycle.
If you cannot afford to pay your credit card bills, borrow money from your parents, brothers, sisters and return them 10% extra. (You still save 14%)
Then, terminate your credit card and get a debit card.
You got to ignore your ego to salvage your own financial future.
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Strategy 5 :: Use Your Community Library
I bought a lot of motivational, financial, inspirational books, and I treat it as an investment.
However some reading materials follow the trend.
Example- Gossip magazines, fashion magazines etc.
If you need to read such magazines, go to Woodlands Library at Civic Centre.
They have lots of magazines for you to choose from.
You will be spoilt for choice.
Through the library, I am able to borrow motivational, financial, spiritual CDs which cost a bomb elsewhere for FREE.
I save hundreds of dollars, while at the same time being able to enjoy what others enjoy too!
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Now, if you feel the financial tips that I have shared above is useful, I have 28 more tips to share with you.
I have written an e-book, 33 Ways To Save More Money in Singapore and has recently updated them! Click the link here to downlod it for FREE!!! 🙂
http://savemoney.helmihakim.com/blog
by Helmi Hakim | Oct 16, 2014 | Insurance, Investment, Miscellaneous, Motivation
I was having a discussion with my colleagues, if there is demand for financial consultants, since consumers can just buy direct from insurance companies beginning next year.
In my honest opinion, there will still be demand for personalised service for professional financial consultants in the near future.
Let me give you a few real life examples, of why you will still need your financial consultant to plan, advice and service you.
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1) Tried To Claim Outpatient Hospital Bills Unsuccessfully
I was referred to an engineer late last year. He was hospitalised.
He understands that, he can claim pre and post hospital bills up to 90 days.
With confidence beaming from his face, he dropped by the insurer’s office to meet the claim officer.
Submitted the bills and the claim officer rejected him outright, stating that outpatient treatment could not be claimed.
He was confused of his predicament. He met me. He narrate and pour out his story to me. I listen. I then explain to him that he needs to EXPLICITLY state that the outpatient treatment bills that he is submitting are for post hospitalisation bills.
Post hospitalisations bills can claim up to 90 days, and Alhamdulillah, I claimed for him successfully. 🙂
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2) Stroke Patient’s Family Don’t Know He Has A Severe Disability Insurance Plan
This was another referral. I come down to his house. I met his son. After chit chatting for a good 20 minutes, I begin to realise the purpose of my visit.
I told him, ” Actually, I come down to your house not to meet you, but to meet your father. I was referred to meet your father. Where is your father?”
He replied me, ” My father is in the room.”
I told him, “Asked him out lah.”
He replied me, ” My father is sick. He got stroke…”
I looked at him empathically, concerned and asked him in a deep, lower tone of voice….“Ok… Insurance all claimed already lah?”
He looked at me with despair and told me, ” My father terminated all his insurance policies already. He has none left…”
I then asked him, “How about Eldershield plan?”
He looked at me with a blur look and replied, “Terminate also.”
I asked him affirmatively, “Confirm???”
He shrugged. I get him to write his father’s name and IC number on a piece of paper, and I personally called the insurer.
Lo and Behold, his father has an in forced severe disability insurance plan known as Eldershield!
His father suffered from stroke for 3 months already, and never claim from his Eldershield plan. I then guide his son, on procedures to help his father claim from his Eldershield plan.
If he was not referred to a qualified financial consultant, there might be a glaring possibility, that this very client will never claim his insurance at all.
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3) Confident Got $300,000 Death Coverage
I get to know this client from the outreach financial planning workshop, we did at one of the community centres in Singapore.
I came down to his house and he signed up hospital insurance plans for himself and his family.
Subsequently, I asked, if he dies, how much his wife and 2 kids will get?
He answered me confidently, “No worry Helmi. If I die, my family will get $300,000.”
I said, very good. He has done his planning very well. His disposable income is $2500 per month, $300,000 is 10 X his Annual Salary, which as a rule of thumb means he is sufficiently covered!
Nevertheless, I asked for his policy document.
He rummaged through the drawer in his room and handed it over to me. Flipping thorough the policy document, I realised that he has an investment linked policy.
That investment linked policy comes with a “rider”. That rider states that if he dies DUE TO ACCIDENT, his family will get $300,000.
HOWEVER, if he dies a normal death, his family will only get $30,000. Imagine the shock on his face, when I told him this. He has been telling his wife, over the years, that if he dies, his family will get $300,000.
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These are just a few examples, why financial consultants are still needed in Singapore.
Singaporeans are generally busy people, and require the help of establish financial consultants like us, to educate, advice, assist, partner and motivate them to achieve their financial goals, to the best of their ability. 🙂
by Helmi Hakim | Oct 14, 2014 | Miscellaneous
Just minutes ago, I switched on my ipad, and I realised the screen turned fuzzy.
I panicked, dreading having to pay $500 for repair cost.
Fortunately, Mr Google helped me. What you need to do is, put the iPad on your lap, face down, and slap the back a few times. Check the screen. If problem persists, slap it harder, checking it from time to time. You have nothing to lose.
and now, Alhamdulillah…. my ipad is working fine! 🙂
Do share this post with your friends. You may never know, that this post might save them $500! 🙂
by Helmi Hakim | Apr 12, 2014 | Insurance, Investment, Miscellaneous, Motivation
I am offering
– my personal mentorship (you will be personally mentored and coached by me)
– share my secrets, how I build the trust and establish myself as the financial consultant, helping over 500 families with their financial planning needs
– build a career, promoting shariah compliant fund, and cooperative insurance, which emphasize noble principles like people before profits, transparency, honesty and trust
– M5, M9, M9A, HI certifications fully sponsored
– Attractive establishment fund to help you start in this business
If you are considering to be a financial consultant in Singapore, call 96520134 to arrange for a non obligatory chat. Look forward to hearing from you. 🙂
