by Helmi Hakim | Jan 14, 2009 | Insurance, Investment
Today’s Financial Wednesday Blog Post, I will like to share with you is a concept that I learn from Adam Khoo’s Secrets Of Self Made Millionaire Book. It is a very practical and easy to understand concept that I applied and share with all my clients.
This is what I call the 4 levels of wealth. You have to go step by step, level by level in achieving your financial dreams.
Level 1 : Financial Stability
You have achieved financial stability when:
1) You have accumulated enough cash to pay for your 6 months expenses
2) You have hospitalization insurance and sufficient life insurance coverage, should death, permanent disability or 30 critical illnesses were to strike.
You must be really secure in this before proceeding into the next step to achieve financial security.
Imagine a person who has no money in the bank, no hospitalisation insurance plan, no life insurance plan, BUT HEAVILY INVESTED IN STOCKS (where many experience paper loss at this moment)…….
one day….touch wood…..get hit by a lorry. How will he or his family SURVIVE that financially ?
Level 2 : Financial Security
You achieve financial security when you have accumulated an amount of Positive Cashflow Assets (Investable Assets) that generate passive income to cover your MOST BASIC expenses.
Most Basic expenses refers to:
1) Home mortgage
2) Public transportation expenses
3) Food for you and your family
4) All Insurance premiums
These are just necessities that you spend on to lead a simple lifestyle. Should you stop working today, do you have enough passive income to pay for your simple expenses? 🙂
Level 3: Financial Freedom
You achieve financial freedom when you have accumulated an amount of Positive Cashflow Assets (Investable Assets) that generate enough passive income to sustain your CURRENT LIFESTYLE.
If you have a car, have a maid, have a golf membership club NOW, financial freedom means your passive income is enough to pay for all these expenses should you stop working today.
Are you FINANCIALLY FREE? 🙂
Level 4: Financial Abundance
This is the best!
You achieve financial freedom when you have accumulated an amount of Positive Cashflow Assets (Investable Assets) that generate enough passive income to sustain your DESIRED LIFESTYLE.
Your passive income must be able to pay all your expenses when you lead the LIFE OF YOUR DREAMS.
Example you like to drive a porsche, live in a private condominium facing the sea (my goal 😛 ), send your kids to the best school in town, you may be expecting a monthly flow of about $50,000 worth of passive income.
So guys…. Are you working your way up to financial abundance or continue to feel shiok2 be trapped into the rat race where someway, somehow, somewhat, your money seems to vanish in thin air at the end of the month? Work it out! 🙂
by Helmi Hakim | Dec 24, 2008 | Insurance, Investment
Some of you reading this blog, are business people.
Some of you reading this blog, are salespeople.
Some of you reading this blog, are financial associates. (like me) 🙂
If you belong to any of the above category, what I am about to share with you, will be something worthwhile reading.
I am going to share with you a formula, I read from Adam Khoo’s book, “Secrets of Building Multi Million Dollar Business” that will help you, INCREASE your sales revenue by leapts and bounds.
I will put it in my context, and I hope you can put yourself in my shoe, and later apply this concept in your own business.
If you happen to be my client, you will be nodding your head in solidarity agreement, that whatever I did, mutually BENEFIT both parties.
Myself from a business point of view, and YOU, as my client.
The formula is…
Total SALES REVENUE = Number of Clients X Average Dollar Purchase X Number Of Repeat Purchase
Ways To Increase Number of Clients
1) Create Blog & Maintain Email List
2) Social Media like facebook, friendster, myspace +++
3) Make more cold calls
4) Telemarketing
5) Roadshows
6) Network in Seminars
7) Referral System
Ways To Increase Average Dollar Purchase
1) Financial Planning
This is the only way for us to uncover the true shortage of critical illness coverage one needs as a form of income replacement, funds needed for retirement or funds needed for children’s education
2) Education
Our duty as financial associates is to educate and motivate you to make the right decisions. Once, you see and you understand the needs and the rationale, only then you will make the decision.
Ways To Increase Number of Repeat Purchase
1) Exceed clients expectation and give them a wonderful experience
2) Build friendship with them
3) Keep in regular contact
4) Send them special occasion card
5) Start a loyalty program
6) Again…Financial Planning…
Through proper financial planning, an advisor will have a proper system to follow up with client. Advisors can do yearly review, to help identify clients’ contemporary needs in years to come.
Thus far, I strongly believe that financial planning is the most powerful methodology that can benefit both clients and us, as advisors. 🙂
by Helmi Hakim | Dec 11, 2008 | Insurance, Investment, Miscellaneous
I am the type of person who loves to write poems….motivational of nature…
and songs…. yes…. malay love songs….
Its a natural gift that I possess waiting to be unleash at the right time… 🙂
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Now….I will like to share with you a poem or creed that I have just created..
Enjoy….
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Helmi Hakim, The Financial Consultant
When people ask me, what are you doing for a living?
I answer them that I am running my own business.
When people ask me, what business are you in?
I tell them that….
I am in a business of providing
– shelter to the innocent widows
– bread and butter for the hungry children
– medical care for the appreciating minds
– university education for the upcoming leaders
– comfortable retirement for the relieving many
I am in the business of empowering people like YOU with choices in life….
CHOICES that will lead you to your destinies using vehicles, far, far better than convention…
You will reach your destination fast, & you will reach your destination safely.
As you establish your relationship with me…
you realise how easy and effortlessly,
the plans that you take up from me,
complements your existing lifestyle.
You thank me profusely for my service,
& you thank yourself, that you
have taken that little, extra effort to call me….
Call me now, & we will see how I can help you. 🙂
Helmi Hakim
+65 96520134
www.helmihakim.com
by Helmi Hakim | Dec 4, 2008 | Insurance, Investment
I have lots of clients who have the “intent” to start up, a business venture….
…. selling handbags….selling burgers…. selling health products….
A lot of interesting, fun and lovely ideas…. 🙂
Some seeked my point of view, if they should sell away their house, to fund their dream business…
Some seeked my point of view, if they should quit their job, to start their dream business…
Some seeked my “money”, as a form of capital to start their dream business… 😛
I met a lot of entrepreneurial people.
My advice to all is that, if you want to set up your own business, you need to have contingency funds that can last you at least for 1 year.
You need to have enough money in your bank account that can last you 1 year, if your business doesn’t generate money.
If not, don’t even think of quitting your job, to start that very business that you aspire.
Yes…Have at least 1 year of contingency funds.
When I met my clients, I will always do the cashflow statement for them.
I will highlight to all these entrepreneurs to be, to have at least 12X their total outflow.
Yes…12X….
Of course, there is really more planning need to be done like, him or herself having enough critical illness coverage…etc2…
That’s where customized planning comes in.
Btw, if you need any help in terms of financial advice, drop me an email or call me for appointment.
I will be happy to assist you! 🙂
by Helmi Hakim | Nov 11, 2008 | Insurance, Investment
I am very sad, that in the mark of the technical crisis in Singapore, many people are facing dire financial difficulties.
While the rich are facing ENORMOUS financial opportunities.
Some people whom I dont know, out of a sudden, get my hp number and asked if can borrow money. gheeidontlikethiskindofpopularity
Old friends whom I have not contacted for over 10 years,suddenly try to befriend and get close to me in hope for some bucks to spare.
Well, ladies and gentlemen, if you are reading my blog, please, i beg you please LISTEN to me.
(Real life picture taken in Singapore, YES IN SINGAPORE! I try to cover the unit no)
You have to learn to manage your finance well.
The responsibility is on YOU.
If you do not know how, get a ahlong FINANCIAL PLANNER like us to help you out.
We can help you to MANAGE your money, not we GIVE you money.
In the wake of these incidences, I have come out with 6 Rules Of Thumb that I always advise my client to follow, when it comes to MANAGING THEIR MONEY.
1) Save at least 10% of your monthly income
This is a good start to SAVINGS.
Usually, I will analyze whether my client do have a habit of savings or not by asking simple questions like,
“For these past few months, how much savings have you done CONSISTENTLY, i mean, you put your money in there, and you never take out?“.
“For the next 12 months, do you need to use that money,that you have saved?”
If they do not have this habit of savings, 10% is definitely a GOOD START.
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2) Life Insurance Cover Must Be At Least 10 Times Your Annual Income
People get insurance mainly because of 2 main reasons
-Income replacement
Should critical illness like heart attack, cancer, were to occur, or you were downed by permanent disability, you will lose your source of income.
BUT, your expenses continue. The proceeds from your insurance policies helps to pay off your expenses.
-Assets Protection
Should death were to occur, all your mortgages will be paid for from your insurance proceeds.
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3) Have 3 to 6 Months of Estimated Expenses In Your Emergency Funds
If you are an employee, in the event of retrenchment, it will take you about 3-6 months for you to find a new job.
If you are an employer,a business owner, and your business winds up, it will take you longer, perhaps 6 months to look for new projects or find a job.
In this climate of uncertainty, I will strongly recommend you to have at least 6 months to 1 year of emergency funds.
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4) For your retirement income, you need 70 -80% of your last drawn salary
This goes by the assumption that your expenses, will be lower when you retire.
In financial planning, we called this younoneedtospendsomuch replacement ratio method.
We assume major expenses like mortgage and work related have been settled by then.
However, this rule is not applicable to everyone.
You need to account for holiday expenses, and perhaps SHOPPING freely because you have more time when you retire.
I always tell my client, “The more you have for your retirement, the better!“
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5) The percentage of your portfolio to be invested in equity should be 100 minus your age
In this time of uncertainty, it is BEST to stay invested.
Some people asked me, “How much money should I put into equities, and how much bonds?”
This is a simple formula to follow.
Example, a 30 year old guy.
As a rule of thumb, take 100- 30.
So 70% of his savings should be placed in equities and 30% in bonds.
Of course, this is just a simplified way of analysing the client.A detailed check will ensued.
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6) Your home loan repayments should not exceed 33% of your monthly income
When you earn $6000 a month, it is okay to spend $2000 on mortgage.
But when you income grows,you upgrade to a more expensive or bigger house, most of your income will go to the house which do not generate income (Personal Use Assets) and less into investments and savings.
The lesser, the loan repayment per month the better.
You should avoid a situation where half of your monthly income, goes out to pay loan.
Like that, jialatla you cannot afford to be sick…. sure die….
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Wokei….. So now, you can gauge yourself whether you conform to this simple 6 rules of thumb in managing you money.
However, I need to make an exclusion here.
I believe 20% of you may have a lifestyle that is different from the norm.
Rest, follow these thumb rule and call me at 96520134 should you be imbued in more queries.
Financial Planning is the way to go! 🙂
