by Helmi Hakim | Feb 9, 2009 | Investment, Motivation
I believe, this is a very intriguing topic, for Mondays’ motivational post.
You see, many people including ME, loves to spend. Everytime, earn money, I love to splurge on everything that looks ATTRACTIVE to my eyes. nike sales @ singapore expo just over
Yes… I always advise my clients on the boundaries of “needs” and “wants”. Buy stuffs only, if you NEED it. Save 20% of your monthly income. Have 6 months savings of your monthly expenses for contingencies….Think savings as on a daily basis, makes it much EASIER for you to save….Savings is GOOD, spending is BAD…..dadadahhhh….
It is like script that I have rattled over 1001 times….preaching and at times lambasting others to do savings. Easier said than done. Period.
The question now is, “How do you exactly MOTIVATE yourself, to do more savings?”
The strategy that I am about to share with you, is a well known strategy that many who find it difficult to save money like me, contends that this is the BEST, “sure to work” strategy.
It is called “FORCED SAVINGS”! 🙂
Most people, what they do, when they get their pay, is that they SPEND their money first, and then later, they SAVES.
They spend their money, and then later at the end of the month, begin to kancheong question themselves, “Eh? Where all my money gone into?”.
Unfortunately, for many, the “balance” at the end of the month is too little or worst… they have a negative cashflow, taking GE loans, Courts loans, even worst….credit cards loans @ 24% interest per annum! 🙁 –sigh, disappointment–
What you need to do is, save your money first, and the remaining, SPEND it! Get a regular savings plan, ie endowment plan or investment linked policy. (Note: Financial Advisors like us can do a risk profile analysis for you)
The money will be deducted every month automatically from your bank account. I did this, and NOW, whenever, I spend money, I can do so without feeling guilty.
Why? Because, I know that my savings, for the basic needs have been well taken care of! 🙂
So remember, when you get your pay, SAVE your money 1st, and then later, you can SPEND the rest, without feeling guilty! 🙂
by Helmi Hakim | Jan 30, 2009 | Miscellaneous, Motivation
Fridays’ Miscellaneous Post
Today’s topic is something light…. but profound. 🙂
I will like to talk to you about passion. Have you every tried doing something, you think you like doing and then later, you begin to question yourself,
Why am I doing this?
Why am I doing that?
Whats the intrinsic objective for me to do this?
Whats the intrinsic objective for me to do that?
What do I gain from here? Why am I putting in so much? Why…? Why? Why? Why? Why? Why? Why?
Well… Today, I am going to let you, a little secret out. You see, the magic word of maintaining your passion, is to “outsource”.
Example: I am a financial associate. You see me talking about insurance, savings and investment because that is my core expertise.
I enjoy talking about making money in stocks, making money by investing in funds, having adequate insurance coverage for families, because that is my passion.
I can do it all day long, tirelessly because why? Because all that is my PASSION!
So…Does passion lasts forever? The answer is NO!!!!! You have to maintain it!
Now, what is the NUMBER 1 unwanted element in my perspective, that can KILL your passion?
The number 1 element that can KILL YOUR PASSION is trying to do everything yourself.
Yes…. When you try to do everything yourself, you are not cutting cost. You are increasing your opportunity cost of adding value to your business. Worst, if you do things that you are not….really passionate about, and mixed it up with doing things that you are so passionate with, the “why am I doing this question” will crop out…
As I progress with my financial planning business, there will be a lot of things that I will outsource. I am going for lots of seminars that is relevant to the “expansion phase” of my business, so when it comes to the “implementation” of my plans, I dont have to do all the “thinking” alone.
I will have the “network” of highly qualified individuals who are very, very passionate in their subject matter to assist me.
… and guess what happens when a group of highly passionate people work together? Valuable results ensued!
So, friends…I leave the small token of my well-guarded insider tips here. If you want, to maintain your passion, OUTSOURCE! 🙂
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 | Jan 7, 2009 | Investment
Okay… Let me kickstart with “Wednesdays’ Financial Blog Post“.
Today’s topic is about buying cars.
Is it an investment or a money draining liability?
Before addressing this issue, I will like to make a note, that whatever I share with you is just MY perspective from the spectacles of a financial associate. It doesn’t make me right. It doesn’t make me wrong.It is just MY perspective! 🙂
I have surveyed around, asking those who drives, on their car expenses per month.Many contends that their car expenses (including monthly installments) amount to about $1,000/mth.
My take here is that, from the monetary point of view, YES…solely from the monetary point of view, is that if you use your car, and ABLE to generate an EXTRA business/net profit of more than $1000, your car is an ASSET. If you buy that car, and you are NOT ABLE to generate that EXTRA net profit of more than $1000, your car is a LIABILITY.
…………………………….
” Your car is an ASSET, if it generates POSITIVE CASHFLOW.
Your car is a LIABILITY, if it generates NEGATIVE CASHFLOW. “
…………………………….
I feel that those who are married, especially those with kids and aged parents to look after, should have a car.Other than convenience (like sending your kids to school or aged parents to hospital for regular check ups) as one of the primary reasons, the distribution of car expenses per head is more widespread.
Average expenses per head is significantly lower.
That is where having a car is a PRIORITY.
hmmm….. So now is the time for you to analyse, whether your car is an asset or money draining liability. You can use the below example as a catalyst.
If you are self employed (like me) or running a business, you can try to rent a car first, to gauge the expenses involved per month.
Once you are VERY SURE, that your car is an asset, it is time to get one!
It not only makes your life more convenient, enhance your social status but also give you the piece of mind that, “Hey!… My car is helping me to save or MAKE MORE MONEY every single day!….” 🙂
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. 🙂
