by Helmi Hakim | Mar 5, 2009 | Investment, Miscellaneous
As you know, in my profession as a financial associate, I get to do financial planning for a lot of people. 🙂
It is a special privilege for me, as directly or indirectly, I get to see EXPLICITLY on how the rich and the poor managed their finance.
I realised, its not really how much you earned, that matters. Rather, it is how much you SAVED. One of the tools that enables me to see vividly, interpret the current financial standing of my clients, is the usage of cashflow statement.
I feel sad that a lot of people out there, GROSSLY mismanaged their finance….especially the young ones…. (my age group)
They got the concept, “Why need to save? Got money…ENJOY first….Savings? Do it later!”
They dine REGULARLY at places like Swensen, like Eatzy where it is “normal” to pay $30 for a single meal and drink coffee at places like Starbucks, like Coffee Bean where average cup of coffee cost $7. (You can go on weekly basis with your friends and families, but certainly NOT AND NEVER everydayla)
It is OKAY for them to pay to club, enjoying the occasional “booze”, yet “savings” seems like a jargon to the ear.
These detrimental pitfalls are really doing BAD for many. If you are in your 20s, let me elucidate to you, what will soon be your IMMEDIATE financial commitments in the NEAR future. You got to start planning! 🙂
1) Marriage
You need to set aside (depending on your race), at least $30,000 for marriage.
2) House
You need to set aside 20% downpayment for your house. For a 4 room HDB flat which cost $300,000, you need $60,000. You gotta asked yourself, how long will you want to stay with your parents? Come on….
3) Honeymoon
Depending on where’s your honeymoon destination, you gotta plan for it financially. If you dont have money, how to enjoy? You need at least $10,000.
I have not add in other additional commitments, that will just crop out, (married people got more expenses) but just by these “confirm to come” expenses, it already totalled up to about $100,000.
It is EASY to say, save later….enjoy first….be smoothened by instant gratification….So….EASY!!! Let us do simple maths calculation on this amount.
Example you are 23 years old. Want to get married in 5 years. You need to save at least $20,000/year, which is close to $2000/mth. BUT WHAT IF YOU PROCRASTINATE?
You DELAY….and you continue to delay…..The amount that you need per month,simply just gets HIGHER and HIGHER. That is very, very BAD!!!
Come on guyz…..You gotta plan for it! 🙂
by Helmi Hakim | Feb 17, 2009 | Insurance, Investment, Miscellaneous, Motivation
Yes…. I am writing a book on Financial Planning.
I will complete it by June 09 and then send it for publishing. It will be available in your local bookstores, once ready! 🙂
The “planned” title of the book is “33 Common Questions People Asked Me As Financial Consultant In Singapore“… (title may change, to make it more CATCHY)
Let me detailed you some of the questions that I will answer in the book….
……………………………………………………………………………..
Questions On INSURANCE
– Why You Must Get Insurance?
– How Much Coverage Do You Exactly Need?
– What Are The Different Types Of Insurance Available For You?
Questions On SAVINGS & INVESTMENT
• How Do You Create Your Personal Income Statement, Your Personal Balance Sheet & Your Personal Cashflow Statement?
• Discover 3 Big Differences Between People Who Are Successful Financially & People Who Failed Financially.
• How Do You Increase Your Savings By 10% Without Losing A Tint Of Sweat?
• What Is Parkinson’s Law & How Do You Avoid It?
• Why, When, Where and How Do You Invest In Funds? X% Bonds? Y% Equities?
• How To Logically Create Passive Income, So That One Day You Can CHOOSE Not To Work?
• How Do You Measure, How Much EXACTLY You Need For Your Retirement?
• Why Your CPF/EPF Is Not Enough For Your Retirement?
• Why You Should Never-Ever Buy Stuffs On Loan? Examples?
• 6 Months Of Emergency Funds In Fixed Deposit. Huge Opportunity Cost?
• How To Use A Financial Calculator? Just Remember 5 Variables & You BECOME A Financial Expert. 🙂
• Looking For Instruments With Best Return On Investment? How Is Compounded Interest Different Than Simple Interest? (Learn To Interpret Deceiving Financial Brochures)
• How To Create A Budget?
• Credit Card, Double Edge Sword? How To Use It To Your Advantage?
• What To Look For When You Invest In Stocks? Are You Dividend Oriented Or Looking For Capital Appreciation?
• How To Reduce Tax LEGALLY If You Are An Employee? If You Are A Business Owner?
• What You Should Know When Financing A Car?
…………………………………………………………………………………………….
These are some of the questions that I will answer in the book. (working very hard on it!)
Right now, I need your help. I am very sure that at the back of your mind, you have some BURNING questions, on insurance, savings or investments.
PLEASE…….Please leave your questions in the comments section below.
Should you have a website, and you will like me to include your name and website url in my book, please leave your details below too…. Its a POWERFUL viral strategy for you to market your business for FREE! 🙂
Yes…. Just type one of your burning questions at the comments section, below…. I truly APPRECIATE your help! Thanks so much! 🙂
by Helmi Hakim | Feb 14, 2009 | Motivation
Let me ask you a question?
What is the most DANGEROUS disease that humans in the whole wide world can have?
Answer: COMPLACENCY
Sometimes, when I compare my income with my peers (of the same age as me), I feel that I am much way ahead and start to feel complacent. When I get complacent, I will come late for my roadshows.
I will surf the net in my office instead of doing my telemarketing, calling my existing clients and prospects that I have gathered during my cold canvassing.
I will prefer to call my friends to go JB and relax, instead of doing some reading to upgrade myself.
I will prefer to just listen to music while in MRT rather, than listening to Brian Tracy, Zig Ziglar, Blair Singer audio programs. paid hundreds for it
Are you in a similar position as me? Gheeee…. it just doesnt really feel good, you know…when later, you find yourself at the back instead AHEAD of the pack.
Luckily, I found a method, to stop myself being complacent and cheong fight my way ahead.
The no secret, confirm to work method to avoid yourself from being too complacent is to MIX with people who are BETTER than YOU.
1) When I know, some of my colleagues earning $15,000, $20,000 a month, my complacency level COMPLETELY WIPE OFF.
2) When I see, a number of my colleagues are MILLIONAIRES, living in enviable condominiums, my drive to attain such material possessions INCREASE tremendously.
3) When I see, a new, young agent, who just joined, closing so many cases, I question myself, why SHOULD I STOP?
This is a powerful strategy. So if you want to STOP yourself from being too COMPLACENT, start to surround yourself with people who are way, way, BETTER than you! 🙂
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 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! 🙂
