Freedom
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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. -
What is financial freedom? Does it just mean having lots of spare cash around? Can one really be financially free when we need money everyday for almost everything?
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for me is, i think its have spare cash, assets and not owe anybody money.Originally posted by dakkon_blackblade:What is financial freedom? Does it just mean having lots of spare cash around? Can one really be financially free when we need money everyday for almost everything? -
I think Kiyosaki claims that financial freedom is when you have enough money that when you don't work but everyday go clubbing, you still got money to spend for the rest of your life. Some people strike toto, some people born and they started with financial freedom, some people toil all their lives and only make $1000 a month with a family to feed. It's easier to talk about saving money. Personally, I don't save much, but I work so hard that I made enough to spend comfortably.Originally posted by dakkon_blackblade:What is financial freedom? Does it just mean having lots of spare cash around? Can one really be financially free when we need money everyday for almost everything?
It's good to have savings nonetheless, you never know when you'll need it. -
savings
can b also for
rainy days for
cover -
Robert T. Kiyosaki? His definition is something like that i guess... something about not worrying about not having money. And letting your money grow more money for you.Originally posted by DailyFreeGames.com:I think Kiyosaki claims that financial freedom is when you have enough money that when you don't work but everyday go clubbing, you still got money to spend for the rest of your life. Some people strike toto, some people born and they started with financial freedom, some people toil all their lives and only make $1000 a month with a family to feed. It's easier to talk about saving money. Personally, I don't save much, but I work so hard that I made enough to spend comfortably. It's good to have savings nonetheless, you never know when you'll need it. -
I always wonder about those financial management books like "Rich Dad Poor Dad". They always make it sound so easy. Has anyone ever tried using the strategies outlined in those books with any success? Please share your experience. I'll also like to plan for the future as regards finances but I'm not sure how.
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God... even my HDB flat loan is in the hundred thousand dollar bracket. How the hell, does a middle class person like me could even have financial freedom.
Even at retirement age I would have very low funds for obscene medical bills... even thru the so-call subsidised rate from hospitals built with public funds.. and they are saying that the subsidy are to defray cost... Am I stupid ? -
To keep it in layman term, financial freedom =
Let say, in one month, your total important expense is $1000. (Cover, transport, food, entertainment, your liability repayment,
Assuming return on investment = 5%
and on hand now u got $240000
u invest that 240000 and at 5% return a year, you will got $12000
u divide that by 12 month = $1000
it cover just nice whatever u need to pay, at this turning point, you dun have to work and your bill still get paid for by your passive income from investment and thing like that.
The issue here is how do we get that 240000 now?
therefore, we should always strike to keep expense low and income high and also save up for that 240000.
it that simple actually but not many people can understand that.