I Learned My Lesson

Today we have seen many calamity happen recently like earthquake, storm, major flood and I was thinking is there future for us all. We work hard to get what we want today but is there a guarantee that we will enjoy the same tomorrow. Usually once we achieve our financial status today it is obvious that the next step is to protect our assets and we work harder. We will spend quite a bit of time to work and work to maintain our lifestyle now.

I am not saying this is wrong but all I wanted to say is that we should spend time today to enjoy what we have for tomorrow may not come through to us. How long will you be able to work? If you want to work part time, have a family, or take a career break, for example, you’ll have to adjust your long-term income projections accordingly, which may affect tomorrow goals. Winding up with more money than you planned on is never a bad thing!

Goals, expenses, expenditures is part of our daily things and it is big things toward our life. If you’re the kind of person who can say that they want to buy a house in five years, good for you: that’ll be easy to put into your plan, and it should be comparatively easy to work out if — or how — it’s achievable within the context of your current income and expenses. If you’re the kind of person who did not plan to buy a house or saving for the future then you will take your own sweet time in life now.

I had houses but I lost it because of making some wrong business decision and it take away what ever I have. Suddenly I feel that the universe is fair for it will take away after it have given you. After spending nearly 10 years working and now I have work all over again to start saving.

Now a days I keep my life simple. Work for today and have enough to pay off my debt for today. Start enjoying today life and be happy for what ever you have. That’s financial freedom.

That is my goal now. I have learned my lesson.

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The Journey Get Tough

It is good to be back for blogging.

The 11 months periods was very tough for me. In fact the year 2008 was not even a good year as I look back. I am not complaining but the reality is that in the year 2008 a few major disaster did happened and it nearly take away my confidence.

It was not until I attended the NAC 2009 that I realise that I can get back on my feet to achieve my financial freedom. Having just come back from listening to some great speaker really brighten up my faith and believe that I think it is time to wake up and repair the damages. Also meeting up some old friend at the event was really helpful.

Year 2008 was a year where worldwide ecomony slow down and some of the business deal that I have committed have nearly  wipe up half of my wealth and the company profit. Some of the deals turn sour or did not meterialise due to economy crissis. So much so that I have to dispose some of my property just to paid the debt and cut loses other non profitable project. It was painful but like I have always do life must go on.

The retinal problem in my right eye did not help either. I have lost some vision and it was difficult to be corrected by optical lenses. Nevertheless I still my left eye to help me see.

My personal credit debt have pile up again and the again who does not have credit card problem. But this time it is geeting out of control. Infact luckily the borrowing managed to help to keep the my business going.

I am planning to come back again and reapir the damages and pay off the debt and more than survive the blow. In the next 3 months I am planning to come out with recovery plan and take some bold steps this time. May god help me this time.

Michael Liew

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Can You Live With RM3,000 nett A Month?

This is a question have been asked by almost every one who earn on the average on RM3,000 nett take home income. That is the average wage earner in Malaysia. Supposingly you are married with 2 kids or even 4 schooling kids which is again the average family size in Malaysia – can you make a living with a combine nett income of RM3,000 a month?

With the petrol cost increase, electricity cost increase and the ever raising cost of living this is definitely a question to ponder. With the household expenses usually exceeding the income people had to work extra hours in a day to offset the rising cost of living.

A survey conducted by Fomca concluded that a household monthly income of RM3,000 was inadequate to sustain a family comprising two adults and four children in the city.

Expenditures – cost per month
Housing mortgage – RM600.00
Car Loan Mortgage – RM500.00
Food Expenditure – RM500.00
Transportation/ petrol/ toll - RM600.00
Education, tuition and reading materials – RM500
Clothes and household expenses – RM300
Total Expenditures – RM3,000.00

Sources from the Star.

It looks like enough! But actually not.

They forget to include a compulsory 10% saving to the longterm saving that we advocate to pay ourself first every time we receive our paycheck. This 10% financial freedom account must be done every month and everytime  we receive our income despite whether the ecomony is bad or good.

Here are some unpopular tips to overcome the problem.

1. Always pay yourself forst. Save 10% of the nett income to your long term financial freedom account.

2. From the balance 90% then work and rework out the monthly expenditure until it is equal or below the balance after paying to ourself. Cut down on unnecessary expenses or purchases and delete nonessentials from the list.

3. Avoid new debt. Be pratical with the credit card use.

4. Work part time either from home or outside the home. It may be difficult but it is better to have extra money than be comfortable at home. Earn that estra income. Again save 10% first then the balance either to be used in the household expenses or to pay off your debts.

5. Learn new skills. Computer, acccounting, salesmanship or interne or anything. Try to match these skills with your own interest or hobbies. One day you might be able to generate extra income to you.

Hope this help. I too have to make a new list for my monthly expenses.

To Your Millionaire Success
Michael Liew

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Going for Natural Gas Vehicles (NGV) Alternative?

As price for petrol in Malaysia has increase to RM2.70 per liter and diesel has increased to RM2.58 per liter, should we switch to alternative energy for car – NGV gas?

As more and more motorist rushing to installed the NGV (Natural Gas Vehicle) tank  for the car so much so that the queue at Petonas Stations are getting longer. This is because only a few selected Petronas station are offering NGV gas to the NGV motorist. Last time I use to see lot of teksi queing to pump the gas but now the sight of the normal motorist have joined the taxi drivers to wait in line.

Is there any benefits in changing to Natural Gas Vehicles or NGV? My friend Sher Li has email me the benefit of changing to NGV as she has done some survey recently.

She says “I’ve been asked by some people about NGV (Natural Gas for Vehicle) recently, eventhough i’m not in this line. Coincidently, I’ve done some research on NGV earlier this year and i’ve listed here some important things to note in selecting your NGV installer.”

Benefits of NGV
1. Environmentally friendly
2. Lower maintenance cost
3. Save up to 75% on fuel costs
4. 25% reduction on road tax
5. Dual usage (petrol & gas)
6. 0% Interest Installment (EPP)
 
 
Sample calculation
Petrol monthly usage : RM300     (@ RM1.92/litre)
Petrol monthly usage : RM420     (@ RM2.70/litre)
 
NGV monthly usage : RM105     (@ RM0.68/litre gas)
 
 
Things to Note

1. JPJ approved Installer?
2. 3 years warranty?
3. Size of tank (60/70/77 litres) ?
4. Adjustment to absorber to support tank?
5. Automatic switch to petrol when gas depletes?
6. Training given on NGV usage & maintenance?
 
All of the above affects the total cost of installing NGV. As the demand for NGV has increased due to the recent hikes, many NGV installers are taking advantage of the public’s lack of knowledge in this field. If not careful, the public may get duped when quoted a cheaper price for installation. If not installed correctly, carrying a gas tank in your car is very dangerous.!!
 
After much comparison, I’ve found that it’s worth paying a little bit more for the system to be installed properly, having a 3 year warranty definitely provide some peace of mind. The total cost now is RM5,500-7,800 depending on car type & NGV kit. Any car can switch to NGV, except diesel cars. Even a kancil can install one!! I couldn’t believe it until i saw it!
 
It’s a long term investment, as petrol price is likely to go up again soon. It takes only 2 minutes to fill up the NGV tank, but the current drawback is that the queue for NGV at Petronas stations may take 10-15mins. There will be 500 Petronas with NGV pumps in 2009, so the wait is only temporary. Does NGV cars lack in power? Well, I see taxis overtaking cars, even when going up Genting Highlands! There will be a slight lack in power but the difference is not significant. If you could sacrifice some boot space to save a few hundred ringgit in fuel every month, why not?!
 
With NGV, RM11 can take you 200km!

To Your Millionaire Success
Michael Liew

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Are You On The Right Track to Financial Freedom

To be financial success takes lots of courage and planning. We don’t have to be rich in order to be financial freedom. We don’t have to have lot cash in the bank to be financial freedom. In fact any body can attain financial freedom early depending on what kind of lifestyles you want in your life.

People often confuse about being financial success and that’s including me. I once thought that to be financial freedom I must have work harder with higher income. But now when I look carefully the meaning of financial freedom is to have income every month enough to cover my expected monthly expenses. Especially my income has to be passive income and better still from the business income. That is how I interpret and it could have different to you.

Financial Fundamental principles
In financial plan can be a budget, a plan for spending and saving future income. It helps allocate future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and long – term savings.

A financial plan can also be an investment plan, which allocates savings to various assets or projects expected to produce future income, such as a new business or product line, shares in an existing business, or real estate. This will give you passive income.

We should make it a habit to exercise prudence in all aspects of our lives, no matter what income level you’re at. This is because the money we have is all hard-earned throughout the years (at least for most of us) and if we are not careful, we may lose it all in a blink of an eye.

The other principle to keep in mind is patience. It’s hard to cultivate this virtue nowadays as everything is fast-paced and we’re living in an “instant” society – where everything has to be fast, easy and instant!

It’s advisable then to practice delayed gratification and it requires a great deal of patience too.

Last but not least, we need to have perseverance. To succeed in anything, we need to have that stamina to follow through our plans.

Some useful tips that I practice:

Budget
Everyone at personal level should have a long term budget and a monthly budget. A long term budget will guide you to achieve financial freedom goal and a monthly budget will make sure that you are on the track.

Do not spend beyond your budget and don’t spend more than your income.

Pay Yourself First
Once you have received your paycheck please practice this habit. Pay yourself first. Put at least 10% of your net income to a bank account every month without fail. These will not be use at all for any expenses or gift but rather it will be accumulated enough to invest one day.

Avoid unnecessary debt
Debt is a silence killer in our finances. Avoid debt at all cost unless it is a good debt. To me if I borrow money from credit card or bank to make money than I will go for it. Otherwise I will only use my credit card according to my month budget. At the end of the month I will usually pay all or maybe in 2 months max.

Start A Business Fast 
Start a business and make business income. That is one of the powerful ways to generate more income than working for people. The best is starting a part time business while working full time. Aim to be a full time business owner one day when you are ready and you know the risk involved. Having a small business is the way to financial freedom fast.

Invest in Stock, Bond and Real Estate
At any time if you have enough capital considers buying real estate like house, condo for rental income. Otherwise start with stock. Be cautious though investing in stock is volatile now a days and you must learn it and be proficient in this. The dividen income, interest income and rental income will help you further.

I am not the financial adviser but I practice this method and it help me one way or another in my financial success. Hope it will trigger you to seek more information in finances and come back for more.

To Your Millionaire Success
Michael Liew

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