Money Tells Stories: ABC'S WEALTH CREATING

ABC'S WEALTH CREATING

Who wants to achieve financial independence? My passion is to coach and help people to build their wealth and achieve financial independence. This way they are able to take control of their lives. The first step to its success, is self-accountability. No one can help you to achieve that end if you do not desire to do so. Everyone needs to know how to fish, which is the only way of having fishes for the rest of your life. So, what is the definition of WEALTH ? To create wealth, it is important to understand its definition correctly. Wealth is not richness as richness is a relative and subjective term without a definite meaning. Wealth is not equivalent to income. Big income does not guarantee that it will generate wealth. It is very much dependent on how you use your income. Wealth or Net Worth is the accumulation of whatever left after you have deducted all your expenses over time. It involves three simple processes, namely ABC : Far more than Amanah, Bersih and Cekap. This is because at the end of the day, you have to take full responsibility of it. You can't blame anyone as you are the one who implement or are in control even if you have leveraged out. No, no to blaming culture as it is a dangerous virus that will destroy you, once you begin to use it. Next, you need to save as much as possible regardless of the quantum of income you make. The golden rule is do not save what is left after spending but spend what is left after saving. My experience of opening my first saving accounts with BSN with RM10 at the age of 14 years old is the very step I begin with. Permit me to use this to illustrate this point in case. At that time, saving this amount of money is near impossible because I was given daily pocket money which was barely enough for my daily expenses. Lots of thing I used is based on logic and a winning formula I learn from my chess game. What I know is that if I want to achieve that desired result, I need to do something different to achieve different end if I wanted to be sane. I skip my meal at the school canteen for a few months so as to save that sum of money after I had learnt from my Commerce teacher that saving accounts in the bank can earn me interest. To overcome peer pressure, I had to create numerous different excuses so as to not join them at the school canteen. Subsequently, I also learn that I realized that I can make my money grow further over times by investing. Where I sub merge myself in coins and stamps as my hobbies and make money from there. Later on, I also learnt that not all assets are of equal value in promoting long-term wealth. The real key to accumulating wealth is highly dependent on your allocation in acquiring assets which will appreciate in value and hence increasing your personal net worth over time. One good example is choice properties which appreciate over time. Therefore, the more money that is spent on Wealth-building Assets, the faster you will achieve a higher net-worth. B. BETTER MONITORING AND MANAGING WEALTH Once you have created several wealth building assets, you need to comprehend their nature of trade and risks profile. This is to take full advantage of their potential and at the same time get the highest possible yield. Needless to say you need the skills and know-how which you may acquire from reading, analyzing and attending courses etc. Here, you need to monitor each type of wealth-building assets in term of their returns, growth in value and potential value vis-?-vis its risks. However, you also need to purchase other type of assets out of necessity, for entertainment or other reasons which do not add value to you directly such as to facilitate your work. . Some of examples of non-wealth building assets are:- To create constant and lasting wealth, you need to use all your resources, such as Resources, Ideas, Capital and Expertise, to create a new source of income. To do so, you not only need to control your expenditure, but to add new source of income at the same time. You have a choice to spend your income away to acquire more luxurious lifestyle. Egos and peer pressure dictate how you spend. Alternatively, you may use it to make investment to create a second source of income. In my case, I constantly invested in educating myself, in all aspects, so as to enhance my income and also to be more effective and efficient. With these knowledge and skill, I believe that I can create more wealth. Creating wealth is a subject many of us fantasize about, but only few will be able to materialize it in their lives. Debts can kill. However, if you know how to use them to generate income which exceeds the cost of borrowing and generate positive cash flow. Then, it makes sense for you to leverage on debts to generate more residual value for you. I hope that you now have some understanding on the true meaning of wealth and the simple three processes of creating, accumulating and managing its growth. This is a very basic and fundamental framework for everyone who intends to build wealth and it is important to get this right in the first place. I wish everyone success in building your wealth and empire and don?t forget to buy me a 5 star dinner then.

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