Entries Tagged 'Building Wealth' ↓
March 28th, 2008 — Building Wealth, Reducing Debt
I came across this article on the NYT about most discussed topic, the subprime crisis in the US. Looking at the graph below, you’ll see that the worst in yet to come. At the moment, we are at the end of the first quarter of 2008 and the full damage will hit sometime in 2009!
Based on the article on the NYT, the Feds are brain storming for ideas how to salvage the situation. How this affect the rest of the world?
China is also looking vulnerable according to Time Magazine. Caused by rising labor cost, strengthening currency, spiraling material cost and now with the slowing US economy, this thing might affect the rest of the world. Another factor is over capacity. There are just too many factories built in the last few years.
Depending on “the feeling factor”, there are several things to do. Among them :-
- be prudent,
- get rid of debt asap,
- upgrade and make sure your skills are marketable, pass your resume around as standby and to have a feel of which industries are doing well
- rebalance your portfolio
January 28th, 2008 — Building Wealth
The rules of money have changed. In the past, if you just followed mom and dad’s advice to save 10% of your income for the future, you’ll be financially stable. Today, if you just did that, you are ahead of the crowd but not by far. You can’t get rich doing the thing your parent did. The same thinking that gave them security 20 years ago, will likely sink you today.
Look at this article I saved up from The Star on May 2007.
In 1981, when Azman graduated, he got a job in KL which paid him RM1,800 a month. He bought an imported Mazda at RM17,000 and months later he put down money on a RM78,000 single-storey terrace house.
Today, 25 years later, Azman’s daughter has just finished university. Her starting pay is RM1,800, just like her father’s two and a half decades ago. But unlike her father’s time, imported cars cost over RM100,000 today. So Latifah has opted to buy a Proton for RM45,000 (more than double what her dad paid for his first car).
While her father could afford to buy a house early in his career, Latifah can’t. Houses in KL these days cost at least RM200,000, so she has to work for a few years first before she can own one.
In years to come, many people will find it hard just to retire, let alone think about getting rich and wealthy. So savings alone won’t help. You need to let your money make money. The most important thing is a change in mindset when it comes to making and managing money.
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January 27th, 2008 — Building Wealth
In the last post, I posted just one word.
T-H-I-N-K
Some of you might think I’ve gone off the deep end. What I want you to do is to think. What the heck should I think about, you ask. Since this site is about playing with money, I want you to think about money. Your money. What are you doing about your money.
I’m pretty sure you would have read or at least heard about the book “Think and Grow Rich” by now. Then, there are plenty of material, books and DVDs about attracting wealth, the not so secret “The Secret” plus many others that promise wealth. Some just convince you to sit and just manifest money without work. Bedsores will be more likely if you don’t do anything!
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