Sorry for not releasing the newsletter last week. It was finished in drafts but I guess I forgot to actually publish it. So I’ve combined last week’s and this week’s newsletter together!
Question of the week
What’s your big money goal for 2019? Share with us your thoughts!
From Our Own Site
We’re in holiday season (and working on a really exciting opportunity that will be available first thing next year). So stay tuned!
Money in Daily Life
Like most people, I used to set a New Year’s resolution on January 1st … only to completely abandon it by February.
This has nothing to do with personal finance, but it is something probably quite related considering that many of you will have financial goals for 2019.
If you've created goal in the past, only to have given up before March, this might be a good read.
And if you have a goal about your finances, do you know where you currently are in the goal? Do you have a map you are following? If not, consider getting a financial plan done so that you are not wandering in the dark.
Sure, money can buy you happiness. No argument, there. But it’s true—the best things in life really are free, and that’s the point of this challenge! To find a special something that you can do every year, starting this year, to add more light and laughter to your holidays.
A short little challenge for you all: instead of buying gifts for everyone, can you find a way to reduce your expenses by not buying anything extravagant and instead do something that might take more time to do (either going around the room sharing what you’re grateful for about each other or doing some sort of team activity like volunteering).
I know the best thing I can get is some quality time with loved ones.
The topic of financial independence and early retirement has been on my mind for the longest time, but I admit I’ve pushed it back time and time again. I’m afraid to find out the amount I need to get there. I’m afraid the number will be too big that it’ll discourage me, instead of motivating me. I’m afraid to think of the sacrifices I have to make.
I’m personally not very into the whole Financially Independent Retire Early movement. Primarily because I don’t believe in retirement. Afterall, life is too short to be doing things that you don’t enjoy for that long.
However, having that financial independence is definitely something worth striving for and this blog will give you a basic understanding of what to expect if you do want to pull off FIRE in Malaysia.
Financial and mental instability are common issues, and they often go hand in hand. In fact, the two tend to exacerbate each other, leading to a downward spiral that just gets worse over time – unless you do something about it. Unfortunately, that can be easier said than done.
Although I have not gone through this experience myself, I can relate to what the blogger has mentioned. About counting pennies, feeling bad for certain purchases which puts me off in a worse position.
If you can relate to the title or to my experience, this blog gives a few different options. We are also trying to help as much as possible by finding you the best opportunities possible. One of them is our partnership with a financial planning company to get you a personalised financial roadmap which shows you where you are and the paths to where you want to be. Normally this would cost RM 888 but we’ve negotiated it to RM 88. However, we also have the rights to give away a few of these a month so if you’re interested in that; please leave a message in the facebook group.
Want to have your money accelerate your goals?Sign up for our free program and get ready to have your money fuel your aspirations.
Grow Your Wealth
What matters more: your saving rate or your investment returns?
This is a great blog that will give you a lot of insight into what's more important at different times of your life.
The summary? If your goal is to get to 1 million, getting the first $100,000 is the hard part and will come mainly from saving. However, once you pass that milestone, that money invested will be able to really start carrying a lot more weight and takes a lot of the pressure off you.
So how do you accelerate that first $100,000? Well you can stop spending money on the boring and instead use more of that to spend on the exciting things in the future or you can increase your earning potential.
Most made an investment hoping that ‘it will go up’ and not ‘produce cash flows regularly’. It has become a root cause for many heartaches, hurts and even sleepless nights.
This blog does a great job in explaining how cash flow can be a great strategic investment, though there are times where I felt that they used examples that just highlight their point, ignoring other examples where it doesn't.
The main take aways are:
- The Rich invests for Cash Flows. The Rest aim for Capital Gains.
- Never invest just because ‘it will go up.’
- Many lost money in an investment because of lack of skill, knowledge, and know-how but yet have a desire to achieve capital gains.
- Capital Gain Investors tend to handover money to Cash Flow Investors.
- Cash Flows often leads to Sustainable Capital Gains in the long run.
Some of my prime beliefs with cash flow are:
- virtual money will not feed the family
- go after cash flow until you have excess cash coming in that can support investments that are primarily for capital gains (ie can pay your housing loan)
PRS Investing in Malaysia Infographic
For those who qualify for the private retirement scheme in Malaysia, but have not started contributing to it, this might be a good place to start in terms of understanding what it is and what the benefits are for you.
As a simple example, how many Canadians own a stock called Generac Holdings? There are dozens like it, but this is a company that has gone up 80 per cent over the past three years, and is up 13.5 per cent over the past year. How many Canadians have ever heard of the company?
Although this piece is written for Canadians, the ideas are true for everyone. Instead of just thinking of stocks, GICs, and real estate, what other types of investments are out there that can really give you much better returns with less risk?
Three that this article explores briefly are:
- Add private debt to your portfolio
- Invest in life insurance
- Invest in life settlements and personal injury lawsuits
If you're also just thinking of investments being stocks, GICs, real estate and unit trusts, this can be a great piece to read and learn what else can be out there.
I have decided to show these opportunities to you because I believe that they are some of the best ones out there and in many cases, are ones that I am personally involved with or am looking to get involved with.
Accelerate your money goals by joining accountability groups
Did you know that studies have shown that more than 70 percent of people who have accountability buddies / groups reported completely accomplishing their goals or being more than halfway there compared to 35 percent of those who kept goals to themselves and didn’t even write them down.
That said, we are looking to create accountability groups for you to find people who are in a similar walk of life or have similar money goals so that you can increase the chances that you are successful with your goals. If you’re interested, click here to tell us what you’re interested in!
BigPay – The Best Travel Credit Card for Malaysians?
If you ever travel out of Malaysia and use your credit card, then this is BIG (pun intended). AirAsia has released BigPay, a prepaid mastercard that you can easily top up through the BigPay app and be able to use instantly.
But more importantly, BigPay charges you at the real exchange rate (which means they charge no fees). This is something you won’t get if you were to go to your bank or some exchange counter.
In fact, I plan on only using this when I go to Toronto in December.
Anyway, if you don’t have one yet, you can sign up for free and get RM10 free when you use referral code B7D3YNZPGO.
Talking to an Independent Financial Adviser
A big issue when you work with someone who calls themselves a financial advisor is you do not know if they really have your best interest at heart. That’s one of the main reasons why I never work with any (the other one is that most of them get trained to say what the company wants and thus, do not know of all the other cool opportunities out there).
However, I’ve been talking to an independent financial adviser the last few months and I do believe that not only is she knowledgeable, but also super open to sharing her knowledge.
If you’re interested in talking to her, join our facebook group and ask your questions. She will definitely find time to pop by and answer them.