It seems like this week is a week focused around having a financial plan. What exactly is a financial plan and how does that help you? Well, this week’s newsletter will give you the first few steps.

Question of the week

What does financial planning mean to you? Do you have a financial plan? Leave your thoughts here.

From Our Own Site

The Value of Financial Planners Even if You're Not Rich

You may have thought that financial planners in Malaysia were only meant for the rich people. But here's another idea: what if these rich people got to where they are because they had a professional financial planners create a financial game plan for them to get to where they are today?

I can't begin to tell you just how much it helped for me to have a pulse on my finances. To know exactly how much money I had coming in, where that money was going to. To know how much was going out, where that money was going to. To know what investments and insurance policies I have and how they were supporting my lifestyle.

It's the reason why I have been able to do so many different things in my life. From buying a property, to travelling a few months a year.

I had to learn this all myself. Of course, it wasn't all sunshine and rainbows. So far this journey, I had lost 30,000+ because I never had a financial planner help guide me.

What exactly can they do for you? Find out in this blog post from us!

Money in Daily Life

How to DIY a Financial Literacy Plan That Works For You

Sadly, there isn’t a time machine we can use to go back and take that class, but I’ve got something even better: A way to build a targeted financial literacy “curriculum” based on what you actually need to know.

Have you ever thought about creating a financial plan for yourself? Or has it always been a daunting thought to do it? Well, this blog post might be able to help you start:

  • Step 1: Think about your current financial situation
  • Step 2: Pick the highest-impact areas you can focus on
  • Step 3: Find resources to help you learn

The blog goes into more depth and you should be able to get something out of this process.

However, if you'd like to go deeper and be guided through the whole process, we have partnered with a financial planning company to help you come up with your own financial roadmap based off your current situation and the goals you have.

You Should Always Read Your Insurance Policies (And What Happened When I Read Mine)

Buying insurance is one thing, but reading your insurance policies cover-to-cover is quite another. The thing is, if you have insurance—of any kind—you need to do both.

The worst thing that can happen when buying insurance is to think that you are covered for something when in reality you are not. There are many different things to look out for, and we will be covering the majority of those with our new financial planner friends.

According to this blog post, the two main things that people tend to miss are:

  • You might miss key details about your responsibilities.
  • You might not know you’re covered for specific things.

If you don't feel comfortable reading the whole thing yourself, let us know in the facebook group as we do have a few financial planners who would be happy to help make sense of it for you!

Sabbatical top of mind for most Canadians — especially millennials — but they lack financial plan: survey

Two-thirds of Canadians have thought about quitting their jobs and taking a life sabbatical, while one in four are already saving up for it, according to a Simplii Financial survey released Thursday.

Although this is focused on Canadians, we believe that this is something that most people should go through. Whether that's traveling the world to expose yourself to life, or to spend some time trying out things that you think you'd love to spend your time doing.

And in order to make that possible, you will need to have a financial plan in place so that you won't have to worry while you take that time off.

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Grow Your Wealth

Patient Capital: The Key To Long-Term Wealth Creation

The data there indicated that fund returns actually rise as their lock-up period increases, from a median of 4.5% for funds with lock-ups of less than a fiscal quarter up to a median return of almost 13% for funds with a two- to three-year lock-up.

If you're thinking of investing, this is a good read to give you more perspective on the value of long term investing and finding ways to rely less on willpower.

7 Investment Principles I Learnt from Berkshire Hathaway’s Annual Report

Today, many who buy and sell stocks, believe that they are ‘investing’ when in fact, they are speculating. This is evident when stock purchases are based on a person’s opinion on their stock prices and where they would be heading in the future, not based on a complete study of the stocks’ business models, financial results, and their plans for future growth.

The 7 principles that this article covers are:

  • Principle #1: I View Common Stocks as Interests in Businesses
  • Principle #2: Buffett Looks for Quality Businesses.
  • Principle #3: Buffett has 6 Acquisition Criteria
  • Principle #4: A Preference for Cash Flows
  • Principle #5: A Depressed Stock Market is Good News to Berkshire Hathaway
  • Principle #6: A Good Night’s Sleep is More Important than ‘High Risk, High Returns’
  • Principle #7: Have Some Cash Standby for Great Opportunities

The article goes into much more depth, using examples of what Birkshire has done to live by these principles and I highly recommend you read the rest of it to learn how one of the most successful companies have gotten to where they are.

Cool Opportunities

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.