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Jul 03

Journey to Financial Success

Speaker: Eric Ko

 

Eric Ko talked about journey to financial success. “The future depends on what you do today”.

Eric Ko talked about journey to financial success. “The future depends on what you do today”.

Bill Gates: If you’re born poor, it’s not your fault. If you die poor, it’s your fault. Greetings.

How many of you are financially successful? Sure enough, many people have different definitions towards being successful financially. This evening, I would to share my views onto becoming financially successful.

 

Decide Lifestyle – For me, to be financially successful you first need to decide on your lifestyle particularly your expenses incurred to sustain your desired lifestyle.

Define passive income – Surprisingly, many people out there still relying on their active income (using their time in exchange for  $$) to fund all their expenses. Instead, we should start building more passive income to pay for our desired lifestyle and subsequently replace our active earnings with passive earnings.

Once you know how much you will spend for desired lifestyle, you’ll need to know where you are.

 

Know where you are

To know where your current financial status is, I would like to draw your attention to a formula called the “Wealth Formula”. Using this formula, you will be able calculate your financial status. Are you ready? Write this down:

Wealth = Savings / (Expenses – Passive Income)

Example. Plug in any figure I like. Present meaning to calculation: 5 months before you finish up all your savings without passive income. And if you break it down further, its equivalent to $500 a week and $70 a day to ensure the continuity of your savings.

 

Know what to do

If you already know where you are, you now need to know what to do. Whether you like it or not, you’re already into some form of investment. Consider this question, where do you all keep your savings? In the banks that return you 3-5% per annum. Unless you’re telling me that you still keep your money the old fashioned way, into Khong Guan Biscuit Tin. Even if it’s, you’re still investing. Just that not for high returns but high risk. What I am suggesting here is if you’re already investing, why not invest portfolios that give higher returns than normal banks. eg stocks, forex, commodities. Once you identified your interest of investment, you’ll need to know how to start.

 

Know how to start

For me, my current interest is in stocks investing. Just a word of cautious, if u intend to start your investing journey, make sure you do your research well. Have you ever gone to a supermarket just to buy a shampoo? You will google up the ingredients and the purpose of the shampoo before getting to the store. Before you even buy the shampoo, you’ll also start reading all labels like halal certification just to know if the shampoo can wash for long hair, short hair, curly hair, coloured hair and no hair. Same thing with investment. Research well before you invest. Getting started also means that you need to take action.

 

Ladies and Gentlemen, TAKE MASSIVE ACTION because nothing will happen without action.

Sign up for investment courses, get a financial guru or even start investing your own trial and error way. Whatever it is, TAKE ACTION because Mahatma Ghandi once said “The future depends on what you do today”. I wish you all the best in your journey to financial success.

 

 

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