Back to Basics

“Isn’t it a little silly recording every chewing gum or Coke you buy and the 20⊄ you pay for using the toilet in a shopping complex?” my client asked, expressing his frustration. I told my client that businesses and wealthy people hire accountants and bookkeepers to track their money. Poor people don’t. This is one of the reasons why they stay poor.

Some of us may still remember the little small 555 booklet that used to cost 5-10 sen which our parents used to record the groceries they bought. I remember my mum carried one with her whenever she visited the sundry shop. Those little 555 books are still available today but due to inflation, it costs a lot more now.

Get hold of one of these and start recording all inflows and outflows of your money. By merely writing down all your financial transactions, you are not only beginning the process of easing your financial problems but you are also on your way to achieving financial success. You will find money that has been slipping though the cracks. Tracking helps you see these cracks, so you can plug them up and as a result, save more money for the important things.

If you spend a little time every day doing the fundamentals, like recording your expenses, you will begin to find yourself on auto-pilot, and very much in control. By now you probably have realized that we are telling you something you already knew, a principle buried in some deep forgotten place but the aim of this article is to trigger you to do something which appears to be trivial but yet so very powerful.

“Over the years I have learned to keep my weight down. It wasn’t easy, but one of the strange phenomena of dieting is if you can discipline yourself to write down on a piece of paper the calorie count in every item of food you eat, and without doing anything else, you begin to lose weight. The process of counting calories alone will bring about a weight loss. Isn’t that interesting?” said one of my clients to me on how she succeeded in keeping her weight down without burning a big hole in her pocket by going to a slimming centre. So, start today!

Client :Springfield consultancy SDN. BHD.
Illustration of Springfield Newsletter Nov 2007/ Issue 16

邀月共团圆

Client ideasLAB Communications
Calligraphy wording 邀月共团圆
Sep 2007

Sandwich family

The Sandwich Family indicates someone who juggle family responsibilities.
At a time when your career is reaching a peak and you are looking ahead to your own retirement, you may find yourself in the position of having to help your children with college expenses while at the same time looking after the needs of your aging parents. Squeezed in the middle, you've joined the ranks of the "sandwich generation."

Client :Springfield Consultancy SDN. BHD.
Illustration of Springfield Sales Material

Get some helps before it is too late!

The Forties-Pivoting Between Young and Old

The forties is a time of reflection of our life; financial concerns included. Thoughts about leaving something significant behind will naturally surface: “Will the world be a better place because of me? Will my children have a better chance in term of educations and career opportunities?” Thinking suddenly becomes longer-range and inter-generational.

If there are to be Ringgits at work producing an income for the older person that we will be someday in the future, then they must come from the earnings of the current younger person. Therefore, every young person’s pocketbook is supposed to comprise two sections: Section A for the young person and Section B, for the older person he/she will be someday.

Part of the Ringgits in the young person’s pocketbook are the old person’s, as surely as if they had his/her name on it. Unfortunately, with no name printed on the notes, the young person might unintentionally cross the boundary into the other section, and in the process, spend the older person’s money. This is human nature; this is life; and this is the problem that we must address today.

We must arrange a plan that will retrieve the older person’s Ringgits out of the younger person’s pocketbook. This money will be kept out, appreciated with interest, and saved carefully. Such fore planning provides the person the luxury to be waiting surely and certainly for the money the day he grows old.

If you are currently the younger of the 2, you should ask yourself these questions:
1. Do you currently have saving plans?
2. Have your current plans actually helped you to get the old person’s Ringgits out of the young person’s pocketbook before you have spent them?
3. Has the saving plans that you have used turned your good intentions into enduring saving habits?
4. Have the plans you have used forced you to constant reinvestment?
5. Do the plans you use provide for automatic liquidation in a guaranteed number of dollars when you are ready to retire?


Client :Springfield consultancy SDN. BHD.
Illustration of Springfield Newsletter July 2007/ Issue 15

BOOK IN AMAZON

Say it Better in English:
Useful Phrases for
Work and Everyday Life

More than 300 illustrations has been created to enhance sense of dialogues and improve learning efficiency.

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Samples

The Ten Most Common Money Mistakes

1. Procrastination.
This is the biggest money mistake of all by putting off what should have been done yesterday till tomorrow. This is simply financial suicide on the installment plan.

2. Failure to Establish a Plan.
People do not plan to fail – they simply fail to plan. They fail to set specific objectives and implement a workable plan for realizing those objectives.

3. Ignorance of the Time Value of Money.
Most people do not understand the tremendous potential of compounding money over a period of time. It amazes most people to learn that $10,000 invested every year, earning 10% interest, can grow to more than $25,000 in ten years.

4. Failure to Recognize the Impact of Inflation.
Inflation reduces the purchasing power of dollars over time. The purchasing power of $100,000 ten years down the road is only $55,839 at an inflation rate of 6 percent.

5. Lack of a Clear Understanding of Tax Laws.
Income tax can be substantially reduced through effective tax planning. Understanding implications of tax laws can result in fewer Ringgit making the one-way trip to IRB.

6. Failure to Diversify Investment Portfolio/Taking Unnecessary Investment Risks.
Each individual must determine his degree of risk tolerance and formulate a balanced and diversified investment portfolio.

7. Inadequate Protection Against Unforeseen Losses.
Life, home, health, disability, liability and other forms of insurance are mandatory today to protect against unforeseen and catastrophic losses.

8. Letting Family Spending Run Wild.
Lack of discipline in spending habits can cause even the best-laid plans to fail.

9. Unrealistic Expectations.
It takes time to build wealth and hence an estate. Too many people expect dramatic results too fast and become disenchanted when get-rich-schemes do not materialize.

10. Failure to Use professional Advisers.
None on us can expect to live long enough to become expert at everything, especially the intricacies of efficient financial planning. We need to surround ourselves with professionals who are specialists in their areas and rely on a qualified financial consultant to coordinate the efforts of the entire financial team.

Client :
Springfield consultancy SDN. BHD.
Illustration of Springfield Newsletter April 2007

The Three Destinies

The first group of people would be those who needlessly carry heavy financial loads. They delay credit card balances from one month to the next, and in the process, owe far more than they earn. They will always be juggling ineffectively, thus struggling to keep their heads above water.

Next, would be the spend thrifts who live from paycheck to paycheck, spending every cent possible, as they flirt with credit cards, debit cards and ATM cards.

The last group is always the smallest, consisting of the ones who fight to maintain their financial freedom by restraining their spending urges. They embrace the debt free or near debt free lifestyle, as the only debt they might carry would be carefully thought through mortgage and car loans. They handle the uncontrollable events by outsourcing it. Being prepared and ready, they live with exuberance and confidence. As such, they most probably are the only people who can usher in this New Year with a spontaneous smile.

So which group do you belong to?


Client :Springfield consultancy SDN. BHD.

Illustration of Springfield Newsletter Jan 2007/ Issue 13