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Read these 10 well-rated books if you want to be a millionaire

So, you want to be a millionaire? Sure! But first things first, make sure you’re not spending too much money way over your budget.

For folks looking to attain financial freedom, we recently wrote on some challenges to save more money which might be of powerful assistance. Some concepts, like the 1% trial or 52-week challenge, can be new ideas to try out.

Meanwhile, for today’s article, we will look into 10 well-rated books to read if you want to be a millionaire. Let’s roll with the titles!

#1: “The Simple Path to Wealth” by JL Collins

Most of us want to become millionaires. But the questions we may not know how to answer can include:

How do I get started with investing?
Why is debt a must-avoid, and what should I do if I’m heavily indebted?
Is it possible to use my money wisely and not gamble it away on fluctuating stocks?

Simple, engaging, and informative, this book delivers solid advice on investments, the stock market, and real-life implementation tips.

#2: “The Millionaire Fastlane” by MJ DeMarco

“The Millionaire Fastlane” is a straightforward guide to wealth generation written by a self-made entrepreneur who has learned from both his successes and his failures.

A fan of non-conservative approaches, DeMarco explores the theory that success is tied to effort. You are the vehicle, and the fuel, engine, etc., can be tailored to your specific route. The author’s advice is concise and valuable for those seeking to grow their wealth via the expressway.

#3: “The Bogleheads’ Guide to Investing” by Taylor Larimore, Michael LeBoeuf, and Mel Lindauer

Do you know what Bogleheads are? It’s a term referring to investing enthusiasts who hold fast to the investment advice of John Bogle, the founder of Vanguard and an investor advocate.

This guidebook provides the reader with straightforward investing and financial advice designed to help the average person profit from long-term wealth creation. This book also advises readers on how to survive economic downturns and keep their footing rooted.

#4: “The Richest Man in Babylon” by George S. Clason

More a parable than a textbook, Clason’s work revolves around the subject of thrifting, financial planning, and personal wealth.

The lessons presented in this bestseller are timeless and easy to follow. You will learn how to save, spend less than you earn, and make money earn more money through seven simple rules. If you want to know, start flipping.

#5: “The Intelligent Investor” by Benjamin Graham

Known as the father of value investing, Benjamin Graham was a well-known economist and professor whose students include legends such as Warren Buffet.

Readers of “The Intelligent Investor” will focus on learning the fundamentals of value investing. Graham teaches us how to guard our investments and make them successful.

If you want to avoid common investment pitfalls like channelling too much energy to the changing sentiments of the market, this book will do the trick. Updated by famous financial journalist Jason Zweig, this edition will keep Graham’s lessons appropriate for modern demands.

A must-read for any aspiring millionaire!

#6: “How to Win Friends and Influence People” by Dale Carnegie

What does winning friends and influencing people have to do with getting rich? Plenty!

To achieve success, one must learn to work with others. They could be your friends and family members, investment advisers, business partners, or even salespeople.

Nobody who aspires to become a millionaire can afford to ignore Carnegie’s advice on how to win people over with your way of thinking. The tips conveyed in this book will help you think in fresh ways and cultivate relationships that lead to unlocking your maximum potential.

#7: “Conscious Business” by Fred Kofman

The author explains the term conscious business as the practice of expressing your passion and values through your work.

Rather than blindly chasing after profits, the conscious business person leverages their values into helping business stakeholders attain happiness.

Kofman explains that business people who approach their work with integrity, responsibility, and genuine leadership are more likely to achieve personal and financial success beyond the workplace.

#8: “Secrets of the Millionaire Mind” by T. Harv Eker

“Secrets of the Millionaire Mind” concentrates on identifying internal traits that can lead to financial success.

Eker does that by identifying one’s money and success blueprint hidden deep within the subconscious mind. For those whose blueprints are not built for success, the author offers a chance to reset one’s mental patterns to improve the likelihood of financial triumph.

#9: “The Millionaire Mind” by Thomas J. Stanley

Peeps who are keen to explore further the interaction of mindset and wealth, Stanley’s writings can offer a glimpse into the millionaire’s headspace.

While many may assume that millionaires are well-connected graduates of prestigious schools who flaunt their wealth, the truth might be more surprising. Those who want clear road maps on how millionaires found their niches, look no further.

#10: “Think and Grow Rich” by Napoleon Hill

We will close our list with one of the classic books on wealth creation and financial success. Hill’s “Think and Grow Rich“ lets you in on money-making secrets inspired by Andrew Carnegie’s magic formula for success.

The book will share with you 13 steps towards riches. From the attainment of desire to influencing the subconscious mind and putting it into action, you will get the fortune you want if you’re ready to welcome it.

A brief look at debt settlement options in Singapore

Do you know that the average household debt in Singapore is about S$55,000 per capita?

With a value that high, there’s no doubt that it’s about time to learn how to manage your debt and minimise it as much as you can. Financial freedom is within reach if you’re able to settle your debt in time the right way.

Here’s a brief look at various debt settlement options available on our sunny island.

#1: Self-Administration

One of the easiest ways to manage your debt is to directly discuss with your creditors to see if you can potentially negotiate or appeal for a cheaper instalment repayment plan.

However, you need to approach them with some research done beforehand. In your written appeal, fully flesh out your financial situation and suggest a repayment amount that’s okay for you.

Don’t forget to include documental proof like income and CPF statements whenever applicable to bolster your appeal.

#2: Discounted Lump Sum Settlement

Image Credits: business-standard.com

Once you’ve accumulated enough financial capital, you can ask your creditors about repaying your debt in a discounted lump sum.

A quick way to build up your lump sum is to consider selling off several assets or taking a low-interest personal loan from a reputable company or financial institution. Then, pull out those negotiating skills to seek a discount.

#3: Debt Consolidation Plan (DCP)

Under this refinancing program, you’re able to pool together all your unsecured debts using one financial organisation.

You should note that some unsecured debts are not allowed, such as medical loans, joint account debts, and more. Unless you don’t fit the DCP criteria, you’re eligible to apply directly at your participating financial institution.

Once your application passes, your unsecured credit facilities will close, and a revolving credit facility will open to aid you in payments.

#4: Debt Management Program (DMP)

Image Credits: incharge.org

Whenever heavy financial stress hits and you’re unable to pay your debt back, not all hope is lost.

The Credit Counseling Singapore (CCS) runs a DMP that provides financial counselling sessions to examine your payback ability and ideally settle your debts in one decade.

The CCS will help create a repayment plan with lower interest rates and more extended repayment periods to enable you to pay back those debts. Among other benefits, the program is perfect for you only if you qualify.

#5: Bankruptcy

As an individual or a business, you can file for bankruptcy with the High Court if you’re unable to repay a debt. This is commonly the last resort because you will face some strict consequences if you pursue this option.

You will be assigned a Private Trustee-in-Bankruptcy (PTIB) or Official Assignee (OA) who can help assess your situation and figure out a target contribution on your behalf to repay your creditors.

#6: Debt Repayment Scheme (DRS)

Image Credits: myfrugalhome.com

As we come to a close, there is a way to avoid bankruptcy – your OA can lead you through a DRS.

But because you’re not allowed to apply for this option directly, only your OA can approve you after previewing your bankruptcy application. Upon fulfilling the necessary criteria, you will not be labelled as bankrupt.

However, you must commit to a repayment plan that spans at least five years. For more information on DRS, you may head to the Ministry of Law Insolvency Office’s webpage.

Final thoughts

Debt settlement can be scary if you do not possess sufficient knowledge on the topic. Why not speak to a trained professional if you need help resolving your debt problems?

Folks who need 1-to-1 financial counselling can book an appointment with the CCS. Do note that there’s a one-time fee of S$30, but no further fees required for subsequent meetings (if necessary).

Nothing is impossible to solve. Take heart!

Peer-to-Peer or more commonly known as P2P lending started in the US and UK in 2005, and has since taken the world by storm. Back home in Singapore, P2P lending contributed to approximately USD 207 million in financing offered to businesses here in 2020. Investors on P2P lending platforms can participate in these financing and earn returns in the form of interests.

Take for example Funding Societies, a popular P2P investment platform amongst Singaporean investors. It is currently licensed in Singapore and has operations in 3 other SEA countries. Backed by Sequoia India, Softbank Ventures Asia, SGInnovate amongst many others, the platform has grown at a rapid pace since launching in Singapore 6 years ago. Here are some things to note when investing with Funding Societies:

Low barrier to entry: Investors can invest as low as $20 per loan
Short tenor: Investment tenors are quite short ranging from 1 to 12 months
Returns on Investment for each Product Type: Interest rates usually range between
- 3% – 5% per annum for a Guaranteed Investment product;
- 6% – 8% per annum for a Property-backed investment product;
- 8% – 18% per annum for Invoice financing and Working capital related investments products

Risks and Returns of P2P lending in Singapore

Investors are able to invest by crowdfunding the business financing available on the platforms and potentially earn returns in the form of interests typically ranging in the mid to high single digits. The investment amount starts as low as $20 at Funding Societies, which investors can leverage on for their portfolio diversification. Depending on the loan product, payouts can be done monthly so investors get their investments and returns in a shorter time frame. Compounding returns, as well as a rather short learning curve, are also attractive incentives as well.

That said, repayments can be delayed or go completely unpaid. This is why it is imperative for the P2P lending platform to first do a preliminary round of due diligence and present the facts comprehensively to investors, before allowing investors to decide whether or not to proceed. There is also a risk of the P2P lending platform shutting down if it is not financially stable on its own. To mitigate this risk, P2P platforms regulated by MAS can engage an independent escrow agent to handle all investor funds separate from its business account, such that the escrow agent will hold the funds even if the platform goes under. Funding Societies does just that to provide peace of mind to investors. As such, there is a need to do your due diligence and ensure such investments match your risk appetite.

Get a S$20 cashback when you sign up on Funding Societies with the exclusive promo code “MONEY21” and make a total investment of S$200 by 30th April 2021.

How can Diversification help to minimise risks in P2P lending?

One of the largest risks in investing in a P2P lending platform like Funding Societies is the risk of a SME defaulting. Portfolio diversification by means of investing into a good mix of notes and industries on the platform is one way to mitigate concentration and default risks and optimize your portfolio returns in the long run.

Taking the above scenario as an example, we see that Andy invested S$800 into a single deal and this single investment makes up 50% of his overall portfolio. Whereas in the other scenario, Emma invested S$50 uniformly across 100 deals, making a single investment just 1% of her overall portfolio. In the event that Deal A defaults, Emma’s potential loss will only be 1% of her overall portfolio whereas Andy might face a potential loss of half of his overall portfolio.

Conclusion

Although P2P lending is still a fairly young industry within Singapore, the demand is ever increasing. Given that 99% of businesses in Singapore are SMEs and that the returns on investments typically range in the mid to high single digits interest rate per annum, P2P lending in Singapore serves both the needs of SMEs and investors. With all that said, it is important for investors to do their own due diligence and measure the risks involved against their own risk appetite.

Get a S$20 cashback when you sign up on Funding Societies with the exclusive promo code “MONEY21” and make a total investment of S$200 by 30th April 2021.

Terms and Conditions apply

Investors must sign up with the aforementioned promo code and make a total investment of at least S$200 by 30th Apr 2021 to be eligible for the $20 cashback. Cashback will be credited into the eligible investors’ accounts by the end of May 2021. Funding Societies’ investor T&Cs apply.

Funding Societies is the largest SME digital financing platform in Southeast Asia. It is available in Singapore, Indonesia, Malaysia and Thailand, and backed by Sequoia India, Softbank Ventures Asia Corp and SGInnovate amongst many others. It provides business financing to small and medium-sized enterprises (SMEs), which is crowdfunded by individual and institutional investors. Investors can invest from as low as S$20 with a tenor of no more than 12 months.

Disclaimers:

This article is contributed by Funding Societies.

It should not be construed that Moneydigest is endorsing this article or any of the products and services provided by Funding Societies.

The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.

Actual returns may be lower than the expected rates of return, and historical rates of returns may not reflect future returns. The Product type interest rates indicated in the article are derived from historical rates of returns and are exclusive of service fees.

All information in this article is accurate as of 29th March 2021

4 Challenges of Budgeting in 2021

Stating that “2020 has been a tough year” is an understatement. Words cannot describe how much we have been affected by the past year. I, for one, was tasked to let go of employees due to financial constraints. It was not easy! It was one of the hardest decisions that I had to tackle because I have seen these people grow. Moreover, I felt responsible for their well-beings too. However, downsizing was essential for the company to survive.

Our stories may vary, but one thing remains the same. We have all endured the physical, mental, and financial toll that came with the pandemic. As we adapt to the “new normal”, we come to realize how challenging it is to keep a budget. You not only have to fight the urge of spending money, but you also must follow the budget despite unforeseen hurdles.

On that note, here are some of the common challenges that you may experience as you establish your budget.

#1: HIGH COST OF LIVING IN SINGAPORE

The cost of living in Singapore is one of the external factors that you have consider when making your budget. According to the Economist Intelligence Unit’s Worldwide Cost of Living (WCOL) survey conducted in 2020, Singapore ranked fourth in the global list of the most expensive cities. The WCOL is a bi-annual survey that compares more than 400 individual prices across 138 products and services in over 130 cities worldwide. Zurich, Paris, and Hong Kong preceded Singapore.

Whether you are a young working adult or a foreign migrant worker, you must set a realistic amount for your spending each month. Take each financial category into consideration. For instance, you should have at least S$700 to S$1,500 a month if you are renting a space. If you are eligible to purchase an HDB property, you should set aside at least S$1,500 to S$3,000 a month. Your daily expenses and your overall lifestyle may change to fit your budget.

#2: LABOR-INTENSIVE TRACKING SYSTEM

Many people are afraid of establishing a budget due to the labor-intensive tracking system. Tracking your spending and income may seem like a chore at first, but you will be more comfortable as time passes. Start by tracking your receipts and other spending through a notebook or a spreadsheet. The rise of apps paved way for computer programs that are dedicated to tracking your spending. Find an app that works for you!

Being diligent with noting down your expenses takes practice. If you forget to write down important receipts, inaccuracies in your budget may occur. You may notice that your savings account depleted without knowing where your money went.

#3: DIFFERENCES IN CASH FLOW MANAGEMENT

The means of getting your income can affect your budget. What is the frequency of your paycheck? The first company I worked for paid us every end of the month. In contrast, the last company I worked for paid its employees every two weeks. Getting your paycheck once a month can entail different issues.

For some people, they experience stress as they wait for the next paycheck to come. It is hard for them to make ends meet because they see their money disappear in the first two weeks alone. These scenarios highlight an issue of cash flow management.

Waiting for your next paycheck can cause stress and anxiety. If you are paid once a month, consider dividing your income per week. Allocate enough money for the remaining weeks by keeping them in your savings account. Doing this will enable you to create a system that resembles being paid on a weekly basis.

#4: EXPENSES EXCEED INCOME

Many families have been painfully affected with job loss, reduced income, and prolonged unemployment in the past year. Recovery takes time. However, our bills remain the same. The effects of pandemic and the limitations in our income will greatly affect how we budget our money in the year 2021.

Image Credits: pixabay.com

As I leave my full-time job this month, I will need to take serious lifestyle changes at heart. The first step is to eliminate all unnecessary spending. It is important to focus on the necessary expenses such as rent, food, healthcare, and transportation. The next step is to carefully track my expenses with budgeting tools. Lastly, it is important to become flexible when it comes to budgeting and to adjust my spending depending on my needs and income streams.

Cutting down one’s expenses is a sensible solution for the time being. Finding a permanent solution to this…is the challenge.

Sources: 1, 2, & 3

Fundamental Rules Of Budgeting

As you gloss over the pages of old personal finance books, you will realize that they stress on the importance of creating a budget and sticking to it. Poof! All your financial problems will be solved in a snap. However, life is not as simple as that.

Budgeting is the process of creating a financial plan based on your estimated revenue and expenses over a period. It is a complex task that takes your entire financial profile into account. It is up to you to embrace the process!

On that note, here are the fundamental rules of budgeting.

#1: BE HONEST WITH YOURSELF

Awareness of how much money comes in and how much you spend will enable you to pinpoint your spending habits. Be honest with yourself! You will be surprised that everything adds up, once you keep track of your money on a regular basis. Start by writing down your expenses for a week and continue. Include your daily coffee runs and Netflix subscription. You can use online budgeting tools to help you monitor your money.

#2: BE PREPARED TO CHANGE

The only permanent thing in this world is change. Your efforts of controlling your environment will be put to waste because change is inevitable. If you reached the end of the month and noticed that you are struggling to pay bills, something needs to change. Alter your budgeting strategies and identify which categories you can cut down on. Fortunately for you, small changes can make a big difference.

Your income, expenses, and priorities will change over time. You must adjust your budget accordingly.

#3: LEARN SELF-CONTROL

Within my immediate social circles, my partner is the primary model for self-control. He steers away from luxury and focuses on strategies that make him a savvy spender. He practices delayed gratification too. Learning self-control can help you accomplish your realistic budget.

If you are lucky, your parents or teachers taught you this skill when you were a child. If not, you will learn the importance of delaying gratification. Despite the tempting nature of credit cards, it is better to wait until you have saved up the money for a purchase. You do not want to spend the rest of your years paying for your credit cards alone!

#4: USE CASH WHEN NEEDED

Notice your spending habits. If you are constantly overspending on a budget category, consider having an envelope system. Use the allocated cash from the envelop and stop spending once it runs out. It is the ultimate accountability strategy.

#5: CREATE GOALS

Be realistic when it comes to your budget and your priorities. Whether you are paying off student loans or building an emergency fund, you need to focus on the goal. Knowing the reasons behind why you are saving and why you are making sacrifices will help you sustain your budget.

#6: PROTECT YOUR WEALTH

Ensure that your hard-earned money does not vanish by taking some safety measures. IF you are renting a flat, consider getting an insurance to protect your belongings from fire or burglary. If you just bought a laptop, sign-up for the warranty. This will help you cushion the costs of repairs.

Image Credits: unsplash.com

You must educate yourself on budgeting and handling money. The more you learn about handling money wisely, the more concrete your reasons for budgeting will be. Good luck!

Sources: 1 & 2