12 personal money management life lessons to live by

Singapore 50-dollar notes

While we were searching for good reads, we came across Cary Siegel’s “Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live By”. We’re not even halfway done with the book but already learning so much from the retired business executive.

Here are 12 personal money management life lessons adapted from the book.

#1: Marry someone who has good financial habits
a couple wearing masks for a wedding photo

Image Credits: The Straits Times

If you’re already married, you might agree that money is the top reason why couples fight. It could be very much due to a non-full disclosure during the dating process. Singles planning to tie the knot should learn how to facilitate money conversations to identify each other’s financial habits.

Here are some crucial questions you can ask:

  • How much debt do you have? 
  • At what age do you want to retire?
  • Do you want to have kids? If so, how many and how soon?
  • What is an ideal amount for an emergency fund?
  • Are we ready to leave the workforce to be a full-time parent? If yes, which one of us and for how long?
#2: Stay married to the same person
old asian couple

Image Credits: Pinterest

According to Singapore Legal Advice, divorce fees may cost up to S$3,500 for simplified uncontested divorces and S$10,000 to S$35,000 for contested divorces. Let’s not forget about pre-divorce payments, alimony, and child support charges. Need we say more?

#3: Know the cost of raising kids
asian family with young kids

Image Credits: MindChamps

The obvious expenditures include education, healthcare, clothing, and food. Other costs include moving to a larger HDB flat and getting a new car to shuttle them to school and enrichment classes.

Prudential Singapore has examined various costs involved in the parenting journey. From pregnancy to childbirth and education to recreation, you must plan your finances for the long road ahead.

#4: Buy only when you can afford it
a toy car and car keys

Image Credits: Carsome

When you don’t heed this principle, you will find yourself on a downward spiral to possible bankruptcy. Live below your means, and you will find extra cash to save and invest at the end of the month.

#5: Take care of your stuff
laptop-maintenance

Image Credits: atulhost.com

By stuff, we mean the things you own. It could be your white shirt, your latest mobile device, or even your car. When you learn how to take care of your stuff, you will find them lasting longer over time and requiring fewer repairs or replacements. This equates to more savings!

We wrote an article several months ago with tips to help you apply basic maintenance to your electronic gadgets to help them last longer. Click through the link if you’re keen to find out more details on battery inspection, data clearance, and more.

#6: Build lasting friendships
a group of friends

Image Credits: Visit Singapore

One of the greatest gifts on earth is connecting and learning from people from all walks of life. Whether your secondary school classmates or polytechnic school friends are working within the financial sector or not, there are still personal money management experiences you can tap on from them.

#7: Take away more by giving more
colleagues at work

Image Credits: HealthHub

This applies to your career in the early stages. Do you believe that you take away more from your company by giving more? The extra time and effort you’re donating to a work project can return tenfold because you gain valuable skills, knowledge, and experience by doing. Think of it as getting paid to learn!

With that said, those who are forced to work extra hours, make sure your employer is compliant with the Ministry of Manpower’s (MOM) practices. Click here for some FAQs relating to overtime work and rest days.

#8: Spend an hour per week learning about personal finance
man-reading-on-ipad

Image Credits: ConversionLab

There are tons of free resources online, and a quick Google search can reveal the top-ranking ones. The Straits Times also has an “invest” section you can take advantage of if you’re a subscriber. Don’t underestimate the little hour you spend a week because it’s significant when it adds up over the years.

#9: Enjoy the slow journey to wealth
a man in a suit drinking coffee

Image Credits: unsplash.com

Not all millionaires are made overnight. Do a quick search, and you will probably come across several rags-to-riches stories that will inspire you.

Please note that you don’t have to be exactly like any of the high profiles out there because everyone has their set of money management principles. Find your own and be comfortable in your unique journey to wealth.

#10: Pen down attainable short-term financial goals
a lady writing something with a pen

Image Credits: unsplash.com

Short-term financial goals refer to your quarterly plans or annual ones. This could include the exact amounts for savings and investments. You can also note down personal reward amounts if you’re expecting big purchases. Remember to review your goals frequently and spot the hits and misses.

#11: Set realistic long-term financial goals
person typing on a MacBook

Image Credits: unsplash.com

When you have your short-term plans ready, it’s good to spend some time setting realistic long-term financial goals. If you like it, you may call it “the big picture” or “a bird’s eye view”. Long-term goals could mean you look far ahead in 5 years, 15 years, or even more.

Here’s a look at the author’s long-term financial goals when he was 25:

  • Buy my next car with cash (within 5 years).
  • Pay off all college loans by the age of 30.
  • Own a home by 35.
  • Attain a net worth of $1 million by the age of 40.
  • Own a beach property by age 45.
  • Retire by the age of 50.
#12: Develop a simple net worth statement
Net worth calculator

Image Credits: MoneySense

There are online resources available to help you find out your net worth. It’s nothing too difficult to understand. For example, MoneySense has a net worth calculator you can use. All you have to do is input your total assets and total liabilities and let the webpage work its magic.

So what are your thoughts on a peek at Siegel’s “Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live By”?

Let us know if you want more insights from his book, and we will prepare them in the coming weeks. If not, you can also grab a copy yourself and be enriched with more personal money management principles to live by. Happy reading!

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Powerful messages from ‘The White Tiger’ we can apply in real life

The White Tiger ending scene

Honestly speaking, while ‘The White Tiger’ has ranked its way on top 10 of Netflix’s film list… I’m not a fervent fan of it. But that’s just my personal opinion.

On one side, we’re happy that Balram broke free from his master and saw the light at the end of his tunnel. But on the other hand, we can’t seem to condone his behaviour and the choices he made.

The White Tiger movie poster

With that said, though we’re sitting on the fence on this 2021 film that’s currently showing on Netflix, there are powerful messages to learn and apply in real life from ‘The White Tiger’.

Here’s our take on it.

#1: Poverty should not be a hindrance to one’s success

Just a few minutes into the opening, ‘The White Tiger’ opens with a weighty message. That is, “Any poor boy in any forgotten village can grow up to become the prime minister of India.” Yes, poverty sucks big time, but not being rich should not be a barrier to one’s hope and dream for success.

#2: Tap onto every opportunity to listen and learn

Balram shared that he had learned to use his time wisely to eavesdrop on customers, hoping to gain an opportunity. While eavesdropping isn’t that polite, it doesn’t hurt to tap on opportunities to listen from your neighbours and gain some insights. You never know when an opportunity will present itself.

#3: Upskill for better prospects

Balram could have settled contentedly with his brother in the poor village. But instead, his target for better prospects led him to the desire for upskilling. Instead of saying, “I can’t drive so this job is not for me,” he asked his granny for 300 rupees (S$5.47) to go for driving lessons with aims to secure a better paying job.

#4: Eat or be eaten up

Isn’t this just so true about life in general? Whether it’s in relationships or the economy, there are only two destinies. You either eat to your fill and prosper to greater heights or get eaten up by your co-workers who step on you to rise to the top. You hold the power to write your fate!

#5: Know your competition

When we say know your competition, we mean to be well aware of it. Especially to those thinking of starting their own business or entrepreneurs who are at an early stage running their start-up, this is some wise advice you ought to take. Being up to date with what’s happening within your industry can steer your business strategy towards success.

#6: Women should speak up for themselves

We know it’s the 21st century, but women still face discrimination in certain countries and cultures. Ladies, if a man ever tells you that you belong at home and have no place in a man’s discussion, speak up. There is no way you should let a person belittle you like that.

#7: Don’t underestimate the weight of kind words

Do you remember the first time or a situation where you were desperate for some kind words? “You’ll figure it out. Don’t worry,” was what Ashok told Balram in ‘The White Tiger’. This was after Mukesh slapped Balram on the head after he missed the exit. Don’t underestimate these simple words to a friend or colleague. You might touch them in unexpected ways beyond your imagination.

#8: You don’t always need a start-up business plan

It’s common for start-ups to come up with a business plan. Well, it helps to have a clear vision for the way forward and a written document to follow if there are hurdles along the way. But do you know that it’s not always necessary? Instead of wasting time on a start-up business plan, you want to do these five things instead.

#9: Spend some time in reflection

Reflections are not only for the end of the year. It doesn’t harm anyone to do a review at any point in their lives. Asking yourself questions such as “What is it that I want to do?” can direct you to a decision you might not have thought about it before. Is it a business idea you’ve been putting on hold for some time? Or a new field you’re looking to enter? Take actionable steps to achieve it in 2021.

#10: Stop searching for the key when the door is open

Balram thought he heard Pinky said to him, “You were looking for the key for years, but the door was always open.” Putting this in life’s context, do you find yourself searching for the key to open a particular door? While being stuck in this tiresome rat race, maybe you already hold the ability to unlock new opportunities. The question is, are you allowing yourself to?

#11: The early bird catches the worm

We bet all Chinese-educated peeps have heard of the phrase, “早起的鸟儿有虫吃”. When translated to English, it simply refers to how the early bird catches the worm for food. To put it in another way, it benefits one to be early in grabbing onto a chance when others are still deep in their slumber. So are you the former or the latter?

#12: Beware of yielding to temptation

When temptation knocks at the door, learn to walk away. A little moment of interest in that “red bag” will grow into an idea, and that action of folly will lead to possible regrets down the road. You will start justifying your actions as right and look for ways to continue indulging in that little secret you want to hide from the world.

Final Thoughts

We think young people should watch ‘The White Tiger’ with discernment. Robbing someone to break away from poverty and gaining monetary freedom is not morally right.

We shan’t spoil it any further for those who’ve yet to watch the film but have read up till this point. Let us know your thoughts on the ending after you’re done with your two hours?

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4 Life Lessons From Tesla’s Elon Musk

Elon Musk became a household name in the contemporary years due to establishing both PayPal and Tesla Motors. It all began in 1971 when he was born in South Africa. After obtaining a Canadian passport in 1988, he left South Africa in search of greater economic opportunities available in the United States. He founded X.com in 1999. This website was later known as PayPal.

He also became the brainchild of both SpaceX (2002) and Tesla Motors (2003). He reaped the fruits of his labor as he became a multi-millionaire in his late 20s when he sold his start-up company – Zip2. With all these achievements on his belt, here are some life lessons that he shared during his past interviews.

#1: PERSISTENCE PAYS OFF

Persistence is very important to success. When he was asked what he was willing to give up towards realizing his dreams, he said: “I am willing to give up everything that others hold dear.” Elon Musk was in the journey for the long haul.

It is difficult for us to measure the limits of what we are capable of. For instance, he experienced serious challenges in 2008 when both SpaceX and Tesla were running out of money. He saw the circumstance as short-term set backs and focused on reducing the costs of launches in SpaceX. At a time when most people had given up in American automotive and aerospace industries, he showed foresight to stay on these industries. He looked to the future with hope and was overly optimistic in most cases.

#2: FOCUS ON THE IMPACT OF YOUR DREAMS

Zip2 was the first company he founded. When he sold it to Compaq, he poured his soul into PayPal. He had enough money to retire into wilderness when eBay bought PayPal. However, he had bigger dreams. He is not here for the quick route, he is here for the long haul. He put about $100 million in Tesla and $70 million in SpaceX. Other found him crazy at that time. He did not care! His vision was clear.

He wanted to prolong the lifespan of humanity by colonizing Mars. He aims to have weekly flights to space when he is in his 50’s. This propels all his enterprises to chase excellence and history. Our dreams may not be as grand as his, but having an end goal you strive for can help motivate you to work towards it.

#3: BECOME YOUR OWN CRITIQUE

“It’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better. I think that’s the single best piece of advice: constantly think about how you could be doing things better and questioning yourself,” he once said.

Despite accomplishing various things in different industries, he does not stop to reach excellence. He constantly strives to improve himself. This is something we can apply in our daily lives. Whether it be personal or professional life, improving your skills and knowledge can help you become the best version of yourself. Identify certain parts of yourself that you want to improve on and look for resources that can help you with that.

#4: TALENT BEATS NUMBERS

When it comes to hiring employees, talent beats numbers. Entrepreneurs may experience problems when they throw a lot of employees to one building. Not Musk.

Image Credits: pixabay.com

According to him: “It is a mistake to hire huge numbers of people to get a complicated job done. Numbers will never compensate for talent in getting the right answer.” Hiring two people who do not know anything about the job will slow down the progress and cost you more. Instead, hire a person best suited for the job. Do not forget about the person’s character too. It must go hand-in-hand with the talent.

Sources: 1, 2, & 3

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7 Life Lessons From Alibaba’s Jack Ma

YOUR HUMBLE BEGINNINGS WILL SHAPE YOU

On September 10, 1964, Ma Yun or Jack Ma was born. He originated from Hangzhou, southeastern China. He had two other siblings and was not born into a wealthy family. In fact, they did not have much money growing up. Things began to change when President Nixon visited Hangzhou in 1972. Ma’s hometown became a tourist destination. He took advantage of that. As a teenager, Ma offered tours of the city in exchange for English lessons. The nickname “Jack” was given to him by a foreigner that he befriended.

DO NOT QUIT

We all have a “quit switch”. The question is: how soon will you turn it on? For Jack Ma, he saw failures as opportunities to improve himself. After failing the university entrance exam twice, he finally got in on the third try. He attended the Hangzhou Teachers Institute and graduated in 1988.

As soon as he graduated, he started applying to as many jobs as he could. He experienced a dozen rejections before getting hired as an English teacher. Ma was a natural with his students. Despite having a relatively low paycheck, he loved his job. He did not quit!

STEP OUT OF YOUR COMFORT ZONE

Ma had zero experience with computers and coding, but he was captivated by the Internet. He used it for the first time during a trip to America in 1995. During this time, he started a translation business. His first online search was “beer”. He was surprised that there were no Chinese beers in the results. It was at that moment that he decided to open an Internet company for China.

He was stepping out of his comfort zone and exhausting his resources to his new ventures. He gathered 17 of his friends and convinced them to invest in his vision for an online marketplace he called “Alibaba.” This website allowed exporters to post product listings that customers could buy directly. Soon, Alibaba started to attract members from all over the globe. The rest is history.

MONEY IS A RESPONSIBILITY

Jack Ma is China’s fourth richest person and the 25th richest person in the world. He is worth billions! With this massive amount of wealth, one can simply think that he is happy and content. However, he highlighted that money comes with responsibility.

He once said:

“When I graduated, I earned $20 a month, which was fantastic. When you have one million dollars, you’re a lucky person. When you have 10 million dollars, you’ve got trouble, a lot of headaches. When you have more than one billion dollars, or a hundred million dollars, that’s a responsibility you have—it’s the trust of people on you, because people believe you can spend money better than the others.”

HAVING CONNECTIONS IS NOT THE ONLY WAY TO SUCCESS

Jack Ma did not have a powerful family growing up. He started Alibaba in his apartment with his friends. However, he created opportunities for himself and the people around him. He created a service that is needed by the people and believed that the customers supported their business. Having connections is not the only way to achieve success.

INVEST IN THE YOUTH

Your people is not only your manpower, they play an important part in making your dreams come true. Invest in the youth to make your business happen. Ma said that the “secret here is helping those who want to be successful”. Find people who never give up due to their fierce motivation.

“Help young people. Help small guys. Because small guys will be big. Young people will have the seeds you bury in their minds and when they grow up they will change the world.”

FOCUS ON SOLVING A PROBLEM

It is not always about making profits. Focus on solving a problem that many people face. You build a business to make money. However, money should not be your sole reason to provide service. Alibaba was born with the idea of empowering people online, which allowed it to grow.

Image credits: unsplash.com

Sources: 1 & 2

 

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6 Things You Can Learn About Money From Professor X-Perience

“Who is Professor X-Perience?”, you may ask. It is a persona that I created to embody our experiences.

Our experiences consist of  the overall process of sensing and doing things. As far as I know, not everything can be learned from the pages of the book! Exploring the world with your own eyes gives you the most valuable lessons about money.

On that note, here are some of the financial realizations that came from my experiences:

1. GIVE AND YOU SHALL RECEIVE

Whether you want to admit it or not, it is rare that we receive something without doing anything. This statement does not only pertain to finances as it can be applied to other areas in life like opportunities and friendships. If you want to increase the perceived value of what you receive, you must give it out first.

Why is this so? I realized that you reap what you sow. Almost everything that happened to me was a result of my actions. I was able to enjoy an overseas trip because I worked for extra hours and saved up for it.

Image Credits: pixabay.com

Image Credits: pixabay.com

2. EARN YOUR MONEY HARD

Since you worked hard for your money, you must spend it wisely.

I never saw the true value of money until I had my first full-time job. When I was younger, I spent my part-time pay on shoes, clothes, tickets, and other materialistic things. The feeling of satisfaction was short-lived as these things are superficial. Nowadays, I spend my money on long-term investments.

Being independent with my finances made me realize how important it is to practice budgeting and tracking your expenses.

3. DO PRIOR RESEARCH

Days before a job interview, I make it a point to do prior research regarding the company and the position that I am applying for. Make your way into the basics such as the company’s mission and vision as well as the position’s duties and objectives. Then, dig deep into the issue that is rarely spoken in our Asian culture – the salary. Be prepared to provide a salary range.

Spend a substantial amount of time in finding out the average salaries for similar jobs in your particular field. Websites such as salary.sg, hudson.sg, and payscale.com are helpful for this task.

4. EXPLORE DIFFERENT JOBS

Some people are so creative that they cannot be confined in a cubicle. If you are one of them, do not limit yourself to the 9-5 PM office jobs. Learn to explore other opportunities such as working online.

Saying that Internet changed our generation is an understatement. Personally, it influences my bread and butter. I am freelance writer that is able to choose from a variety of markets. And, you can too.

You can write for online or print media that go beyond magazines and newspapers. Setting up your own website or blog is also doable. Furthermore, book publishers are always searching for the next big thing. They are in need of people to write their marketing letters, announcements, e-books, and more. An ambitious scribe may dive in to freelancing and get its profits. Note that training, skill, and experience affects your rates.

5. REWARD YOURSELF RESPONSIBLY

According to studies by Behavioral Psychologists, positive reinforcements motivate people to work more. I support these studies as I savor rewards after a long month of work.

Rewarding yourself with a responsible amount of 5-8% of your monthly salary is recommended. Find interests outside of your job such as painting, dancing, yoga, or cooking to ease your daily stress. Also, rewarding yourself with a hobby is a good way to keep you motivated.

6. KEEP YOUR COOL

When faced with embarrassing money-related situations, it is best to keep your cool.

I was working as an administrative officer at a fitness studio a few years back. A rising Hollywood celebrity came to pay but her credit cards got declined. She was furious at me and gave her debit card instead. Thankfully, the transaction was successful.

You can handle this situation better by being calm. Talk to the personnel privately and arrange an alternative form of payment. Consider going to the nearest ATM to withdraw some cash.

Image Credits: pixabay.com

Image Credits: pixabay.com

Comment down below to share your own experiences with money.

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