The First Step ..... Just Do It !

I cannot claim that I am financially free yet and can start enjoying watching the sun setting in the evening everyday while I'm sipping fresh, cool pineapple juice on a ship on a cruise to somewhere.

But I'm working on it and believe it will happen one day in my life (I mean the financially free part, I have no intention to become a sailor yet.)

A few months back, a friend asked something about money and investment.

I said to him, you may think it is impossible, but the reality is that if you save and invest the saving wisely you'll be able to be financially free as early as 10 years.

Then, you will ask, how can that be?

First, you have to know that there is a relationship between saving and becoming wealthy and financially free, but in life, saving hard for most people to do.

Why?

- Saving is hard when your neighbour bought a new car
- Saving is hard when your siblings is driving their newly bought car
- Saving is hard when your in-laws kept repeating when you are going to change to a newer car.
- Saving is hard when your father casually said, don't you want to buy that Mercedes.
- Saving is hard when there are so many fine things and they made it seem a privilege to have it.

The latest model of Mercedes, BMW, Honda, and all the fashionable labels - Gucci, Ralph Laurent, Estee Lauder and Nike, got to have them all.

Finally these leads to unnecessary debt and things that you find you may not need after all.

While, in the mean time helping to enrich, first those must have (personally I would prefer them as nice to have) things manufacturer, its associates, next the sellers and lest I forget the ever willing credit card pusher.

You see, when I say helping to enrich its associate, you can become one. Which was discussed more in detail by Peter Lynch in his book One Up On Wall Street.

Saving needs strong will power. You need to find and know why you must save.

If you save, that will be the first step towards controlling your finance and will lead you to your financial freedom.

You can check this yourself. Ask those people who became wealthy and continue to be one, and then read books on personal finance.

That is the wisdom from the past and will continue long to be, after you and I are mere dust.

Why? Simply because if you want to be wealthy, you must have the money to invest and it is much, much healthy to invest with your own money that you saved.

Two books that helped to mold my my perspective and paradigm of saving are these two books, The Millionaire Next Door written by Stanley and Danko and The Richest Man In Babylon by George S. Clason.

You will gain much, if you read and promise to yourself to follow the advices sprinkle through out those three books.

Categories: Saving, Wealthy, Finance, Investing, Life

Learning To Win

I am thanking these people which I learnt much from - Warren Buffet, Benjamin Graham, Peter Lynch, John Neff, Philip A. Fisher and a few others.

Actually from readings articles and books about them and devising ways to use their advices I've made some money for the past 6 years from the stock market. By the way that is much, much better than the 6 years before that.

While most people around me were talking about stock tips, if the market is going up, or whether the market is going down, chasing counters or declaring Kuala Lumpur Stock Exchange (KLSE) is the place to lose big money.

I slowly and steadily accumulate stocks which through my study, I believe has a good business potential. Definately I also sold some of them when the time arrive.

In 2000 when I started to use good investment techniques I was not that much knowledgeable compared to now, so I still haven't made it very good yet.

But when the market is good, my total stock investment value is reasonably good, and when the stock market is down. I'm not that worried, I still sleep soundly at night, because of the way I choose my stock, I'm not so worried about their price.

Just think like this, if you are living in tornado prone area, you can sleep well if you're inside an underground basement, but not if you are staying on the ground and only protected by layers of nailed together wood planks. You would be looking and looking and looking outside if the twisters is coming your way.

So, invest using those techniques told by the proven experts. I think in a few years after I have clear all the dogs in my portfolio I might be able to enjoy better return.

Last week I sold Air Asia shares and got some small profit. It is the most profitable and the biggest LCC in Asia, which models itself according to Ryanair in Europe.

In Malaysia we can either choose MAS (the national airline) or Air Asia. In my opinion, Air Asia future is better than MAS.

When you want to get a good company, look also into it's cost cutting efforts. It is one of the important yardsticks that must be use to become a well informed investor. Air Asia cut cost vigorously. Another company that comes to my mind is IOI Corp, the lowest cost palm oil producer in Malaysia. Yet another one is YTL Corp, it's CEO claimed to have built ERL (Express Rail Link) tracks connceting KLIA (one of Malaysia's International Airport)to KL Sentral (ERL's last station in Kuala Lumpur) in record time and at a record cost (lowest.)

Now back to those investment experts, when I go through the books about those men, their advises is simple and not hard to follow. Except for Philip Fisher "Scutlebutt" method which is not that easy to imitate.

Currently doing online business is a bit different, so many advices from so many expert and non-expert alike.

After a few months now, I realise that making lots of money through the net is not meant to be easy. It is hard work.

It is like saving money, you do it bit by bit, small amount at one time. When people talk about making tons of money in a short of time, gambler, gambling and those illegal money lender comes to my mind. In Malaysia we have a problem with illegal money lender.

They are called "Along" here. Meaning the oldest brother.

Don't get involve with Along, that is what I concluded after reading some of the stories about them and their borrower.

They are called the oldest brother, but they are not born in the same family with the borrower and have less mercy.

Categories: Malaysia, Investment, Stock, Klse, Tips

Challenging Moments (1)

In the journey of our lifetime. Deemed to be those moments when we stood in silence. Dreams are still dim. Themes we hold loosen their gleams. Hence we look back to the past distance. Concerned if we are heading to the right end.

Times gone look different. Surrounding now is uncommon. Strange emotions, crashing in waves and swollen. Remained incessant until you fixate your aim.

Categories: poetry, words, verse, motivation