Tuesday, August 4, 2009

EXPLOSIVE ENCOUNTER: Millionaire's Code!

Last Saturday, my boss asked Shiela and I to attend a seminar titled “Breaking the Millionaire Code!” 
Organized by Maximas Group Pte Ltd and with Thomas Mathew, MBA (F.S) as the speaker, the talk aims to educate especially the Bruneians on getting financial freedom despite the economic slowdown or recession shaking the world.

Apart from the piercing short video presentations, some infotainment games and the lively discussion of the speaker, the talk was insightful and effective in pointing what are the keys on how one individual could possibly be financially stable. The answer? Well, it's having right financial planning.

Now, I would like to share to you the interesting points Mr. Mathew shared to us.

First,  element profiling is important in determining ones goals and succeeding on it. As mentioned, there are four elements with each has a unique representation of nature- the earth, the wind, the fire, and the water. 

Based on the answer sheet distributed to us to determine our element profile, I am an “Earth” kind which means I’m methodical and analytical. Just for your info, the wind is more known as speculators, water as transparent and emotional, and the fire as being aggressive and uses money smartly.

Second, the discussion on income allocation piqued my interest. Admit it or not, at our age, we tend to be “sometimes” irresponsible in handling our money. We get easily attracted by the different commodities (especially gadgets and all those yuppie stuff) out there. End up, we don’t get enough savings. Hence, the talk’s tackling on income allocation was very current. 

According to Mr. Mathew, income allocation should be divided into Mortgage, Savings and Investments and Personal Expenses. Here’s the division: 20% should go to Mortgage, 30% on Savings and Investments, while 50% goes to Personal Expenses. Coolness, right?

Third, I just realized during the talk that it is very true that we should ‘LIVE WITHIN OUR MEANS AND NOT ABOVE OUR MEANS.” This makes sense, Big time! So, for those "creditcard" holders, we better control swiping! LOL!

Fourth, on our way to financial freedom, we should bear in mind one formula: H + S + IGA. This means, Housing plus Savings plus Income Generating Asset Earning. At this point, we should get a house, save and invest, plus create an Income Generating Asset such as having a small business.

Lastly, I’m moved with the 8 steps toward a winning financial freedom. (1) Establish your Time Line, (2) Know your dominant investing motives, (3) Establish your current Asset Position, (4) Strategize your Approach, (5) Strategize a suitable plan that can withstand shock, (6) Execute the plan in phases, (7) Establish a witness program, and (8) Establish a six month review.

Nevertheless, despite the recession, true enough, we should set our goal, watch out for our expenses, and more importantly, be positive in spite of taking risks on bonds, shares, loans, and a lot more.

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” – Mr. Thomas Mathew

No comments:

Post a Comment