Back to Basics

I am wondering does anyone know what does "Back to Basics" means. I come across a topic posted by Imsavvy on facebook with the above topic.

Its interesting to know that not all are aware of the importance of saving. That is the most basic things to do in personal financial. Without saving, you will not be able to make your money work for u, will not have money during emergency and will have to keep working hard for the money. Is that what u want in life?

If the answer is "NO", then start to save NOW.

The next question will be, how to save? If u have read my older post on "Saving", you will get the answer. But I will still say it here. Saving is money u put aside before your expenses. That means u need to put at least 10% to 20% of your salary aside as saving before you start to spend on your expenses. How to do this when my expenses is the same amount as my salary?

You need to go thru your expenses and cut those that is not a necessity. Eg. SCV, 2nd mobile line, 2nd internet line, going to restaurant for meal, turning on aircon to cool room 30 mins before sleep, turning on water heater 30mins before bathing, etc...

Plan your expenses so that u can save 10% to 20% every month, and NOT pay your expenses then the rest will be your saving.

How to make your money grow in the shortest time frame?

I just received a comments saying this: "How can your $1 make into $10 and in the shortest time frame?"

In order to do that, you must invest in something that give u 1000% return or sell an $1 item for 1000% profit.

But so far the most powerful investment instrument I have ever come across is compound interest. That is using the principal amount to earn interest and after that both the principal amount and the interest amount will earn you interest.

Example:

$1000 x 5% = $50

$1050 x 5% = $1102.50 and so on...

on the 15 years, the amount will be $2079.

Using the rule of 72, you will need 14.4 years to double your principal amount.

Pls give comments if you have better ways to make your money work hard for you.

Credit Card Debt Interest.

Anyone know what is the interest charged by the credit card company when you don't pay in full for the month bill? In Singapore, it 24% per annum.

That means if you owed them $1000 after paying the min amt, you will have to pay them a interest $19.72. It going to compound till you pay off in full. Call the credit card company up and you will get the formula, as not all company will use the same formula.

So pls use the credit card wisely. Don't spend on things you can't afford and thinking that you can sign and pay by using next month salary.

Credit Card Debt

I have talked about this topic in one of my post but still I have friends who still having credit card debt.

Why is this still happening? The only reason I can think of is that this friend of mine doesn't have self-discipline and self-control.

He did clear the credit card debt once but due to him having at least two credit cards, after clearing the temptation came back and he couldn't resist it.

So how can this friend of mine clear this credit card debt and not having it again?

The only way out is to terminate all the credit card, since he doesn't have self-discipline and self-control, then do a debt consolidation. Look for a financial company and talk to them about your problem. They will be able to advise you according.

Alternatively, leave me a comment and I try my best to help.

4 Steps to Financial Freedom By Sean Toh

Fours Steps To Financial Freedom

Step 1 - The road to financial freedom is to have great health so that you are in good shape to learn.

Step 2 - An open mindset to start learning and practicing what you have learned.

Step 3 - Investing your time in your financial & health education so that you are in control of your life to create wealth to enjoy a better life.

Step 4 - Enjoy the wealth that you have created because you have been taking care of your health.

Click here to find out how you can do it with the above 4 Steps to Financial Freedom