Hi readers,
Sorry, I have been ironing out some glitches in my blog for the last few weeks.
During that time I have been thinking about some of the key factors in accumulating wealth. More so, the obstacles that prevent it. I pondered this while researching various Internet businesses for sale on EBay. In the end, persistence, has to be the catch cry of anyone who has ever succeeded in life or ever hopes to achieve something worthwhile. Many people who fail in any endeavour, fail at the first hurdle. We look at these wealthy entrepreneurs, such as Branson, and only seem to see their successes. I´m sure Sir Richard, would have a lot to tell you about mistakes and failures in his life, but I don´t think his mindset would allow him to see any of these has true failures.
A temporary setback, usually indicates two things: 1. Lack of desire, motivation or interest in the undertaking at hand and 2. Insufficient planning or a faulty plan. Of these two things, the former is responsible for the failure of most. The latter however, is simply a symptom that a better plan needs to be formulated, and is in fact, a valuable learning experience.
A lack of interest and a strong desire to be successful in any undertaking is the most important factor to consider here. If you lack true desire and interest in what you are doing you will simply not persist after the first set couple of setbacks. This is principally displayed through making excuses and passing the buck. Using Íf´statements ie Íf only I had the knowledge´or Íf only I were younger´ and countless other examples.
If this is your mindset, you need to change it or you will never get anywhere. If you are hoping to achieve in business, you have to find something you really believe in and have burning desire to achieve it. That will be the motivation you need to persist.
With this mindset,
Failure Is Not An Option.
until next time,
Park Namsu
Saturday, 18 October 2008
Friday, 3 October 2008
Saturday, 20 September 2008
Building Multiple Income Streams
Hi guys, How is the money making going?
As I have said before, it can be very hard to maintain a regular income while you are in the process of frequent travel or even, if you stay for slightly longer periods of time before moving on again. It is a constant strain on your bank balance as you are consistently forking out for costs that, if you were to stay put would not crop up. These might be direct expenses relating to travel, like airfare, taxes and freight costs. They could also be more indirect costs, like having to purchase new everyday household items (knives, frying pans, kettles).
Now, it is almost impossible not to collect some clutter if you stay anywhere for more than a couple of months. So, if you are a 'stick and move' traveller. Here are some tips to prevent wastage.
First up, when you rent new accommodation, try and have it as fully furnished as possible. Make a note of all the kitchen and household items included, or rather, anything that is missing. Mention any missing items you would like to be included to the agent or landlord before you sign anything and make them a condition of the contract. Some keen landlords may even include cleaning products and washing powder.
Next, before you buy stuff, consider whether you really need it or if you could borrow it from another source. Also try not to get too attached to any items or keep sakes, that are bigger than pocket sized. For things like shoes, find a favourite multi-purpose pair and try to keep them to a minimum (sorry ladies).
The same goes for clothes. The reality is, lots of the clothes you collect often don't get worn. If you are moving onto a warmer climate you won't need that knee length coat and coats a killer for excess baggage and awkward packing. So If you do buy it be prepared to part with it, or make plans in advance. Sell it, donate to charity or give it to a friend. If there is a possibility that you will be coming back in the foreseeable future, store it with relatives or friends in the hope of one day being reunited. However, I still believe the best option is to not make unnecessary purchases and not get attached in any way to material possessions while on the road.
Having said all this, if you are able to increase your income and number of income streams. These can bare the brunt of these extra travelling expenses. At the very least, having multiple passive income streams will help to alleviate the burden and anxiety associated with not having a regular 9 to 5 income.
This is a mantra that I have and will persistently repeat, because I believe it to be the basis for freedom. I mean freedom in more than just a financial sense. I mean, the freedom to let your feet stay itchy. I mean the freedom over your personal life and not being owned by any one person (or corporation).
So as I have said many times before, use your talents and natural abilities to turn your hobbies into professions. I 'm sure you've heard the saying, that the day you find a job you love, you stop working.
Definitely take advantage of the World Wide Web. The sooner you do this, the sooner you will start to reap the rewards. Be it through networking, advertising or building multiple passive income streams.
Finally, if you are going to spend your money, make it worthwhile. Spend it on your education and self-improvement. If you've always wanted to learn to play golf, don't go through your life saying something like, 'I've always wanted to learn, but lessons are so damn expensive'.
I believe this attitude is just a cop out. It is a fear of failure mentality. If you want to take golf lessons, do a weekend taster course before you book the club pro. If you love it and it feels natural, maybe you should book the club pro.
The point is, if you really want to do something, don't let lack of money be your excuse. You will find a way to get the money. If you are focused on that one thing and think positively, opportunities will present themselves and you will find it easier to attain the means for attaining your goals. Once again repeating myself, sacrifice something else in your life or make more income. It's that simple. Don't blame situations for not doing or even trying something. It's okay to give up too. If you try something and you don't like it, try something else.
It's your life.
That's all for today
Park Namsu.
As I have said before, it can be very hard to maintain a regular income while you are in the process of frequent travel or even, if you stay for slightly longer periods of time before moving on again. It is a constant strain on your bank balance as you are consistently forking out for costs that, if you were to stay put would not crop up. These might be direct expenses relating to travel, like airfare, taxes and freight costs. They could also be more indirect costs, like having to purchase new everyday household items (knives, frying pans, kettles).
Now, it is almost impossible not to collect some clutter if you stay anywhere for more than a couple of months. So, if you are a 'stick and move' traveller. Here are some tips to prevent wastage.
First up, when you rent new accommodation, try and have it as fully furnished as possible. Make a note of all the kitchen and household items included, or rather, anything that is missing. Mention any missing items you would like to be included to the agent or landlord before you sign anything and make them a condition of the contract. Some keen landlords may even include cleaning products and washing powder.
Next, before you buy stuff, consider whether you really need it or if you could borrow it from another source. Also try not to get too attached to any items or keep sakes, that are bigger than pocket sized. For things like shoes, find a favourite multi-purpose pair and try to keep them to a minimum (sorry ladies).
The same goes for clothes. The reality is, lots of the clothes you collect often don't get worn. If you are moving onto a warmer climate you won't need that knee length coat and coats a killer for excess baggage and awkward packing. So If you do buy it be prepared to part with it, or make plans in advance. Sell it, donate to charity or give it to a friend. If there is a possibility that you will be coming back in the foreseeable future, store it with relatives or friends in the hope of one day being reunited. However, I still believe the best option is to not make unnecessary purchases and not get attached in any way to material possessions while on the road.
Having said all this, if you are able to increase your income and number of income streams. These can bare the brunt of these extra travelling expenses. At the very least, having multiple passive income streams will help to alleviate the burden and anxiety associated with not having a regular 9 to 5 income.
This is a mantra that I have and will persistently repeat, because I believe it to be the basis for freedom. I mean freedom in more than just a financial sense. I mean, the freedom to let your feet stay itchy. I mean the freedom over your personal life and not being owned by any one person (or corporation).
So as I have said many times before, use your talents and natural abilities to turn your hobbies into professions. I 'm sure you've heard the saying, that the day you find a job you love, you stop working.
Definitely take advantage of the World Wide Web. The sooner you do this, the sooner you will start to reap the rewards. Be it through networking, advertising or building multiple passive income streams.
Finally, if you are going to spend your money, make it worthwhile. Spend it on your education and self-improvement. If you've always wanted to learn to play golf, don't go through your life saying something like, 'I've always wanted to learn, but lessons are so damn expensive'.
I believe this attitude is just a cop out. It is a fear of failure mentality. If you want to take golf lessons, do a weekend taster course before you book the club pro. If you love it and it feels natural, maybe you should book the club pro.
The point is, if you really want to do something, don't let lack of money be your excuse. You will find a way to get the money. If you are focused on that one thing and think positively, opportunities will present themselves and you will find it easier to attain the means for attaining your goals. Once again repeating myself, sacrifice something else in your life or make more income. It's that simple. Don't blame situations for not doing or even trying something. It's okay to give up too. If you try something and you don't like it, try something else.
It's your life.
That's all for today
Park Namsu.
Monday, 15 September 2008
Money For Travel
Hi folks,
okay , I've spent a fair amount of time rambling on about my philosophies of saving, creating passive income , and compound interest. Although I do fervently believe that these points strongly contribute to developing the ability to travel freely and at the very least maintain some cash reserves, I do admit I have been neglecting part of my blogs main focus.
So, today I would like to continue our discussion on how to keep money coming in while you are away from home and possibly moving on frequently. For today I will touch on each of the points and develop them separately in subsequent posts.
To begin with, we have to ascertain whether or not you will be in a particular place long enough to aim for a regular wage income or if you have a very limited amount of time in which to gain a few coins for travel.
Naturally, if you are in a country where you speak the mother tongue and intend to be there for some time, we will presume that you will follow the traditional methods of searching classifieds on the net and in newspapers and magazines and sending out a relevant CV.
The situation I would like to address today is when you are in a foreign speaking country and may not have access to traditional paths of employment and also, if you will only be spending a short time there.
Primarily, your most valuable asset is inside your skull. Your brain is the one thing that, if you lose everything, can get you back out of the gutter and on the road to recovery. This is because every great achievement has evolved from a single idea or a flash of inspiration.
Now, I'm not going to say that during a month in China your brain is going to have a burst of inspirational creativity that will vault you into the economic stratosphere. Nor do I want to discourage anyone from acting on a 'Eureka Moment'. The biggest dream killer of them all is apathy.
What I am suggesting is simply, if you want to make some cash easily, use those skills which you already have. If you are a talented crafts person, maybe you could put that into use somehow. If you are a talented musician, have a go at playing any way you can.
Some of you might say, 'but I don't have an instrument or any tools'. So, be creative. If you are staying in a hostel, try and find some work there to do. If you are staying in a private B and B, maybe they need some odd jobs or repairs done. Do a good job and you might get some cash or some other reward, like a free night or food.
You may also have special skills or abilities that you, yourself, don't really consider to be special but that others may find value in. It is your job to recognise such things and exploit them.
By far, the most simple and lucrative form of work for a native English speaker in a foreign country is teaching English. This is especially the case if you have any former teaching experience and/or a university degree. If you are spending more than three months a foreign speaking country, there are great prospects for picking up some well paid positions in schools that include accommodation and a completion bonus. You may even have a shot as a live in tutor which can include full board and pocket money for daily English classes.
I would recommend visiting websites such as thegumtree.com, tntmagazine.com and ESL websites to see what's on offer.
I
f you won't be staying long, there is still good opportunity for tutoring students privately. Put flyers up in universities and schools and advertise on local blogs and forums. This is especially the case if you have any level of proficiency in the language of the country you are visiting. Believe me, it makes things a hell of a lot easier to organise and teach lessons when you can speak in their mother tongue. However, if you only speak English, don't let it stop you. You may have to target your pupils more specifically. For example, more advanced level students or post grad.
The second most important tool, I believe, for keeping some cash flowing into your hands would be access to a laptop. I understand that many travellers simply don't have the means to purchase one or may see it as excess baggage, but trust me, it is an invaluable device.
The priced on descent laptops have plummeted in recent years just as their usefulness has skyrocketed.
Consider this. When you are in command of a laptop, you have your own personal storage unit, entertainment system, and these days, complete portable office, with phone and video conferencing, word processing, email access and business portal. No matter where you are in the world, as long as you can pick up a wireless signal, you can connect. You can deal with personal and business banking, keep in contact with friends and clients, attend meetings and also prepare and present professional reports and presentations. You can also keep tabs on your Internet business and websites to ensure that passive income is increasing. All from the comfort of your hostel, or 'insert generic coffee chain name here' sipping on a skinny triple mocha vanilla latte.
You will find this tool indispensable when planning classes or keeping records of materials for classes. If you think that carrying a 4kg laptop is too much extra luggage, compare that to hauling around text books, and hundreds of A4 worksheets in your backpack.
Oh, and just one last piece of advice. Please ditch those international phone cards. If you're not on Skype yet, get on it now. For the time being, calls from your computer to another are free and to landlines and even mobiles, the rates are preferential. Make sure that your parents know how to use it and they'll love you for it.
until next time,
Park Namsu
okay , I've spent a fair amount of time rambling on about my philosophies of saving, creating passive income , and compound interest. Although I do fervently believe that these points strongly contribute to developing the ability to travel freely and at the very least maintain some cash reserves, I do admit I have been neglecting part of my blogs main focus.
So, today I would like to continue our discussion on how to keep money coming in while you are away from home and possibly moving on frequently. For today I will touch on each of the points and develop them separately in subsequent posts.
To begin with, we have to ascertain whether or not you will be in a particular place long enough to aim for a regular wage income or if you have a very limited amount of time in which to gain a few coins for travel.
Naturally, if you are in a country where you speak the mother tongue and intend to be there for some time, we will presume that you will follow the traditional methods of searching classifieds on the net and in newspapers and magazines and sending out a relevant CV.
The situation I would like to address today is when you are in a foreign speaking country and may not have access to traditional paths of employment and also, if you will only be spending a short time there.
Primarily, your most valuable asset is inside your skull. Your brain is the one thing that, if you lose everything, can get you back out of the gutter and on the road to recovery. This is because every great achievement has evolved from a single idea or a flash of inspiration.
Now, I'm not going to say that during a month in China your brain is going to have a burst of inspirational creativity that will vault you into the economic stratosphere. Nor do I want to discourage anyone from acting on a 'Eureka Moment'. The biggest dream killer of them all is apathy.
What I am suggesting is simply, if you want to make some cash easily, use those skills which you already have. If you are a talented crafts person, maybe you could put that into use somehow. If you are a talented musician, have a go at playing any way you can.
Some of you might say, 'but I don't have an instrument or any tools'. So, be creative. If you are staying in a hostel, try and find some work there to do. If you are staying in a private B and B, maybe they need some odd jobs or repairs done. Do a good job and you might get some cash or some other reward, like a free night or food.
You may also have special skills or abilities that you, yourself, don't really consider to be special but that others may find value in. It is your job to recognise such things and exploit them.
By far, the most simple and lucrative form of work for a native English speaker in a foreign country is teaching English. This is especially the case if you have any former teaching experience and/or a university degree. If you are spending more than three months a foreign speaking country, there are great prospects for picking up some well paid positions in schools that include accommodation and a completion bonus. You may even have a shot as a live in tutor which can include full board and pocket money for daily English classes.
I would recommend visiting websites such as thegumtree.com, tntmagazine.com and ESL websites to see what's on offer.
I
f you won't be staying long, there is still good opportunity for tutoring students privately. Put flyers up in universities and schools and advertise on local blogs and forums. This is especially the case if you have any level of proficiency in the language of the country you are visiting. Believe me, it makes things a hell of a lot easier to organise and teach lessons when you can speak in their mother tongue. However, if you only speak English, don't let it stop you. You may have to target your pupils more specifically. For example, more advanced level students or post grad.
The second most important tool, I believe, for keeping some cash flowing into your hands would be access to a laptop. I understand that many travellers simply don't have the means to purchase one or may see it as excess baggage, but trust me, it is an invaluable device.
The priced on descent laptops have plummeted in recent years just as their usefulness has skyrocketed.
Consider this. When you are in command of a laptop, you have your own personal storage unit, entertainment system, and these days, complete portable office, with phone and video conferencing, word processing, email access and business portal. No matter where you are in the world, as long as you can pick up a wireless signal, you can connect. You can deal with personal and business banking, keep in contact with friends and clients, attend meetings and also prepare and present professional reports and presentations. You can also keep tabs on your Internet business and websites to ensure that passive income is increasing. All from the comfort of your hostel, or 'insert generic coffee chain name here' sipping on a skinny triple mocha vanilla latte.
You will find this tool indispensable when planning classes or keeping records of materials for classes. If you think that carrying a 4kg laptop is too much extra luggage, compare that to hauling around text books, and hundreds of A4 worksheets in your backpack.
Oh, and just one last piece of advice. Please ditch those international phone cards. If you're not on Skype yet, get on it now. For the time being, calls from your computer to another are free and to landlines and even mobiles, the rates are preferential. Make sure that your parents know how to use it and they'll love you for it.
until next time,
Park Namsu
Friday, 12 September 2008
Passive Income
Hey readers,
Just a quick note today.
I mentioned in my last post the importance of building up your assets as opposed to liabilities.
I think I need to clarify this point a little more. I don't mean to say that you should avoid purchasing luxuries at any cost. Of course, go ahead and buy that flat screen TV. What I am saying is that, depending on your current situation, you will have to prioritise accordingly. If you can justify a purchase, ie it fits into your budget and you don't have to go into debt to pay for it, don't feel guilty and don't regret it afterwards.
My main point is, that by focusing on attaining revenue earning assets, you can gradually build a substantial passive income. This will eventually give you the freedom to purchase liabilities and creature comforts with no extra exertion on your part.
The beauty of a passive income is that it is constantly working for you. You can earning money while you sleep. Yes, when you are starting out your passive income may seem insignificant. It might be in the form of few dollars from credit interest, or a trickle of money from a home based web-business. You may feel like it isn't even worth it. However, with perseverance, you can increase this amount exponentially. If you reinvest this seemingly meagre income wisely, the sky is the limit. You could transform those few monthly dollars into a few thousand dollars of income. For example from rental properties or businesses you own.
So, for starters, don't think it is all too hard and not worth it. If you never start anything you'll never achieve anything. The sooner the better. Do some research and find yourself a good, no fee, high interest yielding bank account. Consider closing any accounts that you don't use or changing banks if they are bombarding you with unnecessary charges. Often, you are paying fees for services and bells and whistles that you will never need or use.
Then go and try and find as many sources of passive income as you can. The more revenue sources you have, the less reliant you will be on any one of them.
Develop and expand these vehicles and you will well be on your way.
Last thing. I didn't say that acquiring and growing a passive income won't be hard work. You will spend time and probably a little bit of money in developing it. But in the end it is worth it.
Persevere.
Start small, but think big.
Park Namsu
Just a quick note today.
I mentioned in my last post the importance of building up your assets as opposed to liabilities.
I think I need to clarify this point a little more. I don't mean to say that you should avoid purchasing luxuries at any cost. Of course, go ahead and buy that flat screen TV. What I am saying is that, depending on your current situation, you will have to prioritise accordingly. If you can justify a purchase, ie it fits into your budget and you don't have to go into debt to pay for it, don't feel guilty and don't regret it afterwards.
My main point is, that by focusing on attaining revenue earning assets, you can gradually build a substantial passive income. This will eventually give you the freedom to purchase liabilities and creature comforts with no extra exertion on your part.
The beauty of a passive income is that it is constantly working for you. You can earning money while you sleep. Yes, when you are starting out your passive income may seem insignificant. It might be in the form of few dollars from credit interest, or a trickle of money from a home based web-business. You may feel like it isn't even worth it. However, with perseverance, you can increase this amount exponentially. If you reinvest this seemingly meagre income wisely, the sky is the limit. You could transform those few monthly dollars into a few thousand dollars of income. For example from rental properties or businesses you own.
So, for starters, don't think it is all too hard and not worth it. If you never start anything you'll never achieve anything. The sooner the better. Do some research and find yourself a good, no fee, high interest yielding bank account. Consider closing any accounts that you don't use or changing banks if they are bombarding you with unnecessary charges. Often, you are paying fees for services and bells and whistles that you will never need or use.
Then go and try and find as many sources of passive income as you can. The more revenue sources you have, the less reliant you will be on any one of them.
Develop and expand these vehicles and you will well be on your way.
Last thing. I didn't say that acquiring and growing a passive income won't be hard work. You will spend time and probably a little bit of money in developing it. But in the end it is worth it.
Persevere.
Start small, but think big.
Park Namsu
Wednesday, 10 September 2008
It takes sacrifice and discipline
Good day to you all.
Today I would like to respond to a comment received from my last post from Jim,
it read as follows:
Hi Namsu,
I dont know about what your sayin here it seems a kinda cut and dry to you. It seems your life msut be kinda simple. I got bills to pay and mouths to feed and there aint really much room for cutting back any more. I understand you say to be positive but its kinda hard to be positive when you have to to buy a tonne of stuff you cant afford.
I´ll keep reading and see if you got anything bright tosay.
Jim
Okay, I´ll admit, I don´t have kids to look after or huge financial commitments. However, there will always be something that we think is holding us back and preventing us from saving. We all need somewhere to live and something to eat. But, most of us have the choice of WHERE and HOW we live and WHAT and HOW we eat. What I mean by this is. You could choose to rent or buy a bigger house in a nicer part of town or you could settle for a smaller place in the sticks. Just as you may choose to eat out every night or you could shop home brand and cook at home.
This brings us to the topic of today.
In fact, I do think the plain facts are pretty cut and dry. The problem is that many people aren´t willing to make the sacrifices and lack the self-discipline to reach their goals. They lack the foresight to realise that their current situation could be temporary if they would stick to their guns and take control of their lives. THERE IS NO SUCCESS WITHOUT SACRIFICE.
Try this exercise. Think of some areas in your life where you may have weaknesses and find yourself spending more than necessary. For example, particular brands of foodstuff, makeup and hair products or alcohol. Make a list of as many of these that you can think of. Now, depending on your dedication to your goal list which of these you could substitute for a cheaper brand (particularly, beauty products most of them have exactly the same ingredients), or cut down or cut out completely. Now for motivation, quickly calculate how much you would save in a month if you put these steps into action. You may be surprised or even a little sickened by the result.
To put this theory into practice, I´ll describe briefly a chapter from my own life how this strategy got me onto the right path. When I was in my early twenties I went abroad, as many folks do, to live in London. I found an easy gardening job and I lived in a relatively cheap share house with six others. I drew up a budget of how much I planned to save and how much I would have when I left. Okay, this was a good start but like many good plans life gets in the way. I would make some progress in saving but then one big drunken weekend would wipe it all out. Although I did save a proportion of my wage it was nowhere near what I had planned and I squandered it.
This is because at that time my mindset was not geared to wealth acquisition. My mentality was, that I only had a set amount of time to earn a set amount of cash. My budgets were way too restrictive and I didn´t have the self-discipline to control my partying.
More recently, while travelling from Spain, I stopped in London again. I picked up the same job as before. However, this time I didn´t want to share a flat. I found a small (and I mean small) self contained flat in W2. I wasn´t earning much more than before and I still liked to budget but I had learned from previous mistakes. I had learned to make sacrifices in some parts of my life that would subsequently give me more control in other parts.
As a result, this time round I was living more comfortably and saving more than before. I still had a budget and savings goals but these were flexible to some degree. If I did decide to spend a bit extra one weekend on the town, I wouldn´t beat myself up over it. I would find other areas where I could make up the difference. For example an extra day of overtime or putting off a planned purchase.
The point is that until you really change your mindset and take control of your actions you will be fighting an uphill battle. If you find you are spending too much in certain areas, you have to ask yourself why and think how you could improve your situation if you made changes. Now I´ll suggest some strategies to help change your thinking and get you on a savings path.
1. Know and own your weakness: What I mean here is that if you can identify the problem you can rectify it. If you find you spend money when you are bored, ie you go to the shopping centre buy some shoes and have lunch, then find something positive to substitute that action. For me it´s exercises. Some people cringe at the thought, but go for a half hour run and you won´t be bored and you´ll have all these little endorphins running round your body making you feel great and thus stopping cravings. If you can´t run or it´s impractical, phone a friend watch a comedy (laughter also releases feel good endorphins.
2. Pay yourself first: You work hard for your money, so before you hand it to anyone else make sure you give yourself some first. I mentioned compound interest in an earlier posting. Pay yourself a percentage of your wage into this account and don´t think of it as cash at hand. This if for you and your own long-term security. I hear some of you say,´but I don´t have a percentage of my wage to spare!´. Well to that I say, ´pish posh´. Find it! Be creative! Find some areas of your life,as mentioned above, where you can redirect cash. or try the next step.
3. Make more money: It´s out there. If you are proactive you can find it. If you are running a business maybe you can offer other services for more revenue. Are you offering a really good service? Increase your charge rates. There are a myriad of ways to make some more money, just don´t spend money to them (not now anyway, we´ll do that later). Use anything you may have at hand or skills and talents that others may find value in. If you are on a set wage, have you considered asking for a raise? Draw up a list of your responsibilities and what you have done since joining your employer. If you have added real value to the business don´t be afraid to ask for what you´re worth. The worst they can say is no.
4. Focus on attaining Wealth-building Assets not liabilities: As I have said before, the key to getting anywhere with money is to have your money working for you and not the other way around. Things like televisions and jet skis are not assets. They depreciate in value and will ultimately cost you money. However, some liabilities are necessary as they can be used to create income, like your vehicle, computer or phone. Try to increase your total assets as much and as quickly as possible.
Finally, to wrap this up for today.
I want to say, it´s up to you to what extent you employ these savings techniques in your life. Only you can priorities your values. I am not suggesting for one moment that to be successful you have to live in a rat invested apartment with 20 students and eat baked beans everyday.
I´m simply stating that if you want to improve your current situation you must be disciplined and make some sort of sacrifice. Be that time in the pursuit of earning more (working some overtime on the weekend), favourite products or luxuries or simply opting to walk to work instead of driving. Also, I need to say that these strategies are largely pitched at people who feel they may have been left at the starting line in life and need to catch up. I don´t think life is a competition, but the reality is, we all only have a certain amount of time on this earth, so we must enjoy it, but with some pretty (really, let´s admit it) painless sacrifices and exercising a degree of self-control in your lives we could greatly improve the enjoyment of our future lives.
until next time
Park Namsu
Today I would like to respond to a comment received from my last post from Jim,
it read as follows:
Hi Namsu,
I dont know about what your sayin here it seems a kinda cut and dry to you. It seems your life msut be kinda simple. I got bills to pay and mouths to feed and there aint really much room for cutting back any more. I understand you say to be positive but its kinda hard to be positive when you have to to buy a tonne of stuff you cant afford.
I´ll keep reading and see if you got anything bright tosay.
Jim
Okay, I´ll admit, I don´t have kids to look after or huge financial commitments. However, there will always be something that we think is holding us back and preventing us from saving. We all need somewhere to live and something to eat. But, most of us have the choice of WHERE and HOW we live and WHAT and HOW we eat. What I mean by this is. You could choose to rent or buy a bigger house in a nicer part of town or you could settle for a smaller place in the sticks. Just as you may choose to eat out every night or you could shop home brand and cook at home.
This brings us to the topic of today.
In fact, I do think the plain facts are pretty cut and dry. The problem is that many people aren´t willing to make the sacrifices and lack the self-discipline to reach their goals. They lack the foresight to realise that their current situation could be temporary if they would stick to their guns and take control of their lives. THERE IS NO SUCCESS WITHOUT SACRIFICE.
Try this exercise. Think of some areas in your life where you may have weaknesses and find yourself spending more than necessary. For example, particular brands of foodstuff, makeup and hair products or alcohol. Make a list of as many of these that you can think of. Now, depending on your dedication to your goal list which of these you could substitute for a cheaper brand (particularly, beauty products most of them have exactly the same ingredients), or cut down or cut out completely. Now for motivation, quickly calculate how much you would save in a month if you put these steps into action. You may be surprised or even a little sickened by the result.
To put this theory into practice, I´ll describe briefly a chapter from my own life how this strategy got me onto the right path. When I was in my early twenties I went abroad, as many folks do, to live in London. I found an easy gardening job and I lived in a relatively cheap share house with six others. I drew up a budget of how much I planned to save and how much I would have when I left. Okay, this was a good start but like many good plans life gets in the way. I would make some progress in saving but then one big drunken weekend would wipe it all out. Although I did save a proportion of my wage it was nowhere near what I had planned and I squandered it.
This is because at that time my mindset was not geared to wealth acquisition. My mentality was, that I only had a set amount of time to earn a set amount of cash. My budgets were way too restrictive and I didn´t have the self-discipline to control my partying.
More recently, while travelling from Spain, I stopped in London again. I picked up the same job as before. However, this time I didn´t want to share a flat. I found a small (and I mean small) self contained flat in W2. I wasn´t earning much more than before and I still liked to budget but I had learned from previous mistakes. I had learned to make sacrifices in some parts of my life that would subsequently give me more control in other parts.
As a result, this time round I was living more comfortably and saving more than before. I still had a budget and savings goals but these were flexible to some degree. If I did decide to spend a bit extra one weekend on the town, I wouldn´t beat myself up over it. I would find other areas where I could make up the difference. For example an extra day of overtime or putting off a planned purchase.
The point is that until you really change your mindset and take control of your actions you will be fighting an uphill battle. If you find you are spending too much in certain areas, you have to ask yourself why and think how you could improve your situation if you made changes. Now I´ll suggest some strategies to help change your thinking and get you on a savings path.
1. Know and own your weakness: What I mean here is that if you can identify the problem you can rectify it. If you find you spend money when you are bored, ie you go to the shopping centre buy some shoes and have lunch, then find something positive to substitute that action. For me it´s exercises. Some people cringe at the thought, but go for a half hour run and you won´t be bored and you´ll have all these little endorphins running round your body making you feel great and thus stopping cravings. If you can´t run or it´s impractical, phone a friend watch a comedy (laughter also releases feel good endorphins.
2. Pay yourself first: You work hard for your money, so before you hand it to anyone else make sure you give yourself some first. I mentioned compound interest in an earlier posting. Pay yourself a percentage of your wage into this account and don´t think of it as cash at hand. This if for you and your own long-term security. I hear some of you say,´but I don´t have a percentage of my wage to spare!´. Well to that I say, ´pish posh´. Find it! Be creative! Find some areas of your life,as mentioned above, where you can redirect cash. or try the next step.
3. Make more money: It´s out there. If you are proactive you can find it. If you are running a business maybe you can offer other services for more revenue. Are you offering a really good service? Increase your charge rates. There are a myriad of ways to make some more money, just don´t spend money to them (not now anyway, we´ll do that later). Use anything you may have at hand or skills and talents that others may find value in. If you are on a set wage, have you considered asking for a raise? Draw up a list of your responsibilities and what you have done since joining your employer. If you have added real value to the business don´t be afraid to ask for what you´re worth. The worst they can say is no.
4. Focus on attaining Wealth-building Assets not liabilities: As I have said before, the key to getting anywhere with money is to have your money working for you and not the other way around. Things like televisions and jet skis are not assets. They depreciate in value and will ultimately cost you money. However, some liabilities are necessary as they can be used to create income, like your vehicle, computer or phone. Try to increase your total assets as much and as quickly as possible.
Finally, to wrap this up for today.
I want to say, it´s up to you to what extent you employ these savings techniques in your life. Only you can priorities your values. I am not suggesting for one moment that to be successful you have to live in a rat invested apartment with 20 students and eat baked beans everyday.
I´m simply stating that if you want to improve your current situation you must be disciplined and make some sort of sacrifice. Be that time in the pursuit of earning more (working some overtime on the weekend), favourite products or luxuries or simply opting to walk to work instead of driving. Also, I need to say that these strategies are largely pitched at people who feel they may have been left at the starting line in life and need to catch up. I don´t think life is a competition, but the reality is, we all only have a certain amount of time on this earth, so we must enjoy it, but with some pretty (really, let´s admit it) painless sacrifices and exercising a degree of self-control in your lives we could greatly improve the enjoyment of our future lives.
until next time
Park Namsu
Saturday, 6 September 2008
Self-sabotage in wealth accrual
Hi there folks.
I mentioned in my last post that I would like to discuss the topic of self-sabotage in trying to maintain a consistent savings schedule in the journey of wealth accrual. In the past I have battled with this demon repeatedly. I would be on my merry may saving my pennies every week and watching my bank balance grow then, suddenly I would hit this savings glass ceiling. I would reach a point in my savings and feel compelled to make a major purchase or use the money for some 'good' reason. Thus bringing me back to square one, feeling deflated, demoralised and desperate.
I'm sure many of you have found yourself in this situation. You are making progress in your savings but then 'thwack' like a bolt from the blue all your hard work is hit by some unexplained financial dilemma. Then you beat yourself up for a while thinking things like, 'well I really needed that new hi definition plasma' or 'How many times does your best friend get married?'
or the classic, 'Once I've got this (insert generic must have product) I will be happy, complete.'
Sound familiar? of course it does. Because this is they way we work as a society. We, as consumers, are compelled to purchase items that we perceive as bringing with them some kind of status. Be that social or sexual. This is clearly evident in the marketing of luxury brands.
What images do the names Luis Vuiton, or Armani evoke in your mind's eye? I would gamble visions of grandeur, luxury and success. The truth is,(get ready for this) ...they sell clothes. Pieces of cloth that we use to cover our sexy bits. That's it.
Of course we've been conditioned to believe that owning such goods give us a sense of importance and status. Which to some extent is true. Now, I'm a realist and I know all about the importance of presenting oneself and how others perceive us. The cold hard truth is, if you earn $800 a week and you spend $1000 a week on looking the part, you're a just a slave. You're working for the system.
My point is, worry about that stuff later. Don't go into debt for the privilege of owning a designer bag that won't be vogue in two months. You can't judge your own personal wealth by how others perceive you. You need to set your own personal goals and benchmarks. Don't feel guilty about purchasing high brand, quality goods, but you have to justify the purchase and take note of what you are getting out of the transaction.
This finally brings me to address the topic of this post. Self -sabotage.
This is a very complicated topic which probably deserves its own blog. However, I would like to cover some factors that I believe contribute to this phenomena. The most prominent being self worth and social conditioning.
I grew up in an average household. My father worked full time for the electric company, SEQUEB at the time, and my mother worked part time at the bank. I wouldn't say we were poor (which is a completely relative form of evaluation), but let's settle for lower, middle class. The bills got paid, but we didn't take big trips on vacations and we really held out till the last moment to get a VCR (before DVD in case you don't know).
Now I don't want to take anything away from my parents. They did the best they could and always provided for us as far as they could. The problem is , I was being guided by a poor perspective, one that was always blinkered by the fact that we were poor and that that's where we belonged. And finally this brings me back onto topic.
Many people, the world over, sabotage their financial future simply for the fact that they feel unworthy of attaining riches or success. They have grown up surrounded by advice such as:
'the only way to get ahead is work hard', or 'you can't do that, nobody in this family has ever achieved anything like that'. or 'There's no use trying that, a bigger company will kill you'
There are too many examples to quote. The crux is, you are not your family, your mother, your father or your current financial situation. However, you have been conditioned by all these factors to have feelings of fear and unworthiness of pursuing these goals.
It is vital that you break free of any guilt of negative feelings you have about accruing wealth, as these feelings are like a self-fulfilling prophecy. Leave these emotions at the door. Don't blame anyone or anything. Not your upbringing, your education, or your poor past decisions. You always have now to decide: I'm going to change my path. Focus on the positive and positive things will happen.
To wrap up this very long winded post (sincere apologies). I would like to suggest some simple techniques that will hopefully prevent you from sabotaging your road to wealth.
Numero uno: Do you really need it? I hope it's not an impulse buy that is risking your future financial success. Remember, in 6 months the same product will be retail for 30% less and there may even be a better model on the scene. Do you really need it.
Ask the question: Will I be richer or poorer if I proceed with this course of action?
Numero dos: Think positively. You deserve all the success that comes your way. Think about how you could help your parents and loved ones with wealth that will come with an attitude of appreciation. If you think positively and believe in yourself (no, this is not a Disney promo) anything is possible
Numero tres: This is an obvious one. Don't be a stupid dummy. Live within your means. Always remember your current situation is temporary. Be patient. avoid the credit cards and start working on building a financial buffer.
Thanks for reading guys,
and talk to you soon,
Park Namsu
I mentioned in my last post that I would like to discuss the topic of self-sabotage in trying to maintain a consistent savings schedule in the journey of wealth accrual. In the past I have battled with this demon repeatedly. I would be on my merry may saving my pennies every week and watching my bank balance grow then, suddenly I would hit this savings glass ceiling. I would reach a point in my savings and feel compelled to make a major purchase or use the money for some 'good' reason. Thus bringing me back to square one, feeling deflated, demoralised and desperate.
I'm sure many of you have found yourself in this situation. You are making progress in your savings but then 'thwack' like a bolt from the blue all your hard work is hit by some unexplained financial dilemma. Then you beat yourself up for a while thinking things like, 'well I really needed that new hi definition plasma' or 'How many times does your best friend get married?'
or the classic, 'Once I've got this (insert generic must have product) I will be happy, complete.'
Sound familiar? of course it does. Because this is they way we work as a society. We, as consumers, are compelled to purchase items that we perceive as bringing with them some kind of status. Be that social or sexual. This is clearly evident in the marketing of luxury brands.
What images do the names Luis Vuiton, or Armani evoke in your mind's eye? I would gamble visions of grandeur, luxury and success. The truth is,(get ready for this) ...they sell clothes. Pieces of cloth that we use to cover our sexy bits. That's it.
Of course we've been conditioned to believe that owning such goods give us a sense of importance and status. Which to some extent is true. Now, I'm a realist and I know all about the importance of presenting oneself and how others perceive us. The cold hard truth is, if you earn $800 a week and you spend $1000 a week on looking the part, you're a just a slave. You're working for the system.
My point is, worry about that stuff later. Don't go into debt for the privilege of owning a designer bag that won't be vogue in two months. You can't judge your own personal wealth by how others perceive you. You need to set your own personal goals and benchmarks. Don't feel guilty about purchasing high brand, quality goods, but you have to justify the purchase and take note of what you are getting out of the transaction.
This finally brings me to address the topic of this post. Self -sabotage.
This is a very complicated topic which probably deserves its own blog. However, I would like to cover some factors that I believe contribute to this phenomena. The most prominent being self worth and social conditioning.
I grew up in an average household. My father worked full time for the electric company, SEQUEB at the time, and my mother worked part time at the bank. I wouldn't say we were poor (which is a completely relative form of evaluation), but let's settle for lower, middle class. The bills got paid, but we didn't take big trips on vacations and we really held out till the last moment to get a VCR (before DVD in case you don't know).
Now I don't want to take anything away from my parents. They did the best they could and always provided for us as far as they could. The problem is , I was being guided by a poor perspective, one that was always blinkered by the fact that we were poor and that that's where we belonged. And finally this brings me back onto topic.
Many people, the world over, sabotage their financial future simply for the fact that they feel unworthy of attaining riches or success. They have grown up surrounded by advice such as:
'the only way to get ahead is work hard', or 'you can't do that, nobody in this family has ever achieved anything like that'. or 'There's no use trying that, a bigger company will kill you'
There are too many examples to quote. The crux is, you are not your family, your mother, your father or your current financial situation. However, you have been conditioned by all these factors to have feelings of fear and unworthiness of pursuing these goals.
It is vital that you break free of any guilt of negative feelings you have about accruing wealth, as these feelings are like a self-fulfilling prophecy. Leave these emotions at the door. Don't blame anyone or anything. Not your upbringing, your education, or your poor past decisions. You always have now to decide: I'm going to change my path. Focus on the positive and positive things will happen.
To wrap up this very long winded post (sincere apologies). I would like to suggest some simple techniques that will hopefully prevent you from sabotaging your road to wealth.
Numero uno: Do you really need it? I hope it's not an impulse buy that is risking your future financial success. Remember, in 6 months the same product will be retail for 30% less and there may even be a better model on the scene. Do you really need it.
Ask the question: Will I be richer or poorer if I proceed with this course of action?
Numero dos: Think positively. You deserve all the success that comes your way. Think about how you could help your parents and loved ones with wealth that will come with an attitude of appreciation. If you think positively and believe in yourself (no, this is not a Disney promo) anything is possible
Numero tres: This is an obvious one. Don't be a stupid dummy. Live within your means. Always remember your current situation is temporary. Be patient. avoid the credit cards and start working on building a financial buffer.
Thanks for reading guys,
and talk to you soon,
Park Namsu
Tuesday, 2 September 2008
Compound interest, what a blessing
My topic today is about high interest bearing accounts. I agree with Einstein when he described compound interest as the eighth wonder of the world. There is something really rewarding about logging into your online account at the end of the month and seeing how much your bank/credit union has paid you simply for keeping your money there.
I would go as far as to say, that I consider having a lump sum in a high interest bearing account is one of the cornerstones for building personal wealth or for saving for any important investment.
It is important to not see this money as available funds, because as long as it is there safe and sound, it is working for you and earning you money. Personally I recommend setting a baseline amount that you will always have in this account and to gradually increase this amount as your interest builds. Most of these accounts do have a minimum initial deposit balance anyway of perhaps 1000 to 5000 in order to set up the account. So, for example, you open your account with an initial minimum deposit of $2000. So of course your baseline amount is $2000. However, you have been saving some cash overseas and decide to move on and you get a large payout, a percentage of which you decide to dedicate to your savings. Let's say you add another $5000 to this account. You now have a balance of $7000 earning between 6-8.5% interest per month. It is at this time that you re-evaluate your baseline amount. This is a personal decision and it depends on your current situation, ultimate savings goals and also knowledge of oneself (did you over extend and may need to withdraw $1000 next month?). but the key is to always make this baseline higher as your balance grows.
Once again, it is paramount that you separate this money and not consider it to be cash at hand. If you find this too difficult you may have to place self imposed controls on access to the funds, this may provide sufficient time for the craving of an impulse purchase to pass.
You may find that once you have achieved a certain amount of monthly interest income you may not be so tempted to buy on impulse something that is just going to depreciate and be superseded anyway.
The other crucial factor when considering these accounts are fees and the interest rate.
It is really important to shop around and find the right account for you. You may see an offer of 8% per annum and think 'super' only to find out that the account is charged a monthly rate of $12 as well as $5 per transaction. Read the fine print and also look for monthly fee free accounts or ones that stop charging fees after a certain balance value. It may be worth checking out your current banking society to see if they offer such accounts in tandem with your daily account, which you may already being paid fees on. So basically you have to make sure that the juice is worth the squeeze. The highest rate isn't always the best if you're being charged an arm and a leg to give them your hard earned cash. $5 a month might not seem a lot when you are earning $1000 per annum in interest but it is still better to avoid it if at all possible.
That's all for today. I would like to delve into this topic further in the near future and I will also be confronting the topic of self-sabotage in wealth accrual.
Until next time, happy saving.
I would go as far as to say, that I consider having a lump sum in a high interest bearing account is one of the cornerstones for building personal wealth or for saving for any important investment.
It is important to not see this money as available funds, because as long as it is there safe and sound, it is working for you and earning you money. Personally I recommend setting a baseline amount that you will always have in this account and to gradually increase this amount as your interest builds. Most of these accounts do have a minimum initial deposit balance anyway of perhaps 1000 to 5000 in order to set up the account. So, for example, you open your account with an initial minimum deposit of $2000. So of course your baseline amount is $2000. However, you have been saving some cash overseas and decide to move on and you get a large payout, a percentage of which you decide to dedicate to your savings. Let's say you add another $5000 to this account. You now have a balance of $7000 earning between 6-8.5% interest per month. It is at this time that you re-evaluate your baseline amount. This is a personal decision and it depends on your current situation, ultimate savings goals and also knowledge of oneself (did you over extend and may need to withdraw $1000 next month?). but the key is to always make this baseline higher as your balance grows.
Once again, it is paramount that you separate this money and not consider it to be cash at hand. If you find this too difficult you may have to place self imposed controls on access to the funds, this may provide sufficient time for the craving of an impulse purchase to pass.
You may find that once you have achieved a certain amount of monthly interest income you may not be so tempted to buy on impulse something that is just going to depreciate and be superseded anyway.
The other crucial factor when considering these accounts are fees and the interest rate.
It is really important to shop around and find the right account for you. You may see an offer of 8% per annum and think 'super' only to find out that the account is charged a monthly rate of $12 as well as $5 per transaction. Read the fine print and also look for monthly fee free accounts or ones that stop charging fees after a certain balance value. It may be worth checking out your current banking society to see if they offer such accounts in tandem with your daily account, which you may already being paid fees on. So basically you have to make sure that the juice is worth the squeeze. The highest rate isn't always the best if you're being charged an arm and a leg to give them your hard earned cash. $5 a month might not seem a lot when you are earning $1000 per annum in interest but it is still better to avoid it if at all possible.
That's all for today. I would like to delve into this topic further in the near future and I will also be confronting the topic of self-sabotage in wealth accrual.
Until next time, happy saving.
Friday, 29 August 2008
I don´t know about you, but as a regular traveller I have often fought with the conundrum of maintaining an income and at the very least holding onto my savings while I´m on the road, often between jobs.
I have, throughout the years, found that there are a number of ways to save on costs and also make some pocket money on the side when my regular employment may be cast into limbo.
I hope to help others out there who may be struggling with debt or trying to save for that elusive deposit, while at the same time trying to live their dreams.
I have, throughout the years, found that there are a number of ways to save on costs and also make some pocket money on the side when my regular employment may be cast into limbo.
I hope to help others out there who may be struggling with debt or trying to save for that elusive deposit, while at the same time trying to live their dreams.
Subscribe to:
Comments (Atom)
Posts
