2nd Day of My Paycheck

Today is my second day of my paycheck but I found out that my bank account only left less than 40% after deducting all my daily and monthly expenses. How about you?

Happiest day of the month!!

How much money left in your account after deducting your entire monthly expenses? How many of you left nothing but continue to hope for future paycheck? How many of you continue to leverage your credit cards to maintain your current life style which might be more costly than you expected? How many of you already dreaming and expecting year end bonus which might not come true?

Of course I have “no” exclusive right to know where and how you should spend your money. But bear in mind, whatever expenses your commit today it will definitely affecting your future financial health. Last year I get to know one of the local bank branch managers who earn handsome monthly income but left nothing ever since he owe credit cards amounted to RM200K. When he going to settled all his credit cards? I have no idea when but base on calculation he need extra bonuses and few part time jobs to stop the pain.

So my question to you, are you leveraging your credit facilities to build more wealth or to sustain your current lifestyle? For me leverage against the future appreciation is definitely better than leverage your current consumerism pleasure which provide you with short the enjoyment but long term financial pain.

Looking into my own portfolio, despite having low bank balance every month my property portfolios continue to generate monthly rental income and enjoying steady capital appreciation. Not only that I try to maintain low expenses especially on electrical and IT gadgets, traveling and expensive food which will eaten my capital outlay for my future investment. Are you practicing the same? In other words “live below your means”. There is new book wrote by Thomas J Stanley which I highly recommended you to read. The title is “Stop Acting Rich…and start living like real millionaire”. This is where you know where, when, how and why ‘the rich’ continue to be rich despite economy good or bad.

In general, the rules of 80/20 never change. 80% or more of the peoples still continue to enjoy their lifestyle above their earning capability just to impress their surrounding people how well they are in their financial which in actual fact they are not better off. Only 20% or I would rather say less than this percentage are “delaying” their pleasure for their future. Yes only ‘the rich’ continue to leverage their money in the property since it’s the only proven way to be inflationary proof tools. You also have to do the same thing do be successful like them. You need to continuously reducing your monthly expenses while increase your savings. Then constantly look for great deal with fantastic rental yield and high capital appreciation. I bet if you continuously do it everyday, soon you will join the millionaires club.

Are you still looking for cheaper property especially places like Damai, Luyang, Likas, Kingfisher, Lintas and etc? I think the possibilities are very slim since our costing has raised too much compare to previous years. This morning I read about cement prices at Gaza (war countries), per 50kg is selling for RM 120 compare to ours which is around RM18 per bag. That’s equivalent to 85% cheaper!! My dear friend, with further rise of raw materials cost, labour cost, land cost and etc, this will positively push our overall property values to all time high. Despite all the above reason, I believe still a lot of people still doubt over the current property prices but please bear in mind, “waiting is a cost”.   

Happy Father’s day & Happy Investing.

You cannot Grow Land…CK Wong & MY DAD

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Tagged as: capital appreciation, Credit, Expenses, Liability, Live below your means, Paycheck, Portfolio, Steady rental, Wealth