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Reading Dave Ramsey’s ‘Total Money Makeover’has got me thinking to readjust my financial goals. Dave puts his babysteps in such a logical and systematic way that I would have to totally be in agreement with him. I’ve decided, that if I want to achieve my goals of becoming financially free, I would have to make some radical changes. Let’s go through the first few baby steps:

 Baby Step 1: Put aside $1000 in liquidated form as emergency fund. - Considered done!

Baby Step 2: Debt snowball. Do this by first listing down all your debts (except home loan)from least to most. Then pay minimum on all (get current with your payments) but pay max on the first debt on your list (the one with least amount). According to Dave, this helps get the momentum going as well as psyches you up as you get to cross out the little debts faster then you would the big ones. After paying off the first debt, transfer what you would be paying on the first to the second (while still adding the minimum payment on the second to total with the first) and so on. - This idea has gotten me very excited. It makes so much sense too! By the time you get to the bottom of the list, you’d have a snowball of extra funds!! I only have 3 outstanding debts on mine. The first one I’ll be able to pay off this month. The second and third by the next!!

Baby Step 3: Put aside 3-6 months worth of income (or expenses if you can live on much less than your income) for the real emergency funding  - tough one… but will be able to get 3 months for a start.

Baby Step 4: Put aside 15% of your total gross income for retirement fund - when will I reach step 4?

Now, the thing is I have another goal in mind which I have to take into account. The goal of buying our ‘home on the ground’ this coming June. Dave says baby step 3(b) is save for home downpayment - after having at least 3 months income saved. To make way for that, I am thinking a few sacrifices have to be made. Possibly, in terms of this Internet business. It’s not that I don’t have faith in it anymore. Dave describes it in form of a river being clogged by logs (logs that you put afloat on the river to get to another destination, say the wood processing area down the river). You can’t get the logs through when too many logs are downstream and get tangled with each other. To unclog, you’d have to blast some logs up even though it means losing money on blasted logs just to get the flow going.

I don’t know whether you got that. But that’s what I’m gonna have to do. Sacrifice now for the better of tomorrow. So by next year, you may or may not see me on this current site. I may revert to a free blog if I still feel like blogging (but I love writing!!). By next month, I may or may not still be with Success University. I’m still trying to decide.

I love the blogosphere still. All the interesting, quality and new infos that I can get. But there are ofcourse other ways for me to contribute back. I shall be thinking about that.

Meanwhile, I’m sticking to reevaluating my finance. I have a nearly zero balance budget this month!! - yay!! Which means I’ll be cutting up one of my credit card by next month and paying by cash or debit card. I’ll only spend on the funds available and not borrow to spend! I absolutely love that!!

Goals I still want to pursue:

1. Buy new home this June - sell old.

2. Further my masters degree in psychology in New Zealand (?)!!

3. Extra income? - book project

Tags: Financial Management by Me Rina
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Yesterday in my post, I questioned whether being in a network marketing business such as Success University puts me in the B quadrant. Well today having read through more chapters Rich Dad’s Cashflow Quadrant, I can confidently answer my own question with a YES!

To quote Robert Kiyosaki, “..I endorse any network marketing organization that is first committed to developing you as a human being, more than developing you into a salesperson.” He goes on to saying that he would seek network marketing organizations that:

1. have successful track records, distribution system and compensation plan(check - SU, 3 years in operation with more that 70,000 enrollment worldwide, easy to follow system, complan that pays infinite levels deep);

2. have business opportunity you can succeed with and share with others (SU leaders guide you in your business so that you can become successful and share it with others);

3. have on-going long-term educational programs to develop you as a human being(SU’s product IS personal development! Plus yearly world tours the last one being held in Australia) ;

4. have strong mentor program (I’m happy to say I’ve found my mentor and am sharpening my skills to become a better mentor to my partners); and

5. have people you respect and enjoy being with (positive people with vibrance that just affects you - eg. Matt Morris, Johnny Wimbrey, Daegen Smith, Jaz Lai, Zamri Nanyan).

Alright! Without realising, I’ve actually made it to the B Quadrant!! I definitely have to put more focus into this area during any spare time I have. Which reminds me, I have yet to finish reading and applying the techniques taught in Daegan and Zamri’s Ultimate Blueprint of Internet MLM Success(reading up on personal finance have caused me to go abit offtrack although absolutely necessary).

In between working on my day job and Success Uni, I shall continue to the next chapter of the Cashflow Quadrant which covers my absolute current topic of interest - investment

Tags: Books, Financial Management, Success University, Wealth Creation by Me Rina
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I recently bought three books using MPH vouchers I redeemed from my credit card reward program. Those books are: Rich Dad’s Cashflow Quadrant (Robert Kiyosaki), The One Minute Millionaire (Mark Victor Hansen & Robert Allen), and How to Become a Property Millionaire (Azizi Ali). At first I thought of starting with the One Minute Millionaire but due to small printing (my fault for not opening the sealed book before purchasing) I was a bit put off and chose Rich Dad’s instead. A very easy read. The ideas laid out are simple but it really gets me thinking. I’ve been wanting to play the cashflow game for quite some time. They have a ‘millionaire’s club’ nearby our place where you pay a small fee to play this game. Having read a quater of the actual book, I now have a rough idea about what to expect from the game and the lesson’s I’ll be able to learn from it.

Basically the cashflow quadrant shows us just where our cash is coming from - left side consists of being an employee (E) and being self-employed (S), the right side consists of business (B) and investment (I). Simply said, according to Rich Dad, to become rich your cash must come from the right side of the quadrant (business or investment or both). Because the majority of us are on the left side, this book shows us the steps to take to get to the other side of the quadrant even while still being able to operate from the left. I hope that makes sense.

I am currently in the E quadrant. I hope to be able to also get into the I quadrant soon. And eventually the B quadrant. People in the S quadrant are thought to have the toughest time. Being self-employed means that you are working in your own business.It’s means that you are your own boss. But it also means that you play multiple roles as a manager, marketer, accountant, etc. It’s pretty much a one man show. Sure you may be driven by passion at doing what you truly love at first. But with being self-employed your income depends on how hard you work. When you slow down or decide to take a break, your business suffers.

People in the B quadrant on the other hand create an efficient system that will allow other people to work the system for them. The beauty in creating a system that’s run by others is that you get to take time off and return to find your business further blossoming and making more profits. In the I quadrant you make profit too by making money work hard for you. Both the I and B quadrant ofcourse requires you to have good financial knowledge - something that are not taught in schools.

It is also very much possible for an E to also be an I to acquire financial freedom. You need to have investment knowledge for that. So for me, that’s what I’m trying to do. Working at learning whatever I can to in this area to become financially free.

I’ve been thinking about whether joining Success University makes me a B person. SU definitely has a system (that’s already being laid out for you). But are the founder of SU the only ones in the B quadrant (since they’re the one who came up with the system)? Or are they, through the system also helping others become a B by adapting their system and making financial gains through it? I have to ask Zamri Nanyan about this. Hopefully he can drop by my blog anytime soon.

Tags: Books, Financial Management, Personal Development, Wealth Creation by Me Rina
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I must really thank Fathersez for providing the link to a very well written article on the above topic by Lynnae of beingfrugal.com. The article really hit a spot. It’s something I wish I myself could convey to my husband. 

Simply put, women just want to feel and be loved, wanted and cared for. Regardless of who does what in the household, being appreciated for it matters alot. A hug at the end of the day or a shoulder rub before sleep or even some help in the kitchen is worth alot more than occasional expensive gifts. And women really just want to splurge on stuff that are important to them regardless of what men think. But when our splurge is damaging to our finance and thus relationship, then step in and let us know. We women love leadership quality in our men.

Tags: Expert Articles, Financial Management by Me Rina
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Blogging-Ads held a ‘one heck of a giveaway contest’ early last month and which just ended recently. Guess what? I won!! I still can’t believe it (you might want to check out their website for prize details and to enter more similar contests in the future)! To Mike Huang of blogging-ads, thank you so much again!! You’re doing so much to help new bloggers get the necessary exposure. I totally respect you and admire you for that:)

So far I’ve won 3 contests this year (online and offline) and it’s only the beginning:) May not seem like much. Still I feel truly blessed!

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Other than that, let’s just say I’ve made a few alterations in my goals of owning my dream home. I have a second more achievable dream home now. It’s located much closer and I’ll actually be able to purchase it within this year (possibly towards the end)! It’s not as ambitious as my first dream home but the location is more strategic (golden triangle - near place of work, relatives, city, shopping centres, medical centres etc.), great neighbourhood, modern design, gated community, with beautiful landscape in the making (parks, jogging tracks - hubby’s fave). Isn’t that great!?

As for pursuing an MBA, I’ve recently requested for brochures from a University in London which looks like the best option for now. I still have to sit for the GMAT I think. Have to find out more about this from those in the know.

Work wise, I shall be seeing an increase in income by the end of this month (or possibly before Chinese New Year). Hopefully the same will apply to my online income.

I’ve also started reading Personal Money (this month being my second purchase - I may have considered subscribing if I hadn’t already subscribed to Forbes Asia), a finance magazine which was recommended by KCLau. This month’s issue covers a few topics of my personal interest namingly - selling your home yourself, investing abroad and on buying unit trusts.

Alright, that’s all the update for today! Catch ya later:)

Tags: Financial Management, Gifts/Competitions, Personal Development by Me Rina
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I found out from Fathersez that Mrs. Micah is holding a PF Carnival. I’m putting the link here so that others can have fun visiting it too and benefit from it in return. So here’s the link: www.mrsmicah.com

Let’s all get on the right track to improving our PF!!

I particularly like one article from the carnival: The Most Important Question You Could Ever Ask About Money by Paula of Queercents.com.

Paula suggests we delve into our personal values in relations to money. She then asks us to refine these values to see what lies behind it. Only after discovering our core value can we create our goals based on it.

So if I value acceptance, does that mean I want or need more money to feel accepted? Why do I value acceptance? To be loved/liked. Why do I value being loved/liked? To be able to do what I love and having others accept it. Well, that just all goes back to my core value: acceptance.

Let’s take it a few steps further. Who do I need acceptance from? My parents and my husband. In that case, I guess it simply means that whatever I do in relations to money (obtaining financial freedom) is so that my parents and husband will accept and respect my ideal way of life. Which means that I want to have more freedom in choosing my path in life. In other words, I actually value freedom!! Freedom to do what I enjoy most in life!

If my value revolves around freedom, it means that I have to align my goals with this particular value. Hmm… from the way things are going, it looks like I’m headed in the right direction.

So who else wants to set up the stage for (financial) freedom?

Tags: Financial Management by Me Rina
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Amongst the necessary measures required to ensure I’ll reach my goals of achieving financial freedom is having my finances under control. So beginning first January 2008, I’ve taken to jotting down all my daily expenditures. This is a great exercise since it makes me more aware of where my money goes. By listing down my spendings, I actually end up spending less because I become more cautious of it and buy only what’s necessary.

I read in one finance blog (i think it was millionaire mommy next door’s) that controlling your finances means knowing the difference between what you need and what you desire (but don’t need). I’m happy to say that I’ve started to cultivate good spending habits. I won’t call myself a shopaholic anymore and I’m happy with this accomplishment!

This month, I’ve also started on another finance book - one that I’ve had on my book shelve for quite some time but only had the chance to read the first few chapters last weekend. The book I’m referring to is Robert Kiyosaki (of Rich Dad, Poor Dad fame)’s Retire Young, Retire Rich. This book reveals alot on using the power of leverage to accumulate wealth which I shall elaborate in another post.

Last weekend was a well spent family getaway at my inlaws’ new place in Tanjung Malim. They have a beautiful house nestled amidst the mountain side overlooking a beautiful lake garden. The air is clean and the view is spectacular! I could imagine our own family living there in one of those beautifully designed houses. It’ll definitely be ideal! Me working from home (or not having to work), being close to my loved ones and waking up every morning to a picturesque scenery and healthy living, breathing - fresh country air! It’ll be a dream come true..

Tags: Financial Management, Personal by Me Rina
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A Million Bucks by 30: How to Overcome a Crap Job, Stingy Parents, and a Useless Degree to Become a Millionaire Before (or After) Turning Thirty

The above is the title of a book by Alan Corey. I was talking to my younger brother this evening. He’d been asking for my advice on what jobs to take on since he recently completed his studies. A few of his friends already have jobs and careers. One good friend is a pilot with Malaysian Airlines and earns RM10,000 a month. Another is a gym instructor earning RM4000 a month with commissions. So it is no wonder my bro expects his income to be of similar range. I envy my bro for having great friends to hang around. He must be a great guy himself to have such friends.

Not that my friends aren’t so great. But most of them have the mentality that it takes a secure job to make it in this world. That means no risk-taking and just leading an easy, convenient life. I better start hanging around more entrepreneurs, internetpreneurs, internet marketers, financial bloggers and millionaires (since this is what I sought out to become) - millionaire mommy next door, won’t you be my friend?!

Oh yeah.. back to the book by Alan Corey. My brother mentioned about it in passing saying that he came across an interview of the author on UTube. He’s actually looking for the book at bookstores but haven’t found it yet. Now knowing my brother, he’s not one who normally buys book or much less even bother looking/hunting for one. So I thought, what’s the catch?

I turned to my bro for more explanations.. he  says the book is filled with useful money-saving tips such as:

• using pennies /coins to buy stuff instead of using paper notes (spend the pennies, put away/save the notes - save more, spend less - what a great concept!! I’ve actually started doing this today!!),
• bring drinking water from home (why buy at restaurants or anywhere outside when you can get free filtered/boiled plain water from home - it’s healthier too!-no calories),
• when it’s raining, don’t buy an umbrella, borrow one!
• smile often and at everyone - you may just get a free drink/meal etc.!!

Most of his tips are lined with humour but are actually pretty useful. Corey believes it’s better to be frugal now and save for a better tomorrow. Corey went from earning minimum wage at 22 to becoming a millionaire at 28! (I got these info from my bro so for actual facts, have got to check out the actual book). Hmm.. it looks like I have another great book to invest my well-earned MPH coupons in. Hahah..I haven’t told you the value of the vouchers I got and am getting (I’ve decided to redeem MPH vouchers from my credit card reward points as well)!

Ok, if I get around to it, I may just put up the YouTube video of Corey’s interview here. So till then, take care! Reach for the millions!!

Tags: Books, Financial Management, Wealth Creation by Me Rina
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