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Sunday, November 10, 2013

Planning Your Money Matters for the Future




Money is the output of what we do physically, if we are going to view it at the viewpoint of a non-investor.

I was once a non-investor and the thought of saving money in a piggy bank or in bank institutions are the only way to save money in the future.

This video taught me on how to prioritise my money in a planned way.  The lesson that I learned are the following:

1. Prioritize the tithing behaviour.  Tithe is a tenth part of  something or a 10% of our money earned through our income.  This part is voluntarily given to a religious organization or to the government like a donation as what we call it.

This is optional, some people don't believe in tithing, so it's still ok to cut it down from the list.

2. Saving for an Emergency Fund - We should save something that is liquid, ready to use cash, in case of emergency such as accident, hospitalization, etc..

3. Retirement Fund - What is life after our retirement?  Do we just sit down on a racking chair, smoke cigar and wait for our chicken to be 45 days old in order for us to eat?  NO, we should get a retirement fund while we are still capable of earning money so we can still continue our life the same as when we were young and able.

4.  Freedom Fund - This is the fund that you are free to use to whichever money making scheme you are interested in investing.  May it be in the mutual fund or to the stock market.

5. Investing in Stocks - The venue where your freedom fund goes.  This will make your money grow when invested in a trading stocks or in a long term investment period.

I think one thing is missing from the list is paying all your debts first.  This is the most important initial step before planning for the step no. 1.

My views on money, after watching this video, has now changed and my priorities as well. 

Follow me to my journey on Success. Let me know how your views had changed after watching the video.  Leave a comment below.
Ben Alagnam - MeMovingToCanada