Valued Notes

1) Money make everyone headache. Some people may have big salary but still insufficient for their monthly expenses, it even worse to have small salary. When we are talking about money, everyday we need money to get goods and services. No money resulted terrible headache.

2) I think that the best way to overcome the insufficient money every month is through generating passive income. That's mean, every month we have extra money and we won't rely 100% on our active income. That's my thought. I keep on telling to my friends that we shall not depend on only one source to get money, the money should move to our pocket in many directions. Hence, I do part time job as tutor. I received passive money and I find out it still insufficient. My power of consumption / demand is high when we have money. Consequently, the passive income I did still not enough. The tragic moment happened when the tuition centre couldn't afford to pay me when there's no student. I find out my passive income has gone, I have no more power of demand but the best thing is that I still can survive. When I have passive income, it is insufficient and now with no passive income I faced same situation of insufficient but still surviving until today. Now, I realize that many money won't make us sufficient in term of expenses. But discipline of money management seems very important.

3) Now I have problem because I have no longer a power of demand. What is it? The power of demand is a situation where we afford to buy goods and services that are not important to our life. It more to;  use money from the surplus. Because the surplus is from the passive income I did. Then I rethink that how if we change plan to not only focusing on passive income but more to reducing demand upon goods and services that are not important. Meaning to says, I must cut cost and ignore what considered unnecessary. What needs and what wants?

4) Yes, I found the solution on how to keep my money stay surplus and at the same time I enjoy with my life. The key is "cut cost". My active income is sufficient if I manage my expenses well by not buying what unnecessary. My first step I took was to change mobile plan from Maxis to Digi. The Maxis offered me 1 gig data mobile a month plus 200 free call with RM68.00. What come worse is that, every month I have to pay more than the first plan offered. Usually I paid RM100.00 because I used internet data more than 1 gig quota. With Digi, they offered me 2 gig internet quota and 100 free calls with only RM45.00. I think this is good plan that should be grabbed because my goal is "cut cost". I also plan to terminate astro subscription and go for NJOI because it's free. My contract with astro will end on December 2014. I will do it. I also have quit smoking and I find out that the surplus is in my pocket. Good job for that. I did great job to create surplus and it succeeded but the word insufficient still shadowed me at all times.

5) In life, we have options to be clever in term of money management or otherwise. It is in our own hands! I read many books about financial on how to generate money and achieve financial freedom in life. The many financial education books as my collection was from Robert Kiyosaki. He tought us to differentiate assets and liabilities. Many people misjudged these two. The thing considered our asset when it gives us cash. That's mean, the cash flow jump into our pockets beacause we have assets such as we have house and we rent to the third party, we get money monthly from that. The liability is about our cash flow jump out of our pocket. We bought house using housing loan from bank, we have to pay the hire purchase every month; our money move out until all debt completely paid. Unfortunately, many of us assume that the hire purchase house we bought is our asset. It's totally wrong.

6) I also remember about the concept of ESBI. E is for employee, S is for self-work/ small business owner, B is for big business owner and I is for investor. The best entity that will make us rich is big business owner and investor. There's no other way. Strive for it! I'm stressed out because I'm a civil servant and I face financial problem when my wants couldn't be achieved due to insufficient. All the knowledges are true but what should be based on our heart is discipline on managing money by focusing only what needs. The surplus would be our savings.

7) In life we must have ambition to have "wants" that actually not the priority in our life such as to have a luxury car. I was taught that, put all the wants away first and stay focus on savings. When the savings increased from penniless to a million then the wants can be brought for further consideration. I know that but we have LUST that's not easily to be ceased  from our minds. When we want something, we will find any reasons to make sure the wants are belong to us.

8) I have experience to teach people on how to do their financial planning. First of all I said, know their cash flow. The best way to have great result of financial planning is when we have some cash flow out but many cash flow in. Meaning to says, we have some debts contrasting with cash in our pockets. That is easy to say but to follow the rule is more than that. I also said, people who succeeded in financial planning when they have savings and the savings used for investments. We give a chance for the existing money to make more money. That's the way how rich people did. They are the boss of their money. In contrast, poor people are the slave of money because they work hard to get money. How terrible they are.

9) I'm bored with many books I have read: they gave me same advice to invest money and to focus on business that can create money. If the books from local writers, they asked me to save and to save the money in unit trusts, bon and so on. The question now is, I have insufficient money then how can I have savings from my salary? That's why, I find part time job to fulfill my wants and my needs as well.

10) Since all the books I bought teach me as told above, I prefer to cut cost from my salary. I have to sacrifice my wants due to insufficient. The key now is discipline on managing money and focus to reduce expenses as well because the result must be brighter when we have enough savings then we can plan to buy what we dreamt before; holiday, car, house and so on.

11) As conclusion, our money is ours and they should go to our pockets first before they are passed to others' hands legally.
Thanks.