My personal reflection on these topics:
Here are the 12 Steps to build your personal wealth and turn your dream of financial independence into reality.
First part of the book is entitled “True wealth and Savings”.In the book, it asks what it means to be wealthy? The author simply stated on how we can identify a rich man from a poor man. A rich man, is it the one who wear fine clothes, expensive jewellery, do travel and have vacation often, have a beautiful house and car, or eat every night to a fancy restaurant? If you have those attributes, then you are rich. But to be
truly wealthy you can ask these questions, what would happen if my income would stop today? How long can I live without my income? You are “truly wealthy” only if you can continue to live comfortably the lifestyle you desire even if you never work another day in your life.
How I got to Financial Planning Service (12 steps to Build Wealth On Any Income, A book review and personal reflection) – Introduction
This is the first book that I bought out of my pocket. Sounds silly, but yes its true. I can still remember the year but not the exact date; it was the summer of 2008. At that time, there was always a question in my mind, a question that I can’t really answer. The question is, why do other people is so called rich and others are not? With that question, there would be some branches of questions that came out of my mind like; if they spend on luxurious things, going out to the mall, and eating in a fancy restaurant do they need to budget? How about thinking how much left in their pocket? Do they know how to save? Why are they spending without guilt? After buying and don’t like what they’ve bought, would they say it’s a waste of money? And many more questions that prompt me to search for the answers why.
When we think of the rich, we often picture the affluent living in mansions, driving expensive foreign cars and lavish vacations as portrayed by the media, but our perception of the affluent has been distorted by high consumption driven advertisements and Hollywood. Based on years of extensive research, Dr. Thomas J. Stanley and Dr. William D. Danko, discovered that people who live in expensive neighborhoods across the United States have actually very little wealth. Their book, The Millionaire Next Door, surprisingly reveals that those with great wealth, the multi-millionaires, could be one of your neighbors who lives in the same modest house for years and drives an old sedan. How could this be? Well, looks can be deceiving and it’s unfortunate that our society associates wealth and success with appearance, but this is an ineffective indicator of a person’s net worth (assets minus liabilities).
A lot of people oftentimes would ask me this question – How should I start investing ? I would often tell them that learning to invest takes time and that an investing rule of the thumb is never invest in what you don’t know know or understand. This could be well said about investing itself. Never start investing if you don’t understand what it is all about.
Stock market investing is serious business wealth is made and is dissipated in a matter of minutes or hours in stocks and the never ending cycle of bear and bull up and down is always there. However this does not mean that we can’t inject a little humor into it. We may loss money in the market or gain a lot but the important thing is that we continue to smile and enjoy living life after all its just money and material possessions and the greatest teacher once said “Beware of covetousness for a man’s life consisteth not in the abundance of the thing which a man posesseth”