Figure 1: Rate of Prosperity: the more you invest, the more prosper you are, why?
Prior 2011, I had very little investment. My salary was always not enough although it was more than average people. I was not really happy but I did not know why. All I knew, my income was not sufficient. Like most people do, I spent more time to find additional income. Then, it came to my attention to increase my investment. As I increase my investment, my family well being getting better. I have more time to spend on other things. Early 2013, I made two major investment. I just got new tenants for the properties. Thus in 2014, I anticipate my family's life will improve much better. However, if I stop my investment in 2015, the inflation and additional expenses in my family will catch up with my investment income. Thus, my prosperity will be reduced.
However, making a hasty investment can make you easily trapped in a bad investment especially in a Quick Rich Scheme investment. Funny, how my acquaintances do not want to put effort and actions in any real investment, yet they can easily entice in a Quick Rich Scheme. To make it worst, some of my acquaintances who made these bad investment are educated people including religious men. Sometimes, they forgot that having knowledge is not sufficient without any experience. Without experience, you can easily tempted in a bad investment. Nowadays, Quick Rich Schemes are getting more complex and creative to be understood by inexperience people. That is why you need to attend short courses on financial planning and the best is to have a mentor.
Many people cannot differentiate between businesses and investments. Both may have similarities, yet both need different set of critical thinking. So, if you really have realized that an investment is important, what type of investment is best for you? Everything is based on affordability. However, most people underestimate their affordability due to many waste in their expenditure. Throughout the ages and in many civilizations, property investment has been proven to be the best for those who need less hassle to face with human idiosyncrasy. And if a property investment is best for your personality profile, what are your steps? You should learn good principles in investment by asking successful people. But, you can learn good principles in investment at a faster learning curve by attending my short courses and personal mentoring.
As mention before, waste is an obstacle in your investment plans. Thus, personal financial planning is is critical: identify your expenditure and waste. It may not an exact science. Yet, if one know the psychology behind it, it is not that hard to control your expenditure. To learn the details and how to control your waste, you can attend my basic financial seminar. Without trimming your current and future waste, any additional future income will also be wasted. That is why we seen many high income people always claim that they cannot afford to buy a property either for their own use or for investment!
So, let us back to the most important topic. How to start an investment for anybody? Many people have misconception that saving is enough for them. Saving in your current account is not sufficient to generate additional income. You should look for a higher return investment such as ASB or Trust funds investment. It is a good start for those who have very little money to invest. Many people argue in Internet blogs between monthly saving in ASB and using a ASB loan. In reality, the actual calculation of a ASB loan is far profitable than if you save your money monthly in your ASB account. Most of the ASB loan calculation I have read in Internet blogs are flawed. I will share the detail calculation between both of them to those who attend my short courses.
Many people also have misconception that property investment is only for the rich people. In UTM Skudai, we have a staff who at one time, the income was less than RM2,000 per month. Yet today, he has more than 20 houses. Everything is based on your affordability. If you cannot start high, you should start low. To start an investment is difficult. Once you get the investment return, you will learn how to improve on another investment. How much are you willing to sacrifice to achieve your investment goals before you can reap the fruit of your investment? You need to make the investment plans based on your affordability. The plans must be more than one. The plans must also cater for different scenarios and circumstances. The plans must have best and worst scenarios. Plans must be updated as time goes on. You can spend your entire life to learn many plans from different successful people. But, without sufficient minimum basic investment knowledge, it is hard to know what to ask from them. Therefore, you can save your miserable life faster by attending short courses. I offer different type of plans, strategy and tactics for different background of people in my basic and intermediate short courses of Affordable Property Investment. If you still don't get it, you can sign up for the mentoring program. The hardest part in an investment is how to make a good plan.
Most people don't plan to fail,
But, they fail to plan!
If you do not have any plan and just follow other people's plans, you can easily made a bad investment. But, you can follow other people's plan provided you really understand the plan, make your own contingency plans and be prepared. Thus, if the situation get worst, you should know what to do ASAP. In many occasion, people made slow respond to a bad situation which made the situation worst.
If you have made all proper plans and take all necessary actions,
only then you can DOA and TAWAKAL.
Happy investing!
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