"She
picks out a field to purchase;
out
of her earnings she plants a vineyard."
(Proverb
31:16)
Today, let’s
talk about cold, hard, cash. Money, honey.
Many years
ago, when I was a freshman in college, I read this book by Robert Kiyosaki
titled Rich Dad, Poor Dad. I didn’t buy it, I just read it at the bookstore.
There are so many self improvement books out there, I don’t buy any of them if
I’m not really 100% that it would be a worthy investment. Flipping through the
pages, I found myself nodding my head over and over in agreement with what they
author said. Many points he expressed, I found to be what my parents taught me
in the dinner table over the years when I grew up. My father has his own business, so he deals
with managing cash flow on daily basis.
One thing I
have practiced on consistent basis since I was very little. You work hard for
the money. So make the money works hard for you.
As a little
girl, I saved my money in the bank and I learned that my little saving generated
a little bit of interest 24/7. My money was making more money for me even when
I was sleeping! Isn’t that awesome!
Then after
graduating college and having my own income, I started to ask my money to work
even harder for me, because I have worked hard to earn them. Also, investing is
the only weapon one has against that “monster” called inflation.
What is
inflation? Let’s put it this way. A dollar now will not worth a dollar ten
years from now. A dollar ten years ago, doesn’t worth a dollar today. It means
you could buy a burger with a dollar several years ago. But you cannot get the
same burger now with a dollar. If you plan to save US 10,000 for your childen’s
education 10 years from now, you cannot save just US 10,000. Because 10 years
from now, what costs US 10,000 now might have doubled to US 20,000. So you
might have succeeded in your goal of saving US 10,000, but you won’t reach your
goal to finance your child’s education.
That’s the
cold hard truth.
The only way
to make your money works for you, even when you’re sleeping, and beats inflation, is investing.
I thought I
would share with you what I have done and seemed to work very well for me for
more than 10 years and now also works well for my family. I’m not an expert,
but these tips have been proven work very well for my parents – for almost 50
years - and myself.
Don’t Put All Your Money In The Bank
You will get interest, yes, but it cannot beat inflation, especially with tax. If you happen to be fortunate enough to be loaded with cash, just calculate whatever amount you would need per month – including bills, groceries, tuition, doctor, insurance, mortgage, rent, whatever – times six, in your saving account. That’s your piece of mind, knowing that you can survive for six months just from your saving if anything happens. I do with only three months of living expenses in the bank. The rest you should invest.
Don’t Put All Your Eggs In One Basket
I’ve heard many horror stories of people who lost everything and all their life saving in chasing the golden dream. They got caught up in dream investment that promise a truckful load of gold. Well, my Friends. If it sounds too good to be true, most likely it’s not true. If getting rich is so easy, we won’t have any poor in the world. There is no shortcut in getting rich. Greed is the perfect road to doom.
Don’t put all your money in just a single investment, whether a very promising stock, insurance, or business. Spread them to two or three different things. That’s why I think mutual fund is perfect for novice investors. They generate enough return in the long run to beat inflation, they don’t depend on just one single stock, and they’re very low maintenance. That means if you lose your money in one investment, the other investment(s) can cover or minimize your loss.
Gold Rush!
The price of gold, over the years, never goes down. If you are conventional, on the edge of retirement, or will need money in the next year of two – either to buy a house, to travel, etc. – just buy some gold. Not gold jewelry, mind you, because you will pay a lot for the craftsmanship. Buy gold coins. They don’t generate as much return as stock or even mutual fund, but they usually beats inflation and they are extremely liquid. You basically can sell them anytime. Gold can guard the value of your money.
Do you know that our Moslem friends also knew this? In their Holy Qoran, it was quoted that you will need 200 grams of gold to be able to afford the hajj pilgrimage. The amount of money needed for hajj pilgrimage is much more expensive now that it was 500 years ago. But even today, you still only need 200 grams of gold, because the price of the gold always match the value of the money needed.
Buy from reputable seller who has been around for at least ten years, to minimize the risk of buying counterfeit gold. If you are not an expert, it’s quite difficult to differentiate counterfeit from the real thing. Also, make sure that the seller is willing to buy back his own gold. If the seller refuse to buy back his own merchandise, well, then you can be sure that the goods are not good!
Invest Your Spare Money
Some people insist that they have nothing left to invest. Well, I personally don’t believe it. Most people can spend US 50 on new shoes, theater tickets, or a lavish dinner, but cannot find the same amount in their wallet to invest? Come on. It’s not “I cannot” but more “I can, but I choose not to”.
Well, then, what about that yearly bonus? The birthday money you receive from your auntie, your parents, your child, your spouse? The extra money you receive from your blog? If you are in sales and you sell more one month, don’t just go out and celebrate. Take some of the excess money you receive and invest it. That way, you won’t disturb your monthly spending cycle. You can always save for that trip to Rome from your monthly income. Live with your main income, invest your extra income.
Friends, if you have not, I urge you to start investing right now. Either in business, in mutual fund, in property, whatever. Even the Proverb 31 woman invested in buying a field and making a vineyard.
If you are a regular reader of my blog, your might notice that my week recap has been missing for these last couple of weeks. The reason is quite simple: life got in the way of blogging. However, I still deem it important to write some highlights here and there, since my blog is also a sort of family journal and scrapbook. My highlight of June is that my son Michael can now talk on the phone! Well, he doesn't really talk, just makes some words here and there, but he could listen and understand what his Daddy or grandparents were talking over the phone, and it's such a nice way to communicate with him when his Daddy and Mommy are away at the office! It's simply delightful to listen to his funny little voice saying "Hewwwooo.... Mommy? Hahaha..." So cute! I'm guilty as charge as thinking every little accomplishment or progress of Michael as cute! Here are pictures of him talking to his grandma, or my mom in law.
I'm linking up to these wonderful Ladies:
Monday
- Taming Rapunzel: Hair Style Monday
- DC in Style: Monday Bloom
- Not Dead Yet Style: Visible Monday
- Mom's The Word: Make Your Home Sing Monday
- Happy Wives Club: Marriage Mondays
- The Better Mom: The Better Mom Mondays
- What Joy Is Mine: Monday Musings
- Color Blind: Thrifer Anonymous
- The Modest Mom
- Create With Joy: Inspire Me Monday
- The Beauty in His Grip: Sharing His Beauty Mondays
- A Pinch Of Joy: Busy Monday
- Tell Me A Story
- Still Being Molly: YOLO Monday
- Very Busy Mama: Real Mom Style
- Momma In Flip Flops: Real Mom Style
- Thrifty Chic Mom: Real Mom Style
- I Am Priiincess: Monday Madness
- Basic Training – Corporate Style: Fashionably Employed Link Up
- Glamamom: Mode Monday
- Bon Bon Rose Girls: Monday Mingle
- Mom Trend: Monday Mingle
- More Pieces of Me: Manic Monday
- On the Daily Express: Manic Monday
- Whitney Nic James: Personal Style Monday
- Fizz And Frosting: Mix It Monday
- The Style Record: Monday Must Haves
- A Proverbs 31 Wife: Matrimonial Monday Linkup
- I Should Be Mopping The Floor: Inspiration Monday
- Splashin Glory: Momma Notes
- Missional Call: M M and M Monday Linkup
- Chronicles of Grace: Unforced Rhythms
- The Wellspring: Playdates with God
- Rich Faith Rising: Unite
- Finding Heaven: Soli Deo Gloria
- Growing Home: Growing Homemaker
- Teaching What Is God: Women Helping Women
- Join The Gossip: Monday Morning Gossip
- Life of Meg: Mingle Monday
- Little Miss Fashion Queen: Little Miss Monday
- Strangers & Pilgrims On Earth: The Art of Home Making Mondays
Tuesday
- Life’s a Party Dress Like it: Stylish Tuesday
- The Fashion Canvas: Trend Spin Linkup
- Corner Stone Confessions: Titus 2 Tuesday
- Time Warp Wife: Titus 2 Tuesday
- Coastal Charm: Nifty Thrifty Tuesday
- Keeping Life Simple: The Gathering Spot
- Sugar Bee Crafts: Take A Look Tuesday
- Style Elixir: Style Sessions Fashion Link Up
- Growing Home Blog: Teach Me Tuesday
- 100lb Countdown: Turn It Up Tuesday
- Greater Than Rubies: Remix, Rewear, Restyle
- Walking In Memphis In High Heels: Trend Spin Link Up
- Myriad Musings: Style Swap Tuesdays
Wednesday
- Transatlantic Blonde: What I Wore Wednesday
- Because Shanna Said So: Random Wednesday
- My Girlish Whims: My Whims Wednesday
- Juana Mikels: Wednesday's Prayer Girls
- Kimba Likes: Wardrobe Wednesday
- The Pleated Poppy: What I Wore Wednesday
- Messy Marriage: Wedded Wednesday
- Elizabeth & Co.: Be Inspired
- My Daily Walk In His Grace: Winsome Wednesday
- A Creative Princess
- Get Your Pretty On: I Feel Pretty
- A Wise Woman Builds Her Home
- Cute And Little: Color Brigade
- Redcliffe Style: 30 Plus Style and Beauty Linkup
- Adorned From Above
- Woman to Woman Ministries: Word Filled Wednesday
- Little R & R: Wednesday Link Party
- We Are That Family: Works For Me Wednesday
- Jennifer Dukes Lee: Tell His Story
- Fitness Blondie: The Hump Day Blog Hop
- Ann Elliott: Mid Week Muse
Thursday
- CLK Fashions: Fashion Boutique Favorites
- The Tiny Heart: Look What I Got
- Penniless Socialite: Look What I Got
- Rebecca Lately: Look What I Got
- Vodka-Infused Lemonade: Tres-Chic Thursday
- Mix and Match Fashion: What I Wore to Work
- 3-D Lessons For Life: Thought Provoking Thursday
- Katherines Corner: Thursday Favorite Blog Hop
- A Glimpse Inside: Catch A Glimpse Party
- Serving Joyfully: Thriving Thursday
- Glitz And Gold: All Things Thursday
- Maybe I Will: Be.You.Tiful
- Chic California: Be.You.Tiful
- The Happy Gal: Be.You.Tiful
- Fry Sauce And Grits: Be.You.Tiful
- Raising Mighty Arrows: Proverbs 31 Thursday
- All Things With Purpose: All Things Thursday
- Children Are A Blessing: Growing In Grace Link Up
- White Coat Wardrobe and Perfectly Coutured : Three Fer Thursday
- Simply Just Lovely: Working Girl With Style
- Soul & Spirit: Let Your Light Shine Thursday
- Treasure Tromp: Treat Yo'Self Thursday
Friday
- Mummy's Got Style: Fashion Friday
- Penniless Socialite and Delusions of Grandeur: Favorite Fashion Friday Link Up
- Two Thirty Five Designs: Casual Friday Link Up
- Serenity Now: Weekend Bloggy Reading Link Up
- Simply Lulu Style: What I’m Loving Fridays
- Style Elixir: Friday’s Fab Favorites
- Musings of a Housewife: Fashion Friday
- Rags to Stitches: Coffee Date Friday
- Womanhood With Purpose: Friday's Link Up
- Missional Women: Faith Filled Friday
- Spiritual Sundays
- Essential Thing Devotions: Essential Fridays
- Rachel The Hat: Passion For Fashion
- Simple Sequins: Fashion Item Friday
- Chantilly Songs: The Totally Awesome Blog Hop
- Christian Mommy Blogger: Fellowship Friday
- The Jenny Evolution: Friday Flash Blog
- Soul Survival: Faithful Friday Linkup
- Bacon Time With The Hungry Hypo: Anything Goes Linky Party
- Midwest Style Bloggers: Friday Favorites
- Lena B Actually: Passion For Fashion
- Blissful And Domestic: Feature Friday Link Up
- Sabby Style: Friday Frills
Saturday
- How Sweet The Sound: Pink Saturday
- Six Sisters' Stuff: Strut Your Stuff Saturday Linky Party
- Renewed Daily: Recommendation Saturday
- Fashionista Momma: Stylish Saturday
- Sincerely Paula: No Rules Weekend Blog Party
- Amanda's Books And More: Make My Saturday Sweet
- The Baby Shopaholic: Mamanista Friday
Sunday
3 comments:
Hello, just stumbled upon here, and I read through your writings about money. Pretty much agree about investment thingies :) nice post and nice outfits as well.
Have a nice day
modimelodi | A blog by Moudy
He's getting so big!
☼Transatlantic Blonde☼
love the print on your blouse and great bag!
Marie @ In Our Happy Place
Post a Comment