Group YourFinanceRuleStarted by Mon-Mon on 16.04.2019 The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
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An eagle is a bird that many people have used to describe many things about life but in addition to what you might have learn from the bird, here are the additional 6 leadership principles you can learn from an eagle.
1. Eagles fly Alone and at High Altitudes - They dont fly with parrows, ravens, and other small birds.
Meaning: Stay away from narrow-minded people, those that bring you down. Eagle flies with eagles. Keep good company.
2. Eagle have accurate vision - They have the ability to focus on something as far as 5km away. No matter the obstacles, the eagle will not move his focus from the prey until his grabs it.
Meaning: Have a vision and remain focused no matter what the obstacles and you will succeed.
3. Eagles do not Eat Dead things - They feed only Fresh Prey.
Meaning: Do not rely on your past succes, keep looking for new frontiers to conquer. Leave your past where it belongs, in the past.
4. Eagles Love the Storm - when clouds gather, the eagle gets excited, the eagle uses the storm’s wind to lift itselt higher.
Once it find the wind of the storm, the eagle uses the raging storm to lift itself above the clouds.
This give the eagle an opportunity to glide and rest its wings. In the meantime, all the other birds hide in the branches and leaves the tree.
Meaning: Face your challenges head on knowing that these will make you emerge stronger and better than you were. We can use the storms of life to rise to greater heights. Achievers are not afraid to rise to greater heights. Achievers are not afraid of challenges, rather they relish them and use them profitably.
5. Eagles Prepare for Training - They remove the feathers and soft grass in the nest so that the young ones get uncomfortable in preparation for flying and eventually flies when it becomes unbearable to stay in the nest.
Meaning: Leave your Comfort Zone, there is No Growth there.
6. When the Eagle Grows Old - His feathers becomes weak and cannot take him as fast and as high as it should. This makes him weak and could make him die. So he retires to a place far away in the mountains. While there, he plucks out the weak feathers on his body and breaks it’s beaks and claws against the rocks until he is completely bares; a very bloody and painful process. Then he stays in his hiding place until he has grown new feathers, new beaks, and claws and then he comes out flying higher than before.
Meaning: We occasionally need to shed off old habit no matter how difficult, things that burden us or add no value to our lives should be let go of.
“NEVER GIVE UP, BE AN EAGLE.”
Mon-Mon on 30.10.2019 at 22:10
Today I want to talk about wishlists! They’re not only for christmas, they can be used in your daily life to save money or generally buy less. Here’s a little bit of information on what it is and how to use it:
What is it?
You write down what you want to buy. You can write it in your bullet journal or you can keep it visual by having it as a pinterest board.
Why should you have one?
When it’s used correctly, it can help you reduce the amount of things you buy, save money and you’ll always know what to ask for when it’s your birthday!
How to use one:
1. When you really want something you write it down on the list.
2. Now you wait. Wait for a month at least. Then come back to the list and figure out whether you still want it. This way
you’ll avoid buying things impulsively.
3. If you don’t want the thing on the list anymore, scratch it out. If you do want it, you can start saving money or ask for it
as a gift.
I hope you try to implement this and have a great day!
Mon-Mon on 05.10.2019 at 23:16
There are those who question my apparent willingness to invest. They are usually employees who have a chance to get a loan - either at work or offered by the bank.
They are overwhelmed by the opportunity that can be missed if they do not take out the loan. They want to make money by investing with the money of others.
It's not so bad that they have a good handle on money. This is called leveraging. To make sure you don't miss out on a loan to invest in, follow my easy to do guidelines.
*Use your own money first*
Before using someone else's money, first use your own money. This way, it starts with a small amount because our money does not always go big.
When using your own money, you are not obligated to pay interest so you earn it yourself.
*Investment income should be higher than interest*
The basic rule is that the investment will provide enough income to pay the interest on the loan. Debt payment should come from the investment and not from your own pocket.
If you borrow from your own income to repay the principal and interest on your loan, for me, it's not a good investment.
It also needs to be tried and tested for investment and its performance is not based on speculation. Make sure that it can FINALLY provide higher income than the interest on the repayment loan.
*Positive cash flow*
Ideally, the investment should provide a cashflow that can repay the debt - its principal and interest portion. This means the loan term matches the investment term.
For example, your installment payment on debt is AED10,000 per month, meaning your investment can provide you with a cashflow of more than AED10,000 per month.
*Adequate investment experience*
It is best if you have extensive and significant experience in investing if you plan to borrow for it. You will be better able to manage the risks involved in investing once you become accustomed to it.
For me, the minimum number of years of experience in a particular investment is three years before risk consideration can be considered.
*Sleep well at night*
Finally, the best way to get a loan for an investment is to feel good about whether you have a loan.
Can you sleep well? How do you feel? In other words, listen to your guts.
If not, it is better not to borrow an investment.
Mon-Mon on 11.09.2019 at 15:49
I know with your “limited time” due to studies/work, there’s only so much you can do but think about this - how much free time did you have in between things you did and you just wasted it by doing nothing / random useless stuff that doesn’t even improve your wellbeing in any way?
“The rich are richer because they have multiple streams of income.”
How do you have multiple streams of income? By diversifying your portfolio. Starting out, you might not have “extra cash” set aside, income is more direct, you have to spend time to work for it. For most of you would be sugaring, add on another stream of income while you’re at it (massaging, escorting, creating a business, waiting tables, whatever tickles your fancy). Always, always, set money aside - either earn more than you spend or spend less than you earn. Do NOT ever live by this motto “you deserve this” at this stage. You will go broke in 2 seconds. Spend wisely.
The next step would be looking into hedge funds, bonds, stocks, real estate ect. They’re the ones you want to be into for life, as money makes money in these, and you save time which you can allocate to do whatever you have dreamt of all these while without needing to worry about income. You’ve made it in this stage only when you’re earning more than you can spend.
All you need to do is get through the first stage.
All the best....
Mon-Mon on 10.09.2019 at 15:31
Credit card is popular nowadays and other financial institutions are aggressively marketing campaigns for it. If you know how to use a credit card, life is good here.
But in reality, not everyone knows how to use a credit card correctly. They thought the credit card was the ATM that issued a docket and only a note of the size of the payer when the statement of account was issued.
What to do to get the most out of credit card usage.
Pay the full statement balance on time.
It is not hidden in the knowledge that interest rates passed by credit card companies are so high. On average this is 3% per month. Credit card interest because it is a non-collateralized loan. In short, it is a clean loan.
You may, therefore, pay the full balance of the statement by the due date. This means that there is no significant amount of interest from the credit card company.
If the balance is left out, using a credit card is not for you.
Minimum amount cannot be avoided simply because it is payable. This means the balance due on that date is of high interest.
Pay on time
In addition to the interest you pay on the late payment, the credit card company will also charge you a late fee charge. It is still a penalty charge
Find out the terms and conditions of your credit card to find out what the rate is.
Only one should
It may not be time for all merchants to accept a different type of credit card. Today, almost all have been accepted.
Select the credit card that should not be accepted here to keep multiple credit cards.
Do not glare at the rewards
Many of today's credit card marketing promotions are the points or rewards you get with using a credit card. If you do not give the full credit card balance statement by the due date, there are no points that do not earn them.
By default you pay more interest than the points you are given.
Choose a credit card that swaps your lifestyle. You can definitely score points. Credit card sign-ups are unavoidable because of the points you give.
Avoid maxing out the credit limit
The optimal limit of credit card usage will extend to the credit card limit you are given. Less beautiful.
When you max out your credit card, which means it exceeds the credit limit you were given, the credit card company's financial charge will decline. They can also be top of the interest rate that you will be charged for this.
Establish good credit history
It's a great way to build credit card credit history especially now that you have a credit bureau. Credit institutions use credit scores to assess our credit worthiness.
Again, if the correct credit card payment is not followed, it will not help your credit score but will damage it. So be extra careful to use.
Credit card can also be used in 0% installment offers. But only if no discount is given when paying for cash.
In my experience, many merchants offer discounts if they buy with cash especially on big ticket items. Without a discount, the installment plan can be used.
But please do not be tempted to use the money available for credit card payments. Use cash to pay for short term investment opportunities.
Mon-Mon on 14.08.2019 at 01:56
Whether you've landed a job with a consistent paycheck or scored a raise that's left some wiggle room in your bank account, count yourself lucky to have some extra cash on hand.
Now, the big question: What do you do with it?
Everyone's situation is different, but many experts broadly agree on the first steps to take with extra cash.
A few notes before you read on: Your most immediate obligation is meeting your monthly bills, and only then is it time to think about what's next. It's just common sense — you can't build wealth while digging yourself into debt.
And, in many cases, you can pursue multiple avenues with your money simultaneously, like starting to save for retirement and devoting extra money to paying high-interest debt. Or saving for retirement and building an emergency fund. (Really, saving for retirement goes well with anything, because starting early gives you a huge advantage no matter how little you can afford to put aside.)
Mon-Mon on 13.08.2019 at 02:03
We may be in a struggling economy that is popping in and out of recession but that doesn’t mean that you have to hide your money away in a cupboard till the doom and gloom disappears…if it ever does.
If you have a healthy financial status then, why not invest your money? It may sound like a risky business but when approached right, investments can do exactly what they say on the tin; invest your money and give you that healthy return.
Here are our top investment tips to ensure that you get the most out of what you put in;
Know enough- Do you know just what you want out of your investment? This is where a lot of people falter but it is vital that you keep a clear head as to just what you want as this will help you find the best investment for you, rather than one that gives you nothing in return.
Be prepared- commitment is vital in an investment so make sure you are ready and prepared for whatever commitment you are about to make. You would be surprised how many people invest and then have to resort to pulling out as the financial commitment becomes too much of a strain. Don’t lose out.
Stay on the ball- In this struggling economy there will be a lot of companies offering you a dream deal with barely any risk attached to it but let’s get one thing straight; in the world of investments, if it sounds too good to be true then it most probably is. Stay on the ball and seek investment advice before doing anything.
Don’t go above your limits- Remember that this is no game, it is real money and there are real risks involved so be wary of exactly what you are going to invest and only do so if you can withstand losing it…if not then no investment is worth the risk.
These are our top investment tips; do you have any more you can share?
Mon-Mon on 11.08.2019 at 00:54
Aggressively attack debt:
If you have debt, you need to be laser-focused on paying it down. Start with the highest interest rate loans and go from there. You might even prioritize it over investing and saving for retirement.
Live like a student:
When you get a raise, that doesn't mean you should upgrade your lifestyle. Instead, sock away extra income to debt or savings.
Pay yourself first:
What it means is automatically funneling part of your income into your savings each month. If you don't, and wait until you've paid the bills and had a few fancy dinners out, you might find there's nothing left to contribute at the end of the month.
Buy long-term appreciating assets:
Invest in assets, like real estate or stocks, which you expect to gain value. This differs from a car, for instance, which loses value as soon as you drive it off the lot.
Pick low-cost investments:
Expenses can quickly eat into investment returns if you let them. Stick to index funds, which are a cheap and easy way to own the entire market.
Don't buy too much house:
Never get a mortgage for more than two times your household income. For example, new home cost well over the couple's combined annual incomes. However, with a large down payment, they managed to bring the mortgage balance to a little over one times gross household income.
Evaluate investment properties carefully:
An investment property can provide solid side income. But make sure it meets the following criteria before you buy.
- Cash flow positive
- In a nice neighborhood with low vacancy rates compared to the rest of the city
- In good shape and move-in ready
- Under market value
Mon-Mon on 05.08.2019 at 23:32
1. ON EARNING: “Never depend on a single income. Make Investments to create a second source.”
We need to find avenues for passive income, there are lots of opportunities for this we just have to be creative, patient and discerning.
2. ON SPENDING: “If you buy things you do not need, soon you will have to sell things you need.”
This is simple buying things we don’t need are a waste of resources and end up leading to clutter. Practise self control so that we are not then in a bind when we really do need something.
3. ON SAVINGS: “Do not save what is left after spending, spend what is left after saving.”
Pay yourself first, we can find that we spend more than necessary when there is no plan to save what we do have. Make a budget and stick to it!
4. ON TAKING RISKS: ”Never test the depths of the river with both of your feet.”
Don’t take un-calculated risks, be sure to have thought through all the pros and cons as much as possible…then step out in faith carefully.
5. ON EXPECTATIONS: “Honesty is a very expensive gift. Do not expect it from cheap people.”
Honesty and integrity are priceless, there are some people who do not see the value in it no matter what. So steer clear of them and make sure that it can be used to describe you.
Mon-Mon on 28.04.2019 at 12:54
How you manage, spend, and invest your money can have a profound impact on your life, yet very few schools teach these important skills. Learning financial savvy can take a while, but the basics are fairly simple and never change. Here’s where to get started.
You were probably taught some basic math growing up, but too many people make it all the way to adulthood without ever learning basic money management. Skills like creating a budget, investing for the future, or even how credit cards work are startlingly rare skills. If you’re in need of a Money 101, we’ll cover the basics for beginners, while also giving you the resources you need to learn more.
The Golden Rules of Personal Finance
Managing your finances feels like nothing but a lot of paperwork and numbers. You make X amount of money, you spend Y amount, and you try to make sure Y is less than X. However, your finances are just as much about psychology, habits, and the values you choose to live by. Put another way, your mindset matters just as much as the math.
Beneath all the software and the budgets, there are a few rules that will always help improve your financial life:
•Spend less money than you earn: If you earn AED30,000/year and you spend AED31,000/year, you’ll end up in a spiral of debt that’s hard to walk away from. If you spend exactly as much as you earn every year, you’ll never be prepared for emergencies or major life changes. Spending less than you earn allows you the freedom to save, to prepare for the future, and deal with the inevitable crises that life throws at you. The bigger the gap between your income and your spending, the better.
•Always plan for the future: This doesn’t just mean retirement. When a store offers to let you pay off some gadget in 6 months with no interest, you need to know you can pay it off, or avoid that deal. Establishing an emergency fund will allow you to deal with unexpected car repairs or medical bills. Having a retirement plan will ensure you have income when you’re unable to work anymore. Your finances should always look forward beyond the current month.
•Make your money make more money: Want to know how the rich keep getting richer? It’s because money can grow while you sleep, provided you save some of it. Properly invested money earns more money over time. Don’t just sock all your cash away in a low-interest savings account. Invest in things that will earn you more money than you had before. Sometimes that’s an investment account, but sometimes it’s starting a business, or even getting an education to get a better paying job.
The most important personal finance rules don’t change. What your grandparents did may not work for you. There will always be newer, better tools to manage your money. However, spending less than you earn will always be beneficial. Investing your money will always be better than doing nothing with it. And planning for the future will always be better than blowing your paycheck as soon as you get it.