Thursday, December 20, 2007

#1 STEP TO CREATING WEALTH

A PART OF ALL YOU EARN IS YOURS TO KEEP

  • Do not overstrain or try to save too much
  • Be content with what you keep
  • Enjoy Life

ACTION2008:I shall save $500/month into my investment account for which I would not touch for any expenses. Target: $10K in my investment account.

CONTROL YOUR EXPENDITURES

  • Live below your means

ACTION2008:I shall not spend on unnecessary things.

LET MONEY WORK FOR YOU

ACTION2008:I shall use my investment account to invest in stocks.

GUARD YOUR MONEY FROM LOSS

  • "Risk comes from not knowing what you are doing" by Warren Buffett
  • Understand an investment before trying it
  • Seek advice from expertise of each field

ACTION2008:I shall do in-depth research on stocks before buying it. Long-term investment is ideal. No harsh movement! Give reasons why I am buying this stocks.

INSURE A FUTURE INCOME

  • Save for the rainy days

ACTION2008:My insurance with monthly premium of $90 has insured me. I need at least a month's pay in my expense account for any emergency use.

INCREASE YOUR ABILITY TO EARN

  • Desires must be SIMPLE and DEFINITE
  • The more of wisdom we know, the more we may earn

ACTION2008:I shall continue to increase my knowledge on finance. I shall give tuitions, 4hrs/week to increase my income, hence my savings.

reflection of The Richest Man in the Babylon

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