We want it all and we want it now!!!

Many websites and "get rich schemes" abound in the internet because we human beings tend to want to make more money and make more money now! But as I travel along this road of personal investments and finance. I realise the road is long and the journey is hard, and that is part of the reason why I started this blog-- to write down those small five cents ten cents nuggets of information that I learnt from experience, from listening and from reading.

The further I travel along this road to financial freedom, the more I realise the "secret" and "magic formula" is there for all to see. There is no quick road to financial freedom. There is no quick way to riches. There is no quick way to be financially free. BUT... there is a way to develop our own individual methods to financial freedom by reading, understanding and internalising some of the fundamental principles that many know, some share but few practice!

What are these principles?

Live within your means
Firstly, live below your means. Some people take offence at this principle. Some of you feel that having worked so hard, you should enjoy the fruits of your own labour. I have no arguments with that, but I am of the view that by all means enjoy the finer things in life, subject to your income levels. There is no point enjoying a rich lifestyle funded by income that leaves you with little savings unless you are 100% sure that the world will end tomorrow. But if that tomorrow never comes, what will you live on then? You can choose to accept this principle or not. My experience has been that those who have become financially free typically are not the one-off lottery winners but rather, the frugal workers who earn a average wage but by leveraging on the power of living within their means, saving the remainder and investing it in relatively safe yielding investments, they grow their money slowly but surely until they can retire on their passive income.

Save and invest consistently
Savings and investment comes naturally if you develop the propensity to save. Savings left in the bank savings account does nothing much. Savings invested into fixed deposits, treasury bills and some equities, unit trusts or investment property helps to grow. The choice of investment is a function of your risk profile and your level of sophistication as an investor. The more savvy you are, the more able you are to balance the risk-reward trade-off for investments. For those who do not understand the different between a blue-chip and a potato chip can leave their money in treasury bills and/or time or fixed deposits. Let the power of compound interest then work for you.

Take responsibility for your finances
No one except for yourself is responsible for your own financial situation. Your choices in your lifestyle as reflected in the food you eat, the places you shop, the things you buy all percolate down and register themselves in your financial circumstances. Do not say blame the rising cost of living, do not blame COE/ERP rates, and do not blame your pay for the choices you make when you spend. Take a step back, think for a moment. Why do you NEED that Louis Vuitton bag, why do you NEED to drive a car, why do you NEED that big house? Are you sure it is a NEED and not a WANT? There are no right or wrong answers. Your choices determine your financial situation.

Enjoy the journey
The road to financial journey is long and hard. But enjoy the journey. I found that my own journey has been filled with ups and downs. I learnt some painful lessons in poor investments and lost money. I also took responsibility for my losses and started to read up, to learn and to invest. Now, I am in a much stronger financial position and understanding than I was when I first stepped into the working world. Enjoy the ability not to worry about your financial security, enjoy knowing that YOU are in control of your finances. Enjoy the process of being a good steward and guardian of the resources that are at your disposal. Enjoy being financially free, one realistic step at a time.