After a prolong duration of overworked life, I've decided to step a step back and concluded that work isn't everything. I've a life to live. :) Hence, I've started my reading plan all over again lately. I recalled reading the book - Secrets of Self-Made Millionaire by Adam Khoo, probably more than 1.5 years ago. So, picked up that book and started reading...
After reading the first chapter, I felt very amazed by the lessons that Adam learnt, and how he became a multi-millionaire. At the 2nd chapter, there's "The Seven Steps to Financial Abundance":
- Adopt Million Dollar Mindset
- Set Clear Financial Goals
- Create Financial Plan
- Increase Income Massively
- Managed your $$ & Reduce Expenses
- Grow your money at Millionaire Returns
- Protect your wealth
Out of these 7 steps, I agree with something he said about step 5 most. There are people who earn $20,000 / month who are as broke as someone who earn $2,000 / month. Why is that so?
Simply because of poor personal financial management, there are people out there who spend more money as their income increases. So in the end, they are no better earning $20,000 as compared to just $2,000. Is it really true that we have to increase our expenses that much when we earn more money as time goes by? Certainly not in my personal opinion. Perhaps the expenses may go up a little to project a better image / dress sense but probably not that much.
Think about what is it that you'd get for your self if you are earning 10 X your current pay per month. If the items are mainly the following, be wary of your expenditure:
- Upgrade your car
- Upgrade your house to a much bigger one and continue to stay there with your loved ones (no intention to tenant any rooms out)
- Employ more maids to clean up your home for you
- Go for high class holidays or just holidays more often
- Wear nicer and branded clothes / bags
- Join that country club or more country clubs...
You might just fall into the category of people who will certainly spend a lot more than what you've earn. :) So do take note of what is it that you really wanted to achieve.. Will it lead to better lifestyle permanently or just temporarily? Think twice before you just simply spent that money. :)
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