Welcoming the year of Snake, 2013.
The quadrants that shared by R.Kiyosaki are planted in my head. I have managed to keep it in my mind, making sure that I am moving into the 'right' direction, financially.
As most of us are working ... we are 'employee', the E-quadrant. If our salary if high, say above RM10k, that is good as we could have extra to save ... and to invest. Well, my salary is on averagely low bracket ... so, not even enough for monthly commitments. Therefore ... an extra work needed to supplement my meager salary. Most of lecturers/teachers will be giving tuition to do that ... and that is the S-quadrant. S = self-employed ... means that we find extra works to do ... and most of the time, being paid hourly. For some of us, we do 'OT' ... and many in our college is doing that. Willingness to use our extra hours to work is necessary.
Assuming that our salary is below RM5k. Most of the teachers' salaries are below RM5k. How can we increase our salary?
One of the way is ... getting promoted. But there are limited 'spaces' up there ... and most of the time, the stress level up there is much higher. Is it worth the increment for the stress and hours spent? The answer is a big 'NO' ... no way a lecturer wants to be promoted into admin-positions as most of the time, teachers like teaching!! And the salary up there is limited too ... can't even reach RM10k, ok?
So, logically ... majority of the lecturers will be giving tuition after working hours. It is necessary ... and for many of us, the income from this S-quadrant is more that our full-time E-quadrant. That is great ... the more we work, the more we get. Few good tutors are earning above RM10k. I do know these few of them.
Then ... while most of our time taken up by our full-time job and part-time job ... we hardly have time for other things, right?
Now we have created two ways(pipeline) for our income. Income is NOT equal to salary, as I illustrated here. Our fixed salary is fix monthly basis ... with 5% increment yearly, and bonus about 2-months ... it is not to shout about in our salary-package scheme. We do need the part-time income ... which could be substantial.
Saving = Income - Expenses.
I have also mentioned how important it is to be 'frugal' ... as frugal as we could be. That doesn't mean that we are stingy ... we just do not simply use money unnecessary. So, while we are trying to increase our income ... we should maintain our expenses ... or checking on the list of our expenses, to see if we could reduce it further. Believe me, most of the time ... we over-spent. we do buying items that we may not use ... or at times, impulsive So, I have came out with a way to 'control' my needs of using money ... and when think logically, I no longer feel the needs to buy anything much ... at all. That is great too.
When Income increases in yearly basis ... and maintaining our expenses(if possible), our extras could go into our Savings.
Using our TIME to THINK ... and to read good financial books is very important. The people we mix with, the change of mindset about money(and lives) ... is essential.
TIME = MONEY.
Use our time to increase our knowledge on how to increase our income and reduce our expenses.
I will write about what we should be doing with our extra money ... into investing. But, most of normal Malaysians are still struggling with the concepts of "earn more, use less". Without this planted in our head, the savings could not come. It is always excuses that money-not-enough to save. I don't mind sharing what I have been doing for past 7-years ... in my quest of learning more about personal financial, from a complete financial-idiot to a person ... who have little knowledge about money.
Today ... at least I do not have 'bad' debts ... and learning to increase my 'good' debts. Growing our wealth certainly needs time and effort. We need to be persistent, discipline and be patience. I am only 30% into my journey ... of my financial freedom.
Share with all this simple clip. Listen and try to plant it in our minds.
Think of the 8 C's shared in the clip.
May year of snake a good year for our investments.
I am in peace ... with myself.