Cstan98 Excel Financial Status <pdf>
This webpage defines money matters as all matters related to money issues. It will teach you how to be more money wise from using your money wisely to buying your house to making investments.
In 2012, it is very near Rapture = Jesus Christ comes again for His Christians. In Bible, Jesus Christ: " during Rapture taken away, those who go back to his house to take his coat will be killed. Take his coat = take his properties, like money in banks, his gold, his shares etc. When Rapture, you must forget about your worldly possessions. If you still think of your worldly possessions, there is a chance you will not be saved to fly to the sky with Jesus Christ to an alien UFO. (08/05/2012. It is very near Rapture. GOD YAHWEH [Jesus Christ's Father & Mother] find this satanic planet Earth physical possessions unholy. Because our bodies have been eating satanic foods harvest by satan economy. Your physical body will change to a spiritual Body when you are taken in Rapture. You must make your possessions as simple as possible to board Jesus Christ Rapture Vessel [an alien big UFO]. I recommend you step-by-step sell away your gold & stock markets ETF to buy keep foods in your house. Build Churches with farmlands & water rivers. I hear a "Report" that Rapture wil start this year 2012. Small amount of People will start disappearing, until the big Rapture where many People will fly to the sky to meet Jesus Christ in His Rapture UFO. Just in case, you are selected to save People until the last moment. I recommend you sell your possessions & buy a Church with a farmland & a river [enclosed with a defence fence to defend from satanic demons.]) (Please note to harvest foods in Farmlands, you need to turn off your mobiles, as mobile radiowaves are killing the bees. Bees are needed to pollinate the flowers to harvest the fertilized seed or fruits.)
Your Job is an asset. It gives you money income. With money, you can buy foods & things you like. During the end times, it is very difficult to find a good job which pay you well. This is because GOD YAHWEH is playing chess with satan ceo on this planet earth. According to http://endtimesrevelations.wordpress.com , there will be financial disasters (stock markets & jobs economy will collapse), global earthquakes, plaque, tornados, food harvests will be destroyed etc. You will only earn enough to buy your daily foods for survival, as foods price inflation go sky rocket high.
Someone says for investment concept: "in the long run we are all dead." You cannot bring money to your grave. That why I recommend when you are living, give 10% of your income to God = build treasures in Heaven, only save 10%, the rest 80% spend wisely. Do not invest 90% & leave all your money to your children after you die. Your children may become spendthrift & waste your investment efforts by spending the inheritance in 10 years period (which are most of case).
It is better you organized a Financial Data File where you keep all your bank accounts details, online investments accounts id & passwords & legal will & keep it in a safe where your loved ones know that the data are inside that data file. So that if you have any mishap, your family is able to access your money.
Brainstorm 100 ways for you to earn more money & organize sort them in excel spreadsheet. Focus choose a few of them to earn more money income now. Increase your multiple streams of money income.
When you receive your monthly income, you need to reserve 10% to give Jesus Christ. Do not steal God money. Moreover, giving 10% tithes you will get blessings from God. If you are Buddhist, give 10% to Red Period Buddha. If you are muslim, give 10% to Allah. If you are Cstan98 Black & White, give 1% to Cstan98 Black & White Tithes.
I am going back to old method to save the stock markets. Everyone needs to save 10% to invest in your local stock market. Best is an index fund or index ETF. Because if you save the stock market, it will save the local market companies, then it will save your job. Once the 10% money is invested, do not take it out even the market crash. Because it is when the market crash, the local stock market needs your 10% money most badly. Hopefully this will work to stimulate worldwide stock markets & stimulate worldwide economies. Especially the year 2016, when there is a prophecy that worldwide stock markets will crash because the US baby boomers reach retirement age & start to draw out money from their retirement funds which they invested in the stock markets. If everyone cooperate & maintain investment 10% of your money in your local stock markets in 2016. Then in 2016 worldwide stock markets will not crash. Nuclear wars will not come on 2017 according to Nostradamus Prophecy.
First Step = reserve savings of 6 months emergency fund = 6 months budget of your MINIMUM spendings expenses. Do you know you need to save 6 months Emergency Fund = 6 months sum of your monthly expense? This is because if you lose your job then your income will stop, you cannot pay your insurance premiums (your insurance will lapse, if you have new medical problems, you may have difficulty re-insuring), your house loan payment (the bank will foreclosure your house, & will not pay back all the monthly mortgage payments you paid the bank), your utilities bills (your water & electricity supply will stop) & your telecom bills (your mobile phone will be cut off making you very difficult to find a new job, your internet will be cut off making you very difficult to search jobs online). (Before you invest 10% to local stock market or put money in any investments, you must put aside 6 months Emergency Funds. This is because without savings to turn to, you will cash out your investments when you run out of money. Doing too much transactions on your investments will make you lose money. As each transactions of investments, you need to pay for commissions.)
Credit Card Debt. Call up the credit card company, & re-negotiate the debts. The bank will negotiate with you, because if you declare bankrupt, they wil get nothing back. They may stop future interests, just want the current sum back.
Credit Card Debt2. Let say the credit card debts interest rate is 24%. If you can find a rich friend who will loan you the sum for interest rate 14%, then you will cut down the interest rate by 10%. And your rich friend will invest in your loan for 14% return. It is a win-win. Because your rich friend is very difficult to get 14% return in the market. Make sure you don't default, & pay your friend promptly.
Casino Debt. Let say you owe the casino $1 million for gambling debt. Instead of fighting court case with casino. Try re-negotiate with the casino whether can give you a discount to make the debts into $800,000 for example. The casino will most likely re-negotiate to avoid court cases. As they don't want to pay legal expenses.
Do you know if you do not 100% own a house, then you need to invest all your savings in an endowment fund like CPF to buy that house? Do you know if you take 5% interest bank loan to buy a $135,000 house, you need 20 years to repay the loan + bank interests? But if you save the supposed monthly loan payment & invest in 5% p.a. trust, you can buy the same house in 10 years. (Although some people may argue about inflation rate & property value appreciation in 10 years time. But you prefer to live 20 years in an old house or wait 10 years time to live in the latest technology upgrade house of that value, with peace of mind that the house is 100% yours & you need not worry about bank loan payment.) (Although some may argue, for 10 years saving time you cannot live in a house. That is why I recommend you get married & live with parents, invest 10 years, then buy a house & move out. You need to give your parents allowance anyway, whether living with them or without them.) (Alternatively, half stroke = for 5 years investment + 8.4 years bank loan, instead of 20 years bank loan.) (The US Mass House Foreclosure Crisis have taught us, it is safer to buy the house 100% with a lumpsum than to buy a house on house loan. Let say you pay 25 years out of a 30 years house loan. If at 25 years, you are unable to pay the monthly house loan. The bank will foreclosure your house & take back the house & not refund you the 25 years of monthly sum you pay to the bank.) (If you are renting a house to live, then it is better you buy a SMALL house with bank loan to live. This is because with rent you give rental money & the house is not your, but if you buy a small house on bank loan, the loan money you pay is to buying that house. The trick is buy a SMALL house so that you can afford the monthly loan amount.) (The monthly house loan amount should not be more than 35% of your monthly income.)
If you live in Singapore & do not own a house, I recommend you put all your excess savings into CPF ordinary account to earn that guaranteed 2.5% per year. If you put in S$600 monthly into CPF ordinary account, then in 5 years the CPF ordinary account will reach S$40,000. And with your wife CPF ordinary account of S$40,000, you get S$80,000 to buy a HDB studio flat (i.e. to have monthly excess S$1000 to put in CPF [S$600 part go into CPF ordinary account] you need to do additional job like giving tuition.) *Note: S$80,000 studio flat can only be bought after age 55 in Singapore. THIS IS PROVIDED THAT NO ONE TOPPLE LKY SINGAPORE GOVERNMENT & CPF MONEY IS HONOURED. One thing good about CPF ordinary account investment is that you need not pay commission like insurance endowment funds do. All the CPF investment fund is 100% to receive the 2.5% p.a. from start, unlike insurance endowment fund which only earn 100% of interest at the 4th year. (Making any contribution to CPF, 60% will go to housing CPF ordinary account, 17% will go to stock market & bonds investment by Singapore Government CPF special account & 23% will go to medical CPF medisave account. So you are investing 10% into stock market to save your job.)
It is very important that you get insurance as early as possible. Insurance for death, critical illness & medical hospitalization. This is because when you are young, the premiums are low & you do not have so much illness. As you get older, you get many illness which may bar you from getting insurance. One case is me as at age 41 I have mental illness of hearing "voices" from Angels, I am bar from upgrading my medical hospitalization insurance or getting new death or critical illness insurance or accident insurance. If you do not want or unable to have insurance, you need pure vegetarian & less sugar diet to live a long life & less medical bills. You also must be more alert to avoid getting into car or workplace accidents. Term insurance is the basic cost life insurance & do not have any extra saving endowment component. Accident insurance is insurance that you can claim death benefit, disability benefit & hospitalization bills if you get into accident. Accident Insurance is much cheaper than term insurance. For example, term insurance of sum assured S$100,000 costs S$1500 per year. But accident insurance of sum assured S$300,000 costs S$255 per year. & term insurance premium increase each year where accident insurance premium is fixed each year. BUT accident insurance does not cover death due to natural sickness. Better you get for your children when they are young, when they grow up to be financially independent, they can pay the premium themselves. (I recommend you be VEGETARIAN & TAKE LESS SUGAR in your diet. Then you be healthy & less health problems like cancer & diabetics & high blood pressure & high cholesterol. You go for basic hospitalization medical insurance like BASIC MEDISHIELD which has an excess of S$2000, that means you can only claim excess amount over S$2000, bills less than S$2000 cannot claim. This is good enough as you will go hospital less frequent because of less health problems due to vegetarian diet & less sugar diet. And it is a cheaper & more affordable plan than upgraded medishield plan. The upgraded Medishield costs a bomb when you get older even it pays 90% of all hospital bills & have S$3000 excess. The upgraded Medishield is for those who intended to go ward A or ward B in hospital, if you intend to go ward C, then basic Medishield is sufficient. Then you go for ACCIDENT INSURANCE for sum assured S$300,000, which will cover death, disability & all hospitalization bills due to accidents. This Accident Insurance Plan does not cover death, disability, critical illness & hospitalization bills due to natural sickness. But as you are vegetarian & taking less sugars, you will have less natural sickness. This will cost you only S$152 (Basic Medishield) a year & S$255 (Accident Insurance) a year. That is only S$407 yearly insurance expense which is affordable.)
If you are like me a conservative investor, investing in shares & unit trusts make you unable to sleep at nights during bad times. Then consider CPF extra deposits, fixed deposits & monthly saving accounts. You can get 2.5-5% p.a. from CPF extra deposits. You can get 1.15% p.a. from OCBC monthly saving accounts for 3 years period. You can get 0.55% for 1 year fixed deposit in OCBC. Which are more suitable for you. As you tend to sell shares & unit trusts when they crash, which means you buy high & sell low. Which is not suitable for you to invest in shares & unit trusts if you are a conservative investor. When you die, your family members try to get your money from your bank accounts will suffer a 40% fees in Singapore. Therefore always have joint accounts for fixed deposits & bank & investment accounts. For CPF you will not suffer 40% bank penalty as you can make the money go to a person you assigned. When you invest, you need to account for 40% bank penalty, it will eat up all your investment return. (If you are a conservative investor, it is preferable for you to keep money in the banks. Even it means negative returns, as inflation confirms will be higher than bank interest rate. This is because you will sell low, buy high for shares & unit trust investments when the stock markets crashed. As you cannot shoulder risks. It is better to keep 100% safe in the bank. In the long run, it means higher return than you invest in shares & unit trusts, as you will not sell low & buy high. Alternatively, you can invest in a fixed return funds like CPF government retirement funds or insurance endowment funds for higher returns.)
(If you do not owe a house, save in a guaranteed return endowment fund like CPF to buy that house. If you are paying house loan, all excess money should be to repay the loan to free up the interest expense & to prevent risk of bank foreclosure of the house when you cannot meet monthly loan payment). This is provided you are not a conservative investor (see above) & go for long term like 10 or 20 or 30 years. (Be careful of year 2012 which prophecy north korea will attack South Korea & Japan. Be careful of year 2016 which prophecy the baby boomers will withdraw money from their pension investment causing worldwide stock market decline.) This will save your country stock market, then save people companies, then people jobs, then save your job. (*Be careful of "on paper transactions" = your agency or broker do no transactions = no effect on stock markets. Invest in trustworthy agency & broker.) (*Be careful of "high commission fees" = pay 20% to beautiful female sales people + 20% to manager + 20% to Admin + 20% to CEO.) (*Be careful of "very higher returns than market rate" = since they do insider trading = unethical = they may not invest in the stock market for you = on paper transactions for unit trust managers. Can try buy Index Fund. Buy Red Fund, do not buy blue fund.) (*Then when you need to buy a house or university degree for your children. Take out the unit trust even it is 50% loss.) (Einstein: "a good 10% growth Global World Unit Trust compounding return is more scary than an atomic bomb fission/fusion reactions.") (*Warning! = higher risk does not mean higher return. Best Optimum = balanced or growth. Actual return = average positive return - average negative risk return.) (I will try my best to maintain current stock markets growth so that everyone has something. God gives sunlight & airs to both good guys & bad guys, as an angel I should also. My findings are when stock markets crash, economies are next, then mass stealing, then wars begin because of fighting for foods.) (Best is invest in index funds or index ETF of local stock market or buy blue chip shares that are part of the index. So that all funding goes into pushing up the local stock market index.) (For extra of S$20,000 in CPF ordinary account & for extra of S$40,000 in CPF special account, you can invest the extra into STI ETF [under professional management instruments]. Why not invest in Streetsmart STI ETF [under CPF professional management instruments section] which is supposed to give 10% p.a. on 10 years average with dividends re-invested. You can use Warren Buffet investment style = "when they are fearful be greedy" BUY WHEN THE MARKET CRASH + "when they are greedy be fearful" SELL WHEN THE STOCK MARKET REACH NEW HIGH. Each cycle will make you tons of money. SO LONG YOU ARE NOT TOO GREEDY OR TOO FEARFUL. Alternatively, you just add buy STI ETF when the market crash & hold the main bulk do not sell. As it is reported that STI ETF on average will give 10% return p.a with dividends re-invested. *Pls note Nostradamus Prophecy & Rich Dad Prophecy = there will be small wars from 2012-2016 = the world stock markets will crash at 2016 due to US baby boomers reaching retirement age drawing out their money from investments = world nuclear wars in 2017 due to fighting for foods = 2017-2020 start investing after world nuclear wars = 2020 3 Great Nations will arise, that means 3 Great Nations that are nuclear-wars-free their stock markets will increase greatly. = AS I LIVE to encourage mass investment of useless money into nuclear-wars-free 3 Great Nations stock markets causing new high = and all high-tech MNC will list on nuclear-wars-free 3 Great Nations stock markets = surviving population will move to nuclear-wars-free countries causing their stock market to rise = those countries that are devasted by nuclear weapons will try to fire their nuclear weapons to make the 3 Great Nations become nuclear wars zone = but the 3 Great Nations are protected by God high tech Alien Races so they will remain nuclear wars free. I recommend you do not invest so largely in shares & index ETF until 2017 nuclear wars ended. And invest in nuclear-wars-free countries stock markets only especially the 3 Great Nations stock market. Then you will make a fortune from the low of 2017 nuclear wars to the high of 2020 & beyond in the 3 Great Nations stock markets. *Please note US nuclear weapons launch codes were missing for many months in clinton administration times, therefore satanic blue aliens are able to fire earth nuclear weapons to anywhere on this planet. Therefore no place on earth is safe from nuclear weapons unless the population is pure & good that they are protected by God high tech Alien Races.) (Invest in stock markets. There are mainly 2 styles = Active Investing & Passive Investing. Active Investing = you keep changing your shares portfolio. Passive Investing = you buy & hold. I recommend you 20% active investing + 80% passive investing. Because if you react to the market 100%, you confirmed will buy high & sell low when market crash.) (Diversification. I recommend for passive investors. You should just choose 3 solid companies & invest in them. If you want broad diversification, best you just buy the stock market index funds or index ETF. As the companies inside the market index are all solid companies.)
I think it is a good time to invest in gold. Firstly, US prints too much dollars. Inflation is increasing for all currencies. So investing in fixed supply of gold will definitely win-win. Secondly, there is a fulfilling sign that the Prophecy that stock market will crash on 2016 = the US baby boomers reach retirement age taking out money from retirement funds thereby causing the stock markets crashes. When stock market crashes, gold will go up. Thirdly, Nostradamus predicts 2012-2017 there will be world wars. When there are wars, gold will go up. However, when invest in gold, please invest a bit in your local country stock market to save the stock market, thereby saving companies, thereby saving your job. (Supply = the amount of planet Earth's gold is fixed. Demand = all world central banks want some gold. It is rumoured gold investment gives 43% return p.a. However, gold investment = pure greed, may start wars. Stock Market Investment = save companies, save jobs. I recommend investment max 50% gold, min 10% stock market. *Careful of fake "gold" = it is written in books that there are people who can touch rocks turn them into gold, these "gold" will turn back to normal rock forms in 500 years time. Recently in HK, there are cases of fake alloy gold coins with same density of real gold coins.) (Check out actually buying a gold bar or buying a gold coin from UOB bank in Singapore. INVEST IN YOUR OWN RISK, I AM NOT LIABLE FOR ANY LOSS AS GOLD PRICE MAY GO DOWN.) (*1/10 oz gold coin = S$228 price as on 22/11/2010. 1kg gold bar = S$60722 price as on 22/11/2010.) (*1/10 oz gold coin = S$290 price as on 28/02/2012. 1kg gold bar = S$76540 price as on 28/02/2012. 1kg gold bar bank buy back = S$71293 as on 28/02/2012. THAT IS 17% INCREASE IN 15 MONTHS TIME. OR 14% PER YEAR.) (For gold investment, it is better to get real physical gold for personal storage. Do not invest in gold ETF or gold savings account where you do not keep physical golds. This is because in time of wars or nuclear wars, stock markets & banks will be closed, you cannot get to withdraw your golds when you need them most. If you have the physical golds, you can trade for foods or trade for transport to get you out of the country.) (For extra of S$20,000 in CPF ordinary account, you can invest a small portion of extra CPF ordinary account into gold. Why not, as it is small sum. And your risk is small as it is small amount & the chance of great return is very great.) (Use to invest in uob gold savings account. Now because of near rapture. No longer.)
If you want to invest in managed money funds. Do you know Stock Market Index ETF yearly management costs are roughly 0.09%. While unit trusts yearly management costs are roughly 1.5%, 15 times more. So if you have money to invest, invest in a "local stock market" index ETF, a "global stock market" index ETF & a Bond ETF. Because 1.5% management costs of unit trusts mean that their returns are 1.5% less. Invest in Index ETF, do not invest in unit trusts.
Do you know if you are 40 years old, you should invest 40% in Bonds ETF & 60% in Stock Market Index ETF. If you are 50 years old, you should invest 50% in Bonds ETF & 50% in Stock Market Index ETF. When you get older, your Bonds ETF ratio proportions should be higher. As you getting to retirement age, you cannot expose more risks in stock markets. (In Singapore, price of minimum one lot of Singapore Stock Market Index ETF is $1800, unit price $1.8 for STI index at 1800 points. In Singapore, price of minimum one lot of ABF Bonds ETF is $1000, unit price $1. Broker commission is 0.28% or $25 minimum.)
When stock market crash, if you can take the risks. You should sell away your Bonds ETF & buy Stock Market Index ETF. After the stock markets rebound, then sell away your Stock Market Index ETF & buy back your Bonds ETF. If you repeat these each cycle of market crashes, you will see your portfolio market value grow. This is how Warren Buffet does it. "When the market gets scare, buy. When the market gets greedy, sell." Imagine you are in a shopping centres. When everythings are selling at 80% discounts, do you buy a lots. Of course. Therefore, when the Stock Market Index ETF are selling at 80% discounts, you buy a lots. Then when the shopping centre is selling everything 50% more expensive, do you sell a lots. Of course. Therefore, when the Stock Market Index are selling at 50% extra, you sell a lots. See the stock markets pricing like shopping centres pricing.
Let say the ETF/Gold market prices go up & down & you have difficulties to time when to buy. The best is every month fixed time, buy a bit lump sum like 1000 shares/5 gram for example. This in the long run will average out your investment costs. Then you can invest anytime, & spread the risks. (In Singapore, if you want to dollar average out buying STI ETF monthly. You can try POEMS Shares Builder Plan. Where you can buy minimum $100 of STI ETF a month. $6 commission per transaction. Please note POEMS is a blue company & they will hold your shares for everyone, you are allocate part of the shares with your account.)
Do you know you must increase your number of income sources to be rich. Brainstorm 100 ways to increase your income sources. Select 10 feasible sources, & do them. Why the ocean waters are so big? Because they never look down on small streams & rivers water inputs. And they have many multiple water inputs. Learn the Way of Oceans to become rich.
(*Please note my Pastor says Christians cannot lottery. Please check with your Pastors.) Consider lottery as a possible income source. The trick here is not too buy too much. Buy at least one ticket per lottery, just one lottery per month or week. It is quoted in Bible: "you drop money out of the door, God will drop money in through the window." You need as much windows as possible for God to throw money into your house. Even if you don't strike the lottery. You are providing money funds for that millionaire lottery winners. One Warning! Many millionaires lottery winners go bankrupt after 5 years. The reasons:
They gamble more. They gamble away the whole lottery prize money. That is why from the start. You should only buy one lottery ticket a day. Keep your gambling urge small. Even after striking lottery first prize, keep your gambling urge small.
They Over-spend. Do not buy too many houses & cars. They (husband & wife) should both go for Business Admin degree. Buy a not too big house. Use public transport. And invest the rest of lottery money in gold. Try to maintain same godly lifestyles & standard of living to get another lottery winning from God.
They do failure businesses. You need a Business Admin degree & 10 years of working experience to run businesses effectively. If you don't invest the lottery prize money in businesses, then you will not lose all the money in mis-management. Why not invest in a 100% small house & invest the rest in gold. You will have enough to spend for your rest of your whole life.
They do not repeat their steps to win another lottery. They change their ways. For example, if you a good Christian who buy one lottery ticket a day, do not over-spend your monthly income & keep a job. Then, when you strike lottery, you need to maintain your Christian lifestyles, do not turn to evil ways. *Note: Most lottery winners are because they are good in the eyes of God. That why God gives them the money. To further improve your wealth, you just Repeat Strokes, & be good in the eyes of God further.
Einstein discovers this. The Compounding Power Of 72. Let say your investment returns from your investment is 10%. Then 72/10 = in 7.2 years your investment sums will double. If you able to increase your investment returns to 20%. Then 72/20 = roughly 3.5 years your investment sums will double. Therefore, if you can increase your investment returns by just 1%. It means a lots in compounding powers.
The dollar value will drop by 50% using the calculation of 70. For example, if the inflation rate is 7%. Then 70/7 = in 10 years time the dollar will decrease its value from $1 to $0.50. Know this rule. So that you can guess the effect of the current inflation rate in your country.
For Singapore, there is a retirement security funds call CPF.
Giving 2.5%-5% p.a.
There is a report that most trust funds except gold cannot beat CPF return.
So why not, invest in CPF when the odds are with CPF.
In Singapore, there is a CPF special account for retirement investment with interest of 4-5% p.a, I have transfer the bulk of my CPF ordinary account to special account to earn higher interest. I thought the 4-5% p.a. is fixed rate. I was shocked when my friend told me that Singapore Government may lower CPF special account interest rate to 2.5%. I sincerely hope Singapore Government not do that, because my CPF special account may have problem hitting the CPF minimum sum if interest revise to 2.5%. I recommend to help CPF Board financially, may be for PM LHL to take back his policy of extra 1% interest for the first CPF S$60,000, cancel that, but keep CPF special account at 4%. Lowering to 2.5% will destroy many Singaporeans retirement plans.
I recommend buying Annuities of monthly payout $1000 for everyone when they are old. The older you start annuities plan, the cheaper. Especially when you predict you will live a long life. Save from annuity payout to buy another annuity.
It is said "if you know 3 good business companies, & invest in them, you will be rich in old age." If you want to invest in shares, invest in 3 solid good business companies to spread your risk. Invest in age 21, then forget them until old age 65 Your SS$20,000 will turn to S$1 million (projected from US stock market's shares growth rate & with dividends re-invested). (For extra of S$20,000 of CPF ordinary account, you can invest a portion in shares. Why not invest in solid blue chip company in the STI Index like OCBC, Keppel, SPH etc which are solid companies [under CPF shares section]. Buy the shares especially when the stock market crash to extreme low. Then sell when the stock market reach new high. This follow Warren Buffet investment style = "when they are fearful be greedy" BUY WHEN THE MARKET CRASH + "when they are greedy be fearful" SELL WHEN THE STOCK MARKET REACH NEW HIGH. Each cycle will make you tons of money. SO LONG YOU ARE NOT TOO GREEDY OR TOO FEARFUL. Alternatively, you just add buy shares when the market crash & hold the main bulk do not sell. As it is reported that STI shares on average will give 10% return p.a with dividends re-invested.
Share Margin Financing = use your current share assets to borrow money to buy more share. Why most people got burned when market crash is because of share margin financing. If the share price keeps increasing, then it is ok. But if the stock market crash, your share margin will call. That means forced you to sell the share at a huge loss. If you do not share margin financing, you are not forced to sell your shares. You still can keep the shares at low price, waiting a few years for them to go back current level. As stock market always crash every 4 years losing value of 80% in a month, you just do not know when the stock market will crash. It is better to own the share 100%, instead of using borrowed money to buy the share.
If you want to become rich, you need to own properties assets. Collect rental as the properties assets prices increases. But you to build an Emergency Funds Reserves just in case you cannot get rentals & need to pay the bank the loan installments.
To invest in unit trust after you 100% own a house. Do not go for financial advisor that charges commission for what they sell you. Go for Financial Advisors that charge a performance fee for good performance of growing profits. In Singapore, google search 'iFast FA' (FA = Financial Advisors). iFast seems to recommend performance fee for good performance & not sale commission for products sold. And you can switch funds free without any switching fees. I AM NOT LIABLE FOR MONEY LOST, as I have not tried iFast FA, I ONLY INTEND TO TRY AFTER I 100% own a house. But after reading iFast magazine, I think iFast FA is more bias towards unit trust performance than unit trust selling. There is now future Laws in India, UK & Australia that Financial Advisor only charge a fixed fee & not sale commission fee.
If you want to become rich, marry right. Either marry a wealthy spouse who has many assets. Or marry a graduate who has a high income. Or marry someone with good financial habits, so that you couple can accumulate wealth together. If you marry someone who is in debt & has low income & has poor money knowledge, you will definitely become poorer.
Divorces are costly affairs. When you two marriage couple split out, it means both of you will need two houses to live, instead of one (cost more money). Also, means two cars instead of one (again cost more money). If you have arguments how to split your wealth or children, you will go to lengthy & expensive court cases (again cost more money). The male side still need to pay living expenses to his wife & children (more money). A total finance disaster. Marry right the first place. Do not land in divorce.
If you are debt free, you do not afraid of losing your job. You do not afraid of changing your job to lower salary. You are more free. You are more able to make more life choices. You can have a good night sleep when something critical happens. Clear all your debts like credit cards, housing loan & car loan. Spend within your means = use debit card, buy smaller house & buy older smaller car.
For example:
100% Stock Market Index ETF: 0% Bond ETF. When stock market P/E ratio less than 15-25.
0% Stock Market Index ETF: 100% Bond ETF. When ONE of the stock market P/E ratio is more than 45. (*Note: when one of the stock market has a P/E ratio of 50, you need to start selling. The recent stock market crash at Aug 2011 when China stock market P/E ratio reaches 50, while S&P P/E ratio is around 27.)
This will reduce money traps in market crashes & increases more money to invest when market reaches bottom. For example at 0% STI ETF: 100% Bond ETF, you have all money in Bonds. When market crashes at say stock market P/E ratio 50. You just use all the Bond money to buy stocks STI ETF when P/E ratio reaches 15. Cycle repeat.
You can find the S&P & other stock market P/E ratio by Google Search 'S&P P/E ratio' & 'stock markets P/E ratio'.
Invest in high dividend stocks, bonds & real estate, so that you get a constant flow of income. 4% Rule = it is said if you take only 4% per year out of your money portfolio, the money portfolio can last forever. You can live on the 4% per year of your money portfolio until you die, & leave the money portfolio as an inheritance to your offspring.
If you draw daily salary, budget an amount to save daily e.g. S$20.
If you draw monthly salary, budget an amount to save monthly e.g. S$1000. And save that amount or invest it at the beginning of the month. They call it Pay Yourself First. Pay Yourself First = when you get the salary, invest in a lump sum first (pay yourself first), then pay the bills, if not enough money, find ways to raise money like working part-time.
(Last time I use this method as my salary is monthly basis, now I expense tracking then budget accordingly as now my salary is daily basis). Run a discipline Budget System. If you want to buy something, arrange money budget for it.
At least $3000 Emergency Fund. To safe buffer you before getting new income.
1 Month Budget. I budget plan my money for 1 month. For money after 1 month, I leave it to God.
1 Month Food. Once my payday, I stock up 1 month food supply money. May be 30 S$10 note for 30 days use.
1 Month Transport. Once my payday, I stock up 1 month transport expense to go work. Deposit S$100 lumpsum into transport fare card.
1 Month Communication. Once my payday, I stock up 1 month for internet, website & handphone expense. Put aside monthly bills amount.
I recommend Excel software to know where all your money go to.
For things like store-value cards, just remember the nearest dollar, ignore the cents. Need not Excel.
For things like bank accounts passbook, update immediately after transaction to check transactions.
After you track your expenses, develop methods to cut down high expenses. Like budget system. For example, I discover after Excel Financial Tracking, I spend S$24 some of the days on foods & drinks in one day. So I develop a S$12 food daily budget. I will put aside S$12 daily inside my wallet for foods & drinks. I will control my spendings on foods & drinks not to over spend those money I put aside daily. (*Note: groceries & treat friends foods & drinks are not included in the budget so that it is more feasible.)
Increase Your Income. Sell your ideas to get incomes. Improve your earning capabilities like education.
Decrease Your Expense. Wisdom Cost-cutting. Simplify your life. Ok your desires.
Set Goals & Do. Allocate your earning & spending budgets, go for them.
Consider 2, 3 Jobs. I have heard of a Singapore Widow who does 3 Jobs to bring up 3 Children to become University Graduates.
Eat Bread & Water. 1 Taiwan Reporter who loses hundreds thousands of dollars in a bad stock IPO. For 2 years, she & her husband only eat cheap plain meals. She writes as many essay submissions to all newspapers & magazines a day. In 2 years, she repay her bad loans & get their house property back. From this experience, she knows that a person is capable to earn thousands of dollars if you know push yourself to the limits as you have no other way back.
Invest In Yourself. 1 Taiwan TV Presenter. Instead of investing in stocks or property which after up & down, earning a bit return. Why not invest in a skill (computer), language (Japanese), knowledge (management) to add your earning capability. She says she has a friend whose husband is very skilled in house design, this couple team redesigns & rebuilds houses & resell them making good profits. Turn your interests into income. For me, I like to invest in books (that give me additional branch of knowledge) & monthly internet broadband subscription (assess to the whole Internet Library of Knowledges once you know the keywords to search in the Search Engines).
No Bad Habits. The smoking, gambling, drugs, prostitute, casinos = all cost very expensive money. And when these habits become bigger & bigger, you will bankrupt or go to jail.
You need 3 things to consider financial well-off.
Protection = a fully paid house (may be small, for parents, self, spouse & children). Must mortgage insurance = pay the balance house mortgage when the breadwinner dies.
Enhancement = a fully paid education (ok business degree, include parents, self, spouse & children).
Retirement = $1000 monthly annuity for lifetime (cheap at old age, include parents, self, spouse & children).
Invest In Healthy Foods. So you do not incur expensive medical costs because of malnutrition.
Invest In More Foods. More energy to get more money & foods.
Spend Finish Your Money. Leave your future to God. One sister asks Mother Theresa: "how come you give all the foods to today poor hungry people, what about tomorrow for us?" Mother Theresa: "leave tomorrow to God."
Invest In Assets. Invest in a company, patent, website etc to get more money to help people.
Invest In Yourself. From English + Mathematics, to business certificate, to diploma, to BBA, to MBA, to PhD.
Invest In Jobs. Have many multi-stream of incomes. Still give high-flyer quality works performance for all bosses.
Compassion. Think business ideas for others.
Courage. Dare to earn.
Save For Projects. Future budget yourself for a Temple House, a Religion Car, Children University Education etc.
Big Money Is From God, Small Money Is From Saving.
Lower all risks to minimum so you need not insurance.
House Fire. Install '8 Hours Fire Resistance Doors' & fire extinguisher/s. So when fire, use the fire extinguisher. If fire too big, shut that room door close & call fire engine, fire at most only damage 1 room. Manageable loss.
Medical Health Costs. Vegetarian + minimum sugars = minimum health problems + minimum health costs. You can buy deductible co-insurance health insurance or no need health insurance because of healthy life style.
Retirement Longevity. Invest $50,000 for 29 years at 5% investment rate. At 65 years old, you can take out monthly $400 to spend without decreasing that sum at that old age or S$1000 payout per month annuity.
Death With Dependants. Invest & pay finish the house totally (as fast as possible) so that after you die, your family dependants need not worry about house loan payments (the main bulk of monthly money needed). Or you buy mortgage insurance from NTUC which will pay finish the house loan when the breadwinner dies.
Earthquake & Typhoon. Teach Bible goodness as much as possible to local community & on internet, to prevent God Disasters.
Invest Huge Emergency Funds. So that you become wealthier each year & planning all life event changes.
No Adultery. No adultery to have blessed good looks so as to get a good high-paying job.
Filial Piety. Filial piety is the basic & most easy way to cultivate Virtues. Jesus Christ: "honour your parents (when they are right). Leave your parents (when they are wrong)."
Donate. Donate a small part to a good Religion to get God Blessings. Jesus Christ: "build treasures in Heaven."
No Loan & No Credit. Buy 100% upfront. If you cannot afford it, don't buy it. Do not live outside your means. Do not over-borrow. Use debit card instead.
No Debt. Pay off high interest 24% p.a. credit cards debt off as fast as possible. Pay off house loan as fast as possible, as if you stop making payment to the monthly house loan, the bank will foreclosure your house & you will not receive a cent back from all the past monthly house loan sum you have paid.
No Gamble. After long poorness with Cultivation, God will bless you with Riches. But you need to help yourself with a new job, new business idea etc.
No Bankruptcy. "Negative money". You guess what homeless people do in their past lives. Bankrupt!
Simplify Your Living. Cut wasteful living.
Lessen Greed Desire. Do not let your greed desire grow too big.
Poor 95%. A Study show that 95% of population cannot earn enough for a basic living = food, house, education etc. Most likely you are 1 of the 95% like me. You are not alone.
The satans use money systems to control us. Use enemy weapon to kill enemy. We can use their satanic money systems to kill & trap them. The satans are actually very stupid & they fall under their own weapons. The trick is we Angels must always remember money are still stupid tree barks (papers), still stupid oil products (plastic notes), still stupid stones (diamonds), still stupid metals (gold), still stupid harddisk space of 1 & 0 (bank accounts). We Angels do not money for power or pleasure, we money for foods for everyone, we money to buy training & technology to win back & hold our planets.
When I accept God, Jesus Christ & Holy Spirit into my life (& my body). My life (& my body) are filled full & have no more vacuum for money investments or gold investments. I read the Holy Bible earnestly & with wise understanding. I become wiser, & do not look to money & gold so importantly as before. Your spiritual life will increase, & your materialistic desires will decrease. You will no longer despise yourself for being poor, but feel rich with those new found spiritual gifts & blessings. Try accepting God, Jesus Christ & Holy Spirit into your life (& your body).
Our loved ones are the most valuable assets, much more valuable than your house, gold, stock markets shares & money. Do not talk about money all the time. What is more precious than money & money are useful, is when our loved ones are safe & well. Jesus Christ: "what is the value of you earning the whole world when you lose God & your loved ones." Give thanks to God when you still have your loved ones still with you. You earn more money is because you can exchange money for foods, clothings & housing for yourself & loved ones. If your money cannot exchange for foods, clothings & housing for yourself & your loved ones, what is the use of your earned money. If you earn the whole world, but you do not have a single person who loves you, what is the point? So having someone who cares about you is more important than money. Your loved ones are more valuable than your house, gold, stock markets shares & money.
Revised from Book 'Experience God As Your Provider' by Brian Kluth & Stan Guthrie.
God Ownership. Understand God creates everything & owns everything.
Transfer Ownership. Transfer ownership of your house assets & investment money funds to God. Become a good steward.
10% Tithe & Offerings. According to Bible, you need to give 10% of your income to God's Works. Less than that is stealing from God.
God First. Set aside God's money first, before spending the rest. Do not touch God's money, even you have spent finished the rest.
Cheerful Giver. God loves a cheerful giver. Give & forget about your giving. So that you mentally also let go (give) of the money given.
Blessed Resources. Use God's blessed resources effectively. Resources = your mind, your skills, your knowledges, your assets.
De-Clutter. Give unnecessary things to those who cannot afford & need them. Alternatively, sell them & give the money away.
God Provides. Understand God's Providence. God may give you free housing through your mother, free foods through your wife. Notice.
God Give Someone Else. According to Bible, God will give those unrighteous people's money (letting them die) to His righteous People.
Treasures In Heaven. Jesus Christ: "do not save money in earth treasures which rust, save in God Heaven treasures where they will not rust.
Hidden Treasures. Be surprised when God gives you hidden treasures (extra money) hide in "dark corners". Make good use of them.
Contentment. Content that you still have your health, your hands, your legs & your loved ones with you.
Help Poor. Help the poor. Give foods, share your house, give money, share your car to fellow poor Christians.
Wise. God says wise people will be rich both spiritually & physically. Read Bible often, so that you know what God wants you to know.
Debt-Free. God says borrower is a slave to the lender. Be debt-free, clear all credit cards debt, housing loan debt & car loan debt.
Downsize Desires. Downgrade to a smaller house, a smaller & older car, so that you can give more to God monthly.
Save For Future. God says a wise man saves for the future, a foolish man spends finish all his money.
10-10-80. 10% income to God + 10% income to Saving + 80% income to Living. Adjust the living to fit 80% of income.
Manage Well. Manage your income & expenses well. So that you need not worry about the finance.
Faithful In Little Things. God says if you are faithful in little things, you will be faithful in big things.
Work Lesser. The more you own & spend, the harder you need to work. So own less & spend less.
Avoid Temptations. Avoid temptations to spend. You cannot afford to go near that person or into that situation. If you do not have the money.
Godly Life. Live godly lives. Sinless life means no prostitute, no gambling, no smoking, no alcohol which all costs huge money.
Read Bible Proverbs. Read Bible chapter Proverbs. The chapter teaches a lots on money management & matters.
Little By Little. God says dishonest money dwindles away, but little by little money become a lots.
Financial Status & Goal. Know your financial status like balance sheet & income statement. Know your financial goal.
Good Planning & Hard Works. God says good planning & hard works lead to richness.
True Riches. Know what true riches in your life are. Not the temporary riches that will fade away in time.
God Take Back. Understand that your riches can be taken back anytime by God. Fear God. Lead a righteous life.
Daily Bread. Pray for daily bread, instead of big riches. Because God knows during famine you cannot eat gold.
Follow Jesus. Jesus: "follow me." Do according to what Jesus says in the Bible. Be a good Christian.
Seek God Kingdom. Jesus: "seek first God's Kingdom. Then all your needs will be fulfilled."
Want More Money. When you have S$100,000, you will want S$500,000 & so on. It is an endless pit.
Library & Park. Go free public library & free public park more often in free time. This will save on entertainment fees.
Find A Job. Update your resume, go for all employment tests & interviews to increase your chance of getting a job.
Not Believe In Stock Market. Do not believe in stock markets (which God may crash anytime), but God's Grace.
Trust God. In God we trust. Trust God in bad times & good times. That God is always there for us.
**Amazon link of the Book below.
Summarized from Book 'Keys To Financial Excellence' by Phil Pringle.
10% Tithes To Receive Blessings. All those billionaire Bill Gate Jews of their time, like King David, King Solomon, Moses, Abraham, Job, Isaac, Paul who are super-rich. Their secrets = they give 10% Tithes to receive Blessings from God.
Church Needs All To Give 10% Tithes. In an Old Testament war to take the Jews' promised Lands, a battle was defeat with about 36 Jewish Soldiers dead. When they ask God why, as they have been winning Battles all these time, why now a defeat. God: "because in a previous battle, one of your jewish soldier, steal from my treasury (i.e. God has specified that all the gold & silver win in all the battles should be put in God's Treasury) by burying gold items in his secret place. That jewish soldier is put to death & battles begin to be won again, when they do not steal God's gold & silver. From this story, it is implied, in a Church if a person steals God's gold (do not give 10% Tithes), then God will punish the whole church body, by not giving His Blessings. All need to cooperate & not steal from God.
Include Increase In Value. Your 10% Tithe should include not only your income, but increase value of selling shares, house or car etc. Also 10% of gifts value from other people, free foods value from Church etc. You must be very careful to get huge Blessings from God.
Tithes Now, Do Not Wait To Become Rich. Do not wait to have a million dollar then you 10% Tithes. 10% Tithes now your current income to have that million dollar.
Tithes Is Like Planting A Seed In A Ground. Good Seeds = honest money. Good Grounds = reliable Church who does not mis-use funds. Water, Sunlight & Fertilizer = to get Blessings from God, you need more than just wait for Blessings to come after you Tithes, you need to be hardworking, has a job, a Ebook, a Website etc, has a window for God to throw the money into your house.
Good Offerings. You reap what you sow. In the Book, the Author mentions that he gets spoiled guitar donations, when He donates a spoiled guitar to the Church. It is when He donates a good Guitar to the Church, then he gets many good Guitar donations. Give good items to Church & fellow Christians, should not give spoiled or worn out items.
Tithes Get Blessings Testimony. If you 10% Tithes the Church, & you get huge blessings. The Author recommends the Church to encourages you to come up with testimony, to encourage other people to Tithes also.
**Unable to amazon link the Book below as the Book is not available in Amazon.