Financial Literacy 101 - Lesson 1

A friend of mine asked whether I have read the book entitled Rich Dad Poor Dad by Robert T. Kiyosaki. It had been on my reading list but never had the opportunity to really have it in my hands for reading. So opportunity came knocking and here I am leafing through the pages. There are six lessons to be learn (or rather unlearn and relearn):

Lesson #1 - The Rich Don't Work For Money
Lesson #2 - Why Teach Financial Literacy?
Lesson #3 - Mind Your Own Business
Lesson #4 - The History of Taxes and the Power of Coporations
Lesson #5 - The Rich Invent Money
Lesson #6 - Work to Learn - Don't Work for Money

wrapped in 10 chapers of the book. I read through the first two chapters and I totally agree with the author that most of us have yet to master our own finance. We are the slaves of finance by working for money and not the other way round. All this while I have been doing it wrongly not because of insufficient intelligence but rather because of insufficient information.

I have been doing exactly like what I read from the pages. This is an eye opener, a major shift and a revolution. Whatever foundation or beliefs laid or instilled by my parents to me are overturn by this finding, at least financially. It has nothing to do with faith. I am going to restructure the whole way of handling my finance and look at it from a new and fresh perspective.

Financial Management: House and Bike for Sale!

We learn to count since our childhood days right through our formal educational years. Creating a balance between the two opposites is everything like the yin and yang, worldly task and the world after, how much you eat and how much energy you need as well as what you need and what you desire. Achieveing a balance in life regarding your actual needs and what your heart desires can either be a straightforward or gut wrenching task. That depends on how discpline you are or how creative you want to be.

Discipline means you have to write down the items you need on a list when you go out shopping thus avoiding the possibility of buying items not on the list. Some go to the extent of writing all the items needed and all the items desired and cancel out items not needed or items they can do without, that is after much consideration, explanation and open minded intellectual discussion.

Creative means you can beg your partner/spouse in letting you have that all multipurpose-rust-free-one-size-fits-all tool box that you have always wanted, that could help you with the fix-it chores (which you actually have no time to do) around the house. Or the all multipurpose-easy-cleaning-one-dish-for-all oven that could let you prepare a variety of meals with one single cooking that could save a lot of cooking time which means you have more time to spend on the family.

Creative here can also mean you can have a garage sale:
Of items you do not need anymore which can still be put to good use by others for example your children's clothing which they have outgrown. The stuff that do not fit them anymore. Yes you may have bought them in good memories of your kids but you will get that chance of buying and deciding clothings that is best for your kids for some time to come. Why keep your wardrobe piled up with clothings you/your children do not use anymore? Why keep boxes of old clothing piling up in the attic when you can have more space? Remember, what is junk to one is treasure to another.

Of items that you have twice as much for example when you receive the same kind of gift from different guests, two-of-a-kind items; who needs 3 rice cookers of the same brand and of the same capacity? who needs 3 irons when there is only one family in the same household (unless you live with your parents!) This also holds true especially for the newlyweds. If you do not want to sell of the items, you can also give them away as gifts (you can save money on that you know), ensuring you do not give the item to your friend who gave it to you i.e. its original giver.

Of items you can do without but you have received them as gifts, for example the bread maker. Some people would say that why sell it of when you got it for free/as a gift. They would surely say that who knows you may need it some time in the future. Be frank, logical and rational to yourself. You hardly cook, you hardly bake your own bread. Wait a minute, you do not even take bread. You can use the money through the sale, for other item that you really need. You'll find the money in your pocket is better than all the clutter in the house.

Of items that have been lying around for sometime and not being used, for example the books that you have read, not once but a couple of times which are not in your favorite collector's items list. Unless you are building your own private library, the books can be go on sale. Always look on the bright side. You let others enjoy what you have read when they buy the books (not before i.e. reading from cover to cover during your garage sale). And you get to buy new books of interest with the money from the garage sale.

There a lot of other things that I can say about being in charge (wisely) of your finance. What I have said would be enough for the time being though I may well write on the subject again. In respect to that I am announcing a sale of two items of my own (to start the ball rolling for the garage sale):

First item for sale is:
A 630 square feet low cost apartment with 3 rooms, a bathroom and a toilet. It is located on the second floor of a 10 floors building (if I recalled correctly). This is an intermediate basic unit. The building is equipped with elevators on each side of the building. The area is in Bandar Baru Klang and less than 10 minutes drive to KL, Klang, Port Klang, Federal Highway or the NKVE. Selling fast at its cost price RM50,000 or neareast offer

Second item for sale is
A 2001 Suzuki VS125 scooter. Silver colored, in good condition with scheduled service, proper maintenance and handling, with original parts. Never involved in any accident and looks like a new bike. Selling fast at the price of RM3000 negotiable

All enquiries can be directed to this e-mail: lanhijau@yahoo.com. This is also my way of checking whether blogs can be a new tool for marketing, for business ventures or could be the next in-thing for business.

Friends

There was an office event a fortnight ago. The organizer or rather the person-in-charge had a miscommunication somewhere with a friend of mine regarding the running of the show. She was mistaken my friend as me and that had been settled right on. As my friend was entrusted with a task for the event, I was still not involved as I had something else to attend to.

Later when I got to know that my task was cancelled, being a good friend I am, I informed him. Initially I had already agreed to help him out with his task, in preparing the speech that is. I offered my assistance though previously there was already a task in hand. Instead of asking me to assist him with the task he practically wanted me to take up the task and let him off the hook. What a friend! He had the cheek to blame me for the task he got saying that the task was actually mine to take. He said that he accepted the task on my behalf and the task was rightfully mine. Since when does a person accepts a task on behalf of another person. Though I had taken similar tasks in the past that does not entitled me as the owner of the task. A true friend surely would not want to trouble another friend with more work. I have never accepted tasks on his behalf and I expected the same. I truly do not get this.

He let of his steam in front of my office and even said that he regretted helping me out. What help? Does he mean accepting the task on my behalf as helping a friend? Does putting me to the task while he backed out is defined as helping me? I was dragged into the picture without me knowing. I did not know anything about the task yet the organizer had been telling my friend that I had all the details. I went to one of the meeting still, and in her exact words, the lady organizer said that I was never involved. They just needed me to help out my friend with the speech preparation, basically work behind the scene. Later I went to my friend’s room and explained the whole situation clearly but did he listen. Nope. I was never at fault and I would never stab him in the back. Being in the office/organization longer than I am, he should know better how the seniors act and carry out their task or duties. Juniors like us always being pushed around and taken advantage of. He should know that. We should outsmart them and stick together. But did he listen? Nope. After all that explanation, after all that I had done to bail him out, he still thinks that I was at fault. It is easy pointing fingers to blame others. He just wanted somebody to blame and sadly his fingers are pointing at me, a friend he had known for nearly a decade. What a friend he is!

Knowing that he was uncomfortable and somehow trapped in the task, I tried to bail him out. This was all after he let off his steam. I told the lady organizer that this was too much. She had better appoint somebody else neither me nor my friend, as things were going to get worse. That lady did not listen. I got her to at least ask him whether he is still on for the task or is he uncomfortable with the job. The lady asked him and he said he is ok with the task. Now why would he do that? I thought if he is not ok with the task, just say so. I had done my best to let him off the hook, both of us. Now he said he wants the task. I am confused. He had the second chance to back out but he did not. Later he said that he wanted to look good in front of the seniors/management. And if that is the case, do not blame me. Do not go around with that sour face. Why should he blame me of the task when he wanted to look good? Why still blame me when I am not the one who appointed him to the task? Why blame me while he accepted the task when he had the chance to get out? Now my friend and I are not on talking terms. At least he is. I am still the same me like before all of this ever happened. Well what to do. He simply can blame me over something that I did not do, when we have been friends for 10 years. Where is justice in that? He should know me better as I know him very well. Hopefully, one day he will realize his mistakes and change for the better. However, I am not going to be bogged down by this petty thing. One thing for sure, Life goes on.

C’est la vie

Patience pays off

Finally what I have been waiting for is here. The waiting game is over and I have received what I was expecting all this while. In fact it was more than I could have imagined and after this everything comes pouring in one after the other. My money.

I have managed to settle a lot of bills, came at par with the loans, settle this and settle that, pay this and pay that and the bottom line is I managed to put myself in the black again. What a relief! It's like a big rock has been moved off me. On top of that settlement, I managed to put some for my family holiday trip to a neighbouring country; plane tickets, food and hotel, pocket money and etc. I even have enough for mom, mys sisters and brother, nephews and nieces, aunties and uncles and the less fortunate. The best part was even while using the money that I already received, money from other sources (legal, mind you!) also came pouring in. And the best of all things is that I managed to put aside some huge (by my standard) savings and still have some left for anything that could crop up later. At the same time, other offers for that could churn money came knocking at my door as well.

I know that I should not be blinded by the amount of money coming in lest forgetful of the trying times. I should be grateful and spend wisely or rather it is better to be safe than sorry. I might never know when I would be in dire need of money again or when will I get to pass the path of wealth again.

Money, money and more money...

An interesting topic indeed. Though almost everybody loves money, some may think the opposite as the saying goes "Money is the root of all evil." So some may avoid it albeit not completely, some may go for it, some may seem contend with it and some seem could not get enough of it.

As for me I don't really crave for more money but if I have them it would be better. I think I am a simple person with basic needs and not something out of the norm. I consider myself neither a frugal nor spendthrift person because I spend money wisely. But it seems that the money I have is not enough. I do try to look for ways and means to generate more money just to make ends meet but the money earned is not to my expectation (even though my expectation is not much). I do not want to sound ungrateful.

Maybe this is one of those times where God is testing me of my patience and my virtues. But I am in a dire need of money. Luckily I don't resort to anything illegal or immoral. Sometimes I am in the position waiting for money to be deposited and at the same time things that need you to spend money on, come pouring in. I just moved to a new house and still there are minor things to be done but I can't attend to them because no money available just yet. Around the same time, I got a ticket for driving without a valid licence (expired 3 weeks ago, didn't realized it). The price of petrol just increased which makes things worst. That spells extra on the expenditure list. Now my son is going to pre-school, I need money for the fees, bus fares, computer lessons. The maid needs to be paid. The investment is in a legal problem. The car needs servicing and so does the airconditioner unit. Missed out on 2 months house installments. Study loan, Credit cards bills, Utility bills. Need to pay for this and that. The list goes on and on without saying. A lot of things crop up at the wrong time.

But one thing I can look forward too is that money is coming in. Hopefully I can settle a lot of things when the money comes in and I can have a peace of mind.