Simple Financial Guide

Buy the car not the models!

Simplicity Sells

Complexity repels.

It’s the simple little things that take care of the big things. Like the old saying goes: Take care of the cent & the dollar will take care of itself. In like token, when it comes to selling, it is the simplicity of presentation that sells. As we say in sales “Keep it Simple” – the KISS formula. Complexity has the tendency to repel.

This unparalleled global financial crisis has brought about enough suffering & pain. In the wake of it, we need to be prudent to avoid monetary pitfalls & credit traps. Be aware & warned:

• of the sordid financial history of the Americans.

• shoddy practices of credit card companies, lacking in interest rate caps, hidden fees & invisible small fine prints.

• overextending debts out of all proportions in borrowings over income.

• when banks & financial institutions plainly offering loans to unqualified customers. Greed has no compassion.

• establishments offering “buy now pay later” schemes. Such luring credit trap is easy to fall for!

• don’t be flashing around with a string of credit cards . . . one good one is more than adequate for all purposes & needs, if properly managed.

In any monetary transaction, there’s always the question of repayment & having the ability to service the loan. Spend like hell & living like crazy is no way to go. It is not as though the sun will always shine brightly, we need to set aside for the rainy days. The banks are fond of providing you with the umbrella with the umbrella when it’s sunny outside, but forcefully withdrawing any shelter when the rain comes!

One simple formula that works for me is to heed about living within the budget. Living frugally rather than extravagantly is the golden rule. If your salary or income is moderate or irregular as most commissioned agents are, this wonderful simple budget tip will go a long way:

1. 10% Pay yourself. Money reserved for savings, exigency &

   retirement. If left untouched can build up enormously!

2. 20% Pay others, debts & creditors.

3. 70% Daily spending expenses.

It is ironic that throughout our working life, we pay others for this & that, but never paying our own selves. Think about it! This indispensable “money machine” can break down needing attention & repair – but often neglected or ignored.

To be forewarned is to be forearmed. Don’t ever think of being a ”James Bond” in Royale Casino . . . for a fool & his fortune will soon part. Windfalls through winning the Lotto or Lottery are just dreams of fancy. It’s just another form of gambling! You’d never win.

Be frugal. Don’t be extravagant.

Think necessities observe priorities.

Reduce debts, take away the stress

Budget well your cash for peace & rest.

Paul Chong

A Chinese by Descent

An Australian by Consent.