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Transcript of Money Slave to Money Master
Money Slave To Money Master Page 1
Money Slave
To
Money Master
What Your Teachers, Parents and
Banks Didn’t Tell You!
Money Slave To Money Master Page 2
DISCLAIMER AND/OR LEGAL NOTICES
The information presented herein represents the views of the author
as of the date of publication. Because of the rate with which
conditions change, the author reserves the right to alter and update
their opinions based on the new conditions.
This report is for informational purposes only and the author does not
accept any responsibility for any liability resulting from the use of this
information. While every attempt has been made to verify the
information provided here, the author and their resellers and
affiliates cannot assume any responsibility for errors, inaccuracies, or
omissions.
Any slights of people or organizations are unintentional.
Money Slave To Money Master Page 3
Table of Contents
Introduction 4
Chapter 1 : Money and I
During Primary School
During Secondary School
During University
7
8
11
14
Chapter 2 : Debts and I
Working Life
My First Car
My First Credit Card and Second One and Third One
17
17
19
24
Chapter 3 : Managing Debts, Efficiently
Why Do We Hate Monday Mornings?
List Out All Debts
Pay Debts with Lower Interest + 10% more
Pay On Time
Reduce / Stop Usage / Delayed Gratification
28
28
29
31
32
33
Chapter 4 : Savings
Pay Yourself First
The Eighth Wonder of The World
35
36
39
Bonus Chapter
10 False Beliefs About Money
44
Recommendations
Websites
Books
46
47
Money Slave To Money Master Page 4
Introduction
Money Slave To Money Master is a book that tells a true story of the
relationship of the author with his money.
Reading this book you will learn how to:
Identify your relationship with money
Manage your money better
Create wealth using the power of compound interest
Maximize your income and minimizing your debts
What this book is not intend for:
× To provide financial services advice
× As a solution to serious debts. However, the tips in this book
should help.
Money Slave To Money Master Page 5
This book is intend to remind you of the things that you already know,
however the institutions that like to lend money are happier if you,
like many others have forgotten.
The institutions that we borrow from do so to make a profit.
They make a huge profit out of us. If you consider some of the
statistics on bad debts you will realize just how much money they
make to accept risks such as bankruptcy at young age.
―THOSE under-30 are the leading age group for people declared
bankrupt due to credit card debt. This startling finding reveals the
other dimension to the general problem of credit card debt which
has now reached RM23.3 billion.
―Out of the 3,548 people declaring bankruptcy by credit card, 1,774
belong to those aged 30 and below,‖ said Datuk Abdul Karim Abdul
Jalil, director-general of the Department of Insolvency Malaysia. That
works out to a staggering 50 per cent.‖
Money Slave To Money Master Page 6
It is only when you understand this money making principle that you
will be able to take that same principle to reduce your own
borrowing habits and become totally debt free.
Last but not least, take your time when you read my story and when
you have finished reading, don‘t forget to take action!
Towards Being A Money Master,
Andrew Stephen Lau
Money Slave To Money Master Page 7
Chapter 1: Money and I
I was born in a popular town called Ipoh. Both my parents are
teachers at that time. Due to family obligations, we moved to Bukit
Mertajam, Penang, some 2 hours from Ipoh, to stay with my
grandmother.
My father then became owner of a bookstore together with my
uncle. My mother is still a teacher since then. My grandmother was
the one who took care of me and my younger sister when my
parents are at work.
If my memory serves me well, my first encounter with money was
when I was in Standard One, primary school. That time, a plate of
rice with minced char siew (barbecued pork) only cost RM0.40 at
the school canteen. Surprisingly, soft drink back then is more
expensive than that plate of rice! RM0.50 I remembered.
Money Slave To Money Master Page 8
During Primary School
I still remember a few incidents where I got ripped off by my
classmates.
I have purchased a piece of ―Garfield‖ sticker that is a size of my left
ear (for your information, both my ears are the same size) for RM0.50.
My pocket money that time was only RM0.50, just enough for a plate
of rice with minced char siew and RM0.10 to save.
My mother was furious when she found out I had to starve for that
piece of sticker. She said, ―Why you so stupid? You got ripped off!‖
(Of course that weren‟t the exact words she used as it would be too
tough for a 7-year old boy to understand. But you know what
happened, ya?)
To me, money is just something that can exchange for things that I
like at that time. Although that plate of rice is one of my favourite
food during recess, I liked the ―Garfield‖ sticker more as it was huge.
Most of the stickers I had at home were as small as a RM0.10 coin.
I also had an experience where my friend‘s mother actually came to
school to ask me to give back the RM1.00 I borrowed from my friend
Money Slave To Money Master Page 9
a day before. I was going to give him back the next day but his
mother took action first.
To me, back then, money seemed to be very important and I
became very afraid of money, especially keeping it.
I was appointed as the treasurer for my class fund. We collect
RM1.00 a month for miscellaneous expenditures such as
photocopying extra worksheets, class year end party and such.
Every day I go to school with fear that I would lose the class fund. I
bring it to school and lock it in the cabinet which only I had the key. I
take it out and bring back home end of the day. I was very scared
when the class fund got more and more every month.
I ‗resigned‘ as the treasurer one day when the class fund reaches
more than RM100. When my class teacher asked why, I just couldn‘t
tell her the truth. I said I just don‘t want to be the treasurer. Thank
God she appointed someone else.
When I think back, I wasn‘t very savvy with money during my primary
school years. In fact, I was even afraid of keeping money! Nothing
Money Slave To Money Master Page 10
was taught to me about money by my parents or teachers, apart
from the usual mathematic operations.
My thoughts about money during primary school days:
Money is to exchange for things that I want but it is also causing
trouble!
Money Slave To Money Master Page 11
During Secondary School
Then I grew up (duh?) and there I was, enrolled in one of the famous
secondary schools in Bukit Mertajam, Penang.
As usual, I didn‘t take up any of the positions offered in class (class
monitor, assistant class monitor and especially treasurer) because I
was simply afraid of taking responsibilities. However, things started to
change as I was entering Form 2.
At that time, my dad was a salesman because the bookstore has to
close due to strong competitions (the arrival of MPH, Popular
Bookstore and such). Besides books, my dad also sells some other
related stuff.
It was 1997 when Malaysia was struck with haze because of the
forest fire in Kalimantan. My dad had order boxes of facial mask for
sale. He gave me 2 boxes of 50 each to be sold at school. I was so
nervous but I had to do so because my dad told me the sales I make
will be my pocket money.
Money Slave To Money Master Page 12
Selling wasn‘t that hard for me actually because during my primary
school years, I helped my uncle in his bookstore (my uncle operates
a small bookstore in one of the schools).
So I sold all 100 pieces of facial masks and I made RM40.00 after
paying my dad the cost. I was very proud of myself and I thought
―Hey, this is easy money!‖
I was a stamp and First Day Cover (FDC) collector since 13 years old.
My mother subscribed the FDC for me from the local post office.
Then I realized that I can purchase them at the post office whenever
they release a new series without subscription.
To my surprise, I was not the only FDC lover in school. So I
volunteered to purchase the FDC for them for a fee; and those fees
collected are enough to cover my FDC and transportation cost. Boy
was I happy that not only I get to have my FDC for free; i actually
have some extra to put in my piggy bank!
Many things happened in year 1998. I was in Form 3, the movie
TITANIC was aired, and not to forget Commonwealth Games in
Malaysia.
Money Slave To Money Master Page 13
I had a classmate that has the same mindset as me at that time. At
that time, the movie TITANIC was a hit! Everyone is talking about it, all
the girls are crazy about Jack and his postcards and photos are
everywhere!
So, we thought, why not we also start selling photos of TITANIC casts?
That was the time we learn the concept – consignment. We took
catalogue from one of the seller, we took orders, collected money
and we only pay the supplier our cost price. We wait for the order to
come and we just deliver. All that without a single cent spent! At the
end of the day, we make about RM80 each.
Other than that, I also started selling books from my dad‘s stock to
my classmates to earn pocket money. 80% of my pocket money
comes from selling books and various ‗sellable‘ stuff. I consider myself
very smart, uh?
My relationship with money during secondary school:
It was easy making money by selling stuff that people want and I
don‘t mind earning money from my friends.
Money Slave To Money Master Page 14
During University
University days were very much different from my secondary school
years. Apart from the syllabus, friends and environment, I no longer
sell stuff to get pocket money. In fact, my parents paid for my hostel
stay and gave me pocket money every month.
Coming from a not-so-rich family, my pocket money was only RM300
a month. I studied in one of the famous college in Nilai, Negeri
Sembilan. Food cost almost the same as Kuala Lumpur so I guess
RM300 wasn‘t that sufficient.
With RM300 a month, I am expected to spend on food and my
mobile phone prepaid credit reload of RM30. I am left with RM270 for
food and other expenditures such as photocopy and books.
Sometimes, I had to ask for more money from my mom because
books in university are really expensive.
I was very active in extracurricular activities in college. Almost
everyone who joined clubs knew who I am. Besides, I was also given
a chance to be Master of Ceremony (Emcee) for some big events
and that had given me an advantage.
Money Slave To Money Master Page 15
Soon, I volunteered myself to be emcee for many events organized
by other clubs in exchange for meals! I had about 10 – 20 dinners
subsidized by other clubs in exchange for my service as emcee.
There, I saved on my pocket money! I am a big eater and that was
the happiest news because with the same amount of pocket
money, I can have more meals or bigger portions! That goes on until
I finish my degree.
My relationship with money during university days:
I exchanged my service for things that I need to buy with money.
With that, I can afford more things with the same amount of money.
Money Slave To Money Master Page 16
Summary
I wasn‘t taught much about money when I was small. Only thing I
learnt was that I can sell things to earn more money.
My parents also emphasized on saving. So I had quite a substantial
amount of savings from money I got during Chinese New Year and
my part time job wages.
I got my first mobile phone with my own money!
Generally, my relationship with money before I start working was
quite a pleasant one because I was never in debt.
Money Slave To Money Master Page 17
Chapter 2: Debts and I
My Working Life
I graduated from university and soon got a job. I was working in my
University College (upgraded from college status) as an officer of
Student Services Division. In fact, that is my first encounter with debts.
I was bonded for 1 year as part of the repayment scheme for taking
a loan for my final year studies. Yes! I got in debt even before I start
working. Luckily, it was a 0% interest loan.
Part of my salary will be deducted to pay off the loan. I continued to
work there for another year and financially, I was doing fine. I had no
debts after the 1st year, accommodation was provided because I
was the hostel warden.
I had no car so I don‘t have to pay for car loan and petrol. In fact, I
was financially sound that I changed my mobile phone every 6
months! (FYI, I only buy 2nd hand mobile phones)
I had a total savings of about RM12,000 in my bank account the day
I left Nilai for another job in Petaling Jaya! That is when my expenses
increase and debts started to appear in my life.
Money Slave To Money Master Page 18
Although I had been offered a nice paycheck for my new job, which
I was excited about it, my expenses also increased. Now, I had to
pay for rent, transportation to go to work, food are more expensive
now, I had to buy new working attire and such.
I was still doing quite well before I got myself a car – Perodua Myvi
1.3 EZi.
Money Slave To Money Master Page 19
My First Car
It was about a year before I bought my first car. I carpooled with my
housemate and luckily his office is about 200 metres from my office.
Sometimes, I had to take taxi because my working hours is crazy.
(FYI, I was in event management) So, owning my own car would be
a good idea as I can travel around easily.
My monthly salary was about RM2,700 (gross) at that time. I was
looking for a decent car that is not expensive. Ultimately, I chose
Perodua Myvi because I used to ride in my housemate‘s Perodua
Myvi. It is a spacious car with good review.
Oh, let me get it straight. The car didn‘t get me into debts; the car
loan is the culprit. I went to the Sales Office and talk to the salesman.
I told him my objective – cheap and nice. Then he showed me this
promotion from one of the local banks. It is a ―Step Up‖ plan.
Step Up Plan
A plan where you pay less at the beginning of the tenure and it gets
more and more expensive as you go.
Money Slave To Money Master Page 20
Of course I was so happy because it fulfills my objective – CHEAP!
During that time, my concern is I pay less so I can have cash flow.
I thought to myself, ―It will not be a problem paying more in the
future because my salary will surely increase!‖
I was wrong to think that way, unless I want to keep my car until the
car is no longer movable. Now, I am stuck with this car because if I
were to resell my Myvi, I will lose more money because of the
settlement that I had to pay. Don‘t understand? Check out the
figure below.
Money Slave To Money Master Page 21
Figure 2.1
The value of the car is always lower than the balance of installment
one had to pay when they are into ―Step Up‖ plan.
Looking at Figure 2.1, if I were to change car at Year Six, I can only
sell it at RM20,000 (maximum) but my repayment still has RM25,000 to
settle. Which means, I am losing RM5,000!
Let‘s see if I had taken a normal car loan plan.
Money Slave To Money Master Page 22
Figure 2.2
If I had taken up a normal car loan plan, the graph will look like
Figure 2.2.
If I wanted to sell my car at Year Six, I will be able to sell my car at
RM20,000. My repayment balance is also at RM20,000. So
theoretically, I did not lose any money.
However, if I decided to sell my car only at Year Seven, I may have a
little surplus.
Money Slave To Money Master Page 23
My Advice:
If possible, try not to go for ―Step Up‖ plan. Fortunately, I heard that
this kind of plan is not popular in the market and thus, lesser banks
are offering it now.
With normal car loan plan, your monthly repayment will be the same
while your income increase, isn‘t that better?
Money Slave To Money Master Page 24
My First Credit Card and Second One and Third One
I have heard of ―credit card‖ during school days. However, I thought
it was something that allows you to replace bringing cash wherever
you go; something like a debit card.
Of course I have heard of people owing money to credit card
companies or banks. I thought perhaps they didn‘t pay on time,
least that I know there was interest rate.
I applied my first credit card when I wanted to buy a laptop. Yes, it
was for the 12 months 0% interest installment purchase. The laptop
cost RM1,600 at that time and with credit card, I only need to pay
RM134 a month! That is so affordable!
So I got my card and happily purchased a laptop. Then I bought a
back massager for my parents, then I use credit card for petrol,
insurance and some grocery purchase.
Again, I was doing fine until I can no longer pay off my monthly
credit card bills. It was affordable initially and it added up to an
amount where I cannot clear the balance.
Money Slave To Money Master Page 25
Then, I only pay what I can afford. But the balance is still there! Did
you ever experience like ―Why is my credit card balance still there?‖
I told myself, ―It‘s ok, a little bit of interest does no harm.‖
The day I went deep into credit card debts was the day I signed up
another credit card with another bank. Why I did that? Because this
other bank‘s credit card offers 6 months interest free balance
transfer!
Yes, shame on me! I have a credit card balance that I cannot afford
to clear on my first card. I had to transfer the balance to another
card so the interest won‘t kill me! (It was a frustrated experience,
that‟s why you see all the exclamation marks)
Now, both my card has RM5,000 credit. I almost burst my first one so I
transferred RM2,500 to another card, with 6 months interest free
period. Only realized it later that I have to pay for 2 minimum
payments now!
Money Slave To Money Master Page 26
Debt ► Interest ► New Debt ► New Interest
Debt creates Interest.
Interest creates New Debt.
New Debt creates New Interest.
And it goes on and on and on…
I was trapped by the time I realized that!
I got panicked. My income wasn‘t enough for me to pay all the
balance. Then my friend introduced me to another credit card that
offers 3 months interest free advance cash. I was like, ―Thank God
there is such service. I can withdraw cash and clear my second
card!‖
I applied and of course my application was approved! I withdrew
RM4,000 from my third card and paid some for my first card and
some for my second card. Now, thinking back, that was a silly move!
That time, I know I am in deep trouble as I have 3 credit card
payments to be made every month! My debt is higher without me
Money Slave To Money Master Page 27
realizing it. Then it came to my mind that I was borrowing money to
pay off the money that I borrowed from someone else.
Meaning, I am incurring a new debt to pay for my old debt. Now, at
that time, my parents didn‘t know I was in such situation. (I bet they
know now if they read this book).
With all the 3 credit cards, I had a total of approximately RM14,000
worth of debts! My income that time was RM3,000 a month (gross
income)!
Money Slave To Money Master Page 28
Chapter 3: Managing Debts, Efficiently
Why Do We Hate Monday Mornings?
… and Tuesday, Wednesday, Thursday Mornings?
This table illustrates Mr & Mrs Average‘s working week based on a 40-
hour week over 5 days.
Hour Mon Tues Wed Thurs Fri
1 TAX TAX DEBT DEBT BILLS
2 TAX TAX DEBT DEBT BILLS
3 TAX TAX DEBT DEBT YOU
4 TAX TAX DEBT DEBT YOU
5 TAX TAX DEBT DEBT YOU
6 TAX TAX DEBT DEBT YOU
7 TAX TAX DEBT BILLS YOU
8 TAX TAX DEBT BILLS YOU
You work Monday and Tuesday to pay the tax man (this is direct and
indirect taxes). Wednesday and Thursday to pay your debts. The
rest of Thursday and Friday Morning for your household bills and
finally Friday afternoon for YOU!!
Now I know why I prefer Friday afternoons, how about you!!
Let‘s start by getting Wednesday and Thursday back in your pocket.
Money Slave To Money Master Page 29
List Out All Debts
The first step to efficiently manage debts is to find out exactly what
you owe and exactly what your income and expenditure is.
There are 2 things you will need to do.
i) Records every single transaction that you made. That
includes ATM withdrawals. Jot down everything that you buy
even if it is a cup of coffee or an ice cream.
The above will help you to monitor where your money goes to. Many
people do not know where they spent their money. They buy things
that they don‘t need and end up having lots of them.
Do the recording for a month and analyze how much you spent on
food, transportation, leisure, groceries and such. Then, identify where
you have overspent. Try to cut it down or see if you can replace it
with something cheaper or better still, FREE!
Without spending on unnecessary things, you cut down your
expenditure. Thus, creating more cash flow to reduce your debts!
Money Slave To Money Master Page 30
ii) List out all debts that you know. Credit cards, car loan,
mortgage loan, personal loan and money that you owe your
friends.
List them all out according to interest rates, from lowest to the
highest. If they are all under the same interest rate (e.g. credit
cards), list them according to the balance left, from lowest to
highest.
Let‘s use the table below as example for credit card:
Debts Interest Rates
(per annum)
Balance Min Payment
Credit Card A 18% 2500 125
Credit Card B 18% 3500 175
Credit Card C 18% 5000 250
Total 11000 550
Money Slave To Money Master Page 31
Pay Debts with Lower Interest + 10% more
The obvious way to do it is to first pay off balance for Credit Card A.
The trick in this is to add 10% more to the minimum payment you
make every month.
Which means, you will be paying RM375 instead for Credit Card A
every month. Fix that RM250 extra payment. You will still need to pay
for your Credit Card B & C but only the minimum payment.
What happen to your Credit Card A then? Every month, as you pay,
your balance gets lower, which also means that the minimum
payment is lesser. However, you still pay RM250 extra for Credit Card
A. You will be able to clear Credit Card A in less than a year!
(Provided you don‟t add on to the balance)
When it comes to Credit Card B & C, apply the same payment
method. Add another RM250 to the minimum payment and you will
see how fast you can clear your credit card debts.
Money Slave To Money Master Page 32
Pay On Time
Another trick to lower your credit card debts faster is to pay on time.
Paying on time will stop the bank from charging you Late Payment
Charges, which can sum up to a huge amount as time goes by. I am
not saying that you can‘t afford such payments but it just doesn‘t
seem worth it.
Money Slave To Money Master Page 33
Reduce / Stop Usage / Delayed Gratification
The ultimate trick to get away from debt is to reduce the usage of
credit cards or stop using it entirely – buy everything in cash!
When you buy with cash, you will eventually control your desire to
purchase more as you only have limited cash. Even if you used up all
your savings in cash, you will not end up negative!
Delayed Gratification is one of the most important aspects to
developing your financial IQ. Take this as a hypothetical example.
Would you pay for a pint of milk or a cow?
If you buy milk, it is consumed and it is over. You will have to buy milk
over and over again when it is finished. Even if the milk costs less than
a cow, in the long run, you will still be buying milk again and again.
Now, if a cow were to cost 50 times more than milk, you might pay
through your nose when you purchase the cow, but after consuming
50 pints worth of milk from the cow, you would break even on your
investment and save more money in the future.
Money Slave To Money Master Page 34
In fact, the cow might give birth to 2 or more calves and you could
sell one of them for profit!
Get the idea?
Money Slave To Money Master Page 35
Chapter 4: Savings
Saving has always been a way of life for people who believed on its
power. These people know that they have to save more money in
order to create a more established future.
However, as time goes by, more and more people find it hard to
save money. They said that saving is no longer a way of life but a
resolution that they have to strictly adhere to just to put aside some
amount of money.
Some people even insist that it is no longer possible for a person to
save more money because most of them are already living
paycheck to paycheck. With all the high-prices of commodities
these days, saving more money seems like just a dream.
But the point is that people can indeed save more!
Money Slave To Money Master Page 36
Pay Yourself First
The reason many people cannot save because they think that they
don‘t have much to save. Have you heard of ―I don‘t have money
to save, wait till my income increase then I will have extra to save!‖
Now, many didn‘t realize that when their income increases, so does
their expenses. When you have more money, you tend to spend
more because you think you can afford it. Worse, if you think you
can pay off the loan / debts with your new additional income.
At the end of the day, you are back to square one – broke! The
figure below illustrates how people spend their income.
Figure 4.1
Income – Expenses = Balance (Goes to Savings)
Money Slave To Money Master Page 37
Most people practice the above model. They got their monthly
salary, then they pay the bills, loans, debts, spend on food, leisure
and then they ‗try‘ to save whatever that is left.
The activity of saving needs two things to happen – motivation and
habit. The amount of money is not the most important thing. No
matter how much you save, be it RM1 or RM100, it is also a form of
savings.
The concept of “Pay Yourself First” emphasize on the act of setting
aside a certain amount of your income before you start spending.
Thus, even if you spend all your money that is left, you already saved!
Figure 4.2
Income – Savings = Balance (Goes to Expenses)
Money Slave To Money Master Page 38
With that, you will have the motivation to save because it is
achievable! Don‘t worry about the amount because eventually „little
is better than none‟.
Once you have the motivation to save, it is time to build a habit.
Save a certain amount every day, every week or every month. Do it
for at least 90 days and you will have the habit of saving.
But, how much every time?
As mentioned, the amount is not the most important thing. You can
start with RM1.00 a day, then gradually increase as you go until an
amount that you are comfortable with, maybe RM5.00 a day (which
is equivalent to RM150 a month).
Remember! Always Pay Yourself First because it is YOU that has put in
the effort to earn your income. Who else deserve the money more
than you?
Money Slave To Money Master Page 39
The Eighth Wonder of The World
Albert Einstein called compound interest as ―The Greatest Invention
of All Time‖. It is also being referred as ―The Eighth Wonder of The
World‖. The trick is to get this tremendous force to work for you rather
than against you.
Let us look at basic interest, an amount that you pay a lender for the
privilege of borrowing his money. Normally, this amount is tied to the
original amount at an agreed rate. It is calculated on the balance
owing plus any previous interest charges.
Thus, you find yourself paying interest on interest. This is the
compounding effect and the element that compounds your debt
and allows it to take on a life of its own.
Money Slave To Money Master Page 40
First, let‘s look at how compound interest works against you. We take
credit card debts as an example.
Month Interest Rate Balance
1 1.5% 5000.00
2 1.5% 5075.00
3 1.5% 5151.13
Assuming if you do not pay your credit card debt for 3 months, in the
above example, I leave out the Late Payment Charges. With only
balance alone, compound interest has work against you by adding
RM151.13 to your debts! It will be worse if I add in the Late Payment
Charges!
If interest rate of 1.5% can do such harm to your financial health,
imagine a loan with higher interest!
Money Slave To Money Master Page 41
Now, let us experience the miracle of The Eighth Wonder of The
World when it works for you!
Say you have save RM150 a month for 12 months. You decided to
put in an investment vehicle that generates 3% per annum. How
much can you have after 10 years (without additional saving)?
Year Savings Year Savings
1 1800.00 6 2086.69
2 1854.00 7 2149.29
3 1909.62 8 2213.77
4 1966.91 9 2280.18
5 2025.91 10 2348.58
You gain RM548.58, without extra effort!
Let‘s see what happen if you add on RM1800 each year (same
interest rate as above).
Money Slave To Money Master Page 42
Year Savings Year Savings
1 1800.00 6 11643.14
2 3654.00 7 13792.43
3 5563.62 8 16066.20
4 7530.53 9 18286.39
5 9556.45 10 20634.98
Saving RM1800 a year for 10 years gives you RM18,000. With the
method above, you gain RM2634.98, effortlessly!
Of course, the above is only an example of saving in an investment
vehicle that generates 3% interest per annum. You will gain more if
the investment vehicle generates higher interest.
See? That is only RM5 a day and you can save up to RM20634.98
after 10 years. It takes a little a day to go a long way.
Just to motivate you a little bit more, let‘s look at how the above
saving method works on various interest rates.
Money Slave To Money Master Page 43
Saving does not always require a big amount to start with, what
matters most is the willingness to start.
Year 3% 4% 5% 6%
1 1800.00 1800.00 1800.00 1800.00
2 3654.00 3672.00 3690.00 3708.00
3 5563.62 5618.88 5674.50 5730.48
4 7530.53 7643.64 7758.23 7874.31
5 9556.44 9749.38 9946.14 10146.77
6 11643.14 11939.36 12243.44 12555.57
7 13792.43 14216.93 14655.62 15108.91
8 16006.20 16585.61 17188.40 17815.44
9 18286.39 19049.03 19847.82 20684.37
10 20634.98 21610.99 22640.21 23725.43
Year 7% 8% 9% 10%
1 1800.00 1800.00 1800.00 1800.00
2 3726.00 3744.00 3762.00 3780.00
3 5786.82 5843.52 5900.58 5958.00
4 7991.90 8111.00 8231.63 8353.80
5 10351.33 10559.88 10772.48 10989.18
6 12875.92 13204.67 13542.00 13888.10
7 15577.24 16061.05 16560.78 17076.91
8 18467.64 19145.93 19851.25 20584.60
9 21560.38 22477.60 23437.87 24443.06
10 24869.61 26075.81 27347.27 28687.36
Money Slave To Money Master Page 44
Bonus Chapter
10 False Beliefs About Money
by Steve Martile, Coach (http://www.freedomeducation.ca)
The most common reason that people are broke is because of their
false beliefs. These beliefs come from the sub-conscious mind. The
sub-conscious mind or the emotional mind works with the Law of
Attraction. You attract based on the programming of your sub-
conscious mind.
In fact, many people know how to make money; a lot of them do.
They just don‘t know how to KEEP it! They don‘t know how to keep it
because of their false beliefs.
Your programming may be putting the brakes on your efforts. These
false beliefs are buried deep in the constructs of your mind. If you
keep attracting debt, then you may have false beliefs about money.
Money Slave To Money Master Page 45
Here are 10 common false beliefs about money:
I am not smart enough
I am not good enough
You can‘t trust people with money
You can‘t be rich and healthy
Money doesn‘t grow on trees
You need money to make money
Money making is a lot of hard work
Having money just creates problems
Having money isn‘t everything
Money is dirty (Comes from, “He is filthy rich!”)
You can‘t change these beliefs because YOU ARE them. You are
your beliefs. You won‘t be able to change them until you separate
yourself from your beliefs. You do this by increasing your awareness.
Once you are aware, you can change it!
Note:
Having more money will not make you a more evil or a better
person. It will only amplify who you are.
Remember! It is how you build your relationship with your money!
Money Slave To Money Master Page 46
Recommendations
Websites
http://lifeonapieceofpaper.blogspot.com
Life is like a piece of paper, whether the paper is interesting or dull, it depends
on how you live your life. Many spent their entire life finding their purpose. "Life
on A Piece of Paper" aims to shed some light on life by sharing different
experiences and stories of fellow Malaysians.
www.zenhabits.net
Often we think of having very little as a hardship.
It‘s bad to be poor, right? It‘s not easy struggling with low wages, with debt, with
scarcity.
And while all that is true, it‘s also not true.
There can be joy in getting rid of things, in living with less, in freeing yourself of
debt and possessions. It‘s all in your mindset.
www.getrichslowly.org
Recently named best blog of 2011 by Time magazine and most inspiring money
blog by Money magazine — Get Rich Slowly is devoted to sensible personal
finance.
Money Slave To Money Master Page 47
Books
Secrets of the Millionaire Mind
In his groundbreaking Secrets of the Millionaire Mind, T. Harv Eker
states: "Give me five minutes, and I can predict your financial future
for the rest of your life!" Eker does this by identifying your "money and
success blueprint." We all have a personal money blueprint ingrained
in our subconscious minds, and it is this blueprint, more than
anything, that will determine our financial lives.
Money Slave To Money Master Page 48
The 7 S.E.C.R.E.T.S. of the Money Masters
The Seven S.E.C.R.E.T.S. of Money Masters goes where most personal
finance books –and financial advisors – fear to tread, revealing the
S.E.C.R.E.T.S. of Safety, Expense, Cash Flow, Rate of Return, Economy,
Tax Efficiency and (common) Sense.
Money Slave To Money Master Page 49
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