(Source : http://investkk.com/unlearn-learn)
Our Malaysia education required us to learn as young as 4 years old till 20 years old. Yes on average every one of us has learn everything about life for about 14 years. Frankly what you have learned for the past 14 years? Are you really practicing it for good? For me, I learn more from street rather than in school. Street education taught me how to work smart and make profitable move rather than schools smart whose only awards me with highest mark if I done something right. I’m sure you will be surprise when your schoolmates who can’t even pass their SPM or PMR are earning better money than you who has higher education. One of my secondary schoolmates now is earning around RM20K per month running bird nest farming. She is married with 2 kids and for your information her highest education is only till form 6. So what happen to all of us who are highly educated? Some even spend few hundred thousand overseas? Are they really enjoying high paid jobs with satisfactory job environment? Maybe yes but I would say majority of the employees are dissatisfied with their current job. All the while we been ask to learn more hoping it will help in our daily activity especially wealth building.
But, today I’m going to ask you to UNLEARN what you have learned if you are seriously wanted to improve your wealth tremendously from now on. You have to unlearn….
1. Having good jobs is good as it will lead you to ultimate wealth. Purely dependent on the job to build your wealth is not good enough. Some people like me always believe that your bosses will never consistently treating you nicely in terms of monthly salary, yearly increment and expected yearly bonus. You must remember there is NOTHING certain in this world so protecting your own rice bowl is much better than helping you boss. Of course I’m not asking you to use company resources to build your own wealth. Please refer “http://investkk.com/rules-of-8020-property-vs-job/”.
2. Saving your money is a good investing. I never know anyone getting rich through savings. On normal circumstances working class people will save as much as 30% of their monthly income. With assumption you are earning RM5000 per month that means you are keeping RM1500 per month @ RM 18K per annum. If you continue doing this for the next 20 years, you saving will blow up to RM 360K. But what is the “REAL” value of your RM360K after 20 years? Virtually you won’t believe it if I tell you the “Real” value has drop to RM90K counting in 7% inflation rate. You better believe it. This show your hard earned money has been depreciated at least 75% over the next 20 years. Refer to “http://investkk.com/true-value-of-rm10000/” & “http://investkk.com/meaning-of-rm100000-00/”. So what you are waiting now? Start your investment wisely. Remember wait and see is the worst strategy.
3. Debt is bad. Good debts bringing more wealth into your portfolio while bad debts filter away your hard earn money. I remember there are people asking me, when are you going to pay-off your debt if you continue buying and borrowing? My answer is I will only stop when bank stop borrowing to me. For your information, good debts especially mortgages loan has tremendously increase my net worth for the past 8 years. I don’t keep bad debts. Bad debts here refer to credit card debts which charging more than 18% per annum. Please settled it soonest and if you have FD money, transfer and settled it. No point earning 3% in FD while bank charge you 18% on your credit cards debts. I always remember this quote “Penny wise, Pound foolish”. Read more on “http://investkk.com/leveraging-wealth-building/”.
4. Government, my employer, or someone else is responsible for my financial well-being I never trust them!! 90% of the people surrounding us have no choice but to accept the fact that “other” people going to take care of them when they are running out into financial problem. I have been working in banking for the past 8 years but I never believe that my boss going to take care of my lifetime financials. I always trust my own effort and ability to earn extra money outside my working time ie rental, capital appreciation and potential commission from my property deal. Earn Smart, Save Smart and Invest Smart. Refer to my previous articles “Employees Millionaires” where I share my life experience how you can remain employees while multimillionaires after working hours. Life is all about yourself, so please does something meaningful before you retire.
5. It takes money to make money It’s a common myth that hunted a lot of people to stop investing in properties. Does it really take money to make money in the properties? I doubt it. I strongly believe it takes “idea” to make money. How? Wake up everyday before 7am, subscribe our local newspaper ie Daily Express or The Star and eyeing on properties that sell “below market value”. This will give you the opportunity to get higher loan to cover the selling prices.
Example: Real Life story: Shoplot Ground Floor @ Sinsuran
Selling price : RM 620K
Sales & Purchase Agreement : RM 690K
Loan amount approved : RM 621K @ 90%
Above is one of the best deals that I help my client to close back in 2007. I earn RM6K from this deal but he is earning RM 250K (current market value RM 850K) @ 500% with assumption he use RM50k to paid all his legal fees and stamp duty. Not to forget, the return is excluded his rental income which he collect amounted to RM 162K @ RM4500 per month for 3 years. This is one of the most regretted deals that I missed out. So sometimes I also make mistake. But the point I would like to emphasize here is that it does not take money to make money. Sometimes “idea” does make you richer.
Unlearn all the above will definitely making you wiser and increasing your guts to explore more in building more solid wealth. Happy Investing