Friday, January 18, 2019

How You Can Improve Your Cashflow By Working On Other People's Time

A few days ago, I wrote an article relating to why most people need to eventually convert your active to passive income at the end of the day.

There are a few good arguments here and there that surrounds whether we need passive income in our lives but I think most people are in consensus that they need some sort of passive income, even if it's just a small part of it.

You see, it all started with the fact that time is a finite resource.

You can't be in the East on one side and be present at the same time in the West because your physical presence can only be at one point in a single time.

Technically, that means that if your earned income are based on your presence and services that you provide, you can only earn a limited amount that is capped because you are restricted by your movement and time.

This can be possible of course, that is if you are able to improve your service per hour massively over a number of years that you have been trained for.

Take for example, the renowned footballer of the year, Cristiano Ronaldo - a player whose illustrious career with Sporting Lisbon, Manchester United, Real Madrid and Juventus takes the world by storm.

Cristiano started his career with Lisbon at the age of 17 when he was earning around £18,000 per week.

He worked so hard in his career, came early for training, stayed back to practice on his set pieces and after years of hard work he was rewarded with an illustrious career move to Real Madrid where he earns a basic salary of £365k per week.

That is some crazy compounding annual growth rate if you do backwards accounting.

Cristiano's Salary with Real Madrid

By the same nature, there are some of you who are very good at climbing the corporate ladder because you are so good at what you do.

You worked hard for the project that you've been assigned to, you sacrificed your weekends to commit yourself to meeting the deadline and you've built great relationship with your peers and supervisors.

All of those amounts to efforts that you've diligently built from scratch and maintain them.

Improving Your Cashflow By Working On Other People's Time

While the above is an exemplary of what we can learn, there is a better option and that is by enhancing your skills to work on other people's time.

What exactly do I mean by that?

An entrepreneur, whose work surrounds setting up a business or company providing services or products in the hope of earning a profit, builds on a premise that in order to bring his business to the next level, he must hire people to do most of the groundwork operations while he uses his time to scale his businesses strategically.

The teams he employed are churning out the cashflow for his company on his behalf while he seeks to find another cashflow stream. 

There are inherent risks in entrepreneurship but you can see where I am coming from with the analogy.

An investor who invests in properties at a decent valuation as an owner is able to rent out his premise for rental income while waiting for capital gain appreciation in a few years time. In this analogy, the investor is using the lessee's rental over time to pay off the mortgage over the next 30 years.

Similarly, a shareholder who owns the right to vote in the company is technically an owner by nature and he earns the right to receive dividends from the profits of the company by allowing the management to manage the thousands of employees employed within the company.

In all the examples above, it exemplifies the magnitude of improving the revenue earned per hour and productivity increase.

The idea is to be able to get to a stage where you aim to earn what you did today but with a much better resource allocation of time.

Ensuring a positive cashflow under the utilization of time productivity is the essence of a true financial independence recipe.

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Thursday, January 17, 2019

InstaReM - Your Secured Remittance Platform In Town

Do you have business liaison to attend to overseas? 

If yes, you are probably familiar with the remittance and transfer platform that you have been using to transfer your funds overseas either to your business partner or vendor. 

While bank transfer appears to be the most frequently used platform because it is directly debited from your account, you have to be mindful of how much transfer fees and the impact of the currency exchange the bank charges to their advantages. 

Often, this resulted in spreads that can eat into your margins. 

Some banks came up with a promo that charges zero fees on the transfers.

There are no free lunches in the world. 

When your remittance dealer tells you that they charge zero fees on your transfer, it usually means that they are increasing these charges elsewhere, such as increasing the margins on their currency exchange so that it may look attractive to the users.

InstaRem, abbreviation of Instant Remittance, has branded themselves as a low-cost money transfer provider in town that provides competitively margin-free FX rates and the best transfer amount guarantee.

They are founded in 2014 and is proudly a Singapore-headquartered Fintech company that enables money transfers from Australia, Singapore, Hongkong, Malaysia, India, UK, Europe and USA to over 55 countries across the world.

They have already established a strong presence in Asia and have recently received Series C-funding to brand themselves competitively.

The FX Conversion is straightforward and transparent and users do not need to be afraid of incurring hidden charges later on.

All of InstaReM’s charges are based on charging a small fees between 0.25% to 0.50%, which makes it attractive to users who would like to transfer in small batches. 

The same fee applies on volume transactions too.

One thing I like about InstaReM is their stringent check on users when they signed up, which shows professionalism on compliance and their Zero-Margin FX Rates, which are rates that they directly source from Reuters. That means that unlike banks, they don't earn from this and they keep themselves very competitively place on the global map.

Here's how InstaReM stacks up against the other competitors.

Instarem - Winner for Asia Presence and Definitely better than banks

If you are a first time user transferring any amount higher than SGD300, you can key in the promo code FFF10 which will entitle you to a first time users of $10 on your first successful transaction.

You can sign up via the Link I have provided you here, which will entitle me to a very minimal affiliation fee. You will not be disadvantaged should you decide not to do sign up via this link otherwise.

Thanks for reading.

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Tuesday, January 15, 2019

5 Reasons Why You Need To Convert Your Active to Passive Income At The End Of The Day

Having worked professionally in the accounting and finance field for more than a decade in 4 different companies throughout my career, you would have thought I have a plethora group of friends and colleagues who likes to convert their active into passive income like myself. 

That is not the case. 

Within my circle group of friends and colleagues, this number amounts to a minority and you would think it is strange that for someone who is handling other people’s money or accounts on a daily basis, he or she would have taken more charge and responsibilities in their day to day personal finances planning for their own future. 

You see, that’s a problem with how the modern corporate world grinding has done to us. 

First, they managed to legally drug most of the working people with a monthly dose medicine in the form of a fixed salary to ensure we clock our time faithfully from 9 to 6 during the first 5 days of the week. Over time, we get so used to receiving a timely payment and increment yearly that it is difficult to break away from the golden handcuff. 

Next, they kept us busy by giving us tasks so we can work on looking for the solution to the problem.  
And that gives us hardly time for ourselves at the end of the day – thinking hard objectively about what we want to achieve for ourselves. 

Here are the 5 reasons why you need to convert your active to passive income as fast as possible. 

1.) You Are Your Own Priority 

No one else is in charge of your own well being other than yourself. 

That means we should try as much as we can to prison break away from the golden handcuff that has held us for a number of years. 

As much as you enjoy your job, you need to look after your own best interests and sometimes that means being selfish about some of the things which you may need to sacrifice. Example would be sacrificing the wants to buy a luxury bag in favor of savings.

2.) Companies’ Priorities Are So Damn Crystal Clear 

As a shareholder of some of the companies I owned (see what companies I’m vested here), the most important thing is to see the company doing well. 

This can be attributed by an improved topline or bottomline margins, increase in sustainable dividend payout, a roadmap for future outlook plan and ultimately a capital gain in the share price. 

An employee’s well being which comprises of a salary increment and bonuses are important in driving some of these things but you can see they are much lower in the priority. 

If there is an economic slowdown which resulted in a lower margin or if there are projects that don’t go as planned, you can bet that I would vote in favor for a lower employees’ bonuses.

3.) Our Body’s Finite Energy Timeline 

Sometimes, we do not know what surprises our health might give to us. 

On one moment, we can be very healthy by keeping ourselves fit through the proper exercise, eating regular meals and keeping tabs on regular check-ups. 

The next moment, we can be down with illness and some of these illness can be fatal. 

When our body gets weaker, we may not be able to perform to the required level a previous role we had committed. 

We may be forced to downgrade to a role which the body can take it. 

4.) You Can Make Your Passive Income As Regular And As Addictive As Your Active Income 

I used to be like everyone else in the past getting so used to the regular payout from my monthly income and becoming dependent on them over time to tide over the month. 

When I first switched over to dividend investing, it didn’t make a big impact to my life because the amount is immaterial to affect any change. 

But slowly over time, this amount compounds and I become interested into it more and more each time. 

Now, I grow quite addicted to it that when I receive my monthly salary, the first thing I would do is to transfer over some of those funds right into my investment account, buying more dividend companies which in turn give me a higher dividend payout. 

5.) Everyone Needs To Retire From An Active Income At Some Point 

Whether we like it or not, there will come a time when we eventually need to retire from an active income and shift our gear towards a more regular passive income in nature. 

Since that is just a matter of time, why not make it a reality as early as we can while we are still younger and we can allow room for errors if it should come to that. 

Starting early also allow room for compounding to take place, which can be massive if the time stretch is longer.

What Do You Guys Think?

Is There A Need To Convert Your Active To Passive Income At Some Point?

Is It Just A Matter of Time or Is That A Choice?

Thanks for reading.

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Monday, January 14, 2019

What We Learnt From Watching Marie Kondo (Minimalism series)

I spent my time during the weekend watching with my wife an ongoing popular series on Netflix called Tidying Up with Marie Kondo

We barely watched only the first episode but it has already brought a change impact in us.

In the first episode, KonMarie talked about why we should spend time tidying up our home, a precious place in our hearts that we spent many countless hours on every single day.

She came to visit a couple who's living in the California area, and had two young children at home with them which makes it more challenging in the aspect of tidying up.

We can relate well to the family because our circumstances are very alike in the sense that we bought many things for our children that space becomes a crunch in a span of a few months. We suffered the same like what was described in the episode as a desire to long for more than what we need to which gives a vicious cycle to keep buying for more stuff, and in turn filled the space of the house even more. 

KonMarie started the tidying up process with the clothing in the wardrobe.

She subsequently challenged the conscious mind of the couple by asking how many of these clothes do they really need and use. 

She uses a method what she described as having a sparking joy. When we feel and touch these clothes, one layer at a time, we should ideally feel a sense of belonging and happiness which indicates a desire to keep these clothes. If the clothes bring no joy, it should be discarded or donated away. The last thing she wants is for someone to keep piling up the drawer with clothes that they have no attachment to.

After tidying up the wardrobe, she would then move to other sections of the house, such as the kitchen and garage. 

What strikes me the most from this simple episode was when she mentioned how much sentimental things we have kept in the garage that we don’t see on the day to day and yet we chose to keep stuff that aren’t important yet strikingly visible to fill up the space. 

For example, sentimental things such as wedding or childhood photos should not be kept in a garage because the occurrence of seeing them is much lesser on a day to day basis. They should be out in the living room or somewhere accessible so one can retrieve them quickly and remind what is the real important to them.

I like this episode because it speaks about the modern minimalism which has consciously shape our minds to become better yet more simplistic in nature. 

It tells us that strength and happiness comes in the form of not needing more but less and in that process of refining our balances, we can actually derive the same joy as we have been when we were spending on things that we think are necessary but is actually not.

We get started on decluttering on our things immediately.

Time to donate away those clothes and boxes

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Friday, January 11, 2019

Jan 19 - Portfolio & Networth Update

Hello 2019!

Since I stopped updating on my portfolio 4 months ago, I've received lots of inquiries from readers asking me to reinstate back this post.

After much deliberation, I've decided to republish them again in my blog starting this month with the January's update. 

While I don’t exactly know how these updates will benefit readers who are requesting for these updates, I hope they are not using this the wrong way.

For myself, I am using the update to justify for accountability to myself which is mainly to articulate my summary thoughts in a more organized manner and why I decided to hold/buy/sell and make certain decisions.

Overall Markets

Let's first start with the observation of the overall market.

This has been a pretty smooth sailing month so far.

STI ended the year in 2018 with last closed at 3,068 and barely within 2 weeks the market has moved up to 3,200, which represents a 4% gain year to date. 

I had my hopes high this year for the market to tank not because I am loaded with cash but because I know I will be able to load up more stocks in this accumulation stage of my life. 

Contrary to many people, I actually feel great when I see the market tanks, even when I am almost fully vested.

Still, we are now in the very early stage of the year so there will be turns and surprises, which is what is great about the market because of its unpredictability.

Anyone who says they are able to predict with high probability on how the market moves should openly show how much skin they have in the market. That will give you some sorts of indication on the conviction they have.

For me, I tried to be vested in the market whenever there are still some great valuations in the market that I can find.

That's all I can do for now.

No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
Frasers Logistic Trust
Starhill Reit
Far East Hospitality Trust
Manulife Reit
UMS (Short)

CFD Leverage @ 3.2%


Net Total


Portfolio Updates

1.) Vicom 

Vicom remains my top position in the portfolio going into 2019 due to the defensive nature of its' cashflow and predictability of dividends which is high at 6%.

With full year results coming up next month, I think we will not see much surprises and I expect them to maintain if not announced a slightly higher dividends than the previous year of 36 cents.

I had previously mentioned Vicom as one of the two companies in the offensive-defensive partner rebalancing in my strategy last year (you can read them Here).

It is still applicable for this year.

2.) Frasers Logistics Trust 

FLT took up the 2nd position in the portfolio because they have performed very well since their inception days a few years ago.

It is currently yielding close to 7%.

If there’s anything to pick about this Reit, it will be their expansion plan to move to a different geographical areas in Europe and with multiple properties in the portfolio it increases the difficulty to pass judgement on how well these properties are doing and weigh them across the overall portfolio.

Still, being a Reit under the strong sponsor of the Frasers Group and a proven management, I expect them to maintain a slow but decent performance over the years.

I just need to be a little wary to ensure they are not expanding aggressively for sake of expanding and destroy rather than enhance shareholders' value.

3.) Starhill Global Reit 

Starhill summed up my top 3 positions in the portfolio.

I strongly think they will have a decent chance for a turnaround this year, backed by an attractive valuation and turnaround in their earnings which will lead to higher dividends.

I had blogged about my personal take on Starhill not too long ago which you can read Here so I won’t repeat much of it again.

4.) Far East Hospitality Trust

If you have been following my blog, you would have realized that I regularly mention about my bullishness position in the hospitality industry and in particular used Far East Hospitality Trust as an example.

Like Starhill, I think this will be a good year for Feht with turnaround in the revpar earnings from the hotels, a lower hotel supply over the next few years, combined with a strong tourism demand for the years ahead.

I believe the stars are aligned.

5.) Manulife Reit

This is the smallest position I have in my portfolio and rightly so because I am still trying to learn about the property sectors in the US and some of their regulations, which can be very tricky for overseas investors or companies that are being listed overseas.

I have tried to read up and study on the Barbados tax law regulations which I have exchanged some thoughts with Kyith from Investment Moats, who are more well-versed with some of these updates.

My take is that despite the result, this is still very much a grey area and one which could haunt back whenever such clauses are being brought up to surface.

Because of the same reason, I took a loss by cutting my previous position on KBS but managed to keep Manulife so they broke even.

6.) UMS

UMS is currently the only open short position I have in my portfolio.

Since I last blogged them on the 15th Nov (you can read it Here), the share price has dived further down from 66 cents to a low of 56 cents before rebounding to the current support/resistance of 60 cents.

During these interims when they rebounded back, I took up this opportunity to further accumulate my positions in various stages by leveraging at it almost at 2x

The idea is to hold them until next month when they announce their full year results in Feb.

There were enough indicators to indicate this might work out.

Apple and Samsung gave an early signal lead on the chips sector that outlook on the demand are not going to be rosy and with increasing trend of past unused inventory, it is easy to assume that the demand are lower than what these companies are expecting.

The lower capex to spend also assume that the sector is undergoing a slower growth which I believe there are further rooms to fall for semicon stocks.

For UMS, it adds the spice because they have diversified into something else, which might be good for long term investors but bad for short term investors. With the high capex spend this year, it is expected that to conserve the same amount of cash flow, they would have to cut back on the dividends paid which they had already do so in the interim.

Networth Update

The portfolio ended the year at $833,750 in 2018.

This month, the market has started brightly and the portfolio has gone up to $853,984 (+2.4% month on month; +38.8% year on year).

It is also the 13th consecutive month increase since Dec 2017 so I am pleased to see the results turning out to be rather fine.

Jan 2019

Final Thoughts

So that is the overall updates for this first month of the year.

I hope I don't go overly bomballistic on some of these items and I hope it might help some readers to think about it from a different angle.

There will be plenty of monitoring mode in this year strategy so patience will be really key.

Patience does not mean you have to be holding a large amount of warchest at any point in time, it is just about striking at the right moment, and rebalancing them when you see it as necessary.

How's your month coming along so far?

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Sunday, January 6, 2019

Starhill Global Reit - Should See Better Days Ahead

SPH Reit's recent Q1FY19 results show something promising for the retail rent sector as they managed to negotiate for a 10.1% positive rental reversion for the renewed leases that expire in Q1FY19 for the Paragon properties.

The Orchard central area continues to bounce back strongly on the back of strong high occupancy and the low supply pipeline for the next upcoming 5 years.

This is the latest I have extracted from the URA website.

The office space is doing well from what we see on the price and rental index, but that only takes up 5% of the total NPI for Starhill, so that isn't very significant.

The biggest move would need to come from the Singapore retail from their Wisma Atria and Ngee Ann City properties, which takes up 50% of the total NPI.

If this moves, the share price will move accordingly, usually in the same correlation.

Thus, my turnaround play would have to depend on this one.

Starhill has a next Toshin rental review in Jun 2019, which I think will be the key for a positive rental reversion that follows that to SPH Reit.

I think we should see better days ahead for Starhill performance.

This is just a quick update but an incomplete analysis of the stock.

And I think at 6.6% yield currently, it is an opportunity for investors to keep accumulating.

*Vested and will continue to accumulate

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Saturday, January 5, 2019

City Development - Is There Value In This Company At $8.08?

The revised cooling measures implemented in the middle of 2018 has finally pushed Q418 sales to a dip since Q217. It was only slightly down by 0.1% quarter on quarter and most of the decline was mainly due to landed sales so in all essence the demand for private property is still pretty buoyant.

With the introduction of the new cooling measures, which coincides along with the increase in tandem in interest rates, it brings the share price of City Development down from the 52 week high of $13.6 to the last closing price of $8.08.

That is a very sharp decline and if you are an investor who buys at the peak and it can get very painful to see your portfolio colored in a patriotic sea of red. 

But is there value now in the company after such a steep decline?

Cooling Measures In This Decade

For years since post gfc days when the first cooling measures was introduced in 2011, the demand for private property and residential has been pretty stable and moving. It never for once dent the expectations of the public that property prices are going to come down because of the measures put in place.

For those who waited, they have waited in vain as they look price stabilised after dropping about 10% from the very peak.

For developer companies like CDL, net margins on the residential properties they have sold in Singapore has been pretty constant throughout at 22%. As they continue to replenish their land banks by bidding tenders through open bidding and enbloc, there are continued demands to sell these properties off at a neat 20s% margins.

The Tapestry in Tampines saw 80% of the total 861 units were sold within the first two weekends at an average price of $1,360 / psf.

The Whistler Grand, being the latest project landed in the West most recently has sold off 160 units on the first weekend opening launch at an average price of $1,380 / psf.

These are outside the CCR region.

In the District 9 area, New Futura's 83 out of the 124 luxury units was sold last year in the opening weekend phase.

There were speculations and downward projections by analysts everytime after each new cooling measures was introduced but the demand has proven to rally stronger.

This feels like parents telling the education minister and public that they should tone down on the curriculum and education but look at what happen to tuition centers and how these parents who make the complaints are the very same parents who send their children rigorously to lessons.

Causation is a consequence and it goes round in loop.

2019 will be a bigger challenge as there is likely influx of supply thrown to the market to see if the demand can match up.

Discount to Book or RNAV

Analysing the fundamentals of the company is one thing, being an investor of the company is another.

As investors, you have your own required rate of return that you are expecting and if this doesn't materialize after a period of time, then it looks like a bad investment one angle or another, regardless how well the company has grown or is being run.

Your entry purchase price therefore matters or it'll affect your long term return as a consequence.

Those who bought at the 52 week peak versus one who bought at the 52 week trough will have a different thought of process when they sell their positions at the end of the day.

Usually, if you buy a dollar for 50 cents and ask the street if it's worth it, they'll tell you immediately that they can switch the wallet.

This is not the hardest part.

The hardest part is many developer companies have been valued at a discount to what they should be worth at.

Hence, you might always feel that they are justifiably "undervalued" all the time.

From the overall level, most developers are currently trading at a steep discount to their NAV, and is currently at a -1 SD valuation.

For City Development, their valuation is similarly close to -1 SD level, but there are more rooms to go down further if they want to match the 2016 and 2009 trough valuation level.

How Does City Development Compares Themselves Against Others?

The big boys are all trading at a steep discount to their book value.

If we revalue some of those assets, the discount gets even better for investors.

Take CDL for instance, while the Price to the Book is only at 0.72x, the Price to the RNAV is at 0.51x. The reason for this is due to the company not revaluing their investment assets and thus is recorded at cost in their book.

While they are all big traditional developers at one point in time, they have diversified their business model differently by focusing on different development at different geographical areas.

UOL and Hobee for instance have been diversifying into investment properties for some time to boost their recurring income. CDL has tried to follow suit by targeting a recurring EBITDA of $900 in their 10 years project timeline.

Capitaland has gone more into China while CDL and Hobee are targeting UK properties as their main overseas geographical areas for investment properties.

How Would I Play This?

Every developers are trading at a discount so they are all undervalued by its very nature.

Overseas diversification does not mean they are better, sometimes with all the foreign policy and forex impact, it can worsen the end result.

The cap rates for the investment properties are definitely more attractive than the local investment properties, and they are mostly freehold and yield a net property yield in excess of 5%, so you can see why everyone is gunning there.

I'd prefer to be paid while waiting so I would focus on property companies that paid the highest dividend yield while waiting for the industry to be re-rated.

CDL currently pays way too little dividend yield to my liking, so the entry price has got to be right at the trough of the valuation, else I might rather put my money in some undervalued Reits.

The Brexit impact is going to be felt quite badly in 2019, so I think we will see further downside and it will trough this year. That probably means we will not see good returns short term for CDL and Hobee, as well as Capitaland who is heavy in China. But that should give plenty of opportunities to investors who want to enter at the trough, and the rebound can give a decent return.

I don't fancy holding property counters long term due to the industry cycle which are uncertain and with discount rate going up.

Entering and exiting between the 0.5x to 0.7x range should yield better overall returns to the portfolio.

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Friday, January 4, 2019

The Golden Handcuffs

Your job pays you well. The benefits covered under your employment are comprehensive. You love socializing with your circle of friends.

Everything is good, except you dislike your job.

You dislike your job because it downbeats you hard enough to become a prisoner and dictates you to do things against your wishes.

On some days when things aren't so busy in the office, they seemed okay because you get paid by simply being present in the office. All you had to do is to wait out for your time to expire, whether it is 8 to 5 or 9 to 6 and the job is "done".

On days when it gets really busy and empowering, it can be frustrating for your well being because the company can extend your time without your approval and you just have to suck it up to finish the task. 

Worst, these aren't task that you truly enjoyed doing. 

Or at the very least, you don't feel accomplished even when you have finished the task.

You start pondering on your way home if the reward in terms of the pay and benefits which you received timely every month measured well against the work you are being pit against.

You can't leave your job even though you hated it.

The pay and the benefits reminded you once again inadvertently that you have nowhere to go but being here.

You wanted to quit but you cannot.

You are handcuffed by the glory of the modern prisoner of war.

The best alternative that you can convince yourself is to look elsewhere with a greener pasture but too often, the high reward comes with high responsibilities, and that means constant pressures, deadlines and stresses everywhere.

Nassim Taleb, in his latest book "Skin in the Game", provided examples how companies used this as a strategy to keep their operations afloat and running with precision timing.

In his argument, companies pay their employees fixed salaries because they need their staff to be present in the office all the time during the operation hours, even when there are no tasks to be done. This, he says, is to ensure predictability that there are resources before demand.

Imagine otherwise having a billion dollar company but no human resource to operate the demand when the company needs them most. The company could go down under eventually.

Ways To Break Away From The Golden Handcuffs

The golden handcuff can tie and commit a person harder than what most people think.

They are ruthless not because they want to but because they know your weaknesses as a human being and they exploit that weakness.

If you are in this situation, there are a few ways you can do to slowly break away from this cuff.

1.) Eliminate Your Bad Debts

Bad debts tie you down harder than anything else because it compounds for you the wrong way.

That means having interest after interest growing each day that it will be hard for you to reach reducing the original loan once it spirals down.

Bad debts also shows that you are poor at managing your life, and finances and it is time to overhaul the whole situation.

2.) Review Your Needs and Wants

Once you've overcome the first step of eliminating your bad debts, it is then time to have a review of what you really need before buying.

Impulse buying only adds up to chalking unnecessary expenses over time which you need to declutter at the end of every episode.

Understanding what your needs are also adds to self belief that you are actually in control of your life. This is Your life and this is how you want to handle it.

3.) Stick To Those Budget You Set

There are good reasons why every successful nations, companies and individuals set and stick to the budget they set for themselves.

Having a budget is akin to having a hot chick sitting next to us. It keeps us well in check when we are feeling unsure of ourselves.

4.) Grow Your Money

Achieving Point 1 to 3 is hard enough not to mention a whole section dedicating on the offensive to grow your money.

To be truly financially independent, you need to learn the skills on how to make money working harder for you.

Putting your money in the bank is a good first step which instills the very same idea that gets you interests over time which means you are growing your money but at a much slower pace.

To grow your money, you need to be an established player either in the entrepreneur or investing field and to become so successful you need to dedicate a lot of time and resources to make it happen. This takes time and effort.

Final Thoughts

Charlie Munger once said that humans are intrinsically addicted to three things: Woman, Alcohol, and Your Monthly Paycheck.

Whilst your monthly paycheck may be a comfortable source of avenue for you right now to live your life at your desired lifestyle, do know the fact that it can quickly be taken out from you at any point in time at any circumstances when you least expect it.

When that happens, you don't want to be in the wrong addiction side of things because it won't even matter to them what your case is.