A Letter abt Wealth n Poverty, what r they reli all abt.

Wealth n poverty, rich n poor. What r they reli all abt? Alot of ppl believe tt they r simply just how much money a person currently holds. Now is tt reli true?

Money is a strange thing, it shd be n always proves itself to simply just be a tool tt helps its owner realize some of his/her dreams. Money is also a v fair thing, it will love n stay with those who seeks it n manages it well, but it will also hate n leaves those who doesn appreciate it or wastes it.

Can U see what I m trying to say? I m just trying to tell U this, "wealth or poverty is actually a matter of Ur mindset." So when they say "the rich gets richer n the poor gets poorer", it is not just abt the money, it is also actually an issue of the ppl's mindset.
If U hv a poverty mindset, believing U r poor n will stay just like tt for the rest of Ur life, unbelieving tt U can be rich, then will U do anything to seek for riches?
If U hv a wealthy mindset, even if U start out poor, with a well-planned roadmap to seek after wealth, with determined n appropriate implementations of the plan, will it still be impossible to attain wealth?

One of the good books tt teaches abt financial management which I must reli recommend is the "Secret of Self Made Millionaires" by Adam Khoo. N in this book, Adam Khoo writes abt the 7 Steps to Financial Abundance, they r
1. Adopt the Million Dollar Mindset
2. Set Clear Financial Goals
3. Create a Financial Plan
4. Massively Increase Ur Income
5. Manage Ur money & reduce expenses
6. Grow Ur money at millionaire returns
7. Protect Ur Fortune
I will not seek to elaborate on this 7 steps, if U wish to find out more, I urge U to read this book by Adam Khoo (an entrepreneur who became a self made millionaire by the age of 26)

However, let us take a look at the 1st step "Adopt the Million Dollar Mindset", now do U see it, I am not the only 1 who believes tt "wealth or poverty is actually a matter of Ur mindset", even the wealthy entrepreneur who has proven himself to be successful also believes in this. The Wealthy Mindset is the beginning to living a life of prosperity.

I perceive wealth to be generated by 5 pillars

1. Earnings
The money tt U earn from Ur job or Ur business, Ur salary, Ur Commission, Ur allowance, Ur business's profit margin n inventory turnover.

2. Savings
Taking away Ur expenses n stuff, the money tt U can put into the bank to save.

3. Investing
Part of Ur savings tt U can use for Growth depending on Ur risk appetite

4. Protecting
Obviously the act of protecting Ur wealth from potential creditors, taxes n so on.

Hopefully these 5 pillars n my recommendation of the book will help U adopt a wealthy mindset and kickstart a life of prosperity.

I m v much into investing, n I wish now to dispel a myth abt investing. Ppl believe tt investing is for the rich, U need alot of capital to start n it is risky. Yes it is risky, but hello even crossing the road is risky isn it, n yet every1 does it. Yes, it needs capital, indeed great capital is needed to see fast rewards, but if u wan to start investing n compounding long term returns, even $100 a month is enough. ETF n Unit Trusts (Mutual Funds) invest in a basket of companies thereby providing Diversification to protect investors from Focus Risk. Did U noe tt with a affordable sum of money like ard $100 a mth put into a RSP(regular savings plan) of a fund n U can alredi start investing (of cos, U need to learn how to 1st find the right fund to invest in, Hello U still hv to do Ur homework, remember money comes to those who seeks it.)

U ask me abt shares. Well I can say tt shares need more effort n r riskier, but can reli generate greater returns, but to kick start U into investing I would recommend Mutual Funds n ETF. I would even speculate tt perhaps 10 yrs down the rd if the economy stays gd, n as more n more ppl r drawn into the world of investing, ETFs could possibly be the near future.
But tt doesn reli matter now, what reli matters is tt I urge U to start adopting a Wealthy Mindset.

To conclude let me say this, though money loves those who seeks it n manages it well, though it helps ppl realize some of their dreams, I urge U not to fall in love with money ever (the love for money is the root of all evil). Remember money is n shd only be a tool tts all. There r many things in this world much more precious than money n tt money cannot buy. Living a balance life is the key, do not love or hate money, it is just a tool n it shd just be treated as a tool.