Great Ways to Save Money

Have you ever wondered how you could save money but dont know how? You dont have to worry as you do not even need to deprive yourself! You could start simply by:

1. reducing, stop buying or subscribing to magazines. Instead you could either borrow from family, friends or even the libraries. You could also consider going to the websites of the magazines and you will be surprised at the amount of free information you could get. Also, think about it, what do you do with the magazine after you have read it?
2. Shop at the hypermarts and/or warehouse sales as they usually have offers. Remember to stock up only on fast moving items to avoid wasting money on rancid food.
3. Eat at home. Eating out has become a convenience and convenience comes with a price as it is an activity which has become part of our daily fast pace lifestyle. Keep eating out as an activity to celebrate special occasions or minimise the number of eating out in a week. Instead of eating out 4X a week , you could take some time on weekends to plan the following week's menu.
4. Homemade skin care. Again, if you go to the internet you will be surprised on how you could save from using ingredients from your very own kitchen.  You can take care of your skin and still save money. Try this: Honey and oatmeal can exfoliate dry skin. - Ginger seeped in a bath softens your skin. - Cucumber and milk softens tired skin.

Without drastically changing your lifestyle, you have started your path on saving money. Secure your future by using these money saving ideas, today! Good luck!

Extra Income

Extra Income simply means an income that you can earn other than the monthly pay cheque from employment. This extra income can be used to buy the wants, spend on luxuries or even to settle outstanding debts. There are lots of uses when there is extra income. The "want" list is endless. Second income is definitely welcomed though not many would be prepared to work a second job.

When we compare income levels in different countries, it is evident that the average income per person is less than $15,000 a year. In other words, there are many people who live near the borderline. Extra Income will really come in handy.

There are a variety of options available to earn the extra income. These available options are targeted to generate employment and at people who can use their skills that are lying dormant to make some more money for themselves. In order to achieve a moderate success in generating an extra income we must be aware of our strengths and weaknesses. This would greatly help in selection of a most suitable way to generate extra income.

The selection process consists of logical steps. Firstly we need to ask ourselves of an honest opinion of our strength and what we excel in. What do people around us compliment or criticize us on? Are they merely perfectionists?

Internet can generate a whole lot of ideas for generating extra income. Network marketing in general market terms has been successful to some extent. Internet offers something similar also known as affiliate marketing. The internet also offers a host of other options like writing, advertising and simple non-technical jobs which can increase your regular income. This extra income that can be earned from these opportunities depends on how good your skills are in the field of your selection.

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) are open-ended investment funds listed and traded intraday on a stock exchange. They aim to track the performance of an index and provide access to a wide variety of markets and asset classes. The key to successful investing is to choose markets and asset classes that will rise in the long run and staying invested. 

ETFs are simple tools which can be used for a wide range of investment strategies.  An ETF combines the features of a unit trust with those of a stock.  Listed on a stock exchange, an ETF invests in a basket of stocks that aims to track the performance of an underlying index.  The fact that ETFs are straightforward, flexible and cost effective, it is possible for the entire portfolio to consist only of ETFs.

One of the strategies for value investors ie Strategic allocation is buy and hold. ETFs cover many asset classes and markets and are ideal to be used as portfolio construction tools for long term strategic allocation, especially with their low management fees. Investors who bought ETFs can keep their ETFs indefinitely as long as the ETF is listed.

Investing like most other things are not without risks.  ETFs do come with some risks and have different levels of complexity.  The more complex ones are unsuitable for the average or new retail investor.

Can You Make Money from Stock Market?

An excerpt I read in one of the free books I received from attending some of the money making previews said:

"More Millionaires have been created from the Stock Market than any other source ... Bloomberg Magazine."

Initially I was surprised. After reading the book, I realised that it is possible. If you venture into unfamiliar ground, there is always an element of risk. Like everything new, there is always risk. Before you go and dump your money into investing, learn the skills and follow the rules.

You must develop a plan of action and people generally do not plan to fail but they fail to plan. Once you have your plan of action, you must act on your plan. Wishing is not a substitute for action. In order to achieve your goal, you must take daily action towards your goal.

You can only achieve success if you put into action your plans and you must continually review your action plans and tweak it where and when necessary.

How Much Money Should You Invest?

As a first time investor, I would think it is best to determine how much money you should invest. You must first determine how much you actually can afford to invest and what your financial goals are.

First, let’s take a look at how much money you can currently afford to invest. Do you have savings that you can use? If so, great! However, you don’t want to cut yourself short when you tie your money up in an investment. What were your savings originally for?

It is important to keep three to six months of living expenses in a readily accessible savings account – don’t invest that money! Don’t invest any money that you may need to lay your hands on in a hurry in the future.

So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another source, such as an inheritance that you’ve recently received, this will probably be all that you currently have to invest.

Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your investment portfolio over time.

Speak with a qualified financial planner to set up a budget and determine how much of your future income you will be able to invest. With the help of a financial planner, you can be sure that you are not investing more than you should – or less than you should in order to reach your investment goals. Whatever the case, the onus will be on yourself to safeguard your money.

For many types of investments, a certain initial investment amount will be required. Hopefully, you’ve done your research, and you have found an investment that will prove to be sound. If this is the case, you probably already know what the required initial investment is.

If the money that you have available for investments does not meet the required initial investment, you may have to look at other investments. Never borrow money to invest, and never use money that you have not set aside for investing!

Develop Action Plan

“Develop a plan of action and act on your plan. Wishing is not a substitute for action … you must take daily action toward your goal. Remember, success is achieved only by those who try - and keep trying.”

- Napoleon Hill, author of Think And Grow Rich

I am consistently working towards realising my financial goals!

Online Trading

The amazing world of internet has brought about many changes in the way we conduct our lives and our personal business. We can pay our bills online, shop online, bank online and some would even date online!

Since the internet is available 24/7, we can buy and sell stocks online. The ability to look at your account whenever you want to is wonderful. Another advantage of trading online is that fees and commissions are often lower.

If you are new to investing, having the ability to actually speak with a broker or the live help is very beneficial. You must make sure that you learn as much as you can and do paper trade online before you start trading online with real money. This is exactly why I would encourage you to attend previews on investing seminars first to get some understanding. Of course, during the previews, the presenters usually present the seminars in such a way that making money is super easy. If only it is really this easy, why bother working, right!

One of the reasons that I had delayed opening an online trading account is I needed to feel comfortable with my broker. I've recently opened an online trading account a couple of months ago through a colleague's introduction to her broker. As I have never done any online trading before, I was fearful that if I hit the wrong button I might lose money, etc, etc. My broker seems quite helpful and he replies to my smses quite promptly too.

I met him to sign up for an account and also to have a better understanding of how the online system works. I would prefer to have a better understanding in order that I would feel comfortable to start trading online. After going through a brief hands-on, I feel that I am ready to give it a shot online.

Again, online trading is a beautiful thing – but it isn’t for everyone. Practice, practice and more practice using paper trading before you decide to trade online with real money and make sure that you really know what you are doing!

2010 Financial Planning

For 2010, I will be keeping track of my expenses especially the ones using the plastic money (aka credit cards)! Although at the seminars/previews most of the presenters tell you its best to use giro for your settlement of the regular bills and credit cards, I prefer not to as I tend to lose track of my bills once these go on giro. I dont even look at the statement.

Now, I only put those on giro only for those organisations that insist on giro such as CPF Board for the maid's levy.

I also subscribe to credit cards when there are benefits such as discounts or rebates each time you use your credit card. To get rebates from your utilities' bill, I charge this expense to my POSB Everyday card, for an extra 100 free sms from Starhub, I charge the expense to another of my credit cards so as to get both reward points from my credit card and the free sms.

Remember so long as you settle your credit card payment promptly, you can always ask for a waiver of the annual fees. Never ever pay the minimum amount or any amount other than the grand total for the month. It just take once to rollover and you will be facing a high interest from the banks.

Wealth Habits

After almost a year after attending the Wealth Academy workshop, I finally listened to the CDs which were handed to the participants of the Wealth Academy workshop. It's an eye opener for me as prior to attending this course, I would not have had the courage to do any investing at all. After this course, I now know that it is possible to have a passive income in various other forms such as investing, internet marketing, etc.

As in most activities in the real world, investing is risky only if you are not properly equipped with the right information. Similarly driving a car is dangerous if you are not trained as you can get into an accident and even die from it.

In one of the CDs, the top 10 wealth habits are:

1. Do a lot more than what you are expected to do to create value
2. Be proactive - no immediate opportunity, create your own
3. Delayed gratification. Be prepared to invest your time, patience and fund
4. Passion. To succeed, you need to do what you love
5. Continuous and never ending improvement. How can you be better today than yesterday?
6. Commitment - Willing to do whatever it takes by putting yourselves on the line.
7. Integrity - Be responsible and people can trust you and give you their business and partnership.
8. Discipline - have your own set of rules and never break your own rule
9. Play Win-Win - never think of how you can make more at the expense of others.
10. Ability to turn any kind of failure into feedback.

Goal Setting

My first encounter with passive income was when I attended a 4-day workshop known as Wealth Academy, conducted by Adam Khoo, Stuart Tan, Conrad Alvin Lim & Patrick Cheo from Adam Khoo Learning Technologies. There were so many things to learn in the 4 days and it was from 9 am to about midnight during the 4 days.

Prior to attending this workshop, I knew nothing about passive income. To me, income has always been through work. It has always been home to work and work to home. Weekends are for marketing, recharge, reading magazines, shopping, watching TV and sitting by the beach.

This course gave me a new direction in my financial planning. I now focus on setting SMART goals which means these goals must be (S)pecific, (M)easurable, (A)ctionable, (R)ealistic and (T)iming.

Options as an Investing Vehicle

I previously attended a 2-hour seminar on Options Trading conducted by an experienced options trader. Very interesting. I've heard of how $ can be made quite "easily". So naturally, I was keen to read more about this. It just seemed so easy spending about 30 minutes a day after knocking off from work just seems too good to be true. There were a lot of participants and the testimonials from past participants were very convincing.

Prior to this 2- hour seminar, I've also attended another money making 4-day course, conducted by Adam Khoo Learning Technology Pte Ltd. Though the course is very inspiring and an eye opener, unfortunately, I have yet to put what I've learned into practice. I would need to attend the refresher course at some stage soon so I can at least recover some of the course fee.

The course fees for these money making courses are in multiples of 1K! So I must really focus on my financial goals in order to recover the course fees!

Anyway, after attending the seminar and the the course on Options, I felt that I needed to understand Options much more so I searched the net for more information on Options and came across so many articles on Options! I suppose the most basic thing to do is to understand the basic terms for Options and hopefully I can really trade profitably. I remembered one of the trainers in a self development course that I took said that unless you are properly trained in a particular field, there will always be risks.

Options Trading can help manage risk and can be profitable though a good foundation knowledge is essential in order to benefit from them. What I did was I googled the terms and further educate myself on these terms. Knowledge is very important as the more I know the better off I will be with less chance of losing money!

Anyway, Options are derivatives of something. This means an option gains its value from some underlying instrument ie stocks, commodities, futures contracts, foreign currencies or stock indexes. So the options contracts would base its value on the values of whatever instrument you want to trade.

Generally an option is a contract between a buyer and a seller. In a contract both parties have to agree upon certain things. One of the first things that the two parties need to agree upon is the price. In an options contract, the underlying instrument is bought or sold if the options is exercised. So the buyer of the options contract reserves the right to purchase or sell the underlying instrument for a specified price or strike price.

Option has an expiry date. It expires on the 3rd Friday of every month and if Option is not exercised by then, it will become worthless. So what happens if it's a public holiday on Friday? Options will then expire the day before the holiday. BTW, these holidays are based on US holidays.

About Me

Hi

My name is Normah and I am very excited to share with you my experience in wealth making opportunities. I’ve attended a 4-day workshop with Adam Khoo Learning Technologies,a 3-day workshop on Options with Wealth Mentors and also a 2-day blogging workshop conducted by Alvin Phang of Socialmatic. I will be sharing my learning experience in all these workshops in my posts.

Apart from my interest in blogging, I also love cooking & baking. I will also be uploading my recipes for you to experience the healthy, delicious, quick and easy recipes.

Like some of us, life is not a bed of roses. Though I was "blessed" with a son, he was diagnosed as a cerebral palsy child at one year old and then at 7 years old he had stroke. Stroke caused him to lose his vision. He will be 12 at year end. I have provided information on his development as well as the challenges in taking care of him on my site.