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Beyond Inflation For The Little Red Guy on The Little Red Dot?

December 18th, 2007 by Wai Loong (1 Comment)

Ask the average little red man if he knows how the “little red dot” comes about and you’ll see a blank stare. Come on… I can easily imagine you stretching your face right now! In any case, the “little red dot” is best traced to Dr Habibies reference to Singapore as the little red dot back in 1998. It’s been nearly 10 years since… and the dot has exploded quite a bit. Not many people have realized how the dot has exploded into a splash of blood on the little red man’s face…

If you see red already, then I’m sorry. No offense actually but that’s the way it is now.

The Monetary Authority of Singapore (MAS) has already projected some average inflation to sky rocket to 5% by year 2008 … from the current rate of 4.5%.

Pretending that it’s happening only here on little red dot is like putting one’s head in a hole like an ostrich.

In USA alone, wholesale price jumped 3.2% in November 2007, the highest since 1947. Energy prices surged to record high by 14.1% in the same month. The low Federal tax cut announced last week knocked investors’ confidence down the rabbit hole.

Are you still with me?

I know that’s a lot of news recently… so how can the average little red man maintain composure? How does one keep at peace and harmony and with the changes in the economy?

I’ve written a couple of articles in the last two weeks about integrating happiness, wealth and joy into one’s life. Much of them have been distorted and even badly misunderstood. I’m not surprised actually. These are topics rarely discussed in depth, let alone for many average little red man (or woman) who are still struggling in life without a meaningful purpose yet.

In the long run, all of us will die right?

That’s quite a bit of red for the little red man, no?

Well, the truth is, the governor of the little red dot will claim much of your wealth in the form of estate taxes and possibly medical bills. If you live outside the little red dot, don’t think you’re free from this problem. It’s an universal duty you’ve to pay for the mess you’ve created.

And if you didn’t think it’s a mess, just because you think you’ve been a great resident, then we should explore ways how we can integrate money management into our lives. That’s integrating wealth management and happiness into our life… not treating them separately… and I trust you may have seen the big differences! And of course, not to forget making contributions back to our fellow countrymen that may make our lives on this planet worthwhile!

#1: First thing first.

Inflation is tricky right? How about basic money management?

Basic money management is not difficult. Discipline is.

Basic money management skills is about…

  • paying yourself first before paying anyone else (that’s a lot harer than you think it is!)
  • keeping track of your daily expenses and watching your monthly cash flow
  • walking from point to point whenever possible instead of taking public transport
  • consider purchase carefully and wait for discount when planning to buy high ticket items
  • buying quality necessity items instead of multiple inferior ones
  • buying grocery in bulk at much discount whenever possible
  • avoid turning on air conditioner, use fans instead
  • investing in air conditioning units with inverters (if fan is out of question for you)
  • embracing natural gas for your automobile
  • paying up in full for your credit card bills before they are overdue
  • finding good financial advisers to fix your financial deficiencies
  • investing in your own financial education

To beat inflation, some fundamentals have to be laid first and some sacrifices have to be made. To certain extend, bad habits have to be corrected and to be replaced with financially sound ideas/advices.

#2: Building assets, not liabilities

What’s the greatest assets do you think you have?

Come on… make an intelligent guess before you read on?

.

.

.

Here’s a list you might have come up with:

  • Your balances in your bank account?
  • Your fully paid real estate/property?
  • Your businesses?
  • etc?

I’m afraid our greatest asset is our ability to earn our current income and diversify our existing tangible assets into future earnings.

True, inflation will happen whether you enjoy it or not. It’s a lot like going through the pain of conscription or national military service while making merry out of it. And that is nearly EXACT to what I mean by integrating happiness and joy into your life as you navigate successfully (or not) through your own uncharted financial world.

Interestingly, most folks do not perceive their mind and body as assets. Any fool can say that health and happiness is most important to them. But what about their mind? Feeding your body with nutritious food is one thing, but what about your mind?

What are you feeding your mind daily? Junk information such as gossips or bad news from the newspapers? Or are you learning new survival gold nuggets daily?

What massive actions are you doing to boost your own assets that can easily beat inflation by multiple, if not hundred folds? I firmly believe that careful choices made now has huge long term development impacts… and they must be favored against short term gains… even at the expense of little sacrifices now.

The good news is – even the little red guy like you and me can!

It’s more likely a matter of willingness and courage, and only if you trust yourself enough!

Having said much, I believe it’s more important to putting plans into massive actions, no matter how little you think it might mean in the short term. Sometimes, you might need a little boost from external…

and that is to…

Expand your social network

Have you heard about the concept of 5 degrees of separation?

Somehow, this concept has become more of a self-fulfilling prophecy… and in case you’re wondering what that is all about, here a simple briefing:

Imagine you want to get to know somebody of interest, but you don’t have an idea how that can be done. The concept of separation predicts that that if you know a friend (which you do don’t you?), and through your friend’s friend… and down another 3 levels, you’ll get to contact to that somebody that you originally wanted to get in touch!

Wow! That’s a very powerful concept isn’t it?

I came to learn about this powerful knowledge a couple of years ago and I thought that’s only theory – until I found real use of it quite by accident!

By expanding your social circles towards like minded individuals, you can really boost your chances to identifying new friends who may be able to assist you, or even accelerates your learning curve.

If you’re unsure how to go about doing that, begin by trying out small steps with social networking tools like LinkedIn and Facebook and you’ll be surprised how far technologies like these can carry the little red guy!

Hmm… I almost lost track of time as it’s getting really late over here…

And as the holidays are just around the corner, I’d like to wish you a very warm and joyous season… and may your heart be filled with joy and laughter!

I’ll see you again before Christmas and have a great week ahead!

Posted in Life

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::Comments::

One Response:

1
Leong Wei Beng on December 18th, 2007 at 9:11 am

In my humble opinion, real happiness can only be achieved when you attain a balance between Mind, Body and Spirit.

You cannot achieve true happiness when the spiritual health is lacking..

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About Insights, Inspirations, Tranquility, Peace and Harmony

Ng Wai Loong

Wai Loong is an electronics engineer by profession. He currently resides in Singapore, a thriving hub at the heart of South-East Asia. When he is not so stress out on the computers or laboratory, he enjoys value reading, jogging at his own pace and blogging in his spare time. Other times, he likes to catch up with some close friends over a cup of latte or teh tarik. As a gift from this friend, you are invited to interact freely with him on his personal blog.

PS: May the person reading this blog transforms his/her businesses, finances, relationships and life for ALL to WIN!