Singapore is known for being one of the most expensive places in the world to own a car. At the time of this writing, a new family car like a Toyota Corolla 1.8L would have set you back by S$165,000 (about US$132,000). If the price of a basic BMW 7 series cost nearly S$400,000 (about US$320,000), try guessing the price of a new sparkling Ferrari!
Even with such exorbitant prices, exotic cars such as Bentley, Lamborghini, Porsche or the more common ones like Audi, BMW, and Mercedes-Benz are plying Singapore roads daily. While many believe the car you drive reflects the level of success you have achieved, the reality is far from the truth!
A rat race is defined as an endless, self-defeating or pointless pursuit of a competitive activity. Imagine a rat in the laboratory trying to escape while frantically running around a maze or in a wheel. This analogy is often used in reference to work in our modern society. Most people enter the rat race to earn income. They travel to work early in the morning, work very hard to get a promotion (hopefully) and then work even harder for the next promotion (again hopefully). This corporate ladder climbing continues until they peak and stagnate at a certain level. As there is only one CEO and few senior management positions in an organization, only a handful of employees would be promoted to these appointments. What are the chances of people reaching the highly coveted management positions in the course of their career?
There are many different interpretations of financial freedom. Try asking your family and friends what financial freedom means to them and they would likely be giving you different answers.
Some people define financial freedom as being very rich. To some, financial freedom is being able to afford anything that one desires. Then there are those who think that being financially free is to be totally debt-free. Still, others see financial freedom as having sufficient money to retire. Hence, financial freedom means different things to different people. What does it mean to you?
Successful people always begin with a dream. They dream big dreams and display great courage to do things that others say cannot be done.
Your dreams form the foundation of success. Many people have long forgotten the dreams they used to have when they were kids. As they progress in the journey of life, they are simply too tied up with their work activities so much so that they failed to discover what they really want to pursue in life. They constantly find themselves trap in a routine work system that can potentially rob them of their dreams.
If you want to take control of your financial destiny, you really need to know the difference between assets and liabilities. People often get confused when they start classifying what they currently own into assets and liabilities. To many people, houses and cars are considered assets. Furthermore, houses and cars are recorded under the assets column of the balance sheet in accounting practices. But are they really assets in the true sense? Yet, the answer can be both a Yes and a No!
Millionaires see things differently from what others see. They see opportunities in all areas of life when others see only problems. A millionaire stumbling upon a pile of scrap metals could see the making of wonderful sculptures for the collectors market. For every problem, there could be abundant opportunities present.
If you want to be ahead in your finances, you certainly need to plan for it and be organized. First and foremost, you must calculate your net worth. This is the most important starting point. Your net worth is the grand total of your assets minus your liabilities. It is a very useful tool to measure your financial progress. In determining your net worth, you need the financial information concerning all the things that you own and the debts that you owe.
Kelvin Wong is a millionaire investor, author, and landlord in 3 countries. He currently owns a multi-million dollar property portfolio in Singapore, Australia and Malaysia. With his assets generating multiple streams of income to sustain his desired lifestyle, Kelvin became financially free at 39. He holds a Bachelor of Business (Dean's List) degree and a Diploma in Business Management. Kelvin writes about building wealth and achieving financial freedom in his free time.
Copyright © 2011 Kelvin Wong
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