Emotional Bank Account

An emotional bank account is a metaphor that describes the amount of trust that's been built up in a relationship. It's the feeling of safeness you have with another human being. If I make deposits into an Emotional Bank Account with you through courtesy, kindness, honesty, and keeping my commitments to you, I build up a reserve.... But if I have a habit of showing discourtesy, disrespect, cutting you off, overreacting, ignoring you and etc. eventually my Emotional Bank Account is overdrawn.

Excerpt from "The 7 habits of highly effective people" by Stephen Corvey

Hmmm... just realised that I always withdraw emotional account.. no wonder it's empty.. time to make some deposit asap. :)

Who took my money?

People always think that big paycheck can solve financial problem. For me, it’s partly true. The most important part before thinking and dreaming a big paycheck is to plan your expenditure.
Do you know that our expenses can be categorized into 3 parts?

1. Necessity
2. It’s Good to Have
3. You Don’t Die if You don’t Buy it

Firstly, let us look into Necessity expenditure. It is an expense that you MUST pay for it. If you don’t do it, you can lose yourself and your family. For example house mortgage payment, foods, diapers for your baby, water and electricity (utilities bill - but not ASTRO please!), charity & donation, your children school’s fees, insurance and others.

Next, It’s Good to Have expenditure. For most of people, a handphone’s bill. Books & Magazine. Annual Family vacation. Your first car that is used to go to office and for your family arrangement. Broadband connection for your home and others.

The the last and the most important category to be discussed, You Don’t Die if You don’t Buy it! It is expenses for your paid television channel - ASTRO, your second or third car, teh-tarik and roti canai at Mamak Bistro with you friends every day after work, new dresses and accessories just to follow the latest fashion on earth (which was actually also a new fashion in 1970s!) and all things that you buy and dream to have it for just for fun. And you will still alive healthily on earth even if you fail to have it.

However, different people have different needs. For me, handphone bills and broadband connection are necessity because I can’t make money without both of it. I’ve once “lost” around $5,000 - $10,000 just because I don’t pay my handphone bills earlier. Sigh. A very hard lesson for me though.

For now, just think about it seriously. Categorize your expenditure into 3 parts. Next post, you will learn how by doing these simple steps, you can reduce your debt headache, credit card burden and end-of-month financial cries, just by doing this.

excerpt from http://bicarajutawan.com/blog/?p=35

Which kind are you ?

1. Takers receive and never give.
Many people focus on themselves and rarely go out of their way to do anything for others.
Such people are takers. They worry only about what they can get, and they are never
satisfied.

2. Traders receive and then give.
Some people focus on keeping score. They are willing to give, but their primary motivation
isn't to help others. They see relationships as an exchange. Often they give because they
think they owe something to someone who has helped them, and they desire to make things
"even".

3. Investors give and then receive.
In this third group, people focus on others. They give first and then receive if something is
offered in return. They believe that success comes from being helpful, caring and
constructive. They desire to make everything and everyone touch better, and they
understand that the best way to accomplish that is to give of themselves.

So, which group do you belong ?

Excerpt from "Winning with People", John C. Maxwell

The power of the sword, the jewel and the mirror

The sword symbolizes the power of weapons. The jewel symbolizes the power of money. The mirror symbolizes the power of self-knowledge. This self-knowledge, according to Japanese legend, was the most treasured of the three.

Excerpt from “Rich Dad, Poor Dad by Robert T. Kiyosaki”

“He who knows much about others may be learned, but he who understands himself is more intelligent. He who controls others may be powerful, but he who has mastered himself is mightier still.” - Lao-Tsu, Tao Teh King

This two quotes truly shows that if you want to be anything that your hearts desire, whether its filthy rich, studdedly famous or get the woman / man of your dream, the FIRST STEP IS TO KNOW YOURSELF FIRST. Identify your strength and weakness and then you can conquer the world.

We all have dreams

We all have dreams.. We all want to believe deep down in our souls that we have a special gift, that we can make a difference, that we can make a difference, that we can touch others in a special way, and that we can make the world a better place. At one time of our lives, we all had a vision for the quality of life that we desire and deserve. Yet, for many of us, those dreams have become so shrouded in the frustrations and routines of daily life that we no longer even make an effort to accomplish them. For far too many, the dream has dissipated – and with it, so has the will to shape our destinies.

Ecxerpt from “Awaken the Giant Within by Anthony Robbins”

Analogy of a Frog and Personal Finance

If you were to pick a frog and put it into shallow hot boiled water, the frog will instantly leaped from the pot and jump out to safety. (As any right minded creature will do). However, if you were to pick up the same frog a little later and then put it into a shallow cold water, the frog will not react to it and will be comfortably be sitting there as it is a cold blooded animal. But, if you were to do an experiment (if you are sick enough to do this, though), heat up the cold pot with a very, very slow fire with the frog still sitting in it. The water will eventually rise up to 100 degrees. As any cold-blooded animal, the frog’s body will adapt to the rising heat and will adjust its blood temperature to the environment. Eventually, when the water reaches boiling point, the frog will die as a result of adapting itself to the environment without even realizing it.

So, what’s personal financing has have to do with the frog story? A lot. People who started off their career start just like the frog in the shallow cold water. The money they received by the end of the month is enough to get by since their requirement for life is low. But, as your career and salary increase so does your desires and lifestyles. As you start to buy your first car, buy your first house, started to use credit cards, your lifestyle will change incrementally but not as fast as your salary increase. As same with the frog, you will not notice that you have a debt problem since the increment is not sudden. And when you realize it, it is too late and you will end up with a huge pile of debt.