What type of Wealth Accumulator are you?

In The Millionaire Next Door, Thomas Stanley and William Danko classfied people into 3 different types of wealth accumulators: The Under Accumulator of Wealth (UAW), the Prodigious Accumulator of Wealth (PAW) and the Average Accumulator of Wealth (AAW).

(Image source: amazon.com)

Hobbies Can Make or Break You

I think that one important that can make or break you, at least financially, are your hobbies. There are many types of hobbies, some of which range from the expensive, for example traveling, to free ones such as jogging, reading or blogging. There are also some hobbies that can even help us make money by using some of the information acquired with our interest in the topic, for example investing.

Is Retiring a Millionaire Just a Dream?

Is being a millionaire an almost impossible dream? In reality, most of us are going to need at least that magical seven digits in order to retire comfortably. It's a self-fulfilling prophecy at times, thinking at it is too large a sum basically convinces us not to even try. But then, is it really that hard to reach the seven-digits? I'll break down the numbers in this post into annual, monthly and daily savings that we will have to start in order to reach it, to prove that it's not so impossible for most of us.

Saving as a Student

Happy (belated) Youth Day to my younger readers!

I'm not really sure of the number of younger readers that I have, but I'll be sharing some numbers on saving money as a student, the importance of doing so as well as some tips on saving money as a student. Saving is a habit that should start from young and hope to encourage younger readers to adopt this good habit as well.

(Image source: http://timobrienhomesblog.com/2010/07/09/summer-energy-saving-tips/)

4 Quadrants of Money Management

I was thinking about Stephen Covey's 4 quadrants of time management, which I read in his book 7 Habits of Highly Effective People. I think that this is not only applicable to managing our time but can also be used in managing our money as well.

(Image source: http://czarto.com/2012/04/24/four-quadrants-of-time/)

5 Ways to Start Building your Emergency Fund

This is a continuation from my first post on What is an Emergency Fund and Why You Should Have One. This post is going to show you some tips and ideas on how you can start to build your emergency fund if you have yet to do so

(Image source: http://www.inc.com/magazine/201405/alexa-von-tobel/need-for-freedom-fund-savings-living-expenses.html)

What is an Emergency Fund and Why You Should Have One

What is an emergency fund? It is cash that you have saved up just to settle some unexpected events or accidents that life hands to you. How much should you have in an emergency fund? That depends more on your current situation, such as being self-employed or employed in a high turnover industry, but one guideline that I like to follow is around 8 months of expenses, which I got from Suze Orman. More on why and what an emergency fund should be made of will be covered in this blog post.

(Image source: http://www.inc.com/magazine/201405/alexa-von-tobel/need-for-freedom-fund-savings-living-expenses.html)

What is your Time Value of Money?

Was thinking about this question as different people would place a different time value on their money. Some would be willing to give up high potential returns in exchange for instant gratification while other would be more willing to save and invest the money and let it grow so they have more in the future.

How Much Do You Need to Save for Retirement?

This blog post is just to show the amount of money that we should be saving for our retirement. Most of this would just be some of the numbers that I have calculated to show the amount that we should be saving to ensure that we will be able to build up a sufficient nest egg for our retirement. If you want to learn more about saving up for retirement, you can read my post on it here: Ways to Begin Saving for Retirement

(Image source: http://www.bankingsense.com/how-saving-slowly-over-time-builds-your-retirement-portfolio/)

Saving - More Money Through the Door

This is the second part of the Saving, where I will cover ways to help increase the amount you can save. In the previous part, which can be found here, I covered how to start cutting down on your expenses first by recording them then analyzing and removing those unnecessary ones.

This second part will sum up the Chinese phrase "开源节流", which means to increase income and cut down expenses. So cutting down expenses has been settled now let's go into some ways in which you can start increasing your income

Saving - Start knowing where your money goes

This is one part of Saving where I will cover some of the changes you can make to start increasing the amount of money you can save which would be the first step in your investing journey, the next part on increasing your income can be found here.

Whether you decide to use a budgeting app or write them on excel or just use a good old-fashioned notebook, keeping track of where your money goes is one of the first steps to starting to save. By knowing where your money is disappearing each month, we would know which are the areas that we can cut down our spending on or avoid completely.

For this, I usually like to group my expenses into 4 groups : Subscriptions, living expenses, enhancements and others