Savings + Investment = Financial Freedom

Everyday is like the Sunday. You can choose what time you wake up, what time you can go out to either church / temple or shopping, what time you can do the things you like to do (provided it is regulated by law). 

I have several friends who achieve financial freedom is living like what I mentioned above. But how do they make it? How is their lifestyle? What make them success in financial freedom? 

As a human beings, we have a choice to live better, and be a better man. I always believe that be a hardworking man will make you not be struggled of the hunger. Nevertheless, I would like to share with you a story which I read from a book (The Richest Man in Babylon):

George S. Clason wrote this timeless classic in 1926 and it’s based on stories, parables and clay tables dating 4,000 to 6,000 years ago from the ancient civilization of the Babylonians. It goes on explaining the simple and effective laws of how to handle money, which show the path leading to improved personal wealth. The people of Babylon discovered this path to be attainable by anyone and the same laws are just as true and just as easy to grasp to this day. This is the book everyone ought to read no matter what your previous knowledge and experiences in financial literacy are. So if you’re troubled by the stringency of a lean purse, start by listening to the words of Arkad, the richest man in Babylon.

The main concept of this story is to put aside at least 10% of your income to a saving funds.
So at the end of the year, you will have at least 1 month savings which can be treated as 1 month extra money for your to invest. The 10% savings will not give you a major impact in your daily activities. Especially for Malaysian and Singaporean, their savings rate are among the highest if not the highest in the world. As a Malaysian & Singaporean, you must very proud that you are able to save at least 10% of your savings from your salary, although it is controlled by the government (CPF / EPF). 

Every half a year, you are able to pick the best business that you can invest in. But how do you pick a star performer? Basically we can come from several perspectives: 

1. Pick the sector you are most familiar with
2. Pick the experience fund manager that can perform constantly well
3. Pick the experience Financial Adviser / Remisier that you can trust with

Conclusion:
Savings is like addition; Investment is like Multiplication. To speed up the way you achieve financial freedom, you must first start saving and invest in a regular basis. Good luck!

Posts you may interested in:

•  Pick the stock you are most comfortable with
• My Equity Portfolio Contruction Process
• 6 Questions an investor should ask before invest
• Pros and Cons you manage fund yourself
• Public Transport Progress in Iskandar Malaysia
• Why I do not like to invest more in Bull Market
• Property Investment - ROI
• Property Page
• Savings / Personal Finance Page