your road to success…. chapter 1. why do we need to change?

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

CHAPTER 1

WHY DO WE NEED TO WHY DO WE NEED TO CHANGE?CHANGE?

THE ONLY THING THE ONLY THING KEEP CONSTANTKEEP CONSTANT ISIS

CHANGE.CHANGE.

SEE THE CHANGES AROUND US:SEE THE CHANGES AROUND US:THE PEOPLETHE PEOPLE; OUR RELATIVES, OUR ; OUR RELATIVES, OUR FRIENDS, OUR FRIENDS, OUR COLLEAGUES………….COLLEAGUES………….THE WAY WE LIVETHE WAY WE LIVE; FASHION, FOOD, ; FASHION, FOOD, NEEDSNEEDSTHE TECHNOLOGYTHE TECHNOLOGY; ; INFRASTRUCTURES, BUILDING, INFRASTRUCTURES, BUILDING, COMMUNICATIONS………COMMUNICATIONS………ETCETC

•Scared of leaving their Comfort Zone

•Scared of Losing something in their life

•Ignorant to the changes In the outside world (Narrow mind)

WHY PEOPLE DO NOT WANT TO MAKE CHANGES?

CHANGE because of CHANGE because of SELF-CONSCIOUSNESSSELF-CONSCIOUSNESS，， TAKE ACTION TAKE ACTION NOW………NOW………

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

CHANGE- Because we demand for more….

9-5 lifestyle, RAT-9-5 lifestyle, RAT-RACERACE

Freedom in LifeFreedom in Life

TRAVELLING

HOUSE & CAR

Mansion

LUXURIOUS LIMO

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

BETTER QUALITY OF LIFE

FINANCIAL STABILITY

BETTER WELLNESS

BUT, WHAT LET YOU DOWN?BUT, WHAT LET YOU DOWN?

YOUR INCOME?;YOUR INCOME?;YOUR QUALIFICATION?;YOUR QUALIFICATION?;YOUR KNOWLEDGE?YOUR KNOWLEDGE?YOUR PERSONAL ABILITY?YOUR PERSONAL ABILITY?ETCETC

People who curb their needs

according to their Income

People who Increase their Income according to their dreams

(Working Group)：

1mth x 4weeks x 5days x 8hrs=160hrs

Weekly income:

$5500.00÷160hrs=$34.38

$$34.38/hr34.38/hr

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

After 20 years’ saving：－

$5,500 x 12mths$5,500 x 12mths x 20yrsx 20yrs ＝＝ $1.32 $1.32 millionmillion

$1.32 million is sufficient $1.32 million is sufficient to support your commitment to support your commitment after retirement ?after retirement ?

BILL GATES earns BILL GATES earns $500/second$500/second ，，

Every hour earns $1.6 Every hour earns $1.6 millionmillion

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

ACCORDING TO THE STUDIES FROM YALE UNIVERSITY：

Depend on support from Children/CPF

Able To Retire, but Cannot Over Expend

54%

36%

5%

4%

1% IDEAL LIVING STYLERic

hFinancially Freedom

Continue to Work

Death

REAL LIFESTYLE AFTER YOUR REAL LIFESTYLE AFTER YOUR RETIREMENT….RETIREMENT….

YOUR ROAD TO SUCCESS….YOUR ROAD TO SUCCESS….

WHAT IS OUR PLAN NOW WHAT IS OUR PLAN NOW ??

TO ENSURE THAT AFTER TO ENSURE THAT AFTER RETIREMENT, WE WILL RETIREMENT, WE WILL BE AT THE HIGHEST PEAK BE AT THE HIGHEST PEAK OF THE HIERARCHY? OF THE HIERARCHY? (1%)(1%)

YOUR ROAD TO SUCCESS….YOUR ROAD TO SUCCESS….

DEBTS / LOAN REPAYMENT:DEBTS / LOAN REPAYMENT:

Income < ExpenditureIncome < Expenditure

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

Break Even:Break Even:

Income = ExpenditureIncome = Expenditure

‘ Trading Time For Money’ game- you can never reach true FINANCIAL SECURITY

DEFINITION OF FINANCIAL SECURITYDEFINITION OF FINANCIAL SECURITY ：：

Do You Have this amount of Do You Have this amount of SavingSaving ？？

Example:Example:

Monthly Income Monthly Income ＝ ＝ $5,500 (Single)$5,500 (Single)

Your SavingsYour Savings ：： (After deduct Expenditure)(After deduct Expenditure)

18 months18 months x $3,500 x $3,500 ＝ ＝ $63,000.00 $63,000.00 (Savings(Savings))

1 ½ years saving in the bank1 ½ years saving in the bank

YOUR ROAD TO SUCCESS….YOUR ROAD TO SUCCESS….

FINANCIAL SECURITY:FINANCIAL SECURITY:Residual Income > ExpenditureResidual Income > Expenditure

Without WorkingWithout Working ，， How much How much asset can produce the income asset can produce the income

FOR YOU?FOR YOU? IN FUTUREIN FUTURE ？？POSSIBLITYPOSSIBLITY ？？

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

0

20

40

60

80

100

AGE

% AGE

RESIDUAL I

0

50

100

AGE

%AGE

RESIDUAL I

AGE LINEAR INCOME AGE LINEAR INCOME ，，

““ NO SECURITY”NO SECURITY”

AGE RESIDUAL INCOMEAGE RESIDUAL INCOME ，，

FREEDOMFREEDOM！”！”

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

FINANCIAL FREEDOMFINANCIAL FREEDOM ：：

RETIREMENT!RETIREMENT!

DO NOT NEED TO WORK FOR DO NOT NEED TO WORK FOR MONEYMONEY ！！！！

YOU DO WHATEVER YOU LIKE TO DOYOU DO WHATEVER YOU LIKE TO DO

YOUR CHOICEYOUR CHOICE！！

YOUR ROAD TO SUCCESS….YOUR ROAD TO SUCCESS….

EventEvent DescriptionDescription AmountAmount$)$)

IncomeIncome SalarySalary Part timePart time Commission/ OthersCommission/ Others $5500$5500

YouYou $4000$4000 －－ －－WifeWife $1500$1500 －－ －－ExpenditExpenditureure

Rental/Rental/Housing Housing RepaymentRepayment

$800$800 Car repaymentCar repayment $1600$1600 $5150$5150

Telephone billTelephone bill $150$150 Water/ Electric billWater/ Electric bill $100$100

Insurance Insurance premiumpremium

$300$300 PetrolPetrol $300$300

Money for Money for parentparent

$500$500 Baby sitter/ maidBaby sitter/ maid $500$500

Children Tuition Children Tuition feefee

$500$500 MealsMeals $300$300

Credit CardCredit Card $100$100 othersothers

BalanceBalance $350$350

Case 1Case 1 ：： Mr. TanMr. Tan （（ Both Couple working, whilst 1 child Both Couple working, whilst 1 child

schoolingschooling 〕〕

EventEvent DescriptionDescription AmountAmount$)$)

IncomeIncome SalarySalary Part timePart time Commission/ OthersCommission/ Others

YouYou

WifeWife

ExpenditExpenditureure

Rental/Rental/Housing Housing RepaymentRepayment

Car repaymentCar repayment

Telephone billTelephone bill Water/ Electric billWater/ Electric bill

Insurance Insurance premiumpremium

PetrolPetrol

Money for Money for parentparent

Baby sitter/ maidBaby sitter/ maid

Children Tuition Children Tuition feefee

MealsMeals

Credit CardCredit Card othersothers

BalanceBalance

Case 1Case 1：：

With our present situation,With our present situation,

Overseas TravellingOverseas TravellingEntertainment Entertainment Beauty Saloon/ Fitness CentreBeauty Saloon/ Fitness CentreBuying New FurnitureBuying New FurnitureCar MaintenanceCar MaintenanceMedication Medication Better Education to ChildrenBetter Education to Children

HOW MANY YEARS MORE WE HOW MANY YEARS MORE WE PLAN TO WORKPLAN TO WORK？？

10 Years10 Years？？ 20 Years20 Years？？ 30 Years30 Years？？ 40 Years40 Years？？

Residual income Residual income > Expenditure> Expenditure$2000 X 12mth = $24,000

$24000 ÷ 3% * = $800,000

Do you haveDo you have $800,000 $800,000 Asset (Residual Income) to support Asset (Residual Income) to support our MONTHLY expenditureour MONTHLY expenditure？？

CAN WE RETIRECAN WE RETIRE ？？Bank Fixed Deposit: 3% per annum

Inflation Rate Vs. F.D Rate

THOUGHT ATTITUDE

OUTCOMEOUTCOME

““DOING THE SAME THINGDOING THE SAME THING ，， BUT EXPECTING BUT EXPECTING DIFFERENT OUTCOME - STUPIDITY”DIFFERENT OUTCOME - STUPIDITY”

- ANONYMOUS- ANONYMOUS

YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….

YOUR THOUGHT DETERMINES YOUR WAYYOUR THOUGHT DETERMINES YOUR WAY

TO CHANGE - YOU NEED TO PAY THE TO CHANGE - YOU NEED TO PAY THE PRICE PRICE

STAYING UNCHANGE – YOU NEED TO STAYING UNCHANGE – YOU NEED TO PAY MORE PRICEPAY MORE PRICE ！！！！

YOUR DECISION TODAY DETERMINE YOUR DECISION TODAY DETERMINE YOUR FUTURE.YOUR FUTURE.

ACTION NOWACTION NOW ！！！！YOUR ROAD TO YOUR ROAD TO SUCCESS….SUCCESS….