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