Introduction

Hi there! This will be my first official blog under this site. I am encouraged by Pastor Dennis to write my blog more on the serious and the educational and inspirational aspect specially in my area of passion FINANCES.

When I do financial seminar. Most often the questions that I get is how can I create wealth?

Personal finance is easy . Yah! Your right! It is easy if you know the fundamental law that governs your money. If you master this, you have mastered the entire game: To gain wealth, you have to spend less than what you earn and do it for a long long time.


That’s all it takes. Think of it another way. Think of it like an arithmetic equation:

[WHAT YOU EARN] - [WHAT YOU SPEND] = [WEALTH]

If you spend more than you earn, you are losing wealth. You are accumulating debt. You are heading in the wrong direction. However, if you are earning more than you spend, you are accumulating wealth. The greater the gap you can create between earning and spending, the faster you will accumulate wealth. There are only two things you can do to gain more wealth: spend less and earn more.

Spending less is something that you can do right now with little or no effort. Just stop spending money. Seriously. That’s it. Don’t buy things. Sure, you need to buy some things, but if you learn to pay less for the essentials (food, shelter, clothing), and if you can learn to reduce your wants, you can trim spending by a shocking amount. Learn how to shop for groceries and to make your own food. Develop a frugal mindset. Live simply.

Earning money is the other half of the wealth equation. If you can increase the amount you earn, you will accumulate wealth more quickly. Because earning money is so important, many personal finance books stress that your career is your most important asset. Your most important asset is not your house; it’s not your investment account; it is not — heaven forbid — your car. It’s your career and your capacity to earn.

This is why a college education is so important: it can help you land a better job, can increase your earning power. This is why your professional reputation is so important: what your employer thinks of you, what your co-workers think of you, what your customers think of you all play a role in your success. If you treat your career like a prized possession, you’ll have greater success at finding better paying, more-fulfilling jobs.

Smart personal finance really is this simple: spend less than you earn. What do I do with the money I make? First I set aside my best for God, my tithe to Him. Because He is my partner and the one who gives me the ability to produce wealth. Second set aside ten percent of what I make for savings and the emergency fund then adjust our standard of living to whatever is left. Let our standard of living adjust to what we make rather than asking our income to adjust to our standard of living. That makes a lot of difference.

If we continue to live a simple, frugal and discplined lifestyle of spending less than what you earn. When you grasp this concept, financial success and freedom is obvious.