being prudent about incomes and expenses, and applying wisdom to investing and managing expenses over time
Put into action, responsible spending includes:
saving as much as humanly possible by aggressively cutting unnecessary expenses
investing as much as possible into very stable and defensive dividend stocks or indices
offsetting costs by researching and planning medium-large ticket purchases in advance
budgeting "stupid money"
#1 saving as much as humanly possible by aggressively cutting unnecessary expenses
Human beings can be very interesting. The phrase that I refer to is how:
"we can try to impress others by spending money on things we don't care about/short term...for people who don't care anyway."
or "we need to spend X money on food/holiday/Y items cos we earned it/we worked so hard/we need to forget out pains"
I've seen this play out so many times, I want to say it's cliche.
But it's human nature, especially when one is stuck in a specific mindset and behavioral pattern.
If you are there, this is what which needs to be done:
ruthless and aggressive decision making to cull unnecessary expenses especially on things that one don't care about
sell off all the stuff that you don't use and use that to pay back all/any debts
start paying back as much as possible
move closer to work places and where you frequent, so that you don't have to take so much time and money to travel (cutting the need to buy cars or taking long commutes). Best is to walk to work and back - you get good exercise too.
On top of that, set aside 5-15% of income aside for #2 below.
#2 investing as much as possible into very stable and defensive dividend stocks or indices
Regardless of how much you make and how much debt you have...I highly recommend that you set aside 5-15% of your income to put into highly stable and defensive dividend stocks.
The reasons why I say this is because:
I want you to make it a habit to regularly stash 5-15% and invest this amount
I want you to have the joy of seeing and receiving passive income from dividends
I want you to have the joy of being ABLE TO CHOOSE if you'd want to use the dividends to pay down debt, reinvest them or put some of that to #4
It will be hard especially if you have debts, because debts are URGENT, with some elements of importance.
But building streams of passive dividend incomes IS IMPORTANT.
#3 offsetting costs by researching and planning medium-large ticket purchases in advance
This is smart and wise spending.
If you have to spend, might as well spend it wisely. Other than spending money on #2, you can also choose to spend money on medium to large ticket purchases, and when you research and spend time to understand - this is where you can save BIG.
This is more of a "working model", and applicable to instances such as
planning your trips at least 3-6 months in advance, so that you can take leaves to travel during low peak where travels and accommodations tend to be cheaper
if you're planning to buy a larger item such as phone, personal computer/laptop, household appliance - first ensure that the old one is not usable/fixable first, then only consider buying a new one. But even then, you research to find the best-value ones within a budget
And so on. Basically, plan your spending.
#4 budgeting "stupid money"
I have a small budget of 5% or $2000, which I allow for fun, and stupid experiments. This is where it's guilt-free, and tends to be taken from my passive income.
I realize I need to have creative avenues to test stupid ideas, make some silly choices and just to have fun (I do not want to purposely waste money, but I realize sometimes my curiousity really piques me, so I budget for such events in advance).
An example of this is carving out this budget so that:
I can "play" with high-risk low-cap cryptocurrency and penny stocks that I'm interested and intrigued with
I can buy a $600 DNA test kit to find out a little bit more bout myself (share more in another post)
I can buy a book, a game, whatever that is within the allocated "stupid money" budget - without guilt
(Note: I say "guilt-free" but sometimes, there ARE some guilt, because...it's fun).
This is part of my personality and characteristics, so I factored that into my budget.
join me in intuitive, loving, gentle and good success and self mastery that actually matter. no hype. no bullshit.
Hang around here for some time, you'd see that I don't
well with hype or bullshit. I can smell that typically a mile a way, and
I hate that shit too.
I've been working on myself and on
NigelChua.com for years, since 2006, and only in late 2019 I started to
focus on intuitive and loving leadership, entreprenership and personal
Here are some areas that I work on a consistent, ongoing basis.
I've been a premium member of Wealthy Affiliate since 2015 and there are a number of pros to be with them, which you can read at my Wealthy Affiliate review here.
One of my favorite points of WA is that they have a try-before-you-buy forever-free membership which you can sign up here for free. No credit card needed.
#2 Publish/Write Kindle Books For Recurring Royalty Passive Income
Kindle Money Mastery 2.0 is comfortably and confidently the best affordable Amazon Kindle Publishing Training Program Since 2013. It provides you a hand-holded step-by-step video training on how to write and publish a Kindle book in 24 hours or less.
Billionaires are investing in precious
metals and cryptocurrency such as Richard Branson, Peter Thiel, Eric
Schmidt, Michael Novogratz and not to mention scores of very smart
people and multi-millionaires like Tim Ferriss. I too am investing in
NigelChua.com has affiliate links which means I get paid a commission if you purchase a solution or product through my links (paid by the vendor) - thank you for your support and love. There are other ways to support / donate too.
Search In NigelChua
Hello, and welcome to NigelChua.com!
I'm the founder and writer of this site as well as senior hand therapist and director at Phoenix Rehab Group (phoenixrehabgroup.com).
Also husband, father, Christian, entrepreneur and dividend stock investor.
Link To Us!
- If you've enjoyed any of the articles here, I'll really appreciate
your help if you could link to the specific post/article/homepage from
your website, blog, LinkedIn or social media accounts such as
FaceBook, Twitter, Instagram etc - this will help us to grow and serve
you better - thank you! =)
Note/Disclaimer: The information in this blog/forum/comments is distributed on an "As Is'' basis,
without warranty of any kind. The site owner may have a financial
relationship with some of the companies or products mentioned on the
blog. This blog is a participant in the Amazon Services LLC Associates
Program and other affiliate programs, a means
for sites to earn advertising fees by advertising. Advertisement does not imply endorsement. Information might
not be completely comprehensive and some readers may want to consult
additional sources. This blog/forum does not contain professional
advice. For professional advice, consult a professional. By reading this
blog/forum/comments you acknowledge full responsibility for your actions with
respect to any loss or damage caused or alleged to be caused directly or
indirectly in connection with the blog/forum.