Here for the first time? Welcome! My name is Nigel, and I'm the author/founder of NigelChua.com (more on me here). I've four core interests:
Leadership and Entrepreneurship - Ever since I started my entrepreneurial journey in 2008, it has profoundly and positively changed my life. For the better. I learnt how to challenge myself, overcome invisible habits/scripts, learnt from mistakes (my own and others) and more importantly, muster the courage to keep learning and growing and progressing.
Money and Passive Income - Mastering money, be it in big or small amounts, is one of the core pillars of life and freedom. Done well, mixed in with sound and conservative dividend stock investing, you can live a financially secure or financially free life.
Making Money Online - Building profitable online businesses by providing valuable products and services that solves problems to clients. Wealthy Affiliate (WA) is my #1 recommended platform to learn how to build profitable WordPress online businesses, including affiliate marketing, Amazon associates, e-commerce and more. Sign up for Wealthy Affiliate free membership here.
Targeted E-Leads Generation - building niche specific websites for offline businesses that ranks well in search engines, and gets free targeted online leads that converts to sales.Solo Build It (SBI) is my #1 tool for offline businesses local search engine optimization (SEO) domination, ranking and generating targeted business leads online. I've been using since 2010 personally for multiple projects. Read why I chose Solo Build It...and more importantly, why I still stay with Solo Build It (SBI) till today and use them exclusively for all my SEO, traffic and e-lead generation. Visit Solo Build It today.
The Opposite Of Irresponsible Spending Is Responsible (and wise) Spending
I covered about irresponsible spending in this article, where I shared about how irresponsible spending leads to a very vicious cycle of debt and financial pain.
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.
Note/Disclaimer: My writings and works are NOT financial advice.
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