Self Worth or Net Worth

Placing too much importance on appearing rich can affect one’s net worth. One may want to delay self-gratification in order to build a strong financial foundation

I ONCE asked someone who looked like a million dollars on the outside but was totally broke, this question:“Is your self-worth destroying your net worth?”

Some of us have defined our self-esteem from the external things - the car we drive, the handbags we use, even the pen we write with. We want to be seen as “rich and successful” but we are secretly struggling with our finances.

Even if we are not broke, some of us have placed the external outlook of ‘looking rich’ as more important than the milestones in our lives, for instance ensuring a secure retirement or building a strong net worth that can last throughout our lifetime.

Wanting to ‘keep up with the Joneses’ maybe due to a lack of self-esteem. Those who buy things they can’t afford sense a boost in their self-confidence by having these things, particularly in the public.

Having luxurious items is fine as long as you know your net worth can sustain it and you do have a financial plan in place.

However, if it is draining your pockets, then you need to wake up and change before it is too late.

Stop placing so much importance on demonstrating socio-economic superiority.

Rather, focus on owning a strong financial foundation that can sufficiently meet your life’s goals.

Delay instant urges to gratify your self-image until you are sure your net worth says you can afford it.

If you do indeed have a self-worth issue, fulfil the void with family and meaningful relationships, a heightened appreciation for self, charitable works or even spirituality for some.

There is nothing wrong looking ‘less rich’ than others as long as you know that happiness is sourced internally and not externally.

After all, money does not buy you happiness but managing it well can get you there.

I urge you to ask your self this question now: “Which is more important: your self-worth or your net worth?”

Less Knowledge More Money

6 Principles of Life on MONEY

 1.   No point using limited life to chase after unlimited money.

 2.   No point earning so much money you cannot live to spend it.

 3.   Money is not yours until you spend it.

 4.   When you are young, you use your health to chase your wealth; when you are  old, you use your wealth to buy back your health. The difference is that it is too late.

 5.   How happy a man is, is not how much he has but how little he needs.

 6.   No point working so hard to provide for the people you have no time to spend with.

Not everyone can manage HUGE MONEY!

Monday August 9, 2010, The Star

Man torches self after ‘burning’ lottery win

A VEGETABLE farmer who lived a life of luxury after winning almost RM1mil in a lottery five years ago torched himself when his “pot of gold” became empty.The 63-year-old from Serian, Sarawak, known only as Khoo, was reported to have dug a “grave” at the back of his house before splashing petrol on his body and lighting it, reported Berita Minggu.

The man had won more than RM750,000 five years ago and then reportedly spent up to RM1,800 on a single bet over the years, hoping to strike it big again, the weekly said. Serian OCPD Deputy Supt Jamali Umi said the police have classified the case as sudden death.

He said the victim’s nephew had found the man dead in the hole. A relative, who declined to be named, said Khoo, who never married, had stopped cultivating his farm upon winning the lottery and had spent the money on a new house and several vacations. But with no new winnings, the barrel soon became empty.

----------------------------------------------------------------------------------------------

What will you do when you had won RM 750,000 lottery? From the news you have read above, human greediness for money has taken the life of this old man. It is meaningless when someone lost his life for the love of money. When you are born into this world, you came empty-handed. Likewise, when you leave this world, you also go empty-handed and furthermore, you will have to face God's judgement for what you have done in the world.

Money is just a human creation tool to survive in this world. Do not get me wrong! Money is not an evil but the love for money is the root of all evil. If you love money more than God, evil will come and destroy your life. At the end, you have to answer to God. God is a faithful provider and He will bless you abundantly if you are obedient in His eyes. God will also make some of you rich according to His purpose. But not everyone will become rich because not everyone can handle and manage huge money well. Let me describe money as a very sharp sword. If you cannot handle the sword efficiently, the sword might one day hurt and harm you terribly, just like what happened to this old man. Being rich is meaningless if you do not know how to use your wealth to bless others.

"Money will buy you a bed but not sleeps, books but not brains, food but not appetite, medicine but not health, luxury but not culture, amusement but not happiness, a crucifix but not a Saviour!"

Love for $$$ = Root of all evil

Be obedient to God = Abundant Blessing

You cannot serve two masters!

You have to choose either one!

The more you give, the more blessing you gain...

Billionaires Bill Gates and Warren Buffett want other American billionaires to give at least half their wealth to charity.Gates and Buffett are calling their campaign The Giving Pledge. Buffett, chairman and CEO of Berkshire Hathaway Inc., said in a letter introducing the concept that he couldn't be happier with his decision in 2006 to give 99 percent of his roughly $46 billion fortune to charity.

Billionaires pledge $125 billion to Bill Gates charity drive

 
Forty American billionaires have pledged at least half of their wealth to charitable causes - a combined value of at least $125 billion.The offerings came at the request of some of the country's best-known billionaires, Bill and Melinda Gates and Warren Buffett. The trio worth a combined $100 billion convinced 40 families and individuals on the Forbes 400 list of richest Americans to sign onto their Giving Pledge campaign.

Included on the list of donors, which was released Wednesday, are California hedge fund investor Thomas Steyer and his wife, Kat Taylor, who were worth around $1.2 billion in 2008.Mr. and Mrs. Gates and Mr. Buffett, first and second respectively on the Forbes 400 list, reached out to between 70 and 80 of the Forbes list’s members and around half agreed to pledge. The 40 families and individuals who have joined the Giving Pledge are worth a combined $251 billion, according to recent figures from Forbes.

According to the Merrill-Capgemini 2010 World Wealth Report, North America's wealthiest donate about $200 billion annually. That figure comes from charitable contributions from people making $1 million or more.“In the case of money, you can’t spend it [all] if you have over a certain amount," said New York City Mayor Michael Bloomberg, who is also on the list, and is worth about $18 billion. “I’ve always thought the best thing to do is to make the world better for your kids and your grandkids rather than just give them some money.”
-----------------------------------------------------------------------------------------------

I really salute these two world's richest man and world's best philanthropist for their care about charity work. They almost donated all of their wealth to charity instead giving it to their children. Their philosophy is give enough to children so that they are able to work themselves with the available resources. 

How about us whose are not rich like them? Can we also donate something to charity? Yes, we can! We are not rich like them but we also possess talents and gifted skills. We can do charity in the form of rendering our service, time, energy and talent to the needy community. What ever good work you done, it counts in God's mind. The more you give to others, the more blessing will pour upon you. One of the way to gain financial prosperity is to give first.

Be a lousy client to your BANK.......Part 2

Next time when you are working, surely you will subscribe a few credit cards from your respective banks. The credit card salesman equipped with giving free gift marketing strategy will approach you personally in persuading you to have one card. Eventually, when you go for shopping, you swipe the card and you feel excited cause you feel that you don't need to pay with cash. You can buy all things you wanted with credit cards. You are only required to settle  a minimum payment in your credit card bill. Later on, you found out that you are in big trouble to settle the credit card bill. Now, you become a loyal and good customer to your bank. No wonder why so many youngsters nowadays go broke..... (read here)

The bank loves you very much with your heavy debt that incurred from your aggressive spending. The bank earns money from charging you a minimum interest of 13.5%, late payments, annual fees and you also need to pay for goverment credit card tax. Then the other bank as well will offer you balance transfer, credit card loan and advanced cash facilities. These all tactics are used to earn money from you legally. If you don't know how to make good use of credit card, in reality you are getting poorer. For me, I use credit card for convenience purpose. How about you?

Do you know you are not a good customer if you pay debts on time?

From The Star newspaper dated on July 26

I AM quite sure the bank that issues me my credit cards (just two) does not consider me a good customer. I spend way below my credit limit and, save for a few occasions, pay my bill in full and on time. A friend who works in the industry once told me: “To be honest, you are not the kind of customer we want. A good customer is one who spends more, defaults now and then, and allows us to charge interest on his outstanding balance.” Card issuers have long found their bread and butter in penalty fees and high interest rates paid by consumers who carry a balance. Now, frugal-minded consumers are charging less on their credit cards, paying down their balances and steering clear of penalty fees – steps that are financially responsible but have the industry scrambling to find new ways to make money.”

Did your school teach you about financial planning.....? Where got this subject? Part 1

Read the below news from The Star dated on 19 July

Debt-ridden young adults seek professional help on money management

PETALING JAYA: They are young and affluent but poor in managing their finances.By the time they’re 30,they are so debt-ridden they have to seek professional help to get out of bankruptcy.Credit Counselling and Debt Management Agency (AKPK) corporate affairs and communication head Devinder Singh said 15% of the more than 39,600 people enrolled in its debt management programme are below the age of 30.

He said many young adults risk being declared bankrupt because of credit card overspending and failing to observe basic rules in sound financial management.

He added that people would not be drowning in debt if their total loans did not exceed 40% of their gross monthly earnings.“People must learn to draw up a budget and live within their means.“If they can reduce expenditure by 5% a week, they can save 20% by the end of the month,” he said, adding that such practices would help build a strong financial foundation.Devinder was responding to a Bank Negara report that 50% of credit card holders who had been declared bankrupt were those below 30.

Under the Bankruptcy Act 1967, bankruptcy action could be initiated against those owing as low as RM30,000.Devinder said people tend to default on payments due to poor financial planning and lack of control in credit card usage.“Those having problems settling their debts should seek early help before compound interest takes a toll on them,” he advised.

Voicing similar concern over the alarming increase of young adults being declared bankrupt, Fomca chief executive officer Datuk Paul Selvaraj agrees that most of them are in trouble because of mismanagement of credit cards.“Once declared bankrupt, life would be very tough because their names would be blacklisted in the Central Credit Reference Information System (CCRIS) database,” he said, adding that their applications for loans would be automatically rejected.Paul said many young adults were trapped in debt because they lived beyond their means.“When these youths are just starting out, they are highly impressionable and are easily influenced by friends’ lifestyles.“They generally do not manage expenses properly, thus allowing credit to accrue over time,” he said.

He also said brand-conscious youths rarely take affordability into account.“They do not feel the pinch when they swipe credit cards, but they will feel the pain at the end of the month,” he added.