How to get rich?

If you’ve ever wondered how the rich get so obscenely rich, it’s not because it’s in their blood or because they attend the best schools. The reason is much simpler than that. You see, while you work hard for your money, rich people make their money work hard for them; they have the power of Passive Income!.

There are three types of income - earned, portfolio and passive income. Most types of passive income are derived from real estate/property, while other types of passive income are derived from royalties from patents or license agreements.

An income stream falling into passive income category is one where money is received usually on a regular basis, without continuing effort. This does not mean no effort at all; most passive income streams require great effort to start with.

Some Examples:

• Automated web business.
• Interest Income paid from bank deposits.
• Rental income from real estate/property.
• Royalties from writing a book.
• Dividends from shares holding.
• Selling digital files like software / ebooks or scripts or offering a service that doesn't require the merchant's intervention. In these cases, PayPal IPN may be used to achieve this.
• Network marketing.

Have fun choosing your favorite way to financial success!

Loose those credit card debts!

Today it’s possible to transfer the higher-interest credit card balances onto a credit card with a lower interest rate. It is possible with balance transfer feature available on most credit card offered in the market.

Opening a new credit card may seem like the last smart thing to do when faced with mounting credit card debt. In one case, however, this may make sense and wind up saving you a lot of money as well. This special exception is a credit card balance transfer.

In an effort to lure consumers to their credit card, many companies offer free balance transfers from your old credit card. Once the money is safely owed to the new company, they will often provide a grace period where they charge far less on the transferred balance. Finding two, one, or even zero percent interest is possible. Often, this introductory rate lasts for around six months to a year after the balance transfer takes place.

For a savvy consumer, this can be an excellent method of reducing credit card debt. It leaves the person free to pay down the balance on a credit card without incurring interest charges. Using this strategy, a person could potentially open a new account that offers a balance transfer when the old one expires. Then transfer all of the balance to the new card to begin a new grace period of low or non-existent finance charges. If you plan to do a balance transfer, be sure to close your old account immediately; having more than two credit card accounts open may damage credit scores.

Making a balance transfer work for you is an excellent practice, but diligence is required. Sometimes there is fine print attached with hidden charges. Some banks may charge a transfer fee that can be a percentage of the balance transferred. Be sure that there is a cap on the amount, like fifty or seventy-five dollars, or else a balance transfer in the thousands may end up costing a couple hundred dollars. Also, be sure the bank doesn't charge a high annual fee, or joining fee. The credit card companies are already getting your business, so don't let them take the upper hand in a balance transfer.

Save now, Save later...

When should one start saving? Check out the follwoing examples to find out:

Scenario 1
Ali, 20 years old, saves $100 per month @ 5% p.a.

At 40 years old, Ali would have contributed $24,000, and earned an interest of $17,275

Total Savings = $24,000 + $17,275 = $41,275

Scenario 2
Billy, 30 years old, saves $200 per month @ 5% p.a.

At 40 years old, Billy would have also contributed $24,000, but only earned an interest of $7,186

Total Savings = $24,000 + $7,186 = $31,186


By delaying your saving plans, the same amount contributed would result in significantly lower returns!

To refinance or not....

Some of us must be contemplating on refinancing our housing loans to enjoy the lower interest rates offered by other banks. So it it true that all who refinance enjoy great savings? Read on...

Usually, banks would offer you package deals like legal subsidy, free fire insurance or free property valuation to lure prospective home owners to refinance with them. To check if you can benefit from the refinancing package offered, you need to make sure you have great savings on interest charged. You also need to make sure to take note any hidden costs:

Example, for an outstanding loan of $3ook, the legal subsidy will usually be 0.4% of loan capped at $2,000. Hence, the actual subsidy will only be $1,200. However, standard legal charges averages $2,000. In this case, you will need to fork out $800 cash from your own pocket before you can enjoy any savings.

Besides the tangibles, make sure you take note of the intangibles such as the time and inconvenience for the refinancing process. Sometimes, the process might take up to 3 months to complete!

Happy shopping for your best deals!

Travel Planning

Its the season to be jolly...... :)

Many of us must already have plans on where to tour during this holiday season. Some fo us would have signed up with some great tour packages with various renowned agencies...

... wait a minute, are you missing out something?

Are you protected against:

1. Personal Accidents?
2. Travel Inconveniences? Loss of Baggages?
3. Post Journey Medical Expenses?
4. Overseas Medical Emergencies?

And other holiday adversities?

A well-planned holiday would be fulfiling, but having a well-thought out travel insurance plan will make your holiday even more enjoyable.

Send your email enquiries to calgorix23@yahoo.com.sg for free quote today!

Good Debt Vs Bad Debt

I did a presentation during a public forum on "Good Debt Vs Bad Debt" two weeks ago. The objective of the forum is to help the public understand the debts better.

Millions of people struggle financially because the the power of debt leverage is used against them. Because of the consequences of abuse, many people fear this form of leverage.

There are three groups people in this world: The Poor, The Middle Class and The Wealthy.

Poor people would be those who are loaded down with bad debts, with no means to ever get out of their indebted situation.

Middle Class folks are those who denys any goodness in getting into debt, pays everything with cash and leading a life just over broke.

The Wealthy make use of debt as an instrument to create more wealth for themselves. So long they can afford to spend, the will pay on credit. Earn points to exchange for gifts, keeping the cash for emergency.

So if i were you, i would take up the renovation loan and keep my cash in some liquid investment (e.g. short-term fixed deposit) to earn interest and for emergencies.

Good luck!

Gorix, Self-taught Financial Guru