Easy Money?

I have been thinking of how to augment my income for the past few days. I realized that indeed there is no such as easy money.

If you want to earn more, you have to invest additional time and effort. For me, this is the equation of money: time x effort = money. But this equation doesn't apply for passive income such as bonds because there is no effort. What is essential for this kind of money generating opportunity is time. The longer the time you invest it, the higher the yield is.

Anyway, that can be discussed in a seperate post. Now, I have been focusing on how to earn extra income. There are many options but the question is how to begin.

I am working on my list of possible income streams which I will share to you soon (hopefully before New Year!).

New Year, New Financial Life

A New Year means a new life, a life that I decided to gear towards financial freedom.

Before the year ends, I’d like to dissect my wastrel attitude towards money. What are the unnecessary profligate activities I routinely do?

1. Food Delivery and Outside Dining. I think this is my major financial pitfall. I love to dine outside and food delivery becomes a regular habit especially on weekends. The average amount I spend is $30 for food delivery and $45 for outside dining. This doesn’t include tips and taxi fare.

My Resolution: Food delivery and outside dining will be unknown for 2009. I have to sacrifice these leisure activities for a year until I am able to pay such extra expenses.

2. Phone Cards. Though this is essential, my only resolution for this expense is to use my phone credit wisely.

3. Unnecessary Trips. This basically proper planning of activities to save taxi fares. As the public bus is launched already, I should start utilizing it also.

4. Foodie Stuff. Many times I bought food stuff that ended up in the garbage (shame on me, many people have nothing to eat and I am wasting food). I should buy only what is necessary. Also, as my company provides meals in the cafeteria, I should take advantage of it also. No need to cook at home on weekdays. Cravings should be minimized too. These are cravings of unhealthy food such as chocolates, ice creams, and cheese cakes.

5. Tithes. Though I am not a pious person, I believe in tithes, sharing a certain amount of your income. I am not keen on giving tithes to the church. I am more comfortable sharing it directly to the needy, to the one I knew that my tithes will be useful and utilized well. As my way of tithing, I am keeping a college scholar. He is now in fact a second year college and I wish to continue my financial support until he graduates.

This is so far my wastrel activities I can think of.

My next step is to look into my monthly bills properly. Where my salary goes every month? This is really quite a tough journey but I am determined to be disciplined in dealing with financial matters.

Enough that I had wasted a decade of income, it is time to wake!

Introduction

This blog 'Notes on How to Retire @ 40' was just conceived two minutes ago.

Lately I have been mulling about my life. Let's be realist and I have accepted that fact.. I'll not live long enough to enjoy the life at 60, an ideal age of retirement.

Why I have such dim outlook?

I know my lifestyle and if this will continue for another decade, I'll be lucky to reach the age of 60. I have been working for the past ten years of my life and it is working for survival.

I work 10 hours a day and six days a week to cover my basic needs. Though I have been blessed with a job and decent salary, my financial illiteracy and wastrel lifestyle led me to a spiraling debt.

I found my journey to financial literacy lately only after my brother gave me a book about personal financial security. Quite late as I have squandered already my 10 years income to nothing and now I am buried in debt.

I don't want to be in the same situation when I reach 40 which is 9 years and 8 months from now to be exact.

My goal, and I am determined to do that, is to have enough financial security at 40. I will be working at this age to keep myself busy and not to work for survival.

Though choked with debts, I am very optimistic that I have enough time to reach my goal. My tools to achieve my goal are knowledge and wise investments. And these are the things I want to note down and share with you in this blog. I hope that one way or another it will help you also in your journey to financial freedom.

To give a bird's eye view, I am currently paying two personal loans with a approximate sum of $18,500 and credit card bills of approximately $5,000.

The loans were taken recently so 65% of my monthly pay check goes for loan payments. The remaining amount of my salary will be shared out to my other bills such as credit cards, internet, and other expenses such as transportation, food, telephone, etc.
That is my current wrecked financial health but I know that it is not yet too late. I can still reach my goal - TO WORK AT 40 FOR LEISURE AND NOT FOR SURVIVAL.