The Millionaire Formula
Author: Dr Jeffrey Chiew with Tan Thiam Hock
Publisher: Estate Planners Sdn Bhd
DR Jeffrey Chiew was born in a slum, but managed to make his first million by the age 25. And now he is sharing his secret recipe on the path to riches via his book which he co-writes with financial expert Tan Thiam Hock.
As both writers are Malaysians, the context of the book would be relevant to locals. This, in no way, undermines the universality of the book’s main subject that focuses on the power of the mind to achieve your goal.
The simple language without overpowering financial jargon is also a plus point.
But the ultimate question that lingers around this type of wealth development tips and strategy book is – can the book make me rich?
Well, according to Chiew, if you want to be a millionaire, you better start thinking like one. Interestingly, in his first step, unlike many other wealth development books, Chiew focuses on one’s mindset, or in his own words, “mental programming”.
Next, you must value your own net worth that take into consideration your total asset and liabilities. This is to get a snapshot of your current financial situation, whether it is positive or negative.
He thinks it is important to get oneself organised. As simple as it may sound, the execution is not that easy but Chiew manages to streamline the process that I find quite useful.
The book includes a sample table that organises your income and spending.
The third step is rather important as it guides you to what you want in life and setting realistic goals in a specific time frame.
Fourth, it may sound cliche but in reality many people dream about being rich without any financial goals at all.
Once you have set your goal, the book guides you to plan how to achieve your success that involves changes in your everyday routine. One apparent useful tip is to keep a daily and monthly checklist that tracks your saving and spending as well as a reminder on your ultimate goal.
Fifth, the book also lists investment opportunities that include four mountains of wealth, namely business, property, financial market and the Internet.
The sixth step teaches you to save and manage your debt. Before you get too ambitious to save more than 10% of your salary, one has to manage and try to reduce his debt.
One way is through debt consolidation where it involves taking a loan with a low interest rate to pay off all your other debts with higher interest rates.
The last step is about how to make your money work for you. The writers explain the differences between savings and investments. Suitable for beginners who want to gain financial freedom. If Chiew can achieve it, so can you!
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