So long as you spend less than you earn (i.e. saving) over a long long period of time and you invest the different, you will be doing better and better.
The KEY words are:- Saving and Invest.
People said, The Poor being poor usually because of poor decisions.
- Over-spending over a long period of time. It kills.
- Couple spend too much on wedding, via borrowing, tends to end the marriage sooner than other couple. If you don't believe, look around.
- if a person works hard and grows his income, he will have earn a lot more over his lifetime. So, not working hard enough can cost you millions of dollars.
- It is very common to be in debt but don't get used to it. Get Out Of Debt (G.O.O.D.) as soon as possible while you are young, by not making the #2 mistake above.
- time is your best friend when come to growing your wealth.
- to compensate shorter time frame with higher rate of return is simply unrealistic.
- Malaysian likes property, houses, condo etc.
- Buying too much at right time and right price, you will be rich beyond imagination (haha... a bit exaggerated)
- Buying too much at wrong time and wrong price may kill your cashflow and holding power.
- Not all assets can produce income, e.g. no tenant, unable to collect rental.
- Seriously? It happens. If your spouse get you into a loan and he/she may drag you into bankruptcy.
- Your spouse mismanage the finance. Marriage may be gone with your money.
- An emergency fund is your first line of defense against unexpected financial problems.
- "unexpected" events can be regular... car breakdown, washing machine breakdown etc
- "unexpected" event can be irregular but still happens like hospitalisation due to illness or major accident causing disability to generate income.
- Yup, some people don't believe insurance matters but "insurance" is the biggest emergency fund when you are in need. You can avoid #7 mistake with insurance.