11 Characteristics Of Debt-Free People

Whether you’ve resolved to get debt-free in 2019 or you have a long way to go, it’s good to be inspired. Look at people you know who are already living debt-free lives. Whether it’s a friend, family member or co-worker, the person you are thinking of probably shares similar qualities with other debt-free people.

Here are 11 common characteristics you can copy to live within your means.

1. They Pay Attention to Details

You won’t notice that recurring fee on your credit card for the gym you’ve stopped using if you’re not checking your statement regularly. People without debt monitor their personal finances closely. They are less likely to waste money by forgetting about payment due dates or overdraft fees. You can start paying more attention also. The key is just to start. Try looking at your credit card statements every month. Next monitor all of your spending. Now add up your income. Compare the two and see where you could cut back. Re-visit this budget a few times a year to stay on track.

2. They Know Their Stuff

Debt-free people do their own research. They might have an accountant, but they don’t send over paperwork or sign their taxes without looking them over. If you want control over your finances, you need to learn about them. It may feel overwhelming but the sense of security you will feel in understanding what’s happening with your money will outweigh the discomfort.

3. They Pretend They Make Less

Even if you are already deep in debt, you can start to improve your situation by immediately changing the way you look at your money. Imagine you make 10%, 25% or even 50% less than you do. Make a budget using that math. It may be impossible at first, but start making cuts to your spending. Debt-free people live on less than they make. This allows them to put money aside for buying a house, retirement and an emergency fund. This provides financial independence that allows you more options in the future.

4. They Think Long Term

When the focus isn’t on immediate gratification, you can make smarter decisions. Sure, it would be nice to have this season’s hottest shoes, but how will they help your long-term financial goals? This doesn’t mean you can’t ever buy shoes! It just means you have to save up before you buy them. This also gives you the time to consider if you really even like the shoes and avoid impulse purchases.

5. They Aren’t Afraid to Ask

Ask for help. Ask for lower interest rates. Ask for forgiveness when they make one late payment. Debt-free people take control of their finances and they aren’t meek about it. If you know someone who has met a financial milestone you admire (saved $1 million for retirement, bought a car in cash, etc.), don’t be afraid to ask how they did it.

6. They Save

Whether you got a significant bonus or a $100 ‘angpow’ from Grandma, you should think first of paying yourself. This is true of your regular paycheck as well. You know you have to pay the rent (or mortgage), so treat your savings account the same way. Make it a habit. And better yet, make it a mindless habit by setting up an automatic deposit. Debt-free people know adding even small amounts now will give you more financial freedom later.

7. They Set Goals

You’ll find it easier to put aside money if you have a strong sense of what it’s going toward, it’s not about 3-5 years, it can go up to 20 years! This works for when you are saving up for house ownership, vacation, thinking about retirement. Debt-free people set specific goals so they know what they are striving for. This helps you stay on track. Retirement can be a hard one for young people. It seems so far away! Think about what sounds appealing about retirement. If it’s travel, imagine the places you will visit. Now the goal seems more specific.

8. They Say No

You may get lots of tempting offers throughout the week for lunch with co-workers or dinner with friends. Don’t be afraid to say no. Debt-free people know that saying no to smaller expenses can add up to big savings. This doesn’t mean you can’t have any fun. Host a potluck dinner instead of trying out the new, expensive restaurant. Meet up with friends in the park for a walk instead of taking an expensive exercise class.

9. They Know the Value of Cash

Debt-free people know the value of a dollar… because they see it! It can be easy to overspend when you are never seeing actual money. Having to part with some cash can remind you of the transaction you are making is real. Plus, once that cash is gone, it’s gone. Try only using cash for a while and see how it changes your perception of purchasing.

10. They Value Experiences Over Stuff

Debt-free people aren’t focused on things. They value experiences more than having the latest things. The average person will list family and friends high on what they value. But are your choices reflecting that? If you are working extra hours to pay for a fancy meal with the family, think about the tradeoffs. Would you be better off not working late and having two (or five or six) meals at home with the family? To become debt-free, you are going to have to shed some of your current bad habits and take on some new, more constructive ones. Use the people who already living debt-free as inspiration.

11. They know it’s for long term

One should know the time frame to harvest chili which usually takes 4 months, banana usually takes 1 year, D24 or Musang King will usually take 7-10 years to harvest. And even plant timber for 40 years for their generations to reap.

11 Retirement Threat

FMC are willing to hear your aspirations outside and ready to extend our expertise in consulting, training, guidance and professional services, contact our team at admin@faisalmalikco.com

Tindakan SME untuk terus relevan ketika krisis Covid-19

Menurut kajian INCIEF, 71.4% SME tidak dapat mempertahankan simpanan mereka lebih dari satu bulan. Beberapa industri mengalami kesan yang teruk, seperti industri penerbangan, perjalanan, baik masuk maupun keluar, hotel & penginapan, minyak & gas, pasar saham, automotif, dan perkhidmatan yang berkaitan dengan sektor ini. Enjin perniagaan ini hampir terhenti.

Dalam pada masa yang sama, industri tertentu seperti perniagaan makanan, barangan isi rumah & runcit, perniagaan dalam talian, penghantaran, hiburan, wi-fi, pengangkutan kargo, dan tentu saja bekalan perubatan dan perniagaan kesihatan mengalami permintaan yang luar biasa tinggi.

Namun, kesan pertumbuhan kumulatif bersih masih lagi negatif, dan beberapa pakar meramalkan pertumbuhan negatif yang suram menyebabkan kemungkinan kemelesetan. Dalam keadaan begini, ia memerlukan generasi pemimpin yang mempunyai kotak pemikiran yang jatidiri yang kental di kesemua peringkat. Pemimpin yang mampu mengendalikan perniagaan mereka dan memajukan agenda pertumbuhan organisasi mereka.

Apa yang perlu dilakukan oleh pemacu SME

1- ALIRAN TUNAI

Segera lakukan analisa ketahanan aliran tunai dan mengubah bajet syarikat dengan mengambil kira belbagai situasi dan pilihan yang ada. Samada pengiraan dengan kadar rezab perniagaan yang sedia ada ataupun dengan rezab kewangan tambahan yang baru dari institusi kewangan, suntikal modal awam dari pemodal individu atau dari pelbagai model struktur model perniagaan. Unjuran ketahanan ini perlu dibuat sekurangnya untuk jangka masa 12 bulan akan datang. Keputusan sukar semestinya dijangka dalam keadaan sebegini dan pimpinan perlu membuat keputusan segera untuk mengelak dari pendarahan yang lebih parah. Beberapa inisiatif ditawarkan oleh pihak berwajib www.imsme.com.my

2- PELAN PERNIAGAAN

Penting dalam memacu perniagaan dengan melihat kembali pelan perniagaan dan pelbagai model yang dipraktikkan sebelum ini. ‘Business no longer as usual’, ini harus dilihat pada ketika ini dan keperluan dalam jangka pendek juga mempengaruhi gaya berbelanja dan selera rakyat. Ianya harus dilakukan dalam pelbagai aspek enjin (unit) perniagaan SME dari produk, pemasaran, sumber manusia hinggalah kepada kewangan. Sebahagian dari BMC ada dikongsikan disini Business Model Canvas

3- Analisa S.W.O.T

Kekuatan syarikat anda sebelum ini, berkemungkinan bertukar menjadi kelemahan atau tidak lagi relevan, aktiviti ini sangat diperlukan untuk menilai dimana kedudukan kita kini. Setiap hari ada sahaja pemain industri baru yang lebih dinamik dan pantas, yang perlu dilakukkan kita adalah mengenalpasti kembali dimana kekuatan kita untuk kita tonjolkan dan memperbaiki kelemahan yang ada samada dalam bidang automasi teknologi, struktur model perniagaan mahupun pembaharuan produk.

4- Mengatur kembali Objektif, Strategi, Taktikal, Alatan (Tools) dan Bertindak

Anda tidak membuat perkara yang baru disini, segalanya telah tersedia, apa yang perlu dilakukan adalah melawat kembali 3 perkara diatas, menganalisa, memasukkan data-data baru, kemampuan terkini serta dengan sumber yang tersedia. Maka proses seterusnya adalah mengatur langkah menyusun 4 elemen diatas: Objektif yang baru, Strategi yang sesuai, Taktikal masa dan sumber yang tersedia, Medium yang ingin digunakan, dan bentuk Tindakan yang ingin diambil

Kesimpulannya.
Kepemimpinan dalam masa krisis menuntut cara berfikir yang baru. Sekiranya anda terus melakukan apa yang anda buat, anda mungkin akan mendapat hasil yang sama. Covid-19 pasti memberikan makna dan pandangan baru dalam amalan perniagaan kepemimpinan. Yang penting pemimpin perlu berwaspada dan bersedia menyesuaikan diri dengan pesanan perniagaan baru selepas ini.

Ditulis oleh Mohamad Faisal, dan ianya merupakan pandangan peribadi beliau.

Mohamad Faisal C.A.(M), CIPFA, CPSA, ASEAN CPA, CFP, DPIN Berpengalaman luas dalam bidang kewangan, korporat dan pembangunan SME. Beliau merupakan mentor bisnes, akauntan bertauliah, perancang kewangan dan mentor perniagaan yang bertauliah. Beliau  mendapat pendedahan sebagai ‘Business Mentoring for Mentors’ dari Entrepreneurship Development Institute of India (EDII) dan ‘Entrepreneurship in Emerging Economies’ dari HarvardX Business School. Beliau juga dilantik sebagai ahli majlis kepada dua badan profesional negara, Pengerusi SMP Malaysia, Ahli Industri Perakaunan MPC, Penasihat industri kepada tiga universiti tempatan, dan juga merupakan pengasas FaisalMALIK & co [CA].

FMC sedia mendengar aspirasi syarikat diluar dan kami bersedia menyumbang dalam khidmat perundingan, latihan, bimbingan serta perkhidmatan profesional, hubungi kumpulan kami di admin@faisalmalikco.com

See your organization through the eyes of co-workers and stakeholders

See your organization through the eyes of co-workers and stakeholders

FMC Leadership Series
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Disney’s theme park close twice a year so all employees, called “cast members,” can bring their families to enjoy the parks as guests while management runs the rides, serves the concessions, and wears the costumes, demonstrating that everyone is on the same team.

Hyatt hotels Corp, has its executives visit properties multiple times a year, where they help check-in guests, carry their bags, and help local staff members with their jobs.

TS Tony Fernandes of Air Asia quoted that ‘most entrepreneurs think that they know everything, but you have to listen to all the others around you’. He is known as one who displays servant leadership that makes every corner of the staff feel comfortable.

Caliph Umar AL-Khattab (RA) ruled 1/3 of the world empire in 634-644. He went to the cottage and saw that the lady of the house was cooking something on the hearth, and the children were crying. Umar(RA) knocked at the gate and inquired why were the children crying. She said that they were crying because they were hungry. The lady said that in the kettle there was only water and stones. That was to while away the children that food was being cooked for them. She hoped that exhausted the children would go to sleep. He then goes and brings the aids by himself.

In your organization, Have top executives spend a few days in a year working on the front lines with customers directly with your products and services. They’ll have a new appreciation for that employees go through on the job and understand the people, process, problems, and solutions better.

During Cobit19 that sparks health, business, and economic crises;

Leaders need not be high!

Published By
Faisal Malik CA(M)
See your organization through the eyes of coworkers and stakeholders #entreprenuership #leadershipinaction #empathy #communication #changemaker #accountants #covid-19 #crisesmanagement #crisismanagement

FMC is willing to hear your aspirations outside and ready to extend our expertise in consulting, training, guidance and professional services, contact our team at admin@faisalmalikco.com. business mentor, mentor perniagaan, mentor bisnes