Hi Everyone, I am going to write the second part of this two part series.
This is the second part of the How do you save to be financially free, read the first part below.

Read the first part here

Before heading into the second part,
I got free 0.1 eth yesterday night from an APP. Will let you know what app that is tomorrow.
0.1 eth is around USD 12.50 and around MYR 47. It's something like an airdrop but with less effort.

The last time ,
I got free cash was because I had a blockchain wallet and I got into the waiting list and got around USD 33 worth of XLMs which I had to convert to Ether because I can't sell XLMs in Malaysia.

With the right mindset, you need to have be educated financially.

Reduce Interest Burden

Img src: google.com

We all have that desire. We see our friends with the latest smartphones, those Gucci bags, a new car and etc.

The thing is that, we have got to ask ourselves,

Why do we need to pay for something that in a few years time is going to be worth a lot less than the original price?
Recently, I inquired about the loan procedures for someone who was to purchase my car.

The most shocking thing was that, the bank told me that, cars that were more than 10 years old couldn't be loaned anymore. I initially wanted to sell the car for 20k. It was bought for around 48k and after adding up the interest from the bank, it added up to around 58k.

That means that, I am not able to sell at 20k anymore. Not many people have 20k cash on hand and even if they had, they won't consider buying a car which was already 11 years old. So there lies this problem, what about those who has bought really expensive cars?

Interest is something that borrowers pay when they buy something on credit. Imagine instead of buying with cash instead, NO INTEREST incurred. I think the best thing is to buy things that we can afford and to live within our own means. Those interest adds up.

Why not take those cash paid for Wants (Things we buy and are not really useful) and invest them instead?

It is important to first stick to the budget where possible. I sometimes myself go out of my own budget too at some points of time because I had some cash deficit maybe due to earning less on certain months. I do understand that , especially parents with kids, it isn't really easy to stick to the budget but as long as there is a budget, it is going to nevertheless be more beneficial than when we don't have it. Do start saving small amounts, once you see the cash pile up in your account. It can really motivate you to work harder to find ways to build up that jar of gold. To me, it's like keeping enough bullets to last the war of retirement.

You may ask, but I don't earn enough to even save, what am I going to do?

Try saving in small amounts. Even if you could save 10 bucks a day, it's going to add up to 120 a year and you invest that, it may compound through time. Compounding is something really powerful. More on that next time. As a finance student, there is a common quote that is repeated in class all the time when I was still studying in university.

A dollar today is worth more than a dollar tomorrow.

I have to admit; nowadays, my friends sometimes compare my life to a monk.

I only buy one pair of shoes once a year now or two.
I only buy six new shirts when I see clearance every year and some years, I don't buy new clothes.
I wait for two months just to get my tooth repaired for a buck.
I eat at home mostly and only drank Starbucks once a year or twice.
I only went to the cinema once last year and that was when I renewed my member card.

Despite doing this, my friends don't see it that way. They think I am really wealthy UNTIL I tell them the truth. I have many wealthy friends who sometimes sponsor me stuff. It's really important to treat everyone well. Who knows what happens. The person who got rich because of us, will never ever forget about us and what we did for them.

This is just some of the things I do. It's not because I can't afford it, but I have calculated the number of years before arthritis, Alzheimer or even osteoporosis hits me. I am earning more money as compared to before, feel free nowadays, I don't need to report to any one if I need to get a sick leave and I am slowly building up an ATM machine. It won't be this ATM machine that prints a lot but hopefully enough for me to still be able to survive till one day I am no longer here.

I do drive a decent car. I have zero credit card debt. I only usually use the money I earn to buy groceries, pay my bills and food.

I am not frugal but whenever I try to spend on unnecessary things, I think of how much money I could make from investment. Even if next time, I do make a 100 k a month, I think my expenses would probable be around a 1000 a month or maximum 2000. My dad used to earn lots of money when I was young and one day the Asian Financial Crisis hit in 1997 and it awaken my inner mindset. I was brought up in the oil rich kingdom of Brunei Darussalam. Brunei is one of the only countries in the world that has zero debt.

There are more to write. Will write more about soon. Have a great night everyone. Hope something here helps.

Do follow me @luueetang