Smart Money

The Three Financial Phases in Life

Finance is a very important aspect of life.  We shall know more and pay more attention to it. However when I was young, I knew nothing about finance and made a lot of mistakes.

First, we all go through the needs phase of our life, living pay check to pay check, and struggling to make ends meet.

Next is the sufficiency phase, where our needs are met. We are some what feeling satisfaction. We are in our comfort zone, and not really want to get out taking the risk.

Last is the abundance phase, do what you like, and take the challenges. To get there, we need to know and understand the basic financial concepts.

The Two Roosters Lesson

I grew up in the countryside in the ’50 and ’60 and oftenly saw cockfighting, not in the ring, but in the  forest.  

One day, my father pulled me aside and asked: “Do you know why the two roosters jumping at each other and fighting until death?”

I shook my head.

My father said: “Because the crowing of a rooster is an announcement to others in the area that it is here, and this is its territory. The crowing back and forth makes them rivals”  Then he whisperred to my ears: “Roosters die because of their crowing”.

In life, if we race against others for bigger house, newer car, brand name clothes, etc… then we are in the rat race to the end.

Roosters die because of their crowing.

Suggestions:  Balance your check book,cross out unneccessary spendings, put the money into saving.  Do it every week.