Issue 2
Big Picture
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AMJ 2017
Having money in our hands does not guarantee the lifestyle we
want throughout our life. How much money we earn or have to
start with, ultimately has very little significance to our financial
wellbeing. It is what we do with the money we have that makes
all the difference. Here are 3 unrelated concepts that in the big
picture, will play a guiding role in the way we look at money and
money management.
Why is it difficult for some to save? Why do so many bright
youngsters fall deep in credit card debt? If a routine of behaviour is
repeated over and over, it tends to occur subconsciously and
becomes a habit. When it comes to money, habits can really make
or break an individual. It is often said that one ‘develops’ good
habits and ‘falls into’ bad habits. But old habits are hard to break
and it is only possible through repetition of behaviour. It is a
process and can be encouraged or discouraged at the earliest sign
of certain behaviour. Studies show, parents have the biggest
influence on children’s (even teenagers’) money habits. Parents can
influence good habits and discourage bad habits during the
process of Habit Formation.
Would it not be wonderful if we have a choice over what we want to do or
not do and still not need to worry about money? Without being on the
treadmill of work-earn-spend, from where it is hard to get off, it is possible
to enjoy the freedom to do and be what one wants or is, through wise
money habits and by making money work for you. Such a state where a
person does not need to work for money is the ultimate goal of financial
planning. It is known as Financial Freedom
The city state of Singapore is a classic case of prosperity through smart
management of resources; a proof to the biggest money lesson - it does not
matter how much or less you start with, but what you do with what you have.
Given its limited land, limited natural resources to call its own, and dependence
on other countries for the basic needs - food, water, few gave tiny Singapore
much chance of survival. Within 50 years of independence, it is today a thriving
economy with world’s best airport, top airline and busiest port of trade. From
third world to first world is a Singapore story of, borrowing from Project
Management lexicon, Resource Optimisation .
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