Our beliefs determine our actions. Here are the philosophy that I take when it comes to personal finance. 

Personal Finance Is Action Bias

Not everyone likes a financial talk. But you know what’s worst? Listening, and not taking action.

There are no perfect latte factor or risk-return rates, like everything else in life; getting ahead in personal finance is the sum of all the positive steps you made.

The opportunity cost of waiting is often bigger than taking a small, less perfect action. Before you found the best investment solution, cut spending, collect reward points, saving bits of butter, open an investment account, try new financial products.

Keep the records 

Keeping records is essential for personal improvement and regulation compliance (tax relief)—your expenses and receipt for big purchases. Use manual input or a tracking app. I now recommend the app “Spending.” 

Also, build a system to save files or have a journal for investment plan and investment records. 

Continuous learning 

At the beginning (a decade ago), I was good for a 20-year-old kid. I understand compound interest, opened an investment account, analyze the down-side of the mutual trust fund.

And I stop learning while the financial market gets so fluid with a concept like negative interest rate, fintech, etc. 

This ignorance cost me the opportunity cost of RM6,000-7,000 in the year 2018 alone. The world of finance is evolving faster than our daily bread and butter. Continually learning is key to growth.

Life is beyond finance 

Some people pursue money like it’s a magic pill. I once thought I would live my life purpose if I get the money part sorted out. I try, I failed. Money is useful, more so when it’s from $0 to $10,000 but cannot solve non-money related problems. That’s why most wealthy people are as miserable inside, like everyone else. Life is beyond money. 

The bible says joy comes from God alone; the lowborn are but a breath, the highborn are but a lie. If weighed on a balance, they are nothing; together, they are only a breath. – Psalm 62:9