I always like reading, but recently I have a new hobby whenever I’m in the bookstore. Previously, I only roaming around the magazine area. Now, I’m spending more time in the “self-help” area, especially financial books.
One of the brilliant books that I found is “Secrets of the Millionaire Mind” by T. Harv Eker. The book reveals the differences in how the middle income and millionaire think. As an employee who comes from a humble family, a section struck me:
Rich people focus on their net worth. Poor people focus on their working income.“Secrets of the Millionaire Mind” – T. Harv Eker
To sum it up, how much you earn is important, but your net worth is the most important thing. Rich people focus on building their net worth, which is based on four elements:
You and I may not be entrepreneurs, but I believe all of us can apply those four elements in our lives.
Some people only think about getting a higher salary (1) and save (2), but they’re afraid to start investing (3 -property, stocks, unit trust, bonds, etc). That’s why their net worth is low.
On top of that, some people are upgrading their lives whenever they get a pay raise. This is a contradiction of Simplification (4) because that will make their saving or investment stuck. What’s the point of earning more if you’re unable to save or invest more?
What’s Your Travel Worth?
As a wanderlust, is your travel worth bigger than your net worth?
I admit that I’m guilty – but not sorry. I don’t remember exactly how much I spent, but here’s the estimated cost:
Clara’s travel worth (up until May 2019)
- Turkey – RM8k
- Bali – RM3,5k
- Eastern Europe (Germany, Czech Republic, Hungary, Austria, Slovakia) – RM15k
- Morocco – RM12k
- Raja Ampat – RM5k
- Italy – RM12k
- Northern Europe (Netherlands, Denmark, Finland, Sweden, Estonia, Latvia, Lithuania, Germany & Russia) – RM18k
- Chiang Mai & Chiang Rai (Thailand) – RM5k (missed the flight)
- Cuba – RM17k
- Hoian, Da Nang, Ba Na Hills (Vietnam) – RM3,5k
- Toraja – RM5k
- Beijing (China) – RM4k
- Spain & Portugal – RM12k
- Sri Lanka – RM5,2k
TOTAL travel worth =RM125.2k
WOW! Imagine if that amount is my net worth!!!
Until this post is written, I never really count how much my travel worth is. Eh, no. It’s worth more than stated above because the experience that I gain is priceless 😉
It’s Always Better to Build Your Net Worth Early
For young wanderlusts, perhaps you’re thinking I could write this post because I’ve been to quite numbers of country. That I’ve traveled far and had enough and now trying to give my 2 cents.
The truth is, I never had enough for traveling. I always want more. Like prayer, traveling is a staple for my soul. However…
If only I set aside some money for investment earlier, I wouldn’t have traveled much but at least my personal finance will be balanced.
Budgeting for Conscious Travelers
I only started investing about two years ago. I wish that I started sooner so I won’t have to think harder on how to catch up building my net worth. Now my priority has shifted, I won’t let myself travel as often as before. #sad
If you never set a monthly budget yet, find out how much your net income is (after tax deduction). Then, set a budget for things that you need to pay and want to have. For example:
- Necessity (food, transportation, internet, etc)
- Gym membership
- New Investment
- Investment (top-up)
- Emergency fund
- Travel fund (a must, no matter how small the amount)
Of course, if you have a side or passive income it will be better! Keep on traveling but remember that your future self will thank you for providing a comfortable life.