What happens when you do not have the mindset to be rich?

Recently in Dr Irfan’s blog, he asked his readers if they are ready to be rich? As we all know having a lot of money does not mean that you are rich because being rich is in the state of mind and how you control your finances.

So for example, if you have $10, how would you use that $10. The proper way of handling your finance depends on where you are and what age you are in. So for my age that $10, $5 need to be allocated to savings ( like it or not ). $1 for charity ( this money according to Abang Abu does not belong to you ). So you are left with $4.

And this $4 you need to squeeze all your bills, your makan, travelling expenses and so on. Do you think its possible? It sounds extreme right but it is possible. Especially in times when inflation is high, we do have the cut our expenses.

Then you ask when can I use the $5 savings. There’s another rule to that. Emergency, Life & Death situation or investment. When we say savings eh, I don’t mean putting it in a Deposit Account. You can put in the many investments schemes by the banks or the insurance companies to grow it. There is one particularly plan by HSBC where your interests ( riba ) is actually donated to the poor. I think its an awesome plan.

Perhaps that $5 can be used for much more..You can further break it down. $3 for fixed deposits. $1 for high risk investments and $1 for long term investments. You can switch those around if you like it. Well its up to you.

So if we do practise this method to bigger sums of money. Imagine how much you would have in your bank account with 2-3 years.

So when we do not have the right mindset to control our finances, a lot of us would be in deep trouble and being in debt all our lives. Same too when you have a lot of money, all that can be gone within days or weeks of useless spending or expenses.

So how are you spending your money or saving it? How much money do you allocate to yourself.? Let’s share..