From $0 To $ 20 Thousands

Ladies and Gents,
Today I’m so excited to be featuring a guest post from the awesome Anh Do.
He completed his Bachelor of Engineer from the University of Sydney, was selected out of 5000 applicants for Westpac graduate program to work as an IT in 2009.

…Now he works in the Financial sector of Westpac (Talking about constantly changing your mind…)

Let’s see what he has to share:

#Drum rolls#

#Enter Anh Do #( No, he is not Anh Do the comedian in case you are wondering)

Since I’ve been mentioned in a few of Tram’s blogs(here and here ) and being a big fan of her awesome site I decided to make a small contribution to this great collection (also because Tram has been very persistent in asking me to do this =) ).
My name is Anh; I work as a bank analyst on my day job. Outside of that world, I love hanging out with friends (especially my awesome gf -)), games, soccer and food!

As many, I also know the importance of starting early to be able to do all the things we want to do in life.
Naturally, I started with investments in the stock markets last year and I’d like to share with you some of my experiences and lessons:

1. Be motivated, be inspired

Why we want to be inspired?
I think it is the key to great success. Being inspired can motivate us to take actions, to change ourselves for the better, to make a difference in our life and others’.
In my opinion, we are very lucky to have easy access to a great wealth of inspiring stories of many great men and women. We all can make good use of this infinite source of inspirations. I in particular was strongly inspired by the 2 following books:
Rich Dad Poor Dad( ebook ) and Rich Dad Poor Dad: What The Rich Teach Their Kids About Money ( paper back) by Robert Kiyosaki, my 1st book that really opened my eye, teaches me things I have never thought of before.

– The New Buffettologyby Mary Buffet & David Clark, my favorite book that taught me many important principles of investing.
It’s Tram here, I have read the first book and absolutely loved it. The second book I haven’t read but I have heard good review about, but too lazy to read =) => That’s why I gave it to Anh so that he can read and tell me the content. It works out pretty well so far =). And yes, the two links are affiliate links, which means if you decide to buy through Amazon, I will earn some commissions. Thank you so much if you decide to purchase through these links, I appreciate your awesomeness =) . Ok, Back to Anh)

I can certainly say they have made a difference in my life, for the better.
There are many other ways to become motivated; blogs like this are another example. Remember, have an open mind in whatever you do!

2. Money matters

Have you ever had difficulties bringing your business ideas to life because you didn’t quite have the money?
Have you ever let investment opportunities passing by only because you didn’t have the required capital?
I have (a few times in the last year!).

Yes, money does matter. I believe there are great life-long benefits in having control over your personal finance. To this point, I’d like to share with you a few things that I found to be useful:

  • Know you cash flows:it’s probably the most basics yet most important thing in finance. Knowing your income and expense can help you control your money effectively, save serious money and cut down wasteful spending. So, keep a close eye on those bank statements! I personally review my statements every 2-3 months, there are many good FREE templates on Internet that you can make use of.
  • Bank well:most of us would have some sort of banking relationship, use them well! Spending 20 mins reading on the banking products can help you save thousands of dollars! An example from my experience, credit cards are great if we use them correctly. How so? 30 days interest free on purchases is a beautiful thing – I usually make all my purchases with credit cards and pay back, right before the payments due at start of the month. By doing this, I get to earn interest on all my purchases for 30 days, not to mention other benefits such as insurances or reward points. We all could be hundreds of dollars better off every year as simple as that!

Another inherent benefit of knowing your finance is we can use this as an advantage. Should we need to borrow money for our business. People will be more willing to lend to someone who knows their finance, who can manage money! In dealing with money, little bit of research and attention goes a long way. Personal finance blogs and websites are great places to look at.

3. Look back and learn

If I have to state just one advantage of starting early, it would be time. We have time on our side, so look back, reflect and learn! By doing so, we can make failures become success and success become inspirations!

In my case, I started investing last July with 2500 $, now I am sitting at a little more than 20,000$. Before you get too impressed, I should mention that I put in another 16,000 $ or so over the year. The return is only several hundred, hardly great performance by market standard. However, I am very proud to tell you this because I am sure I got one thing right and that is growing my asset. I remember having a target of 15,000$ by year end, seems like I am on my way smashing this =). Needless to say, there are also some big fails that taught me many good lessons over the year too. I am motivated to do even better next year! -)

In my opinion, it doesn’t matter what we do, it even doesn’t matter if we didn’t succeed. The important thing is we actually did something and learn from it, that’s the only way we can make a difference. Doing nothing will result in nothing, so do something and have fun while doing it. Be sure to look back and learn, and celebrate your success!
Those were a few experiences that I‘d like to share with you, hope they are useful to someone. Whatever you do, do your research, put your heart in them and be sure to learn from the experiences!

Enjoy 🙂