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Inspiring Rags to Riches Stories

New rich, or Nouveau Riche in French, refers to people who ‘made it’ from nothing to something in term of financial authority.

Stories about noveau riche are always be rags to riches stories. This wiki about Nouveau Riche explains that rags to riches stories are always be inspiring to us.

Rags to riches stories are motivational, mindset changing and focus on the end line, rather than the journey.

Example of rags to riches stories

Arguably, Bill Gates is the Nouveau Riche most prominent example.

Although his relatives are one of the most successful figures in their business and profession, Bill’s journey is not as smooth as you might have thought. A Harvard drop out, Bill with friend Paul Allen founded Microsoft, the software behemoth. Today, Bill is the richest man in US and number 3 in the world.

Bill Gates story might not interest other as he seems not ‘that rag’.

My favourite story of ‘the real’ noveau riche is that of Gurbaksh Chahal, a serial entrepreneur whose one of his businesses, BlueLithium, is acquired by Yahoo! for $300 million.

Gurbaksh is a school drop out at 16, and his parents, Indian immigrants, struggled financially for years. Today, Gurbaksh, 25 years old, has a net value of $100 million. Although not a billionaire (yet), his story is more ‘down to earth’ and might inspire people better than the Bill Gates story.

Why rags to riches stories are inspiring?

Rags to riche stories are inspiring due to:

  • Role models – they can make it, and so do you.
  • Success stories motivate people to follow the noveau riche footsteps and follow the dos and don’ts during the rags to riches journey.
  • Affirmation – positive stories create positive mindset and they are definitely suggestive. This will lead to people who are into the success stories to actually be better in their financial mindset and performance.

How to go from rags to riches?

Noveau riche main ability is to garner opportunities when they are unearthed. Consider this opportunities as gold rush, and the noveau riche is the gold mining pioneer.

Basically, the right opportunities at the right time are always present – people call this luck, I call this window of opportunity.

The most prominent way to go from rags to riches is through entrepreneurship – although professionals can achieve great success and go from rags to riches, the authorities of noveau riche are all entrepreneurs.

Business opportunities, such as this Nouveau Riche opportunities, are more likely to born new riches than not.

My favourite business opportunity is being a social entrepreneurs in South Africa – great opportunities for great minded entrepreneurs that eager to help local community to have better welfare by opening prospect business with the help of social investors.

It’s all about mindset and mentality

In going rags tor iches, resilience and perseverance is needed. 95% of people fail because they lack resilience and perseverance.

Noveau riche is all about money and minds.

Use the Plastic to Repair Your Credit Rating

People are always looking for the shortest path to solve their personal finance problems.

Often, taking the shortest path might not be your best way to improve your situation. Even in most cases, people recklessly apply for cash advances or use credit card financing without knowing the consequences of their decision.

When it comes to personal financial management, your mindset and knowledge play important roles.

Repair your credit rating, get out of debt

Poor or below average credit rating are commonly due to the following reasons: bankruptcy, poor spending habit, late payment, and pressing personal issue.

  • Bankruptcy – Both business and personal bankruptcy leave you unable to pay your debt.
  • Poor spending habit – this is the main culprit of personal bankruptcy – spending more than you can afford and often followed with late payments.
  • Late payment – Either forgetting or not having the resouce, late payments will always damage your credit reputation.
  • Pressing personal issue – An immediately needed large chunk of money is also the common cause of bad credit rating.

Plastic favours

Even loans with the highest APR can do your personal finance a favour, if you know how to play the money and mind game of getting out of debt.

If your credit rating is relatively poor, one of the effective ways to build your credit rating is by applying for a secured credit card.

A bank card is secured if you have deposited a sum of money onto a bank account to secure the credit. Typically, the credit card limit given is 50 to 100 per cent of the amount of money you deposited into the account.

Pay your bills on time, and build your credit reputation. Just make sure your chose issuer has the Credit Burreau informed about your application.

Escape yourself from getting scammed

As secured credit cards application are having lower qualifying criteria than unsecured credit cards, making it a choice for both applicants and, unfortunately, scammers.

Avoid secured credit card ads that have misleading offer, such as: “Call us to get approved instantly”, “Bad credit rep, no problem – Fast and easy approval”, and many more.

This is the reality: No one can guarantee to get you credit. Those calls you made, especially to 900 calls (you are charged a premium just for calling), are aimed to get the information from you, and maybe redirect your call or send your information to others.

Please be careful about the appealing, and often too good to be true, offers for secured credit card. Getting out is more difficult that getting in.

Consult a credit consultant or respectable credit card issuer about secrued credit cards and how it can be used to repair your credit rating.

Does Short Term Financial Fix Can Really Solve Financial Problems?

Most people would do anything to solve financial problems, as financial problems almost always come along with relationship problems.

As money is still a taboo topic today, financial problems are getting worse by not having a constructive and honest conversation about money.

An article by Psychology Today explained that although money is an emotionally loaded topic, it is still taboo topic to talk in family conversation. The result, as financial problems strike, is that most family ‘blindly’ take any financial help on sight, often in the form of unsecured loans.

Personal loans, mostly short term, are often viewed as a solution by family facing financial hardships. Come in the form of payday loans and cash advances, personal loans offer short term remedies for those financial problems.

This is where the problem lies.

Personal loans themselves are actually useful and purposed to help people. However, taking loans without proper money knowledge will eventually make the financial hardship even worse. This, in turn, creates a general opinion that personal short-term loans are negative and should be avoided whenever possible.

I viewed the negative reputation of personal short term loans is a misled perception. The high APR is often considered as the main culprit of many financial hardships, thus receiving negative reputation. The facts often prove the otherwise. The limited knowledge and wrong mindset of the borrowers are the actual culprit.

Personal loans as short term financial fix

Most personal loans are installment loans – a certain amount of loan should be paid back at the definite due date until all the total amount are paid off. This, in itself, is actually helping borrowers to cut the headaches and avoid late payment penalties. Some personal short term loan providers are even allowing you to pay off loan whenever you can, thus limiting the amount of interest paid.

Although short term loans are notably higher in APR than traditional loans, the fast approval and low credit score-friendliness are strong appeals for people and family with immediate need of cash.

Short term loan CAN solve financial problems

Short term loans, with the right attitude and knowledge, can solve financial problems, as well as relationship problems.

I suggest you to learn about the good debt and bad debt. Good debts put money in your pocket, while bad debts take money from it. In other words, use your personal short term loans not as your source for personal shopping and debt clearing, but for cash management enhancing purposes, such as securing profitable side business deals.

As long as you understand the concept of good debt and bad debt, short term loans offer options for your personal finance management endeavour.

Payday Loan for People with Low Credit Score: Hope or Nightmare?

There always be a pro-contra on payday loan. The largest pro-contra on payday loan is due to the premise that payday loan is purposed to help people getting small amount of cash, usually $100 to $500, quick.

Typically, the ones who need payday loans are those that need cash quick and low credit score.

What is a payday loan or payday cash advance? Payday loan is a form of cash advance , where borrower receive a short-term loan, which amount is usually between $100 to $500, and payable within under 1 month period, until payday.

The psychology of payday loan

Most people always have a certain needs that are related to money, such as covering daily expense. This fact, along with the fact that most payday loan taker is low income person, have made payday loan a viable option.

The psychology is simple – a pressing need requires an immediate gratification. This is where payday loan comes into play.

Unfortunately, many slump into bad debts simply because they don’t understand about payday loan, or they don’t have the right reason to take payday loan.

The pros of payday loan

Most payday loan providers offer fast approvals and open for low credit score applicant.

Online payday loan provider, such as Payday One – a US-based and state licensed payday loans provider – offer 24/7 access to payday information and application.

The cons of payday loan

The high interest rate is the main drawback of payday loan. The interest rate is approximately 400% APR, which means a $100 loan should be repaid $115 within 2 weeks.

Moreover, if you are not careful in managing your payday loans, you can easily get trapped in a vicious cycle of borrowing money to cover other loans. This is what often happens, and give payday loans negative reputation.

Payday loan: a hope or a nightmare?

The pitfall is not on the payday loan – the concept of payday loan itself is plausible and actually purposed to help people with financial difficulties.

It is the borrower financial knowledge and mindset that determine whether payday loan is a hope or a nightmare. No matter your credit scores – it is your vision of what to be made of payday loans that will actually allow you the make payday loans as a financial leverage.

Credit Card Minds

Many people think credit cards as the temporary solution for their long term financial problems. What I mean by financial problems is not financial hardship, but financial knowledge.

Credit cards main selling points are convenience, cashless and rewards. People sign for credit cards for those perks.

While credit card offers today is interesting – some offered 0% APR on Purchases, even 0% on everything – many people will eventually build up their credit card debts.

The question – why with all of the free and 0% offers some people still in deep credit card debts, that take years to clear and have to pay hefty amount of outstanding plus interest?

The answer – it is ‘humane’ that people always want more. Along with bad personal financial management, bad spending habit and wrong money mindset, here are why people stumble on credit card debts.

  • You make more money, you spend more money
    People always want to get rich. However, people forget that being rich doesn’t mean you have a lot of money. For some, being rich is status – no matter how much debt they have. Some of status symbol is credit cards. Having a strong financial knowledge will help you to make more and spend not too much.
  • You spend what you see and always want what you don’t see
    “If you have $100 in your wallet, how long will it last?” Most people will answer, “Right away!” Not many people have the strong will to spend carefully of their cash. Most of us need the cash to be ‘secured’ from ourselves to investment instruments, such as deposits or mutual funds. Credit cards alleviate this problems.
  • Convenience often makes you go loose
    Fast food is convenient – you can eat as you go. This, not considering the content of the fast food itself, will cause people to eat more, simply because of the convenience. This also applies to credit cards. Convenience in credit cards will likely cause you to spend more than you should.

I don’t recommend you not to have credit cards. Credit cards are actually very useful in our daily lives. However, I strongly recommend you not to have credit card outstanding debts.

Having a credit card today does offer you perks, such as:

  • 0% is always a good deal
    0% APR on Purchases, 0% APR balance transfer, free annual fee, and even 0% everything – the competing credit card issuers mean benefit for us consumers.
  • Convenient
    Convenience is credit cards main selling point – credit cards is easy to carry and secure – if anything goes wrong, call your issuers to block the cards.
  • Reward is, well, rewarding
    Frequent fliers, hotel deals, dining deals, cash backs, and other rewards are lavishing frequent shoppers.
  • Saving with credit cards
    You can save a lot of money if you know which credit card issuers offering what – Go to credit card comparison websites to learn more which issuers are the right ones for you.

I strongly recommend you to have the right mindset before applying for any credit cards, to get all the benefits of credit cards, such as savings, and avoid all the problems that most people with credit cards have, such as outstanding debts.

Comparing Plans for Your Personal Finance Endeavour

Your personal finance always require budgeting and planning – you always want to know and prepare for your savings account, rainy day account and investment account, as well as your credit cards, insurances, mortgages and other expenses.

Now let us focus on three of the most common expenses – credit cards, insurances and mortgages.

What does credit cards, insurances and mortgages need have in common in your mind? Yes – you want to know which plans are giving the best value for you.

To know which plans are the best for you, you need to compare them – comparing plans is a necessity and often providing a sense of security having several plans on the table for you to choose.

Money plans comparison website

The best place to look for credit card, insurance and mortgage plans is finance and money related websites. is one of the financial authorities I often visit to compare plans, as well as to search for financial updates and news.

You can fulfill you need to compare mortgages, insurance quotes and credit card quotes.

The comparison itself is self-explanatory. For example, I like to compare car insurances. I found a comparison of three car insurances recommended by, along with the details, such as no claims discount and charge to pay monthly. You can always to to the insurance website directly to learn more beyond what is recommended by

To highlight – the websites also offer you five RSS feed that you can subscribe to. My favourite is personal finance news and tips, delivered to my Google Reader. Another feature that I recommend you to join is the newsletter subscription. The newsletter is a good way to stay informed on news and updates on money and money saving tips.

Comparison websites aid you plan your personal finance

Knowing which plans are the right ones for you give you an assurance of what to expect and to pursue in your personal finance planning.

If you are keen to plan your personal finance better, use not only financial comparison sites, but also shopping comparison sites and other similar sites.

I recommend you to seek authority websites only, to avoid bias and misleading information. It’s too often I found from the Internet, that the comparison site is biased, and allegedly recommend the plans that will make the site owner more money than the other plans. Although, in my opinion, this is unethical, there are actually hundreds, if not thousands, of sites offering biased comparisons – avoid those sites!

Assure yourself and plan better now.

Money Market: For People that Always Looking for Something More

It is common that people always look on ways for their money to grow more in speed and value.

While expecting their money to grow in speed and value, people always consider and weigh between risk and yield. Naturally, higher risk yields higher result. On the contrary, lower risk yield lower result.

The battle of risk and yield always present in one’s mind, and often attributed to one’s personality traits – for example, in outdoor activity, do you like bungee jumping or strolling in the park? Your answer will be one of the indicators of your risk tolerance toward investing your money.

How much do people want more?

As people always look for something more, the quantity of ‘more’ in people’s mind is widely different, depending on the personality traits, investment outlook and personal finance budgeting and planning.

There are investment instruments that allow you to choose the investment type that best suited to your situation.

Investment in stocks, mutual funds, money market, certificate of deposits, etc. along with the macroeconomic trends will determine how much you will get out of your investment.

Money market

I would like to focus on one of the most common investment option, but not many people aware the benefit of – money market.

According to Wikipedia – In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquid funding for the global financial system.

Normally, investing in money market by opening a money market account yield more return than the conservative saving account.

According to M&T Bank eMoney Market website, the Annual Percentage Yield (APY) of money market is 3.25 per cent, compared to the 2.25 of national savings average.

Just like other forms of investing, you can open an online money market account, such as M&T Bank eMoney Market Account.

Money market might have the right compromise between risk and yield for some person. I personally recommend money market account (and do not recommend savings account) as part of diversification in your personal finance budgeting and planning to achieve your financial goal.

How Health Insurance can Actually Give You Better Physical and Financial Well-being

According to, there are 16 per cent of US resident this live without health insurance. As that will affect directly to the person without the insurance, in the long term this will affect US economy in the future.

If you one of them that have not protected by proper health insurance, consider applying for one. You need to protect your greatest asset – your health – in order to protect your and your family well-being. Even the sense of security in having an insurance is actually helping you being more healthy, as psychological issues play major role in health.

The role of health insurance in personal neurofinance

Consider this snapshot fo the article from

How are psychology and medicine linked?

Seven of the nine major causes of death–including tobacco use, alcohol abuse and poor diet–stem from behavior. Between 50 and 70% of all visits to physicians are for problems rooted from psychology and mounting evidence proves that psychological intervention can be useful in treating a wide range of problems, from AIDS and asthma to obesity and osteoporosis.

From the article snapshot above, we can learn than most health problems related to psychology. In the other way around, health problems can affect your psychological well-being due to stressors, such as difficulty in paying medical bills and other financial strains.

It is safe to assume that all physical and financial well-being are led by and leading to psychology issues.

How health insurance can give you better physical and financial well-being

Of course, health insurance is not a medicine. However health insurance can have a placebo effect to the insured.

Taking a personal individual insurance can help you protect your financial well-being and give you the sense of security, leading to better physical and psychological well-being. The effect of those is similar to the placebo effect I mentioned earlier.

Also, having you as a health insurance sales leads, insurance agents will take a good care of you and your needs throughout your insurance account lifetime. This, in itself, will act as an added sense of being well taken care of. Just make sure that you choose the right Insurance Company and the right agent.

I recommend you to seek recommendations on health insurance providers that offer exceptional coverage and support.