By: Brian Tracy
The way you think about money will determine how much of it you accumulate more than any other factor. Your attitude toward money affects your emotions and your motivations.The Five Ways to Become a MillionaireIf you are really serious about becoming wealthy, you will want to know the five main ways that fortunes are made in this country.
Own A Business
Number one, top of the list, top of the hit parade throughout the history of America, is self-owned businesses. It is entrepreneurship of all kinds, including in real EST ate. 74% of self-made millionaires in America, not only in this generation and in this century, but in the last century as well, come from self-owned businesses.
How Wealthy People Start OutThe great majority of wealthy people started businesses and built them from the ground up. In the 19th century, fortunes were built by people like Andrew Carnegie, Jacob van Astor, Thomas Edison, Commodore Vanderbilt, J. P. Morgan and others. In the 20th century, especially in the last few years, businesses and fortunes alike have been built by people like Bill Gates, Steve Case, Larry Ellison, Ross Perot and Sam Walton. Each of these people started with nothing and succeeded in building a business from scratch.
Work To The Top
Become a Millionaire Where You AreThe second major source of self-made millionaires in America is senior executives. Ten percent of the self-made millionaires in America are men and women who have joined large corporations and worked with those corporations for many years.
They rose to positions of seniority, were paid extremely well, given stock options, profit sharing and bon uses, and as a result of holding onto the money, they became millionaires.Success Pays Big RewardsMichael Eisner of Disney Corporation received a $126 million dollar bon us in a single year. Lee Iacoca of Chrysler Corporation was paid $26.7 million dollars as a bon us in a single year. It's not hard to become a self-made millionaire when you are making that kind of money.
Be A Professional
The Professional Road to WealthThe third source of self-made millionaires in America is doctors, lawyers and other professionals. Men and women who become very, very good at what they do and rise to the top of their professions are eventually paid, very, very well. The top five percent in every field earn 10 and 20 times as much as the average person in that field.
Be An Excellent Saleperson
Sell Your Way to the TopThe fourth major source of self-made millionaires in America are salespeople and sales consultants. Fully five percent of self-made millionaires are men and women who are the top salespeople in their fields. They never started their own businesses. They never went to college or university to get professional degrees. They just became very good salespeople for their products or services and were paid very good money.
The secret was that they then invested the money conservatively and held on to it. 99% of self-made millionaires come from these four categories: self-owned businesses - 74%; senior executive positions - 10%: doctors, lawyers and other professionals - 10%; and salespeople and sales consultants - 5%.
Other Ways
Other Ways to Get RichThe final one percent of self-made millionaires is made up of all the people in all other areas. This one percent consists of people who have made their money by inventions, in show business, in sports, through authorship of books and songs, lottery winners and inheritances. But these people make up only one percent of the total. The bottom line is that there are so many ways for you to become a self-made millionaire that it is almost impossible for you not to achieve this goal if you are really serious about it.
Take Action
Action ExercisesHere are two things you can do to put this information into action as soon as possible:First, decide what it is that you really enjoy doing and then throw your whole heart into doing it extremely well. There is a direct relationship between excellent performance and the kind of high income that leads to financial independence.
Second, be perfectly honest with yourself on an ongoing basis. Is what you are doing right now going to lead you to financial independence, or do you have to begin making some serious changes in your work and in your life? Whatever your answer, take action on it immediately.
Sunday, June 21, 2009
Monday, May 11, 2009
Stock Market Motivational Quotes
Thousands become millionaires, but millions become bankrupts in stock investment. Are you in the millions? Knowledge and experience is the perquisites in stocks trading. Learn from the gurus and give a thought to the following quotes:
Understand the risks in stock market. “Risk comes from not knowing what you are doing.” Warren Buffett.
Remember, never beat and outsmart the market. “The simple truth is that there are no ‘sure things’ in the market.” Bernard Baruch.
“If it goes up I buy it, if it goes down I sell it.” Mark Twain.
Study the market and work hard. “The odds are in your favour when you do your homework and work very hard.” Marty Schwartz. “The harder you work, the luckier you get.” Gary Player.
Trade and follow the trend. Never trade against the trend of the market. “The trend is the stairway to heaven.” Robert Krause.
Always preserve your capital. Warren Buffett said, “It is better to miss an opportunity than lose money.” George Soros said, “Survive first and make money afterwards.”
Define your trading plan and trade according to your plan. “It is the actual consistent execution of a well defined trading plan which has a positive expectance which makes profits.” Troy Stayman.
In stock trading, timing is very important. “The perfect speculator must know when to get in; more important he must know when to stay out and most important he must know when to get out and when he’s in.” Jay Gould.
Understand the risks in stock market. “Risk comes from not knowing what you are doing.” Warren Buffett.
Remember, never beat and outsmart the market. “The simple truth is that there are no ‘sure things’ in the market.” Bernard Baruch.
“If it goes up I buy it, if it goes down I sell it.” Mark Twain.
Study the market and work hard. “The odds are in your favour when you do your homework and work very hard.” Marty Schwartz. “The harder you work, the luckier you get.” Gary Player.
Trade and follow the trend. Never trade against the trend of the market. “The trend is the stairway to heaven.” Robert Krause.
Always preserve your capital. Warren Buffett said, “It is better to miss an opportunity than lose money.” George Soros said, “Survive first and make money afterwards.”
Define your trading plan and trade according to your plan. “It is the actual consistent execution of a well defined trading plan which has a positive expectance which makes profits.” Troy Stayman.
In stock trading, timing is very important. “The perfect speculator must know when to get in; more important he must know when to stay out and most important he must know when to get out and when he’s in.” Jay Gould.
Friday, May 8, 2009
The Determinant Of Success
By Brian Tracy
Believe In Yourself
Perhaps the most powerful single factor in your financial success is your beliefs about yourself and money. We call this the Law of Belief. It says simply this: Whatever you believe, with feeling, becomes your reality.What Successful People BelieveWhatever you intensely believe becomes your reality. That we have a tendency to block out any information coming in to us that is inconsistent with our reality.
What we've discovered is that successful people absolutely believe that they have the ability to succeed. And they will not entertain, think about, or talk about the possibilities that they'll fail. They do not even consider the possibility of failure.
Positive thinking And Knowing
Positive Thinking Versus Positive KnowingYou always act in a matter consistent with your beliefs. The most important belief system you can build is a prosperity consciousness where you absolutely believe that you are going achieve your financial goals. We call this positive knowing versus positive thinking.
Positive thinking can sometimes be wishing or hoping. But positive knowing is when you absolutely know that no matter what, you will be successful.
Willpower
The foundation of willpower is another principle related to your beliefs is willpower. We know that willpower is essential to any success. Willpower is based on confidence. It's based on conviction. It's based on faith.
It's based on your belief in your ability to triumph over all obstacles. And you can develop willpower by persistence, by working on your goals, by reading the biographies of successful people, by listening to audio programs, by reading books about people who've achieved success.
The more information you take into your mind consistent with success, the more likely it is that you will develop the willpower to push you through the obstacles and difficulties you will experience.
Beat The Odds
Beat the Odds on SuccessRemember that success is rare. Only one person in one hundred becomes wealthy in the course of a lifetime. Only five percent achieve financial independence. That means that the odds against you are 19-to-1. The only way that you're going to achieve your financial goals is if you get really serious. To succeed, you must get serious. You must get busy. You must get active. You must get going. Remember, everything counts.
Resolve To Achieve
Resolve to Achieve GreatlySelf-mastery, self-control, self-discipline are essential for anyone who wants to achieve greatly. And control over your thoughts is the hardest exercise in self-mastery that you will ever engage in. See if you can talk and think about only what you desire and not talk or think about anything that you don't want for 24 hours. Then you'll see what you're really made of.
Action
It's a hard thing to do but with practice, you can reach the point where you are thinking about your goals and desires most of the time. Then, your whole life will change for the better.Action ExercisesHere are two things you can do to build a belief system consistent with the financial success you desire:
First, continually repeat to yourself the words, pictures and thoughts consistent with your dreams and goals. Whatever you repeat often enough, over and over, becomes a new belief.Second, set a goal for yourself to think and talk only about the things that you want for the next 24 hours.
This will be one of the hardest things you ever do. But if you can keep your mind on what you want and off of what you don't want for 24 hours, you can begin to change your entire future.
Believe In Yourself
Perhaps the most powerful single factor in your financial success is your beliefs about yourself and money. We call this the Law of Belief. It says simply this: Whatever you believe, with feeling, becomes your reality.What Successful People BelieveWhatever you intensely believe becomes your reality. That we have a tendency to block out any information coming in to us that is inconsistent with our reality.
What we've discovered is that successful people absolutely believe that they have the ability to succeed. And they will not entertain, think about, or talk about the possibilities that they'll fail. They do not even consider the possibility of failure.
Positive thinking And Knowing
Positive Thinking Versus Positive KnowingYou always act in a matter consistent with your beliefs. The most important belief system you can build is a prosperity consciousness where you absolutely believe that you are going achieve your financial goals. We call this positive knowing versus positive thinking.
Positive thinking can sometimes be wishing or hoping. But positive knowing is when you absolutely know that no matter what, you will be successful.
Willpower
The foundation of willpower is another principle related to your beliefs is willpower. We know that willpower is essential to any success. Willpower is based on confidence. It's based on conviction. It's based on faith.
It's based on your belief in your ability to triumph over all obstacles. And you can develop willpower by persistence, by working on your goals, by reading the biographies of successful people, by listening to audio programs, by reading books about people who've achieved success.
The more information you take into your mind consistent with success, the more likely it is that you will develop the willpower to push you through the obstacles and difficulties you will experience.
Beat The Odds
Beat the Odds on SuccessRemember that success is rare. Only one person in one hundred becomes wealthy in the course of a lifetime. Only five percent achieve financial independence. That means that the odds against you are 19-to-1. The only way that you're going to achieve your financial goals is if you get really serious. To succeed, you must get serious. You must get busy. You must get active. You must get going. Remember, everything counts.
Resolve To Achieve
Resolve to Achieve GreatlySelf-mastery, self-control, self-discipline are essential for anyone who wants to achieve greatly. And control over your thoughts is the hardest exercise in self-mastery that you will ever engage in. See if you can talk and think about only what you desire and not talk or think about anything that you don't want for 24 hours. Then you'll see what you're really made of.
Action
It's a hard thing to do but with practice, you can reach the point where you are thinking about your goals and desires most of the time. Then, your whole life will change for the better.Action ExercisesHere are two things you can do to build a belief system consistent with the financial success you desire:
First, continually repeat to yourself the words, pictures and thoughts consistent with your dreams and goals. Whatever you repeat often enough, over and over, becomes a new belief.Second, set a goal for yourself to think and talk only about the things that you want for the next 24 hours.
This will be one of the hardest things you ever do. But if you can keep your mind on what you want and off of what you don't want for 24 hours, you can begin to change your entire future.
Friday, May 1, 2009
How To Stay Debt Free - By Lim Siew May
It's important to avoid being highly indebted as it can leave you financially vulnerable in tough times. Here's how to keep your credit card account in the black.
1) Mind your debt
When it comes to problems in managing debt, your mind may be the first area you need to conquer. Mohamed Akwal Sultan, CEO of the Credit Counselling and Debt Management Agency (AKPK), notes that debt is a psychological problem, whereby some people would resort to spending when they are depressed.
Dr Goh Chee Leong, vice-president of Help University College, says the basic principle that explains why people spend without thinking on their credit card is attributable to the desire for instant gratification. “We tend to want short-term pleasure even though it means long-term pain,” he says. “We think, if ‘I pay less now, I’ll have more money and it doesn’t hurt me now’. It’s the same principle as to why people procrastinate — have fun now and suffer later,” explains Goh, who lectures in psychology at Help.
Another factor that contributes to mindless spending, notes Goh, is the lack of control over desire. “Some lack the will-power to say no to what they feel they want. So, this is a matter of heart versus head.
Is there an antidote for this? “Focus on your limit,” he advises. “Don’t get distracted and compare yourself with other people. If you want to spend the same amount of money that others are spending, you either have to increase your income or decrease your expenditure. Although it is a cliché, it is important to live within your limit.”
The good news is that like many things in life, delaying one’s gratification can be attained through practice. “Discipline is a mental muscle. It’s willpower that makes us do something we don’t feel like doing, such as jogging and saving money,” Goh explains.
2) Know your limits
You can’t control debt if you don’t know what you are spending your money on. In Mohamed Akwal’s opinion, budget is one of the most important tools in financial planning. Tabitha Tan Boon Nie, 25, makes it a point to come up with a budget each month. “I only have one fixed income.
If I do not budget, then I might be spending more than my income. This is very dangerous!” Each month, she deducts her monthly fixed debts and expenses such as her housing and car loan instalments as well as her parents’ pocket money from her income. “If you’ve just started working, then, in two to three months’ time, you should have a rough idea of how much you need for meals, petrol and toll. If your expenses are more than the balance, then you’ll have to look at how you can reduce them,” she says.
Ruban Thomas, 30, a senior business development executive, took almost three years to clear his credit-card debt. But the experience has taught him how to manage his personal finances better. He now drafts a monthly personal budget planner, putting together a very basic list of monthly income and expenses. “You can just give it your best guess.
Stick to the list of things that you can easily identify, such as rent, car payment, insurance and utilities. As time goes by, you can add more details.” Ruban makes it a point to pay himself a minimum of 20% every month when he gets his pay cheque. Next, he sets aside money for “unavoidable payments” such as car and housing loans, PTPTN (National Higher Education Fund Corp) loan and utility bills.
Nelson Ng, a banker, does something similar. “The housing and car loans are my main priorities. I spend what’s left of my income after deducting 20% to 30% for savings,” he says.
3) Keep a tight rein on the ‘extras’
Budgeting helps to identify your regular expenditures, but it doesn’t help if you blow the budget regularly on big items. Ng points out: “You must always remember to not overspend and indulge in impulse purchases, especially during sales.”
Credit card issuers tend to give a credit limit that is two to three times higher than one’s earning capacity. This can give you the illusion that you are able to afford a lifestyle that is two or three times beyond your means.
Hence, make sure you have the money to pay for each purchase. You could have a little ‘savings accounts’ set aside for treats like travel or large purchases like a handphone. After purchasing the items, use the money to pay the charges in full.
4) Limit temptation
When Ng managed to settle his outstanding debts after around two years, he decided to cancel four of his credit cards to avoid the temptation of overspending. Currently, he only owns two credit cards — one for petrol transactions and the other for daily use.
“There is always the temptation to overspend when we have too many cards in our wallet,” he opines. “With a minimal payment of 5%, the monthly payments seem to be small, but the bigger debt is always waiting for us at the bottom of the statement.
Clear your credit card debts as fast as possible because every month, there will always be additional bills being credited and your debts will accumulate very fast, with the high interest of 18% per annum.”
Similarly, Tan owns two credit cards and does not intend to apply for more. “The interest rate is way higher than the interest rate your saving account is giving,” she points out. “Furthermore, my credit limits are already over my monthly income. I really wouldn’t want to get into such
debt that will take me years to clear.”
1) Mind your debt
When it comes to problems in managing debt, your mind may be the first area you need to conquer. Mohamed Akwal Sultan, CEO of the Credit Counselling and Debt Management Agency (AKPK), notes that debt is a psychological problem, whereby some people would resort to spending when they are depressed.
Dr Goh Chee Leong, vice-president of Help University College, says the basic principle that explains why people spend without thinking on their credit card is attributable to the desire for instant gratification. “We tend to want short-term pleasure even though it means long-term pain,” he says. “We think, if ‘I pay less now, I’ll have more money and it doesn’t hurt me now’. It’s the same principle as to why people procrastinate — have fun now and suffer later,” explains Goh, who lectures in psychology at Help.
Another factor that contributes to mindless spending, notes Goh, is the lack of control over desire. “Some lack the will-power to say no to what they feel they want. So, this is a matter of heart versus head.
Is there an antidote for this? “Focus on your limit,” he advises. “Don’t get distracted and compare yourself with other people. If you want to spend the same amount of money that others are spending, you either have to increase your income or decrease your expenditure. Although it is a cliché, it is important to live within your limit.”
The good news is that like many things in life, delaying one’s gratification can be attained through practice. “Discipline is a mental muscle. It’s willpower that makes us do something we don’t feel like doing, such as jogging and saving money,” Goh explains.
2) Know your limits
You can’t control debt if you don’t know what you are spending your money on. In Mohamed Akwal’s opinion, budget is one of the most important tools in financial planning. Tabitha Tan Boon Nie, 25, makes it a point to come up with a budget each month. “I only have one fixed income.
If I do not budget, then I might be spending more than my income. This is very dangerous!” Each month, she deducts her monthly fixed debts and expenses such as her housing and car loan instalments as well as her parents’ pocket money from her income. “If you’ve just started working, then, in two to three months’ time, you should have a rough idea of how much you need for meals, petrol and toll. If your expenses are more than the balance, then you’ll have to look at how you can reduce them,” she says.
Ruban Thomas, 30, a senior business development executive, took almost three years to clear his credit-card debt. But the experience has taught him how to manage his personal finances better. He now drafts a monthly personal budget planner, putting together a very basic list of monthly income and expenses. “You can just give it your best guess.
Stick to the list of things that you can easily identify, such as rent, car payment, insurance and utilities. As time goes by, you can add more details.” Ruban makes it a point to pay himself a minimum of 20% every month when he gets his pay cheque. Next, he sets aside money for “unavoidable payments” such as car and housing loans, PTPTN (National Higher Education Fund Corp) loan and utility bills.
Nelson Ng, a banker, does something similar. “The housing and car loans are my main priorities. I spend what’s left of my income after deducting 20% to 30% for savings,” he says.
3) Keep a tight rein on the ‘extras’
Budgeting helps to identify your regular expenditures, but it doesn’t help if you blow the budget regularly on big items. Ng points out: “You must always remember to not overspend and indulge in impulse purchases, especially during sales.”
Credit card issuers tend to give a credit limit that is two to three times higher than one’s earning capacity. This can give you the illusion that you are able to afford a lifestyle that is two or three times beyond your means.
Hence, make sure you have the money to pay for each purchase. You could have a little ‘savings accounts’ set aside for treats like travel or large purchases like a handphone. After purchasing the items, use the money to pay the charges in full.
4) Limit temptation
When Ng managed to settle his outstanding debts after around two years, he decided to cancel four of his credit cards to avoid the temptation of overspending. Currently, he only owns two credit cards — one for petrol transactions and the other for daily use.
“There is always the temptation to overspend when we have too many cards in our wallet,” he opines. “With a minimal payment of 5%, the monthly payments seem to be small, but the bigger debt is always waiting for us at the bottom of the statement.
Clear your credit card debts as fast as possible because every month, there will always be additional bills being credited and your debts will accumulate very fast, with the high interest of 18% per annum.”
Similarly, Tan owns two credit cards and does not intend to apply for more. “The interest rate is way higher than the interest rate your saving account is giving,” she points out. “Furthermore, my credit limits are already over my monthly income. I really wouldn’t want to get into such
debt that will take me years to clear.”
Friday, April 24, 2009
Secrets Of Millionaire - By Kimberly Palmer
10 Secrets of Millionaires' Money Management
Kimberly Palmer
Tuesday April 14, 2009, 11:15 am EDT
It turns out millionaires are just like us--but they have a lot more money. When asked about their secrets to success, they don't cite anything magical or rare, but rather the steady application of wise investing strategies, hard work, and, believe it or not, a degree of frugality.
Here are 10 secrets of millionaires' money management:
Start early to avoid financial pitfalls.
Adrian Cartwood, 49, author of the blog How to Make 7 Million in 7 Years, made his fortune by living frugally while he built his technology-related business. People often get into trouble, he says, by racking up personal debt early on, which acts as a big drag on their earnings. "Learn how to live within your means and how to delay gratification; these are the habits that you need to maintain on the way up, so you can keep your millions when you get there," he says.
Believe that you can do it.
Before investing in real estate and becoming a millionaire, Alan Corey, author of A Million Bucks by 30, read as many biographies and autobiographies of millionaires as he could find. He says he was searching for a common characteristic that could help him in his own quest. "What I found was they all had an incredible self-belief that they would be financially successful," he says. Corey says that embracing that level of self-confidence helped him get to the top.
Articulate your vision for success.
Jen Smith, author of the Millionaire Mommy Next Door blog, says that the saying, "I want to be rich," is too vague. Instead, she recommends imagining what your ideal life as a millionaire will look like. Smith offers this example: "I want to have $2,000,000 invested so that I can live off of the interest. Then I will quit my job so that I can volunteer, travel, learn to play tennis and watercolor, and enjoy picnics at the beach with my family."
Smith's vision involved becoming financially-free before becoming a parent. She cut out images from magazines of beautiful places she wanted to visit and people doing fun things and put them near her desk to help her keep that vision in mind.
Insure against life's risks.
Bankruptcy is often caused by divorce, a death in the family, or a disability that renders someone unable to work. Conversely, protecting against those risks through insurance protects wealth. In The Quiet Millionaire, financial planner Brett Wilder writes that many people either fail to get adequate insurance or pay too much for it because they don't understand it.
Work hard--and you'll get lucky.
In his new book, Think Like a Champion, Donald Trump attributes his success to his hard work, which to outsiders often appears to be luck. But Trump says luck only comes from working hard. "If your work pays off, which it most likely will, people might say you're just lucky. Maybe so, because you're lucky enough to have the brains to work hard!" he says. That same concept, of course, was advocated by Benjamin Franklin in the 18th century. He said, "The harder I work, the luckier I get."
Practice smart budgeting.
Smith recommends tracking how much you spend each month, something she does religiously. Every month, she downloads her transactions into a spreadsheet to keep her spending on track. Smith also says that, as prosaic as it sounds, maintaining a good credit score is essential to becoming and staying a millionaire. "A good credit score can save you thousands of dollars over the course of your lifetime," she says.
Do what you love.
Sure, a career in finance might come with a hefty annual salary, but you probably won't excel at something you don't enjoy. That's why Corey recommends going into the field that you find yourself reading about in your spare time. He asks, "Do you read fashion magazines? Get a job in fashion. Do you read gossip blogs? Get a job in celebrity-based enterprises. Do you read Car & Driver? ESPN.com? Yahoo Pets Forum?" Even if the field doesn't seem lucrative, there are ways to make it to the top--something that's more likely to happen if you love it.
[For more, read: "Juggling Your Money in the Recession."]
Decide how much money you really want.
For many people, $1 million won't be enough. "For most Gen-X and Gen-Yers, retiring with a couple million when they are 65 won't be anywhere near enough to maintain even an average lifestyle, because that little pup called inflation is constantly nipping at your heels as you try to run towards building your own retirement nest-egg," says Cartwood. A more reasonable goal might be $3 million-- an amount that Cartwood considers the minimum to be a "bare bones millionaire" these days. Consider your ideal lifestyle and what you would like to be able to fund. A mortgage of a certain size? Exotic vacations? College tuition for your children? Having a concrete goal in mind makes it easier to get there, says Cartwood.
Invest against the grain.
Corey recommends making investment decisions based on the exact opposite of what everyone else is doing. Right now, for example, stocks are relatively cheap because so many people have sold off shares, which means anyone buying can get them at a discount to their values from a year ago. Corey's rule of thumb doesn't just apply to stocks. "Buy a foreclosed house, fill it up with roommates, and you can get a pretty good passive income," he suggests.
Live below your means.
Even Eminem, a celebrity and millionaire, scales back his purchases out of concern for frugality. In February, London's Independent newspaper reported that as Eminem considered buying a $15,000 watch he liked, he started worrying that he should save his money instead. Eminem reportedly said, "I don't want to run out of money; I want my daughter to be able to go to college." And so far, at least, Eminem hasn't fallen victim to the financial challenges so many other stars, from Aretha Franklin to Annie Leibovitz, have faced.
[For more, read: "How to Go Broke Like a Rock Star."]
On the same note, Smith says that even though she's a millionaire, no one would know it--and that's the point. She recommends saving at least 10 to 25 percent of your income. She also suggests avoiding buying "status" items, such as fancy sports cars or mansions. After all, bling doesn't make a millionaire--and in fact, too much of it can prevent you from ever becoming one.
Kimberly Palmer
Tuesday April 14, 2009, 11:15 am EDT
It turns out millionaires are just like us--but they have a lot more money. When asked about their secrets to success, they don't cite anything magical or rare, but rather the steady application of wise investing strategies, hard work, and, believe it or not, a degree of frugality.
Here are 10 secrets of millionaires' money management:
Start early to avoid financial pitfalls.
Adrian Cartwood, 49, author of the blog How to Make 7 Million in 7 Years, made his fortune by living frugally while he built his technology-related business. People often get into trouble, he says, by racking up personal debt early on, which acts as a big drag on their earnings. "Learn how to live within your means and how to delay gratification; these are the habits that you need to maintain on the way up, so you can keep your millions when you get there," he says.
Believe that you can do it.
Before investing in real estate and becoming a millionaire, Alan Corey, author of A Million Bucks by 30, read as many biographies and autobiographies of millionaires as he could find. He says he was searching for a common characteristic that could help him in his own quest. "What I found was they all had an incredible self-belief that they would be financially successful," he says. Corey says that embracing that level of self-confidence helped him get to the top.
Articulate your vision for success.
Jen Smith, author of the Millionaire Mommy Next Door blog, says that the saying, "I want to be rich," is too vague. Instead, she recommends imagining what your ideal life as a millionaire will look like. Smith offers this example: "I want to have $2,000,000 invested so that I can live off of the interest. Then I will quit my job so that I can volunteer, travel, learn to play tennis and watercolor, and enjoy picnics at the beach with my family."
Smith's vision involved becoming financially-free before becoming a parent. She cut out images from magazines of beautiful places she wanted to visit and people doing fun things and put them near her desk to help her keep that vision in mind.
Insure against life's risks.
Bankruptcy is often caused by divorce, a death in the family, or a disability that renders someone unable to work. Conversely, protecting against those risks through insurance protects wealth. In The Quiet Millionaire, financial planner Brett Wilder writes that many people either fail to get adequate insurance or pay too much for it because they don't understand it.
Work hard--and you'll get lucky.
In his new book, Think Like a Champion, Donald Trump attributes his success to his hard work, which to outsiders often appears to be luck. But Trump says luck only comes from working hard. "If your work pays off, which it most likely will, people might say you're just lucky. Maybe so, because you're lucky enough to have the brains to work hard!" he says. That same concept, of course, was advocated by Benjamin Franklin in the 18th century. He said, "The harder I work, the luckier I get."
Practice smart budgeting.
Smith recommends tracking how much you spend each month, something she does religiously. Every month, she downloads her transactions into a spreadsheet to keep her spending on track. Smith also says that, as prosaic as it sounds, maintaining a good credit score is essential to becoming and staying a millionaire. "A good credit score can save you thousands of dollars over the course of your lifetime," she says.
Do what you love.
Sure, a career in finance might come with a hefty annual salary, but you probably won't excel at something you don't enjoy. That's why Corey recommends going into the field that you find yourself reading about in your spare time. He asks, "Do you read fashion magazines? Get a job in fashion. Do you read gossip blogs? Get a job in celebrity-based enterprises. Do you read Car & Driver? ESPN.com? Yahoo Pets Forum?" Even if the field doesn't seem lucrative, there are ways to make it to the top--something that's more likely to happen if you love it.
[For more, read: "Juggling Your Money in the Recession."]
Decide how much money you really want.
For many people, $1 million won't be enough. "For most Gen-X and Gen-Yers, retiring with a couple million when they are 65 won't be anywhere near enough to maintain even an average lifestyle, because that little pup called inflation is constantly nipping at your heels as you try to run towards building your own retirement nest-egg," says Cartwood. A more reasonable goal might be $3 million-- an amount that Cartwood considers the minimum to be a "bare bones millionaire" these days. Consider your ideal lifestyle and what you would like to be able to fund. A mortgage of a certain size? Exotic vacations? College tuition for your children? Having a concrete goal in mind makes it easier to get there, says Cartwood.
Invest against the grain.
Corey recommends making investment decisions based on the exact opposite of what everyone else is doing. Right now, for example, stocks are relatively cheap because so many people have sold off shares, which means anyone buying can get them at a discount to their values from a year ago. Corey's rule of thumb doesn't just apply to stocks. "Buy a foreclosed house, fill it up with roommates, and you can get a pretty good passive income," he suggests.
Live below your means.
Even Eminem, a celebrity and millionaire, scales back his purchases out of concern for frugality. In February, London's Independent newspaper reported that as Eminem considered buying a $15,000 watch he liked, he started worrying that he should save his money instead. Eminem reportedly said, "I don't want to run out of money; I want my daughter to be able to go to college." And so far, at least, Eminem hasn't fallen victim to the financial challenges so many other stars, from Aretha Franklin to Annie Leibovitz, have faced.
[For more, read: "How to Go Broke Like a Rock Star."]
On the same note, Smith says that even though she's a millionaire, no one would know it--and that's the point. She recommends saving at least 10 to 25 percent of your income. She also suggests avoiding buying "status" items, such as fancy sports cars or mansions. After all, bling doesn't make a millionaire--and in fact, too much of it can prevent you from ever becoming one.
Saturday, February 28, 2009
Motivate Yourself To Invest
Business Quotes To Motivate Us
“Entrepreneurs are people who dare to do things which others think are impossible to accomplish,” Kenny Yap
“For more people to become entrepreneurs, we have to change our attitude towards those who fail.” Lee Kuan Yew
“Businessmen fish in troubled waters. When the sea looks very calm, you are unlikely to catch fish. But when you see trouble on the water, then you should fish there because the big fish are driving the small fish up to the surface….In every crisis, big fortunes are made.” Robert Kuok Hock Nien
“It is during hard and suffering times that we learned a lot. I learned to be a bill collector, a supermarket guard…I learned to be everything. When times are good, we don’t really feel the need to do extraordinary, therefore we learn less.” Datuk Maznah Hamid
“I have never been poor, only broke. Being poor is a frame of mind. Being broke is only a temporary situation.” Mike Todd
“What people see of my success is only one percent but what they don’t see is the 99 percent which are my failures.” Soichiro Honda
“Opportunities of all sorts abound in troubled times….good times are good but bad times are still better.” Konosuke Matsushita
“Prefer a loss to a dishonest gain; the one brings pain at the moment, the other for all time.” Chilton
“Entrepreneurs are people who dare to do things which others think are impossible to accomplish,” Kenny Yap
“For more people to become entrepreneurs, we have to change our attitude towards those who fail.” Lee Kuan Yew
“Businessmen fish in troubled waters. When the sea looks very calm, you are unlikely to catch fish. But when you see trouble on the water, then you should fish there because the big fish are driving the small fish up to the surface….In every crisis, big fortunes are made.” Robert Kuok Hock Nien
“It is during hard and suffering times that we learned a lot. I learned to be a bill collector, a supermarket guard…I learned to be everything. When times are good, we don’t really feel the need to do extraordinary, therefore we learn less.” Datuk Maznah Hamid
“I have never been poor, only broke. Being poor is a frame of mind. Being broke is only a temporary situation.” Mike Todd
“What people see of my success is only one percent but what they don’t see is the 99 percent which are my failures.” Soichiro Honda
“Opportunities of all sorts abound in troubled times….good times are good but bad times are still better.” Konosuke Matsushita
“Prefer a loss to a dishonest gain; the one brings pain at the moment, the other for all time.” Chilton
You Can Make Your Child A Millionaire
The Power Of Compound Interest
Do you know that you can make yourself or your child a millionaire by following a simple rule of saving? Of course you can if you follow a strict saving scheme, after all Albert Einstein once said, “Compound interest is the eighth wonder of the world”.
The power of compound interest is so powerful that even it is considered as the eighth wonder of the world.
If you invest just RM1,200 a year for 40 years, at an interest rate of 10% per annum, your money will bring in an accumulated interest of RM589,678. Total value at the end of 40 years is RM636,678.
You may ask what investment vehicle gives a consistent 10% interest per annum. The answer to this is to invest in unit trust. Public Index Fund, Public Saving Fund and Public Industry Fund of Public Mutual Berhad gives an average annual return of more than 20% for the past 10 years.
As a parent we should start saving for our children. If you invest RM1,200 per year for your child starting when he is 2 years old, he will receive RM636,678 by the time he reaches 42. If he leaves his investment until his retirement age, he should be getting more than RM1 million. Of course your child can continue saving after finishing university when he starts working. This will relieve you a lot. In this case you only save for him for 22 years and the balance 18 years is by your child.
If you invest in unit trust that gives an average return of more than 20%, the value of investing the same amount for 40 years will be doubled to RM1.27 million.
Invest now for tomorrow’s good life. Warren Buffett said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Do you know that you can make yourself or your child a millionaire by following a simple rule of saving? Of course you can if you follow a strict saving scheme, after all Albert Einstein once said, “Compound interest is the eighth wonder of the world”.
The power of compound interest is so powerful that even it is considered as the eighth wonder of the world.
If you invest just RM1,200 a year for 40 years, at an interest rate of 10% per annum, your money will bring in an accumulated interest of RM589,678. Total value at the end of 40 years is RM636,678.
You may ask what investment vehicle gives a consistent 10% interest per annum. The answer to this is to invest in unit trust. Public Index Fund, Public Saving Fund and Public Industry Fund of Public Mutual Berhad gives an average annual return of more than 20% for the past 10 years.
As a parent we should start saving for our children. If you invest RM1,200 per year for your child starting when he is 2 years old, he will receive RM636,678 by the time he reaches 42. If he leaves his investment until his retirement age, he should be getting more than RM1 million. Of course your child can continue saving after finishing university when he starts working. This will relieve you a lot. In this case you only save for him for 22 years and the balance 18 years is by your child.
If you invest in unit trust that gives an average return of more than 20%, the value of investing the same amount for 40 years will be doubled to RM1.27 million.
Invest now for tomorrow’s good life. Warren Buffett said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Friday, February 27, 2009
Learn Investment The Benjamin Graham Way
The Intelligent Investor- Benjamin Graham
Born as Benjamin Grossbaum on 9th May 1894 in London. His father was dealer in China dishes and figurines. They have maid, cook and a French governess. His father died in 1903 and family went into poverty. Graham won a scholarship at Columbia. Graduated in 1914, second in class. He was 20 years old. Join Wall Street as a clerk, instead of academia.
Henry David Thoreau, Walden, “If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them”.
“All of human unhappiness comes from one single thing: not knowing how to remain at rest in a room.” Blaise Pascal.
Graham’s definition of investment as “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return”.
3 elements of investing:
you must throughtly analyse a company, the soundness of its underlying businesses
you must protect yourself against serious losses
you must aspire to “adequate”, not extraordinary, performance.
An investor calculates what a stock is worth, based on the value of its business. A speculator gambles that a stock will go up in the price because somebody else will pay even more for it.
Henny Youngman talked about inflation, “Americans are getting stronger. Twenty years ago, it took two people to carry ten dollars worth of groceries. Today, a five year-old can do it.”
REITs are companies that own and collect rent from commercial and residential properties. Good inflation fighters.
An intelligent investor must never forecast the future exclusively by extrapolating the past.
The value of any investment is, and always must be, a function of the price you pay for it. He price the investor should be willing to pay for stocks must not be finite. The higher they go, the harder they fall. There must be a limit to optimism.
On 24th March 2000, US stock market peaked at USD14.75 trillion. By 9th October 2002, it is worth USD7.34 trillion, a loss of 50.2%.
General notion is that the rate of return depends on the degree of risk you are willing to take. However, intelligent investor rate of return depends rather on the amount of intelligent effort the investor is willing and able to bring to bear on his risk. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligent and skill.
No intelligent investor no matter how starved for yield would ever buy a stock for dividend income alone; the company and its business must be solid, and its stock price must be reasonable.
“Human felicity is produced not so much by great pieces of good fortune that seldom happen, as by little advantages that occur every day.” Benjamin Franklin.
Graham insistence that how defensive you should be depends less on your tolerance for risk that on your willingness to put time and energy into your portfolio.
Lynch’s rule – “You can outperform the experts of you use your edge by investing in companies or industries you already understand”
“It requires a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it.: Nathan Mayer Rothschild.
A great company is not a great investment if you pay too much for the stock. Growth stock are worth buying when the prices are reasonable, but when their price earning ratios go much above 25 or 30 the odds get ugly.
“The happiness of those who want to be popular depends on others; the happiness of those who seek pleasure fluctuates with moods outside their control; but the happiness of the wise grows out of their own free acts.” Marcus Aurelius.
Graham’s image of Mr Market……when stock is going up, he happily pays more than their objective value; and when they are going down, he is desperate to dump them for less than their true value.
Our brains are hardwired to get us into investing trouble; humans are pattern-seeking animals. Neuroscience shows that our brains are designed to perceive trends even where they might not exist. After an event occurs just two or three times in a row, regions of the human brain called the anterior cingulated and nucleus accumbens automatically anticipate that it will happen again. If it does repeat, a natural chemical called dopamine is released, flooding your brain with a soft euphoria.
But when stocks drop, the financial loss fires up your amygdale- the part of the brain that processes fear and anxiety and generates the famous “fight or flight” response that is common to all cornered animals. You can’t help feeling fearfull when stock prices are plunging.
http://tinyurl.com/mathtoolbox
Born as Benjamin Grossbaum on 9th May 1894 in London. His father was dealer in China dishes and figurines. They have maid, cook and a French governess. His father died in 1903 and family went into poverty. Graham won a scholarship at Columbia. Graduated in 1914, second in class. He was 20 years old. Join Wall Street as a clerk, instead of academia.
Henry David Thoreau, Walden, “If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them”.
“All of human unhappiness comes from one single thing: not knowing how to remain at rest in a room.” Blaise Pascal.
Graham’s definition of investment as “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return”.
3 elements of investing:
you must throughtly analyse a company, the soundness of its underlying businesses
you must protect yourself against serious losses
you must aspire to “adequate”, not extraordinary, performance.
An investor calculates what a stock is worth, based on the value of its business. A speculator gambles that a stock will go up in the price because somebody else will pay even more for it.
Henny Youngman talked about inflation, “Americans are getting stronger. Twenty years ago, it took two people to carry ten dollars worth of groceries. Today, a five year-old can do it.”
REITs are companies that own and collect rent from commercial and residential properties. Good inflation fighters.
An intelligent investor must never forecast the future exclusively by extrapolating the past.
The value of any investment is, and always must be, a function of the price you pay for it. He price the investor should be willing to pay for stocks must not be finite. The higher they go, the harder they fall. There must be a limit to optimism.
On 24th March 2000, US stock market peaked at USD14.75 trillion. By 9th October 2002, it is worth USD7.34 trillion, a loss of 50.2%.
General notion is that the rate of return depends on the degree of risk you are willing to take. However, intelligent investor rate of return depends rather on the amount of intelligent effort the investor is willing and able to bring to bear on his risk. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligent and skill.
No intelligent investor no matter how starved for yield would ever buy a stock for dividend income alone; the company and its business must be solid, and its stock price must be reasonable.
“Human felicity is produced not so much by great pieces of good fortune that seldom happen, as by little advantages that occur every day.” Benjamin Franklin.
Graham insistence that how defensive you should be depends less on your tolerance for risk that on your willingness to put time and energy into your portfolio.
Lynch’s rule – “You can outperform the experts of you use your edge by investing in companies or industries you already understand”
“It requires a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it.: Nathan Mayer Rothschild.
A great company is not a great investment if you pay too much for the stock. Growth stock are worth buying when the prices are reasonable, but when their price earning ratios go much above 25 or 30 the odds get ugly.
“The happiness of those who want to be popular depends on others; the happiness of those who seek pleasure fluctuates with moods outside their control; but the happiness of the wise grows out of their own free acts.” Marcus Aurelius.
Graham’s image of Mr Market……when stock is going up, he happily pays more than their objective value; and when they are going down, he is desperate to dump them for less than their true value.
Our brains are hardwired to get us into investing trouble; humans are pattern-seeking animals. Neuroscience shows that our brains are designed to perceive trends even where they might not exist. After an event occurs just two or three times in a row, regions of the human brain called the anterior cingulated and nucleus accumbens automatically anticipate that it will happen again. If it does repeat, a natural chemical called dopamine is released, flooding your brain with a soft euphoria.
But when stocks drop, the financial loss fires up your amygdale- the part of the brain that processes fear and anxiety and generates the famous “fight or flight” response that is common to all cornered animals. You can’t help feeling fearfull when stock prices are plunging.
http://tinyurl.com/mathtoolbox
Saturday, February 21, 2009
How To Be Rich ( Article By Thomas & William )
As explained in the book The Millionaire Next Door by Thomas J. Stanley and William D. Danko, personal finance has as much to do with people's traits as it does with money. Many millionaires, in fact, have frugal ways.
Understanding how personal traits can influence your finances is an essential ingredient for building wealth.
Here are 10 key traits:
1. Patience
Patience is one of the most important traits when it comes to saving money.
This means waiting until the first wave of product hype has passed, keeping a car for an extra few years before getting another one and waiting until something you want fits into your budget instead of putting it on credit.
Patience is often the difference between creating savings and being in debt. Having the patience to wait until you find a good deal is a cornerstone of good finances.
2. Satisfaction
When you're satisfied, there is no reason to spend money on nonessentials. The sole purpose of commercials is to make you believe that buying a product or service will make you happier, wealthier, better looking or improve whatever isn't bringing you satisfaction.
People spend because they want to capture the excitement shown in advertisements. When you are satisfied with what you have and your life (not trying to live like those on TV), your finances will be in a lot better shape.
3. Organization
Being organized can make you more productive and ensure that all the many issues pertaining to personal finances are addressed.
It means not paying late fees, not buying two of everything, knowing deadlines that can affect your finances and getting more done in less time. All these can greatly benefit your finances.
4. Discipline
You need the discipline to continue to save money for specific, long-term goals every month.
Personal finance isn't a way to get rich quick, but is a disciplined execution of your lifetime plans.
5. Reflectiveness
It's important to be able to look at your financial decisions and reflect on their results.
You're going to make financial mistakes. Everyone does.
The key is to learn from those mistakes so you don't make them again, or recognize if you keep repeating them.
6. Creativity
The economy and our earnings don't always match our expectations.
Unexpected developments wreak havoc to elaborate financial plans. When this happens, changes are needed to deal with the new circumstances. Creativity is essential to accomplish this.
Creativity allows you to make something last longer rather than purchasing it when you don't have the money. It means juggling money to stay out of debt rather than simply paying with a credit card. It means finding a cheaper alternative when money is tight.
In these ways, creativity plays a large role in keeping finances in order.
7. Curiosity
Having curiosity helps you learn, study and improve yourself.
The curiosity of wanting to know more, to take the time to study and then take what is learned and put into practice is an important process that is driven by curiosity.
8. Risk-Taking
To build wealth, one needs to be willing to take risks. This doesn't mean uncalculated risks. It means weighing all the options and taking calculated risks when appropriate.
The stock market has risks involved, but over the long term, history shows that it provides good returns on money that is invested wisely. Those who fear risk altogether end up saving money in accounts that likely lose money to inflation in the long run.
9. Goal-Oriented
The importance of setting and working toward goals is obvious. If you don't know where you are going, it's difficult to get there. It helps your personal finances immensely if you have money goals and are motivated to reach the goals that you have set for yourself.
Those who lack goals don't have a road map to take them to the financial destination they want.
10. Hard- and Smart-Working:
Creating wealth and staying out of debt rarely comes about without a lot of hard work.
Many people might hope that the lottery will solve all their financial problems. The true path to financial freedom, however, is to work hard to earn money while educating yourself to continue to have more value and increase your salary.
You may not possess all of the above traits. But knowing them can help you make changes so that you nourish the ones that you have and obtain the ones you're missing.
Ultimately they will help you with your personal finances and create a plan to accumulate the wealth you desire.
Understanding how personal traits can influence your finances is an essential ingredient for building wealth.
Here are 10 key traits:
1. Patience
Patience is one of the most important traits when it comes to saving money.
This means waiting until the first wave of product hype has passed, keeping a car for an extra few years before getting another one and waiting until something you want fits into your budget instead of putting it on credit.
Patience is often the difference between creating savings and being in debt. Having the patience to wait until you find a good deal is a cornerstone of good finances.
2. Satisfaction
When you're satisfied, there is no reason to spend money on nonessentials. The sole purpose of commercials is to make you believe that buying a product or service will make you happier, wealthier, better looking or improve whatever isn't bringing you satisfaction.
People spend because they want to capture the excitement shown in advertisements. When you are satisfied with what you have and your life (not trying to live like those on TV), your finances will be in a lot better shape.
3. Organization
Being organized can make you more productive and ensure that all the many issues pertaining to personal finances are addressed.
It means not paying late fees, not buying two of everything, knowing deadlines that can affect your finances and getting more done in less time. All these can greatly benefit your finances.
4. Discipline
You need the discipline to continue to save money for specific, long-term goals every month.
Personal finance isn't a way to get rich quick, but is a disciplined execution of your lifetime plans.
5. Reflectiveness
It's important to be able to look at your financial decisions and reflect on their results.
You're going to make financial mistakes. Everyone does.
The key is to learn from those mistakes so you don't make them again, or recognize if you keep repeating them.
6. Creativity
The economy and our earnings don't always match our expectations.
Unexpected developments wreak havoc to elaborate financial plans. When this happens, changes are needed to deal with the new circumstances. Creativity is essential to accomplish this.
Creativity allows you to make something last longer rather than purchasing it when you don't have the money. It means juggling money to stay out of debt rather than simply paying with a credit card. It means finding a cheaper alternative when money is tight.
In these ways, creativity plays a large role in keeping finances in order.
7. Curiosity
Having curiosity helps you learn, study and improve yourself.
The curiosity of wanting to know more, to take the time to study and then take what is learned and put into practice is an important process that is driven by curiosity.
8. Risk-Taking
To build wealth, one needs to be willing to take risks. This doesn't mean uncalculated risks. It means weighing all the options and taking calculated risks when appropriate.
The stock market has risks involved, but over the long term, history shows that it provides good returns on money that is invested wisely. Those who fear risk altogether end up saving money in accounts that likely lose money to inflation in the long run.
9. Goal-Oriented
The importance of setting and working toward goals is obvious. If you don't know where you are going, it's difficult to get there. It helps your personal finances immensely if you have money goals and are motivated to reach the goals that you have set for yourself.
Those who lack goals don't have a road map to take them to the financial destination they want.
10. Hard- and Smart-Working:
Creating wealth and staying out of debt rarely comes about without a lot of hard work.
Many people might hope that the lottery will solve all their financial problems. The true path to financial freedom, however, is to work hard to earn money while educating yourself to continue to have more value and increase your salary.
You may not possess all of the above traits. But knowing them can help you make changes so that you nourish the ones that you have and obtain the ones you're missing.
Ultimately they will help you with your personal finances and create a plan to accumulate the wealth you desire.
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