5 Steps to Build a Creative Business from Scratch (Anna James, 18 Feb 2014)
Tuesday, February 18, 2014
Tuesday, May 29, 2012
Fight Against Poverty (Financial Freedom)
I would like to talk about the subject Triple-A.
1. ASPIRE
This is the dream, the vision, the want.It is more than " I want a million dollars". It is what you will ultimately have when you reach your financial goal. The dream may be I will have the freedom to sail around the world or I will visit to the seven wonder of the worlds.
* Choose your dream or your want
*Have clear vision of what the dream looks like in your mind, you can draw on paper, etc.
*Refer to this visual regularly, ideally everyday.This is the vision of why you are doing what you are doing.
2. ACQUIRE
This is the education part of do. Acwuiring knowledge includes reading books, attending seminars and classes, online research and study, talking with esperts, working with coaches and mentors, and so on, You are gathering the informations you need in order to take action. Shich leads us to step number 3.....
3. APPLY
This is the put-what -you've-learned-into-action stage. True knowledge comes from putting what you've learned into real-world practice. It is only applying th knowledge after you acquire it that those fears will dissipate.
Confucious said it best: "To know and not do, is to net yet know."
For me personally, it took sometime from stage 1 to 2, from 2 to 3. But always remember if you don't know what is your dream, "Create It". Donald Trump said if people must think why do not think big. It is absolutely free of charges.....
People always says we just want happiness,,,we don't want much money....Robert said why not both...
If we talk about education, the word "education" comes from the word "educe" which means "to draw out, to develop." Education is process of discovery. It is not a sitting silently in your chair, memorizing, and then regurgiting what you've read and heard from the teacher. The falls under the difinition of "brainwash: to impose belifes on somebody or to condition somebody to behave differently"
The school system will bring a banker into classroom of 10-year-olds to explain how they can open a bank account. Or they bring a stockbroker into high school to explain stocks and mutual funds while handing out their business cards and encouraging the teens to open a trading account. This is not education. This is sale pitch.
True Education is meant to draw out the information so that students learn through their own discovery process. The traditional education system will often tell you the answer such as : " The burner on the stove is hot. Don't touch it." True education is when you see the burner for the first time, and you're curious. You walk to it and touch it. You get burned. Where is the greater learning? True education is discovering things for yourself. And sometimes the process is painful.
Financal education is discovering where you are and what you have financially and then determining where you want to go. The key word is "YOU".
Mr Robert T Kiyosaki said "Face your Fear and doubts, the New world will open to you".
Blair Singer said "the biggest obstical to face your fear is "what others people think about you".
It's Rising Time (Kim Kiyosaki) mentioned;
* Speak the truth or stand up for what you believe in, even if you fear people may not like you or agree with you.
*Pursue your dream, even if you fear the resistance and rejection you may encounter, especially from those closet to you.
*Get out of a toxis relationship, even if you fear you're unable to survive financially or you fear being alone
*Leave ajob where you are unfulfilled and feel unappreciated, even if you fear loss of steady paycheck.
* Make financial decision, even if you fear you might make a mstake.
Rising Moments of Courage
You wouldn't need courage if you weren't scared. To be courageous is to triumph over fear. Every time you face a fear, consider that a "Rising Moment." With every rising moment, you become more of who you are - more confident, more creative, more "out there," more complete.
It is those courageous rising moments that show you who you really are.
If you stop working today....How long could you survive financially?
We are going to measure your wealth in terms of time. How long can you survive with the same level of enpenses.The number-one fear in America is the fear of running out of money during retirement.
You have income coming in every month that equals or exceeds you living ecpenses...forever, In other words, ou never have to worry abot runnning out of money once you retire or stop working, and You standard of living remains the same or, in many cases, increases. How you can do that?
There are two primary outcomes an investor invests for:
1) Capital Gain (Eg,You buy a house with 20,000 and sell out 40,000,you got 20,000 profit)
2) Cash Flow (Eg, you got steady cash income form your business such as; shop,hotel)
Hedge (buy gold or silver against losing its value)
You must decide which result you want from your investments - Cash flow, Capital, or Hedge.
*** Your job as an investor is to convert your ordinary earned income into portfolio and passive income. ***
An asset is something that puts money in your pocket whether you work or not.
A liability is something that takes money out of your pocket.
The Four Tests to Find Good Advice
1) Choose your advisers wisely
2) Practice what you preach, Are they taking their own advice?
3) Consider the source
4) Adviser or salesperson?
There are five simple questions to help you evaluate the financial advice you receive:
1. Is the person offering the advice successfully doing what I want to do?
2. Does the adviser practice the advice they preach?
3. Is the advice clean of commercial ties, biases and paid endorsements?
4. Is it really financial advice or sales pitch?
5. finally, do you trust this person? In your gut, do you feel they are eghical, moral, and forthright? Do you trust him or her to tell it like it is-the good, the bad, the pretty, and the ugly? Just as every coin has two sides, so does every investment.
If you want to live long and happy life, you need to change your attitute;
1. Purpose - you should have the sense of being of value - to yourself and others.
Your purpose drives you to keep going, no matter what.
2. Optimism - you should have a bright and positive outlook on life.
"pessimistic people tend to be more accurate, but optimistic people live longer."
3. Resiliency - you should possess the ability to recover from setback.
Donald said " what is good about worry, you solve it now or later"
These three traits would benefit all of us in all areas of our life...including the journey to our financial dreams.
There is no way possible for you to become financially secure and independent without experiencing turbulence.
How to deal with turbulence - Now
First - Take a deep breath
Second - ask yourself, "What happened?" what exactely is the turbulence you're dealing with?
Third - ask these questions:
* What can I do now?
* Who can I call now who knows more about this than I do?
* What information do I need and where can I find it now?
We all experience varying degrees of turbulence in our lives. They range from :
*Bumps in the road which slow us down, to
*Flat tires that can stop us in our tracks, to
* Head-on collisions that require time and attention to heal, to
* Life-threatening, or perceived life-threatening to heal, to tremendous spirit and courage to get through.
Long-term positive change, which is exactly what you are doing in your personal journey to reach your financial dreams. Just know that turbulence and resistance are simply part of the process. They are just something to be dealt with.
Figure - Actively Speaking (Investment, ROI)
If it is a good deal, then:
* Show me the numbers - past operating numbers, as well as the worst - and bestcase scenario of the future numbers.
* Explain why and how this investment wll increase in value in the future
*Give me the expected rate of return on the money I invest in this investment.
Take the "NUMB" out of the numbers, what Numbers are we talking about?
*Income Statement
*Balance Sheet
*Statement of Cash Flow
"Debt" is not a four letter word.
* Pay off the debt or credit card with the highest interest rate first.
*Pay a little more every month on every debt you have.
*Cut your monthly expenses.
How We Got Out of Debt (Kim shared a few highlights)
*I stopped paying off a little bit more on each debt. That didn't work. I paid the minimum on all bad debts except the one I was focus on paying off first.
*I did not pay off the debt with the highest interest rate first. I first paid off the debt with the least amount owed. Why? Because I wanted a win early on to prove that I could do this.
*I did not do anything differently regarding my expenses, like reducing expenses or cutting up my credit cards. The only one thing I hadto do differently was come up with an extra $100 per month. Now if you can't do that, which any woman can, then your chance for financial freedom is slim.
Return on Investment
Risk
Warren Buffett says of risk, "Risk is not knowing what you are doing." Again the key word is YOU not the investment.
1) If you don't understand how the company makes money, then don't invest in it.
2) If it looks too good to be true, then it probably is.
All our dreams can come true, if we have the courage to pursue them.- Walt Disney
Setting a vague goal is like walking into a restaurant and saying "I'm hungry. I want some food." You'll stay hungry until you order something.
Well-formed Goals accomplish two things : they help you visualize what you want and make you excited about achieving it.
You've got to think about the big things while you're doing small things, so that all the small things go in the right direction.
I would like to share : Five-Fold Why
Applying the Five-Fold Why is easy: whenever you st a Goal or objective, ask yourself why you want it. If you want to become a millionaire, ask yourself why you want to have a million dollars.
For example : " I want to be a millionaire":
1. Why fo I want a million dollars? Because I don't want to be stressed about money.
2. Why don't you want to be stressed about money? So I don't feel anxious.
3. Why don't you want to feel anxious? So I feel secure.
4. Why do you want to feel secure? So I feel free.
5.Why do you want to feel free? Because I want to feel free.
Next Action
Climbing Mount Everest is a project - one fraught with complexity and Uncertainty. How do ou work on a project so large it treatens to over whelm you?
Simple : focus only on the action you need to take next to move toward your Goal.
According to Dr. Michael Sutcliffe of the University of cambridge has proposed "8 Symptoms of Bureauccratic Breakdown" that appear in teams suffering from Communication Pverhead:
1) The Invisible Decision - No one knows how or where decisions are made, and there is no transparency in the decision-making process.
2) Unfinishes Business- Too many taskes are started but very few are carried throught to the end.
3)Coordination paralysis- Nothing can be done withut checking with a host of interconnected units.
4) Nothing New - There are no radical ideas, inventions, or lateral thinking- a general lack of initiative.
5)Pseudo-Problems- Minor issues become magnifid out of all proportion.
6)Embattled Center_ Teh center battles for sonsistency and control against local/regional units.
7)Negative Deadlines - The deadlines for work become more important than the quality of the work being done.
8)Imput Domintion - Individuals react to inputs - I.E., whatever gets put in their in-tray-as opposed to sunig their own initative.
Al Switzler recommend using the STATE model to communicate without provoking anger or defensiveness:
1. Share your facts - Facts are less controversial, more persuasive, and less insulting than concluions, so lead with them first.
2. Tell your story - Explain the situitation from your point of view, taking care to avoid insulting or judging, which makes the other person feel safe.
3. Ask for other's paths - Ask for the other person's side of the situitation, what they intended, and what they want.
4. Talk tentatively - Avoid conclusions, judgments, and ultimatums.
5. Encourage testing - Make suggesstions, ask for input, and discuss until you reach a productive and mutually satisfactory course of action.
Successful investors don't rely on predicting the market's next move. Indeed, both Buffett and Soros would be the first to admit that if they relied on their market predictions, they'd go broke. Prediction is a bread-and- Butter of investment newsletter and mutual fund marketing- not of successful investing.
Highly successful investors are no better at predicting the market's next move than you or I.
If you could really predict the future, would you shout about it from the rooftops? Or would you keep your mouth shut, open a brokage account and make a pile of money?
Warren Buffett is the world's richest investor. His favourite source of investment "tips" is usually free fro the asking: company annual reports. So what we belivng that "Inside Information" is the way to make really big money is WRONG.
Warren Buffett's amazing track record comes from identifying half-a-dozen great companies- and then taking huge positions in only those companies.
People are beliving that they have to take big risks to make big profits. Actually successful investors are highly risk-averse and do everything they can to avoidrisk and minimize loss.
Money once made is to be kept, never lost or spent. Capital preservation is the foundation of his personality and his investment style. Thanks Mr Buffett.
I can be risk-averse. To the Master investor, risk is contextual, measurable, and manageable and /or avoidable. When someone ask you "what is your risk profile?" or "What's your appetite for risk?" what they are really asking you is: "How much money are you willing to lose?"
The Four Levels of Wisdom
* The man who knows and knows he knows is wise. Follow him.
* The man who knows and knows not he knows is asleep. Wake him.
* The man who knows not and knows he knows not is a student.
* The man who knows not he knows not is a fool. Shun him.
Being in a state of unconscious incompetence can be highly hazardous to your wealth. It is look like the man who has found himself in the middle of a mine field, and what he did was close his eyes and walk through it.
As Warren Buffett says: "Risk comes from not knowing what you are doing."
**************************************************************************
His focus was on the his investment criteria, on the measuring the quality of the business. And that quality - to judge by earnings alone - was improving. In the investment marketplace, you are what you measure.
**************************************************************************
February 1973, Buffett began buying shares in the Washington Post Co. at $27, the shares had fallen from $38 to $20 and kept falling. Indeed , it was two yers before the market came back to his original average purchase price of $22.75 per share.But Buffett didn't care about the share price. Why? His investment criteria on the measuring the quality of the business.
The master investor has developed his own investment philisophy, which is an expression of his personality, abilities, knowledge, tastes and objectives. As a result, no tow highly successful investors have the same investment philosophy.
An investment philosophy is a set of beliefs about:
* the nature of investment reality: how markets work, why prices move;
*a theory of value, including how value can be identified, and what causes profits and losses; and
*the nature of a good investment.
Why Women's Skirts Go Up- and Down?
The natural state of an industry that is purely reflexive in nature, ruled entirely by beliefs or opinions.
" I deserve to Make Money"
Both Buffett and Soros share certain beliefs about themselves that are an essential component of their success.
* They believe that they deserve to succeed and make money.
*They believe that they are responsible for their own financial destiny; that they; not the markets or some external force, cause their profits or losses; that they are in control.
BEWARE! Mixing Religion with Markets Can be Hazardous to your Wealth
I don’t do it every day, but let me tell you, on the days I do it, it makes me very happy.
Why should that be? Why should the simple act of thinking about who and what I’m grateful for make such a big difference in my life?
Just a few reasons:
I thank my loved ones, for all they do to me. I thank strangers who’ve shown me little acts of kindness. I thank God, for the life he’s given me. I thank people around the world for the things they’ve done to make the world better. I thank myself, for things that I’ve done (it’s important to recognize your own accomplishments).
How to Live a Life of Gratitude
The thing is, simple acts of gratitude don’t cost you much (especially once you get over the initial discomfort some people feel with thanking others). But they can make a huge difference.
If you’re interested in living a life of gratitude, here are my suggestions:
1. ASPIRE
This is the dream, the vision, the want.It is more than " I want a million dollars". It is what you will ultimately have when you reach your financial goal. The dream may be I will have the freedom to sail around the world or I will visit to the seven wonder of the worlds.
* Choose your dream or your want
*Have clear vision of what the dream looks like in your mind, you can draw on paper, etc.
*Refer to this visual regularly, ideally everyday.This is the vision of why you are doing what you are doing.
2. ACQUIRE
This is the education part of do. Acwuiring knowledge includes reading books, attending seminars and classes, online research and study, talking with esperts, working with coaches and mentors, and so on, You are gathering the informations you need in order to take action. Shich leads us to step number 3.....
3. APPLY
This is the put-what -you've-learned-into-action stage. True knowledge comes from putting what you've learned into real-world practice. It is only applying th knowledge after you acquire it that those fears will dissipate.
Confucious said it best: "To know and not do, is to net yet know."
For me personally, it took sometime from stage 1 to 2, from 2 to 3. But always remember if you don't know what is your dream, "Create It". Donald Trump said if people must think why do not think big. It is absolutely free of charges.....
People always says we just want happiness,,,we don't want much money....Robert said why not both...
If we talk about education, the word "education" comes from the word "educe" which means "to draw out, to develop." Education is process of discovery. It is not a sitting silently in your chair, memorizing, and then regurgiting what you've read and heard from the teacher. The falls under the difinition of "brainwash: to impose belifes on somebody or to condition somebody to behave differently"
The school system will bring a banker into classroom of 10-year-olds to explain how they can open a bank account. Or they bring a stockbroker into high school to explain stocks and mutual funds while handing out their business cards and encouraging the teens to open a trading account. This is not education. This is sale pitch.
True Education is meant to draw out the information so that students learn through their own discovery process. The traditional education system will often tell you the answer such as : " The burner on the stove is hot. Don't touch it." True education is when you see the burner for the first time, and you're curious. You walk to it and touch it. You get burned. Where is the greater learning? True education is discovering things for yourself. And sometimes the process is painful.
Financal education is discovering where you are and what you have financially and then determining where you want to go. The key word is "YOU".
Mr Robert T Kiyosaki said "Face your Fear and doubts, the New world will open to you".
Blair Singer said "the biggest obstical to face your fear is "what others people think about you".
It's Rising Time (Kim Kiyosaki) mentioned;
* Speak the truth or stand up for what you believe in, even if you fear people may not like you or agree with you.
*Pursue your dream, even if you fear the resistance and rejection you may encounter, especially from those closet to you.
*Get out of a toxis relationship, even if you fear you're unable to survive financially or you fear being alone
*Leave ajob where you are unfulfilled and feel unappreciated, even if you fear loss of steady paycheck.
* Make financial decision, even if you fear you might make a mstake.
Rising Moments of Courage
You wouldn't need courage if you weren't scared. To be courageous is to triumph over fear. Every time you face a fear, consider that a "Rising Moment." With every rising moment, you become more of who you are - more confident, more creative, more "out there," more complete.
It is those courageous rising moments that show you who you really are.
If you stop working today....How long could you survive financially?
| Your wealth Number = | Your Available Money |
| Your Monthly Expenses |
We are going to measure your wealth in terms of time. How long can you survive with the same level of enpenses.The number-one fear in America is the fear of running out of money during retirement.
You have income coming in every month that equals or exceeds you living ecpenses...forever, In other words, ou never have to worry abot runnning out of money once you retire or stop working, and You standard of living remains the same or, in many cases, increases. How you can do that?
There are two primary outcomes an investor invests for:
1) Capital Gain (Eg,You buy a house with 20,000 and sell out 40,000,you got 20,000 profit)
2) Cash Flow (Eg, you got steady cash income form your business such as; shop,hotel)
Hedge (buy gold or silver against losing its value)
You must decide which result you want from your investments - Cash flow, Capital, or Hedge.
*** Your job as an investor is to convert your ordinary earned income into portfolio and passive income. ***
An asset is something that puts money in your pocket whether you work or not.
A liability is something that takes money out of your pocket.
The Four Tests to Find Good Advice
1) Choose your advisers wisely
2) Practice what you preach, Are they taking their own advice?
3) Consider the source
4) Adviser or salesperson?
There are five simple questions to help you evaluate the financial advice you receive:
1. Is the person offering the advice successfully doing what I want to do?
2. Does the adviser practice the advice they preach?
3. Is the advice clean of commercial ties, biases and paid endorsements?
4. Is it really financial advice or sales pitch?
5. finally, do you trust this person? In your gut, do you feel they are eghical, moral, and forthright? Do you trust him or her to tell it like it is-the good, the bad, the pretty, and the ugly? Just as every coin has two sides, so does every investment.
If you want to live long and happy life, you need to change your attitute;
1. Purpose - you should have the sense of being of value - to yourself and others.
Your purpose drives you to keep going, no matter what.
2. Optimism - you should have a bright and positive outlook on life.
"pessimistic people tend to be more accurate, but optimistic people live longer."
3. Resiliency - you should possess the ability to recover from setback.
Donald said " what is good about worry, you solve it now or later"
These three traits would benefit all of us in all areas of our life...including the journey to our financial dreams.
There is no way possible for you to become financially secure and independent without experiencing turbulence.
How to deal with turbulence - Now
First - Take a deep breath
Second - ask yourself, "What happened?" what exactely is the turbulence you're dealing with?
Third - ask these questions:
* What can I do now?
* Who can I call now who knows more about this than I do?
* What information do I need and where can I find it now?
We all experience varying degrees of turbulence in our lives. They range from :
*Bumps in the road which slow us down, to
*Flat tires that can stop us in our tracks, to
* Head-on collisions that require time and attention to heal, to
* Life-threatening, or perceived life-threatening to heal, to tremendous spirit and courage to get through.
Long-term positive change, which is exactly what you are doing in your personal journey to reach your financial dreams. Just know that turbulence and resistance are simply part of the process. They are just something to be dealt with.
Figure - Actively Speaking (Investment, ROI)
If it is a good deal, then:
* Show me the numbers - past operating numbers, as well as the worst - and bestcase scenario of the future numbers.
* Explain why and how this investment wll increase in value in the future
*Give me the expected rate of return on the money I invest in this investment.
Take the "NUMB" out of the numbers, what Numbers are we talking about?
*Income Statement
*Balance Sheet
*Statement of Cash Flow
"Debt" is not a four letter word.
* Pay off the debt or credit card with the highest interest rate first.
*Pay a little more every month on every debt you have.
*Cut your monthly expenses.
How We Got Out of Debt (Kim shared a few highlights)
*I stopped paying off a little bit more on each debt. That didn't work. I paid the minimum on all bad debts except the one I was focus on paying off first.
*I did not pay off the debt with the highest interest rate first. I first paid off the debt with the least amount owed. Why? Because I wanted a win early on to prove that I could do this.
*I did not do anything differently regarding my expenses, like reducing expenses or cutting up my credit cards. The only one thing I hadto do differently was come up with an extra $100 per month. Now if you can't do that, which any woman can, then your chance for financial freedom is slim.
Return on Investment
| ROI = | Annual investment income (cash flow) |
| Cash invested |
Risk
Warren Buffett says of risk, "Risk is not knowing what you are doing." Again the key word is YOU not the investment.
1) If you don't understand how the company makes money, then don't invest in it.
2) If it looks too good to be true, then it probably is.
| Risky | Safe…er |
| Having no financial education. | Getting financial educated. |
| Blindly turing your money over to a financial planner or adviser | Actively investing your money and gaining hands-on experience. |
| Not understanding the investment and the returns on the investment. | Understanding the investment and the returns on the investment. |
| Putting up the majority of the money and the risk and letting others walk aways with the majority of returns. | Putting up majority of the money and the risk and getting the majority of the returns. |
| Having no control in your investments | Having control in your investments. |
| Depending heavily on a financial adviser. | Becoming your own financial adviser. |
All our dreams can come true, if we have the courage to pursue them.- Walt Disney
Setting a vague goal is like walking into a restaurant and saying "I'm hungry. I want some food." You'll stay hungry until you order something.
Well-formed Goals accomplish two things : they help you visualize what you want and make you excited about achieving it.
You've got to think about the big things while you're doing small things, so that all the small things go in the right direction.
I would like to share : Five-Fold Why
Applying the Five-Fold Why is easy: whenever you st a Goal or objective, ask yourself why you want it. If you want to become a millionaire, ask yourself why you want to have a million dollars.
For example : " I want to be a millionaire":
1. Why fo I want a million dollars? Because I don't want to be stressed about money.
2. Why don't you want to be stressed about money? So I don't feel anxious.
3. Why don't you want to feel anxious? So I feel secure.
4. Why do you want to feel secure? So I feel free.
5.Why do you want to feel free? Because I want to feel free.
Next Action
Climbing Mount Everest is a project - one fraught with complexity and Uncertainty. How do ou work on a project so large it treatens to over whelm you?
Simple : focus only on the action you need to take next to move toward your Goal.
According to Dr. Michael Sutcliffe of the University of cambridge has proposed "8 Symptoms of Bureauccratic Breakdown" that appear in teams suffering from Communication Pverhead:
1) The Invisible Decision - No one knows how or where decisions are made, and there is no transparency in the decision-making process.
2) Unfinishes Business- Too many taskes are started but very few are carried throught to the end.
3)Coordination paralysis- Nothing can be done withut checking with a host of interconnected units.
4) Nothing New - There are no radical ideas, inventions, or lateral thinking- a general lack of initiative.
5)Pseudo-Problems- Minor issues become magnifid out of all proportion.
6)Embattled Center_ Teh center battles for sonsistency and control against local/regional units.
7)Negative Deadlines - The deadlines for work become more important than the quality of the work being done.
8)Imput Domintion - Individuals react to inputs - I.E., whatever gets put in their in-tray-as opposed to sunig their own initative.
Al Switzler recommend using the STATE model to communicate without provoking anger or defensiveness:
1. Share your facts - Facts are less controversial, more persuasive, and less insulting than concluions, so lead with them first.
2. Tell your story - Explain the situitation from your point of view, taking care to avoid insulting or judging, which makes the other person feel safe.
3. Ask for other's paths - Ask for the other person's side of the situitation, what they intended, and what they want.
4. Talk tentatively - Avoid conclusions, judgments, and ultimatums.
5. Encourage testing - Make suggesstions, ask for input, and discuss until you reach a productive and mutually satisfactory course of action.
Successful investors don't rely on predicting the market's next move. Indeed, both Buffett and Soros would be the first to admit that if they relied on their market predictions, they'd go broke. Prediction is a bread-and- Butter of investment newsletter and mutual fund marketing- not of successful investing.
Highly successful investors are no better at predicting the market's next move than you or I.
If you could really predict the future, would you shout about it from the rooftops? Or would you keep your mouth shut, open a brokage account and make a pile of money?
Warren Buffett is the world's richest investor. His favourite source of investment "tips" is usually free fro the asking: company annual reports. So what we belivng that "Inside Information" is the way to make really big money is WRONG.
Warren Buffett's amazing track record comes from identifying half-a-dozen great companies- and then taking huge positions in only those companies.
People are beliving that they have to take big risks to make big profits. Actually successful investors are highly risk-averse and do everything they can to avoidrisk and minimize loss.
Money once made is to be kept, never lost or spent. Capital preservation is the foundation of his personality and his investment style. Thanks Mr Buffett.
I can be risk-averse. To the Master investor, risk is contextual, measurable, and manageable and /or avoidable. When someone ask you "what is your risk profile?" or "What's your appetite for risk?" what they are really asking you is: "How much money are you willing to lose?"
The Four Levels of Wisdom
* The man who knows and knows he knows is wise. Follow him.
* The man who knows and knows not he knows is asleep. Wake him.
* The man who knows not and knows he knows not is a student.
* The man who knows not he knows not is a fool. Shun him.
Being in a state of unconscious incompetence can be highly hazardous to your wealth. It is look like the man who has found himself in the middle of a mine field, and what he did was close his eyes and walk through it.
As Warren Buffett says: "Risk comes from not knowing what you are doing."
**************************************************************************
His focus was on the his investment criteria, on the measuring the quality of the business. And that quality - to judge by earnings alone - was improving. In the investment marketplace, you are what you measure.
**************************************************************************
February 1973, Buffett began buying shares in the Washington Post Co. at $27, the shares had fallen from $38 to $20 and kept falling. Indeed , it was two yers before the market came back to his original average purchase price of $22.75 per share.But Buffett didn't care about the share price. Why? His investment criteria on the measuring the quality of the business.
The master investor has developed his own investment philisophy, which is an expression of his personality, abilities, knowledge, tastes and objectives. As a result, no tow highly successful investors have the same investment philosophy.
An investment philosophy is a set of beliefs about:
* the nature of investment reality: how markets work, why prices move;
*a theory of value, including how value can be identified, and what causes profits and losses; and
*the nature of a good investment.
Why Women's Skirts Go Up- and Down?
The natural state of an industry that is purely reflexive in nature, ruled entirely by beliefs or opinions.
" I deserve to Make Money"
Both Buffett and Soros share certain beliefs about themselves that are an essential component of their success.
* They believe that they deserve to succeed and make money.
*They believe that they are responsible for their own financial destiny; that they; not the markets or some external force, cause their profits or losses; that they are in control.
BEWARE! Mixing Religion with Markets Can be Hazardous to your Wealth
Why Living a Life of Gratitude Can Make You Happy
“If the only prayer you said in your whole life was, ‘thank you,’ that would suffice.”Many days, I try to humble myself and hold a 2-minute gratitude session. I simply sit or kneel, with no distractions, close my eyes, and think about what I’m grateful for and who I’m grateful for.
I don’t do it every day, but let me tell you, on the days I do it, it makes me very happy.
Why should that be? Why should the simple act of thinking about who and what I’m grateful for make such a big difference in my life?
Just a few reasons:
- Because it reminds you of the positive things in your life. It makes you happy about the people in your life, whether they’re loved ones or just a stranger you met who was kind to you in some ways.
- Because it turns bad things into good things. Having problems at work? Be grateful you have work. Be grateful you have challenges, and that life isn’t boring. Be grateful that you can learn from these challenges. Be thankful they make you a stronger person.
- Because it reminds you of what’s important. It’s hard to complain about the little things when you give thanks that your children are alive and healthy. It’s hard to get stressed out over paying bills when you are grateful there is a roof over your head.
- Because it reminds you to thank others. I’ll talk about this more below, but the simple act of saying “thank you” to someone can make a big difference in that person’s life. Calling them, emailing them, stopping by to say thank you … just taking that minute out of your life to tell them why you are grateful toward them is important to them. People like being appreciated for who they are and what they do. It costs you little, but makes someone else happy. And making someone else happy will make you happy.
I thank my loved ones, for all they do to me. I thank strangers who’ve shown me little acts of kindness. I thank God, for the life he’s given me. I thank people around the world for the things they’ve done to make the world better. I thank myself, for things that I’ve done (it’s important to recognize your own accomplishments).
How to Live a Life of Gratitude
The thing is, simple acts of gratitude don’t cost you much (especially once you get over the initial discomfort some people feel with thanking others). But they can make a huge difference.
If you’re interested in living a life of gratitude, here are my suggestions:
- Morning gratitude session. Take 2-3 minutes each morning to give thanks, to whoever or whatever you’re grateful for. You don’t have to do anything, other than close your eyes and silently give thanks. This one act can make a huge difference.
- Say thank you. When someone does something nice for you, however small, try to remember to say thank you. And really mean it.
- Call to say thanks. Sometimes you might think about something nice that someone did for you. Perhaps you remember during your gratitude session. When you do, pick up the phone and call the person, just to say thanks. Let them know what they did that you’re grateful for, and why you appreciate it. Takes a minute or two. If it’s too early to call, make a note to call later. Even better is telling them in person, if you happen to see them or if they’re on your route. Almost as good is a thank-you email — keep it short and sweet.
- Give thanks for “negative” things in your life. There’s always two ways to look at something. Many times we think of something as negative — it’s stressful, harmful, sad, unfortunate, difficult. But that same thing can be looked at in a more positive way. Giving thanks for those things is a great way to remind yourself that there is good in just about everything. Problems can be seen as opportunities to grow, to be creative. See the prayer below for more on this.
- Learn a gratitude prayer. There are many prayers, religious or not, that can remind you to be grateful. Find one you like, and print it out or make it your desktop wallpaper. Here’s a religious one, and here’s a collection from a multitude of religions. You can find many others on the Internet, or write your own. If you’re not religious, make one that doesn’t include the concept of God. A good one is below.
Be Thankful
Be thankful that you don’t already have everything you desire,
If you did, what would there be to look forward to?
Be thankful when you don’t know something
For it gives you the opportunity to learn.
Be thankful for the difficult times.
During those times you grow.
Be thankful for your limitations
Because they give you opportunities for improvement.
Be thankful for each new challenge
Because it will build your strength and character.
Be thankful for your mistakes
They will teach you valuable lessons.
Be thankful when you’re tired and weary
Because it means you’ve made a difference.
It is easy to be thankful for the good things.
A life of rich fulfillment comes to those who are
also thankful for the setbacks.
GRATITUDE can turn a negative into a positive.
Find a way to be thankful for your troubles
and they can become your blessings.
Tuesday, September 28, 2010
"Before you quit your Job"
Hi my friends,
Here in this book, I would like to share with you more about on "Entrepreneur".
Many people want to become entrepreneurs but always have some excuse for why they do not quit their job, excuses such as:
1." I don't have the money ".
2." I can't quit my job because I have kids to support ".
3 " I don't have any contacts".
4 " I'm not smart enough."
5 " I don't have time. I'm too busy."
6 " I can't find anyone who wants to help me."
7 " It takes too long to build business."
8 " I'm afraid. Building a business is too resky for me."
9 " I don't like dealing with employees."
10 " I'm too old."
These shows that for many people, the power of their excuse is more powerful than their dreams. The reason most people who want to become entrepreneurs remain employees is that they have some excuse that keeps them from quitting their job and taking that leap of faith.
Entrepreneurs Are different
1. When it comes to their Strategic Orientation:
PROMOTOR : Driven by perception of opportunity
TRUSTEE : driven by control of resources.
2. When it comes to Management Structure:
PROMOTER : Flat with multiple informal networks.
TRUSTEE : Formalized hierarchy with multiple tiers.
3. When it comes to Reward Philosophy:
PROMOTOR : Value Driven, performance-based, team-oriented.
TRUSTEE : Security driven, resource-based, job promotion-oriented.
An entrepreneur will grow the organization horizontally, which means "outsourcing" rather than bringing the work "in house".
An employee wants to grow the organization vertically, which means hiring more employees.
Many entrepreneurs will do their work even though there is no money.Many employees are passionate about their work only as long as there is a paysheck."
Competitive money is the type of money most people work for. They compete for jobs, promotions, pay raises, and against their business competition.
Cooperative money is achieved by networking instead of competing.
"Entreprenures learn to use other people's resources well."
Three part of Business :
One- is finding the right people.
Two- is finding the right opportunity.
Three- is finding the money.
The most important job of entrepreneur is to grab one piece and then begin to put the other two pieces together. That may take a week or it may take years, but if you have one piece, at least you've gotten started.In other words, enrepreneurs does not care if two out of three lights are red. In fact, an entrepreneur does not care if all three lights are red. Red lights do not prevent an entrepreneur from being an entrepreneur.
Most of us know that wages have not gone up for many workers. How can their wages go up when someone else is willing to work for so much less?
You may notice that some of the most famous CEOs are the lowest paid. Could it be because CEOs who are employees work for a paycheck and CEOs who are entrepreneurs work for some other kind of pay?
" The problem with studying for security is that the fear is always there, and if the fear is always there, then you rarely feel secure , so you buy more insurance and think of ways to protect yoursef. You always quietly worry, enen if you pretend you're succcessful and havenothing to worry about. The worst thing about living a life of security is that you often lead two lives- the life you live nad the unlived life you know you could be living. Those are some of the problems with studying for security. The biggest problem of all is that the fear is still there."
"Freedom Is More Important than Life"
Starting witht he right Mind-set
99% Failure Rate
Statistics show that 90% fo all new businesses fail within the first five years.
Statistics also show that 90% of the 10% that survive thw first five years, failbefore their tenth anniversary. In other words, approximately 99% of all start up businesses fail within ten years. Why? While the reasons are many the following are some of the more critical ones.
-Our schools train students to be employees who look for jobs rather than train entrepreneurs who create jobs and businesses
- The skills to be a good employee are not the same skills required to be a good entrepreneur.
-Many entrepreneurs fail to build a business. Instead they work building a job that they own. They become self-employed rather than business owners.
Many entrepreneurs work longer hours and are paid less per hour than their employees. Hence, many quit out of exhaustion.
-Many new entrepreneurs have a great product or service but don't have the business skills to build a successful business around that product or service.
"A poorly conceived business can fail whether it is intially successful or not"
"Hard work Covers Up Poor Design"
The problem is , if they stop working , the business breaks apart and sinks.
Just like that : "I'm so busy taking careof my business I don't have time to make more money."
So personally I would like to say that " We must learn , what entrepreneurs need to know to succeed. How to create , design, and build a business that grows with or without you and possibly makes you rich beyoud your wildest dreams.
What kind of business do you want to build?
Self-Employed Entrepreneurs
He have nothing against seif -employed entrepreneur, But he simply want us to know the difference between entrepreneurs who own business and those who own jobs.
Professionals and Tradespeople
He wanted us to know that many professional people such as doctors, lawyers, accountants, architects, plumbers, and electricians started a self-employed style of business based ona profession or a techinical trade.
The problem with this type of business is that there is not really a business to sell because there really isn't a business outside the individual owner. The business owner is the asset.
Network Marketing and Direct Sales
The network marketing and direct sales industry is recognized by many to be the fastest-growing business model in the world today. It is also the most controversial. Many people still have a negative reaction, claimimg that many network marketing organizations are pyramid schemes.
In reality , the biggest pyramid scheme in the world is the treditional big business corporation, with one person at the top and all the workes below.
People who want to be entrepreneur s should consider joining one of these businesses before they quit their jobs. Why? Many of these companies provide essential sales, business-building, leadership skills not found anywhere else. One of the most valuable benefits from associating with a reputable organization is that it teaches the mind-set as well as the courage required to become and entrepreneur.
Mr Robert T Kiyoski said, if he was starting his entrepreneurial career all over again , he would be started with a network marketing of direct sales business, not for money but for the real world business training he could receive, training similar to the type of training his rich dad had given him.
Characteristic of true entrepreneurs are creativity and the ability to accomplish things beyond their own resources.
" Today , we all need to invest for something for more important than simply to become rich.Today, how intelligently we invest will determine our furture financial security.
Mr Robert always say, Financial education creates wealth even with (especially with) a down economy...and it doesn't take money. Knowledge is the new money.
Here in this book, I would like to share with you more about on "Entrepreneur".
Many people want to become entrepreneurs but always have some excuse for why they do not quit their job, excuses such as:
1." I don't have the money ".
2." I can't quit my job because I have kids to support ".
3 " I don't have any contacts".
4 " I'm not smart enough."
5 " I don't have time. I'm too busy."
6 " I can't find anyone who wants to help me."
7 " It takes too long to build business."
8 " I'm afraid. Building a business is too resky for me."
9 " I don't like dealing with employees."
10 " I'm too old."
These shows that for many people, the power of their excuse is more powerful than their dreams. The reason most people who want to become entrepreneurs remain employees is that they have some excuse that keeps them from quitting their job and taking that leap of faith.
Entrepreneurs Are different
1. When it comes to their Strategic Orientation:
PROMOTOR : Driven by perception of opportunity
TRUSTEE : driven by control of resources.
2. When it comes to Management Structure:
PROMOTER : Flat with multiple informal networks.
TRUSTEE : Formalized hierarchy with multiple tiers.
3. When it comes to Reward Philosophy:
PROMOTOR : Value Driven, performance-based, team-oriented.
TRUSTEE : Security driven, resource-based, job promotion-oriented.
An entrepreneur will grow the organization horizontally, which means "outsourcing" rather than bringing the work "in house".
An employee wants to grow the organization vertically, which means hiring more employees.
Many entrepreneurs will do their work even though there is no money.Many employees are passionate about their work only as long as there is a paysheck."
Competitive money is the type of money most people work for. They compete for jobs, promotions, pay raises, and against their business competition.
Cooperative money is achieved by networking instead of competing.
"Entreprenures learn to use other people's resources well."
Three part of Business :
One- is finding the right people.
Two- is finding the right opportunity.
Three- is finding the money.
The most important job of entrepreneur is to grab one piece and then begin to put the other two pieces together. That may take a week or it may take years, but if you have one piece, at least you've gotten started.In other words, enrepreneurs does not care if two out of three lights are red. In fact, an entrepreneur does not care if all three lights are red. Red lights do not prevent an entrepreneur from being an entrepreneur.
Have you ever noticed that software, such as Microsoft's Windows, comes in versions such as Windows 2.0 and Windows 3.0? What that means is that they have improved their product and now want you to buy the better vision. In other words, the first product they sold you was not perfect. They may have sold it know it had flaws, bugs and needed to be improved.
you may not want to wait for a product to be perfect; it may never be perfect.It just has to be "good enough." It merely has to work well enough to be accepted in the marketplace.However , if the product is so flawed that it doesn't work for its intended purpose, or otherwise does not meet marketplace expections or causes problems, it can be very difficult to reestablish credibility and a reputation for quality.
If Microsoft had waited for Windows to be perfect, it still would not be in the marketplace.
The Philosophy of an entrepreneur
- From a desire for security to desire for freedom
-Form s desire for a steady paysheck to the desire for great wealth
-Form seeing value in dependence to seeing value in independence
-To make my own rules rather than obey someone else's rules
-A desire to give orders rather than take orders
-A willingness to be fully responsible rather than say, " it's nor my job"
-To determine the culture of a company rather than try to fit into someone else's company cluture
-To make a difference in this world rather than complain about the problems of the world
- To know how to find a problem and turn it into a business opportunity
-To choose to be an entrepreneur rather than an employee
No More High-Paying Jobs
Most of us know that wages have not gone up for many workers. How can their wages go up when someone else is willing to work for so much less?
You may notice that some of the most famous CEOs are the lowest paid. Could it be because CEOs who are employees work for a paycheck and CEOs who are entrepreneurs work for some other kind of pay?
" The problem with studying for security is that the fear is always there, and if the fear is always there, then you rarely feel secure , so you buy more insurance and think of ways to protect yoursef. You always quietly worry, enen if you pretend you're succcessful and havenothing to worry about. The worst thing about living a life of security is that you often lead two lives- the life you live nad the unlived life you know you could be living. Those are some of the problems with studying for security. The biggest problem of all is that the fear is still there."
"Freedom Is More Important than Life"
Starting witht he right Mind-set
99% Failure Rate
Statistics show that 90% fo all new businesses fail within the first five years.
Statistics also show that 90% of the 10% that survive thw first five years, failbefore their tenth anniversary. In other words, approximately 99% of all start up businesses fail within ten years. Why? While the reasons are many the following are some of the more critical ones.
-Our schools train students to be employees who look for jobs rather than train entrepreneurs who create jobs and businesses
- The skills to be a good employee are not the same skills required to be a good entrepreneur.
-Many entrepreneurs fail to build a business. Instead they work building a job that they own. They become self-employed rather than business owners.
Many entrepreneurs work longer hours and are paid less per hour than their employees. Hence, many quit out of exhaustion.
-Many new entrepreneurs have a great product or service but don't have the business skills to build a successful business around that product or service.
"A poorly conceived business can fail whether it is intially successful or not"
"Hard work Covers Up Poor Design"
The problem is , if they stop working , the business breaks apart and sinks.
Just like that : "I'm so busy taking careof my business I don't have time to make more money."
So personally I would like to say that " We must learn , what entrepreneurs need to know to succeed. How to create , design, and build a business that grows with or without you and possibly makes you rich beyoud your wildest dreams.
What kind of business do you want to build?
Self-Employed Entrepreneurs
He have nothing against seif -employed entrepreneur, But he simply want us to know the difference between entrepreneurs who own business and those who own jobs.
Professionals and Tradespeople
He wanted us to know that many professional people such as doctors, lawyers, accountants, architects, plumbers, and electricians started a self-employed style of business based ona profession or a techinical trade.
The problem with this type of business is that there is not really a business to sell because there really isn't a business outside the individual owner. The business owner is the asset.
Mom and Pop Operations
As an Example , my mom's mom owned a little convenience store that the family took turns working in.
The challenge for groth in a Mom and Pop operation is nepotism. Often children don't share the passion for the business that their parents had or they don't have the entrepreneur dive to lead the business.
Franchises
Franchises are the type of business that typically face legal issues and often end up in Court. These fights are some of the most vicious fights in the business world.
The main reason for fighting is that people who buy franchise business do not want to run it the way the franchisor, the person who created the business, wants them to run it.
Another reason is if the franchise does not do well finacially, the financially, the franchiseee wants to blame the franchisor for the lack of business success.
Network Marketing and Direct Sales
The network marketing and direct sales industry is recognized by many to be the fastest-growing business model in the world today. It is also the most controversial. Many people still have a negative reaction, claimimg that many network marketing organizations are pyramid schemes.
In reality , the biggest pyramid scheme in the world is the treditional big business corporation, with one person at the top and all the workes below.
People who want to be entrepreneur s should consider joining one of these businesses before they quit their jobs. Why? Many of these companies provide essential sales, business-building, leadership skills not found anywhere else. One of the most valuable benefits from associating with a reputable organization is that it teaches the mind-set as well as the courage required to become and entrepreneur.
Mr Robert T Kiyoski said, if he was starting his entrepreneurial career all over again , he would be started with a network marketing of direct sales business, not for money but for the real world business training he could receive, training similar to the type of training his rich dad had given him.
Creative Entrepreneurs : Like Thomas Edison, Walt Disney, or Steve Jobs.
Private Company : closely held company, owned by just a few owners, and ownership interests are not vailable to the public at large.
Public Company : sells shares of the business to the public at large, most often through stockbrokers and other licensed securoty dealers, sells its share on the stock exchange like the New York Stock Exchange and operates inder much more stringent rules than private companies.
"A successful business is created before there is a business"
The most important job of an entrepreneur is to design the business beofre there is a business.
All too often, people ask business advice from people who have business experience as an employee but not as an entrepreneur.
-You start by being sure that you have the right mind set-that you think an entrepreneur instead of an employee.
-You do your homework- study the market, your target customers, and the competition.
-You identify the skills needed for a successful business in that market, and assemble a team of coventurers and advisors that provide the skills you need.
-You identify some advantage over the competition and ways to distinguish yourself from them in the minds of potential customers.
-You put together a business plan mapping out your route to sucess.
Legal foundation
-You choose a form of legal entity for the business that provides the best limitation of liability and minimizes taxes (refer to Garrett Sutton's Rich Dad advisor book Own Your Own corporation, Warner Books).
-You abtain all necessary license and permits , making sure that clear and complete written agreements are in place to avoid any future misunderstandngs.
-You put the appropriate legal protection i place so that you can sustain your competitive advantage.
One advantage of a franchise business is that it has immediate credibility (with, for example, lenders) because th systems have already been tested and proven to work by the franchisor.
Create a Business or Create a Job?
Many lawyers or accountants become so successful that their clients only want to do business with them. The more successful thay become, the less time they have. they own a job not a business.
If you can leave your business for a year and come back and find it stronger and bigger, you have created a big business, the a B quadrant business.
What is your personal reason for starting a business?
1.Why do I want to own my own business?
2. How badly do I want to own my own business?
3. At what level of play do I want to play the game?
4. At what level of play am I willing to extend myself to play the game?
5. Am I willing spend the time to learn about other successful entrepreneurs anf their businesses?
6. Am I afraid to fail?
7. Can I turn my fear of failing into a strangth that will help me drive the business?
8. Can I learn from my mistakes?
9. Can I build a team, or do I like to work by myself?
10. Am I willing to pay the price?
11. Am I willing to put in the time now to be rewarded later?
12. Am I willing to delay financial rewards until the business successful, or do I need a paycheck?
As you are naswering these questions, if you are still determined to start a business, take it one step further and ask yourself the fillowing questions:
* What have been your greatest successes?
* What have been your greatest failures?
* How many times have you worked for free?
* Would youwork for this company even if you were not paid?
* Are your family and friends emotionally supportive of your efforts in this venture?
* Are you willing to educate yourself in all the areas of the B-I Triangle (essentional components of asuccessful business-to be discussed and reviewed throughout this book)?
Today I would like to share about poor people, "it's more than financial, it is poor attitude toward the value of education, training, and preparing oneself to have a skill people will pay for."
Especially among the young educated people, they thought education guarantee to get a job, it is wrong because what I know is education give us knowledge what to do and how to do whatever we want in life, it doesnot guarantee for job security or from government's support.
We have to use that knowledge to lead our life the way we wanted to be. I always explain about it to whoever I meet with, especially to my fellows, Myanmar citizens, so that they have courage to pursuit whatever they want or should, regardless of whatever political situitation or government. I do believe our future is in our hand not on others.
Please give up your unhealthy thoughts and start work for you, your family, your heighbourhood and untimately for your country. We have to change our attitute and mindset from bottom to top. See the world, globalization has taken place, we have to go along with the it.
I also would like to share something more than your salary, job or work, wherever we live or work in whatever countries, we should look at the way of their business management, business strategies, technologies, human resourse management, how they do business, what is their technology management, etc. One day we should apply these in our own business, in our country, build the infrastructure, create jobs for the peoples in Myanmar and all over the world.
So what we need to do?
We need to look for the company's business structure, business practice, know how, public relation, which will give you the financial freedom one day instead of looking for a job security more than your salary.
There are many ways to reach your dream, so don't be discouraged if you can't yet see the way on your own.
The key to moving forward, even in hard times, is to let your vision for your life be guided not by what you can see but by what you can imagine. That's called having faith.
When we consider the future of social security and medical care, how intelligently we invest today will untimately determine not only how well we live but also whether or not we can afford to"
Mr Robert always say, Financial education creates wealth even with (especially with) a down economy...and it doesn't take money. Knowledge is the new money.
Thursday, August 19, 2010
"Conspiracy of the Rich"
I personally would like you to pay attention is that :
Conspiracy of the Rich by Mr Robert T Kiyosaki.
This book brought to my attention that our current system of education comes from the Prussian system, a system designed to create good employees and soldier, people who blindly follow orders, waiting to be told what to do, including what to do with their money.
But we cannot deny is that our schools should receive a failing grade when it comes to financial education.
There are millions of people who have lost their retirement savings following the financial sales people.
When people are struggling financially, they arewilling to have the government save them, unwittingly exchanging their personal freedom for financial salvation.
Keeping people ignorant about money is evil because many people do evil things for money, such as work at a job they do not like, work is not theirs, and expect someone else- like their family or the government- to take care of them when they are capable of taking care of themselves.
We are now coming out of the biggest economis boom in history. The problem is that the boom was caused by debt, not money; by inflation, not production; by borrowing,not working. In many ways it was money for nothing- because money was nothing. As keynes would say, our money was debached. We looked rich, but society as we knew it ws collapsing.
Homes are not assets. You are the asset- or rather your ability to pay the interest on the loan is the asset.
To quote the old saying: if your neighbor lossess his job, we are in a recession. If I lose my job, we are in a depression.
On August 15, 1971, Presedent Nixon Signed an executive order stating that the United States would no longer redeem the dolllar for gold.
Banker are not much different than financial planner or real estate agent who reached out to shake your hand, saying, "How may I help you?" Most bankers ar simply doing a job, earning a living like the rest of the system of money creation that steals our wealth. The same system also makes some people very rich.
Paper money is national, but gold was international, accepted as money even behing enemy lines.
Since bankers made money from interest payments, payments in find, it was not long before bankers began making more loans for more money than they had in their vault.
This is where the bankers pull rabbits out of hats. For example, they might have had $1000 in gold, silver, and gems in their vault, but they could have $2000 in receiptw in circulation that could lay claim to that $1000 in valuables. In this example, they created a fractional reserve of 2 of 1- two dollars in receipt for every one dollar in gold, silver, and gems in their vault. The amount of money in the bak was only a fraction of the receipts in circulation. The bankers collected interest on monay they technically did not have.
If you and I did this, it would be considered fraud or counterfeiting- yet it is prefectly legal for banks to do.
In modern terms, economists would say, " The ecomomy grew because the money supply expanded."
Many of these banks went bust when they got greedy and began lending our much more fractional receipt mony than they had in gold, silver, and gems in their vaults, and they were unable to cover withdrawal requests.
Federal Deposit Insurance Corporation(FDIC) rewards bankers for taking greater and greater risks with depositers' money. And while the FDIC claims tha banks pay for their insurance, the truth is that FDIC does not have enought money to cover todays' losses- so the taxpayer will have to cover them, in the form of bailouts. The Banker get away with billions of dollars. The american citizens get stuck with the bill.
Today, we hear the word bailout over and over. In reality,not all banks are bailed out. Bailouts are only for the biggest banks.
If the bank made too many bad loans, the FDIC would simply close the bank, payoff the depositors, and we and our investors would lose the equity we put in to start the bank. A payout is often the remedy for small bankers with no political clout.
The FDIC takes over the troubled bank on Friday and reopens it on Monday as a branch of the bigger bank. Again, this is a sell-off, not a bailout.
"The reason so many financial advisors are called brokers is because they are often broker than you."
Many people are seeking a job security, but the people with the most security are in prison.
The more security you seek, the less freedom you have. I am looking for a financial freedom wherever I go and live.
Dear Friends,
As I've said, knowledge is the new money. Continue to educate yourself in money and investing. Increase your financial IQ. Also, study the CASHFLOW Quadrant and Understand what makes you poor : taxes, debt, inflaction, and retirement accounts.
Conspiracy of the Rich by Mr Robert T Kiyosaki.
This book brought to my attention that our current system of education comes from the Prussian system, a system designed to create good employees and soldier, people who blindly follow orders, waiting to be told what to do, including what to do with their money.
There are millions of people who have lost their retirement savings following the financial sales people.
When people are struggling financially, they arewilling to have the government save them, unwittingly exchanging their personal freedom for financial salvation.Keeping people ignorant about money is evil because many people do evil things for money, such as work at a job they do not like, work is not theirs, and expect someone else- like their family or the government- to take care of them when they are capable of taking care of themselves.
We are now coming out of the biggest economis boom in history. The problem is that the boom was caused by debt, not money; by inflation, not production; by borrowing,not working. In many ways it was money for nothing- because money was nothing. As keynes would say, our money was debached. We looked rich, but society as we knew it ws collapsing.
Homes are not assets. You are the asset- or rather your ability to pay the interest on the loan is the asset.
To quote the old saying: if your neighbor lossess his job, we are in a recession. If I lose my job, we are in a depression.
On August 15, 1971, Presedent Nixon Signed an executive order stating that the United States would no longer redeem the dolllar for gold.
Banker are not much different than financial planner or real estate agent who reached out to shake your hand, saying, "How may I help you?" Most bankers ar simply doing a job, earning a living like the rest of the system of money creation that steals our wealth. The same system also makes some people very rich.
Paper money is national, but gold was international, accepted as money even behing enemy lines.
Since bankers made money from interest payments, payments in find, it was not long before bankers began making more loans for more money than they had in their vault.
This is where the bankers pull rabbits out of hats. For example, they might have had $1000 in gold, silver, and gems in their vault, but they could have $2000 in receiptw in circulation that could lay claim to that $1000 in valuables. In this example, they created a fractional reserve of 2 of 1- two dollars in receipt for every one dollar in gold, silver, and gems in their vault. The amount of money in the bak was only a fraction of the receipts in circulation. The bankers collected interest on monay they technically did not have.
If you and I did this, it would be considered fraud or counterfeiting- yet it is prefectly legal for banks to do.
In modern terms, economists would say, " The ecomomy grew because the money supply expanded."
Many of these banks went bust when they got greedy and began lending our much more fractional receipt mony than they had in gold, silver, and gems in their vaults, and they were unable to cover withdrawal requests.
Federal Deposit Insurance Corporation(FDIC) rewards bankers for taking greater and greater risks with depositers' money. And while the FDIC claims tha banks pay for their insurance, the truth is that FDIC does not have enought money to cover todays' losses- so the taxpayer will have to cover them, in the form of bailouts. The Banker get away with billions of dollars. The american citizens get stuck with the bill.
Today, we hear the word bailout over and over. In reality,not all banks are bailed out. Bailouts are only for the biggest banks.
If the bank made too many bad loans, the FDIC would simply close the bank, payoff the depositors, and we and our investors would lose the equity we put in to start the bank. A payout is often the remedy for small bankers with no political clout.
The FDIC takes over the troubled bank on Friday and reopens it on Monday as a branch of the bigger bank. Again, this is a sell-off, not a bailout.
Actually, I believe we leverage our children's future to pay for our mistakes today. Technically, prior to 1971, the U.S. dollar was a derivative of gold. After 1971, the U.S. dollar became a derivative of debt. Severing the dollar from gold was bank robbery fo in godly propotions.
The reason quasi-insurance companies used the word swap rather than insurance is because a company required to have money behind the insurance policy. Swaps have no money backing them, which is a major reason why companies such as AIG creshed when the mortgage market crashed. It would be like finding out the insurance company that insured your car is broke- after you have an accident.
Eveything was fine until the subprime borrowers could not make their monthly payments, and the house of debt began to crumble in 2005. This financial mess stems from the Federal Reserve System granting banks the power to lend money they do not have, via the fractional reserve banking system.
In 1903, the Wright Brothers flew the very fast sustained airplain flight. In 1969, we put the first man on the moon. And now today, we have space shuttles that travel 17,320 miles per hour and that will soon be capable of flying to Mars.
Dr. Buckminster Fuller once said that when change went invisible, the speed of that change would increae exponentially- a concept he termed in an article "Accelerating acceleration".
Technology, and how that technology affects business, is changing at such a rapid it is nearly impossible to keep up.
Millions of people are unemployed because their skill set is no longer needed.
Traders are very short-term investors. The traders are in and out of markets, often ripping into the profits of the investors saving for a safe retirement or their kid's college education. Rather than use the words long term, a sophisticated investor would use the world exit strategy. A smart investor knows it's not about how long you hold on to an investment. It's about how you plan to increase your wealth with that investment over a stated period of time.
A mutual fund is like a multiple vitamin. Buying three mutual funds is like taking three multiple vitamins. You may take three different pills, but in the end you are taking many of the same vitamins-and possibly even overdosing on those vitamins!
Most financial Planners can only sell paper assets such as mutual funds, annuities, bonds and insurance. They will sell you what they are allowed to sell, not necessarily what we need, and that is not diversification.
They can sell you more paper assets, and because it spreads their risk in case they are wrong. Often, they don't have your best interests at heart.
Please remember to ask ourself " How can I afford it?" or " How can I do it?" I finally realized my life a sum total of my words.
Prior 1971,the dollar was a derivative of gold. After 1971, the dollar became a derivative of debt, an IOU known as U.S. bonds and T-bills, backed by the promise of the U.S. taxpayer to pay the bills.
Money is knowledge. That knowledgeis begin with the power of words. Words allow you to speak the language of the conspiracy, and speaking th esame language allows you to tap into the power of the conspiracy without being a pawn, slave or victim of the cinspiracy. By speaking the language, you can play your own game, and the name of the game is cash flow.
I believe that " A job is really a short-term solution to a long-term problem."
" The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets."
"The reason so many financial advisors are called brokers is because they are often broker than you."
Many people are seeking a job security, but the people with the most security are in prison.
The more security you seek, the less freedom you have. I am looking for a financial freedom wherever I go and live.
E stands for employee
S stands for small business or specialist, such as a doctor or lawyer.
B stands for big business (over 500 employees).
I stands for investor.
"Wall street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway."
It is important for you to figure out what your mission is nd to write it down and revisit it often.
Our success depends upon the quality of our team.
One way to be a great leader is to keep learning and keep accepting feedback from your dream.Accepting feedback is essential to being a leader.
Success come with understanding the rules and working as efficienctly as possible in accordance with those rules- which is why smart to have a good lawyer on your team!
If you want to improve your communications with money, begin by learning the words of money.
"Cash Flow" -is Bottom line. Learn to control cash flow.
If we want to protect our life, home, and family from the big bad wolves of the B and I quadrant, you need to build your own B-I tringle. Put our own team of eight integrities together.
Every credit card in our wallet is attached to a major B and I quadrant business. B and I corporations that contribute billions of dollars to political elections. You have one vote, but they have millions of dollars to influence votes.
The doctors in the E and S quadrants have very little power over the B's and I's of the world of Pharmaceuticals and insurance. It is the powerful teachers unions that dominte the world of education. Unions are about money and benifits for teachers, not for education of kids.
Money is knowledge. That knowledge begins with the power of words.Words allow you to speak the language of the conspiracy. By speaking the language, you can play own game, the name of the game is cash flow.
A mortgage reset occurs when a mortgage comes due and the banker resets the interest the interest rate to the prevailing market rate, which often results in a higher interest rate for the buyer and means a higher loan payment.
Foe example, let's say a subprime couple buys a $300,000 house they cannot afford. To lure the couple in, the bank offers them a $330,000 loan, financinf for 110 percent of the home's value, at a ridiculous teaser rate of 2 percent. Sometime later, the loan resets to a higher interest rate of 5 percent, and then still later at 7 percent. With each reset, the monthly mortgage payment becomes more expensive, and soon the couple defaults, the mortgage is foreclosed, and the couple loses their house. In recernt cases, the house has probably fallen in value, as much as 50 percent of the mortgage amount. So in this example, the house might now be worth only $150,000, but still have a loan of $330,000. The bank has to write down losses of $18,000, causing havoc in the banking sector and major losses for sharehoiders as more and more foreclosers stack up.
When subprime borrowers couldn't pay their mortgages any longer, the expansion of debt stopped and the debt market collapsed, which led to our massive financial crisis today.
Prepare for bad times and you will only know good times.
"The higher the return, the higher risks." That is absolutely not true- if you have a solid financial education. I always look to achieve infinite returns with my investments.
The way you print your own money is by achieving an infinite return on your money.
"International super-currency" use in Russia, have no value. They are just government-manipulated frauds designed to steal money form your pocket via inflation. In mu poinion, gold and silver are still better assets to hold than any currency.
When we have excess amounts of cash flow,we should hold it in gold and silver because gold and silver can be used as hedge against uncertain monetary policy like Fed's printing of trillions of dollars rather than watching those those dollars fall in value as inflaction rages, I hold my excess money in gold and silver and watch their prices rise with inflaction.
Get financially educated. The best way to learn is through practice or simulation. Money doesn't make you rich; your knowledge does.
Life insurance policies- Inflaction makes your policy worth less and less every year. Also financial planners push these investment because they make money off of them, not because they are necessarily good for you. That being said , whole life insurance policies are good for people who are not able to save and for those who have very little financial education and do not know how to invest successfully.
Dear Friends,
As I've said, knowledge is the new money. Continue to educate yourself in money and investing. Increase your financial IQ. Also, study the CASHFLOW Quadrant and Understand what makes you poor : taxes, debt, inflaction, and retirement accounts.
Train yourself to think on the B and I side of the quadrant, and learn how to minimize your losses in taxes, debt, inflaction, and retirement accounts.
By shifting your knowledge to the B and I side of the CASHFLOW Quadrant you can learn to make millions without paying taxes, make your money with other people's money, and find assets that increase in value with inflaction and provide passive income for your retirement. There is no magic formula bullet, just hard work and education.
Thank you for your reading and think for your life.
With Love
Rich Son
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