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."
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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.
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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.
