Business and Investment is a Team Sports

In school, we been taught to take exam as individual. If we try to cooperate during examination, that will be cheating. That individualism system taught by current education system has greatly hindered most of our generation people to success in business and investment. People mind is mold to operate in individual in undertaking any task. They perceive cooperation as cheating. They worship individualism and competition. They afraid of sharing information, asking for help or undertaking any manners that might make them look like a "stupid person". The school system has deliver a deadly message to most of the students as if you showing that you don't know, then you are stupid. Taking exam by individual might work in school, but in the real world, real business people cooperate like hell in order to win. In business and investment, there are so many important elements involved such as cash flow, communications, legal, system and product/services. Non of us are expert in all those area. Therefore we need a team, a team that make of people come from various areas of expertise to fill in the slot of business and investments elements mentioned above. The idea is simple, yet, most of us just can't fit that simple idea into our daily life.

One of the best quote I love about professional football coaches is :"regardless you are Roberto Baggio or Eusebio, you can't beat the game against 11 players by your own, It is impossible!". The quote has simply reflected that it take a team to win regardless how capable you are.

Find out the Why before the How

Often when we about to do something, the first Question we ask:"How?". Yet, if even we find the hows, not very often we manage to get the thing done, especially come to the question of becoming rich.

There are many ways of becoming rich - the Hows. You can become rich by marrying a rich husband or wife. You can become rich by becoming a crook. You can become rich by becoming cheap. You even can become rich by wining lottery. There are so many how to the answers, but why there isn't many rich person around us? For me, it is the "why" that inspire, motivate, energize people. Most of people could not become rich regardless of knowing how, is because they do not have the strong "Why".

The why give you passion. Passion is the combination of hate and love. Knowing the why, is like knowing why you love what you want, and hate why you do not have what you want. It is like the old saying, "if there is a will, there is a way!" . The Why will lead you there.

Your Report Card after Leave School

In school, we had our own report card. We check on our report card on quarterly basis to monitor how is our academic performance. If we see there are some weaknesses on certain subjects, we be able to rectify it before it is too late.

However, when most of us are graduated from school, we do not have our report card to check on how well we are doing in the society, the quo real world. The academic report card is not useful anymore after you leave school, report cards such as your medical check up, health check up, marriage status, emotional condition and so on. One of the most important report card in our life is our personal financial statement. The financial statement is the report card for us in this modern civilization world to justify how well we are performing in our life. Ask any banker, they will not ask you for your academic report card on how many As you get. They would not say :"oh, you got good grade, let me lend you a million dollar!". Instead, they will ask for your up to dated, industrial standard financial statements. They will ask for the financial statement regardless who you are, where your from, poor or rich. Why is that? It is because the financial statement is your report card after you leave school. why? Because, it is the only way to track, monitor, and justify how well you are doing financially.

So, ask yourself, how you be able to know where are you now financially, without a up to date financial statement? The answer is obviously, you can't. It is the same concept of going for medical check up. The doctor will take a blood sample, check your blood pressure, your urine and so on. Then you only be able to come out with a report. And you be only able to know how is your health condition from the report. So, in order to get rich, wealthy, we need to have our on personal up to date financial statement. From that financial statement, only then we be able to track, monitor, rectify if necessary to archive our financial goal. It is the report card after leave school that is so important to everyone in order to success!

Think Like a Dog - Success in Business

Human has a complex structure of brain. Human brain is made of complex layer from cortex, to sophisticated limbic system and neuron system. It help human to be able to think beyond other living organism we known. It help human to think more complex. Yet, when it come to business investment, human way of thinking make human more incline to fear, disappointment and escape. Often, people are so fear of losing their money, and fall prey to their own emotional error system of over analysis - analysis paralysis, thus they never do something. Some people did it once, fail and make those negative experience hold them back to try again. "Fail" is a verb, not a noun, yet most people make it as a noun, and it they become failure.

Dogs, on the other hand, is a simple creature made of simple construction brain. their brain is much smaller. Thus, they become more focus, optimistic and resilience when come to failing. If you has or had a dog, you know dog never demotivated by failure. They are focus, and only focusing on achieving anything they tend to archive. When you throw a Frisbee or a tennis ball to dog to catch it, no matter how many times they fails, they will come back to you again, with the same energy asking you to do it again. They are focusing on wining. They do not trap in how many times they unable to catch the Frisbee or tennis ball, they only remember the pass experience of joys of success. They response simplicity in term of pain, pleasure, love and respect. They fell down, get hurt, pain and displeasure, seconds later, they come back with strong, enthusiastic, full blown energy in front of their master. They are in some way surpass the emotional strength of human. They are focusing on winning and how to win again and again. Losing is hardly inside their dictionary. The concept is applicable to business, sales and marketing. If we can think like a dogs, we able to handle the emotional fear of losing, failing rejection and objection. We will be able to more focusing on how to win. When we are focus on both emotional and rational mindset, winning is just a matter of time.

Sales

Sales is number one skill for every entrepreneur. Statistic shown 9 out of 10 businesses failed at the first 5 years mainly is due to the business owner could not sales. Sales isn't about the closing the deal, promotions, prices, numbers, services or product. Sales is basically about knowing how to overcome the fear of objections, rejections, and criticism. We all sales, regardless we like it or not. In everyday life, when we talk our friends, parents, colleges, bosses, and even strangest, if you are either pursuing, arguing, demanding, promoting, presenting, teasing, mocking, teaching, questioning or asking, you are in these context of doing sales. When you ask for your mum for pocket money for some reason, you are selling. When you asking your lecturer to give you "A", you are selling. When you demanding to your boss for promotion or increment, you are selling. We all are selling in everyday life, it is part of everyone life. But, only few of us able to take this gifted nature talent to make themselves rich. Sales is your right brain, your emotional strength. It is about the capacity of you to handle critics. The more you able to overcome your negative emotions, fear of critics, the fear of being different, the new world will appear to you. A world that few of us could see. The world of entrepreneur, the world of for everyone to win, the world of earning your freedom - the world of rich!

Dairy Farmer and Cattle Rancher

In agriculture industry, you are either deal with plantation or cattle. When come to cattle, basically, we can think of 2 person, the Cattle rancher and the Dairy Farmer. Their both greatest assets are same - the cattle, but they treat their cattle very differently. The cattle rancher will feed their cattle, make them fat enough and send to the slaughter house. The dairy farmer will feed their cattle, nurture them, and send for milking. Instead of one time harvest, selling off the meat, and start over to raise a new cattle, the dairy farmer make their cattle provide them milk as long as the cattle live. The milk provide steady cashflow to the farmer, the meats provide capital gain to the farmer.

It is the same come to investing. People who invest for capital gain, such as stock, options, futures and derivatives are similar to the cattle rancher. They are like holding a bucket of water. Once the water is full, they consume it and there will be no more. If there is a hole under the bucket, their bucket will never fill with water. However, people who invest for cash flow, they are like the dairy farmer. Instead of holding a bucket of water, they are in building a pipe line. They built the pipe so that the cash can flow. They are also continuously expanding the diameter of the pipe line, so that the cash can flow even faster. If there is a leak on the pipe line, they got the time to plug the leak, while only the speed of the flow is affected. Once the pipeline is constructed, there will be no strap of cash or no cash!

It is very important for investor to know what they are investing for. It is for capital gain or cashflow? If i would investing in cashflow, i do not really care about the price, I will pay the price and show me the cash now!

Become a Big Fish in an Aquarium or Become a Small Fish in the Ocean

Fish that live in the sea, river, lake and your home aquarium are different. Fish live in the aquarium behave differently from fish that live in the lake, the river and the ocean. The fishes that live in aquarium are more passive, weaker and less survival capability compare those which live in the river or sea, even the fish itself come from same family, species and physical aspects. For example, for certain same species of fish, they eat their own eggs for those live in the river, but never happen to those live in the ocean. For physical aspects, fishes in which live in the ocean has stronger defensive system compare for the same size, same species of those live in the river. Fishes that live in the river could not survive in the ocean but this theory does not apply to the all counter part of fishes living in the ocean. Ocean fish has stronger adaptability as because of the ocean environment itself are more competitive, more dangerous compare to its counterpart of river, lake or your home aquarium. Yet, the ocean is much wider and bigger. It is an environment of abundance. It can provide more than enough to every living creatures. But, the river, the lake and the aquarium in your house, the resources for the fish to survive is limited. The lake depends on the rains. The 4 seasons river dry when drought is hit. The aquarium need to be rely on the owners. This mean, the ocean is abundance and independence. The river, lake and aquarium is dependence and limited in resources. Fishes living in the river, lake and aquarium is basically living in the mercy of external factors rather than own survival skills. That's why, fishes living other than ocean, sometimes so desperate to survive, they need to be cannibalism.

The concept apply to businesses and investments world. Some investor would like to stay big in small town, and some investor like to start small in big cities. The small town businesses owner or investors will live in the environment of resources limited. They need to adopt the concept of killing other in order to win as the resources are limited. They so afraid of some day some bigger player will come and wipe them out. They though they in control but basically they out of control. These "big fishes in the aquarium" so afraid of strangest or new players to come to the town. We can see these economy pattern in the small towns, whereby, often the lands, the shops, the farms is belongs to one family business.

On the counter part, some investors (like me^^) would like to start as small fish in the big wild ocean. The ocean itself is abundances. It is create for everyone to win. Businesses owners and investors from big ocean, regardless big or small behave so differently. They welcome new comers as long it is a good deal. The mindset of to be independence-dependence. They know they just need to be more skills, more educated, well-equipped in order to win. It does not take to be a killers or take a loser to make a winner. It just need to be more financially educated. And by knowing "how-to", even start as a small fish, in big ocean, everyone has the chances to win, and win big. Once you able to win in the ocean, you able to win in any kind of situation, circumstances and environment. The true investor will rather be a small fish in the big ocean rather than a big old fish in a small aquarium. Still, the bottom line, the choice is up to you!

*Thanks to my friend again, Mr. Zaidi Abdul Karim for his insight about Fishes.

What is Money?

Money is just an idea. Anything you think of money is true for you. If you think to get money, you need to find a high paid secure job, then that idea will be true to you. If you think, to be rich, it take to be an entrepreneur, that will be also true. So, to be rich, all you need to do is by changing your idea, your thought and your opinion about money.

To understand about money, we need to look back to the history of money. In the early time, money is commodities, i.e. cartels, eggs, seeds. It is called the system barter. People trade to each other by commodities. Farmer will trade a kilo of vegetable to 10 eggs. However, the system does not has a guide line on the exchange to ensure fair trade. And it will be difficult to carry or keep the commodities as such form. Then, shell, gold and silver come into replacement. People started to use precious metals as medium of exchange. People will start carry gold and silver for trading. However, as the these trader started to travel far let said, from Egypt to Italy or France to trade, they are so afraid the gold from being rope.So, these people will store their gold and silver in the safer place let said Egypt and carry piece of paper that represent the gold and silver in storage. People then can carry these piece of paper (receipt of gold & silver in storage) from Egypt to Italy or France to buy goods they want. People who carry these of paper then can go to Egypt to claim the golds and silver.

The paper money continue to be backed the hard assets - golds. Until 1971, new currency system is introduced - fiat currency. In fiat currency, the paper money is not longer backed by hard assets such as gold. In fiat currency, the paper money is back by the government, the IOU . the debt. The fiat currency is a debt back the tax payer from a government. If the government is strong in term of politic, social and economy, the currency is strong. In fiat currency system, the government can print as much money as they want. People need to get themselves into debt to sustain the economy. If people do not get into debt, economy cannot growth. If the people cannot take anymore debt, the economy will contract.

The problem raise when the economy is contract. The Government will do something. The government will give cheap credit by lowering the interest rate and pouring money into the market by simply minting more.This will deplete the value of the currency, or shall we call the inflation. The consequences, the more you save, the more you lose. In today economy, trillion of paper money is printed to support the downsizing of economy. Think about the long term effect of that, will your paper money really worth what you had perceived yesterday? I leave that answer to you.

An Unfair Advantages from Robert Kiyosaki

Assets Protection: Don't Put all the Eggs in the Same Basket

Would you drive a car without insurance? Would you buy a home without insurance? Then why would you buy insurance for your investment? Well, most of us never know that, we can buy insurance for investment. It is one of the key point that distinguish professional investor and average investor. In technical term, insurance for investment is called "covered". Often when we heard investor saying that their position is covered mean they have insurance of their investment against the up and down of the market.

There are basically 2 types of insurance: the one we can buy like for a house, and the one that we need to learn. The insurance that we need to learn can be best explained by the old saying of "do not put all your eggs in the same basket", metaphorically means, assets segregation is essential in our current litigious world.

Entities such as limited liability company (LLC), limited partnership (LP), C-Corporation, S-Corporation are good to be used for assets protection. By owning your assets, let's said your 4-plex, under these entity, you are in this context segregating your asset. To best illustrate the concept, let's us take a look at the following example:

1. If you owned all your assets under your own name, when come to the case of one of your rental property stair case broke down and your tenant had injured, he or she will sue you. In the event of he or she succeed the court case, he or she can claims not just the rental property but your other personal belongings. It is like you are holding all your egg in the same basket, in the event of the basket drop down or has a hole on the bottom, all your eggs are gone!
2. If you owned your assets under different entities, you are making a firewall against any predatory law suit to your personal belongings. The entity will limit your liability to the extend of assets under the entity when come to any court case. The plaintiff does not has the claims access to your other assets at other entities considering the case 1. It means, worst to worst case, you only lose what is under the entity which is being sued. It is like each egg is putting different basket, if one basket is lemon, other egg and basket is not affected.

The bottom line is, that owned nothing under your name, but by legal entity. It is what the riches do, owned nothing but control everything!

Different Class of Investment

There are several type of investment available to investor at the market. Every investor has their own unique niches when come to investment. Some like to play stocks, options and futures. Some like invest in property. Some like invest in business. Different class of investment, require different set of knowledge. Basically there are 3 main categories of investment class: Paper assets, Real Estate and Businesses. To best illustrate the differences of each investment class, I would like to suggest as follow:

1. Paper assets (stocks, mutual fund, unit trust, options and futures): Investing in paper stocks is like go out and dating a girl. If you 2 won't get along, you two will shake hand, good night and never meet again.
2. Real Estate: Investing in Real Estate is like getting married. First, probably you be looking for as much "girls" to date for. And come to the final choice, you be sitting down to have a big signing ceremony of engagement. Well, if the marriage don't get well, getting divorce will be a tedious job to do.
3. Businesses: If investing in Real Estate is like getting married, then investing in business is like getting married with a kid. Your kid can be your biggest liability or assets depend on how you raise and teach. It is the most rewarding among the 3 classes yet the most difficult to deal with.

So choose the asset(s) class that suit you. Well, be fore warn, before getting into any investment, we should invest in ourself first - to be financially literate and smart!

Becoming a Better Investor - The Art of Fishing

Japanese love to fishing. It is part of their social culture. When the Japanese fishing, they always want to catch the big fish. And to catch the big fish, you need the small fish to be bait. But, the interesting about these Japanese is, they didn't buy the small fish from the market. Instead, they buy the small shrimps. I wonder how they able to catch the big fish by those small shrimps, knowing the big fish do not eat the bait. The trick is, they use the small shrimp to catch the small fish, and by then using the small fish to catch the big fish. If you think the way they doing such way is because they want to save money by direct buying small fish from the market, then you are wrong. The main reasons for them to doing this are:

1. The small shrimp are indeed cheaper, yet by using small shrimp to catch the small fish, it horn the fishing skill - you can't catch the small fish, what make you think you can catch the big one. It is more economic by using the cheap shrimp to train how to fish rather than using the expensive small fish.
2. The big fish are smart, the Japanese know they like to eat live fish rather than the dead one. By using the small shrimp to catch the small fish, the Japanese got the live small fish as bait for the big fish. The chances for the big fish to eat the bait greatly increase.

The Japanese know, in the art of fishing, it is not about the bait, or the tools, or the location that destine the outcome. It is the "know how" and "How do". The Japanese is focusing on how to become a better fisher than the fishes.

It apply to the point that I been emphasize: " The sophisticated Investor is focusing on becoming a better investor rather than what investment he or she want to invest in."

*Thanks to my friend Mr. Zaidi Abdul Karim for his knowledge about Japanese fishing

Building Your Keel before Erect Your ship

I am hull structure engineer for shipbuilding. I find it interesting to explain the financial aspects by related to engineering approach.

In ship construction, the most important part is keel. It is the back bone to the ship. The stronger the keel, the bigger the ship can be erected.

Same apply to financial intelligent. Most of people are easily fall into the trap of what investment you should invest rather than what kind of investor they want to become. When come to a bad deal, people tend to blame the investment. But, the truth is, you as the investor is the one who choose the investment. Regardless what you are invested in, if you are a good investor, the deal will work. Contra to that, if the investor him or herself is not competences, the deal will not work.

By hastily choose a investment portfolio to invest in without doing your home work, is like erect a ship without the keel. Imagine, if a ship is built so big, but without a strong keel support, the ship will failed. And it will failed hard. It is why, there are some armature investors who purchase a good well run real estate, but run it to foreclosure. Like the it is said: " an idiot is an idiot regardless what he or she invested in."

By building a strong keel, or metaphorically mean building up your financial literacy, is the key of the success in business world. The ship might failed, but the keel will not, which you can erect a new ship again even though you failed. The true investors focusing on how to become a better investor, the average investor only focusing on money. It is the "how-do" that make the different. Ask yourself if you lost everything you owned today, can you or do you has the confidence to make it back in shortest time? Do you has the "how-do" answer? During early 1900s, when Henry Ford was a Millionaire, people ask him if all his wealth is taken away, his reply was:" no problem, I'll make it back in less than 5 years!" - That's is the power of know "how-do". The power of building your strong keel before erected your ship!

*Acknowledgement for Friend of mine Mr. Zaidi Adbul Karim of his explanation of Shipbuilding

Tom Wheelright - Richdad Advisor talk about Taxes

Taxes

Taxes is the single largest expenses for everyone in the modern civilization. You are taxed when you work, spend and even die. Taxes are different when you are in different quadrant. When you are a employee, you have no choice. The government will make sure they get their share before you do. The higher you earned, the more you been taxes. That's why earned income is consider bad income for the rich. But, if you are running a business, you have more control in term of taxes. You will have more deductibles.

The major different between business and employee is that, for employee, the first column of your expenses is taxes, but for businesses, the last column of the expenses is taxes. It simply mean, if you are business person, you can spend, invest and then only taxed on the remaining - the net profit. The employees are taxed at the gross income which is the highest tax bracket in all type income.

So, by understand the rule of taxes and consult your competences tax advisor, you be able to move yourself to the quadrant that government is giving you incentive in term of taxes - business, real estate. Once you able to take control of taxes, you wealth will increase!

Accounting

Accounting is very important n business and investing. Accounting isn't just about credit, debit, addition, subtraction, multiplication and division. Most of people learn about accounting at school, but failed to understand the essence of the subject. Most people concentrate only on the formal format of accounting and the numbers. The numbers itself is not important, but the vocabulary, the story behind the numbers that is count.

Generally, accounting consist of 4 column: Income, Expenses, Asset and Liabilities. The fundamental of accounting is the accountability. For instance, how to define assets or liabilities? It is hard to know whether a house or a car or a Rolex watch is an asset or liability when we do not see from the perspective of income and expenses. Well, the bank will list those stuffs i mentioned in assets column, but it is your asset or the bank asset. This is why we need to see the accountability of accounting format as a whole. The key point is the cash flow. Where is the cash flowing? It is flowing in and out of the expenses column or flowing in to the income column. Rule of thumb, when the cash flow in, it is a asset, and when it flow out, it is the liability. For example, a house or your home, if it make you pay the bill, the taxes, the amortization every months (Cash flow out) it is a liability. But , for the same house, if you rent it out, and generate positive cash flow after expenses, it is a asset. This the key, why most people are poor. Because they mis-understood the concepts of accounting. They bought the stuff they thought is an asset but in truth is a liability. They spend to make them poorer, but the rich spend to make them richer.

Economic

I love world history. The more I study about world history, the more i realize, the world history is about study of economic.

On early century of human civilization, everyone is a entrepreneur. People able to survive by starting own small businesses and trading. There are no factory, no big corporation that provided jobs. No one own the land but the king and baron.

Not until 1492, the story of great explorers begun. Ferdinand Magallen, Cortez, Christopher Columbus, they sailed out to ocean blue of Atlantic ocean and found America. But the fact is, they are not out looking for new land for prosper with, they are out to search for new faster trait route to far east - a new economy to prosper with. However, the because of America is founded, the world has changed dramatically, the industrial age is started.

Ferdinand Magellan
Born	1480 Sabrosa, Portugal
Died	April 27, 1521 (aged 40–41) Cebu, Philippines
Other names	pt: Fernão de Magalhães es: Fernando de Magallanes
Known for	Captained the firstcircumnavigation expedition.
Signature

Industrial age begin. It is the age of creativity. Steam machine is introduced. The productivity has increased significantly. Small business is wipe out by machine. No one wiling to risk their venture in small business to compete with the giant corporation. Employment culture emerged.

The golden age of industrialization continue growth over 400 years. On 1905, Henry Ford had made Ford - the peak of industrial age. Continue by more and more large company is established during 20 century such as General Electric by Thomas Edison. Then, on 1939, war world 2 explode and end on 1945. The rise of cold war age. During the cold war, the weight of your warhead that counted, how much payload it can generate. The world is controlled by 2 super power, living in fear of nuclear war - The world War 3.

Henry Ford
Henry Ford, c. 1919
Born	July 30, 1863 Greenfield Township, Dearborn, Michigan, U.S.
Died	April 7, 1947 (aged 83) Fair Lane, Dearborn, Michigan, U.S.
Occupation	Business, Engineering
Net worth	▲$188.1 billion, based on information from Forbes – February 2008.
Religion	Protestant Episcopal
Spouse(s)	Clara Jane Bryant
Children	Edsel Ford
Parents	William Ford and Mary Ford
Signature

Not until 1989, 500 years after Columbus sail out to America, the tumble of Berlin wall, it a mark of the end of industrial age & cold war, and the "world wide web" went up - the Information age. During the industrial age, big is better, but during information age invisible is best. During the information age, the warhead and payload is not counted, what counted is the speed of your modem. During the cold war, the world is controlled by 2 super power. During the information age, no one is in charged. The world become smaller. Money can move in the speed of light. It means, today you might be the tip of the pinnacle, but tomorrow, your business might be wipe out of you are not in "speed".

Today, we see billionaires in their twenties such as the founder of Google.,inc Sergey Brin; founder of Facebook, Mark Zukerberg and many more. Their empire is not the skyscraper but in the virtual world created invisibly to our eye with the speed of modem and information.

Mark Zuckerberg
Mark Zuckerberg in Paris in 2008
Born	Mark Elliot Zuckerberg May 14, 1984 (age 25) White Plains, New York, USA
Occupation	Co-founder, CEO & President ofFacebook
Net worth	US$4 billion (2010)[1]
Religion	Atheist[2]

By study the history of the economic, we aware of changes. And by understanding the nature of the economy, we be able to prepare ourself to think and act to prosper. Many of us are still in the industrial age idea, which will cost them lifetime and left behind by those who evolve and change.

5 Pillars of Financial Literacy

Every building require a strong foundation. The foundation is the core support to the building to be erected. The higher the building to be erected, the stronger the core pillars is required. Here are the 5 main core pillars:

1. Economic Study
2. Accounting
3. Taxes
4. Investment Planing
5. B-I Triangle - Structure of Business

Entrepreneur Must Know Skill: Sales

Sale is isn't about how much you can sell. It basically is a art of your capacity to handle rejections, objections and noes. The key of winning in sale is to fail. The faster you fail, the faster pace you horn your sale skill. 99% of business failed in 10 years, mainly is because the entrepreneur do not know how to sale.

Here are the effective platform to building up your sale skill:

1. Corporate Company that provide professional sale training program - ie Xeror
2. Charities and non profit organization to help raise fund
3. Multi level marketing - Network marketing

How to Raise Capital: Entrepreneurship No.#1 Skill

Raising Capital is a learned skill, it is essential skill for an entrepreneur. Often when we heard about people said it need money to money, it is not true. The following video will reveal the secret of it take no money to make money!

The Cone of Learning

In school we been taught by reading and lecturing. In the Cone of learning, developed by Edgar Dale, 1946, its explained the worst way of learning is through reading and lecturing. Edgar advocate that simulation is a much effective way of learning since we be able to try and error multiple time in action.

How to Raise Capital: It is not a Gender Thing

10 Tips from the Rich to be Rich

Often we heard people talk about the virtue to be rich by poor people. How those people who are not himself rich be able to advice other to be rich? That's is why friends are important. Often wise man said, if you want to see your future, just look at the 6 closest person you hanging out with. Are there rich or middle class or poor. So, if you want to be rich, listen to the rich who been there, done it and successful.

Here the 10 Tips from the rich (Richdad Robert Kiyosaki):

1. Decide yourself to be rich
2. Set a goal
3. Seek competence advise
4. Find a partner to go along the path
5. Talk about money and enjoy it
6. Become both a gambler and banker
7. Seek mentor ship
8. Change your words and meet new Friends (Perhaps the rich and successful one)
9. Look at a deal a day
10. Set a retire date

Today School Don't Teach Financial Literacy - Part 2

School Today Don't Teach Financial Literacy

*Part 1...

10 Controls of Entrepreneurship

Control mean, you can decide on yourself to act upon it. It is important for especially entrepreneur to learn the important of control. Control is one of the primary factor that dictate the final outcome of every business and investment venture.

Today, we heard about investor who invest in mutual fund and diversify. They are handing out control to stranger who do not really care about the investor money, but instead just to make sure they get their commission. I personally do not invested in mutual fund is because i has limited control for the investment. I simply can't do anything that was going to make the price of the fund get higher. I only will hope the faceless stranger of fund manager will give me a good new on next new year eve. Once invested in investment that we hardly to control, we are losing at the first round at the beginning of deal. That is way, today, we heard about million are losing trillion in any stock market crash especially at recent 2008. They lose, is because primary they do not has control over the possession of their investment portfolio.

The best way to illustrate the control factor, imagine yourself as a passenger to a stranger's vehicle such as taxi, or public bus or even your friend car. When the stranger driver speed off, or emergency brake or never slow down at coming steep corner, your heart beat roll, you felt insecure and probably realize that, your life is on his/her stake of driving skill. Instead, for same circumstances in every detail about the scenario illustrated, only you become the driver of yourself, do you fell secure, or even more safer? When you in control, you even can decide the destination yourself without need to ask for "permission". You can change course by your own preference. You can stop whichever you feel like it. And drive at any speed you comfort with. That is what i mean by control!

Here the main 10 important controls that every entrepreneur shall preach:

Control over:

1. Yourself
2. Your income and expenses (assets and liabilities)
3. When to sell and when to buy
4. ETC (Entity, timing and characteristic)
5. Brokerage fee
6. Taxes
7. Management
8. Access of information
9. Terms and Condition
10. Philanthropy

If you do not know how to drive, learn to drive, or driving a car without license is even more dangerous than hire out someone driving for you!

Debt - A double edge sword

Debt - for most of people, it is always related to house loan, car loan, credit card or school loan. Yet, most of us never realize, it is the utilization of debt that make the different between rich to middle class.

Debt is like a loaded gun. It can be used or "AB"used. Thus, it must be treated respectably. The idea of old time classic thinker about become rich is the famous quote we often listen from our parent, grandparent :"study hard, get a high paid job, save money, get out of debt and live frugally". Live below your mean? Why should anyone believe that? Why should we work hard for the rest of our life, yet unable to enjoy life? Isn't it sound insane?

One of the answer of this question is the usage of debt. There is a good debt and a bad debt. Good debt make you rich and bad debt make you poor. The typical bad debt are such as liabilities and glitter luxury stuff we bought by credit ie car(s), expensive vacation, beech house, boat and on and on. It take money out of your pocket every months.

Good debt is the debt that will put money into your pocket. The best example in this case is investing on real estate by 90% of bank money. The investment by utilizing debt will generate not only monthly income of rental, but it also provide other advantages such as tax reduction, depreciation and appreciation which ultimately increase your personal wealth if you know what you are doing.

It best to illustrate how powerful debt will make the different is by asking yourself the question: "how long it is take for you to save a million dollar (any currency), and how long it is take for you to loan a million dollar?" and "who you has to be and what you need to know for you to go to the banker to ask for a million dollar loan, and has him/her to approve your loan by issue a paper for you to sign in 30 minutes?". Well, this is not a advertisement to promote getting into debt and spend all you can have. It is an alternative idea for you all to think about it. The idea might shake your core believe, but unless we are shaken, it will take even more difficult for us to change. To change for betterment.

7 Principles of Entrepreneur

Principle simply mean the fundamental truth or proposition that serves as the foundation for a system of belief or behaviour or for a chain reasoning. It is the key of a subject to sustain, growth and evolve, thus as an entrepreneur, profound principle will hold important key to success.

The following are the 7 key principle of entrepreneurship:

1. Identify what type of income you are dealing with - earned income, passive income or portfolio income.
2. Effectively turn earned income (50% income) to passive and portfolio income.
3. Only purchase positive return investment.
4. Let your mind become your own greater assets than liability - " it is the investor that matter in every investment deal. An idiot will still an idiot doesn't matter what investment he or she into."
5. Learn to trust when a great investment opportunity come, the fund will be right behind it.
6. Do not predict or prognosticate, instead to be always prepared for whatever might come across with.
7. Learn to weight between "rewards" and "risks"

The Power of Debt - Leverage

Real Estate: The Art of the Deal