Wrapping Up
The first step is always the hardest in anything you do. Creating your
wealth is not an easy task. However it’s been said that the first
million dollars are the hardest. Once you reach that, your path to
great wealth becomes easier as you progress.
So it is up to you, are you going to just read about all these great
people and their stories but not do anything yourself? Every one of us
has great potential to succeed, don’t waste the opportunity as we are
living in a new age where you can have any information at your
fingertips.
Are you going to take up the challenge or just watch others reach their
dreams and goals? Learn, read and meet people who will inspire to
improve yourself and give you the motivation to succeed.
Almost all of the richest people in the world when through hardship
and challenges in their lives but nothing stopped them. Increase your
earning capacity, pay yourself first and invest in something you’re
familiar with.
Use the power of compounding to grow your wealth in a passive
manner, that’s how you make money work for you. Take these lessons
and apply it in your daily life, and one day you will make it.
Episode 5 of 5 - New Millionaires IDEA
In recent years there has been a change, in the distribution of wealth.
There is a new generation of Millionaires. These new breed are mostly
in their early 20s and 30s.
Young adults, some are still in their teens. How did they come to
acquire such wealth?
The internet has changed the way the world is run forever. With more
and more people getting online each year, a bulk of the users are
made up of young people.
Most of them are tech savvy unlike their yesteryear generation who
were born without computers and depended on traditional media.
These youngsters are creating their own world in the cyberspace.
Recent Rich One of the most prominent billionaire is still in his 20s and he became the youngest billionaire at the age of 23. He is none other than Facebook's CEO Mark Zuckerberg. Even Hollywood made a movie about how Facebook came into existence, Social Network. A few young Harvard students locked themselves up in their dormitory and worked till the wee hours in the morning to come up with a social network service that will allow them to meet girls. That was their primary goal at that point of time. On the first day it was launched, few thousand users signed up to their service. Later on, they expanded Facebook to other Colleges in America, and it grew rapidly. Only after a few months of launching it, they hit a million Facebook users. They did not know even know how they were going to make money out of it. That wasn't their primary aim but it totally changed the way people are communicating today. Have you had a day, where you didn't log in to your Facebook account at all? We have become so depended to it and can't seem to live without it. How Mark Zuckerberg and his friends did knew they were creating something so powerful, well they didn't know but they did think - 44 - about one thing. They had only one purpose when they created Facebook. Their main goal was to connect everyone through a single medium of communication. Today Facebook has more than 850 million users and about to reach 1 billion users very soon. At this very moment it is about to become a listed company in the US stock market. It might reach a valuation of a $100 billion dollars. At least a 1000 of their employees are going to become multimillionaires and the major shareholders are already billionaires. Working on a startup is one way to the riches but you need to have the right people, talent and a little ingenuity. Facebook exploded in cyberspace because it served a major purpose. It changed the way people socialized with others. Can you think of a way to change the world even in a small way? It doesn't have to be something new but maybe need a little improvement. Facebook was not a new idea as well; there were many social media sites before that. They took the basic idea and made it better, much better. Do you have the hunger? Do you have a burning desire in you to succeed? Many of the most successful people in the world started from humble beginnings. They - 45 - didn't have all the resources or tools to get what they want but they pushed themselves through the limit. Tony Robbins was an overweight kid who was living alone in his apartment. He was suffering from depression. He was working as a janitor for a school with low wage. How did he change his life remarkably? He's one of the world’s top speakers today, how did he manage to come out of his poor life. Even he didn't realize how popular he was until one day, he was in a helicopter going to his venue where he was about to speak. He saw the roads at the bottom, there was a long crawl. The traffic was at a standstill and he thought to himself, "where ever this people are going, I hope they reach there in time". Little did he know, by the time he reaches the place and came down from his helicopter, the place was crowded with people and cars. That is when it hit him, the traffic was at a standstill because it was the people who were coming to his seminar, to see him speak and motivate them. It was one of the most defining moments in his life. It was an experience he will never forget. He was hungry for success because he wasn't happy with how his life was. The amazing thing is he didn't accept that kind of life. - 46 - If you want to succeed, you need to have a drive and put in your full effort in whatever you do. Starting a business is no easy task. Will you keep going when everything else is in your way, trying to stop you from getting what you want? If live without a desire or goals in your life, it’s not going to be fulfilling life. Only you can decide the type of life you want and what you want to do with it.
Recent Rich One of the most prominent billionaire is still in his 20s and he became the youngest billionaire at the age of 23. He is none other than Facebook's CEO Mark Zuckerberg. Even Hollywood made a movie about how Facebook came into existence, Social Network. A few young Harvard students locked themselves up in their dormitory and worked till the wee hours in the morning to come up with a social network service that will allow them to meet girls. That was their primary goal at that point of time. On the first day it was launched, few thousand users signed up to their service. Later on, they expanded Facebook to other Colleges in America, and it grew rapidly. Only after a few months of launching it, they hit a million Facebook users. They did not know even know how they were going to make money out of it. That wasn't their primary aim but it totally changed the way people are communicating today. Have you had a day, where you didn't log in to your Facebook account at all? We have become so depended to it and can't seem to live without it. How Mark Zuckerberg and his friends did knew they were creating something so powerful, well they didn't know but they did think - 44 - about one thing. They had only one purpose when they created Facebook. Their main goal was to connect everyone through a single medium of communication. Today Facebook has more than 850 million users and about to reach 1 billion users very soon. At this very moment it is about to become a listed company in the US stock market. It might reach a valuation of a $100 billion dollars. At least a 1000 of their employees are going to become multimillionaires and the major shareholders are already billionaires. Working on a startup is one way to the riches but you need to have the right people, talent and a little ingenuity. Facebook exploded in cyberspace because it served a major purpose. It changed the way people socialized with others. Can you think of a way to change the world even in a small way? It doesn't have to be something new but maybe need a little improvement. Facebook was not a new idea as well; there were many social media sites before that. They took the basic idea and made it better, much better. Do you have the hunger? Do you have a burning desire in you to succeed? Many of the most successful people in the world started from humble beginnings. They - 45 - didn't have all the resources or tools to get what they want but they pushed themselves through the limit. Tony Robbins was an overweight kid who was living alone in his apartment. He was suffering from depression. He was working as a janitor for a school with low wage. How did he change his life remarkably? He's one of the world’s top speakers today, how did he manage to come out of his poor life. Even he didn't realize how popular he was until one day, he was in a helicopter going to his venue where he was about to speak. He saw the roads at the bottom, there was a long crawl. The traffic was at a standstill and he thought to himself, "where ever this people are going, I hope they reach there in time". Little did he know, by the time he reaches the place and came down from his helicopter, the place was crowded with people and cars. That is when it hit him, the traffic was at a standstill because it was the people who were coming to his seminar, to see him speak and motivate them. It was one of the most defining moments in his life. It was an experience he will never forget. He was hungry for success because he wasn't happy with how his life was. The amazing thing is he didn't accept that kind of life. - 46 - If you want to succeed, you need to have a drive and put in your full effort in whatever you do. Starting a business is no easy task. Will you keep going when everything else is in your way, trying to stop you from getting what you want? If live without a desire or goals in your life, it’s not going to be fulfilling life. Only you can decide the type of life you want and what you want to do with it.
Episode 4 of 5 - IDEA to Power of Delayed Gratification
People nowadays want everything fast. From fast food, bullet trains,
planes and sports cars.
Their attitude towards money is the same as well. They want to see
results as soon as they make an investment.
About Waiting Good things come to those who wait, so don' rush it. That's how Warren Buffets makes his investments. He invests for the long term for at least 10 years or longer. Most people trade stocks on a short term basis. They buy today then they sell few days later. They don't have the patience to wait for their money to grow but in fact they are actually not making much money at all. He believes in the power of compounding. Even Albert Einstein, who is a very intelligent man, has said “Compounding is the eighth wonder of the world". What is compounding and how does it work? Here's a simple scenario to make you understand how compounding works. Let’s say you actually found a pot of gold at the end of the rainbow and you were given two choices. First option, you can take a million dollars now or the second option. Only take one penny now but doubling it in the next 30 days. Which one would be your choice? Without a doubt, most people would go for the million dollars because they don't see anything else but the cold hard cash in front of them. Do you want to know how much the single penny will accumulate to after 30 days? - 38 - You would have ended up with more than 5 million dollars. If you find it a little hard to believe, try it yourself. Take $0.01 and multiply it by 2, do it 30 times. Can you see how compounding works and investors like Warren Buffet are making their money work for them? Of course in reality it is unrealistic to compound your investments everyday but it's done on a yearly basis. Another thing you need to take into account is how much time it takes to grow your wealth. It will take much longer than 30 days to compound your investment. It's a good idea to start investing early in your life. . Your savings will be compounded every year, the longer you keep your investments, the richer you become. Save and invest regularly, that's how you are going to make your seed money grow. It takes time to see you rewards but it will be worth it. Always pay yourself before you others and spend your money away. If you don't have the patience, it will be difficult for you to invest for a long term. It takes time to see your wealth grow but once you reach a milestone such as your first $100,000 or even a million dollars. It gets easier from there. Read on to discover how the number one investor in the world began investing… - 39 - The Warren Buffet Story Warren Buffet had a different mindset compared to other children, when he was growing up. At age six he bought a supply of Cola bottles and made a good profit of 5 cents per six pack. Few years later, he began delivering newspapers and was hardworking and prudent. He saved up about $1200 and went back to his hometown, Omaha and rented a few acres of land for farming purpose. He had so many business ventures when he was still a kid compared to most of the adults at that time. But when he was 11 years old, he one of the most valuable lessons which shaped him to the person he is today. He bought three stock shares for $38 and the stock price immediately dropped to $27. It was a mind opening experience for him. As soon the stock price went up to $40, he sold them and made a tiny profit. But what happened after that left him feeling much worse. The stock price continued to increase and went up to $200 and stayed there. It was his first lesson in the share market. It taught him the virtue of patience and it started a spark in him. Today he's one of the most respected and richest men in the world. - 40 - School of Hard Knocks Some of the wealthiest people on earth go through the school of hard knocks, to get where they are today. They don't usually have a proper education. Well most of them of didn't go to college or never had the chance to. It was pure courage and dedication that brought them out of their struggles and gave them wealth and fame. Take a look at some our recent wealthiest men in the world. Steve Jobs, Mark Zuckerberg and Bill Gates all went to college but they all became drop outs and they began to work on their projects and ventures. None of them wanted to go the usual route of working 9-5 for someone else. They wanted to create business and hire other people to work for them instead. Although a proper education is necessary but it is not the only path to success. If you are keen to improve yourself and have a desire for knowledge and growth, you can get what you dream of. You don't have to do things on your own. Get a mentor and follow their footsteps, it is a faster way to success. At the same time your mentor will motivate you and give you the push you need. Don't be afraid to learn and try new things. Put yourself out there and meet new people who are positive about life. Make a mastermind group to have a few people who have the same mindset as you. - 41 - Think about creative business ideas and go and actually do it. You will be surprised what comes out of it. Once you start the ball rolling, you will begin to get so many ideas, you won't even have time for yourself.
About Waiting Good things come to those who wait, so don' rush it. That's how Warren Buffets makes his investments. He invests for the long term for at least 10 years or longer. Most people trade stocks on a short term basis. They buy today then they sell few days later. They don't have the patience to wait for their money to grow but in fact they are actually not making much money at all. He believes in the power of compounding. Even Albert Einstein, who is a very intelligent man, has said “Compounding is the eighth wonder of the world". What is compounding and how does it work? Here's a simple scenario to make you understand how compounding works. Let’s say you actually found a pot of gold at the end of the rainbow and you were given two choices. First option, you can take a million dollars now or the second option. Only take one penny now but doubling it in the next 30 days. Which one would be your choice? Without a doubt, most people would go for the million dollars because they don't see anything else but the cold hard cash in front of them. Do you want to know how much the single penny will accumulate to after 30 days? - 38 - You would have ended up with more than 5 million dollars. If you find it a little hard to believe, try it yourself. Take $0.01 and multiply it by 2, do it 30 times. Can you see how compounding works and investors like Warren Buffet are making their money work for them? Of course in reality it is unrealistic to compound your investments everyday but it's done on a yearly basis. Another thing you need to take into account is how much time it takes to grow your wealth. It will take much longer than 30 days to compound your investment. It's a good idea to start investing early in your life. . Your savings will be compounded every year, the longer you keep your investments, the richer you become. Save and invest regularly, that's how you are going to make your seed money grow. It takes time to see you rewards but it will be worth it. Always pay yourself before you others and spend your money away. If you don't have the patience, it will be difficult for you to invest for a long term. It takes time to see your wealth grow but once you reach a milestone such as your first $100,000 or even a million dollars. It gets easier from there. Read on to discover how the number one investor in the world began investing… - 39 - The Warren Buffet Story Warren Buffet had a different mindset compared to other children, when he was growing up. At age six he bought a supply of Cola bottles and made a good profit of 5 cents per six pack. Few years later, he began delivering newspapers and was hardworking and prudent. He saved up about $1200 and went back to his hometown, Omaha and rented a few acres of land for farming purpose. He had so many business ventures when he was still a kid compared to most of the adults at that time. But when he was 11 years old, he one of the most valuable lessons which shaped him to the person he is today. He bought three stock shares for $38 and the stock price immediately dropped to $27. It was a mind opening experience for him. As soon the stock price went up to $40, he sold them and made a tiny profit. But what happened after that left him feeling much worse. The stock price continued to increase and went up to $200 and stayed there. It was his first lesson in the share market. It taught him the virtue of patience and it started a spark in him. Today he's one of the most respected and richest men in the world. - 40 - School of Hard Knocks Some of the wealthiest people on earth go through the school of hard knocks, to get where they are today. They don't usually have a proper education. Well most of them of didn't go to college or never had the chance to. It was pure courage and dedication that brought them out of their struggles and gave them wealth and fame. Take a look at some our recent wealthiest men in the world. Steve Jobs, Mark Zuckerberg and Bill Gates all went to college but they all became drop outs and they began to work on their projects and ventures. None of them wanted to go the usual route of working 9-5 for someone else. They wanted to create business and hire other people to work for them instead. Although a proper education is necessary but it is not the only path to success. If you are keen to improve yourself and have a desire for knowledge and growth, you can get what you dream of. You don't have to do things on your own. Get a mentor and follow their footsteps, it is a faster way to success. At the same time your mentor will motivate you and give you the push you need. Don't be afraid to learn and try new things. Put yourself out there and meet new people who are positive about life. Make a mastermind group to have a few people who have the same mindset as you. - 41 - Think about creative business ideas and go and actually do it. You will be surprised what comes out of it. Once you start the ball rolling, you will begin to get so many ideas, you won't even have time for yourself.
Episode 3 of 5 - Rich People’s Habits IDEA
Rich people hate to procrastinate. Time is money, every second you
waste; you are not going to get it back.
They take massive action on a daily basis. Do something every day
that is going to bring you closer to your goals.
Habits Steve Jobs was always thinking of the next big idea. He was so absorbed in his work that he didn't take care of his wellbeing. He became ill and found out was having cancer. He was such a great man that even when he was sick in the hospital, he couldn't keep still. He had to do something so he started to sketch on notepad. He began to draw the medical equipment and machines around him. He was trying to come up with his own design and how he can improve it. An innovative man who revolutionized the way people think about computers. During the early days of computers, it was only a normal looking white pc, keyboard and mouse. He came up with an idea to come up with computers with a range of colors instead of the usual white. Apple came up with green, blue, orange computers. No knew whether it was going to work but he thought of it. It just exploded in the market. People were getting it because they looked cute and stylish. He differentiated himself from his competitors. - 31 - Even with such visions he did go through some rough patches in his life. He was removed from Apple Inc by its board of directors because they thought he was wasting their money doing research and development. What he did next was an amazing feat by itself. He went and formed Pixar, the animation company which made the Toy Story. It was a huge success and Steve Jobs was in the spotlight again. Finally Apple wanted him back because they realized he was a huge asset to the company. He's a great example of a hardworking and innovative man who was changing the world in his own unique way. Good Money Managing Habits How often have you heard of a high earning professional going into debt or bankruptcy? They drive big cars, live in mansions but did you know behind of it all, it was all just a show. They bought all sorts of flashy things but in reality, they were going into debt, day by day. How did that happen? Was it because it was the need to show others how "well" to do they were. The more money they earned, the more expensive their lifestyle became. At the end of the day, there was nothing left to save or invest. - 32 - Even if they were getting $30,000 per month but spending the same amount of money, it's pointless. What about a person, who was earning much less, let’s say $5000 per month. But what if he saved $1000 each month and invested his money. Who do you think would be a wealthier person at the end of the day? This is what it means to have a rich mindset. It doesn't matter how much you are earning but as long you pay yourself first for investments, you will be much better off. Sometimes a simple looking man on the street might be a multimillionaire. They are prudent with their money instead of spending it on material things they don't need. Rich people have a good habit of planning their budget. They prefer to buy assets than to buy liabilities which makes them lose money. If you want to think like the rich, take a guess at this next question. See what you would do if you were in this situation. - 33 - Let’s say you had some money, about $50,000 and you wanted to get a new car badly even though you don't really need it You are given two choices. The first option, you have a chance to invest in a property that is going to bring you positive cash flow of $500 each month. Second option is to just buy the car you have always wanted. What do you think you will do? If you chose to get the property, it’s a wise choice. You prefer to stay safe and prudent with your finance. But if you decided to get the car, you need to be more careful with your spending habits. What do you think a person with a rich mindset would have done? A person with a rich mindset would have got both the property and the car at the same time. How is that possible? Well, since the property gives a positive cash flow of $500 a month, it's a great investment. Next he would use the $500 he's getting from his investment property to pay for the car. So what happened here? Instead of buying the car directly, which is a liability; he bought an asset to build his net worth. Only then he bought something he wanted from the cash flow his investment was giving every month. - 34 - Rich people ask powerful questions. They don't say "It's too expensive, how will I afford it" but they will ask themselves “how can I afford it". It makes you think instead of being distressed about money. Have a proper strategy to invest and save your money It's not just about making lots of money but learning how to keep your hard earned money. Put aside at least 10% of your earnings in investments or a business you would like to start one day. But what if you want to start your business now, and don't have the capital. One of the ways is to get a loan from a bank or get an investment capital from an angel investor. Angel investors are people who look for good business ideas to invest in. Most startups, they have great ideas but don't have the money to kick start it. They look for angel investors who believe in their idea. Some people prefer not take loans and are in debt. The way rich people think is, as long it's a good debt, then its fine. A good debt is when you are using the money to get positive returns or getting an asset. - 35 - If you have a solid plan that's going to give a good return on investment, then you should just go ahead and implement your idea. Have you heard of this story, during the gold rush in America? Many people went to the mines digging for gold. They brought their shovels and started digging for riches. The question is, who do you think made the most money? The people who were digging for gold or they guy who sold them the shovels? It's a simple yet a thoughtful idea that tells you, that sometimes you got to stop looking for the gold when you can just sell them the shovels. Instead of going after the next hot thing in investments or ways to make money, if you can just come up with a simple business idea or something that people need, you will make a lot more money much faster.
Habits Steve Jobs was always thinking of the next big idea. He was so absorbed in his work that he didn't take care of his wellbeing. He became ill and found out was having cancer. He was such a great man that even when he was sick in the hospital, he couldn't keep still. He had to do something so he started to sketch on notepad. He began to draw the medical equipment and machines around him. He was trying to come up with his own design and how he can improve it. An innovative man who revolutionized the way people think about computers. During the early days of computers, it was only a normal looking white pc, keyboard and mouse. He came up with an idea to come up with computers with a range of colors instead of the usual white. Apple came up with green, blue, orange computers. No knew whether it was going to work but he thought of it. It just exploded in the market. People were getting it because they looked cute and stylish. He differentiated himself from his competitors. - 31 - Even with such visions he did go through some rough patches in his life. He was removed from Apple Inc by its board of directors because they thought he was wasting their money doing research and development. What he did next was an amazing feat by itself. He went and formed Pixar, the animation company which made the Toy Story. It was a huge success and Steve Jobs was in the spotlight again. Finally Apple wanted him back because they realized he was a huge asset to the company. He's a great example of a hardworking and innovative man who was changing the world in his own unique way. Good Money Managing Habits How often have you heard of a high earning professional going into debt or bankruptcy? They drive big cars, live in mansions but did you know behind of it all, it was all just a show. They bought all sorts of flashy things but in reality, they were going into debt, day by day. How did that happen? Was it because it was the need to show others how "well" to do they were. The more money they earned, the more expensive their lifestyle became. At the end of the day, there was nothing left to save or invest. - 32 - Even if they were getting $30,000 per month but spending the same amount of money, it's pointless. What about a person, who was earning much less, let’s say $5000 per month. But what if he saved $1000 each month and invested his money. Who do you think would be a wealthier person at the end of the day? This is what it means to have a rich mindset. It doesn't matter how much you are earning but as long you pay yourself first for investments, you will be much better off. Sometimes a simple looking man on the street might be a multimillionaire. They are prudent with their money instead of spending it on material things they don't need. Rich people have a good habit of planning their budget. They prefer to buy assets than to buy liabilities which makes them lose money. If you want to think like the rich, take a guess at this next question. See what you would do if you were in this situation. - 33 - Let’s say you had some money, about $50,000 and you wanted to get a new car badly even though you don't really need it You are given two choices. The first option, you have a chance to invest in a property that is going to bring you positive cash flow of $500 each month. Second option is to just buy the car you have always wanted. What do you think you will do? If you chose to get the property, it’s a wise choice. You prefer to stay safe and prudent with your finance. But if you decided to get the car, you need to be more careful with your spending habits. What do you think a person with a rich mindset would have done? A person with a rich mindset would have got both the property and the car at the same time. How is that possible? Well, since the property gives a positive cash flow of $500 a month, it's a great investment. Next he would use the $500 he's getting from his investment property to pay for the car. So what happened here? Instead of buying the car directly, which is a liability; he bought an asset to build his net worth. Only then he bought something he wanted from the cash flow his investment was giving every month. - 34 - Rich people ask powerful questions. They don't say "It's too expensive, how will I afford it" but they will ask themselves “how can I afford it". It makes you think instead of being distressed about money. Have a proper strategy to invest and save your money It's not just about making lots of money but learning how to keep your hard earned money. Put aside at least 10% of your earnings in investments or a business you would like to start one day. But what if you want to start your business now, and don't have the capital. One of the ways is to get a loan from a bank or get an investment capital from an angel investor. Angel investors are people who look for good business ideas to invest in. Most startups, they have great ideas but don't have the money to kick start it. They look for angel investors who believe in their idea. Some people prefer not take loans and are in debt. The way rich people think is, as long it's a good debt, then its fine. A good debt is when you are using the money to get positive returns or getting an asset. - 35 - If you have a solid plan that's going to give a good return on investment, then you should just go ahead and implement your idea. Have you heard of this story, during the gold rush in America? Many people went to the mines digging for gold. They brought their shovels and started digging for riches. The question is, who do you think made the most money? The people who were digging for gold or they guy who sold them the shovels? It's a simple yet a thoughtful idea that tells you, that sometimes you got to stop looking for the gold when you can just sell them the shovels. Instead of going after the next hot thing in investments or ways to make money, if you can just come up with a simple business idea or something that people need, you will make a lot more money much faster.
Episode 2 of 5 - 7 Principles Of The Wealthy IDEA
This was principles that were taken from the bestselling book.
“Richest man in Babylon” was written by George S. Clason in 1926
and the story is set in a "Babylonian" era.
He talks about the seven principles a person needs to have, in order to
become wealthy. These are some of the basic ideas you need to apply
to your own life.
Principles Pay yourself first Always pay yourself first before you use it for your expenditures. At least 10% of your income should go to your savings. This is the money you are going to use for investments and build your wealth. Control Your Expenditures Think about all the things you are getting for yourself. Do you really need it or because you want it? Most of the time we are attracted to material things but we can live without it. Instead of eating out at expensive restaurants for your date, why don't you try cooking a meal for your romantic evening? Be creative and find ways to control your spending. Invest Your Money Learn how to invest your money. If you don’t have an idea or investing is foreign to you. Get some books or learn from a mentor. It's important for you to grow your money otherwise it will lose value every year due to inflation and rising costs. Preserve Your Wealth - 22 - Always be careful of the investments you make. If the deal sounds like it's too good to be true, then it's probably is. Safe guard your money and take calculated risks. Be an intelligent investor and take Warren Buffet's advice. He gave 2 rules to his company's CEOs. "Rule No 1 - Don't lose money. Rule No 2 - Remember Rule No 1, simple but a thoughtful advice. Your home must be a profitable investment This relates to your personal home. Make sure when you get your own home, it’s a good investment. Which means it is at a good location and area. So one day if you are thinking of selling it, you will make a profit out of it. Insure your future earnings Have a retirement plan and don't depend on the government to provide for your golden years. You are responsible for your life and fate. Get proper protection in the form of life and medical insurance and it will provide you a as a cushion in your life later. Increase your ability to earn If you want grow wealthy much faster, than you got to increase your ability bring in more income. Learn a new skill and knowledge that's going to make you more valuable to your company. Even better if you are able to start your own business and increase your earning capacity. - 23 - Use these seven principles to guide you in your life and make better financial decisions. Most of us have misconception that you need a big fat paycheck to get wealth. That is not true in most cases. It doesn't matter how much you are earning at the moment. If you are not prudent, you will not be able to accumulate your wealth. For instance, professionals such as doctors, pilots and lawyers might have a high earning power but if their monthly spending grows at the same rate as their income that spells trouble. To preserve your wealth can be difficult if you don't know how to go about it. There are many ways to grow your money but one bad decision will impact you in a big way. How do the richest people in the world preserve their wealth? Thirst for knowledge The wealthiest and richest people are also some of the most hard working and have a big appetite for knowledge and books. - 24 - Tony Robbins, one of the best peak performance coaches in the world read more than 700 books and listened to audio tapes to improve himself. Today he speaks to thousands of people and influences them in a positive way. Which brings us to the next subject, rich people get richer by influencing a large number of audience. When they are seen as an authority thousands of people go to him to learn his techniques and beliefs. Someone with an authority like Tony Robbins for instance. Do you know how much is his private consultation fees? A million dollars, that's his price tag. He has placed such a high price tag on himself because he values his time. Every hour is used to do something productive and improve his business and his life. You need to have a high commitment level and make a promise to yourself, that you will do whatever it is to succeed. It doesn't matter what obstacle or challenges comes your way. You will face it straight ahead and just go right through it. - 25 - Thomas Edison did 1000 experiments before he invented the light bulb. Do people have that kind of persistence and drive? Usually after 2 or 3 times of failing, we will just give up. But what if the 4th time you do it, it starts to work? So near yet so far, that's how close we come sometimes. Read and learn as much as possible. Try new things and don't be afraid to make yourself look like a fool while you're at it. Richard Branson Richard Branson is not afraid of looking silly; he does what he believes in. His latest company, Virgin Galactic will be the first passenger space shuttle to space. He is an eccentric business person who has a different way of thinking is Richard Branson. There was a story about him as well. When he was stranded in a tiny airport in an Island. He and his wife were supposed to take a flight out of the Island but were stranded when the plane had technical difficulties. He thought of one of the craziest ideas ever. He start going through the phonebook and looked for a charter flight company. Finally he got one, a twin engine that seats about 30 people. It cost about few thousand dollars. What do you think he did next? - 26 - Did he pay all of it? No, instead, he found a white board and wrote Virgin Airline (this was before the formation of Virgin Airlines) at the top and wrote a message to the other people who were stranded as well. He wrote on the board, $200 per seat to their destination. In a matter of minutes, all the seats were sold out and he even manage to get free seats from their profits. Is that the kind of thinking you would like to have? He has more than 300 companies under the Virgin brand and he has his own private island. How did he get there in the first place? His first business venture was when he was still in his schooling years. He started a magazine, even though he wasn't a writer and he had no idea how to publish one. All he knew was to start a niche magazine and get clients to advertise in it. He started cold calling all the local companies for clients. He didn't even have a phone but he used the public phone at school which used coins. He began to call them one by one; he wanted to secure a few clients to get a working capital so that he can publish the magazine. - 27 - Basically he had nothing with him, only a simple idea and he learned how to do it as he went along. Now he's about to space in his own space shuttle. He achieved most of his dreams and then some. They are always looking for ways to improve themselves and their mindset. The people they associate with are very important. By meeting different kinds of people they learn new things and leverage on the person talent and knowledge. They usually have good contacts so it makes it easier for them do business. For instance Donald Trump became bankrupt and he was in a billion dollar debt. How did he change his fortune and made his riches again. Is it because he was lucky? He knew the right people and had the right knowledge. It's the fastest way to success. Even if you don't know anything about a certain subject, meeting an expert on the subject can fast track you and give you a better understanding. Some people are willing to go the extra length just to meet their mentors. Would you fly across the country just to go for a cup of coffee with your idol? - 28 - That's the kind of mindset they have and it has made them successful. Surrounding them with positive people and the determination to do their best at their work drives them to success. They crave for success and will do whatever it takes to get them there as long it's legal.
Principles Pay yourself first Always pay yourself first before you use it for your expenditures. At least 10% of your income should go to your savings. This is the money you are going to use for investments and build your wealth. Control Your Expenditures Think about all the things you are getting for yourself. Do you really need it or because you want it? Most of the time we are attracted to material things but we can live without it. Instead of eating out at expensive restaurants for your date, why don't you try cooking a meal for your romantic evening? Be creative and find ways to control your spending. Invest Your Money Learn how to invest your money. If you don’t have an idea or investing is foreign to you. Get some books or learn from a mentor. It's important for you to grow your money otherwise it will lose value every year due to inflation and rising costs. Preserve Your Wealth - 22 - Always be careful of the investments you make. If the deal sounds like it's too good to be true, then it's probably is. Safe guard your money and take calculated risks. Be an intelligent investor and take Warren Buffet's advice. He gave 2 rules to his company's CEOs. "Rule No 1 - Don't lose money. Rule No 2 - Remember Rule No 1, simple but a thoughtful advice. Your home must be a profitable investment This relates to your personal home. Make sure when you get your own home, it’s a good investment. Which means it is at a good location and area. So one day if you are thinking of selling it, you will make a profit out of it. Insure your future earnings Have a retirement plan and don't depend on the government to provide for your golden years. You are responsible for your life and fate. Get proper protection in the form of life and medical insurance and it will provide you a as a cushion in your life later. Increase your ability to earn If you want grow wealthy much faster, than you got to increase your ability bring in more income. Learn a new skill and knowledge that's going to make you more valuable to your company. Even better if you are able to start your own business and increase your earning capacity. - 23 - Use these seven principles to guide you in your life and make better financial decisions. Most of us have misconception that you need a big fat paycheck to get wealth. That is not true in most cases. It doesn't matter how much you are earning at the moment. If you are not prudent, you will not be able to accumulate your wealth. For instance, professionals such as doctors, pilots and lawyers might have a high earning power but if their monthly spending grows at the same rate as their income that spells trouble. To preserve your wealth can be difficult if you don't know how to go about it. There are many ways to grow your money but one bad decision will impact you in a big way. How do the richest people in the world preserve their wealth? Thirst for knowledge The wealthiest and richest people are also some of the most hard working and have a big appetite for knowledge and books. - 24 - Tony Robbins, one of the best peak performance coaches in the world read more than 700 books and listened to audio tapes to improve himself. Today he speaks to thousands of people and influences them in a positive way. Which brings us to the next subject, rich people get richer by influencing a large number of audience. When they are seen as an authority thousands of people go to him to learn his techniques and beliefs. Someone with an authority like Tony Robbins for instance. Do you know how much is his private consultation fees? A million dollars, that's his price tag. He has placed such a high price tag on himself because he values his time. Every hour is used to do something productive and improve his business and his life. You need to have a high commitment level and make a promise to yourself, that you will do whatever it is to succeed. It doesn't matter what obstacle or challenges comes your way. You will face it straight ahead and just go right through it. - 25 - Thomas Edison did 1000 experiments before he invented the light bulb. Do people have that kind of persistence and drive? Usually after 2 or 3 times of failing, we will just give up. But what if the 4th time you do it, it starts to work? So near yet so far, that's how close we come sometimes. Read and learn as much as possible. Try new things and don't be afraid to make yourself look like a fool while you're at it. Richard Branson Richard Branson is not afraid of looking silly; he does what he believes in. His latest company, Virgin Galactic will be the first passenger space shuttle to space. He is an eccentric business person who has a different way of thinking is Richard Branson. There was a story about him as well. When he was stranded in a tiny airport in an Island. He and his wife were supposed to take a flight out of the Island but were stranded when the plane had technical difficulties. He thought of one of the craziest ideas ever. He start going through the phonebook and looked for a charter flight company. Finally he got one, a twin engine that seats about 30 people. It cost about few thousand dollars. What do you think he did next? - 26 - Did he pay all of it? No, instead, he found a white board and wrote Virgin Airline (this was before the formation of Virgin Airlines) at the top and wrote a message to the other people who were stranded as well. He wrote on the board, $200 per seat to their destination. In a matter of minutes, all the seats were sold out and he even manage to get free seats from their profits. Is that the kind of thinking you would like to have? He has more than 300 companies under the Virgin brand and he has his own private island. How did he get there in the first place? His first business venture was when he was still in his schooling years. He started a magazine, even though he wasn't a writer and he had no idea how to publish one. All he knew was to start a niche magazine and get clients to advertise in it. He started cold calling all the local companies for clients. He didn't even have a phone but he used the public phone at school which used coins. He began to call them one by one; he wanted to secure a few clients to get a working capital so that he can publish the magazine. - 27 - Basically he had nothing with him, only a simple idea and he learned how to do it as he went along. Now he's about to space in his own space shuttle. He achieved most of his dreams and then some. They are always looking for ways to improve themselves and their mindset. The people they associate with are very important. By meeting different kinds of people they learn new things and leverage on the person talent and knowledge. They usually have good contacts so it makes it easier for them do business. For instance Donald Trump became bankrupt and he was in a billion dollar debt. How did he change his fortune and made his riches again. Is it because he was lucky? He knew the right people and had the right knowledge. It's the fastest way to success. Even if you don't know anything about a certain subject, meeting an expert on the subject can fast track you and give you a better understanding. Some people are willing to go the extra length just to meet their mentors. Would you fly across the country just to go for a cup of coffee with your idol? - 28 - That's the kind of mindset they have and it has made them successful. Surrounding them with positive people and the determination to do their best at their work drives them to success. They crave for success and will do whatever it takes to get them there as long it's legal.
Episode 1 of 5 - The Rich Person’s Mindset how they get idea for rich
They think big when it comes to money matters. You can work all
your life and save every penny you earn to become rich but it's not the
best way. Most millionaires have created their wealth by starting their
own businesses.
The Basics
The irony about business and wealth is, the more you think about making money only for yourself the harder it is for you to become rich. In order to be truly wealthy, start thinking about others. How can you help people get what they want? Do you have something want a product or service that others require? When you start helping people by providing your products and services you start to make money. The more people you serve the richer you become. The way people like Warren Buffet and Bill Gates think about money is totally different compared to a layman. They don't work for money but put money to work. Bill Gates is the founder of Microsoft. He found a solution in the personal computer. No one really knew what it was used for. They didn't know it was going to become one of the most useful inventions ever. Today every household has a personal computer. Can you imagine a world without computers? There would be no Facebook, YouTube, emails, social media and there won't be an internet in the first place. Think big, how can you provide massive value to the world.
You don't have to come with a high tech invention to become wealthy. Perhaps something simpler and practical. Have you ever given a thought on how our lives are much easier due to some ingenious creations? What do you use when you want to leave a short memo for your family or colleagues? Something you can stick on the fridge or the computer. You use Post-IT's a simple piece of yellow paper that has a sticky adhesive. It made the inventor a very rich man. The funny thing is, the invention was an accident. The scientist was trying to come up with strong glue but instead what he got was a weak adhesive that did not stick properly. This silly mistake made them millions of dollars. Don't you wish you made more mistakes like that? Don’t be afraid of failure Like the Post-It story, there are many more tales of success that began from an honest mistake. What does it tell you, you have more to lose if you don't try? Don't be afraid of failure. Learn as much as possible and take action. One of the fastest ways to riches is to fail fast and quick. Which means if you want to reach success faster, don't wait too long. If you want to start a business, just do it. Don't let others tell you why you can't do it, or tell you that it won't work out. - 8 - At the same time, that doesn't mean you need to go out there and purposely fail at something. Take calculated risk and get some knowledge. Only then you will be more prepared to start your business or any other venture. Warren Buffet bought his first stock when he was 11 years old. Even then he regretted not starting at an earlier age. Why did a young boy had a thinking far mature than most adults. He saw an opportunity of getting stocks at a low price and his principle was to hold it, and hold it for a long time. Today Berkshire Hathaway owns more than 60 companies in the world and some are big names like Coca Cola, American Express and many others. Would you like to learn the way they think about life and money? Popular figures like Bill Gates and Warren Buffet are not afraid to take risks and work their way to the top. They know how to take calculated risks. Stop being a perfectionist If you are a perfectionist, it’s difficult for you to get started with something. If you are working on a project, you want to make sure you have all the angles covered. Even if one little detail is not proper, you will not be happy about it. - 9 - Being a perfectionist is not a crime but if you want to be like the rich, you have to be more forgiving. The path of success is messy and a most of the times you will be going through a lot of ups and downs. Are you going to stop yourself from moving forward because of a little imperfection in your life? Don't be afraid to get your hands dirty and just do it. That is the fastest way to learn something. If you want to start an online business but you don't know how to set up a website, create content and set up a payment system, just learn as you go. If you are planning to create your website after you learn everything there is to know about it. It is going to take a lot of your time. What if you just take a dive and learn by actually creating the website. If you hit an obstacle or not sure how to do something, there are so many sources you can look for answers. Search for it on Google, or look for a video on YouTube. Which way do you think is going to take you less time and get your site up and running for your online business? Focus on opportunities instead of problems How do you feel when you encounter a problem, do you feel stressed or you start to think how you can solve it. The Chinese word for "Crisis" consists of two characters which represents "danger" and "opportunity". How you view your problem might be seen as an opportunity by another person. - 10 - It is a matter of perspective and your mindset. Soichiro Honda was on such person. When Japan was hit by the Great Depression in 1930s. Mr. Honda began to develop the piston ring in that period. It was a still a new concept but he had a fascination by cars from an - 11 - supplies of raw materials. This man really went through it all and was still persistent to be successful. He then began collecting gasoline cans that were thrown away by US fighters. It became his only source of raw materials for his piston ring manufacturing process. Finally in an unfortunate turn of events, an earthquake destroyed his factory. Once the war was over, shortage of gasoline supplies left many people without any sort of transportation. They had to walk or used bicycles to travel. Honda created a small engine and mounted it to his bicycle. His neighbors’ saw his clever little invention and wanted one as well. However even after he tried, he wasn't able to meet the demand. Instead of giving up and blaming it on fate. He started thinking of a way and wrote a letter to 18,000 bicycle shop owners to help him in his quest to rebuild Japan. About 5000 people gave him the green light and gave him some capital so that he could start working on his little bicycle engines. After revising his design and making a really compact engine, his invention was a success. Honda began exporting his little bicycle engines to Europe and America. At the moment, Honda Corporation has over 100,000 employs from Usa and Japan. It is one of the largest automobile companies in the world. It was because of one man’s undying attitude to failure and spotting opportunities. - 12 - The different types of riches Everyone is chasing after money and wealth. The media portrays the rich person as someone who is enjoying the ultimate life with their yachts, Ferraris and expensive holidays. However there are many types of riches, besides they type of people shown on TV shows. The low profile rich This people are the eccentric of the riches. The way they earned their wealth is mostly through the arts and sciences. They lead a life full of purpose and cause. Sometimes they don't seem like rich people because the way the dress or behave is different. They are more concerned about their work and social causes than to focus on material wealth. The corporate rich These people are the some of the most hard working people you will ever meet. They went through the corporate ladder and rise up the ranks to hold high positions in the company. They are the high profile people in the financial world. Frequently appears in the news and have very strong corporate goals and able to make prompt decisions confidently. Usually their wealth is passed on the next generation their children. Which leads to the next type - 13 - The Inherited rich If you have heard of the Hilton family, then you will know how where they got their wealth from. The wealth is passed down from the older generations. These are the lucky ones who don't have to work a day of their lives. Their wealth is preserved by solid investments over the years in businesses and companies. The New Rich Actors, athletes, singers and entertainers fall in to these categories. They would have been come from rags to riches, and went through the hard life. Their wealth would have been created in such a short time that they earn millions every year. The Super Rich This category is for the movers and shakers of the world's economy. If you remember the Pareto's rule that states, 99% of the world’s wealth belongs to 1% of the worlds richest. They are in this group. Hard work, intelligence and a little bit of luck has brought them all the wealth. However they have a proper strategy for gaining all their wealth. The Banker, Millionaire and the Ferrari There was a story about a millionaire who walks into a popular bank in New York City and he meets a loan officer. He tells the officer that - 14 - he's going overseas on a business trip for few weeks and he wants to borrow a small sum of money, $5000. So the banks asked to give collateral and he showed them his bright red Ferrari. The loan officer checked his paperwork and the Ferrari did belong to the guy. Right after he went off, the loan officer drove the car to the underground garage. He thought to himself, "what an idiot he is, so rich yet dumb". Two weeks later the guy returned, he paid $5000 plus an interest of $15 dollars. The loan officer got really curious and asked him a question." We found out you are actually one of the wealthiest men in America, why would you need to borrow $5000, cause it doesn't make sense." The guy smiled and said “Can you tell me another way I could have parked my new Ferrari in the middle of New York, for just $15, and still expect it to be in perfect condition when I get back? He walked out of the door leaving the loan officer stunned but he smiled thereafter. He thought to himself what an intelligent guy is, no wonder he's wealthy. In this story, the guys saw an opportunity and he took advantage of it. Not many people thought of it but he did. These are the kind of thinking that most rich people have. How can you get the most out of a situation? Always think of all the possibilities. - 15 - The 4 types of income earners What is the usual advice to a youngster who is still schooling? Their parents usually tell them to go to a good College, score good Grades and join the corporate world. With good qualifications, you will climb the corporate ladder swiftly. But most of the wealthiest people in the world didn't go to a college; some dropped out and didn't work in a 9 to 5 job, at least not for long. They started their own business or money making machine because it gave them an advantage. They were in charge of their own fate and had no bosses to tell them what to do. They had freedom to whatever they wanted. There is a powerful conce - 16 - Unless you’re a high income earner. Most professionals have that ability but they are still tied to their job. Self-employed These groups of people work for themselves. Usually freelancers, they still work for people but has the ability to command a high fee if they are really good. But they are still limited to their own ability and talent to earn money. Business owner This are the people who runs the show, they have their own business to derive an income from. A set of system run by a group of people who works for you, that's a business. It's a sure way to get rich, if you know what you are doing. Investor This is how the rich get richer. Once they have accumulated massive riches, they began to invest to grow their wealth. They usually invest in share market, properties and startups. This how the goal of every person with an aim to make it big. They make their money work for them. According to Robert Kiyosaki, most people are in the employer and self-employed quadrant. That is the reason most people are struggling make enough money to be put into savings. - 17 - In order to be rich, we have to cross from these two quadrants to the business owner and investor quadrant. Which means instead of working for people and limiting yourself, you can get rich faster by starting your own business and investing your money in other ventures? It takes courage and a level confidence to face the risk by starting your own business. If you are not willing to take a risk, you will never know what you might achieve on the other side. Are you willing to think like the rich? Limiting beliefs about money The major difference between a rich and a poor is usually how a rich person lives the fast life, driving fast cars, going around the world for holidays and living in big mansions. They have achieved a financial freedom in their lives. It gives them the chance to do whatever they wish to do. However that's only on the surface. The difference between the rich and poor are their limiting beliefs. It has a common thing to hear, when a person wins a million dollar jackpot out of the blue, they won't have that wealth for very long. They will start spending it on their family, friends and everyone in between. Only to wake up and realize that all their wealth is gone. It shows the person had a lot of money but he had poor beliefs. That's how the wealthy build their wealth. - 18 - Most people think of money as an evil thing. That itself is a negative thought. Money is just a neutral things and it's used to put a value on something. It's a medium of exchange. So why do most people feel that way about money. Have you ever felt jealous of successful people who had amassed huge wealth? Do you think of rich people negatively, for instance you when see someone rich, do you think to yourself "where did he get that much of money, he must be doing something illegal." These are the kind of thoughts you need to change otherwise you are actually limiting yourself from getting rich. If you think money is evil, why would you want more of it? What if one day, you became rich all of a sudden? How would you feel? You might be happy for a moment but you might start to think that, who starts to be friendly towards you might have other motives. As if the whole world is trying to take advantage of your new wealth. It's a damaging belief and you will be paranoid at every little thing. Have you ever joined a contest and won cash prize? What did you do with the money? Did it go to your savings or you just spend it all because it was extra cash. It was no harm to spend it yourself, right? What if you win a $100,000 one fine day? What will you do with that much of money? If you don't have a proper plan for your spending, it will all go to waste. Get rid of all the negative thoughts from your mind. Think positively and how you can do so many positive things if you had a lot - 19 - of money. You need money to help others who are less fortunate, give them a roof above their head. Some of the richest men in the world are the most generous people as well. Bill Gates has pledged to donate half his wealth and have asked other billionaires to take the pledge as well. Mark Zuckerberg donated to $100 million to schools in the state. If you have good intentions, money will help you towards achieving your goals. If you have people around you who have negative thoughts, try to avoid them. The closest people to you affect how you think and what you do. Meet new people who are positive about money and life for that matter. If the negative people are in your family, then not to let their thoughts creep in yours. Follow the lessons of great figures and mentors. Do what they did and you don't have to reinvent the wheel. Just implement what they have done before and apply your own ideas to it. If you want to start a business, you don't have to come up with a mind blowing and complex idea. Think of something simple and how you improve it.
The Basics
The irony about business and wealth is, the more you think about making money only for yourself the harder it is for you to become rich. In order to be truly wealthy, start thinking about others. How can you help people get what they want? Do you have something want a product or service that others require? When you start helping people by providing your products and services you start to make money. The more people you serve the richer you become. The way people like Warren Buffet and Bill Gates think about money is totally different compared to a layman. They don't work for money but put money to work. Bill Gates is the founder of Microsoft. He found a solution in the personal computer. No one really knew what it was used for. They didn't know it was going to become one of the most useful inventions ever. Today every household has a personal computer. Can you imagine a world without computers? There would be no Facebook, YouTube, emails, social media and there won't be an internet in the first place. Think big, how can you provide massive value to the world.
You don't have to come with a high tech invention to become wealthy. Perhaps something simpler and practical. Have you ever given a thought on how our lives are much easier due to some ingenious creations? What do you use when you want to leave a short memo for your family or colleagues? Something you can stick on the fridge or the computer. You use Post-IT's a simple piece of yellow paper that has a sticky adhesive. It made the inventor a very rich man. The funny thing is, the invention was an accident. The scientist was trying to come up with strong glue but instead what he got was a weak adhesive that did not stick properly. This silly mistake made them millions of dollars. Don't you wish you made more mistakes like that? Don’t be afraid of failure Like the Post-It story, there are many more tales of success that began from an honest mistake. What does it tell you, you have more to lose if you don't try? Don't be afraid of failure. Learn as much as possible and take action. One of the fastest ways to riches is to fail fast and quick. Which means if you want to reach success faster, don't wait too long. If you want to start a business, just do it. Don't let others tell you why you can't do it, or tell you that it won't work out. - 8 - At the same time, that doesn't mean you need to go out there and purposely fail at something. Take calculated risk and get some knowledge. Only then you will be more prepared to start your business or any other venture. Warren Buffet bought his first stock when he was 11 years old. Even then he regretted not starting at an earlier age. Why did a young boy had a thinking far mature than most adults. He saw an opportunity of getting stocks at a low price and his principle was to hold it, and hold it for a long time. Today Berkshire Hathaway owns more than 60 companies in the world and some are big names like Coca Cola, American Express and many others. Would you like to learn the way they think about life and money? Popular figures like Bill Gates and Warren Buffet are not afraid to take risks and work their way to the top. They know how to take calculated risks. Stop being a perfectionist If you are a perfectionist, it’s difficult for you to get started with something. If you are working on a project, you want to make sure you have all the angles covered. Even if one little detail is not proper, you will not be happy about it. - 9 - Being a perfectionist is not a crime but if you want to be like the rich, you have to be more forgiving. The path of success is messy and a most of the times you will be going through a lot of ups and downs. Are you going to stop yourself from moving forward because of a little imperfection in your life? Don't be afraid to get your hands dirty and just do it. That is the fastest way to learn something. If you want to start an online business but you don't know how to set up a website, create content and set up a payment system, just learn as you go. If you are planning to create your website after you learn everything there is to know about it. It is going to take a lot of your time. What if you just take a dive and learn by actually creating the website. If you hit an obstacle or not sure how to do something, there are so many sources you can look for answers. Search for it on Google, or look for a video on YouTube. Which way do you think is going to take you less time and get your site up and running for your online business? Focus on opportunities instead of problems How do you feel when you encounter a problem, do you feel stressed or you start to think how you can solve it. The Chinese word for "Crisis" consists of two characters which represents "danger" and "opportunity". How you view your problem might be seen as an opportunity by another person. - 10 - It is a matter of perspective and your mindset. Soichiro Honda was on such person. When Japan was hit by the Great Depression in 1930s. Mr. Honda began to develop the piston ring in that period. It was a still a new concept but he had a fascination by cars from an - 11 - supplies of raw materials. This man really went through it all and was still persistent to be successful. He then began collecting gasoline cans that were thrown away by US fighters. It became his only source of raw materials for his piston ring manufacturing process. Finally in an unfortunate turn of events, an earthquake destroyed his factory. Once the war was over, shortage of gasoline supplies left many people without any sort of transportation. They had to walk or used bicycles to travel. Honda created a small engine and mounted it to his bicycle. His neighbors’ saw his clever little invention and wanted one as well. However even after he tried, he wasn't able to meet the demand. Instead of giving up and blaming it on fate. He started thinking of a way and wrote a letter to 18,000 bicycle shop owners to help him in his quest to rebuild Japan. About 5000 people gave him the green light and gave him some capital so that he could start working on his little bicycle engines. After revising his design and making a really compact engine, his invention was a success. Honda began exporting his little bicycle engines to Europe and America. At the moment, Honda Corporation has over 100,000 employs from Usa and Japan. It is one of the largest automobile companies in the world. It was because of one man’s undying attitude to failure and spotting opportunities. - 12 - The different types of riches Everyone is chasing after money and wealth. The media portrays the rich person as someone who is enjoying the ultimate life with their yachts, Ferraris and expensive holidays. However there are many types of riches, besides they type of people shown on TV shows. The low profile rich This people are the eccentric of the riches. The way they earned their wealth is mostly through the arts and sciences. They lead a life full of purpose and cause. Sometimes they don't seem like rich people because the way the dress or behave is different. They are more concerned about their work and social causes than to focus on material wealth. The corporate rich These people are the some of the most hard working people you will ever meet. They went through the corporate ladder and rise up the ranks to hold high positions in the company. They are the high profile people in the financial world. Frequently appears in the news and have very strong corporate goals and able to make prompt decisions confidently. Usually their wealth is passed on the next generation their children. Which leads to the next type - 13 - The Inherited rich If you have heard of the Hilton family, then you will know how where they got their wealth from. The wealth is passed down from the older generations. These are the lucky ones who don't have to work a day of their lives. Their wealth is preserved by solid investments over the years in businesses and companies. The New Rich Actors, athletes, singers and entertainers fall in to these categories. They would have been come from rags to riches, and went through the hard life. Their wealth would have been created in such a short time that they earn millions every year. The Super Rich This category is for the movers and shakers of the world's economy. If you remember the Pareto's rule that states, 99% of the world’s wealth belongs to 1% of the worlds richest. They are in this group. Hard work, intelligence and a little bit of luck has brought them all the wealth. However they have a proper strategy for gaining all their wealth. The Banker, Millionaire and the Ferrari There was a story about a millionaire who walks into a popular bank in New York City and he meets a loan officer. He tells the officer that - 14 - he's going overseas on a business trip for few weeks and he wants to borrow a small sum of money, $5000. So the banks asked to give collateral and he showed them his bright red Ferrari. The loan officer checked his paperwork and the Ferrari did belong to the guy. Right after he went off, the loan officer drove the car to the underground garage. He thought to himself, "what an idiot he is, so rich yet dumb". Two weeks later the guy returned, he paid $5000 plus an interest of $15 dollars. The loan officer got really curious and asked him a question." We found out you are actually one of the wealthiest men in America, why would you need to borrow $5000, cause it doesn't make sense." The guy smiled and said “Can you tell me another way I could have parked my new Ferrari in the middle of New York, for just $15, and still expect it to be in perfect condition when I get back? He walked out of the door leaving the loan officer stunned but he smiled thereafter. He thought to himself what an intelligent guy is, no wonder he's wealthy. In this story, the guys saw an opportunity and he took advantage of it. Not many people thought of it but he did. These are the kind of thinking that most rich people have. How can you get the most out of a situation? Always think of all the possibilities. - 15 - The 4 types of income earners What is the usual advice to a youngster who is still schooling? Their parents usually tell them to go to a good College, score good Grades and join the corporate world. With good qualifications, you will climb the corporate ladder swiftly. But most of the wealthiest people in the world didn't go to a college; some dropped out and didn't work in a 9 to 5 job, at least not for long. They started their own business or money making machine because it gave them an advantage. They were in charge of their own fate and had no bosses to tell them what to do. They had freedom to whatever they wanted. There is a powerful conce - 16 - Unless you’re a high income earner. Most professionals have that ability but they are still tied to their job. Self-employed These groups of people work for themselves. Usually freelancers, they still work for people but has the ability to command a high fee if they are really good. But they are still limited to their own ability and talent to earn money. Business owner This are the people who runs the show, they have their own business to derive an income from. A set of system run by a group of people who works for you, that's a business. It's a sure way to get rich, if you know what you are doing. Investor This is how the rich get richer. Once they have accumulated massive riches, they began to invest to grow their wealth. They usually invest in share market, properties and startups. This how the goal of every person with an aim to make it big. They make their money work for them. According to Robert Kiyosaki, most people are in the employer and self-employed quadrant. That is the reason most people are struggling make enough money to be put into savings. - 17 - In order to be rich, we have to cross from these two quadrants to the business owner and investor quadrant. Which means instead of working for people and limiting yourself, you can get rich faster by starting your own business and investing your money in other ventures? It takes courage and a level confidence to face the risk by starting your own business. If you are not willing to take a risk, you will never know what you might achieve on the other side. Are you willing to think like the rich? Limiting beliefs about money The major difference between a rich and a poor is usually how a rich person lives the fast life, driving fast cars, going around the world for holidays and living in big mansions. They have achieved a financial freedom in their lives. It gives them the chance to do whatever they wish to do. However that's only on the surface. The difference between the rich and poor are their limiting beliefs. It has a common thing to hear, when a person wins a million dollar jackpot out of the blue, they won't have that wealth for very long. They will start spending it on their family, friends and everyone in between. Only to wake up and realize that all their wealth is gone. It shows the person had a lot of money but he had poor beliefs. That's how the wealthy build their wealth. - 18 - Most people think of money as an evil thing. That itself is a negative thought. Money is just a neutral things and it's used to put a value on something. It's a medium of exchange. So why do most people feel that way about money. Have you ever felt jealous of successful people who had amassed huge wealth? Do you think of rich people negatively, for instance you when see someone rich, do you think to yourself "where did he get that much of money, he must be doing something illegal." These are the kind of thoughts you need to change otherwise you are actually limiting yourself from getting rich. If you think money is evil, why would you want more of it? What if one day, you became rich all of a sudden? How would you feel? You might be happy for a moment but you might start to think that, who starts to be friendly towards you might have other motives. As if the whole world is trying to take advantage of your new wealth. It's a damaging belief and you will be paranoid at every little thing. Have you ever joined a contest and won cash prize? What did you do with the money? Did it go to your savings or you just spend it all because it was extra cash. It was no harm to spend it yourself, right? What if you win a $100,000 one fine day? What will you do with that much of money? If you don't have a proper plan for your spending, it will all go to waste. Get rid of all the negative thoughts from your mind. Think positively and how you can do so many positive things if you had a lot - 19 - of money. You need money to help others who are less fortunate, give them a roof above their head. Some of the richest men in the world are the most generous people as well. Bill Gates has pledged to donate half his wealth and have asked other billionaires to take the pledge as well. Mark Zuckerberg donated to $100 million to schools in the state. If you have good intentions, money will help you towards achieving your goals. If you have people around you who have negative thoughts, try to avoid them. The closest people to you affect how you think and what you do. Meet new people who are positive about money and life for that matter. If the negative people are in your family, then not to let their thoughts creep in yours. Follow the lessons of great figures and mentors. Do what they did and you don't have to reinvent the wheel. Just implement what they have done before and apply your own ideas to it. If you want to start a business, you don't have to come up with a mind blowing and complex idea. Think of something simple and how you improve it.
Intro - IDEA Researching Rich How The Wealthy Get That Way
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