Chapter 8: How to magnify and Multiply your income

Let me ask you a question:

Between a pop star like Madonna and a heart surgeon, who creates greater value in a person's life?

Ans: of cos is the Heart Surgeon!!! The heart surgeon has the ability to save a person's life whereas Madonna can only make a person feel good for a couple of minutes.

So why Madonna is paid 100,000 times more than a heart surgeon?

The answer is 'Scalability Factor'.

The scability factor is the final and most powerful component of the income formula. It is what separates the rich from the super rich. The scalability factor is the extent to which you can magnify or multiply the effects of your value.

The Power of Magnifying Value

For example: for 3 hours work, how many lives can the heart surgeon save?

He can probably only save one life.

He creates tremendous value, charging probably $20,000 for an operation. But he can only touch one life.

In that same 3 hours of performing in a concert, how many people does Madonna's singing benefit?

Thousands and if broadcast live, maybe even millions.

So the value she creates is magnifies tremendously whereas the surgeon does not have the power of magnification.

2010 Resolution List

Hi Guys, its been awhile since i blog as i was a little busy . *excuses* :)

OK now, say bye to 2009... Bye and Welcome 2010!!!

Here is my 2010 resolution list:

1. SAVE. S$24,000 per year
2. INVEST. S$24,000 per year
3. Shed 5kg so that i can wear back my LEVI's jeans.
4. Lasik surgery. ( Heard that there is a new anti-blade surgery)
5. Lead a Sales Team and earn more $$.
6. 2 Trips--- to be plan
7. Continue to blog on interesting stuff.
8. Be neater.. ( i'm just being humble)
9. Learn to be calmer.
10. Quality check.If you want to do something... do it properly.. dun just anyhow do it.

Where is my 5B's Prospect?

Money= Man Talk
Men seem to naturally drift into talk of stocks and shares over dinner or even msn.. But when women meet up, discussing money matters is the furthest thing on our minds.


Well, finance has traditionally been a male domain but that should change.


Talking about money with your girlfriends can motivate you to think about your finances for long term. Not only can you share tips and advice, you can support one another too.


SO you may be asking, what topic should i talk with my girlfriends??? Let me help you get started.


The one interesting topic to talk about is MEN! Sad to say, we can't live without man and finding the right man is tough too. But don't worry, remember our guideline on finding man..... The 5c?

Girls, let me update you. It's no longer the 5C man! We 20th century girls have upgrade already....

Now we look for the 5Bs man! Remember it is the 5Bs man k.

What is 5Bs man? You never heard of the 5B man right... Let me tell you.

THE 5Bs that a Man should have is:

1. Billionaire
2. Brain
3. Bungalow
4. BMW
5. Body

Hahaha.... Very true right.

So now, i have found 10 of this prospects in SINGAPORE, specially for you.... Wanna know who they are?

Here we go...here we go...



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Top 10 Richest Man in Singapore




No 1. Ng Teng Fong


BUSINESS: Far East Organization
AGE: 79
NET WORTH: S$6.7 billion
STATUS: Married, 6 children



PROFILE: Through Far East Organization has developed more than 700 hotels, malls, condos in Singapore. Has extensive Hong Kong portfolio. Other interests include food and drink maker Yeo's. Older son Robert oversees Hong Kong interests; younger son, Philip. manages Singapore interests.









No 2. Eric Khoo & Family

BUSINESS: Inherit forture & Filmmaker
AGE: 44
NET WORTH: S$5.7 billion

Profile: Late banker Khoo Teck Puat left fortune to 14 children. Family sold stake in Standard Chartered Bank 2006 for $4 billion. Real estate holdings include landmark hotel Goodwood Park. Recently gave $32 million to Peking University in China, $70 million for a hospital to be named after their father. Youngest son, Eric (in photo), is noted local filmmaker.

( i decided not to put their picture anymore cos they are neither young nor handsome... ha)

No. 3 Wee Cho Yaw & family

DESIGNATION: UOB Chairman
AGE: 78
NET WORTH: S$3.3 billion
STATUS: Married, 5 children

PROFILE: Succession planning under way at Singapore's largest bank, United Overseas Bank, founded by Wee's father in 1935. Wee, who took control in 1974, stepped down as chief executive earlier this year, handing reins to son Wee Ee Cheong; remains chairman.



No.4 Zhong Sheng Jian

DESIGNATION: Property Developer
AGE: 48
NET WORTH: S$2.5 billion
STATUS: Married

PROFILE:Moved from China in 1988. Began building luxury residences back in his native China 5 years later. Yanlord Land Group now listed in Singapore.



No.5 Kwek Leng Beng & family

DESIGNATION: Hong Leong Group Chairman
AGE: 66
NET WORTH: S$1.1 billion
STATUS: Married, 2 children



PROFILE: Heads Hong Leong Group, an international conglomerate started by father Kwek Hong Png and his three brothers in 1940s. Today interests include property company City Developments; Singapore's biggest finance group, Hong Leong Finance; and London-listed Millennium & Copthorne Hotels. Cousins Kwek Leng Kee (No. 20), Kwek Leng Peck (No. 30) and Malaysian billionaire Quek Leng Chan have separate stakes in vast empire.

( Now then i know that there are Only 5 billionaire in Singapore...i'm surprise man.) So girls,... is millionaire ok for you? No choice.

Let take a look at the next 5..... dont worry if you don't like, we can still expand our network to overseas! Maybe i'll blog it in my next blog. :)

No.6 Kuok Khoon Hong

BUSINESS: Palm Oil Business
AGE: 58
NET WORTH: S$960 million
STATUS: Married, 4 children

PROFILE: Got start working at his uncle Malaysian billionaire Robert Kuok's trading firms. Left in 1991 to cofound Indonesian palm oil producer Wilmar with Martua Sitorus, now an Indonesian rich lister. Merged with Kuok's palm oil business in June 2007 (kept Wilmar name); now building one of world's largest biofuel refineries.



No. 7 Peter Lim

DESIGNATION: Investor
NICKNAME: Singapore's Warren Buffett!!
AGE: 54
NET WORTH: S$830 million
STATUS: Married, 2 children



PROFILE: Son of fishmonger became successful stockbroker for wealthy Indonesian clients; nicknamed King of the Remisiers (Singapore term for stockbroker). Stopped managing other people's money in 1996 to become full-time investor. Held on to stock of winning palm oil producer Wilmar; his initial $10 million investment now worth $700 million. Also second-largest investor in distributor FJ Benjamin.



No.8 Lee Seng Wee

DESIGNATION: OCBC Chairman
AGE: 78
NET WORTH: S$ 650 million

PROFILE: Former chairman of Singapore's third-largest bank, Oversea-Chinese Banking Corp., still sits on board. Also director of family's Lee Foundation. In May appointed chair of Temasek Trust, a civic initiative launched by the government. Fortune down due to new information on family split.



No.9 Denis Jen

BUSINESS: Textile & Trading. Own 5 Shopping Malls
AGE: 83
NET WORTH: S$600 million
STATUS: MArried, 2 children



PROFILE: Orphan fled native China after Communist takeover. Launched textile and trading businesses in Taiwan, Hong Kong before landing in Australia and building real estate empire. Today portfolio includes 5 shopping malls in Australia and pork producer, KR Castlemaine. Keeps low profile.



No.10 Chew Hua Seng

DESIGNATION: Boss of Raffles Education
AGE: 53
NET WORTH: S$595 million
STATUS: Married, 4 children



PROFILE: Former timber trader almost went bankrupt when a shipment was lost at sea and banks called in loans. Invested in Singapore government scheme to start private design school; turned initial stake into Raffles Education, which operates 26 private colleges from China to India to New Zealand.

That the end. Tips for you girls, look for guys that is in the same trade as the above.

Hello Panda ...Compares!

DO your Research... Buy only @ a discount

You can easily save another 15%-25% if you do your research, buying only when there is special discount or buying in bulk.

Before you can ever reduce your expenses and increase your savings, you must first know where your money is going to. Many people share the same experience of having no idea where their S$5,000 salary went. 'How did i spent so much money?' i thought that i should have S$1,000 left at the end of the month but it seems to have all disappeared!!!

If you want to be wealthy, do not expect it to happen automatically. You must commit to spend time on your finances.

So, the first step to massively reduce expenses and increase savings is


1. Do your research... Buy only @ a discount

Don't believe???

Let us now do a case study to prove to you.


Case Study 1: Hello...Panda compares!

Step 1: Do your research and compare

1. Hello Panda Biscuit- 1 box - 57.5g

Price:
a. Sheng Siong: S$0.95
b. NTUC: S$0.95
c. Mama Shop: S$1.00
d. 7-Eleven: S$1.60 - Now promotion: 2 for S1.95 ( Dun buy here unless got discount)
e. Value Shop: S$1.05
f. ABC : S$0.80 (Cheapest* but the packing looks old)
g. Cheers: S$1.20

Comparision: (using the cheapest price to compare) 35g = S$0.49



2. Giant Hello Panda - 10 individual packets- 350g

Price:
a. Sheng Siong : S$4.95
b. NTUC: S$5.60

Comparsion: 1 packet= 35g = S$0.50





3. Hello Panda- 1 tin- 200g

Price: ABC shop- S$3.05 ( Can buy as a gift)

Comparsion : 35g= S$0.53




4. Hello Panda- 1 bigger tin- 450g

Price: Sheng Siong- S$5.80

Comparsion : 35g= S$0.45




5. Hello Panda Family Pack- 12 packets- 216g

Price:
a. Sheng Siong: S$1.90 *Best Buy*
b. ABC: S$3.05 ( Crazy, markup the price so high.. Dun buy here)

Comaprision: ( 2 small packet) 35g= S$0.30

So which is the Cheapest???

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The Result: 5. Hello Panda Family Packet!!!

Surprise right?
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ME SAYS:

This exerise took me less then 30minutes. Now i know. To save, buy the family packet, 12 packets at S$1.90, it is convenient to eat, comes with 4 different fillings, comes in individual packings and i can share with friends and it so much cheaper!!!
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Well, to add on to my research, i have also did a research on it competitor.

Wanna check out how the other competitor fair.....
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1. Huggy Bear from China- 1 box - 55g

Price: Sheng Siong: S$0.80

Comparsion: 35g= S$0.51

2. Mickey Mouse from Japan - 1 box- 47g

Price: S$1.95 *Too expensive!*

Comaprsion: 35g= S$1.45

3. Ego Little Golden Bear from Malaysia- 18 packets- 180g

Price: S$2.25

Comparsion: 35g= S$0.43

Final Verdict:
Need i say more... Hello Panda is still the best!

That's the end of my findings. Bye.

$$$ Lessons from The Material Girl

The Material Girl work extremely hard for her fortune of multi-millions. Follow her tips and you could be a lucky star too.

Madonna's 6 $$$ Tips:

1. Diversify, Diversify
Last year, the pop icon earned S$430 million from her world tour concert. But she isn't confined to just music. She put her name to a clothing line for high-street retailer H & M, written a series of children books, appear in Ad campaignss and most recently she was reportly paid S$10 million for a Louis Vuitton campaign.



How: You may not be the face of Louis Vuitton but you can still diversify like Madonna. You need to be an investor and own a quality portfolio that is spread across assets and countries.

This will give you potential for more consistent returns over the long term and a better chances to acheive your financial objectives.

Do your own research about the companies you invest in, even if they are big and well known companies, and be wary of offers of returns that look too good to be true.


2. Check your own Balance Sheet
The material girl has a reputation for checking all the details of her concerts herself. It doesn't matter if it's a dollar or $10,000, she wants to know about it.


How: You should be involve in your own finances or at least have an understanding of what is going on.

Don't just leave it with your husband or to the professionals. Your hubby may not be more ' money smart' than you, while a professional may be charging you a fee but not taking enough care of your finance.

Well, check your bank or credit card statement every month. Make sure there is no fraud or errors.


3. Be a cautious Investor
She avoid the stock market and prefer to put her investments in old-fashion bricks, owning serveral homes in the US and England.


How: Stock market is not free from risk but it may also give you consistent return over the long term. Similarly, home ownership should be based on your situation and goals, not the potential of a rising market. While buying a house compels you to save, you may not want to be a slave to your mortgage. If you take the plunge, you need to have a good financial framework that takes into account all your financial needs so you're not surviving from just your salary to pay off the house.


4. Don't be afraid to negotiate
After she found out that one of her photographer had pocket $7million from syndicating photos he had taken of her, she insisted on retaining the rights to all future photo shoots, a pioneering move that has since been copied by many stars.


How: Learn how to negotiate. Negotiation requires patience and sensitivity and take time and effort. You should also understand the need of the seller. For example: You may not be able to get discount when buying small items, but you can get a freebie instead.

It is a good idea to have a list of reasons on why something is worth a certain price...


5. Invest in your career
The Queen of Pop always spend on what will help her career. She started her career in modern dance but quickly adapted to disco dancing when she realised that was where the money was.

How: Upgrade your skills could make a difference between keeping your job and being let go.


6. Know When to Splurge and When to SAVE
She owns no boat, private jets or other rockstar toys, preferring to rent rather than buy.

How: Put your money in assets that will appreciate is more rewarding.

Story 4: A Priest & a Nun

A priest was driving along and saw a nun on the side of the road, he stopped and offered her a lift which she gladly accepted.

She got in and Crossed her legs, forcing her gown to open and reveal a lovely leg.

The priest had a look and nearly had an accident.

After controlling the car, he stealthily slid his hand up her leg. The nun looked at him and immediately said, “Father, remember psalm 129?”

The priest was flustered and apologized profusely.

He forced himself to remove his hand. However, he was unable to remove his eyes from her leg.

Further on, while changing gear, he let his hand slide up leg again.

The nun once again said, “Father, remember psalm 129?”

Once again the priest apologized. “Sorry sister, but the mind is weak.”

Arriving at the convent, the nun got out, gave him a meaningful glance and went on her way. On his arrival at the church, the priest rushed to retrieve a bible and looked up psalm129.

It said, “Go forth and seek; further up, and you will find glory.”

The moral of the story?

Always be well informed in your job; Or you might miss a great opportunity.

Chapter 15: Grow your Money at Millionaire Returns

'Risk comes from not knowing what you are doing' Warren Buffett

The Truth is:

Low Risk (not high risk) lead to Extremely High returns !!!

Let me ask you a question:

When comes to investing, most people share the painful experience of getting burnt in the stock market or in unit trusts. What is your first opinion on your mind?

Common man's thinking:

1. ' if i have kept all my money in the bank, i wouldn't have lost half of it'.

2. ' After so many years of buying and selling, i find that after all the effort i merely broke even'. 'i should have keep all my money in the bank instead'.

3. ' Every time i buy a stock, it seems to go down'.

4. 'in order to earn high returns, you must be a risk taker!'

This is totally rubbish!

All of us have been brainwashed by this inaccurate generalization. If you have the same thinking as the above, then you have developed a phobia of investing and formed the belief that ' investing is risky' .

No...

In actual fact, GREATEST investors are NOT risk takers. They are in fact very risk Averse. Warren Buffett will only invest in a stock if it has very low downside and very high probability of success of 90%.

So to be a winning investor, you MUST be a risk adverse!

But if high risk does not lead to high returns then how to be rich?

THe answer is ' FINANCIAL INTELLIGENCE'.

High financial intelligence lead to high returns. When you have high intelligence, there is low risk, because you know exactly what you are doing. When you don't have strong financial intelligence to fully understand the business behind the stock, then investing becomes very risky.

The end...