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.

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...



.


.


.





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.

$$$ 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.

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...

Chapter 6: Commanding the Highest Price Tag

What Determines A Person's Income?

Why is it that one person is paid $3,000 a month and while another person is paid $30,000 a month?

The Ttue Definition of Income is:

INCOME = VALUE x TIME x SCALABILITY

A person's income is determined by the amount of value he/she creates multiplied by the time he spends creating value multiplied by the scalability factor.

So how can you Create Value?

There are only 2 ways you can create value for your company. Either:

1. Help your company to increase sales or


2. Help your company to reduce costs.

How to Translate Value into More Income?

Once you have created tremendous value, you can...

5 Steps:

1. Ask for a Pay Increase ( Be confident that you are more than worth the increase!)


2. Ask for a PROMOTION & Pay Increase ( When you have demonstrated that you can create more profits, they will be happy to give you a senior management position.)


3. Ask for Profit Sharing ( if you dare)


4. Ask for variable compesation


5. Ask for Stock or Partnership ( if you dare)

Chapter 5: The 4 levels of Wealth

LEVEL 1: Financial Stability

You have achieved financial stability when:

1. You have accumulated enough money to cover your current expenses for a minimum of 6 months.
2. In addition, you have bought life insurance to protect you and your family's lifestyle should you be permanently disabled, unable to work or pass away.
   
   

LEVEL 2: Financial Security

You have achieved financial security when:

1. you can stop working and maintain a very basic lifestyle.
2. that means you have enough money to cover your MOST BASIC expenses, food,houses,etc.
   
   

LEVEL 3: Financial Freedom

You have achieved financial freedom when:

1. you generate enough passive income to sustain your CURRENT LIFESTYLE.


2. you being free of financial pressure & worries and work purely out of passion.

LEVEL 4: Financial Abundance

You have achieved financial abundance when:

1. you generate enough passive income to sustain your DESIRED LIFESTYLE.
2. you can live the life of your dreams, bungalow with swimming pool, travel round the world, etc...

Great! Now that you have a clear idea about the different levels of wealth that you can achieve, let's get started by learning how to accelerate our way there. In short, we will be learning how to massively increase our income...

Chapter 4: How the Rich Manage Cash Flow

The True Definition of Wealth

Before you can be truly wealthy, you must first know what wealth really means. Again, many people think that a person's wealth is defined by how much he earns, by the clothes he wears, by the house he live in and by the way he lives.

A person's wealth is actually defined by how long a period of time he/she can sustain their lifestyle if they stop working. The longer you can go on living your life without working another day, the richer you actually are.

Your wealth is therefore defined by 3 things:

1. Your monthly expenses



2. Your Liquid assets



3. Your passive income

Your liquid assets refer to how much cash or cash equivalents you have . ( like stocks, bonds and fixed deposits)

Your passive income refers to income that you will continue to receive even after you stop working. ( like interest, dividends, profits from a business)

HOw the Rich manage the money?

Spend Less than You Earn. Invest the savings for COMPOUND GROWTH Until You Accumulate a Portfolio of POsitive CASH FLOW ASSETS that generate Enough Cash Flow to sustain or Exceed your DESIRED lifestyle.

Chapter 3: The 9 Habits of Millionaires

1: Always Exceed Expectations

Excercise Time: List down at least 5 reasons why becoming rich is important to you?

1. ____________________________________________


2. ____________________________________________


3. ____________________________________________


4. ____________________________________________


5. ____________________________________________
   

Great! Have you done the exercise? If not , please write down AT LEAST 5 reasons before continuing.

Here is Million's list of reason why becoming rich is important.

1. Financial Freedom***



2. I want to travel round the world



3. Give my family members and kids the best in the world



4. Write my success story and publish out



5. Die beautifully



6. Live my life to the fullest



7. Retire early



8. Set up a business



9. Drive Maserati

How many reasons did you write down? Did you write down less than 5, exactly 5, or more than 5?

The Results:

1. more than 5 = Excellect! You have a millionaire's mindset! YOU DO MORE THAN EXPECTED



2. exactly 5 = Good but can be replace easily. YOU DO EXACTLY AS EXPECTED



3. less than 5 = Poor and you are an expense. YOU DO LESS THAN EXPECTED

So once again, the 1st unbreakable wealth habit is to always do alot more than expected! Exceed expectations and your wealth will multiply massively.

2: Be Proactive

I will help you recall what is proactive.

Proactive people = They make things happen.

Reactive people = They wait for things to happen.

By having a proactive mindset, you put yourself in the position of power and choice. So be in control of your life now.

3: Take 100% Responsibility

Be in control of your life. Anything, just say YES first then think of solutions later...

4: Delayed Gratification

The key to 'delayed gratification' is patience. What keeps most people from becoming rich is the habit of wanting instant gratification. Instant gratification is the habit of always wanting to enjoy now and not having the patience to wait for future benefits. As a result, these people spend alot more than they invest.

Here are the 2 types of gratification:

• Instant Gratification ( Spend more than Invest ) HABITS OF THE POOR
• Delayed Gratification ( Invest more than Spend) HABITS OF THE RICH
  

E.g. Some people think nothing of spending $3,000 on a bag but think twice before buying a good book for $30! ( i do that...hai... don't follow me k)

So guys, let us develop the habit of delayed gratification- spend wisely- and we will be able to see our money grow.

"You can pay now and play later or you can play now and pay later. But either way, you're going to pay. The problem with waiting to pay later is that the price is higher because you pay it with interest." - John C.Maxwell

5: Do what You Love

You CAN became a millionaire in insurance, property, option tradings, pest-control, retail, food or internet marketing ONLY when you are one of the best.

You will find that in ANY industry, there will be a minority who will be making plenty of money, while the majority will be struggling to survive.

You may hear stories of property agents earning more than $1 million a year. Again, this is the minority. The majority will be just making enough to get by.

So, to be successful, love what you do. Successful individuals do not distinguish work from play. They love to do it so much that they would even do it for free. Thus, they keep working harder and harder.

a.The WRONG method:

1. Work hard
2. Make enough money
3. Do what i love

b.THe CORRECT method:

1. Do what i love
2. Make money
3. Continue to do what i love

So start asking yourself...

• 'What do i love to do?' What would i do even if i didn't get paid?'


• 'If i had all the money in the world, how would i spend my time?'


• 'Who are people who have made their fortunes around this passion i have?'

6: Acting with Integrity

Of cos there are unethical & unscrupulous rich people around, but incidentally, their wealth & businesses rarely last. ( rich people always have sad endings from TV dramas )

So always remember: RULE 1 - ' Be honet with people'

" It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you'll do things differently." - Warren E. Buffett

7: Be 100% Committed

DO you want to be rich? Let me ask you another question: Are you 100% committed to be rich?

There is a very big difference between wanting to become a millionaire and being 100
% committed to becoming a millionaire. When you merely want, wish or hope to achieve a goal, it will rarely ever happen.

Studies have shown that, when you are 100% committed to a goal, it becomes a absolute MUST.

When something is a MUST, you will do whatever it takes to get it( of course its within your limits)!

(Tomorrow, i'm going to design my company name cards with the title 'Priscilla Tang-CEO'.)

This book is good. It says: Do whatever it takes to finish this book and apply what you learn, and i will guarantee that your wealth will multiply many-fold.

That means: i MUST finish the book.

8: The Ability to Turn Failure into Success

Most people have the impression that successful people never fail and that millionaires never lose money. This is a huge lie.

The truth is that everybody fails at one point or another.

In fact, millionaires fail more times than anybody else because they take so much more actions.

So everybody be prepared: You will fail many times before you ever succeed. What's important is what you do about the failure.

There are 3 ways:

1. Give up
2. Try again
3. Change strategy

Which one did you choose?

1. Give up- You are not meant to succeed to become a millionaire.

2. Try again- ( Will you suceed eventually? The answer is : NO!!! ) This group of people may try and try again but they don't change their strategy. They keep making the same mistakes, doing the same things again and again. What's the point?

3. Change strategy- Little people with choose this. When you see failure, take it as a learning experience, a feedback, change your strategy and take action again. This group of people will do whatever it takes UNTIL they succeed.

9: Respect & Love Money

Exercise Time: Now write down as many answers to the following statements. Write down at least 40 ( that's right... forty!) associations.

Money is...

_______________________________

_______________________________

Having Money will...

_______________________________

_______________________________

Rich people are...

_______________________________

_______________________________

Other Beliefs/Associations about Money...

_______________________________

_______________________________

Give yourself a pat on the back for completing the exercise. I know it wasn;t easy, So what have you uncovered?

What beliefs or associations do you have about money? Are they positive or negative? Good or Bad? What beliefs do you have about rich people? Do you respect or resent them? Do you admire or loathe them?

If you resent rich people and think that they are bad, then your unconscious mind will NEVER allow you to become rich.

Why?

This is because if you become RICH, then you will become a 'bad person'.

Common Negative Beliefs about Money.Do you share any of them?

• Money is evil ( Actually, the lack of money is the root of all evil!!!! The NO.1 cause of murder, stealing, lying is -lack of money.) Hai... i always tell people that money is evil, now i'm wrong!!! No money then is evil!



• Rich people are materialistic. They worship money ( It is the poor people who lack money who worship it. Who works all day, year after year in a job which they hate, just for money? Who is wishing they had more money? Who is constantly worrying about money? Who are those who constantly scarifice their health and family to make more money? It is those who are rich or those who are poor? In fact, the rich rarely work for money. They work because of passion and a sense of personal mission. )



• Money will make you lose all your friends



• Rich people are greedy and selfish



• Rich people are stingy



• To get rich, you must be lucky,dishonest or really smart



• Money will not buy you happiness ( True. However, not having money will not make you happier as well. Isn't it better to be unhappy with money than unhappy without it?)



• Money isnt that important anyway



• Having more money means i will look down on people



• Having a lot of money will change you ( into a bad person) ( Money is a personality magnifier. It brings out the true person within you. If you are a selfish and nasty person by nature,having money will make you even more nasty and selfish. However, if you are a kind, genous and loving person deep down inside, money will magnify your goodness.)



• If i have more money, i will have more worries and problems



• There are less opportunities to make money nowadays



• Money isn't everything ( This is the top excuse given by poor people who are in denial. The truth is that everything is money. Without money, you cannot maximize other important values such as famiily, career, health, relationships.)

That's the end of this chapter, hope you have POSITIVE feelings about money now and becoming a money magnet soon!

Very tired.... i got to sleep. Good nite. Zzz

Chapter 2: 7 Steps to Financial Abundance

In case you guys do not know what Financial Abundance means, i have google the meaning.



Financial Abundance = A lot of money



There are alot of ways to become a millionaire:

1. He may have make his million in real estate
   


2. She may have made her money by providing children's education
   


3. some people can inherit their money
   


4. Won lottery-Heng



5. Have a marketable talent like singing
   

However, if you do not know how to protect your money, you will usually end up losing everything you have.



So it is important to start learning on the 7-steps formula to financial abundance. This is a skill that will stay will you forever.




Step 1: Adopt the million-dollar mindset



Millionaires think very differently, take different actions and produce different results.



E.g. When you see a piece of vacant land, what do you see?


Sand right?



A lot of people will see sand.



But millionaire see different things.



Millionaires will tell you that they see the tallest building. They will tell you that when the sand is mix with water gives you mud. Muds mix with heat gives you concrete and eventually concrete is use to build buildings...




So in short is : if you want to be a millionaire you got be a bit more crazier...



Step 2: Set Clear Financial Goals





Begin with a clear goal in mind.





Step 3: Create A Financial Plan





Step 4: Massively Increase Your Income





Step 5: Spend less than you earn





Step 6: Grow your money at millionaire returns





Step 7: Protect Your Fortune

Guys, this chapter is too boring.... you picture yourself from step 3 onwards ok? When i have time then i edit again.

Chapter 1: Secrets of A Self-Made Millionaire

Reasons why i am not rich yet...

There are 2 types of reasons:
1. Self-created reasons- ( Winner's mindset)
2. External reason- (Loser's mindset)


Here is Million's list of reasons why i am not rich.
The one in red are self-created reasons . Do you have more 'self-created' reasons or 'external' reasons?

1. i have not enough money to make more money


2. i love to enjoy life- cant resist travelling, buying branded bags... Aiyo


3. i have no opportunities- Never have a chance to meet any rich guy or rich customer yet


4. i lack the qualifications- I'm going to get my degree soon


5. i am still young and i am too playful- I'm a friend 'first', money 'second' person


6. i have no solid plans in mind


7. i am afraid of hardwork


8. i have bad luck


9. i lack of discipline


10. i have too many time wasting activities

I'm surprise to see that i have a victim's mindset... What's wrong with me?

So guys, this chapter teach us about Mindset. A WINNER's & VICTIM's mindset.

If you take 100% responsibility and ownership for the result in your life, you have a winner's mindset. Congrats!

If you always give excuses , envy others, blame others and complain alot, then you have a victim's mindset and you need to change your mindset first before you can be rich. Hai...

It's all in your mind! See you next chapter...

Project 1: Secrets of Self-Made Millionaires

Who wants to be rich? Everybody does.

But the question is HOW?

SO one day, i was browsing the book store and i came across this book- " Secrets of Self-Made Millionaires". Immedicately i bought it.

Now, i'm going to put is book into TEST, to see whether this book really works.

I'm going to give myself a challenage:

TO Complete the book in 20 DAYS. A Total of 20 chapters.

Wish me good luck!