Finance | Biz Info - Part 2

Category Archives: Finance

From Entrepreneur to Millionaire – See the Difference!

“I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up and boy does that help, particularly when you have a long run ahead of you.”

~ Charlie Munger

Have you ever wondered what entrepreneurs did to become millionaires? and how they easily became multi-millionaires?
They became millionaires because of their dedication, patience and focus. They became multi-millionaires so easily because after reaching their first million, everything else falls into places.

However, they say it’s difficult to reach their first million. Why?

Because most entrepreneurs often hold themselves back from the following mentalities:

1. Not believing in yourself.
The biggest thing holding you back from becoming successful it’s the fact that you don’t believe in yourself. Instead of second-guessing every move you make, trust your gut and go with your intuition instead of waiting for insights from those around you.

As Dale Carnegie once said, “Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.”

2. Doing everything yourself.
Despite wearing multiple hats and being a jack of all trades, it’s impossible to do everything on your own. Let’s say that you just launched a startup. You need to hire talented individuals who enhance your strengths and pick up the slack in your weaker areas.

Learn how to outsource and delegate the tasks that you’re not familiar with or aren’t as strong in. This is one of the secrets that entrepreneurs rarely tell you, but it’s essential if you want your business to grow.

3. Spending everything you make.
It’s tempting to go out and buy a luxury car after receiving a six-figure check. The thing is, wealthy people know how to live below their means, as opposed to spending everything that they just made. Many wealthy people, such as Warren Buffett, live in modest homes and drive practical cars.

4. Setting unrealistic expectations.
While the wealthy definitely dream big, they also set realistic expectations. They’re well aware that they’re not going to become millionaires overnight. It takes a lot of hard work and patience to achieve their goals.

As any marathon runner will tell you, you can’t expect to run 26 miles without the proper training and conditioning. Review the progress you’ve already made and where you’re headed.

5. Spending time with the wrong people.
The rich don’t waste their time by associating with the wrong crowd. I’m talking about the naysayers and negative people who keep telling you that you can’t achieve your dreams, or the people who are using your success to their advantage.

Instead, the rich spend time with like-minded people who are driven, passionate and thinking about how amazing their future is going to be. They are always building their brand.

6. Relying too much on plastic.
Credit cards can be useful if you need to build your credit or invest in your business as long as you’re smart with how you use them. It’s incredibly easy to get yourself into credit card debt. That means that instead of making wise investments or putting money into your business, you’re busy paying off your credit card bills with those high interest rates.

7. Not planning for the long run.
The wealthy have a knack for always looking toward and planning for the future. They know where they want to go and what it will take for them to achieve success. This allows them to anticipate any obstacles and have a plan in place to handle those challenges.

If you are starting a new business venture, you need to have a long-term plan that addresses how to attract and retain clients and customers and outlines how you’re different from the competition.

If you have any or all of the above mentalities, don’t let it stand between you and your first million.

10 Habits of Self-Made Millionaires

These are the 10 nuggets of gold – Habits of Self-Made Millionaires. Statistics show that these are the common straits of such people, regardless of whether they are born rich or poor. What sets millionaires apart from the average people? Were they born into the right family? Did they strike the lottery? Research shows that they have these traits in common.

1) Thinking in Abundance

There is no shortage of money on this planet, only a shortage of people who think correctly. As you are reading this, there is $2.3 TRILLION dollars circulating around the globe everyday, and that amount is destined to grow throughout time!

2) Surround Yourself with Like-Minded Individuals

You are the sum of 5 people you spend the most of your time with. As the risk of being portrayed as arrogant, rich and successful people value their network of friends, because rich people build rich networks!

3) Shift Focus from Spending Money to Making Money

Instead of becoming a consumer, become a producer. Instead of buying more, sell more. Instead of attending seminars, host seminars. Instead of buying books, sell books. You get the idea. Not that there is anything wrong with consuming, it is simply that rich people produce more than they consume.

4) No TV

Did you know why you don’t see ads on Lamborghini on TV? It is because the people who can afford them don’t waste time sitting on the couch!

5) Multiple Streams of Income

The rich people have multiple streams of income and don’t just depend on one. Income streams could be from property rentals, investment in stocks, royalties from book authoring, full time jobs, side hustling, hosting webinars, etc.

6) Be Generous

The truly rich people think about serving others and giving back to the community. The currency of real networking is not greed but generosity.

7) Have an Exit Strategy

Everytime you hear someone become a success overnight, it is backed by effort and turmoil. Ultimately, all the multi-millionaires and billionaires get their break when they sell their business away – which is actually the ultimate exit strategy. Whatsapp was started in 2009 and sold for $19 BILLION in 2014!

8) Get into Properties

This is the most time tested vehicle to creating and protecting your wealth since centuries ago. If you really don’t know what to do with the excess of your money, you cannot go wrong putting them in properties.

9) Leaders are Readers

For the rich and successful, learning never stops even after graduation.

10) Always be Hustling

All the tips, tricks and trade secrets won’t amount to anything if you just sit around and do nothing. As you see, successful people are not necessarily smarter or more talented. They simply hustle or work more even when the going gets tough.

Using Google Trends to check Traffic

Using Google Trends to check traffic for certain keywords is useful. This is especially so if you have ecommerce store and want to scale up to next level. Some people dream of success while others wake up and work hard at it. Proverbs 10:4 – A slack hand causes poverty, but the hand of the diligent makes rich. Proverbs 14:23 – In all toil there is profit, but mere talk tends only to poverty. These 2 verses also remind me to continue to work hard and not give up easily. Like in the case of my Shopify store, it is easy to just throw in the towel and give up. But I shall give it another shot and work at it diligently, sourcing for winning products.

Instagram Influencer Engagement Calculator

I just learnt from Gerald Soh about Instagram Influencer Engagement Calculator where you can view the number of followers, engagement rate, likes and comments from a sample here >> https://phlanx.com/engagement-calculator?insta=sebastiangomez. Just Google for Instagram Influencer Engagement Calculator and you will find a list. This is a very useful feature especially for Shopify owners who want to scale their business to the next level by getting these influencers to post and get some sales for them. I am also taking my time to learn bit by bit an not rush into it. There are many free videos out there that you can learn for almost next to nothing. Almost 99% of these videos are created by men.

10 Powerful Habits of the Ultra Successful

Above is an infographic that is self explanatory. One of the habits is networking with people smarter than you or successful ones. Birds of a feather flock together. Another is to diet and exercise like playing futsal, soccer, sports, tennis, swimming, golfing or cycling. I should also add, that one needs to have a hobby too like playing the guitar, organ, piano, flute, etc. Others include blogging, writing articles, or even moonlighting part-time by being a freelancer and bid for jobs. Craigslist.org is a good place to look for free jobs online and you don’t have to pay anything, unlike Upwork.com, Freelancer.com, even though these sites will always have constant jobs offers.

Tomorrow, on a short notice, I shall be going down to Kuala Lumpur with my married business partner due to issues in a condominium, visit other places and then head to Ipoh on Friday. We just put our pet Pomeranian puppy in a pet hotel for 3 days or so. The 2 white Holland Lop rabbits will be taken care of by the workers in another place. Such is my life of travelling and working. Sometimes, I wish to have a family of my own and not travel so much with someone special.

How Rich are you? Here is the Benchmark

Credit goes to KCLau for this article: How rich are you? Most people are reluctant to answer because there are only 1% of the population are rich! However, if you are to respond to such a question honestly, what would it be? Would you answer “I have two houses, three cars, a few FD, etc.”, or “I am worth RM300,000?, or “I earn RM20,000 a month” etc.

There are many ways to state our wealth. In fact, wealth is more appropriate to be indicated by “time”, not the amount of “asset” we have.

This is the formula:

Wealth = How long we can continue and maintain our lifestyle without working?

According to the above formula, this is how we should state our wealth:
I can maintain my current lifestyle for ten years without working. How long would it be for you? How wealthy are you? 3 months? 1 year? I read the book The Millionaire Next Door back in 2001. It is a marvelous book!

Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.

One’s expected net worth (ENW) = Age X(Realised Pre-tax Annual Household Income exclude inherited income)/10

Example, Mr. Lee’s annual income is RM100,000, age 35.
Lee’s expected net worth = 35 X RM100,000 /10 = RM350,000.
According to Dr. Thomas J. Stanley (the author), there are three categories of wealth accumulator:

1. PAW – Prodigious Accumulator of Wealth
2. AAW – Average Accumulator of Wealth
3. UAW – Under Accumulator of Wealth

If Mr. Lee’s net worth is RM800,000, which is more than two times of ENW, he is a PAW.
If Mr. Lee’s net worth is RM50,000 only, which is less than half of ENW, he is a UAW.

Let’s calculate ours, which category do you belong to?

Simply, just divide your age by 10, and multiply it by your current income. This should give a rough estimate of your expected net worth should be.

31 Days of Productivity

31 Days of Productivity

The above infographic showcases 31 days of productivity. Here are some of them that I shall pick up at random. Drink water as soon as you wake up. It is recommended to drink 2 glasses each morning before breakfast due to the 8 hours of fast or sleep. Organise your workspace and declutter unnecessary stuffs. Meditate for 10 minutes to recharge your inner being and rejuvenate your soul from the hustle and bustle of working life. Choose one task and automate it or delegate it. Let someone better do the troubleshooting if that is your weakness and spend productive time doing something else that you are good at and earns you more money.

Don’t spend too much time doing mundane things that appear to be your weakness and instead, concentrate on doing something which is your strong point. Eat a healthy meal such as fruits and vegetables, minus the carbohydrates if possible. And don’t forget to hug someone who loves you; could be your pet! 🙂

Reward yourself for your biggest accomplishment of the month. And whatever money you made, try to spend less than you earn for a golden retirement in years to come. Hopefully it is not woeful one like a real case in point: an accountant was afflicted with diabetes and could no longer work; finally without constant income, he had to sell off his house and live in the streets, becoming homeless with no family or friends to visit him. Such is a destitute case despite being a professional in his younger years! This is one extreme case, but we always hope and pray for the best and be generous to others so that wealth will come to you. What you fear in your heart may become a reality. So always focus on positive thoughts despite all the negative news and events happening worldwide.

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