Tuesday, August 25, 2009

Formula for Success

Today I read the book I bought 2 years ago, 'Your Right to be Rich' by Mal Emery. I just opened randomly at the middle of the page and found something interesting to share here.

According to Mal, there are 4 basic things that we need in order to success:
1. Decide what it is that you want and be specific. Write it down in detail and read it 3 times daily.
2. Believe that you can actually achieve what you've written down and be willing to pay the price.
3. Take action to make it happen!
4. Lastly, the best way to get result is to model someone who already doing what you want to be doing.

These are the things that basically needed for anybody to success in anything they desired. Sound familiar? Yes, I have mentioned some of the points before. And if you go and talk to anybody who are successful, this would be the basic things most of them will explain.

Michael Gerber, the author of best-selling E-Myth once give a talk in a seminar and during his opening speech he mentioned "If you guys have come to hear something new, you're not going to! You see, the problem is you guys ain't doing this sh-t!"

In-fact 98% of people already know this and they lack of step no. 3. I myself have to admit that I have not really there yet at step no. 3. It is not something which is easy, yet it is not difficult either. But most people who is already in the comfort zone will not take any action until the situation become uncomfortable.

So, first of all I need to remind myself to take the first step. How many among us are reading the dream list every day, or every week, or every month?

Wednesday, August 12, 2009

Delayed Gratification

Have you ever heard of the terms "Good thing comes to those who wait"?

So what is delayed gratification? According to Wikipedia

"Deferred gratification
or delayed gratification is the ability to wait in order to obtain something that one wants. This ability is usually considered to be a personality trait that is important for life success. Daniel Goleman has suggested that it is an important component of emotional intelligence. People who lack this trait are said to need instant gratification and may suffer from poor impulse control."
Read more on wikipedia.

How does it work? It is just emotional stuff which if you can conquer the skills, will benefit you a lot. Studies have shown that a person ability of delayed gratification can cause huge success in one's life. The famous experiment was done by Walter Mischel, who invented the marshmallow test. A group of kids were given a marshmallow and they offer another marshmallow if they can wait to eat them for a period of time. Some of the kids just can't resist and ate them while some others can wait, and be rewarded with a double amount of marshmallow. So what happened next, they keep track of these kids a few years later and find out that the person who can wait achieve significant success in their life.

read more at mindhacks
More on the marshmallow experiment, you can read the secret of self-control.

This is how emotions and motivation affect a person. Most of the time people who wanted something in a short period of time will always lose more. Take the 'get rich quick', ah long borrower and briber. They always wanted a short cut to make more profit. But at the end of the day, they are the losers.

On the other hand, people who can wait especially on sure things will always be rewarded more. A simple example is the unit trust or ASB. We know the guaranteed return of ASB, but most of us rather withdraw the cash and spend on some good unnecessary stuff (which is immediate gratification) immediately after we receive the pay-check.

People can make more money from this natural human habit in stocks and bond. When the price goes up, many people with immediate gratification will buy all the stuff expecting a quick return and later losing money. But wise people like Warren Buffet, prefer to invest during a slow economy because it takes time for the economy to recover. But it is surely after the economy going on track, they will make a lot of money.

So why do you think people are spending more stuff when they received their bonus when they know a guaranteed return waiting for them at ASB?
Why most people don't want to involve in business or become an investor?
One word... delayed gratification.

Sunday, August 9, 2009

The Japanese and The Fresh Fish Story

This is a good one. I took it from an e-mail forwarded to me by one of my friend.

The Japanese have always loved fresh fish. But the water close to Japan has not held many fish for decades. So to feed the Japanese population, fishing boats got bigger and went farther than ever. The further the fishermen went, the longer it took to bring the fish. If the return trip took more time, the fish were not fresh. To solve this problem, fish companies installed freezers on their boats. They would catch the fish and freeze them at sea. Freezers allowed the boats to go farther and stay longer. Ho wever, the Japanese could taste the difference between fresh and frozen fish. And they did not like the taste of frozen fish. The frozen fish brought a lower price. So, fishing companies installed fish tanks. They would catch the fish and stuff them in the tanks, fin to fin. After a little thrashing around, they were tired, dull, and lost their fresh-fish taste. The fishing industry faced an impending crisis!
But today, they get fresh-tasting fish to Japan .

Ho w did they manage? To keep the fish tasting fresh, the Japanese fishing companies still put the fish in the tanks but with a small shark. The fish are challenged and hence are constantly on the move. The challenge they face keeps them alive and fresh!

Have you realized that some of us are also living in a pond but most of the time tired and dull? Basically in our lives, sharks are new challenges to keep us active. If you are steadily conquering challenges, you are happy. Your challenges keep you energized. Don't create success and revel in it in a state of inertia. You have the resources, skills and abilities to make a difference.

Take a Risk, take a chance. Put a shark in your tank and see how far you can really go!

Tuesday, August 4, 2009

Value : Who decide

I learn a lesson last week. I have a long chit-chat with one of my good friend and we talk most about financial and life. We share our opinion and thought and I think it's great to exchange view on your opinion with one another.

What he thought me last week?
He asked me a question. If I gave you RM5 and 50c, which one will be more value to you? I am clueless, thinking what is the trick and the message he wants to deliver. Just to get the answer done, I told him RM5 and waited for the answer of the puzzle. Actually you who decide the value. It doesn't mean that the higher the amount, the higher the value. But you yourself decide!

Sound very simple and tricky. But it is relatively true. If you think back, do you think RM10 is a big amount? The same number can give different answer to different people, different situation and different environment. RM3 for a can of coca-cola will sound very expensive at a stall. But when you go to hotel or pub, the value can reach RM10. The hotel maybe located 10 meters away from the stall. So, number is just a number.

Let me give some example from my experience. Last month I had a minor broke period when it near to end of the month. Suddenly somebody gave me RM30 and I find out that RM30 is very valuable to me at that period of time. But if gave me during I received a bonus, do you think I will value the RM30?

Get excited when you receive money. Don't look at the numbers, but if you can get excited even to a very small amount, you are actually attracting it. Don't complain and always be grateful. Than you will attract the good thing coming your way!

Tuesday, July 28, 2009

Sub-conscious Mind: Basic Comparison

I would like to share something on conscious mind and sub-conscious mind. This is one of the most powerful tools on the universe. In general, sub-conscious mind is a result of programming, either pre-programmed and programmed by you environment or your past experience. The best thing is you can program your mind.

So, what is sub-conscious mind?
I give you a few example. When you learn how to drive a car, you conscious mind will first think what to do next. How you control the fuel, brake and clutch paddle. But when you keep on repeating the process, it become unconscious. You don't think when to press the gas or inserting the gear. Automatically when a car comes near you, you press brake. This is sub-conscious mind.

Same as when you talking. If you learn new language, you need to think words-to-words in order to create a sentence. But if you are a native speaker, the words come out spontaneously. Why this happened? It is a sub-conscious mind job.

Some of the part of our brain is preset. For example breathing and eye blinking. Others need to be train before it become sub-conscious.

Why subconscious is powerful ?
Same like programming. Programming is a very powerful tools. You can do anything with program that you create once. For example, Microsoft Windows. Very difficult to write is once and you need to optimize your thinking. But once it is done, the things will run by itself. When we detect some bugs, then just require minor fixing to fix the bugs.

Basic Comparison on conscious and sub-conscious
1. Conscious will focus on future. Just like first time driving, you conscious mind will thing about changing a gear a few moment before you actually change the gear. But sub-conscious mind will do it at present.
2. Conscious is more flexible. You can choose to change gear two or three depends on whatever you think. But sub-conscious rigid, when you normally after gear one, you will change to two, that is what you'll always do. If after wake-up you immediately go to bathroom, that is what you will always do, unless your conscious mind change it.
3. Conscious will more sensitive to positive information. If you are by someone about a benefit of reading a book for example, you conscious mind will start to think on the positive benefit and you'll start to think you must read a book. But sub-conscious mind are sensitive to negative information. Let say you are offered a new better position, your sub-conscious will start thinking, oh it is a hard work, what if I cannot perform, the job location is too far from my house etc etc.
4. Conscious is after-the-fact checker which means after knowing things is good, you will start doing it, while sub-conscious is a pattern detector - it works based on pattern that you set. For example, if you often brush your teeth after wake-up, you will try to follow the pattern everytime you wake up.
5. Conscious is a single system while sub-conscious is multi-system.

Why you need to know all these?
By knowing the potential power of these two types of mind, you can optimize in anything you do. How do you do it? Example when you start to think about stop smoking, you conscious mind will do the temporary thinking which stored into you RAM that you must stop smoking. But after a few while, the memory is gone, your subconscious part which store inside your hard disk will start to retake the position of whatever you do. If you realize this, you will put on the new thinking using your conscious, until it re-write the subconscious part into your hard disk and let it run by itself.

Did you realize, human have the ability for total control on both part of mind. Animal do have brain but the brain is more on sub-conscious mind. That is why duck can swim since hatch from their egg, bird can fly, dog will run and catch when you throw something, and on and on. But they can never change all these basic character. But you as a human, you have the ability to change whatever you wanted. That is why human being is so special!

Use it to change your habit, perspective and thinking which most of them is pre-set by your past, your surrounding and your environment.
Whatever you do, your thinking will always play the most important role, not your hard work. That is why Napoleon Hill wrote a multi-million best seller 'Think and Grow Rich', not 'Work hard and grow rich'!

Create your thinking and create your own program!

Friday, July 17, 2009

The Jars

Last month I attended T. Harv Eker's Millionaire Mind Intensive Seminar. I think the most make sense and easy to do is the jars. This is the simplest money management in the world.

So, how does the jars work? First step is to prepare jars. (it can be cookie jars, tupperware, bank account, or anything that you wish to). Label it as :

1. FFA - Financial Freedom Account. 10%
2. LTSS - Long Term Savings and Spending. 10%
3. EDU - Education. 10%
4. NEC - Necessity. 55%
5. PLAY - Play or anything not necessary you buy. 10%
6. CHAR or GIVE - Charity or Give away. 5%
Note : You can always adjust the amount according to your own preferences.

Details :
By logic, the universe (or in muslim I prefer to call it as God) will only re-act to those who can manage things properly. The jars will help you on the managing the money. Imagine if there is somebody begging you for money, immediately after you give him RM10, they spend it on buying cigarette or gamble the money. Would you give him more? Absolutely No! But instead his buying some food, save some money, give RM1 to his friend who also needed etc. would you think you want to give him more money? Absolutely! The same thing goes here.

1. FFA. Why we need it? Have you ever heard the story of the golden goose? FFA is the golden goose, or at least treat it as one. Golden goose will lay eggs as long as it is alive. So, it is important not to spend any of the amount that you already put in your FFA. This FFA money only can be allowed to put in at an investment vehicle (and treat it as we already spend that money) and we can only use the dividend. In this case we don't care the economy goes up or down, cause we are not going to sell the units anyway. And the dividend is our passive income, which means when the amount of FFA grows, our passive income also will grow!

What happened if you receive the dividend? I recommend you treat it as your income, and again divide your money into 6 portion. In this way you can get 10% of your income re-invest into you FFA, so the fund will grow!

So what happens when you passed away one day? Write a will, give it to your children? No! This money cannot be given to anybody! But it shall remain inside the investment vehicle or at least put it into another investment vehicle. But the dividend payout can be enjoyed by your generation. Maybe more than seven generation!

2. LTSS. For sure everybody got something they wish to have. The good thing about LTSS is you save to spend. Maybe you like the iPhone (I like it too!), having the latest VIAO laptop or the SLR camera. Put it on your wishlist, and when the fund is ready, just spend it! Traditional way, you might bought something by withdrawing your savings or when you receive your bonus. But put aside some money, purposely to use it on whatever you wanted. Doesn't it feels cool to have the latest gadget?

3. EDU. In order to increase your financial knowledge or financial intelligence, it is important to have education. For myself, to educate, I bought a lot of books and attend some seminars. Hanging around the internet of course your can get the information, but trust me, the education from reading books or seminars is far more valuable! You can also use this fund to educate about your religion or your hobbies (like me, I am the guitar freak, attending a class also can use this fund).
Btw, this fund have close relationship to your FFA, as you might need the knowledge on the best investment vehicle, technique etc etc. So, you need to fully utilize this fund.

4. NEC. Of course you need to pay your bills, mortgage, loan etc. Also you need to eat, buy pampers (if you got kids), buy the groceries, shampoo, toothpaste and whatever necessary. That is why this fund should have the highest percentage!

5. Play. Don't just save. Sometimes you need to get some leisure. Don't you think it is good to eat at a first class restaurant. If you are music freak, go to jamming. Ride a roller coaster at the Times Square or Genting Highland (but guys, don't play the Casino please!). Enjoy yourself. Enjoy with leisure!

6. Give. Last but not least, you need to give away back at least 5%. By giving money is actually how you earn more. If you have difficulties in earning money, why not try to give money first? Like Rich Dad said, if you want a smile, smile at others people first and you'll receive more smiles. If you want a punch, go and punch other people and sooner will receive a punch. (Of course not the same people will punch you, as kids will ask their parents to punch you back!) (If you are mu

PAY YOURSELF FIRST! - It is important to pay yourself first. Why? If you pay other people first, then only yourself you are focusing on other people! Following the law of attraction, if you are focusing on other people, then you will more often pay other people. Concentrate on yourself first. But how if after paying myself, I still got unpaid bills? Just pay whatever you can. TNB wont cut your bills if you pay them 20% at least to show your commitment.

Thursday, July 16, 2009


Dreaming is a process of manifestation. Everybody dream especially when they are kids. It is important for a parents give a good influence on their children on whatever they are dreaming. When I was a little boy, I dream a lot and I am sure that everybody did too. But when most of people grown up, dream slowly fade away and we are concentrating on whatever we do and whatever we feel comfortable.

Let me share some of my stories :
1. When I was a child my uncle had a guitar. When I hold the guitar, I always dream I am able to 'goreng' the guitar with a fast speed of solo. I once achieved some skills of how to solo a guitar and able to play some incredible songs.

2. When I was young, I always wanted to be an engineer because my elder brother mentioned the word engineer as one of the ambition option. (at that moment I was filling a form and there is ambition (cita-cita) column). I never knew what is an engineer but I really wanted to become one. See what happens to me? I am an engineer. When I was in form 3, I put computer engineering as my target. When I further studied, I really wanted to take the tele-communication engineering but I have set this goal long time ago, that is what I achieve.

3. When I'm taking PMR, I always put the target of 8As on each and every reference book I had. Then I moved to form 3, there is an option for arabic language which I am very confident to get an A. What happened? Yes, I only manage to get 8As, because that is my target.

4. I always wanted to marry at the age of 25, as the prophet Muhammad was married at that age. I told most of my friend especially after SPM. Then guess what, I married at the age of 25.

Get my point? Just set a goal or a dream. You can become one. I was very frustrated that I never thought of becoming a multi-millionaire at the age of 25 long time ago. Never in the family mentioning about becoming a millionaire at young age. If I did so, I will become one.

Be specific on your goal

No matter what you dream of, be specific. Don't just said you want financial freedom, you want passive income, you want a car or you want a dream house.

- If you stop working and living in a remote jungle. That also can be financial freedom. But is that what you really want?
- If you said passive income, you might receive RM1 every year as the bank interest on your saving account. Isn't that a passive income?
- You wanted a car. Proton Saga 1985 is also a car. When you fill in RM30 of gas at Shell, you'll can buy a ferarri. A toy car. Is it that what you really want?
- Dream house... What type? A peaceful type? Inside jungle is very peaceful also. 3 stories? A 3rd floor flat?

Be specific in your dream. I made a mistake by dreaming of becoming an engineer. Not a high income engineer with very less job, high power, flexible working hour and more time to spend with family and friends.

Passive income. Name the exact amount of money you want. RM1 million per year, RM1 million per month?

Dream Big

Dont just dream. Dream big. 30 years ago nobody would predict Malaysia will become on of the most respected country in the world. Luckily we got 1 person who his dream is big enough. We could produce our own car, when most people laugh on that idea. We once have the tallest building in the world (now ex-tallest la...) Why do you think all this is possible, if not because a person is dreaming about it?


Reason is the most powerful things in achieving whatever you wanted. Why you want a job? You wanted a job because you need the salary. When your reason strong enough, you don't care about your working hour, the distance from your home, got a crappy boss and so on. The reason is you need the money to pay your bills and support your family.

If you really want to marry a woman, your reason is strong enough, you might not care if you have to pay high for 'hantaran'. Travel all the way from north to south. Even Sabah, Sarawak. Sometime when the family won't approve you might go to Siam. It is only because of 1 reason, Love.

Just dream whatever you wanted and put a reason behind it. When you know what you want and you know why you want it, the how will appear. Be patient, it will not happened in the next second. So, set a short, mid and long-term goal and start dream of success. I mean a huge success!

Monday, July 6, 2009

Financial Leverage

Traditionally, normal people will think that debt is a tool for those who cannot afford to buy something, and borrow money from someone else to pay or buy whatever they need or desire. Debt often relate to something which is bad and most people will advice to settle the debt first before doing something else.

But rich people think differently. Some of above statement might be true, but, it might be not. Debt can be classified into 2 catogories :
1. Good debt
2. Bad Debt

Good debt is we borrow the money and put more money into our pocket. While bad debt is simply taking the money out of our pocket.

Most of the E quadrant people will use loan as a bad debt tool - such as buying a big house to live, buying a car that they can't afford to. I'm not saying that buying a house is a bad debt. It depends whether it puts money into your pocket or outside of your pocket.

ASB loan is the easiest example of good debt. Why I said so?
Let say if I loan RM20,000. I need to pay a month about RM110 for 20 years.
meaning, 1 year I need to pay RM1320.
Normally ASB will give out dividend at 8%, which give RM1600 per year.
This give us a solid RM280 per year and after 20 years, I will get back my RM20,000.
Which total I will receive is about RM25,600 per year by using the banks money.
This is true without the compounding interest. If the interest is compounding, you will surprise the amount of money you will receive by using Other People's Money (OPM) which in this case is the bank's money. Imagine you loan out RM200k. Than just simply put another zero at the back of the equation.

This concept is called leverage. If you can earn more money than what you are borrowing, than the debt is consider a good debt. Earning this money can be classified as passive income, since you not need to do anything after approval of your loan and set down a standing instruction.

You can do the same concept in buying property. But make sure, the amount of your repayment is lower than the income you made (from rental).

Monday, June 29, 2009

Law of Attraction

One of the topic that interest me the most at this moment is the law of attraction. I can see a lot of speakers, authors, wealthy persons and most influence person in this world are giving some tips which when we analyze, most of them came from one basic. It's the law of attraction.

Robert Kiyosaki when he wrote the cashflow quadrant mentioned that mindset is the main cause of most people did not shift from left side of the quadrant to the right side of the quadrant. Left side of people will said something like, "I want a safe and secure job", "oh.. that is too risky", "I can't afford that" etc etc.

T. Harv Eker emphasizing on the millionaire mind by making a lot of self declaration. "I have a millionaire mind". Harv teaching also emphasize on how the universe will re-act to some of our words, thinking and action. Admiring reach people. etc. etc.

Nestle, once said try to avoid the words I don't have time and you will have the time to do almost everything you wanted to do. Napoleon Hills talks about the desire to be rich. Lim Goh Tong before he made a fortune, he dream about building a city on top of the forest mountain of Genting Highland.

All of this common things can be explain by the Law of Attraction. The Law of Attraction states that what ever you think will become your reality. If you think that it is difficult to become rich, it is difficult. If you think you can go to the moon by using car, sooner or later you can. If you want to have a brand new car, just imagine that you own the car.

It's seems like very simple, but a lot of the people out there don't aware of this true power of attraction. All you need to know is how to apply the law of attraction and your life will change.

You can do more research on this topic on the net, or the book I would highly recommend is "The Secret" by Rhonda Byrne and if you want to know some techniques to apply it, you can read "Law Of Attraction" by Michael J. Losier.

Friday, June 19, 2009

Blog Introduction

Hi all. Since this is my first post, I would really like to thank all of you who dropped by. The reason for me to create this blog is to for me to share some of the tips I gain and all the experience I have regarding success and journey to my first million.

Like most people, they are also aiming to become a millionaire. Most of them planning to become millionaire on their retirement so that the money can help them to generate some of passive type of income and able to support them for the rest of their life.

But to me, I am completely different. To earning a million for me is just the beginning. It is the starting point for me to explore the world. That is the minimum amount of money that I need to entering the world of the riches. I would put my target to obtain my first million by the age of 30, or in the other words, it should be by 2013. At that time, my goal is to quit whatever job I have and beginning to create another stream of income, either by building businesses or by becoming a professional investor.

Recently I have went to Robert Kiyosaki seminar with the National Achiever's Congress and the Millionaire Mind Intensive Seminar by T. Harv Eker. I've been reading their books a few years ago but I have taken no action on that. I can say it was the start up point for me. The seminars were really a wake up call for me. I just realized that I need to move further to become somebody. I need to do different things than most people are doing now. In order to do this, I need a proper planning to achieve my target. It is just like starting my engine off to travel to a place where I decided as my destination.

I will share a lot more especially what I have learned throughout the process. Sharing is caring. And I believe by sharing more, I will receive more. I hope you all will put on a kind comment on my post just to give me some feedback or some idea.

Hopefully I will benefit all of you, the readers of this blog and may your wishes will come true.

Best Regards,