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).