Days of my discontent

Wednesday 19 March 2008

Here are some suggestions on how to make How to make yourself rich- and love it.

1. Decide why you want to be rich. Not only for the reasons above. Your own personal reasons. They're the strongest. . Decide what your definition of success is. Warren buffet has this to say: "It doesn't make any difference if they've got a thousand dollars in the bank or a billion dollars in the bank… Success is really doing what you love and doing it well. It's as simple as that. I've never met anyone doing that who doesn't feel like a success. And I've met plenty of people who have not achieved that and whose lives are miserable."
2. Decide how much want to achieve financially. If one does not have a vision of what one wants to achieve, he will not get there. Think of where you want to be financially. In poverty, in drudgery or financially secure and comfortable? Do you want to be really rich or just have enough to get by?
3. Be mentally prepared to be rich. Harv Eker and his famous words: "Give me 5 minutes and I can predict your financial future for the rest of your life." It's the financial blueprint you have in your mind that determines whether you have a mindset to be rich. Whether you think you are worthy. These hurdles have to be crossed before you embark on your journey- otherwise it may end up with futile self sabotaging behaviors along the way.
4. Be prepared to develop qualities that go in tandem with the process of being rich- hard work, diligence, intelligence, creativity, integrity, positivity, resilience. For things to change, first I must change.
5. Educate yourself. There are many financial education, financial literacy systems out there. Do what it takes to read and increase your knowledge base, both theoretically and practically.
6. Evaluate your position in terms of the 4 cashflow quadrants. Employee, Self Employed, Business Owner, or Investor. Right now, from which quadrant do you derive the most income today? Think of yourself as successful. In which quadrant do you envision yourself as the successful person you have dreamed of becoming?
7. Create a plan for how you can move to the quadrant were you see yourself as a great success. For example, if you see yourself as a success in the self employed quadrant, how can you see yourself as more successful in this quadrant ? Which quadrant do you want to be eventually?
8. Be prepared to have some in the Investment quadrant. Kiyosaki advises that eventually all should have some means of generating passive income by means of investment opportunities, such as real estate and small businesses, with the ultimate goal of being able to support oneself by such investments alone.
9. Associate with people in the correct environment. For example, if you want to have a big business with systems you don't get advise from financially poor people with lots of bad loans to learn about improving yourself financially.
10. Evaluate your current financial assets and liabilities. What are your assets - things that generate money, such as rental properties or businesses, and liabilities- as things that cost money, such as house payments, cars etc. income and expenditure?
11. Evaluate your current cashflow, income and expenditure. Are you in deficit? Which areas can do better? What areas can be dispensed with, especially expenditure?
12. Spend less than you earn.
13. Avoid splurging on things that you don't really need.
14. Review your financial position regularly. – monthly or quarterly at least.
15. Use financial leverage. Leverage simply means the ability to do more with less. Leverage allows greater potential return to the investor than otherwise would have been available. On the flip side. The potential for loss is also greater. Some examples of leverage- include taking loans or borrowing, the proceeds of which are reinvested with the intent to earn a greater rate of return.
16. Solve problems. Identifying a problem create the opportunity for creating a solution
17. Invest. Not just invest. Invest to Win. It is said there are 3 kinds of investors- those who do not invest, those who invest not to lose and those who invest to win. The latter is that adopted by the rich. They have a mindset, a strategy, an aggressive, yet cautious and well thought out one. Emulate.
18. Lower your investment risks, by learning, observing trends, and doing your research. Says Kiyosaki: " I realized the reason most people invest not to lose is because most people think investing is gambling. Many also believe that to get higher returns means you have to take more risk. Nothing can be further from the truth." Studying and taking measured risks is the key.
19. Diversify. If you're not totally 100% sure of the method you are using to create wealth, it is wise to use several methods. to spread the risk.
20. Don't diversify. If you're especially educated in one method of investment or have a winning formula after careful study. Warren buffet : "Diversification is protection against ignorance. It makes very little sense if you know what you're doing" "Keep all your eggs in one basket, but watch the basket closely"
21. Have a winning mindset- Have dreams, and be stubborn. Very stubborn. Don't give up too soon. Aim high, and have the enthusiasm and plans to achieve what you're aiming for.
22. Be creative. See problems and solutions others do not see
23. Be bold. Venture where others have not dared.
24. Get your hands dirty. Take risks, but affordable risks. When you learn the experiential game of financial intelligence, it is a hands on game.
25. Enjoy being rich, expand your means. " Most financial authors write about living below your means and saving money. When Donald and I write, we write about expanding your means, enjoying life and investing your money"
26. See making money as a game rather than that of life and death. Enjoy it. Play to win, but don't be too afraid to lose. You win some, you lose some.
27. Choose your battlefield. " Give yourself a little freedom to develop into something or someone you'd actually like to be." says Trump. "It's not easy to break with the pack or do the unexpected. It can be a season or so before we get enough momentum to expand our circle…. that's very much like writing your own script that you enjoy.."
28. Establish a plan to pursue them. Here's what your plan should include 1) the goals you hope to achieve, 2) the time frame for reaching each goal, 3) the benefits of reaching each goal and 4) the obstacles that could prevent you from achieving each goal, and ways to help overcome them .
29. Allow for flexibility, while keeping the goal in mind. Be nimble, teachable, be humble. Keep congruent with your mission in life.
30. Never compromise your values for a few bucks, or even a million bucks. You may have amassed your wealth, your empire- but if you have left family, friends, neighbor, dog… behind… or even a trail of blood…. it may be a pretty lonely place to be after all.
31. Don't forget to give. You give to get. Contribute- willingly and sincerely, to the less fortunate, to those who cannot have what you have. It is a strange principle. You give, you get.

posted by Shanti @ 03:23 1 comments

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