Ideas on How to Become Rich

Ideas on how to become rich: The Dividends Issue, part 2

2011-02-03T05:52:00.000-08:00

Ideas on how to become rich: The Dividends Issue, part 2

I wrote a short piece on dividends in my last article. Here you go if you're interested in what I've written earlier on the topic: The Dividends Issue.

The difference between theory and practice is what I will be examining today. Let's look at a few simple reasons why a pure dividend strategy won't work - or more accurately might not work - in practice. If we can find stocks that give out high dividend regularly and can pay somehow a very low price for them, then sit back and let the dividend come in to provide income for further reinvestment, then this system would really work. Compounding would set in fairly rapidly. However, in practice things don't work this way.

First, we have to consider that the price of the stock might be higher than expected already due to the fact that this company gives out high dividends, and people know this.

Second, it is highly unlikely that the stock in question will rise much further since it is a consistent dividend giver and not a growth company. Therefore, a pure dividend strategy is highly unlikely to work if one thinks one can make money on capital gains.

Third, dividends in Singapore and in many other countries are - at most - given out four times a year, and at the least, assuming they give out anything at all, once a year. And this dividend can be cut at any point on time a recession or financial crisis hits, mind you. Thus, a pure dividend strategy can help you become rich only when you're already rich. For those on the way there, a mixed strategy is more useful, I'd say.

Thanks for reading and cheers!

Short notice:

I myself don't like gambling or speculating - I like investing. However, I might consider writing about ways people have come up with to try to make money via gambling since there is a recent craze at MBS (Marina Bay Sands) Singapore where the casinos are. Even a group of Malaysian teachers in early 2011 went to the casino instead of taking care of their charges! What a craze. Is there or is there not a system to defeat the casino and make lots of money? We might find out in a future post! Thanks for reading and cheers.

Ideas on how to become rich!

Ideas on How To Become Rich - The Dividends Issue

2010-11-12T14:59:00.000-08:00

Ideas on How To Become Rich - The Dividends Issue

I was surfing the net when I came across a blog dedicated to helping people learn about investing based entirely upon dividends. The author was arguing that one way of getting rich - definitely getting rich - was by having dividends accrue over time. He seemed to be arguing also that capital gains cannot be relied upon because of the famous EMH (if you didn't know what that was, it's the very famous and very falsified Efficient Market Hypothesis). I must say that I have a more than passing interest in the subject, so here I am to give some opinions on dividend investing.

Can investing in dividend paying companies really make one rich?

The literature is divided on this one, with some arguing yes and some saying no, so let's not look at that.

Let's look at the logic.

If dividends were 10% a year, and one merely reinvested dividends year after year in companies that paid the same percentage of dividends, this would be one great idea. It's definitely workable in theory.

But this assumes that inflation is low, taxes on the dividends are low or nonexistent, and certainly alsoassumes that you can always find companies that pay 10% dividend. I am a sporting person and would be willing to say that this is not possible (to consistently find high paying dividend stocks). In fact, it is hard enough as it is finding companies that pay dividends consistently.

Aha, some people say, you can always find companies that have consistently paid dividends over the years. Some call them dividend kings, others call them aristocrats of the stock market, others call them Coca Cola, bla bla bla.

But the issue is that if they are that reliable and always pay dividends, then the stock price would most likely reflect this.... which means that their payout rate has to be low, i.e. less than 5%, say 3-4%? The prices would reflect this high dividend payout. The rest is purely mathematical, with higher prices meaning that even high payouts have a low percentage return.

I have no reliable statistics on this. One Singaporean stock market site goes 8% in the long term but remember this is driving by the rear view mirror. As my favourite investor Buffet says, if all there was to stock picking is past performance, then the best investors would be librarians! Something like that; I am paraphrasing from memory and from impression.

So.... I'd say that dividends can make you have a regular income, and can discipline savings. Those are good things.

BUT it is highly unlikely that a pure dividend strategy would work. Perhaps one can try a growth strategy that also pays minimal dividends.... you would be happy to wait for the growth whilst holding on to at least some small returns. A mixed strategy would definitely pay off better in the search to become rich rather than a fixation on dividend paying stocks.

This topic is quite complicated and vast, so I will come back to it in a second post, on why dividend stocks may not grow as fast as growth stocks. Stay here with me; thanks for reading and cheers!

Ideas on how to become rich - today's topic: dividends

Ideas on How To Become Rich - Using Social Media and Youtube to Make Money?

2010-10-07T12:34:00.001-07:00

Ideas on How To Become Rich - Using Social Media and Youtube to Make Money?

It wouldn't be much of an exaggeration to say that social media, such as facebook and youtube, have become a major part of our lives. Many people use social media to communicate with their friends, and to connect with other people. So, when I was watching a youtube video today, posted by some innovative chaps, I thought to myself - hey, that's an idea on how to make money! The question is: can the average Joe really use social media to make money and become rich?

The answer, or the problem, is that to make money using social media, it isn't that difficult; but to become rich, that's a whole different matter.

You see, to make money using social media, such as facebook and youtube, the main idea is to post some unique video or message or photos, and then put up advertisements. I will cite some examples: first, there are many individuals who post up a series of video blogs on youtube and then post up advertisements on those vlogs. They make money using economies of scale this way, when people view their sites. Second, there are many pretty girls who post up extremely erm - let's say tantalising - pictures of themselves on social media sites and then put up links to videos, blogs, vlogs and other such materials. They can make money too.

However, the best trending idea right now to become really rich is still to build a social networking site. It's true. Facebook founder Mark Zuckerberg is a good example. So the real money to be made is not in the small time posting of nice pictures or the extensive use of advertisements on social media, because of time, labour and creativity constraints. The true money is still to be made in the construction of the networking site, such as facebook and youtube, in the first case. To become rich in the world of internet connections and networking, it's better to own the network than it is to use the network to make money, but it's certainly better to use the network to make money than it is just to use social media for purely communicative purposes.

Thanks for reading and cheers!

Ideas on How to Become Rich!
PS I haven't been posting much, so I am back to remedy this issue! :) Haha.

Ideas on How to Become Rich: Notice

2010-06-20T08:16:00.000-07:00

Ideas on How to Become Rich: Notice

Hello dear readers,

Hi, it's Shawn, the original writer, here. I am sorry to report that Sally Klaus will not be writing on ideas on how to become rich here anymore, as she has to teach commercial law and will thus have no free time to share her ideas, thoughts, and analogies with us anymore. She has taken up an appointment elsewhere dealing with commercial law. Therefore, I will be taking back this site to write on this topic and pick up where she has left off. Thanks for reading all her ideas and posts on various interesting and varied topics!

Do stay here for more ideas on how to become rich - a finance, investment concepts, investment ideas, how to make money and business blog - and thanks for your continued support! I will be back soon with more ideas and varied articles for you, spanning investment to real estate, small time ideas to wilder, more macro management-type ideas.

Thanks and cheers!

Ideas on How to Become Rich: Notice

Ideas on How to Become Rich - be the scavenger in the business

2010-06-08T17:20:00.000-07:00

Ideas on How to Become Rich - be the scavenger in the business

Hi good day folks! It has been a long time since I last blogged. I was busy making money through salvaging old stuff and being a scavenger in the business. What does being a scavenger mean?

Oftentimes, people say that you have got to be the first to win, the first to be there to be counted, and to be the first in everything. Well, sometimes being the last or the scavenger is a great idea to becoming rich. The reason is very simple. Lots of people want to make money but have no patience to wait a long time, so they give up halfway, and therefore if you are the next in line, you get the golden pot. You become the scavenger. Ah, how does it work? Let me share some of my insights.

When people rushed into ventures and may make a loss or encounter problems, you come in and be the "angel hero"; you need not spend lots of money to rescue the operations, yet you may reap the end part of the bargain which can sometimes be better than the beginning. Not all businesses end in bankruptcy. Not all businesses end in profits or losses either. Some people just want to give up because they have lost interest or lost the motivation to do the same business or even have other minor reasons that are of no importance. If you are the one who can smell or sense this kind of opportunity, you can jump in at this right moment and rescue the operations by being the "salvaging hero" . In this way you can become rich if you try new ways of running that business or even try to remarket the sale of the "poor" business and make a sum if you are able to play the game right or calculate the sum correctly. Some people call this playing the turnaround game.

Many people lose windows of opportunities around them when they are actually looking for areas or avenues to become rich. Warren Buffet is one such guy who salvages "lousy" businesses and make them turnarounds; he might buy up businesses which are fledging and make them grow. The way to go in becoming rich is to have an open mind, an open heart and an open wallet, in which you keep some spare cash. This is the way to enjoy riches if they come your way.

I am like a scavenger. I do not normally start a business but I may end up owning other people's businesses and becoming rich "incidentally". Some of my scavenger hunts are the following: Once, there was a friend who needed money as he lost money in stocks and shares and needed money, so he had to sell his apartment quickly. I gave him the cash which he badly needed and got a great bargain - a huge discount for that apartment. After some time, I resold the apartment for more than triple the amount. Another "salvaging" incident of jumping onto an opportunity was when a business friend of mine could not get some funds to sell LCD cards which measure the body's temperature and the level of stress. I bought all his cards at a good discount and resold the cards at a reasonably nice price, and lo and behold, I made a bit from this scavenger hunt. My friend got what he needed- the money - and I got profits within a very short time of less than a month. What more can I say?

There are other incidents of profit making situations which are out there. It is up to us to grab the chance and go get it. To become rich is indeed not difficult. It takes guts and the right decision to do it when you may feel afraid. Well, I will continue to share other incidents of profit making situations and share with you ideas on how to become rich in my next post.

Go and find the opportunity. Open your eyes and open your ears. The money may be just right here.

Cheers and good luck hunting
Sally Klaus

Ideas on How to Become Rich

Ideas on How to Become Rich - how to grow rich in places beyond

2010-05-04T16:53:00.001-07:00

Ideas on How to Become Rich - How to grow rich in places beyond..

Hi good day to all my friends. I have not been able to blog due to lots of commitment in motivating people and teaching many of my China friends how to become rich as they have now stumbled on new wealth in their country.

The world is now getting very small because of the cheap airline tickets and also the mobility of people all over the world. Even in China, there are all sorts of people from South Africa to India or New Zealanders in a small town in China. So you see, the world is now our oyster as the saying goes. If you are a Caucasian and have a little excess money, it would be good for you to grow rich in Eastern part of the world today . China, India, and many parts of South East Asia are full of opportunities for all of us to invest and grow rich.

Land and real estate in many of these countries are cheap and will grow in due time because the whole world is developing with new technologies, handphone for easy connection and also the access via internet. No where in the world is out of reach for anyone with money to invest.

My Canadian friend Carlos told me that he found a piece of land in Thailand and after staying a few months there, he enquired about the purchase and lo and behold, today he is a proud owner of a large piece of real estate in Thailand , without burning a hole in his pocket. It was dirt cheap and also fertile enough for him to plant a few of his favourite herbs and plants. He can even travel back and forth to Canada because his land is able to yield some of the fruits which he could sell at the market place and also his art works fetch him good prices with tourists and locals. See, what a great decision! Anotherfriend of mine from Scotland found a nice cozy place in Malaysia and is now growing some kind of local fruits as biofuel resource and also home consumption. What a win-win decision!

This year is the year of the Tiger and according to some metaphysicists, it is good to invest in land because land is "earth sign" and it will prosper in the year of Tiger. Shares on construction, buying real estate in cheaper parts of the world and also checking out on some agri-produce may yield good returns because the land is booming all around the world. The property market doom in America in late 2008 and early 2009 has now become a new chance for those with money to hang on and convert their patience into wealth. Only those who are not able to afford will lose out. The rich must become richer and then turn around and help those who need to become rich. This is the cycle of wealth creation...

Well, in life there is always a gamble. No one knows for sure what is going to happen so it is good to "make hay while the sun shines" and also if you have spare cash, do not restrict yourself to your own home country. Explore various places of the world, lots of wealth and money to be reaped if you are decisive and gutsy enough to make good investment decisions. Travel around and see for yourself that the world is no longer a big alien place, it is full of opportunities and connections with easy telecommunications and cheap travel today.

I think some of you may be sitting on goldmines without knowing it. Know your needs; know your desire to become rich and go to places where there are growth opportunities especially in real estate of many developing countries and see your wealth grow....

Think ahead and think big.
Cheers

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - women and money two

2010-04-23T22:00:00.000-07:00

Ideas on How to Become Rich - Women and Money two

Hi folks, the last blog I mentioned about women and money. There is about 10 percent very powerful and rich women among the community folks in every country from America, Britain , China to South Africa. The common traits of these rich and wealthy women are as follows:

a) Believing in themselves as being richer than they thought. These women have in them a kind of "conscious belief" , inspite of discouragement and dampening remarks by other people and of course the manfolks.This belief in themselves is such a powerful force that enables them to act and do the things in the manner that they think they are rich and powerful by upgrading their knowledge, upgrading their daily routine and by ungrading their environment in a slow and steady manner , so much so that the people around them are not aware of such developments until the day comes when they emerge top of the ranks. I know of many such women in our midst, quietly enriching themselves and silently amassing skills and expertise in financial management, investment in the stock market and savings in trust funds and bonds as well as buying insurance with whatever savings they have. In due time,the amount of money becomes so much that they are rich beyond their own understanding. The income flow is somewhat like a pipe and their riches become as the tap, able to flow as and when they need the money. This is the kind of belief and action that come with planning and lots of hardwork in daily working and accumulating the money and wealth.

The other common ground which all the rich and wealthy women share is the way they learn from other powerful and rich successful people. A study of America's top 40 richest people will give you an idea how these people become rich and then you study their behaviour, their spending pattern, their decision-making process and most importantly, their way of handling success and failure. Once you understand the concept of getting there - the way these people become rich, you will have to follow in a wise manner, with your own initiative and flexibility because each one of us is endowed with different perspectives and different journeys. One thing for sure, professional training and help is very vital to being successful and rich. Education is a main bridge in this journey. You cannot avoid training and professional help. Doctors, lawyers, engineers and architects have many long years of training and practice before they make it big. This is the same as women who upgrade while looking after children and undergo training while they are cooking and sewing for their loved ones...

There is no get - rich formula or short cut. There is passion, enthusiasm and hardwork plus lots of tenacity and endurance because in this journey , everyone is a winner if one thinks so. Women who have become rich and powerful, have understood this simple fact while accepting the norms of the society.

In Singapore I have a lot of female friends who are very rich and successful , yet they are great mothers and cooks. They are able to balance life well and enable the community to grow as well. The way to being rich is not just in the physical accumulation of wealth and money, it is also the way of thinking rich in thoughts, deeds and to be generous to those in the community.

Well, go for the professional training which you wanted all the time. Do not proscrastinate because time and tide waits for no one. Every day is a new day for learning and getting rich because 10 cents saved is 10 cents gained. The rich mentors are out there waiting for students to learn to be rich... go, and just do it!

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - women and money

2010-04-22T23:18:00.001-07:00

Ideas on How to Become Rich - women and money

Hello and it has been a long time because I was away giving talks and earning big bucks in the growing educational and training sectors.

Many women are not savvy with money matters because most of them feel that it is the man who should be handling such things since young. As a result, most of the women I know, are unable to calculate their net worth or their economic value. It is so sad that being the fairer half, the women are not given a fair share of wealth and riches although some manage to secure both on their own terms. Others have problems even balancing household expenditure and giving themselves some gifts once a while.

How do enable women in general to become rich and worthy of their salt. there are some tips which I shared with my participants at a seminar on women and money matters.

Firstly, everyone of us especially woman, must determine your money goals long term and short term. This simply means what do you really want to achieve in monetary terms at the end of 1 year, 2 years or even 5 years. How much wealth are you going to accumulate over the next few years?

Once you have decided on your goal or money target, you have to then examine your resources on hand. Your talents, skills and your expertise are measureable in terms of money because you can transform your skills into something worth in money value ; you also can look at the jewellery you have collected over the last several years (if you have any of these gold, silver or precious stuff) or you have some kind of old furniture or antique passed down by a grand relative etc..

You can convert trash into cash and save the environment at the same time. This way you can have money to use in times of rainy days or emergency situations.

the third step is to curtail your spending urge. Spending is a habit for most women. A lot of them buy things on impulse or want and not really based on needs. They then discard those stuff away or store them in cupboards for a long time collecting cobwebs. So the best thing before you spend money is to check your spending and what are the essentials for weekly or monthly plan. this way you can save quite abit of money which can come in handy later on.Also you can put the bank into some kind of investment ventures to earn interest or dividend.

Another area is to avoid using credit card. This piece of plastic seems harmless but when you use it, it can get out of control and become your master. Many people I know are enslaved by this plastic card. They overspend without knowing as the pain only comes at the end of the month when the bill comes. So, my advice is to avoid using credit card wherever possible.

The next thing is always be prepared for life's unexpected events. Recently iceland volcanic eruption caused the ashes to be flown all over the world stopping the airways and airlines were affected and lost billions of dollars. Many hotel owners quickly gave discounts to the stranded travellers in their countries such as New York, London and major cities. The goodwill shown in this unexpected event will make the tourists remember that country well. Similarly as a woman, it is good to be aware of opportunities in daily mundane events and capitalise on them in case such things happen. I know of a women entrepreneur who was selling trinkets and making very little money. But when the SARS came suddenly in 2003, she quickly changed her strategy and bought lots of gloves, medical supplies which now becomes her trading inventory. She has since become rich and powerful in Singapore. Such ability to look beyond the unexpected events has made her very rich and powerful.

So to be rich and powerful, it takes common sense and lots of alertness for women in general and this applies to men as well. Open your eyes to opportunity, learn to avoid the use of credit card unless it is truly necessary and also set a monetary action plan which must be feasible, measurable and attainable. It is from a small acorn that you get the big oak tree, so start small with little risk investments and save hard and let the money grow into big oak later on...

the ocean is a collection of many little drops of water. So handle your money with your heart and head. It is definitely good for men and women to know money matters well, so that all can become rich in due course and also be prepared to become wealthy when the times come.

Have a meaningful day and save hard.... cheers
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - By Marrying into wealth!

2010-03-22T16:47:00.000-07:00

Ideas on How to Become Rich - By marrying into wealth!

Hi friends, I chanced upon an old movie starring Marilyn Monroe about marrying a millionaire. In the past people would laugh at you , thinking you are a joke. Well, today the world is flooded with lots of millionaires, multi-millionaires and even billionaires not only in America, but in India, thousands and thousands of them, China with a growing number of filthy rich people with lots of spending power and Singapore, Malaysia as well as Indonesia . These rich people have many eligible bachelors and spinsters in their midst.

In America alone, there are hundred of thousands of rich tycoon, multi-millionaires and wealthy landlords and real estate developers with many of them living in big cities like New York, Washington, California and Montana to name a few. In China, Shanghai is a haven for the fithy rich with Hong Kong a close second; and in South East Asia, there are a great number of these "walking wealth" who spend lots of big money buying up premier apartments worth tons of money and shopping in expensive shopping malls around the world.

Like what Marilyn Monroe said, it is good to marry rich because a man being rich is like a girl being pretty... so what you people waiting for , especially those of you in the early twenties and thirties. Go join a rich club to meet the rich, find your way to the functions of rich and wealthy, seek help from friends and relatives who work for the rich and famous.

To get near them, you need strategy. You need hardwork. You need lots of patience and perseverance to get them to like you, to finally marry you. Among the rich and powerful, there are many eligible women too. The world has changed since the world wars.. Many women have broken the glass ceiling and are amassing wealth and money because of their intuition and their shrewd business ideas. China and India have lots of such beautiful and talented women who are bathing in gold and riches, and most importantly, many are single!

Read about the rich, their lifestyles and their whereabouts and find out about them. In this way, you can marry into the class of wealth without having to struggle on your own , taking years and years of toil and hardship.

So follow the advice and marry well , really well. It is no longer ridiculous today to marry into wealth. Riches do not fall from heaven, you got to go and smell the ground, walk the roads and join the clubs of the rich and famous. You need bait to catch a fish, so you need to spend some money joining these rich men's clubs and associations so that you can get near wealth.... ah, just go for it and who knows, you may soon be bathing in a bathtub with gold rims and golden taps.

Good luck and cheers
Sally Klaus
Ideas on How to Become Rich

Ideas ion How to Become Rich - Riches is more than wealth

2010-03-20T19:09:00.000-07:00

Ideas on How to Become Rich - Riches is more than wealth or money

Hi folks, how to become rich is not necessarily to become wealthy in money terms, it is also about how you get financial happiness and security to live well and live rich enough for a long long term

What are the ways to secure a financial future and great happiness without fear of having no money?
here are some tips and suggestions for you all to mull about

a) be organised about your financial resources, your expenditure and your sources of revenue - keeping tabs on your balance sheet is crucial for a good record of your financial assets and liabilities. A simple journal or ledger for self keeping is vital for knowing at any one time how wealthy or rich you are.

b)You must set aside at least 5% of your income on savings - no matter what kind so savings, just set aside for your own protection and security

c) Protect your family by ensuring your family members have savings or investment accounts so that they are protected as well. A small amount each month can go a long way in times of crisis and emergency. Family relationships must be a very part of your life because they are your wealth, they are the true meaning of why we live! Love is greater than money at any time!

d) Try not to use credit card too often. Use cash so that you can keep tab and not overspend. Overspending with credit card is very easy. Many people chalk up lots of bills by using their credit card carelessly. Do not rely on credit card so that you can control your spending

e) Tach your loved ones and friends the value of money and the value of happiness. Also advise them not to spend too. Spend wisely and only on things which are essential , not on things which are of no actual value or merely trying to keep up with the Joneses. Never let others run your lives by trying to match others . What they have is their good luck, what you need is to maintain your lifestyle accordingly like cutting your cloth according to your measure.

Do your best to keep financial goals. What is your financial goals for this year? for the next 3 years? With such goals, you are able to work and concentrate day by day towards your financial freedom. Money makes the world go round only if you have the money to work that way. So keeping aside some money each month systematically and prudenly, you are sure you have a great financial future and a great way to live for a long long time.

Cheers and learn to live rich and happy without having too much ...
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - The branding of success

2010-03-15T17:15:00.001-07:00

Ideas on How to Become Rich - The branding of Success

Hi friends, the last few blogs on the type of vehicle you take along the path of success has given me new insights on how to become rich. There is another fantastic way to become rich.

I read about how all the tycoons, moguls and the richest people in the world behave and how to market their products and one of the things I realised after all these research and reading is a common thread--- their branding of success.

What is branding of success? Everyone of us carries with us a certain branding effort. It is the way we walk, the way we talk, the way we carry ourselves along life's journey. The rich people knew how to market themselves as brands.

Take for example, Tiger Woods, he may be down these days, but when we are all playing and enjoying life, he was putting out there in the cold from the age of 2 onwards. When we are sipping hot chocolates and doing mundane uninteresting chores not out of our will but out of necessity, these people like Richard Branson and Trump are cracking their heads on how to brand themselves for riches and wealth. How to brand yourself so that people can recognise you instantly?

One of the ways is to join a club where rich people go to. Joining a club or an association is one vital step because you need to invest in yourself and your future by becoming "one of the boys" otherwise you cannot sniff any opportunities for growth and success.

The other thing to brand yourself is to do things which you are really good at. Tiger Woods, golf, Baby Ruth, baseball, Michael Jordan, basketball, Donald Trump , real estate, Sam Walton, provisions, etc.. each one of us has a inherent skill or talent which we must put out front and do it till we shine above others so that people know us. Of course there are potholes and snares, you still have to persist in your relevant area of expertise till you are recognised . It takes patience to hone your skills and talents, it takes time to practice. 10 years is the minimum time to hone a good skill. Durian trees take 15 years to bear good fruit. Oak tree takes a long long time to grow from a small acorn.

The next thing is to get reliable people to market for you. This is important because one man' s effort is limited , so you need a band or a group of marketers to sell for you , to go out there to blow your trumpet.

The last thing is do not do stupid things which destroy you after hard work. Now there are many fallen stars, fall guys because they made stupid mistakes of handling their lives badly. Do not fall for temptation which are plenty. Do not commit self destructive things that will bring sadness to your lives like many rich people who after a while, destroyed what they have earned all their lives.

My sharing tip is that you sell yourself by doing what you really are good at and then get people or friends to help you blow trumpet daily and soon you will become famous and possibly rich and then you can go on to become your own brand of success. Once you are there, money and wealth will come to you in heaps . Just be sure you are patient and persistent enough to hang on there, because to get that pot of gold at the end of the rainbow,you definitely need physical and mental strength as well as tenacity.

So go and brand yourself for success and riches will come your way.
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - Set up a budget system

2010-03-07T18:35:00.000-08:00

Ideas on How to Become Rich

Hi folks, now I want to share about the budget system which you can set up which will enable to become rich because everyone needs a budget even though often times we think it is cumbersome.

The African leaders discussed the issue of financial planning for all of us. To do so, means you need to know what is a budget before you can plan further.

Lots of people give excuses such as budgets are too restrictive; budgets are too complicated; budgets are too hard to follow etc..

Actually a budget is simply a tool that helps you to monitor, achieve and maintain your financial goals. A money system is another word for budget if you do not like budget as a word.

Budgets are really fun to work with; provide you with a sense of direction and also give you long term freedom.

How to set up a budget is a crucial first step.
a) Implement an automatic savings plan. How much you earn per month, set aside a portion, say 10% every month to systematically building wealth;
this sum of money is then put into investment - choose the kind of investment that is suitable to your personality and lifestyle.
b) Plan a debt termination scheme. What I mean is that you should check what are your debts, bills and expenses you incur each month and ensure that you pay off your debts on time to avoid paying interests which are rather high.
c) chart a giving plan too. Give a sum of money to the needy and poor. Even if you are now not very rich, you can still give time, resource or help to others. If you have money, give some to others who need it. I can tell you by experience, the more you give, the more you receive. it is a circular flow of income and wealth.

d) focus on what you do best in your work and hobbies and try to make opportunities to earn extra dollar and at the same time, hone your skills for preparing for bigger things to come.

Well, this is the first thing all of us must do, whether you are an African or an American or a Chinese. Budgeting is a very fundamental step to knowing how much assets you have, how much liability you incur and how to grow money along the way...

Cheers
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - finding the right path

2010-03-07T15:49:00.000-08:00

Ideas on How to Become Rich - Finding the right path

Hi folks, I attended a conference just two days ago with some other chief executives together with some leaders from South Africa, and the talks eventually focussed on how to give empowerment and wealth to the people of the land, whether South Africa or Asian country.

The ideas on how to become rich became a central theme in the talks because there are lots of wealth out there, lots of riches out there-- waiting for the right people with the right mindset to come and get them.

In my last blog, I shared about the pathfinder or the path blazer who has to tread on the treacherous roads using horses and animals. Riding narrow pathways to success is hardwork and more hardwork. Some CEos told me that they work a 70-80 hour week. Wow, their passion is tremendous and their energy is enormous..

However there is the wide road that is easy but full of distractions. When the African delegates talked about their compatriots who did not spend time toiling in their fields instead while away their time joining the military rebels hoping for a better pot of gold, their lands become barren lands , wind -blown and sun-burnt. Such distractions caused many people to suffer when all they have to do is find pot of gold right beneath their feet. The tilling of golden corn, the harvesting of cacao and the collecting of long sheaths of wheat at the end of summer are all manifestations of the golden opportunities which they lost in trying to find the easy way out - by joining the rebels without really much cause.

The wide path to success is actually opened to all of us. It is our own fear of becoming rich that frightens us. What we need is to learn the millionaire mindset. Many multimillionaires or billionaires would have told you the same things:

a) spiritual health is vital for your right focus. When you focus on doing well in your field, you must acknowledge that having all the wealth in the world will not make you happy, it is the spiritual path that works for all of us. Finding peace from the higher order by being clear minded that you must be grateful for whatever you have. This spirit of gratitude enables you to focus on expansion of your work. It gives you energy.

The reason why Tiger Woods strayed from his path of success into wayward behaviour is that he thinks he is great; he alone is able to achieve so much.. He became ungrateful so he decided that he had the right to mess with his life. Now he has wasted lots of time rehabilitating while other golfers go on practising their skills. Gratitude is the spiritual path that rich people must take in order to achieve even greater wealth.

b) Priority management is another thing you need to do in this wide path to success. Easy road means you need to prioritise what you really can do and what you are supposed to do to achieve the wealth waiting for you.
Priority managing your life means that you are unlocking and creating new perspectives that will lead to wealth. In the last few decades, you can see the great number of things which are now common objects: handphones, computers, new consumer appliances etc.. these are created by the rich people with great ideas. Riches are part of your creation. You need to prioritise your life so that you have time to think how to become rich. Do not clutter your life with small things, meaningless worries about little expenses, rather asked yourself, what I can do to achieve more money to buy all these stuff.

I know one CEO whose net worth is about $300 million. She told me that she does not worry about spending how much, she wants to know how much she can earn to continue to enjoy this spending.. so she is very generous towards her staff and employees and thus her business continues to grow because her priority is right and her treatment of her workers are right , thus creating more and more wealth for her business and her staff.

The question at the end of each day should be what is productive, positive and will lead me to produce greater wealth -both material and spiritual so that I can empower myself to become rich and others to become wealth too. Wealth shared is riches doubled.

c)riding the right vehicle on this wide road. In narrow paths, you need a sturdy horse and a good co-rider. In the wide path which is open to all, you need to find the right vehicle - it could be a car, a bicycle or even a pair of rollerskates. The idea is to use the right means to enable you to transport from one point to another easily. Plan your route - where to go - what you like to do and what is the fastest way there?

Communicate with others to get things done. Do not do things alone unless you cannot help it. Talk to people and you get inputs for your success. Like Robert Kiyosaki said you should use other people's money, so you should use other people's ideas and renovate them into really your own modified version of invention. Some inventors did not first invent their stuff, they redeveloped other people's ideas which may not be working for them and re-do and re-package into their own and then they succeeded where others failed. This is because of the value-added energy they put into it. So renovate some old ideas or look for old things to repackage and redesign.

The last thing you need to do in this wide road with lots of distractions is to plan well and play smart so that you achieve your financial success and the pot of gold which you are looking for .

The motherhood of success is already established. It is thus up to us to go and grab the wealth - by building up enough passion, compassion and active listening to your guts.

In my next blog I will share in some detail , some of the money- making ideas for poor countries (means poor people who could be rich) which the African delegates shared recently and would want to bring those ideas into fruition so that money is there for everyone. Poverty can be eradicated in this world, if we only believe and overcome our fear of being too rich!

So what are you waiting for?
Just do it!
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - Roads to Financial Success

2010-03-03T21:19:00.000-08:00

Ideas on How to Become Rich - Roads to financial success continues ...

Hi folks , there are many roads to financial success and riches because everyone of us has different talents and skills. However one of the paths that we should take whether we are gifted in the field of choice or not are the following stuff:

a) we have to pick the right horse or the right resources
b) riding on the horse itself takes time and energy, so be flexible and adjust according
c) have a positive can-do attitude which is vital for riding high because the horse may tilt anytime along the difficult path..

The essence of the horse riding is to ensure you are able to harness onto the saddle and hold on to the reigns so that the horse will not fling you out of his back. The can-do attitude will enable you to be the one in control.

To become rich in whatever you do , you need to be in control, be the one who is the "go-to" - ie the one that people can find easily, you are their person to look for. This always there enables others to see you visually so that whenever there is opportunity, you are there to grab it.

To be rich and powerful, you cannot be the laggard, waiting in the wings, you have to be the go-getter.. the one in front. Of course when you are noticed, you may also get brunts and brickbats, but hang on there - patience is the key to financial success.

The narrow path which only horses and animals can tread is usually a great path because you are the pathfinder, the path blazer. This is important because it means you have the capability to lead.. just be there whenever people need you, and you will be able to lead in any situation.

Give your time - from the front, let people who know you , know that you care, you are there for them. Anyone out there is a customer and is one who may give you the greatest opportunity.

The main idea for becoming rich in this winding path of life is to mount the right horse, get to the front of the queue and be noticed by others - have the go-to availability so that people can come to you and can trust that you will lead them .

This is one of the paths which will make you rich in no time at all. Many rich and famous people start this way, Celebrities most of them start as waiters in restaurants display the above factors of success and thus today many of them are in the front of wealth and financial success.

Today, do something for someone and get noticed for your kindness as well as for your future.. The path of winding road is sometimes the best road to take in your quest for riches and wealth... go giddy-up and goa....

Cheers
Sally Klaus
Ideas on How to Become rich

Ideas on How to Become Rich - Roads to Financial Success

2010-03-01T15:45:00.000-08:00

Ideas on How to Become Rich - Roads to Financial Success -Intro

Hi everyone . It has been sometime since I wrote on my blog. I have been busy lately giving talks on financial independence and how to achieve success in our short stint on earth.

Today I have something to share about some roads to take all of us to financial success and wealth.

Many of us often wonder why there are so many poor people in the world. Don't they go to school? Don't they want to achieve wealth and riches? If only poverty does not exist, then all of us would be very very rich. Unfortunately this disparitybetween the rich and poor is growing and is real in this world because each one of us has different ways of looking at things and different endowment of talents and skills. The worst of all, many people with skills and talents do not put theirs to good use. Instead many squander their talents away or bury them in the deepest part of their lives and go about being poor all their life... sad but true.

They are many ways I mentioned before , to riches and wealth. I was born poor, having to share with lots of other people when I was a child. My dress was a "pass-down" from the elder siblings and my books were old, tattered and torn. Today my children can afford books whichever they want, meals in expensive restaurants and go about in cabs or driven by me, the main chaffeur in the house . However there are many friends whom I know , who are still living from hand to mouth today. They came from the same background as I and yet, today they are still living in slums and wondering what had happened ...

It is true that everyone can be rich. The question is how? The question is also when and what?

Today I will shed some lights on the how to become rich and provide clues to the roads to achieve this greatness and for you to accummulate immense wealth at your own hands slowly but surely.

To acquire riches and power, you can do several things:
a) Dream big and start a business;
b) Take over a successful business - small but growing business
c) Jump onto some rich people's wagon and learn from them till you master the skill or trade;
d) Become a celebrity by winning the American Idol competition or some other contests so that you can acquire fame which leads to wealth;
e) Marry a rich person like what Marilyn Monroe wanted to do
f) Use other people's money if you can - follow Robert Kiyosaki's methods
g) Invent something which is useful and can be used by millions
h) Check out any unused or old farm land which may not be lucrative now but who knows , your land could be the answer to the next alternative source of energy..
i) the last method is the oldest way of all... save all you can from today if you have no other roads to take..

The roads mentioned above may not be suitable to some of us or all of us but it is still good to ponder and think about them because thinking itself will enable our brains to function better - like some Chinese who look at gold fishes everyday and dream of wealth, eventually wealth comes their way because "what the mind can conceive and believe, it can be achieved"!

Why wait, do the dreaming now and then. Then decide which path is suitable to you .. and go forward.

I will share the details of each road or path in my next few blogs because the journey of a thousand miles must begin with a single step. The ship cannot reach distant and beautiful places without first leaving the dockyard in which it was built...

So be patient and wait for the right timing and take the right road which is comfortable to you to tread it because nothing achieves like success when you accomplished....

Cheers and have a great day
Sally Klaus

Ideas on How to Become Rich

Ideas on How to Become Rich - Living with wealthy thoughts

2010-02-24T15:55:00.000-08:00

Ideas on How to Become Rich - Living with wealthy thoughts

Hi, I have been away for sometime. Today I would like to share some insights into living with wealthy thoughts. This is because there is abundance of wealth in the universe for all of us to gather and use wisely.

I will show you the abundance of living a wealthy life with wealthy thoughts and abundant joy in harnessing of such riches from the universe.

There are lots of opportunities in this world for all of us to gather riches, treasures and material things. Many people who are poor do not undersrtand the mystery of this universe. The world has lots of resources both in the water around us and on the land surrounding us and on which we live.

From precious metals such as gold, silver, oil and minerals of sorts, there are treasures under the deep ocean and in the land beneath our feet. I want to share my brother-in-law journey from rags to riches because he was able to understand the wealthy thoughts of harnessing the resources of the land.

15 years ago, when people do not really bother about the investment in mining minerals in the desert of Australia, he actually went into this venture. Of course lots of people looked at him, thinking he was mad. Yes, he was mad to think that one of these days some of these unwanted minerals or resources could become so precious. Materials such as uranium, bauxite etc.. have today become lucrative for many kinds of industries - mainly mlitary and economic.

So instead of getting angry with the circumstances, my brother-in-law used all his savings and invested wisely in such ventures. Patience paid off because today he is jet-setting from country to country , enjoying life with his family.

The first step to living well is to live with wealthy thoughts. This is what my in-law did. So what is wealthy thought? It is the willingness to believe that you are worthy of greater wealth than you have today. You are worthy of greater joy than what you enjoy today.

I will highlight some of the powerful wealthy thoughts which you can harness for a greater riches and greater joy in life. Start thinking rich today.

Cheers
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich- Investing in Gold - Part III

2010-02-03T20:59:00.000-08:00

Ideas on How to Become Rich - Investing in Gold - Part III

In this section, I will be sharing with you tips on the buying and selling of gold with a view to profit in the long run.

I have over the past 20 years invested in both gold ornaments (jewellery) and gold bullions because as a conservative person, I have faith in gold more than in currency or other financial instruments.

The secret is that I managed to sell off some of my obsolete gold pieces for prices higher than I bought them for, after using them on several occasions for self adornment such as attending important meetings and functions. The prices of gold kept going up over the years due to the weakening of the US Dollar that I am reluctant to part with my gold collection in anticipation of further rise of price of this precious metal.

Well, how to buy and sell gold? First, there are several ways to buy gold. As mentioned already, you can keep gold in its physical form, either as ornamental gold, which comes in various purity standards; or as gold bars normally done by rich individuals who love to see the colour of money in gold or you can invest in gold as a financial instrument very much similar to any of the instruments used in the trading by the interbanks which can be spot, forwards or options. This is because allocated gold can be traded by central banks and other financial institutions via the commodity market, just like any commodity trading. Then you can also use this method to sell your gold.

Let me just explained a little further about how the market for gold is traded. Trading would be a series of deposits and loans taking place. A central bank for example, sells gold to a bank, which lends the gold to a gold producer who hedges gold that it has yet to produce (or mine) etc.. So transcripts very much in form like the shares or stocks, would move from one institution to another . This complex trading system is to enable the gold to have a smooth transaction from the buyer to the seller via a financial institution. The difference between the buying price and the selling price would then be calculated very much like the bank's interest rate, which in this case is the gold interest rate. Well, the main idea is for you to be able to get a good rate when you sell your gold through the financial institution.

Another way to sell gold is through the Gold Option market which functions very much the same way as the currency market. There is one more way which is to use fold as hedge funds but this method is not really exciting as the gold will be bundled with other assets as a total package by fund managers of the various financial institutions.

As a final note to all of you, gold as an inflation buster is still valid because governments and world economic conditions may change, so holding on to some form of gold investment will enable us to keep our traditional and conservative view that it is better to be safe with some gold than to be sorry.

Gold is still a barometer of global financial health. Although gold may have lost some of its lustre over the years, it is still very much a part of the human sentiment or confidence to have this precious metal in their portfolio for wealth and riches.

Before I end , some of the questions you should ask yourself are:
a) what is your motivation for investing in gold?
b) what is your view of the USDollar?
c) what is the market sentiment or trends in the financial markets?
d) Why silver is not a real good investment?

With the above, I hope that you can think about possibility of investing in gold for the long run. Gold investment is not really for speculators but for people who want to have something to hold on to whatever the future beholds..

Cheers and go for the golden opportunity!
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich -Investing in Gold- Part II

2010-02-02T01:32:00.000-08:00

Ideas on How to Become Rich - Investing in Gold Part II

Hi, I will now discuss about the potential of gold as a long term investment as this commodity does not wear out through time. Also its value is well recognised by everyone and by every country. Earlier I mentioned the reasons why gold is so sought after.

During the last few years, governments of the world have been buying and hoarding gold and have a hefty gold reserves in their national treasury. This is especially so of Asian economies like China and Japan who value gold as their alternative strategy of diversification in the monetary administration.
They do so because of their strategy for national security as well.

The governments of most countries including the United States argued that keeping reserves in gold enabled them to control the fluctuations in currency and other financial instruments as part of their macro view of economic development and growth.

Due to the intrinsic value of gold and the desire of the people all over the world to own gold either in the form of jewellery ornaments or in the physical form, gold investment should be part of our getting rich strategy for the future. Moreover gold is a barometer of one's wealth in the eyes of other people so it is a good financial asset to have.

Let me also share with you another very important reason for investing in this metal. It is because in times of crisis, gold is still the best form of investment because currency and other precious metals cannot provide the mental and spiritual wonders of gold. Gold does not tarnish unlike other metals. Also the world after the banking crisis in 2009, the environment for gold investment has gained prominence due to the lessening of confidence in the banks and other financial instruments coupled with the weakening of the US Dollar.

It is a good time to go into gold investment whether it is in the physical form of gold jewellery/bars or ingots or in the form of ETF (Exchange Traded Funds) or in the form of structured notes similar to those instruments traded in the markets. Structured notes are usually capital guaranteed where the returns of investment is based on the performance of gold.

As gold is a quasi currency, gold prices tend to rise when US dollar falls. This is evident during the past few years when prices of gold kept going up and the US dollar kept falling.

However if you wish to invest in gold, you have to first examine your own profile with regard to risks and your circumstances in such a way that you are able to take whatever outcomes of the market. In investment you have to take whatever outcomes of the market which is very volatile especially these few years due to the decrease in confidence of the financial systems in many parts of the world.

Another point you have to take note is the market sentiments which could be changed very quickly due to bad news or could rise very much due to some positive sentiments of the general world economic conditions.

Well, to be rich, one has to take certain calculated risks. Investing in gold has certain advantages. It is definitely up to us to weigh the pros and cons of jumping into this volatile gold market today.

Think about it but it is worth its weight in gold!
Cheers
Sally Klaus

Ideas on How to Become Rich

Ideas on How to Become Rich - Investing in Gold Part I

2010-02-01T15:30:00.000-08:00

Ideas on How to Become Rich - Investing in Gold Part I

Hi everyone . After sharing the investment opportunities in real estate and land resources, I would like to share some tips on the investment in gold .

I will divide my sharing in three parts:
Part I - Why is gold such a precious commodity from ancient times till today? The places in the world which contains gold and how people mine gold.

Part II - The potential of gold as a long term investment project

Part III - How to buy and sell gold with a view to profit

For the first part, I would like to discuss and share with you the reasons why gold is such a precious commodity from ancient times till today. If you take a look at statues of ancient civilisation from golden statues and tombs of Eygptian Pharaohs to Golden-bodied Buddha carved in the mountainous regions of China and parts of South East Asia, you will know that gold has been a sought after commodity for thousands of years.

The first simple reason is that it shines brighter than any other commodity and golden colour represents sunshine, glory and majesty. All the virtues of exhorting gold point to the fact that gold is so alluring and so demanded by lots of people especially women even today. In fact gold is more valuable than diamond as a precious item.

The second reason is that gold is used as a form of money exchange in ancient times for goods and services, because it is portable and easily identified by all.

Another reason is its durability as a precious metal. It is today considered as the third currency in the world after US Dollar and the Euro. Today, many governments of the world are hoarding gold as part of their treasury "insurance" - also known as reserves. This is also why gold prices have been going up these recent years because people do not have faith in currencies such as the US Dollar and Euro.

Knowing the various reasons why gold is so vital in economies and to individuals, let me now show you the places where gold can be found.
South Africa had been known to be the most important producer of gold until recently when China overtook it as the main producer of gold in the world market. The romantic allure of gold mining is that this metal is in glittering lumps and shines even in its raw state, before purification.

Two types of mining for gold. One is the open pit and the other is the underground mining. Most countries use the open mining method while in South Africa the gold is predominantly underground. Gold deposits were discovered by the Egyptians thousands of years ago and little has changed in the way it is being mined today.

Inspite of the challenges of underground mining such as high temperature, building up of gas in the mines and the possibility of earthquakes and other tremors in the underground caves, people would risk their lives for this precious commodity which can bring them prosperity and lots of wealth. It is worth the "risk in gold", like the saying. The joy of mining gold is beyond exhilaration to those who are involved, I was told.

Due to gold mining, thousands of people are gainfully employed in Africa and other less developed countries. Technology and advanced communication today enable gold mining to be much easier than in yesteryears. Though the environment for mining is hazardous and dirty, gold is still the alluring glittering metal that people would kill for.

Once the gold is mined, it is converted into dore-bars, at the mining sites. They are of variable weights and qualities of purities. There are many refineries in the world specialising in the refining and purification processes before gold can be the beautiful jewellery desired by women all over the world.

The measurement and the definition of the purity varies country to country and the gold bars are packed in different sizes due to the difference weight measurement used by countries. Nevertheless, the precious metal is still a very very vital commodity for the world economy and it is thus good for us to have some in our own treasure chest too.

Keeping gold as an ornament or as an investment project can be an exciting and interesting endeavour because it is a lasting metal and the value can only increased with time as the world is so uncertain about the fluctuations in currencies etc.

I would like to continue sharing in the part two on this topic shortly. Well, I leave you to think of the proverb, that "even Buddha needs gold dressing to look good"...

So, you see how important is it to grab a bit of this golden chance of our lifetime to make lots of money through this golden investment. I believe that gold is and will be the most important metal for years to come.

Cheers and have a bright golden day today
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich -Riding on the economic recovery

2010-01-27T22:13:00.000-08:00

Ideas on How to Become Rich - Riding on the economic recovery

Hi everyone, I hope you have been busy lately making money and becoming rich? I also have been looking at the world's economy as a whole and it seems that the road to recovery is here.

As many countries are slowly moving towards economic and financial recovery, I would like to encourage all of you to ride on the waves of recovery and look around for opportunities in your surrounding and open your eyes and ears to trends and challenges for the coming months.

Right now, one good prospect is to be able to invest in property because land is a scarce resource in this world (70% is covered by water, leaving only 30 % and less than that for arable and habitable land). In America, the prices of property have dipped somehow over the past two years due to mis management of resources and lending. If you have some spare cash, you should look around for reasonable plots of land or houses to invest for the long term. Tourism, population growth and other economic factors will boost prices of property in the future. Yes, no doubt , land and properties' prices were badly hit during the past years' crises, yet there is golden opportunities that may arise from this setback. As people fear to go in, you should now examine the possibility of investing in property market and other natural resource challenges. This is for the long haul.

As for the other countries such as England, Australia and New Zealand, property prices are steadily rising because of the rich Chinese and Indian investors who are out there looking for a good bargain. They are the ones who will make lots of money when the returns come in soon. To enable you to be a prudent investor in property and real estate, it is good to weigh the pros and cons of investing in this long term asset or to go into property-related stocks and equities .

Both are challenges but both are great opportunities to boost your riches and success if you are prudent and take calculated risks. I hope those of you reading this will give this sector a chance to enhance your monetary growth too. It may be a bit risky but no venture, no gain. No risks, no returns.
Also do not confine yourself to just your own country's real estate, look anywhere in the world for a good bargain. The world is a global village now. Travel is easy, immigration is not difficult and buying property is not difficult too, if you can get the right legal advisors and right price! My brother in law made lots of money investing in Australia 's real estate and bauxite (a kind of natural resource) stocks.

However it has to be a careful consideration to make money in property and real estate investment. Like all investment, it is good to check your inventory of assets, cash and your ability to hold on for at least 3-5 years before any yield or money can fill your pockets.

Good luck to your calculation. Do not take too long to look around for a great place to invest or good stocks or securities which are related to properties because delaying decisions may be bad for you. Think with your heart and your head and make a wise decision soon.

Happy hunting for the fertile grounds. Cheers
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich -E-Business III

2010-01-25T15:37:00.001-08:00

Ideas on How to Become Rich - E-Business III

Hi friends, I have been discussing with entrepreneurs who use the e-business for their transactions daily in the comforts of their homes and becoming rich in the process. This is because they cut down on expenses such as rental, utility bills and other expenses if they had run their business outside in a separate premise.

The e-business is booming in many countries and you can see that there are many advertisements when you open the computer and log on the internet. Almost everything is connected to some form of advertisement.

The internet business is a multi-billion business and many of us use this information highway to get rich and to get stuff for our daily use and business use as well.

There are many ways to use this wonderful high speed device for earning a quick buck, lots of money and sell things that are fast moving and exciting. One of the things which many people are doing in e-transactions are high yield, light consumables and easy to transport materials such as jewellery, fashion watches, games, medical instruments and other precious materials which are light, portable, high value and demanded by many people all over the world.

You can think of small items which may be of reasonably high value and demanded by people in your town, your neighbourhood and maybe your countryfolks and then plan to use this e-business to get across to the users on the other side of the globe.

One of the ways to advertise your products or services is to do a spam . although now spamming is not really welcome by most internet users or providers, it is still worthwhile to send to all your friends and email address list. Out of 100, I am sure at least 1-10 per cent may like your products or ideas and buy from you. In this way, you can make it rich in no time at all.

Besides the mass sending of emails to friends and addressees, it is good also to use professional internet portal designers or web designers to help you highlight your stuff so that they look great on the internet for sale. People love colourful advertisement and colourful designs because they look good to our eyes. Make your stuff interesting, attractive and also exciting for people to want to own your products or services.

To become rich via the internet is the easiest thing today. If you own a shop physically, you have to maintain the appearance of your shop daily by hiring cleaners and maintenance staff. This is at a very high cost plus the rental expenses which can be exorbitant in today's property market conditions. So, in the comfort of your own home with a cuppa of hot coffee or hot chocolate next to your work station, you can become rich without budging from your warm seat. Why not?

Like what Albert Einstein mentioned long ago, imagination is far greater than knowledge. So go and imagine and visualise your riches and the things you wish to use to become rich and who knows, the next millionaire or billionaire could be you!

I would like to encourage all of you to try your hand at this e-business because we are living in exciting times with really lots of opportunities to become rich if we jump onto the right wagon during this fast growth information highway. Also with a good handphone or mobile, you will be able to do your business without much fuss.

Start thinking at least 20 minutes a day on what to do with this e-business. You can start small but you must think big. The world is your market when you harness the wonders of the e-business. You can become rich too. Go for it. The pot of gold is waiting for you at the other side of the internet.

Cheers and have a great day.

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich- home business

2010-01-21T16:39:00.001-08:00

Ideas on How to Become Rich - Home Business

Hi how are you today? I will be sharing with you the benefits of running a home business and starting a cheap and easy enterprise from the comforts of your home.

To become rich, many Asian entrepreneurs started their businesses from their own home. First it is cheap to do, secondly it is right at your doorstep; no wearing of neckties or formal clothing and thirdly it is cost saving in terms of other expenses such as rental and furnishings.

It is not difficult to start a home business. However you need to differentiate between home and your home office. Separate a room or partition a space to enable you to mentally and physically be at the home office. Although you are still at home,it is good to have a separate place to work in.

Do not use your bedroom or the hall to start a home business. This will tempt you to be lazy and use it as part of the daily routine of staying at home and not being productive at all. You have to really separate a space so that you go there as if you are working in an office, although you are actually at home. This mental separation is good for productivity and real work. Otherwise you will be enticed to laze around and not get things done usefully.

Many young Taiwanese and Hong Kong youths use their home to show case their designs even. They use a space , even window panes to promote their products so that passers-by can see from the streets what they have to offer. They also have a workstation with all the necessary technical resources such as a desktop, a monitor, printer and also a handphone so that when orders come in, you can process using the computer. I know many of them are rich millionaires living high lives in their countries.

Any kind of business can be a home business. Even catering business or floral business can use home as the base for preparation and for delivery. In fact, in Singapore, many florists and caterers use their homes to prepare their products and they hire part time or temporary delivery personnel to deliver their goods and services. This is a win-win situation where you do not incur additional costs of owning a van or hiring full time staff who may need other perks .

The success of a home business will depend on several factors:
a) you need to have discipline to separate home and work if you work from home;
b) you have to get all the necessary documentation and legal formalities cleared and not be entangled with the law later (so you need to find out from your area office what are the legal restrictions of starting a home business);
c) you have to have products or service that do not require lots of space or preparation and
d) you need to work at least 8 hours even at home to ensure productivity and tangible results.

All the above factors will help you to become a serious home business owner. The advantages of home business are great for "housewives" who have young children , so that she can keep an eye on them at the same time while doing useful work. Also people who are experts in certain fields and do not like to work under other people, can use home business to expand their knowledge and research.

I have many friends in many countries who are rich and successful in running their own home business. Their businesses range from providing delivery services of sorts to selling watches over the internet and to personal purchasing for rich tycoons all over the world.

See, you too , can become rich by doing your own business without much expense. The savings on rent, electricity bills and labour can enable you to increase your profits and to have independence of enjoying your own scheduling and lifestyle.

Go for it if you are game enough. Cheers and have a great day!

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - E-Business II

2010-01-18T16:13:00.000-08:00

Ideas on How to Become Rich - E-Business II

Hi everyone , today is a wonderful day. Believe that it will be a great day for great ideas.

In my earlier blog, I mentioned that I will provide you with the process of website design and the front page development. I spoke with several Information Technologists and website designers who told me that it is not the website or web page which will attract customers. Rather it is your product or service which people want. You see, if you can solve the needs of customers, you can become very very rich. It is not how beautiful your website or web page.

In Taiwan and mainland China, many of the young retailers use the e-commerce platform to make fast bucks and become richer than their predecessors. They make their products attractive (not the webpage attractive) and then use a reasonable price system to entice buyers on the internet highway to stop over and buy from them via the e-bay, e-net and other e-commerce domains.

My IT experts told me three very important things to do if you want to attract business on the internet arena.

First, you must think how the internet users will come to your page. What are the key products which are often searched by people all over the world?

Then you design a simple cheap and easy to read web page which enables all kinds of readers to understand the products or services you are selling and then , kawabunga, you are in business and doing booming business when visitors to the net come onto your webpage and order the stuff you sell.

The next thing is to be able to collect payment safely. It is important to have a secure payment scheme for your buyers to pay you. The collection is as important as the selling. No point being so good in sales but unable to collect your payments, right?

My suggestion is that you think what people want, what people like in your country, town or even your neighbourhood, then go for that kind of products which you know there will be customers and then you are on the way to riches and wealth.

The right combination of clear web page, simple message or advertisement which people understand and your products at a reasonably good price will definitely attract customers to visit your website and to buy your products via the internet.

Go and get that product which your neighbours want, your family want and your friends may want... and you are in business for success.

Cheers and have a great day for e-business!

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - E-Business

2010-01-18T00:11:00.001-08:00

Ideas on How to Become Rich - E-Business

Hi a very good day to all of you. I would like to discuss the idea of becoming rich through e-business or e-commerce.

The world today is in the information and knowledge age. There is no turning back to basic way of doing things in a conventional way. The telecommunication systems and the internet are so advanced that we need only seconds to connect to anyone anywhere in the world. In fact billions of data and pieces of information are at the same time being transmitted every minute every day around the world. Wow, it is a very fast-paced world we live in today.

It is thus very important that we ride on the waves of electronic communications and jump onto the bandwagon of e-business or e-commerce. What does this mean? It simply means that we can trade with one another without having the brick-and-mortar building or physical marketplace. We can do business with anyone around the globe using the internet.

The e-commerce is a booming business today. There are certain things you can harness on the internet and set up a web page which will enable you to advertise to the world. The web page can be designed at a very low cost and you are in business already if you have a great idea which is feasible and a front that can enable you to do your business. I will discuss this in my next blog.

The e-commerce can be done very easily. Depending on the rules and regulations of your country, you can set up almost within minutes and you can start trading on the internet and sell your stuff to anyone around the world. My friends have prospered and made money through e-bay; e-transactions selling almost anything under the sun. People in China even use the internet to sell pieces of property on the moon and collect money from their buyers via the internet visa payment.

It is not difficult to start any e-business. What you need is a good front page design to enable people to click onto your page and see what you have to offer. You have to make sure your stuff are attractive for the millions of viewers on the internet who are spoiled for choices. Any kind of business on the net would have at least thousands and thousands of competitors. So making your web page interesting and attractive will help a lot in getting viewers and visitors to your page.

Next, get the right products which people want. If you are able to sell what people want, at a reasonable price and you can deliver as quickly as possible after collecting payment, I am sure you will become rich in no time at all.

I have friends who did second-hand sales of old watches and clocks and made tidy sums of money while there are others who sell dresses and handbags over the net. Many Chinese and Taiwanese youths have made lots of money and become rich young millionaires through this e-business.

It is easy to set up and easy to operate. It is much better than a physical building where you need people to monitor sales and also get customers. In the e-business, you can just do it at your own convenience and using a mere computer or handphone.

Why don't you think about it? The handphones and internet are the ways to earn money these days. But think carefully what you want to do before jumping head-on into this very crowded information highway. You have to think fast, act fast and deliver fast if you want to succeed and become rich e-commerce entrepreneurs.

However nothing is impossible. Only believe in your stuff, your ability and your reaction to the speed which you need to harness. For those who are interested, the next blog I will discuss the process of setting up of the website and web page.

Best wishes to your new e-ideas on the internet. Who knows, the next millionaire could be you! Cheers

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - What is the single most important problem you want solve to become rich?

2010-01-14T21:33:00.000-08:00

Ideas on How to Become Rich
What is the single most important problem you want solve to become rich?

Hi everyone. By now, most of us have some ideas how to become rich but deep down inside all of us, what is the single most important problem we want to solve so that we can become rich?

There are many issues, obstacles and trials in everyone's lives. However what is really the single most important problem we want to overcome so that our journey towards riches and power can be easily attained?

All of us have dreams. All of us have goals and a long list of things we want to do. Yes, most of us have big plans, big dreams and huge goals. Many of us even have great ideas and fantastic visualisations. However the basic to all these dreams and plans boils down to one single most important problem we want to solve and need to remove before we can put all the master plan together.

Ask yourself honestly , what is really the single most important problem bugging you today? For those of you in business, what really is the big issue on hand that you have to remove in order to succeed at getting greater turnover and sales; greater profits and lower staff turnover; bigger customer base and bigger markets.

For those of you not in business but wanting to succeed in life, what is the big obstacle that hinders you along the pathway to riches and power? Look deep inside your head, examine your heart and think of the single most important problem you want to solve.

At the end of the day, we want to do more with less; we want to achieve more with less resources and less time. So, how to identify the key problem that we need to remove from our journey to our pot of gold at the end of the rainbow?

Actually the problem with most of us is that we are so involved in trying to reach the goals we set that we forget the fact that we need to face the big problem of overcoming our own negativity. Experts and gurus have told us to focus the positive; accentuate the good side of our lives or our business; look at the income generating arms of our business that we forget to harness the power of the negative - mostly fear.

Just like a child is cute or lovely when he does not give us any problem. We want the child to grow up easily so that we can just concentrate on feeding him with all the goodies. However we also have to accept the child when he is sick or when he is giving out tantrums. In any organisation or home, there is bound to be some kind of problem or challenge which needs to be addressed and handled with care.

So singling out the most important problem in our lives or in our business will give us the preparedness to take on even greater challenges or opportunities in the future. Instead of hiding the problems or sweeping them under the carpets, we should take the main obstacle, which is blocking our view of success and take steps to remove the big boulder along our road to riches and power.

The biggest problem is FEAR. We are afraid of being too successful; we are fearful of our own greatness. We fear our ability to handle negative side of things. We fear 101 things. The best way is to face this BIG problem is to take it head-on and take the bull by the horn. By brave to face the main problem whichever it is and with an open mind. Then do the best we can to solve the problem. Then the problem will not grow to become gigantic shadow over our lives.

Oftentimes, fear is like mushrooms; they grow in the dark when we least care about them. When the problems become too huge, we are not able to solve them and thus many organisations and people become despondent and suffer losses unnecessarily. To nip the problems caused by fear of any kind, it is good to tackle them one at a time; starting with the biggest fear of them all.

My advice is that we should seek out the biggest fear , the biggest issue or the biggest challenge that we are facing and remove it before it gets out of hand. Look deep within us, do not let negative thoughts or fear tear us down.

To leap forward, you need to be brave and jump. To remove warts and acnes, you need to use the right equipment and enough patience.

So take the most fearful problem or most negative part of your business or your life out and remove it by facing it head-on and then courageously fixing it. Only you will know what is your main problem. It is like the Chinese saying, to untie the knot, you need to find the one who ties it.

You are the architect of your own destiny to riches and to wealth. Only you alone, can identify your big problems and throw them out. Friends and associates can only hold your hand, guide you along and maybe offer their time and resources. It is up to you to conquer the fear and face the music on your road to riches and success.

Good luck to all of you. Find it, face it and fix it! The world is a very wonderful and wealthy place after all....

SallyKlaus
Ideas on How to Become Rich

Ideas on How to Become Rich - How to do business in China -steps 7 to 10

2010-01-12T18:27:00.000-08:00

Ideas on How to Become Rich -
How to do business in China : Steps 7 to 10

Hi good day to all. I will now share the rest of the steps from 7 to 10 so that you have the full picture of what investing in China is like.

Step 7 is an important step. Learning the Chinese Language (Mandarin) is very crucial if you want to gain a foothold into this vast territory. Since the First Emperor of China Qin decreed a common language, the Chinese commoners are unified by a common tongue although there are hundreds of different dialects and races. Even though it is easy to find interpreters and translators, it is good for you to know and understand the spoken language of the Chinese.

When you have to rely on translators, some of the meanings or ideas may be lost in transition. It is good for you to use the Chinese language especially in conversation with them to show your rapport and friendliness. Investment in learning the Mandarin language will help you vastly in securing deals because you are giving them face when you can speak their lingo.

So do not hesitate to learn Chinese now. It is the right moment to learn as China is growing steadily as a world economic power, surpassing Germany as the second largest economy in the world in 2009.

The next step would then to have a realistic business plan that is able to flexible and fluid to accommodate the whims and fancies of the Chinese people. Always expect the unexpected in China. Never assume anything because things can change suddenly. In China, anything is possible and everything can also be impossible.

Your business plan must be able to have strong fundamentals and yet flexible enough to endure any changes in the manpower, legal and social regulations that may come without warning.

The last step which is Step 10 - just do it. This is like the Nike's logo. Follow your heart and follow your instinct when doing business in China because the journey of a thousand miles must begin with a single first step. Learn as much as you can, do as much as you can and work as hard as you can - the three mottos of success in living and working in China.

That is all that I can share with you from my own personal experience of working and living in China. It is a wonderful experience because what you learned from the people is far richer than what you gained from them monetarily or financially. Of course, you become richer in both ways.
See, it is a win-win situation to be able to go into this land of opportunity.
Think about it and go for it if you can!

Good luck to your venture of finding riches in China
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - How to do business in China- Step 5 and 6

2010-01-12T00:13:00.000-08:00

Ideas on How to Become Rich -
How to do business in China - Steps 5 and 6

Good afternoon to all of you
The next two steps are Knowing the Importance of Relationship (Guan Xi) and Caring for your Partners(Teammates) respectively.

In China, relationship building is more important than business. It is through Guan Xi (relational intimacy with others and social graces coupled with loyalty of friendship) that enables one to survive anywhere in this vast market of different webs of information and customer needs. To become rich through guan xi is the fastest way in China.

This is because the integral part of the Chinese mentality is that of being a good friend i.e. being able to enhance great interpersonal relationships and loyalty. Trusted relationship and loyalty are far more valuable than money in this country. Legal documents mean nothing to the business community. Often, the contract is verbal with no written agreements at all. Their word is king. To the Chinese, trusting them wholeheartedly will enable you to go far.

But can we trust them wholeheartedly when we come from another environment where words have to be written clearly without ambiguity and legal documents drawn up almost to precision before engaging in any kind of business deals?

The key to this step 5 is patience, tenacity and perseverance. It may take years before your bountiful business come into fruition but it is worth the wait and time, because by then, you have won over the whole community. As the Chinese are very communal, you will then gain the trust and business of a larger group through patience, tenacity and perseverance and guan xi. The money will then flow into your pockets like the waterfalls which are a common features of Chinese scenery.

With firm grasp on guanxi, the next thing to do is to embrace your partners, teammates and those who work with you with care and love. In order to keep your customers and ensure you have steady market, you have to care for your team members through carefully planned reward system. Monetary incentives are very vital to your success as well as to the team mates. To catch big fish , you need a big net and large tasty bait. The bait has to be "tasty" enough to catch the big fish.

So, caring for your stakeholders and teammates in a manner that can be seen to reward them and motivate them will bring you long haul monetary returns though you have to sacrifice short term gain by providing enough monetary incentives to keep going. A wise and prudent system of being seen as generous to your team mates can give you far greater profits and gains. This is just to illustrate what the saying," it pays to be on good terms with everybody"means!

Step 5 and Step 6 are vital tactics for gaining your hold in the hearts of the Chinese who love guanxi and want to be rewarded generously every now and then as part of their motivation to assist you in becoming rich and powerful.

The last few steps will be discussed in the next blog. Have a good day and cheers

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - How to do business in China -step 3

2010-01-11T19:47:00.000-08:00

Ideas on How to Become Rich - How to do business in China: Step 4

Hi good afternoon

There are a few more steps to the success of doing business in China.

Having secured the right partnership, we next have to be very careful in dealing with the Chinese partners. Getting partners is one thing but dealing with them is another matter altogether.

The famous saying of Sun Tzu, a military strategist who said that it is important for you to know yourself thoroughly and then you study your opponent thoroughly , you are sure of victory in every battle. This is especially so when dealing with partners and business in China.

You have to really know what and who you are dealing with. There is no level ground in China because you are a foreigner and you are subject to rules and regulations of this vast country as well as the "way of the dragon".

Well, way of the dragon means that business relationship is not a direct or one-dimensional framework kind of environment, it is a multi-faceted and a very paradoxical inclusive environment. A nod from the head or a great smile from you partner or client is not acceptance or agreement, it could be a disapproval. So if you take it literally, you might bark up the wrong tree.

Understanding your partner and your market, requires a panoramic or helicopter view of the whole situation. You need to be conscious of the social and behavioral complexity of the Chinese people.

You also have to recognise the contradictions of the various stakeholders you are dealing with and face a balance among the conflicting issues. Using Confucian ethics and socialist approach on top of embracing the demands of the market forces require any investor in China to have a great deal of wisdom and open observation of the interlocking relationships, webs of opposites and the illogical thinking of the Chinese. Never show the Chinese you are smarter than they are.

Once you are able to harness the way of the Chinese, you can then safely gain some foothold on the dragon's soil. But let me warn you that you have to get your plan B ( a contingency plan) up your sleeves first and expect the unexpected so that you are able to respond in a prepared manner.

This Step 4 is the hardest in that you really need to strike a good balance in dealing with the stakeholders , from partners to government officials and to the people you are going to deal with. The opportunities come with lots of challenges and intriguing situations that test your patience, your lifeskills and your business acumen.

So to become rich in China is not an easy path but it would be a tremendously rewarding path if you can harness the wisdom of the dragon and live like one in China. Then you are ready for the next step into the heart of the dragon.

Happy reading and cheers
Sally Klaus

Ideas on How to Become Rich

Ideas on How to Become Rich - How to do business in China -step 3

2010-01-10T22:05:00.000-08:00

Ideas on How to Become Rich - How to do business in China Step 3

Hi once again I am here again to share the Step 3 of doing business in China. As you gain trust and knowledge of the local people of China, you next have to get the right partner(s).

This step 3 of getting the right partnership is very very important. You cannot go solo in this vast "dragon land" because you might be swallowed up very quickly by the large mouth of the giant dragon. You have to find suitable partners who know the terrain and the people. Choosing the right partner(s) can save you a lot of pain and hardship and give you an advantage in starting up your operations whether they are big or small.

However it is not easy to find partners among the billion people. You need lots of patience, time and money on searching for the right connection and through the right network in order to secure the right partnership which will grow or kill your business venture in China.

A trustworthy and reliable partner helps you to determine your success in China's marketplace. Do not think of short cuts in this strange land of different culture and ethnic groups. Informed and wise decision in getting a good partnership requires money invested but will give you good monetary returns when the time comes for reaping profits and gain.

So step 3 is a very simple but slow step. In securing a trustworthy partner to gain a foothold in this market, you need to go slow. Speed is not the essence in doing business in China. Patience is. Once you have found a reliable partner for your business development here, you are surely able to make reasonable returns and money in a shorter time than trying to take a "short route of dubious means " to success.

Devote sufficient time and money to do this step 3 well and you will be able to get your venture going much more steadily and surely than any other way.

In life, partnership is essential for our wellbeing, so is the same for business wellbeing. My advice is that finding a good partner is an essential step - it is a quantum leap to the inner circle of friends once you get a partner with lots of connection and business acumen.

So go and get a good partner, whether for business or for life. It is true that it takes two to clap, two to tango and two to succeed. So, what are you waiting for?

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - How to do business in China -step 2

2010-01-10T21:02:00.000-08:00

Ideas on How to Become Rich - How to do business in China

Hi good afternoon to all of you.
Earlier I mentioned that there is vast opportunities to do business in China and become rich. Yes, there are many people from all over the world who struck "gold" in China. My brother has been in China for several years and has accumulated enough wealth and money to last him and his family a few generations of spending power.

The first step as mentioned was to have knowledge of the way of the Chinese. Knowledge is vital in order to enter into this country of great differences in wealth, status and dialects.

The next step is to gain trust of the local Chinese. It is a fact that China is not a monolithic market. Do not be mistaken that it has a one-billion customers waiting to buy your products. China is made up of a diverse range of races and purchasing power. Different regions within China has different rate of progress and affluence. Difference provinces have different political and economic structure. It in fact has more than 100 cities of varying size and population with different levels of income and purchasing power to buy your products. Also there are lots of low-cost labourers out there for you to tap if you need workers of all sorts.

So how do you tackle such a fragmented customer base with diverse geographical and economic variation? The answer is in the strategy you have to use for each different region. Your target group must be able to purchase whatever you want to sell. Planning is thus vital for survival of business in China. Which segment of the market you wish to target, which kind of products are suitable for them? Understanding that China is not homogeneous is the key to success and wealth . Local knowledge is the key that will lead you to income and prosperity in China.

The second step is that you need to gain the trust of the local people by
understanding the needs of the local regional market. Studying the various needs of the people in different cities and how you can cater to their needs will surely bring you great potential in wealth and income.

Just remember China is not a market of 1 billion people, it is a series of small markets of 100 million or smaller segment. Once you establish the fact that you have to deal at local level, you will succeed in your planning towards the greater good. Inner regions have less competition and their local governments are more accommodating and co-operative in your efforts to win customers.

So go into the heart of China, and learn from the local people what they want and you will become rich by catering to their needs. It may not be too difficult once you get their trust in you.

The moment you gain the trust of the local people, you are able to gain an entry into their hearts and thus making business development easier for you. Like the Indians, put your ear to the ground when you go to China and listen to the voices from their hearts and you will become rich and powerful in no time at all..

Cheers and have a nice day
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - How to do business in China

2010-01-10T15:54:00.000-08:00

Ideas on How to Become Rich

Hi good morning , today I want to discuss about the potential of doing business in China, as I have mentioned earlier that there are lots of business opportunities in this "awakening giant dragon". China's rise to today's economic power is due to their awareness that they have wasted so much time in the past and are trying to make up for lost time.

I have worked and lived in China for some time and am able to share some insights into the business environment there which can give you lots of opportunities to become very very rich .

There are altogether 10 steps which I will share with you .
The first step is knowledge is power. Ignorance is not bliss if you want to invest or do business in China. Chinese people are well read and are very hardy people, having gone through so many revolutions and changes of circumstances over 5000 years of history. Many Westerners are not familiar with the ways of Chinese and may think that the common man in the street is just naive and simple. Quite the contrary. In fact, the Chinese are able to gauge the visitors very well by the way they behave in China.

So knowing the Chinese way and their culture and mentality is the first step to riches in China. Read about China's history, culture, political history and other interesting things about this vast populous region. In fact China itself has 5 time zones - due to different longitudes and differences in dialects and religions.

One famous Chinese philosopher mentioned that you have to study China's past in order to deal with her future effectively. Macdonalds went into China and followed the Chinese culture closely , thus clinching a vast market share of its fast food market. The immense queues of customers everyday at the various outlets of Macdonalds testify to the fact that the leaders of Macdonalds are able to understand the way of the dragon. Similarly Coke and other Western organisations and corporations have studied the way of the Chinese before plunging in. As individuals and small enterprises, we too can make an impact if you study the way of the people closely and understand them. The Chinese want face very much so if you can give them face in your dealing with them , you have won them to your side and you will be rich in no time at all.

So the first step to the wealth of this vast market is knowledge of the past of the Chinese, analyse their ways and deal with them accordingly. Give them plenty of face and time to accept you and you are on the way to riches and success in China.

I will share step two and the rest shortly after...

Cheers and have a nice day
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich- learning from the best in business and entrepreneurship - Part IV -China

2010-01-06T19:03:00.000-08:00

Ideas on How to Become Rich

Hi good morning to you

In my last few blogs, I shared with you all the rich and powerful tycoons and magnates in the United States, today, I will shed insights about the richest people in China, the fastest growing economy since 2005 .

China has always been a "laggard" in terms of economic and social developments. This is due to its great population of over 1.3 billion people. Yet during the last 5 years while the world was struggling with unemployment and economic woes, China has shot up to become one of the most powerful countries in the world.

Why is this sleeping giant now so energetic and revitalised? The answer is very simple. Since the opening of China's doors to the world in the 1970s by the late Deng Xiaoping, former premier and a social reformist, the general population have been very unhappy with their communal way of living and want to break out of the traditional mould of being an agricultural state. Also investors and businesses from all over the world can come into China freely with the opening up of their doors. Multi-national companies such as Macdonalds and Coca Cola have gone into this great "dragon land" . Also the young people of this country are very restless and hungry for money, knowledge and power.

In fact the top 50 richest people in China, a vast majority are below 50 years old. What does this mean? It means that spirit of entrepreneurship and business awakening have ignited their desires to grow big and strong. The three fastest growing industries in China are telecommunications - internet and mobile phones , electronics and of course their homegrown agricultural produce .

Names like William Ding Lei and Wong Kwong Yu (in their thirties), Zhu Mengyi and Robin Li (in their forties) command huge wealth and riches equivalent to some of the richest people in the United States. This is because China's per capita income is very low so if you are worth US$100 million in China, you are actually as rich as the American counterpart who is worth US500 million . Cost of living is very low in China .

What are the secrets to these people's success? Basically there are 3 reasons:

a) HUNGER FOR MONEY AND POWER:
Like Steve Job mentioned in his shareholders' meeting sometime ago, you have to be very hungry for money , for power and for knowledge. The hunger is fuelled by opportunities around you. China's miraculous growth was due to these hungry business leaders and entrepreneurs who want to make it big in life and make it big in the world.

b) ABILITY TO DO SOMETHING PERCEIVED TO BE OF VALUE FOR OTHERS

Everyone of us has a certain perception of things around us. So if you have the ability to do something perceived to be of some value for others, you will succeed and become rich and powerful especially in China, where the market base is so broad and extensive (1.3 billion potential customers). That is why those who came up with telecommunications and internet services have made it so rich that they are laughing their ways to their banks everyday. In fact while the banking systems in other countries are collapsing like dominos, Chinese banks are busily counting money and ascertaining wealth of its population at large.

c) NEVER GIVE UP MENTALITY AND HARDWORK
The third factor for China's economic success and wealth is the hardwork and philosophy of "Never Give Up" . This is because there is a famous Chinese saying which means failure is the mother of success. You have to fail in order to succeed well.

The path to entrepreneurship is never easy. It NEEDS lots of determination and guts . I admire these rich young Chinese who have made it to the list of world's richest people. I myself have been an entrepreneur for years; the road is winding and tough. Yes, of course I am satisfied with my success although I am not one of the richest people in the world. Still I am a millionaire among the top 66000 richest in my country.

Recently when I went to China for a visit, I saw over the television news. some young people in major cities like Shanghai and Beijing when interviewed by news reporters told the viewers that life is basically the same in 2009. There was not much impact from the economic crisis(which the major countries are suffering from ) in most Chinese cities. Business went on as usual. In 2009, China even tried to bail out other large economies like the United States.

I believe that with Chinese people wanting to be rich and powerful, coupled with their conducive social and political environment for entrepreneurship and business, the opportunities in China over the next few years would be tremendous not only for huge multi-nationals (MNCs) but individuals like you and me.

So if you want to be rich and powerful and live in a country with very low cost of living, China is the way to go....
Cheers and have a happy day:)

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich- learning from the best in business and entrepreneurship - Part III

2010-01-04T15:53:00.001-08:00

Ideas on How to Become Rich

Hi, once again this is the Part III of the learning from the best in business and entrepreneurship. This part will be focussing on other areas of business such as entertainment and media.

As you all know, no one can live by without some form of entertainment to relax or to pep us up. Entertainment is big business , many singers and artistes have become "filthy" rich just entertaining people. The media industry today is a multi-billion business. Sucessful business leaders in this field include Sir Richard Branson and Ted Turner. These two great and wealthy business leaders are the ones who make it big and rich in the entertainment and media business.

The "Virgin" king Sir Richard Branson is a maverick and there are lots of things we can learn from this unorthodox businessman. He is not like any other "traditional" rich magnate.

What are the things we can learn from the "apex" leader in entertainment and media industry?

a) To be successful, you need not follow what others do. Do things differently and do different things from the others so that you can become a leader in your field. It is not necessary to follow the beaten tracks or old paths. You can blaze your own trail of new directions and new paths. In fact, pioneering a new path or new trail requires more guts, more planning and more fun.

b) His philosophy is that you can have fun while working hard. Many business people are so serious and unfriendly inspite of the success. I see many rich people with frowns. They did not equate work with humour or fun. Actually Sir Richard Branson injects fun and humour into his work which he shares with the rest of us. "All work and no play make Jack a dull boy". See, you can have the cake and eat it.

c) Another thing you can learn from this rich and powerful media/entertainment tycoon is that you have to love what you do. This will give you a sense of joy when you enjoy the fruits of your labour. To be able to enjoy the fruits of your labour is an essential key to personal growth and wealth too. Many people work hard but they do not know how to enjoy the fruits of their labour. They become slaves to their endeavours. Sir Branson bears testimony to the fact that you can enjoy the fruits of your labour while earning big bucks at the same time.

This rich magnate Sir Branson is able to combine work and leisure and thus lead a very balanced life. I would like to be like him, having work and fun at the same time. As Confucius (a famous Chinese philosopher) said long ago, " if you like the work you are doing, you are not working at all, you are enjoying life..."

So let us do something we enjoy and reap the harvest of rich returns at the end of the day. There is no reason to become rich but unhappy. Like Sir Richard Branson, we can both balance our lives with things we enjoy and work with things we like to do. Sounds fun eh? Yes, go for it...

Cheers and happy reading
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - Learning from the best in business and entrepreneurship - Part II

2010-01-04T14:56:00.000-08:00

Ideas on How to Become Rich

Hi I am sharing with you about learning the best in business and entrepreneurship - Part II ( Information Technology and Communications)

The world is now in the knowledge era and information age . Knowledge is power and information is expensive because ignorance is the price you pay for poverty and lack.

Let me share with you how people like Bill Gates, Steve Jobs and Michael Dell use information technology and communication devices to become very very rich and powerful. They are among the richest people in the world today and are very powerful because they call the shots in your daily lives without you knowing it.

Bill Gates is a good example of how one person can rise to the status of being the richest man for so many years, He is very influential and is recognised by people from Africa to China to India and almost all parts of the world. He is a household brand because every household has a computer with Microsoft office installed.

What can we learn from this rich tycoon? There are a few things we can learn from him :

Firstly, formal education is not a means to an end. You do not have to have an university degree or academic qualification if you can be inventive and innovative. This simply means that if you have an idea within your head about some kind of product which will be useful to other people, you can become rich. Bill Gates helped to make computer program and software accessible to people all over the world so that it would enable them to do things better and faster.

Secondly, to be rich and successful , you need to think ahead of others. Laggards who follow behind others cannot become rich and powerful. You have to be among the first in doing anything, Nobody remembers the second runner, the second beauty contestant or the second student in class. Everyone remembers the first person or the champion. So, strive to do your best and be the best even in simple task like cutting vegetables or slicing bread. Do a great job out of it, like what people say, "go break a leg".

Also another vital lesson we can learn from Bill Gates is that you have to get good partners in your endeavour so that this team work can enable you to have a headstart in your business or entrepreneurship. Bill Gates have partners such as Paul Allen who is also among the richest people in the world today. Steve Jobs who became successful in Apple Computer was also a teamworker with other partners in the same area of information technology.

The last valuable lesson we can learn from Bill Gates and the other innovators in the field of technology and communication is that we must satisfy other people's needs and wants. It is through others that we are able to grow our wealth, riches and power. He and his team mates have continuously look for ways to enable people to realise their dreams and to realise their full potential - and that is why Bill Gates can ride on his success year after year -

I myself learnt several things from this rich and influential man. I learnt that life is a series of small successes and continuous efforts to improve daily so that you can enhance your wealth, you can enhance others as well. The other thing I learnt from this ambitious and great business leader is that to become rich, you have to protect what is yours. So your intellectual property must be protected by patents and copyrights because there are many people out there who are lazy and merely want to steal from others without putting in real efforts and hard work.

Finally, to become rich and powerful like Bill Gates, Steve Jobs and other tycoons in the IT arena, you have to keep thinking because the brain is a very powerful organ in our body. Think well and who knows, you may be the next inventor of the century!

Cheers and have a nice day
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - Learning from the best in business and entrepreneurship - Part I

2010-01-04T14:30:00.000-08:00

Ideas on How to Become Rich

Hi good morning
As promised earlier, I would like to share the insights of the rich and powerful people with you so that you can learn from the best in business and entrepreneurship - Part I (real estate investment)

I will start with how to become rich by investing in real estate. The rich business leaders who managed to use this area of enhancing their wealth include tycoons like Donald Trump. I will share some insights about this "no-nonsense" man who believes that there is no beating about the bush if you want to succeed.

Yes, when you are decisive and determined to do something, you have to go headlong and do it. Do not beat round the bush and become wimpy. Donald Trump became successful when he started to invest in real estate because land is a scarce resource and it is only when you are able to buy the right plot of real estate or land(natural resource) that you will make it big. In fact his father commented that he was able to have the "Midas touch" - meaning everything he touches turns to gold like the fairy tale story of King Midas.

Well, he acquired land and properties in growth areas in Manhattan and city areas and then went on to build hotels and magnificent skyscrapers.
His shrewd acquisition of good properties gave Donald Trump two very important aspects of success.

The first aspect was the prestige because those areas he purchased are in very prestiguous areas and the second aspect of his success and riches came from his smart use of branding technique. He was able to use Trump brand very well because the BIG "T" was prominent and denoted power and wealth.

What we can learn from this successful, rich and powerful tycoon,Donald Trump are:
a) you need to be gutsy and decisive in making important decisions of your life;

b) you need to be alert to opportunities around you and jump into the right area at the right time; any delays in property investment can mean great loss. So to ensure good returns in real estate investment, you must be able to buy at the right time the places which can command premium. This also applies to other kinds of investment where timing and locations are vital issues for acquiring wealth and riches.

c) you must have passion in whatever you do. Without passion and enthusiasm in your pursuits, you are only a "work-slave" and not a leader.
To be a leader in business or in entrepreneurial efforts, you have to have lots of passion and love for what you are doing. This will ensure success and riches at the end of the day.

So, I believe we can learn a lot from this rich and powerful man, Donald Trump who makes the branding of Trump look so simple. It is the clear directional pursuit of wealth with passion and decisiveness that push this man to heights of wealth and status. He is every woman's dream man because he has "everything" - looks, wealth, power, status and prestige. Even the financial crisis of 2009 did not affect him as much as all other Americans!

In conclusion, real estate investment is an excellent form of using money wisely. As you know, land and natural resources are very limited in supply in this world. Buy the right real estate in the good locations (not about how cheap the acquisition but how well you invest ) will give you the monetary eturns you are looking for in future.

Be wise, be timely and invest in good real estate for future wealth enhancement of your life.

Cheers and happy reading
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - Following the steps of great successful examples

2009-12-31T22:09:00.000-08:00

Ideas on How to Become Rich

Hi from today onwards, I am going to share with you steps of following great successful business leaders and entrepreneurs so that all of us need not re-invent the wheels when they are already there.

There are thousands of billionaires and thousands of millionaires who are out there , waiting to be our mentors, waiting to impart their knowledge and expertise to us. Why take the long route to success and riches when you can take a leap-frog approach to becoming rich in a shorter time.

Time is money. So why waste years learning the rope when you can shorten this by learning from the best by tapping on their brains and the ways they do things.

Successful and rich business people such as Donald Trump even share his secrets to success on national TV with reality shows such as The Apprentice; Martha Stewart shares her culinary and household tips which shows us the other face of a shrewd business brain.

Before I jump into rolling out the secrets and tricks of becoming rich quickly, I would like to first of all, propose to all of you that a systematic approach to acquiring riches and power is secondary to being a passionate and enthusiastic person who succeeds with lots of money and power. Without the fire of wanting to succeed at all costs, even the best teachers will lead us no where.

So, first things first. Learn the truth about yourself. Learn the innermost desire of yourself and how best you want your life to be before copying what others do for a living. In this way, the learning curve is shortened and the fulfillment of hope is higher.

The first person I want all of you to learn from is Donald Trump. That man has guts, gumption and passsion to move things in this direction. He has enough fire power to ignite the whole army. He has charisma, discipline and hardwork which are vital resources to be armed with.

Not all of us has charisma, discipline nor hardwork in our blood. But we can still learn some useful tips from this great tycoon. The basic belief is that he trusts himself and trusts himself to do the best job ever. Such confidence and passion greatly push him forward to thrive in a competitive business environment.

The next strategy which Donald Trump does is that he studies the market situation and looks for trends and areas of opportunities where he could take advantage of. His business acumen and speedy decision are movers for his success. Some people have business acumen but lack guts and decisiveness. Trump has both . This has helped him even during the 2009 financial crisis. He is able to move with the times. He is able to use talents in his organisation and he is able to learn from others who are more successful than he is.

So from learning about the strengths of Donald Trump and our own strengths, we are able to rethink of new strategies for our own niche market, whichever it is. Creating his own identity without blindly followig others Donald Trump's trump card of success and riches.

So why learn things the hard way, when you can observe the success story of people like Donald Trump, Murdock, Bill Gates and Richard Branson whose life stories can help you to quantum leap your learning process of becoming rich and successful.

I will give you further tips on Donald Trump in the next blog . Thank you for reading and cheers

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - how to build a business like a building that can be strong and lasting

2009-12-21T15:06:00.000-08:00

Ideas on How to Become Rich

Hi good day to all of you. To become rich, we cannot be workers getting mere salary and little packages of perks such as medical leave, holiday trips etc., we must build a business that can last and can build up wealth and capital for the long haul.

Yes, how to build a business that lasts? First of all, the concept of starting a business is like building a new house. This means that you have to think of that house in mind first; what kind of appearance, what kind of structure and what kind of style you are going to design for yourself so that you can be comfortable and feel great. The foundation is very fundamental to any house so is any kind of business. Many people do not have strong foundation ; they are very impatient, restless and thrusting so much so that they cannot succeed in the long run. Business life is like running the marathon . You have to have a good strong (physique) foundation before you can start running. Similarly before you get into business, you must gear yourself with a strong foundation like a brick house solid on a great foundation of rocks.

Although there are many impatient and restless entrepreneurs who succeeded for example, Richard Branson, he is one of those who already had visions long before he jumped into business. Generally businesses are not grown the "Virgin" way. You can see that very successful and rich magnates or tycoons are those that build a strong business base and then continue to sustain with proper customer servicing and innovative new products to continue to keep their customers.

First of all, you have to build up a strong customer base. You have to set your perimeter and your plot so that you can grow the right customers, the right kind of products and the right kind of tactical plans and strategies to use. The land on which your house is to be built must be a good piece of land - meaning a good location if you want to start a brick-and-mortar business instead of an e-commerce business.

The right customers must come from your list of prospects, friends, networking groups, neighbours, schoolmates and all possible leads you have in your life-time if you want to really start a business with a customer base. Then you run the list and create a database of the profile of your potential customers among the people in that list. Once you have a strong database to work with, you can decide to go niche marketing or segmentation marketing according to their profile such as income, status, age group etc..

Next, you have to create the right kind of products or services which you think you are good at. Like most business people, it is their love for some kind of product, some kind of hobby that enables them to become rich and powerful in due course. Bill Gates with a passion for computer technology; Richard Branson with his interest in entertainment and music; Warren Buffett with his passion in the stock market and others who develop their passions into money-making machines and businesses that last a life time for them. Today, all of them are very rich and famous.

So, like Stephen Covey who said, begin with the end in mind, you must first think of the concept of a beautiful solid ( business) house with beautiful "plants and flowers" by getting the right kind of customers who love your stuff and will support your venture.. then you are on the road to success.

The starting part of any journey is never easy. However it is not that difficult too. It is planning properly first. Even for a simple day trip or outing, you must get all your stuff ready in a backpack, so is business.

Get the things you need before you start your venture into the world of riches and wealth and create value for yourself and others. The world is your oyster. Destiny is in your own hands because we are architects of our future. Start now...

Good luck to your building of a new business. Passion is vital to ignite the fire for the first leg of the venture. A house or business may start with strong foundation (customers, skills and passion) and it is worth the effort once the building materialise into a magnificent outstanding monument of great size.. This is your vision and your dream.

Money is within your reach if you can just put your vision, passion into action by building a strong foundation in whatever you are doing well. This will give you a headstart into a life of money and riches when the time comes.

Have a wonderful time creating the "building" (business ) of your dream and also a bountiful life of riches and luxury to enjoy when the business succeeds.

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - Ownership Responsibility and acquisition

2009-12-18T19:17:00.000-08:00

Ideas on How to Become Rich

Hi greetings once again. Today I would like to share tips on ideas on how to become rich through one very basic principle of success. The idea of ownership responsibility and acquisition.

To be rich can be done in many ways. The"lucky" way is through inheritance and proper management of family wealth. This is only available to less than 10% of the world's population . This lucky lot of people are born rich so that the idea of how to become rich is not important to them. However for all of us out there, about 80 to 90% of us in the world, becoming rich needs a lot of preparation, lots of hardwork and sweat as well as planning how to become owner to the wealth that is to come.

First of all, there are many ways to acquire ownership. You can work for it, purchase it or negotiate for it or even grab the opportunity when the time comes.

To become an owner of great wealth, you must have the mindset of being ready anytime, anywhere to spot the trend towards acquiring wealth and material gains. We have to do all the acquisition in a lawful and proper manner so that the riches can stay with us longer and we can also be proud of our achievements if we gain wealth in a decent , consistent , hardworking and smart way.

Ownership is the reward for creativity and innovation as well as business acumen . This great responsibility is to be given to people who are able to create value for others so that we can become rich in a value- creation kind of resource enhancement . Professional writers, artists, inventors, retailers and dealers have all awarded their ownership rights because they have the marketable ability or talents to enable others to grow with them. In so doing, they are creating wealth for themselves and for others.

Many people think that inventing or drawing or writing is difficult. Actually it depends on many personal factors.

The most important one is to have the self belief in that product or service. Writers like Rowling did not become rich overnight, it is through lots of hardwork and continuous writing and improvement that her Harry Porter books become a household name. Her product is the effort of responsible ownership of perseverance and continuous innovation of the story and her belief in a profitable readers' market. That is why today she is one of the richest women in Britain. Other writers in China and Hong Kong who write kungfu books have also commanded great riches and live in luxury in the Far East.

Also you can paint your way to wealth and riches if you can use the right colour, the right technique and also your product must be able to command a market for buyers to buy your paintings. Many Western and Chinese painters have become rich through this means too.

Other personal ownership of talents can be in the form of personal expertise in analysing management decisions, stock market prices, the trends of consumer behaviour etc. This kind of talent and skills have helped countless people to become rich in the United States such as Michael Porter, Waterman and those who are management gurus. They own a name for themselves and enjoy riches and wealth as a result of their ownership responsibility and acquisition of skills to further enhance their status and wealth.

So let me assure you that getting that ownership status and responsibility lies with you. To be able to have that ownership acquisition is not difficult and can be done in ways that you yourself already know but may not have started to do yet. What are your best assets that you can convert to be your own brand name? Even Anthony Robbins did not begin rich, he became rich through learning and finding his niche and skill ownership which is now history. He is a good example for us to follow in the step to become rich and famous.

Before I end, I would like to mention that playing sports and games can also help you to become rich because in the field of basketball, football (soccer) or even golf, many people David Beckham, Michael Jordan, have become rich and powerful through ownership acquisition of skills, responsibility and proper management of that talent.

Don't hesitate. Think about the skills which you have ownership and turn your skills into a brand if you keep your eyes and ears open to opportunity and willingness to give your best shot!

Have a right attitude and your aptitude will do wonders. Keep reading and have a nice day

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - finding the ideal customers

2009-12-09T02:08:00.001-08:00

Ideas on How to Become Rich

Hi , today I will be discussing the search for ideal customers in order to become rich and powerful.

First of all, we have to search for the ideal customers in order to serve them well and grant them satisfaction so that they in turn give us the profits we need in order to become rich.

You have to create a clear vision or picture of your ideal customers by deciding who that customer is. Who are you looking for?

Let me give you some examples:
If you are running a child care centre, your ideal customers would be mothers or mothers-to-be. These mothers have to be employed and have salary of a certain level for example, above $5000 per month (high annual income of about $60000 or more). They would be having at least one or two children or intending to have children.

If you are doing a fine dining business, then your ideal customers would be professionals or executives in a high income bracket and earning lots of money and people who would have money and time to spare on evenings for relaxation and good food. Your target would be successful professionals between ages 30 to 50.

If you are thinking of service industry such as hair dressing or grooming , then your target would be successful and wealthy women between ages 35 to 5o who have the money and the time to look good etc..

This is the way to think of searching for ideal customers and you have to narrow your market segmentation to a good target group, so as to achieve maximum returns and minimum wastage of resources.

How you become rich in this search would be to find the right customers, right market segment and the right product to serve them and give them satisfaction which in turn becomes your profit and money to make you rich.

Thanks for reading and hope you start thinking of the ideal customers.
Sally Klaus

Ideas on How to Become Rich

Ideas on How to Become Rich - Focus on the Revenue Plan to be Rich and Successful

2009-12-06T15:50:00.000-08:00

Ideas on How to Become Rich

Good morning I am going to share the focus on Revenue Plan to be rich and successful.

In any movie production we always see the camera man and the director shouting ready, focus and action. First the lights must come on before the camera can shoot the scenes. So similarly in the movie of our own rich and successful journey, we need to switch on the lights so that we are able to focus on the revenue plan, which helps us to reach our goals of being rich and powerful.

The light must shine on the projects or ideas we have been thinking about. Goals of becoming millionaires and rich tycoons are not difficult to achieve if only you have the lights shone on the right directions and focus on the right methods of achieving the goals - the gold pot at the end of the rainbow.

To shine the light properly you need a revenue plan - what is this?
This is simply a detailed description of what business of being rich and successful should be. It is easy to write this revenue plan.

If you want to have a business selling things, then all you have to do is to list the things you want to sell and the prices you want to charge for them. Look around what others are doing and maybe just provide similar prices for the same items. In order to make the prices attractive, you can throw in cheap gifts which entice people to buy. Human beings, by nature, love gifts and presents - this is because of the material tangible things which make them think they have arrived at material comfort and wealthy living. So, if you sell something and throw in some gift of sorts, plus a reasonable price you charge, you get people who will buy your stuff.

Then you study the period you want to sell these stuff and then get results are regular intervals such as monthly or quarterly if you are a retailer. If you are not a retailer or producer but a service provider, then you still have to get the revenue plan for the services you charge and then , adjust your prices according to what the people can pay for your services.

Once your revenue plan is up, you now have to plan for the most appropriate ways of getting your customers to come and buy your goods or services. YOu identify your ideal customers, then you generate prospects and leads . After that you convert your prospects into customers by interacting with them either through publicity promotion efforts or through networking efforts.

Networking with prospective clients and friends are very important for any business to be successful . Once you are able to get the first few people to believe in your products and services, you can then strike it rich and this is how your business will grow.

Always think of the big picture with the end in mind. How much do you want to make, how rich you want to be and how fast you want to reach the height of your wealth and success?

The 3 questions which you have to think about would be:
a) Where do you need to start? This means what kind of business you want to be in; what is your desired area of business?
b) What will get you there? This involves your revenue plan and your strategies of reaching out to customers and friends. Let them know what you are dealing in or what business you want to be in?
c) The road map or directions you want to move towards riches and wealth.

Like Napoleon Hill, "think and grow rich" is not difficult, it is the plan and the thinking big picture that will enable you to visualise your pot of gold at the end of the rainbow. Go for the pot of gold now! Do not wait because time is money and the faster you get on your feet to think big, the faster your revenue plan is drawn up, the faster you can get to the final level of becoming rich and powerful.

If Richard Branson, Donald Trump and Bill Gates can do it, why not you? I have achieved my millions years ago, and I am only a woman, so can you! I am sure you can too!

Thank you for reading and have a nice day ahead.
Sally Klaus

Ideas on How to Become Rich

Ideas on How to Become Rich - Finding wealth DNA inside you

2009-12-04T21:06:00.000-08:00

Ideas on How to Become Rich

Hi I would like to discuss the idea of finding the wealth DNA inside you.
Finding your strengths or your unique strengths and talents (UST) is like searching for the wealth DNA inside you.

Often times we do not really search our hearts and souls for the real reason why we are not able to be powerfully rich and successful. This is because many of you do not spend time searching for the wealth DNA inside you or what I refer to as the unique strengths and talents (UST), which is similar to the marketing concept of USP (Unique selling points) so we have our very own unique strengths which we should tap on to become rich and powerful.

People like Jack Ma, CEO of Alibaba from China are not even handsome or tall. They are hideous to the point of being labelled ugly. Yet their physical appearance did not deter them from seeking their personal DNA or UST.

One of the things which the rich and powerful people in China mentioned very often is the strength that is within you must be harnessed so that you can face all odds. Now, China has thousands and thousands of millionaires and billionaires. They live very luxurious lives and can compare with the Western tycoons such as Bill Gates or Donald Trump.

They are not tall nor handsome nor rich to begin with. They are mere ordinary human beings who found the right wealth DNA or their inner strength through UST utilisation. They dare to use their talents such as singing if you have, dancing if you have, working 18 hours a day if you must and a persistent spirit of NEVER, NEVER , NEVER GIVE UP (words taken from Winston Churchill during the Second World War when he was the Premier of England) .

I too become rich in believing in my own strength of using hardwork and perseverance. Dicipline yourself to search for what you are looking for, and you will sure to succeed. It is digging for diamonds or searching for oil in the deep. The harder you dig , the greater will be your find. However many people give up halfway when they are about to succeed and this is very sad. Their loss is unaccountable.

I want to end with a story which touched my heart very much. There was once a man who bought a piece of land. This land was said to have oil beneath it. The man started by digging and drilling. This went on for months and he still did not find any oil or mineral underneath the piece of land he bought.

So after so many months of effort, money and time, he decided to give up and sold the land cheaply to a friend, who felt sorry for him. So when the friend bought over, he continued digging since the place was full of holes and craters as a result of the digging.

After a short while, less than a month later, he found oil and other minerals underneath. It took him by surprise because if only his friend had not given up, he would have the wealth under his land!

So this story is told to remind us that we must never give up our belief in ourselves. We must persevere and continue to search for the right wealth DNA or UST and work hard at digging and drilling in order to achieve our dreams.

In this way we can become rich and powerful in no time at all. I hope you like the story I shared. It gives me hope each time I want to give up on someone or on something dear.

Keep smiling and searching for your UST, who knows? The day is coming soon when you strike oil or wealth by using your UST to the fullest.

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - repackaging of items into attractive desirable objects

2009-11-30T06:28:00.000-08:00

Ideas on How to Become Rich

Recently I stumbled into a "get-rich" project without knowing it. Actually I was tryng to raise funds for some needy children in a neighbouring country. By asking 100 people to merely contribute one pack of pencils - consisting of 12 pencils, the cheapest kind available, I was able to get more than 100 packs of pencils. I repackaged the given packs of pencils into over 250 smaller packs of pencils , which were decorated neatly with coloured ribbons.

I managed to sell these pencils for a lot of money through an auction system by getting people to bid for the pencils. I become very rich at the end of one week of selling the repackaged pencils. People were willing to pay triple the amount just to get hold of the pencils because they found the item to be cute and presentable.

From free gifts of 100 packs of cheap pencils which cost the donors very little money, the kind gifts were transformed into thousands of dollars of repacked items.In this way, the needy people in our community get the money they need and enable them to have better things to live by. A rich joy was created and multiplied via creative thinking and simple act of transformation.

From this project, I can assure you that a simple item, repackaged and redesigned can become an expensive retailing item by sheer innovative way of selling. You can become rich by using your innovation and creativity. Just like a piece of fried chicken at the roadside kiosk sells only a few dollars but a piece of chicken in a restaurant served on a bed of green vegetables and some colourful garnish becomes a high class and high expense item on the menu. It even burns a hole in your pocket.

This "kindness" gifts became my guiding idea for becoming rich because I use this concept of repacking and redecorating to sell my old items via e-bay as well as during garage sale. Many people are attracted to interesting items even though they may not be of high value. As long as people are willing to pay a price which is right for you, you can become rich just repackaging items into attractive desirable objects so that you can resell them at a much higher price, thus earning a profit.

Many retailers fail to get customers' attention because they are not innovative and creative enough. I think that creativity and enhanced value of your inventory or things can make you rich without costing you lots of expenditure and time.

I hope all of you can think hard what are the things you can do to transform unattractive objects into objects of desire and value , thus increasing your money holdings. I believe this project inspired me , it can also inspired you to become rich in no time at all.

Think hard and look around you for that "get-rich" thought. I am sure you can do it if you try hard enough.

Thank you for reading and good luck in your project of becoming rich.
Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - getting the right mentors for acquiring wealth

2009-11-29T06:19:00.000-08:00

Ideas on How to Become Rich

Hi today I would like to share with you about using mentors to become wealthy and rich. I learned from young that our lives are too short to commit all the mistakes by ourselves and learning through all those failures that happened in our lives. So it is more effective to use mentors and learn how to avoid certain pitfalls as well as to master certain techniques which are already tried by these rich mentors.

The first thing in searching for mentorship is to read books on all the mentors in the field you are interested to develop in. For example, if you are keen in becoming a chef or baker, then read books on famous chefs and bakers; how they acquire success, fame and riches in this field . Check out what ingredients they use to make the extra nice stuff which differentiates them from others and other interesting information about them.

After reading about your mentors or successfully rich people and their journey towards riches and success, you then make a decision as to how to contact them or meet them in person. Watch out for their schedules via reports in major tabloids and television appearances etc.. about their lives and what are their routine etc.. It is possible to write to them first if they have contact addresses or email addresses. If they respond to you, then the next step is to try to meet them face to face.

Powerful rich tycoons, moguls or even magnate are ordinary people too. They have ordinary lives too if you observe their lifestyles. So, you can actually make contact with them or attend functions in which they may attend so that you can come to a close-up look at them. Observe their behaviour, their speech and their way of handing crisis or business . In this way, you learned via observation and personal visual judgement.

The next thing you could do is to emulate or imitate these rich people by attending networking events to get to know more people and get contacts to start your successful business to becoming rich. The people you meet at networking sessions can become your customers in due course . In doing this regularly, you will then have a reportoire of contacts and people to become your possible customers and you can then work on how to use them for your journey to riches and wealth.This is because
it is much easier to sell to people you know than people who are strangers. The cost of doing business with familiar people is cheaper han with total strangers.

So learning about mentors , better still, learning with mentors would be a great start to a rich and powerful journey if you are a rookie in your field. Whatever you do, it is definitely better to learn from others and improve on them , than to reinvent the wheel and start from scratch o gaining riches and clients. Learning well enhances personal growth and wealth.

Think about the mentors you want to get now and who knows, you may land one face to face - free mentoring when the chance comes along possibly in the future. Always believe that you can be rich if you make the effort to jump into whatever opportunities that come your way..

Best of luck in your search for rich and successful mentors ...
Thank you for reading and cheers

Sally Klaus
Ideas on How to Become Rich

Ideas on How to Become Rich - turning trash into cash

2009-11-28T05:42:00.000-08:00

CAN TRASH BE TURNED INTO CASH? Sure fire way to share with you...

I am sharing today on how to turn trash and rubbish into cash so that you can enrich yourself and become rich. Many rag and bone collectors or even rubbish collectors have become large companies which convert rubbish and trash into multi-million dollar business.

First of all, look around your house to see any item worth - reusing or recycling for cash. I always buy special items during bazaar or warehouse sales and then later, repackaging them before reselling them via ebay or even selling them at a higher price.

The other tip is that you can start a recycling job of separating what is still valuable and what is not. By doing this as a habit daily or weekly, you can then decide what sort of rubbish or trash to be used meaningfully next time. A heap of useless papers can be changed and transformed into cards for sale by recycling them in an effective manner - for example , I always use old newspapers and make them into pulp and then flatten them before drawing on them and cutting into little pieces so that they become handmade cards - which can be sold quite well during festive seasons such as Christmas or Valentine's Day etc..

The third way of converting trash into cash is to have a habit of looking out for community items which are cheap or even free , putting them aside and then when the time is right , change them into items which can generate cash and make you rich - at least few dollars richer each time so that with a little here and a little there, you will be rich in no time at all.

I always do the transforming of old chairs into deisgner chairs for example cheap chairs bought from Ikea can be re-decorated into a different kind of chair which can look like designer chair. I tried this technique many times when I need money and manage to sell them away at a much higher price than I bought them. In this way, I have a consistent income derived from this source. This is a good and innovative way to money making.

I am sure if you try to be more observant and convert your trash into cash, you will become rich in a short time . More trash and rubbish then you can transform them into more cash and money to spend .

I am sure these few tips will motivate you into other cash-generating ideas which can make you rich in no time at all.... keep our eyes alert and ears open

cheers and thank you for reading
Sally Klaus

Ideas on How to Become rich

Ideas on How to Become Rich - how to visualise becoming rich and successful

2009-11-27T05:43:00.000-08:00

How to visualise becoming rich and successful.

To enable you to be rich and success , I suggest that you do the same as me. It is very effective because it has made me rich by creating your own vision and mission.

Dream big and desire to be rich and wealthy. It is not a crime to want to be rich and powerful. It helps you to be motivated and gear you towards achieving your dream lifestyle you desire when you can become rich and powerful.

It is not difficult to become rich and powerful if you can apply the right techniques of power visualization and determination in whatever circumstances to desire to be rich and wealthy.

I have used my vision and mission to guide me towards becoming rich when I was in my twenties. Today I not only have my beautiful sprawling dream house worth millions, I also have millions stashed in various financial instruments and savings in the bank.

First step should be creating a realistic vision of your own. This framework will enable you to become rich in no time at all because many successful businessmen and celebrities use this visualization technique and vision to become their guiding goals and directions.

The road to riches and success is not that difficult as many of you would think. I can assure you from my own experience, it is easy . You just need to think rich, feel rich and work towards your goals of becoming rich and powerful.

Questions to ask yourself before setting a vision for your future:
a) Do you want to be rich?
b) How much money would make you feel rich?
c) What directions or actions to take to become rich?
d) How long do you need to become rich and wealthy?
e) Visualize the end products - what your heart desires when you become rich.

Once you have created your framework of becoming rich, you must work on the vision and mission to accomplish this journey towards money, more money and riches for you to enjoy a great lifestyle of living the way you desire .

Richard Branson, Donald Trump and Bill Gates can make it, why not you? Even Anthony Robbins who was once a poor lad has today become one of the richest people in America.

My friend Ron Kaufman who started out as a mere trainer has also acquired tremendous wealth and riches by having the right vision, right mission and the right attitude towards riches and money.

I am sure you can become rich and powerful like Napoleon Hill who wrote the book on similar topic, also shared the same vision of thinking big, thinking of how to become rich as a daily exercise in visualization.

The next time I will share about my vision and how I acquire riches in a sure and steady way

Cheers and good luck in your vision creation of becoming rich…
Sally Klaus

Ideas on How to Become Rich and wealthy...

Ideas on How to Become Rich - greetings from Sally Klaus

2009-11-26T19:59:00.000-08:00

Hi I am Sally Klaus who is going to take over this website and would be sharing with you insights and tips on how to be financially successful and become rich .

I have a Masters in Business and have been practising my entrepreneurship tips with youths and people all over Asia, giving them the tips of how to run a business, how to invest their money wisely and how to become rich by being an armchair investor.

In future posts. I will be giving a series of workshops which I glean and garner from other successful entrepreneurs and businesspeople as well as famous rich persons from all over the world.

Thank you for reading and will be sharing with you shortly.Cheers and have a great day!

ideas on how to become rich

Ideas on how to become rich - Sally Klaus will be taking over from November onwards

2009-11-06T21:33:00.000-08:00

Ideas on how to become rich - Sally Klaus will be taking over from November onwards

Dear readers,

Hello and welcome to Ideas on How to Become Rich. If you're a loyal reader, thanks for reading and do stay here with me. If you're a new reader, don't worry - there will be a business graduate with lots of experience writing on this site soon! With effect from November 2009, Sally Klaus will be taking over the writing of posts and articles here on this site from me as I pursue further education after my Honours economics degree (in the form of a postgrad diploma and masters).

Here is a short write up about Sally Klaus:

Sally is a Business Administration graduate from NUS (the National University of Singapore) and has a MBA (Masters of Business Administration) from Bradford, England, specialising in business, consultancy and action learning. She writes about economics, finance, investment and money mainly in Singapore, consulting various agencies and teaching also at NUS and other schools. Sally was also the contributor to this site for "Financial Management - What the Rich do in a Down Market" (financial education), which was well received by readers.

In her free time, she loves reading, learning, doing charity and voluntary work, suggesting also that Ideas on How to Become Rich aren't just about ideas about making money, but also about having ideas on how to become spiritually rich, wealthy in mind and wealthy in body, and having overall success, not just material wealth and riches.

But of course, she's also an expert in making money in both investment in stocks and investment in local real estate.

Special thanks to Sally Klaus, who will be taking over my money making, investment and finance site, to contribute new and innovative articles on how to become rich!

Thanks for reading, and cheers.

Your faithful writer,
Shawn.

Ideas on how to become rich

Ideas on how to become rich - Financial Management - what the rich do in a down market - SUMMARY

2009-06-22T01:25:00.000-07:00

Ideas on how to become rich -
Financial Management - what the rich do in a down market - SUMMARY

Here is a quick summary of the various ideas on basic financial management:

Don't let your financial or retirement or money plan be an accident
Everyone needs an advisor - and there are different kinds of advisors
Build your financial house based upon your financial personality
Combine your dreams into a plan
Have the two major strategies to win the battle for investment survival
Know where you are going
Mix and don't match
Do not be your own enemy - mind your mind, and thereby mind yourself
The jockey matters as much as the horse
Ride out financial storms
Build your house on rocks
Use numbers to calm your mind and calm yourself
Don't smother your own personal/ financial dreams
Take the road less travelled
Remember to ask and answer the right financial questions *Who are you?*
Determine correctly your investment outlook and selection *What works for you?*

You can also access easily the articles on financial management by Sally Klaus below:

Financial management part 1
Financial management part 2
Financial management part 3
Financial management part 4
Financial management part 5
Financial management part 6
Financial management part 7

Special thanks to Sally Klaus for her kind and invaluable contributions on Financial Management: What the Rich Do in a Down Market.

More investment knowledge and important concepts, finance or investment articles, data, and other finance/ investment-related ideas to come here in future posts... thanks for staying here with us. Thanks for reading!

Ideas on how to become rich!

Ideas on how to become rich - Financial Management - what the rich do in a down market, last part

2009-06-22T01:21:00.000-07:00

SALLY KLAUS AND HER FINANCE IDEAS:

FINANCIAL MANAGEMENT: WHAT THE RICH DO IN A DOWN MARKET
Last part

Welcome back, dear reader. This is the last part of Sally Klaus' invaluable contribution to my finance, investment and money site. She writes about: "Financial management - what the rich do in a down market". The last article follows:

Take the road less travelled

Your dreams are worth major efforts and you do have a choice: you can go to the financial market without any idea of what investment can and cannot do for you, buy on whim and cobble together an investment portfolio that has no purpose, except vaguely to make money; or you can decide what you want specifically, and learn enough to know what is available on the market, and thereby make calculated decisions and take the correct risks.

There is a lot of finance and investment information out there but do take in the right investment information that will enable you to make good decisions and take the right choices – do be selective and use financial information wisely. Be an informed investor!

Remember to ask the following questions:

Who are you?
Determine your investment profile. What kind of risks can you bear?
How old are you?
How secure do you feel about your ongoing streams of income?
How many years more before your retirement?
What is your life expectancy after retirement?
What is your source of investment capital?
What are primary investment objectives?
When do you expect to need money? Do you need the money now, or later?
Are you aware of the potential risks and benefits of your investment portfolio?
What is your tax status?
What changes to your lifestyle do you have to make?
What is your current net worth?
What steps are you taking to protect your financial assets, your income earning assets, and earning potential?

What works for you: Determining your investment outlook/selection

How does your desired return compare to your risk profile?
Do you prefer growth or dividend income oriented investments?
Do you understand financial risks and rewards?
Is it easy to buy and sell your investment assets?
What are your choices for buying this particular asset?
What are your costs and fees associated with buying and selling this asset?

All the best, and I hope that you have learnt and benefited immensely from all the information and advice in this investment and financial series. Thank you for reading!

End of the last part of this “financial ideas” series
Special thanks to Sally Klaus for her contributions on financial management, which were particularly interesting and memorable for the extensive use of metaphors. I am thankful because I have many economics research papers and she has saved me time and effort to write, and furthermore her financial advice contributions have been very useful and illuminating. A summary of financial advice and more comments follow in the next post. Thank you for reading and cheers.

Ideas on how to become rich

Ideas on how to become rich - Financial Management - what the rich do in a down market, part 6

2009-06-18T23:12:00.000-07:00

SALLY KLAUS AND HER FINANCE IDEAS:

FINANCIAL MANAGEMENT: WHAT THE RICH DO IN A DOWN MARKET
Part 6

Hello and welcome. Here is part 6 from Sally Klaus' ideas on finance and financial management - what the rich do in a down market.

Use numbers to calm your mind and calm yourself

Investment success is attainable, but not guaranteed, no matter how well conceived the asset allocation plan. The odds of achieving wisdom and success can be enhanced and improved upon through practical thought and reflection. Along the way to achieving your investment goals, you need to pay attention to certain investment guidelines and principles intended to shape and sharpen your efforts.

Knowing yourself and coming to terms with such knowledge represent difficult but highly worthwhile investment goals. Warren Buffett has repeatedly advised investors to find and develop their own circle of competence and stay within it. Knowing yourself is also an ongoing process where you learn to discern the 5 physical senses and train your mind to process enormous amounts of information and filter all down to what is essential. Asset markets may change, technology may change, but the usual human response has tended to remain similar through the ages. If something does not feel right, let it pass. It is not wise to allocate assets and invest based purely on instinct and yet it is equally unwise to ignore your gut instincts when doing so.

Remember, it is not a real financial mistake if you really learn from it.

Don’t smother your own, personal, financial dreams

Being unaware of the financial risks you are taking is one of the quickest ways to find yourself on the road to financial perdition.

Never take comfort in crowds – if everyone is making investment losses, you may feel good that all are suffering together, but it is not the right thing to do. Do not follow others blindly because it is your money, your investments, your life. It is all about your dreams and not about others.

Chasing financial performance alone is not sufficient to determine whether that asset is good or bad. Sometimes we give up a good asset and later regret it because it is not performing. That wrong decision could cost lives and money.

Not using the correct investment advisor is another step to investment ruin. Learn to trust someone who is an investment expert and then ask around for good investment advice so that you can learn on the way to success.

Do not let emotions rule your financial decisions. Fear and greed are the two greatest emotions that lead to ruin in an investor’s life.

End of the sixth part of this “financial ideas” series

More financial advice, financial education, and money ideas to come in the next post. Special thanks and acknowledgements to Sally Klaus for her invaluable contributions and ideas on financial education. Thanks for reading and cheers!

Ideas on how to become rich!

Ideas on how to become rich - Financial Management - what the rich do in a down market, part 5

2009-06-09T23:20:00.000-07:00

SALLY KLAUS AND HER FINANCE IDEAS:

FINANCIAL MANAGEMENT
Part 5

Welcome back to this financial management series here on my ideas site - what the rich do in a down market, by Sally Klaus.

The jockey matters as much as the horse

The selection of the fund manager, or stock broker, is as important as your investment assets themselves. Who is riding the horse, on what kind of track, and what kind of race are all important questions for you, as it is your investment money we are talking about here.

Is it possible to have exactly the right asset class and have your investment returns ruined by choosing the wrong investment manager. Yes, therefore it is important to select the right investment jockey for your investment horses. Whether you do it for yourself or use an investment advisor to seek out the best investments for you, you will be evaluating how well they know the financial track and how they have performed under different kinds of financial and economic conditions in the past.

Passive investing is not as good as active investing, where the goal to do well is part of your life, whereas passive investing is mostly relying on the investment choices and investment paradigms of the fund managers or the jockeys. Active investing gives you direct control of your financial choices and enables you to be able to judge your investments better. The flow of financial information is also better and more direct.

Yet, sometimes, you do not have the time to invest directly, so it is indeed necessary for you to get a fund manager or a metaphorical financial jockey. So some of the questions would be, if you are not going for active investment but for passive investment:

What are the ethics of the fund manager, his investment philosophy and his investment or financial discipline…?

If you discover that your jockey is not doing well, you may have to change jockey mid stream to prevent future investment losses or poor management of your assets. In the long run, you have to monitor the investment manager’s performance closely; perhaps, even closer than you monitor your own financial asset allocation mix. It is essential to make sure that your investment portfolio has a good day at the investment track and is working hard to make your investment dreams a reality.

Riding out financial storms

Be prepared for the inevitable. And financial storms are definitely inevitable, just like the immutable law of gravity. What does up must come down, and vice versa. Be aware of market cycles and the financial movements of all those up and downs which may be out of our prediction and control. The need to protect yourself is there, just like insurance – how much coverage do you want? How high is the value that you are insuring? The higher the value of the asset and the lower the deductibles, the more the protection will cost. The more you cover, the more it costs, so you have to weigh the pros and cons of your coverage. You must always ask yourself: what is it that you want at the end of the day?

Building your house on rocks

The stronger the foundation, the better and more solid the house will be. This is commonsensical and thus it would be crucial to decide how your human capital is going to turn into your financial capital at the end of your own personal investment journey… it depends on several things. How much you earn, how much you spend, your lifestyle choices, your plan for taxes and inflation … all these are important financial questions that you need to ask yourself.

It is important to keep in mind that each of us is different and the investment path for converting our human capital into financial capital will not be as smooth as what we hope it to be. Still it is vital for us to build up a steady investment/ financial conversion journey so that we allocate investments properly.

End of the fifth part of this “financial ideas” series

Special thanks once again to Sally Klaus and her invaluable contributions to financial education on Ideas on How to Become Rich. She has been a great help to my finance, money, and investment blog. Thanks for reading and cheers!

Ideas on how to become rich!

Ideas on how to become rich - Financial Management - what the rich do in a down market, part 4

2009-05-29T22:21:00.000-07:00

SALLY KLAUS AND HER FINANCE IDEAS:

FINANCIAL MANAGEMENT: WHAT THE RICH DO IN A DOWN MARKET
Part 4

Here we continue the financial management series with more ideas on how to become rich.

Mix and don’t match

In investment and asset allocation, plaids do go with stripes. What goes up must come down and vice versa. What do these strange aphorisms mean? Applied to investments, the concept of mean reversion states that, after a period of several investment cycles, most financial asset returns will tend to generate their long term average investment returns. This is best illustrated with a concrete example for understanding. For example, Japanese equities’ returns in the mid to late 1980s were far greater than their long term average and at some point it became increasingly likely that they would revert to their mean returns by producing returns that were near to their long term average.

All we have to do is to watch the numbers because numbers don’t lie. The whole point of asset allocation and investing is to protect your capital and earn a satisfactory return. Your investment return may come from dividends or interests or appreciation of investment assets in real estate or stocks. Some returns from some financial asset classes are fixed in amount while others are less predictable and more market dependent.

Our minds - our selves – do not be your own enemy

One of our investment pitfalls is that we suffer from varying degrees of overconfidence. We think we are better at something than we actually are. Stereotyping ourselves sometimes limits our views to possibilities and opportunities. Many people, when they have made some money from the stock market, think they are investment geniuses and forget that they may only be lucky for once. There is a need to know that we must not confuse investment luck with investment skills.

It is okay to get lucky, but don’t assume a lucky financial gain can be repeated because you are “so smart”. Sometimes being smart was not the cause of the lucky financial gain. The market is in fact not controlled by one person or a group of people. Mistakes can be made by being inflexible, and stubbornness can sometimes really make you pay. We need to be aware of what the behavioral finance types call framing. Framing is simply how we look at our investments. When we get a phone call about our investment idea involving some new wonderful boom-bang investment, do we get caught up in the excitement without considering how it affects our overall investment plan?

Do we know what exactly is happening financially and how well we know the financial developments?

We need to be realistic in our approach to investing. Be methodical and careful in your investment approach. Do your homework. Keep the short term business news in perspective and focus on the big picture. Know your investment weaknesses as well as your investment strengths. When you hear about a new idea that sounds interesting or exciting, ask how it fits in with your plan. Remember all the earlier materials that we covered in the other sections of this financial series? Your plan may not be the same as your neighbour’s or your family member’s plans. By focusing on your goals, avoiding highs and lows of your emotions you can structure and manage your asset allocation plan to take advantage of others’ emotions and mental mistakes instead of getting them richer because of your mistakes!

End of fourth part of this “financial ideas” series

Special thanks to Sally Klaus and her valuable contributions to my finance, investment and money blog. More to come from Sally Klaus in future posts; stay tuned!

Ideas on how to become rich!

Ideas on how to become rich: Financial Management - what the rich do in a down market, part 3

2009-05-25T23:26:00.000-07:00

Ideas on how to become rich: Financial Management - what the rich do in a down market, part 3

SALLY KLAUS AND HER FINANCE IDEAS:

FINANCIAL MANAGEMENT: WHAT THE RICH DO IN A DOWN MARKET

Part 3

Welcome back. In this part of financial market survival strategy, we delve into the subject further. There are two strategies to win the battle for investment survival: (A) a long term investment focus (strategy) and (B) a short term investment focus (tactics). It is commonsense to use the current financial environment to keep the big picture of investment in focus.

A strategic focus means looking at long term financial assets because there are many investments which take a long time to come to pass. It is like playing chess with the final checkmate in mind ultimately for the opponent. You need to see the end before even starting the investment game.

Assets such as real estate, mutual funds or even insurance schemes are for strategic investment purposes, because these take a long term investment perspective. It is our investment journey’s final destination; where do we stop for a rest eventually?

Use tactical financial plans which are the moves like tactical chess – moving the pawns first, one at a time. It is like a traveler who has to pause at stops along the long journey. Short term assets are useful for shifts in any financial market movements or asset valuations. When it is deemed appropriate to do so, you should execute various tactical asset allocation shifts by moving financial assets in convenient parking lots for you to manipulate short term financial movements.

The key thing is to be prepared for investment changes and financial market movements as the world is very volatile these days with economic, political and financial changes taking place almost daily.

Another point to note is: do you know where you are going? Every one of us needs a road map to check our direction and also to ensure we are moving in the correct path. Are you more afraid of losing money or missing out on an opportunity? What is your investment personality, once again? This is not a simple question but one that needs to be successfully answered. To successfully establish a portfolio, you have to take some time to get to know yourself and your money making goals. You need to honestly evaluate your financial conditions and the kind of investment goals or money making personality you have.

Do you plan for your children’s education or do you plan for a resort style living after retirement? Each of us has ideas of what we want our money to do, and how to do it, and how money making is important or not so important for us, so if you are going to need money in two to three years’ time, then you must automatically rule out certain long term financial assets, as you probably have no time to wait for them to give you investment returns.

For teenagers, five to ten years may seem a long time to wait but for a working professional in his 30 or 40s, these sorts of years are not a long term thing. You have to deal with risk factors, tax factor and also the investment returns you are envisaging for the next few years. There are many factors to consider!

The key reminder is to ask yourself: do you have enough money for a rainy day?

End of third part of this “financial ideas” series

Special thanks to Sally Klaus and her contributions to my finance, investment and money blog. More to come here on this site on Ideas on How to Become Rich; stay with me. Thanks and cheers.

Ideas on how to become rich!

Ideas on how to become rich: Financial Management - what the rich do in a down market, part 2

2009-05-12T19:43:00.000-07:00

Ideas on how to become rich: Financial Management - what the rich do in a down market, part 2

SALLY KLAUS AND HER FINANCE IDEAS:

FINANCIAL MANAGEMENT: WHAT THE RICH DO IN A DOWN MARKET

Part two

Building your house

Your investment portfolio needs to reflect your personality. It is like buying a house with different rooms, for different purposes. Make sure your financial assets in your investment portfolio suit your personality, just as furniture suits your individual style and room design.

People have varying motivations and reasons for having investments and financial assets. These investment motivations and emotions could range from greed to fear, from comfort to excitement, the need to make money or the urge to make a quick buck, long term and short term goals …

Asset class ... and
Represents investors’ quest for...

Cash
safety and liquidity

Bonds
Income , reliability, predictability

Stocks
Ownership, value creation profits

Real estate
Tangibility, ownership, income and ego

Commodities
Exposure to price moves and human needs

Precious metals
Purchasing power protection, hedging

Venture capital
Capital growth, control over corporate destiny

Mutual funds
Trend exploitation, protection against market turbulence

Hedge funds
Finding and taking advantage of inefficiencies

Inflation – indexed securities
Inflation hedging and pp protection

Art
Prestige, ego, income and intellectual affirmation

Reminder: match the investment to your financial goals and personality.

Combining dreams into a plan

Your investment plan should be as specific and individual as your dreams. Many of us invest in certain assets because of what they can do for us. Most want their money safe from inflation or turbulence, and also want to fulfil their dreams of a possible future “good life”, which quite often requires a lot of money!

There are many objectives for investors.

The first is protection against the effects of inflation. When inflation rates soar, stocks may tend to get hurt. The rising costs of borrowing and doing business may make it difficult for them to grow faster than the inflation rate. In addition, many of the stocks tend to follow a certain trend.

The second reason for owning stocks is that we want to gain exposure to profitable companies and overall economic growth. In the long run, owning equity assets give us the investment opportunity to profit from economic growth .

Third reason is that we want some sort of investment return – to get paid for the hard work and our money. It is thus best to include dividend paying stocks, preferred stocks and REITs – real estate investment trusts. This is to protect you in the case of turbulence and times of crisis.

Many people own stocks because they want to ensure profitability as well as liquidity. But never use long term assets for short term investment goals and vice versa.

End of second part of this “financial ideas” series

Special thanks to Sally Klaus and her invaluable contributions to Ideas on How To Become Rich! Stay tuned for more financial and investment ideas, thanks and cheers!

Ideas on how to become rich!

Ideas on how to become rich: Financial Management - what the rich do in a down market, part 1

2009-05-12T09:03:00.000-07:00

SALLY KLAUS AND HER FINANCE IDEAS:

FINANCIAL MANAGEMENT: WHAT THE RICH DO IN A DOWN MARKET

NB To my loyal readers, I am back from a long Economics examination period, and have completed my economic research on global capital flows. I might make it available here online for research purposes if the paper is released. Here is a series on financial management by Sally Klaus, my loyal reader, who contributes many good ideas and excellent materials for my Ideas on How To Become Rich site. Thanks for reading and cheers.

Each of these following financial rules would be discussed in future posts and in detail one at a time…

Don’t let your financial or money making plan be an accident
Everyone needs an “Uncle Frank”
Building your house
Combining dreams into a money making plan
Two strategies to win the battle for investment survival
Do you know where you are going?
Mix and don’t match
Our minds; our selves
The jockey matters as much as the horse
Riding out the storms
Building your house on rocks
7 quick ways to ruin
Take the road less travelled
Who are you?
What works for you?

Don’t let your plan be an accident

Asset allocation and asset planning are very important in the life of an investor. What is asset allocation or asset planning? First, you have to ascertain what kind of financial assets you want to invest and keep in terms of ranking such as how much cash you need, stocks you want to invest, unit trust, real estate, inventory etc…

It is not only to find out those financial assets that can grow, but furthermore that allocation is to find financial assets that will help you to have a balanced investment portfolio.

As the saying goes, it is not wise to put all the eggs in one basket, hence, it is thus vital for us to have many little baskets or few eggs in each basket so that at any time, we have both financial liquidity and profitability.

What kind of financial allocation or financial planning will depend on your financial goals in life, your financial circumstances and your personality. Today we are more fortunate in that we are exposed to a host of advisory and information from media and internet etc… unlike the investors in the past. It is thus easy for us to find out information very quickly and this will enable us to make quick decisions.

Think of the money or financial assets you have as players in your football team. Each has its strengths and weaknesses. You have your game plan. You know what you need from each player. So you need to think of the behaviours of each player before you make decisions to hold how many stocks, bonds, cash, or buy a piece of real estate.
So if you want to play offensive, you have to take advantage of economic conditions to buy certain financial assets or securities which are of higher returns or perhaps even inflation protected securities.

Since changes are fast and furious, your financial decisions have to be reevaluated now and then in response to market conditions so as not to be caught unawares.

One of the most fundamental elements of financial asset allocation is diversification. True diversification involves having several distinct kinds of asset classes that perform differently from each other in different kinds of economic or financial environments.

Some investments such as commodities or metals may thrive in a high inflation environment but others such as bonds or treasury bills or even mutual funds excel in a more deflationary environment.

Diversification will not only make the financial portfolio less volatile, it will also make your reaction to the state of financial markets more stable and less anxious.

Risk awareness allows us to ensure that we have discipline and also gives us the staying power to ensure our investment goals become a reality.

Everyone needs an uncle Frank – this idea means that we all need mentors or advisors, especially financially or investment wise

It is always a good idea to hear another’s views or opinions of financial markets, especially someone who is an expert or experienced in financial planning or financial markets. Knowledge is power and thus this person can help you to tone down your risk or quicken your steps in that he or she can help analyse luck and skills in investment successes.

Having a mentor also enables us not to make rash decisions or prevents us from becoming overly confident as he may play devil’s advocate and give you another side of the story. A good mentor will help you make better decisions because two heads are always better than one. It is also safer to travel in twos.

End of first part of this financial ideas series

NB special thanks to Sally Klaus and her contributions to Ideas on How To Become Rich – finance, investment and ideas site

Ideas on how to become rich - Golden Rules of Entrepreneurship

2009-03-17T18:10:00.000-07:00

Ideas on how to become rich - Golden Rules of Entrepreneurship

Recently, I have been busy with studying for Economics and also writing an independent study research paper on the current global financial crisis, and in particular I have been busy with writing about global capital flows, and how money flows from poor countries to rich countries, rather than the more "commonsensical" flow of capital from rich to poor countries. One of my very loyal readers therefore took it upon herself to send me an article on money and finance, and I liked that very much that I just had to put it up here on my ideas on how to become rich site. Thanks to Sally for her contributions to my ideas site.

From Sally Klaus, on Ideas on How to Become Rich:

the Golden Rules of Entrepreneurship

1 Seize all opportunities - money making, networking, business opportunities

2 Think like an entrepreneur, noticing and sensing things around you

3 If real estate is location, location, location, then entrepreneurship is people , people, and people

4 Enterpreneurs view setbacks as temporary

5 Give everyone connected with your company a vested interest in the business

6 The only good deal is a fair deal

7 People who prepare succeed - if you fail to plan, you plan to fail

8 Listen – you can only learn when you are listening

9 It is not just the idea that is important but the implementation of that idea... too many people have great ideas on how to make money but they don't work on their ideas, and those just remain great ideas on how to make money BUT there's no real money in the end...

10 Plan both your personal and your company’s finances

11 Create a business plan to organize your thoughts and attract investors

12 Research your competitors - know yourself and know your opposition

13 Do not spend time emulating others, spend time creating and innovating

14 Watch your ass

15 Get everything in writing

16 If no one knows about your business, it doesn/t matter how good your idea is

17 Identify your target market - who are the people who will give you your business, your money?

18 Keep track of how effective your marketing and advertising initiatives are - watch your advertising budget and watch your advertising money!

19 Choose your partners carefully

20 Establish good relations with lines of credit such as banks, investors and friends

21 A business is only as good as the people of that company

22 Successful management retains employees

23 You can never know too many people - networking helps you become rich, socially and financially

24 Check your weaknesses

25 Build trust with everyone you work with

26 Enjoy your work while you look for success

Thanks to Sally Klaus for her valuable contribution here on my money making and ideas site about entrepreneurship and making money and profits as an entrepreneur. More to come on this site about ideas on how to become rich and other contributions from various readers on related ideas and interesting things that they have read.

Thanks for reading and cheers!

Ideas on how to become rich!

Ideas on how to become rich - How to become a billionaire, part 6

2009-02-28T08:05:00.000-08:00

Ideas on how to become rich - How to become a billionaire, part 6

In this series on how to become a billionaire, I have looked at various companies and their histories and their beginnings, and we have seen many ways and paths to making lots of money by creating viable businesses that last and that have many good ideas. We had a look at Ford, GM, Google, and Walmart. In this final post on how to become a billionaire, we will look at General Electric in general... and someone in particular. No, it's not Jack Welch, although you can read some of his quotes and ideas here: Some great ideas by Jack Welch.

Read: How to become a billionaire - General Electric and how to create a future billion dollar company

The General Electric Company is a multinational American technology and services conglomerate. In the 1960s, aspects of U.S. tax laws and accounting practices led to a rise in the assembly of conglomerates. GE, which was a conglomerate long before the term was coined, is arguably the most successful organization of this type that makes a lot of money.

I am going to focus here on the history of General Electric, but in particular on the person who began it and set it on the long path to success. Most people associate GE with Jack Welch, who undoubtedly was very important and instrumental, but it is to the earliest founder that we must look for inspiration on how to become rich. That man, the earliest founder, was none other than Thomas Edison.

Yes, the rich man whom we are going to learn from is none other than Thomas Edison. The inventor. Read on!

Thomas Alva Edison (February 11, 1847 – October 18, 1931) was an American inventor and businessman who developed many devices that greatly influenced life around the world, including the phonograph and the long-lasting, practical electric light bulb. “The Wizard of Menlo Park”, he was one of the first inventors to apply the principles of mass production and large teamwork to the process of invention, and therefore is often credited with the creation of the first industrial research laboratory. Edison is considered one of the most prolific inventors in history, holding 1,093 U.S. patents in his name, as well as many patents in the United Kingdom, France and Germany. He is credited with numerous inventions that contributed to mass communication and, in particular, telecommunications. His advanced work in these fields was an outgrowth of his early career as a telegraph operator. Edison originated the concept and implementation of electric-power generation and distribution to homes, businesses, and factories - a crucial development in the modern industrialized world. This was one of the key points that made him very successful.

Edison's major innovation was the first industrial research lab, which was built in Menlo Park, New Jersey. It was built with the funds from the sale of Edison's quadruplex telegraph. The quadruplex telegraph was Edison's first big financial success, and Menlo Park became the first institution set up with the specific purpose of producing constant technological innovation and improvement. This is a key idea in becoming rich, and establishing a future multi billion dollar company. Edison was legally attributed with most of the inventions produced there, though many employees carried out research and development work under his direction. His staff was generally told to carry out his directions in conducting research, and he drove them hard to produce results. The large research group, which included engineers and other workers, based much of their research on work done by others before them.

Nearly all of Edison's patents were utility patents, which were protected for a 17-year period and included inventions or processes that are electrical, mechanical, or chemical in nature. (Clearly, one point to note is that patents play a role in making companies rich, and in particular, utilities and technologies companies who want to make a lot of money or become billion dollar companies probably need to have patents.) About a dozen were design patents, which protect an ornamental design for up to a 14-year period. Like most patents, the inventions he described were improvements over prior art. The phonograph patent, on the other hand, was unprecedented as the first device to record and reproduce sounds. Edison did not invent the first electric light bulb, but instead invented the first commercially practical incandescent light. Several designs had already been developed by earlier inventors including the patent he purchased from Henry Woodward and Mathew Evans, Moses G. Farmer, Joseph Swan, James Bowman Lindsay, William E. Sawyer, Sir Humphry Davy, and Heinrich Göbel. Some of these early bulbs had such flaws as an extremely short life, high expense to produce, and high electric current drawn, making them difficult to apply on a large scale commercially. In 1878, Edison applied the term filament to the element of glowing wire carrying the current. Edison took the features of these earlier designs and set his workers to the task of creating longer-lasting bulbs. By 1879, he had produced a new concept: a high resistance lamp in a very high vacuum, which would burn for hundreds of hours. While the earlier inventors had produced electric lighting in laboratory conditions, Edison concentrated on commercial application, and was able to sell the concept to homes and businesses by mass-producing relatively long-lasting light bulbs and creating a complete system for the generation and distribution of electricity. This was one of the keys to his success and he made a lot of money.

In just over a decade Edison's Menlo Park laboratory had expanded to occupy two city blocks. Edison said he wanted the lab to have "a stock of almost every conceivable material". Over his desk, Edison displayed a placard with Sir Joshua Reynolds' famous quote: "There is no expedient to which a man will not resort to avoid the real labour of thinking." With Menlo Park, Edison had created the first industrial laboratory concerned with creating knowledge and then controlling its application. This made him a lot of money via R and D.

Edison patented an electric distribution system in 1880, which was essential to capitalize on the invention of the electric lamp. On December 17, 1880, Edison founded the Edison Electric Illuminating Company. The company established the first investor-owned electric utility in 1882 on Pearl Street Station, New York City. It was on September 4, 1882, that Edison switched on his Pearl Street generating station's electrical power distribution system, which provided 110 volts direct current (DC) to 59 customers in lower Manhattan. Earlier in the year, in January 1882 he had switched on the first steam generating power station at Holborn Viaduct in London. The DC supply system provided electricity supplies to street lamps and several private dwellings within a short distance of the station. On January 19, 1883, the first standardized incandescent electric lighting system employing overhead wires began service in Roselle, New Jersey.

Edison's true success, like that of his friend Henry Ford, was in his ability to maximize profits through establishment of mass-production systems and intellectual property rights. This dampened the success of less profitable work by others who were focused on inventing longer-lasting high-efficiency technology. George Westinghouse and Edison became adversaries because of Edison's promotion of direct current for electric power distribution instead of the more easily transmitted alternating current (AC) system invented by Nikola Tesla and promoted by Westinghouse. Once again: Edison's true success, like that of Ford, was in his ability to maximize profits and make a lot of money through establishment of mass-production systems and intellectual property rights.

The key to Edison's fortunes was telegraphy, with which he earned a lot of money and made his company grow and grow. With knowledge gained from years of working as a telegraph operator, he learned the basics of electricity. This allowed him to make his early fortune with the stock ticker, the first electricity-based broadcast system. Edison patented the sound recording and reproducing phonograph in 1878. Edison was also granted a patent for the motion picture camera or "Kinetograph". He did the electromechanical design, while his employee W.K.L. Dickson, a photographer, worked on the photographic and optical development. In 1891, Thomas Edison built a Kinetoscope, or peep-hole viewer. This device was installed in penny arcades, where people could watch short, simple films. On August 9 1892, Edison received a patent for a two-way telegraph. In April 1896, Thomas Armat's Vitascope, manufactured by the Edison factory and marketed in Edison's name, was used to project motion pictures in public screenings in New York City. Later he exhibited motion pictures with voice soundtrack on cylinder recordings, mechanically synchronized with the film. Officially the kinetoscope entered in Europe when the rich American Businessman Irving T. Bush (1869–1948) bought from the Continental Commerce Company of Franck Z. Maguire and Joseph D. Bachus a dozen machines. Bush placed from October 17, 1894 on the first kinetoscopes in London. At the same time the French company Kinétoscope Edison Michel et Alexis Werner bought these machines for the market in France. In the last three months of 1894 The Continental Commerce Company sold hundreds of kinetoscopes in Europe (i.e. the Netherlands and Italy). The first kinetoscopes arrived in Belgium at the Fairs in early 1895. The Edison's Kinétoscope Français, a Belgian company, was founded in Brussels on January 15, 1895 with the rights to sell the kinetoscopes in Monaco, France and the French colonies. The main investors in this company were Belgian industrialists. On May 14, 1895 the Edison's Kinétoscope Belge was founded in Brussels. The businessman Ladislas-Victor Lewitzki, living in London but active in Belgium and France, took the initiative in starting this business.

Edison was active in business right up to the end. Just months before his death in 1931, the Lackawanna Railroad implemented electric trains in suburban service from Hoboken to Gladstone, Montclair and Dover in New Jersey. Transmission was by means of an overhead catenary system, with the entire project under Edison's guidance. To the surprise of many, he was at the throttle of the very first MU (Multiple-Unit) train to depart Lackawanna Terminal in Hoboken, driving the train all the way to Dover. This was one truly great American inventor, business man and very rich and wealthy person who made the beginnings of the great General Electric possible.

The usual questions apply: how can we use these nuggets of information and all these good ideas to become rich? The ideas are all there and we can emualate Edison. At the same time, do read and review all the other various companies and how they made their billions, as well as their company histories, to find out ideas on how to become a billionaire.

Just a quick reminder:

Summary and general points on how to become rich the way billionaires made their money

1. Usually the starting point is a great idea or a great concept, and usually that has nothing to do with making money initially, but providing a service or some product that is needed or will soon be needed.

2. If not a great idea, then it usually turns out to be that the person who eventually became very rich started working very hard and very young. Most millionaires and some billionaires became rich this way, working their way up the corporate ladder.

3. The company gets listed on the stock exchange. That's why the next few posts will deal with looking at various case studies of billionaires and their companies, and mostly focuses on the companies that make the billionaires possible. In other words, the businesses. The various businesses that took different routes, but ended up rich and prosperous and made their shareholders rich and in some cases billionaires.

4. The company expands by wise strategic moves and by excellent leadership - or in some cases luck and fortune. This differs from company to company and in some cases mergers and acquisitions are the order of the day, whereas in some other cases some companies do not merge with other companies but instead expand their range and power via products and reach.

5. The billionaires in question become very rich because of their control of a great company that makes a lot of money.

Hope you loved that reminder on how to become rich.

More great ideas to come in future posts here on this money making site. Thanks for reading the various ideas, case studies and plans, and cheers!

Ideas on how to become rich

Ideas on how to become rich - How to become a billionaire, part 5

2008-12-18T21:42:00.000-08:00

Ideas on how to become rich - How to become a billionaire, part 5

So far, we have examined the basic principles of how to become a billionaire and we have also examined various companies that made a lot of money, and how they did in, in terms of their history and what they do to make money, and what they did in their rise to eminence. In this post on how to become a billionaire, we will be examining the history of Ford and General Motors. The resources for this research came from Forbes.com, Wikipedia as well as newspaper resources on the rich and famous. A quick reminder - my research methodology for the topic on "how to become a billionaire" was simply to see how we can emulate billionaires and billion-dollar companies and businesses, and the research methodology for my past few posts have been documented here:

Ideas on how to become rich: research methodology for the billionaire series

Without further ado, the history of Ford and GM, for you to glean insights into the power and virtue of making and creating great and powerful businesses that can generate income and huge amounts of earnings for shareholders and managers alike.

Case study: History of GM and ideas on how to become rich

General Motors was founded on Wednesday, September 16, 1908 in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant, and acquired Oldsmobile later that year. The next year, Durant brought in Cadillac, Elmore, Oakland and several others. In 1909, General Motors acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. Durant lost control of GM in 1910 to a bankers’ trust, because of the large amount of debt taken on in its acquisitions around $1 million.

Durant left the firm and helped establish the Chevrolet Motor Company in 1911 with brothers Gaston and Louis Chevrolet. After a brilliant stock buy back campaign, he returned to head GM in 1916, with the backing of Pierre S. du Pont. Chevrolet entered the General Motors fold in 1917; its first GM car was 1918's Chevrolet 490. Du Pont removed Durant from management in 1920, and various Du Pont interests held large or controlling share holdings until about 1950.

In 1918 GM purchased the McLaughlin Motor Car Company of Oshawa, Ontario, Canada, manufacturer of the McLaughlin-Buick automobile, and renamed it General Motors of Canada Ltd., with R.S. "Colonel Sam" McLaughlin as its first president. In 1925, GM bought Vauxhall Motors of England, and then in 1929 went on to acquire an 80% stake in German automobile manufacturer Adam Opel AG. Two years later this was increased to 100% and the company remains the core of GM Europe to this day.

GM surpassed Ford Motor Company in the late 1920s thanks to the leadership of Alfred Sloan. While Ford continued to refine the manufacturing process to reduce cost, Sloan was inventing new ways of managing a complex worldwide organization, while paying special attention to consumer demands. Car buyers no longer wanted the cheapest and most basic model; they wanted style, power, and prestige, which GM offered them. Thanks to consumer financing, easy monthly payments allowed far more people to buy GM cars, while Ford was moralistically opposed to credit. Guess which idea was better for making money?

During the 1920s and 1930s, General Motors assumed control of the Yellow Coach bus company, and helped create Greyhound bus lines. They replaced intercity train transport with buses, and established subsidiary companies to buy out streetcar companies and replace the rail-based services as well with buses. GM formed United Cities Motor Transit in 1932.

In 1930, GM also began its foray into aircraft design and manufacturing by buying Fokker Aircraft Corp of America and Berliner-Joyce Aircraft, merging them into General Aviation Manufacturing Corporation. Through a stock exchange GM took controlling interest in North American Aviation and merged it with its General Aviation division in 1933, but retaining the name North American Aviation. In 1948, GM divested NAA as a public company, never to have a major interest in the aircraft manufacturing industry again.

General Motors bought the internal combustion engine inside the railcar builder Electro-Motive Corporation and its engine supplier Winton Engine in 1930, renaming both as the General Motors Electro-Motive Division. Over the next twenty years, diesel-powered locomotives — the majority built by GM — largely replaced other forms of traction on American railroads. Electro-Motive was sold in early 2005.

General Motors produced vast quantities of armaments, vehicles, and aircraft during World War II for both Allied and Axis customers, and made a lot of money. By the spring of 1939, the German Government had assumed day-to-day control of American owned factories in Germany, but decided against nationalizing them. During the war, the U.S. auto companies continued to be concerned Nazi Germany would nationalize American-owned factories.

GM's William P. Knudson served as head of U.S. wartime production for President Franklin Roosevelt, who called Detroit as the Arsenal of Democracy. The General Motors UK division, Vauxhall Motors, manufactured the Churchill tank series for the Allies. The Vauxhall Churchill tanks were instrumental in the UK campaigns in North Africa. Bedford Vehicles manufactured logistics vehicles for the UK military, all important in the UK's land campaigns.

Nevertheless, while General Motors has claimed its German (Opel) operations were outside its control during World War II, this assertion appears to be contradicted by available evidence. General Motors was not just a car company that happened to have factories in Germany; GM management from the top down had extensive connections with the NSDAP, both on a business and personal level. American GM Vice President (later Colonel) Graeme K. Howard was a committed Nazi, and expressed such views in his book, America and a New World Order. Adolf Hitler awarded GM boss James D. Mooney the Order of Merit of the Golden Eagle for his services to Nazi Germany. General Motors’ internal documents show a clear strategy to profit from their German military contracts even after Germany declared war against America. Defending the German investment strategy as “highly profitable” and making a lot of money, Alfred P. Sloan told shareholders in 1939 GM’s continued industrial production for the Nazi government was merely sound business practice.

At one point GM had become the largest corporation registered in the United States, in terms of its revenues as a percent of GDP. In 1953, Charles Erwin Wilson, then GM president, was named by Eisenhower as Secretary of Defense. When he was asked during the hearings before the Senate Armed Services Committee if as secretary of defense he could make a decision adverse to the interests of General Motors, Wilson answered affirmatively but added that he could not conceive of such a situation "because for years I thought what was good for the country was good for General Motors and vice versa". Later this statement was often misquoted, suggesting that Wilson had said simply, "What's good for General Motors is good for the country." At the time, GM was one of the largest employers in the world – only Soviet state industries employed more people. In 1955, General Motors became the first American corporation to pay taxes of over $1,000 million. Now one can guess how much money that corporation made, if the money it made allowed it to pay that much in taxes!

Case study: History of Ford and ideas on how to become rich

Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John and Horace Dodge, who would later found the Dodge Brothers Motor Vehicle Company. Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 100 years.

During its early years, the company produced a range of vehicles designated, chronologically, from the Model A in 1903 to the Model S in 1908. That year, Henry Ford introduced the Model T. Earlier models were produced at a rate of only a few a day at a rented factory on Mack Avenue in Detroit, Michigan with groups of two or three men working on each car from components made to order by other companies. The first Model Ts were built at the Piquette Road Manufacturing Plant, the first company-owned factory. In its first full year of production, 1909, about 18,000 Model Ts were built. By 1913, the company had developed all of the basic techniques of the assembly line and mass production. Ford introduced the world's first moving assembly line that year, which reduced chassis assembly time.

These innovations were hard on employees, and turnover of workers was very high, while increased productivity actually reduced labour demand. Turnover meant delays and extra costs of training, and use of slow workers. In January 1914, Ford solved the employee turnover problem by doubling pay to $5 a day, cutting shifts from nine hours to an eight hour day for a 5 day work week (which also increased sales; a line worker could buy a T with under four months' pay), and instituting hiring practices that identified the best workers, including disabled people considered unemployable by other firms. Employee turnover plunged, productivity soared, and with it, the cost per vehicle plummeted. The increase in wages led to Ford making more money. Ford cut prices again and again and invented the system of franchised dealers who were loyal to his brand name. He made yet more money. Wall Street had disagreed with Ford's generous labour practices when he began paying workers enough to buy the products they made.

While Ford attained "international" status in 1904 with the founding of Ford of Canada, it was in 1911 that it began to rapidly expand overseas, with the opening of assembly plants in England and France, followed by Denmark (1923), Germany (1925) and Austria (1925) and also in Australia (1925) as a subsidiary of Ford of Canada. By the end of 1919, Ford was producing 50 percent of all cars in the United States, and 40% of all British ones; by 1920, half of all cars in the U.S. were Model Ts. The assembly line transformed the industry; soon, companies without it risked bankruptcy.

In 1915, Henry Ford went on a peace mission to Europe aboard a ship, joining other pacifists in efforts to stop World War I. This led to an increase in his personal popularity. Ford would subsequently go on to support the war effort with the Model T becoming the underpinnings for Allied military vehicles.

In 1919, Edsel Ford succeeded his father as president of the company, although Henry still kept a hand in management. Although prices were kept low through highly efficient engineering, the company used an old-fashioned personalized management system, and neglected consumer demand for improved vehicles. So, while four wheel brakes were invented by Arrol-Johnson (and were used on the 1909 Argyll), they did not appear on a Ford until 1927. Ford steadily lost market share to GM and Chrysler, as these and other domestic and foreign competitors began offering fresher automobiles with more innovative features and luxury options. GM had a range of models from relatively cheap to luxury, tapping all price points in the spectrum, while less wealthy people purchased used Model Ts. The competitors also opened up new markets by extending credit for purchases, so consumers could buy these expensive automobiles with monthly payments. Ford initially resisted this approach, insisting such debts would ultimately hurt the consumer and the general economy. Ford eventually relented and started offering the same terms in December 1927, when Ford unveiled the redesigned Model A, and retired the Model T after producing 15 million units.

On February 4, 1922 Ford expanded its reach into the luxury auto market through its acquisition of the Lincoln Motor Company, named for Abraham Lincoln whom Henry Ford admired, and the Mercury division was established in 1938 to serve the mid-price auto market. Ford Motor Company built the largest museum of American History in 1928, The Henry Ford. Henry Ford would go on to acquire Abraham Lincoln's chair, which he was assassinated in, from the owners of the Ford Theatre.Abraham Lincoln's chair would be displayed along with John F. Kennedy's Lincoln limousine in the Henry Ford Museum & Greenfield Village in Dearborn, known today as The Henry Ford. Kennedy's limousine was leased to the White House by Ford. President Franklin Roosevelt referred to Detroit as the "Arsenal of Democracy." The Ford Motor Company played a pivotal role in the allied victory during World War I and World War II. As a pacifist, Henry Ford had said war was a waste of time, and did not want to profit from it. He was concerned the Nazis during the 1930s might nationalize his factories in Germany. During the Great Depression Ford's wages may have seemed great to his employees but many of the rules of the factories were very harsh and strict. Those were tense times for American companies doing business in Europe. In the spring of 1939, the Nazis assumed day to day control of Ford factories in Germany.

With Europe under siege, Henry Ford's genius would be turned to mass production for the war effort. After Bantam invented the Jeep, the War Department handed production over to Ford. When Consolidated Aircraft could at most build one B-24 Liberator a day, Ford would show the world how to produce one an hour, at a peak of 600 per month in 24 hour shifts. The specially-designed Willow Run plant broke ground in April 1941. Edsel Ford, under severe stress, died in the Spring of 1943 of stomach cancer, prompting his grieving father to resume day-to-day control of Ford. Mass production of the B-24 began by August 1943.

At the behest of Edsel Ford's widow Eleanor and Henry's wife Clara, Henry Ford would make his oldest grandson, Henry Ford II, President of Ford Motor Company. Henry Ford II served as President from 1945–1960, and as Chairman and CEO from 1960–1980. "Hank the Deuce" led Ford to become a publicly traded corporation in 1956. However, the Ford family maintains about 40 percent controlling interest in the company, through a series of Special Class B preferred stocks. In 1947, Henry Ford passed away. Perhaps an estimated 7 million people mourned his death.

In 1946 Robert McNamara joined Ford Motor Company as manager of planning and financial analysis. He advanced rapidly through a series of top-level management positions to the presidency of Ford on 9 November 1960, one day after John F. Kennedy's election. The first company head selected outside the Ford family, McNamara had gained the favor of Henry Ford II, and had aided in Ford's expansion and success in the postwar period. Less than five weeks after becoming president at Ford, he accepted Kennedy's invitation to join his cabinet, as Secretary of Defense.

Lee Iacocca was involved with the design of several successful Ford automobiles, most notably the Ford Mustang. He was also the "moving force," as one court put it, behind the notorious Ford Pinto. He promoted other ideas which did not reach the marketplace as Ford products. Eventually, he became the president of the Ford Motor Company, but he clashed with Henry Ford II and ultimately, on July 13, 1978, he was famously fired by Henry II, despite Ford posting a $2.2 billion dollar profit for the year. In 1979 Phil Caldwell became Chairman, succeeded in 1985 by Don Petersen. Harold Poling served as Chairman and CEO from 1990-1993. Alex Trotman was Chairman and CEO from 1993-1998, and Jacques Nasser served at the helm from 1999-2001. Henry Ford's great-grandson, William Clay Ford Jr., is the company's current Chairman of the Board and was CEO until September 5, 2006, when he named Alan Mulally from Boeing as his successor. As of 2006, the Ford family owns about 5 percent of Ford's shares and controls about 40 percent of the voting power through a separate class of stock.

(The latest before the recession of late 2008) In December 2006, Ford announced that it would mortgage all assets, including factories and equipment, office property, intellectual property, and its stakes in subsidiaries, to raise $23.4 billion in cash – the need to raise huge sums of money. The secured credit line is expected to finance product development during the restructuring through 2009, as the company expects to burn through $17 billion in cash before turning a profit and making money in future. The action was unprecedented in the company's 103 year history.

What can we learn from the history of these two major companies that have made money and lost money, and still managed to become major billion dollar companies? These are good questions that we should ask ourselves.

More to come in the next post on Ideas on How to Become Rich, stay tuned! Cheers.

Ideas on how to become rich!

Ideas on how to become rich - How to become a billionaire, part 4

2008-12-12T23:46:00.000-08:00

Ideas on how to become rich - How to become a billionaire, part 4

In the previous post, I explored how Sam Walton made his money and became very rich. In this post, I will be exploring two individuals who have been instrumental in helping make the world digitalised and in the process have made a lot of money and have become incredibly rich.

This article here examines Google, using Wikipedia as well as news reports as sources. First, we shall be looking at Google in general, although I suspect that many people already know how Google makes money and what the company does and such. Secondly, we shall be looking at the founders and their lives, and how they founded the company. In particular, Page and Brin.

However, in this case study on how to become a billionaire, I will not be giving any answers or giving any personal opinions or recommendations on how to become rich or how to become a billionaire - you can read the information below in the case study and figure out for yourself what it was that made these two individuals very rich and how they did, and you should be constantly asking yourself what ideas and what lessons can be take away from them? The theme of course is "how to become rich". Remember to ask yourself such questions as we explore this case study of Google - one of the best and biggest companies on earth currently.

Case study: Larry Page and Sergey Brin and their company, Google
Materials taken from Wikipedia, online sources, as well as newspaper reports, dated before 2008

What is Google? - a basic primer and basic introduction

Google Inc. is an American public corporation, earning revenue from advertising related to its Internet search, e-mail, online mapping, office productivity, social networking, and video sharing services as well as selling advertising-free versions of the same technologies.

Google was co-founded by Larry Page and Sergey Brin while they were students at Stanford University and the company was first incorporated as a privately held company on 4 September 1998. The initial public offering took place on 19 August 2004, raising US$1.67 billion, making it worth US$23 billion. Google has continued its growth through a series of new product developments, acquisitions, and partnerships.

Google began in January 1996, as a research project by Larry Page, who was soon joined by Sergey Brin, two Ph.D. students at Stanford University in California. They hypothesized that a search engine that analyzed the relationships between websites would produce better ranking of results than existing techniques, which ranked results according to the number of times the search term appeared on a page. Their search engine was originally nicknamed "BackRub" because the system checked backlinks to estimate the importance of a site.

Convinced that the pages with the most links to them from other highly relevant web pages must be the most relevant pages associated with the search, Page and Brin tested their thesis as part of their studies, and laid the foundation for their search engine. The domain google.com was registered on 15 September 1997, and the company was incorporated as Google Inc. on 4 September 1998 at a friend's garage in Menlo Park, California. The total initial investment raised for the new company amounted to almost US$1.1 million.

In March 1999, the company moved into offices in Palo Alto, home to several other noted Silicon Valley technology startups. After quickly outgrowing two other sites, the company leased a complex of buildings in Mountain View at 1600 Amphitheatre Parkway from Silicon Graphics (SGI) in 2003. The company has remained at this location ever since, and the complex has since come to be known as the Googleplex. In 2006, Google bought the property from SGI for US$319 million.

The Google search engine attracted a loyal following among the growing number of Internet users, who liked its simple design and useful results. In 2000, Google began selling advertisements associated with search keywords. The ads were text-based to maintain an uncluttered page design and to maximize page loading speed. Keywords were sold based on a combination of price bid and clickthroughs, with bidding starting at US$.05 per click. This model of selling keyword advertising was pioneered by Goto.com (later renamed Overture Services, before being acquired by Yahoo! and rebranded as Yahoo! Search Marketing). Goto.com was an Idealab spin off created by Bill Gross, and was the first company to successfully provide a pay-for-placement search service. Overture Services later sued Google over alleged infringements of Overture's pay-per-click and bidding patents by Google's AdWords service. The case was settled out of court, with Google agreeing to issue shares of common stock to Yahoo! in exchange for a perpetual license. Thus, while many of its dot-com rivals failed in the new Internet marketplace, Google quietly rose in stature while generating revenue.

Google has created services and tools for the general public and business environment alike; including Web applications, advertising networks and solutions for businesses.

What are some of the money earners for this big company? They are:

How to become rich: Advertising

99% of Google's revenue is derived from its advertising programs. For the 2006 fiscal year, the company reported US$10.492 billion in total advertising revenues and only US$112 million in licensing and other revenues. Google is able to precisely track users' interests across affiliated sites using DoubleClick technology and Google Analytics. Google's advertisements carry a lower price tag when their human ad-rating team working around the world believes the ads improve the company's user experience. Google AdWords allows Web advertisers to display advertisements in Google's search results and the Google Content Network, through either a cost-per-click or cost-per-view scheme. Google AdSense website owners can also display adverts on their own site, and earn money every time ads are clicked.

How to become rich: Software

The Google web search engine is the company's most popular service. As of August 2007, Google is the most used search engine on the web with a 53.6% market share, ahead of Yahoo! (19.9%) and Live Search (12.9%). Google indexes billions of Web pages, so that users can search for the information they desire, through the use of keywords and operators, although at any given time it will only return a maximum of 1,000 results for any specific search query. Google has also employed the Web Search technology into other search services, including Image Search, Google News, the price comparison site Google Product Search, the interactive Usenet archive Google Groups, Google Maps, and more.

In 2004, Google launched its own free web-based e-mail service, known as Gmail. Gmail features conversation view, spam-filtering technology, capability to use Google technology to search e-mail. The service generates revenue by displaying advertisements and links from the AdWords service that are tailored to the choice of the user and/or content of the e-mail messages displayed on screen.

In early 2006, the company launched Google Video, which not only allows users to search and view freely available videos but also offers users and media publishers the ability to publish their content, including television shows on CBS, NBA basketball games, and music videos.

Google has also developed several desktop applications, including Google Desktop, Picasa, SketchUp and Google Earth, an interactive mapping program powered by satellite and aerial imagery that covers the vast majority of the planet. Google Earth is generally considered to be remarkably accurate and extremely detailed. Many major cities have such detailed images that one can zoom in close enough to see vehicles and pedestrians clearly. Consequently, there have been some concerns about national security implications; contention is that the software can be used to pinpoint with near-precision accuracy the physical location of critical infrastructure, commercial and residential buildings, bases, government agencies, and so on. However, the satellite images are not necessarily frequently updated, and all of them are available at no charge through other products and even government sources; the software simply makes accessing the information easier. A number of Indian state governments have raised concerns about the security risks posed by geographic details provided by Google Earth's satellite imaging.

Google has promoted their products in various ways. In London, Google Space was set-up in Heathrow Airport, showcasing several products, including Gmail, Google Earth and Picasa. Also, a similar page was launched for American college students, under the name College Life, Powered by Google.

How to become rich: The founders:

Larry Page is the son of the late Dr. Carl Victor Page, a professor of computer science and artificial intelligence at Michigan State University and one of the University of Michigan's first computer science Ph.D graduates, and Gloria Page, a computer programming teacher at Michigan State University. He is also the brother of Carl Victor Page, Jr. a co-founder of eGroups, later sold to Yahoo! for approximately half a billion dollars. Page attended a Montessori school in Lansing, Michigan, and graduated from East Lansing High School. Page holds a Bachelor of Science degree in computer engineering from the University of Michigan with honors and a Masters degree in Computer Science from Stanford University. At University of Michigan, Page was a member of the solar car team and served as the president of the HKN. After enrolling for a Ph.D. program in computer science at Stanford University, Page was in search for a dissertation theme and decided to explore the mathematical properties of the World Wide Web, understanding its link structure as a huge graph. His supervisor Terry Winograd agreed and Page focused on the problem of finding out which web pages link to a given page, considering the number and nature of such backlinks to be valuable information about that page. In his research project, nicknamed "BackRub," he was soon joined by Sergey Brin, a fellow Stanford Ph.D. student and close friend, whom he had first met in the summer of 1995 in a group of potential new students which Brin had volunteered to show around the campus. To convert the backlink data gathered by BackRub's web crawler into a measure of importance for a given web page, Brin and Page developed the PageRank algorithm, and realized that it could be used to build a search engine far superior to existing ones. In August 1996 the initial version of Google was made available, still on the Stanford Web site.In 1998, Brin and Page founded Google, Inc. Page ran Google as co-president with Brin until 2001 when they hired Eric Schmidt to become Chairman and CEO of Google. According to the 2006 edition of Forbes, Page had an estimated net worth of $18.5 Billion, placing him at rank 26 on Forbes's list of the richest persons in the world, together with Brin.

Sergei Brin was born in Moscow, in the Soviet Union to a Jewish family. According to Google lore, Page and Brin "were not terribly fond of each other when they first met as Stanford University graduate students in computer science in 1995." They soon found a common interest: retrieving relevant information from large data sets. Together, the pair authored what is widely considered their seminal contribution, a paper entitled "The Anatomy of a Large-Scale Hypertextual Web Search Engine." The paper has since gone on to become the tenth-most accessed scientific paper at Stanford University. Brin has appeared on television shows and many documentaries, including Charlie Rose, CNBC, and CNN. In 2004, he and Larry Page were named "Persons of the Week" by ABC World News Tonight. In January 2005 Sergey Brin was nominated to be one of the World Economic Forum's "Young Global Leaders." In 2007, Brin was cited by PC World as #1 on a list of the "50 most important people on the Web," along with Larry Page and Google CEO Eric Schmidt. He is also an investor in Tesla Motors, which is developing the Tesla Roadster, a 250-mile range battery electric vehicle.

You've been reading ideas on how to become rich from Google, and the founders Page and Brin. What ideas have you learnt on how to become rich and how to become a billionaire? These are the central questions that you may wish to ask yourself and remind yourself of.

More to come in future posts here on my ideas blog, where I explore various ideas on how to become rich, and in this series, how to become a billionaire in particular. Thanks for reading and cheers!

Ideas on how to become rich!

Ideas on how to become rich - How to become a billionaire, part 3

2008-12-05T23:23:00.001-08:00

Ideas on how to become rich - How to become a billionaire, part 3

Case study of Wal-Mart - also known as Walmart

and

Case study of entrepreneur and billionaire Sam Walton

A brief history of Walmart and its founder, entrepreneur Sam Walton, current as at 2007/2008, thanks to Wikipedia as well as newspaper reports:

Sam Walton, a businessman/entrepreneur from Arkansas, began his retail career when he started work on June 3, 1940, at a J.C. Penney store in Des Moines, Iowa where he remained for 18 months. In 1945, he met Butler Brothers, a regional retailer that owned a chain of stores called Ben Franklin and that offered him one in Newport, Arkansas.

Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, the intrepid entrepreneur opened a new Ben Franklin franchise in Bentonville, Arkansas, but called it "Walton's Five and Dime." There this powerful entrepreneur achieved higher sales volume by marking up slightly less than most competitors.

On July 2, 1962, Walton opened the first Wal-Mart Discount City store. Within five years, the company expanded to 24 stores across Arkansas and reached $12.6 million in sales. In 1968, it opened its first stores outside Arkansas.

The company was incorporated as Wal-Mart Stores, Inc. on October 31, 1969. In 1970, it opened its home office and first distribution centre in Bentonville, Arkansas. It had 38 stores operating with 1,500 employees and sales of $44.2 million. It began trading stock as a publicly-held company on October 1, 1972, and was soon listed on the New York Stock Exchange. The first stock split occurred in May 1971 at a market price of $47. By this time, Wal-Mart was operating in five states: Arkansas, Kansas, Louisiana, Missouri, and Oklahoma; it entered Tennessee in 1973 and Kentucky and Mississippi in 1974.

During the 1980s, Wal-Mart continued to grow rapidly, and by its 25th anniversary in 1987 there were 1,198 stores with sales of $15.9 billion and 200,000 associates. In 1988, Sam Walton stepped down as CEO and was replaced by David Glass. Walton remained as Chairman of the Board, and the company also rearranged key personnel in senior positions.

Sam Walton may have stepped down, but Wal-Mart went on and on. Apparently from strength to strength, making more and more money and exapanding and expanding!

In 1988, the first Wal-Mart Supercenter opened in Washington, Missouri. Thanks to its superstores, it surpassed Toys "R" Us in toy sales in the late 1990s. The company also opened overseas stores, entering South America in 1995 with stores in Argentina and Brazil; and Europe in 1999, buying ASDA in the UK for $10 billion.

In 1998, Wal-Mart entered the grocery business, introducing the "Neighbourhood Market" concept with three stores in Arkansas. In 2000, H. Lee Scott became President and CEO, and Wal-Mart's sales increased to $165 billion. In 2002, it was listed for the first time as America's largest corporation on the Fortune 500 list.

In 2005, Wal-Mart had $312.4 billion in sales, more than 6,200 facilities around the world—including 3,800 stores in the United States and 2,800 elsewhere, employing more than 1.6 million "associates" worldwide.

In October 2005, Wal-Mart announced it would implement several environmental measures to increase energy efficiency. The primary goals included spending $500 million a year to increase fuel efficiency in Wal-Mart’s truck fleet by 25% over three years and double it within ten, reduce greenhouse gas emissions by 20% in seven years, reduce energy use at stores by 30%, and cut solid waste from U.S. stores and Sam’s Clubs by 25% in three years. CEO Lee Scott said that Wal-Mart's goal was to be a "good steward for the environment" and ultimately use only renewable energy sources and produce zero waste. Despite much criticism of its environmental record, Wal-Mart took a few steps in a positive direction, which included becoming the biggest seller of organic milk and the biggest buyer of organic cotton in the world, as well as reducing packaging and energy costs. Wal-Mart also spent nearly a year working with outside consultants to discover the company's total environmental impact and find where they could improve. They discovered, for example, that by eliminating excess packaging on their toy line Kid Connection, they could save $2.4 million a year in shipping costs, 3,800 trees, and a million barrels of oil.

In March 2006, Wal-Mart sought to appeal to a more affluent demographic. The company launched a new supercenter concept in Plano, Texas, intended to compete against stores seen as more upscale and appealing, such as Target. The new store has wood floors, wider aisles, a sushi bar, a coffee/sandwich shop with free Wi-Fi Internet access, and more expensive beers, wines, electronics, and other goods. The exterior has a green background behind the Wal-Mart letters, similar to Wal-Mart Neighborhood Markets, instead of the blue previously used at supercenters.

This brief history of Walmart already teaches us key lessons on how to become billionaires and how to become rich. Look at the key steps that Sam Walton and his future entrepreneurial successors did (the key points of the historical case study that I made out in bold, because those were the key learning points and key learning ideas of how to become a billionaire and to build a billion-dollar company):

Sam Walton achieved higher sales volume by marking up slightly less than most of his competitors - simple but effective initial idea

Walmart began trading stock as a publicly-held company on October 1, 1972, and was soon listed on the New York Stock Exchange - listing the company was one of the key steps on the way to financial success

Wal-Mart continued to grow rapidly and continued to expand, expand, expand - this was one of the critical factors in making the company billions of dollars

The company also opened overseas stores - therefore it is clear that overseas expansion and internationalisation or international trade is key and very important in building a billion dollar enterprise

Wal-Mart announced it would implement several environmental measures to increase energy efficiency - that was both cost effective and environmentally minded - and thus killed two birds with one stone, metaphorically, on the road to success and billions of dollars, to use an extended mixed metaphor

Wal-Mart sought to appeal to a more affluent demographic - one of the key ideas of becoming rich is to appeal to people who have the money, who make money and are willing to spend money - this was not a key step in the building of a billion dollar business, because the business was already successful appealing to a less wealthy crowd from the beginning though - nonetheless, even though Sam Walton made his billions and became a billlionaire but appealing to the masses and selling at low margins, it is undeniable that appealing to people who possess the money is important in becoming rich.

This case study you have been reading here on my ideas site was on Sam Walton, and Wal-Mart/ Walmart. Thanks for reading this case study on how to become a billionaire, and there will be other posts to come on this topic. Stay here, thank you very much! Cheers.

Ideas on how to become rich!

Ideas on how to become rich - How to become a billionaire, part 2

2008-11-30T01:38:00.000-08:00

Ideas on how to become rich - How to become a billionaire, part 2

Welcome to the series here on my site that explores how to become a billionaire. In the previous post here on how to become a billionaire, I listed out my methodology and exploration method of this very interesting topic, and here in this post I will be giving the general lessons that we can learn from billionaires and how we can follow these ideas. In other words, this is a very general summary of how to become a billionaire and become very rich.

In the previous post, I explained the methodology, in future posts I shall show various examples of companies that made their owners billionaires and explore those ideas. In this post, generalisms - to the extent that generalisms can be true, since they differ from case to case. Here's a summary of "how to become a billionaire"... ...

Summary and general points on how to become rich the way billionaires made their money

1. Usually the starting point is a great idea or a great concept, and usually that has nothing to do with making money initially, but providing a service or some product that is needed or will soon be needed. This means that sometimes the starting point to becoming rich is a great idea or a great concept, and that idea or concept translates into money much later.

2. If not a great idea, then it usually turns out to be that the person who eventually became very rich started working very hard and very young. Most millionaires and some billionaires became rich this way, working their way up the corporate ladder. This seems to be a very common way of becoming a billionaire eventually anyways. Getting promoted and getting various higher paying positions and eventually the CEO position is one key way of becoming a billionaire.

3. The company gets listed on the stock exchange. This is the one single point that we will take as given, for reasons explained in my previous post.

The learning point from point number 3 is that "how to become a billionaire" can be expressed as "get your company listed and hope that it becomes very big and expands, along with your paycheck and along with your stocks".

That's why the next few posts will deal with looking at various case studies of billionaires and their companies, and mostly focuses on the companies that make the billionaires possible. In other words, the businesses. The various businesses that took different routes, but ended up rich and prosperous and made their shareholders rich and in some cases billionaires.

4. The company expands by wise strategic moves and by excellent leadership - or in some cases luck and fortune. This differs from company to company and in some cases mergers and acquisitions are the order of the day, whereas in some other cases some companies do not merge with other companies but instead expand their range and power via products and reach. Some conduct international trade, and some discovered the internet, and some make their money BECAUSE of the internet. More on that interesting and very obvious story later.

5. The billionaires in question become very rich because of their control of a great company that makes a lot of money.

That's it. It is simple but true.

This also shows you that the best way to become a billionaire or to become fabulously rich is to have stocks. Either you have a great idea that turns into a money making company that is listed and you have lots of company stock as well as ownership of a such a money making and great business ; or you have to have wise investment strategies that enable you to buy other people's companies in which those great ideas make money for their shareholders (including yourself). Therefore, as many pundits have concluded, and it is rather clear to me, ownership of stocks, and in particular well performing stocks, is the key here to becoming very rich. If you own the company, well and good and you have the potential to become a billionaire. If you don't own the company, then you have to buy little parts of it, but you can still become very rich, so there aren't any worries there if you are astute, well researched and clever.

Now you have it - the secrets of becoming a billionaire and very wealthy. It all seems very simple in theory.

The devil of course is in the details, and more important company analysis to come here in future posts! Stay tuned here for more, cheers, and thanks for reading.

Note and disclaimer:

Note here that my analyses in both the previous post and this one both do not cover:

people who became billionaires by inheritance,
lawsuits,
marrying a rich person who already happened to be one,
foundations that already possess such wealth,
national leaders/ sovereigns/ kings, among other wealthy people.

If you want to become a billionaire via those means, then it might work for you. This site explores ideas of how to become rich and these ideas in the posts to come are workable and tried and tested ideas rather than those that depend on fortune - marrying rich, being born rich, and the like. Thanks for the understanding.

Ideas on how to become rich

Ideas on how to become rich - How to become a billionaire, part 1

2008-11-27T19:48:00.000-08:00

Ideas on how to become rich - How to become a billionaire, part 1

Welcome to this series on my ideas on how to become rich site. This series on my site is about how to become a billionaire, as promised earlier. I have done research into this field and will simplify my analysis and share some ideas about this topic. Then after this series, I should be writing more about investment and finance as usual, and probably have a series on how to make money on the stock market by borrowing ideas from fund manager Peter Lynch and his book "One Up on Wall Street", but that's all in the works and in the future. This series here is about "how to become a billionaire".

First up, my research methodology for researching on this important topic: regarding how to become a billionaire, the most obvious way seemed to me to have a look at Forbes list of billionaires and see how they made their money, where they got their sources on income and the like. And it shouldn't strike you as new or special or something innovative that all of them made their money in some field or other, and they are all billionaires because their companies are listed. Therefore, the question "how to become a billionaire" can be easily answered as "get listed on the stock market and do well there" (and with tongue in cheek, of course get listed on the stock market and do well there but not in a recession - get listed and make money when the stock market is doing well!). Clearly the direct correlation is between being a billionaire and having lots of stock, either in your own company or in Warren Buffett's case, in other companies. Thus this is not the answer we are looking for. We can definitely become billionaires if we have stocks in the right company and/or we own companies that are very successful, and we have stocks in those companies.

The focus will be on the fields that the billionaires are working in, what they do, and how they earn their money - because ultimately the stock price follows their companies' incomes and revenues. This is the main focus of "how to become a billionaire" - the ways in which the rich and famous earn their money, and how their companies made them rich.

Therefore the next step was for me to take a list of billionaires that I wanted to emulate and then observed how they made their money, and that was the basis of my case studies. However, in the case studies, those were rich men, and with the exceptions of Trump and Buffett, none of the others were billionaires, although they were millionaires. To summarise, in this series I correct my former case studies and now make instead a summary and a collation of various billionaires, but not on the billionaires themselves but on the way in which they made their money - in other words, their companies and what they did.

In summary: I will be writing on "how to become a billionaire". I looked at the list of billionaires and selected a few to research on. The focus was not on their stock price but instead on the ways and ideas in which they made their money and how their companies developed.

Some of the richest men and women got their money through court cases, lawsuits, and via inheritance. Those will not be considered here in my ideas site.

The billionaires that I looked at were:

Sam Walton of Wal Mart
Brin and Page of Google
(I got all their information off the internet, and as to the validity, well, I consulted Wikipedia... of all things)
Sergei Popov
Roman Abramovich - you all know this guy if you watch football, and by football I of course am referring to the English Premier League football!
Warren Buffett
Donald Trump

as well as
Jack Welch
Henry Ford
Thomas Edison - believe it or not!
among others

Therefore the main companies that we will be looking at are:

Wal Mart
Google
Berkshire Hathaway
Ford
General Motors
General Electric

We will learn how to become a billionaire from these companies and their founders, and basically this series is a case study series not of people and not of rich people, but superrich people and superrich and huge companies. In these times of 2008 and rapid economic change and problems in the international economy, it is important to learn what is timeless and what does not change - namely the skills of how to make money, the ideas behind the companies that make money, and the history of how some companies made it big and what we can learn from that. More to come here on my site on Ideas on how to become rich! Stay tuned, thanks for reading.

Ideas on how to become rich!

Ideas on how to become rich - Some Great Ideas by Jack Welch

2008-11-20T00:00:00.001-08:00

Ideas on how to become rich - Some Great Ideas by Jack Welch

I have been busy with my Economics examinations and have not had much time to blog, but I received a very nice email from someone who had some interesting tips and ideas on wealth and money making, because she read a book by Jack Welch. Thus my post for today is "Some Great Ideas by Jack Welch" on how to become rich and successful. A short introduction to Jack Welch in case you aren't sure who he is or in case you wish to have a reminder:

John Francis Jack Welch was former Chairman and CEO of General Electric and is incredibly rich and wealthy, having successfully managed GE from 1981 to 2001. He is known for his uncanny business acumen and his wise business strategies that have done very well.

Here is the contribution by Sally, and here is what she wrote to me (edited):

Some great ideas by Jack Welch

"I am in SIM reading this book by Jack Welch and these are some of the tips which I thought I would like to share with you:

a) invest in people
people matter in our lives, value good friends and people

b) dominate your market or get out
This is like what you said to me and sounds exactly like the advice you gave to me! This is a good idea.

c) never sit still - we have to be relentless and restless because sitting on our butts, we cannot achieve anything great.... and the ship can only sail when it leaves the port of safety. This is a good idea as well!

d) one should also think service - according to Welch, one should also know how to provide good service and in particular better service, better than someone else... because people remember your service after the product is gone and waned.

e) forget the past and move on to the future -- what is gone is gone, the most important thing is to harness energy for the future because that is where we can embrace the new and look forward to new things and new money making opportunities and ideas.

f) learn and lead - life is about learning everyday, and life is also about leadership. We should learn new things every day and learn how to be leaders!

g) no bull - do not bullshit , be honest and straightforward - this is typical Jack Welch!

h) kill bureaucracy

i) stick around - be persevering and persistent, for money making opportunities and new ideas are always around the corner, and finally

j) manage the corner store - look out for things that seem insignificant and keep track of what is going on... I realise that I have to make sure that I am keeping abreast of what is going on around me. That's all I have to share regarding Jack Welch and his great ideas.

All these tips from Jack Welch of GE"

Thanks to Sally for her invaluable contribution to my ideas on how to become rich site! Thanks for reading and more important posts here on finance, investment and money making ideas to come soon. Thanks and cheers!

Ideas on how to become rich

Special series - how to survive a recession, part 4

2008-10-27T10:58:00.001-07:00

Special series - how to survive a recession, part 4

I have written several articles on how to survive a recession here on my ideas on how to become rich site. You can navigate to the articles on how to survive a recession here:

Special series - how to survive a recession, part 1
Special series - how to survive a recession, part 2
Special series - how to survive a recession, part 3

In this post I shall be dealing with ideas on how to survive a recession if you happen to be hard hit by a recession. The first and most important idea is that prevention is always better than cure, and that sound financial planning and sound savings plans should have been the most important thing before any recession strikes, or for that matter, before any depression strikes (where a depression is basically a worse and prolonged version of a recession).

The question is: how do you survive a recession if you happen to be hard hit by one? Here are some practical ideas on how to survive a recession if you happen to be hard hit by one... good luck!

1. Education is important. Get more education and more skills.

There are many types of education, some professional and some academic. Now is the chance for you to pursue higher education or some form of learning where you can acquire new skills and new abilities that can be applied to finding and maintaining a job. The key fact is that in the 21st century, earning money will be tied to knowing skills and knowledge that can help you make money and help you work better. Education is more important than ever before to help you make money, and people who skip school or have not attained education are more likely to suffer from structural unemployment. That is not a palatable fact, but it is true that to earn money in the new knowledge based economy that is globalised, knowledge, education and skills are key critical factors to earning money and making a living.

With respect to financial education, sites like mine provide ideas, and you can actually get financial certification that will put you in good stead when the economy recovers. Try an MBA, or an accountancy degree, or some other financial certification such as an ACCA, CFA, CPA and the like, as these financial certifications will be very useful to you, job-wise as well as financial knowledge-wise. Prevention is always better than cure, and therefore not getting into a bad situation in a recession is always a good idea.

2. Adjust your expectations, in terms of job scope, salary and wages. Try out for other jobs, maybe even lower paying ones.

Usually recessions lead to massive unemployment because people get laid off. The thing is that if you happen to lose your job, that is not the end of the world, because you can find a new job - if you are willing to take the hit on the income and willing to work longer hours for lower wages. The question is how to survive a recession, remember? Hard work, lowered and adjusted expectations, and the willingness to adapt to the changing economic conditions - all are the necessary things to do.

3. The most important thing of all that you must do in a recession - tighten your belt!

The most important thing to do during a recession is to make the necessary reductions in expenditure, which basically means that you have to spend less. Spend less, spend less! You can spend more when the economy recovers and when you have a high paying job. The reality is that sometimes people are forced to do things out of necessity, and surely a recession is one of the biggest factors forcing people to spend less money, which they should during a recession.

Some financial advisors have even suggested cutting up credit cards and downsizing or even moving to smaller homes and selling home objects, although that might be very extremist. Just reduce expenditure, and there should be no need to go to such extreme lengths. If you need the money, however, then there might be no choice and you would have to bite the proverbial (financial) bullet.

The basic key and basic strategy for surviving a recession is therefore to reduce costs and try to increase income, if one has been laid off and has lost a high paying job. Maxim to live by during a recession - attempt to reduce costs and maximise income!

In the final analysis, more research is needed. My website helps people by giving financial education, investment schools of thought and their analysis, and investment knowledge, as well as ideas on various ways of making lots of money and becoming rich. I have come to the conclusion of the series on how to survive a recession, because ultimately this is not the focus of my site, and my site is basically about how to make money and how to become rich, and is mainly about ideas and education in investment, financial education and other such stuff. Recessions are not my cup of tea, because as I've mentioned prevention is better than cure.

Thanks for reading, take care, and all the best. More to come on my website on finance and making money so as to become rich! Thanks.

Ideas on how to become rich!

Special series - how to survive a recession, part 3

2008-10-16T03:18:00.001-07:00

Special series - how to survive a recession, part 3

Welcome back to my series on how to survive a recession here on my Ideas on how to become rich site. In the first post here on my site I wrote about the orgins of the 2008 financial crisis, which can be seen to have had long rooted causes and goes back many years. In the second post here on my site I wrote about the various past depressions (a depression is a longer and more series recession) and also on several key terms and key terminology for the current economic and financial crisis.

You can conveniently and quickly view the articles that I wrote earlier quickly using these convenient links here:

Special series - how to survive a recession, part 1
Special series - how to survive a recession, part 2

In this post, I will be writing about the various assets that you can put your money in - that is to say, while the world/ your local economy/ your regional economy is in recession, what should you do with your money? Basically I am asking the question "how do I survive a recession" and answering it with another further and related question: "where do I put my money during a recession and how do I survive it without losing any more of my funds?"

From the Straits Times, here are the 10 safest to most dangerous investments you can make - financial instruments that you may want to consider to take you through a recession. Note that I do not deal with psychology and with how to cope with losing money and psychological aspects of recessions and depressions, with emotions and all that. My goal is far more limited and has to do with looking at financial outcomes, financial reasons, financial causes of recessions and what I can do with money, what I can do with other people's money, what I can do while the world is reeling from the 2008 crisis and other questions of this nature. That is the fundamental reason why this article on how to survive a recession basically deals with giving 10 financial instruments/ means and investments for you to make a choice. Where should you put your money? That is the question. In future posts here on this site, the special series will also deal with (theoretically) things you can do to cope and survive a recession if you have been hard hit.

Safest to riskiest investments/ financial devices etc

1. Money
2. Bank deposits
3. Money market funds
4. Bonds
5. Unit trusts
6. Equities/ Shares
7. Complex structured products
8. Futures
9. Forex
10. Hedge funds

(Straits Times, 28th Sep 2008)

Safest to riskiest investments/ financial devices/ holdings

1. Money

This is the most liquid form to hold, and in a recession might be one of the best ideas since stock markets go down in a recession. This form is liquid and can be easily converted from asset to asset, and can tide you over rainy days. However, do bear in mind that money diminshes in value due to inflation and also there is no way that you can make money from money without interest or investment. Thus, money is liquid and useful in a recession but loses its value to inflation and does not earn you a return.

2. Bank deposits

This gives you peace of mind as well as some minute, low interest rate, so bank deposits basically are good for you in a recession. In Singapore as well as in many countries in the world, your bank deposits should be guaranteed, at least up to a certain sum of money. However, if there is a run on the banks in a recession, then you stand to lose your money - or part of your money if the money is not entirely guaranteed. Also, it is possible that inflation may be higher than the little bank deposit interest rate. So while in a recession bank deposits and cash are very safe and very liquid, they also do have their cons, but in a recession you might be safer holding these two very safe forms of money.

3. Money market funds

These rank a bit riskier than money and deposits in a recession, and while these are basically stable and low risk investments, there may be a risk of default when borrowers do not pay back the loans owed and hence the money market funds which lent those borrowers money might lose some money. A money market fund is basically an investment into short term instruments and debt securities, and sometimes government bonds. You can place your money in money market funds for some time and these should be overall quite safe in a recession.

4. Bonds

These are rather safe investments - bonds are basically fixed income instruments where governments and companies raise funds by borrowing money. These are basically debts.

The returns may not keep place with inflation in a recession, and also there is the risk of default, so do stand warned. This is more risky than money market funds which are diversified.

5. Unit trusts

Your investments will be managed by professionals, you can get high returns sometimes, there is diversification; however, in a recession, these are many risks and sometimes you may not get your capital back. Unit trusts (or mutual funds) are only good for new investors or people who have little knowledge of the stock market. In good times, a lot of money can be made, but in a recession lots of money can be lost and your capital and principal may not make it back.

6. Equities/ Shares

If you are Warren Buffett, or for that matter any savvy investor and wise man, this might be a very good option for you, in a recession or not. However, in a recession this may not necessarily be a very good idea unless you have an appetite for risk and you really know what you are doing.

7. Complex structured products

High risk products which give you potentially high returns, but they have complex underlying mechanisms which may not be fully understood by investors - therefore a very risky investment to place a lot of money in a recession.

8. Futures

There are low transaction costs, low outlay with the potential to make a lot of money and become rich, but just as there is potential in making a lot of money, there is a possibility of losing a lot of money as well. Derivatives are usually only for professionals or very savvy and intelligent investors, and even then, in a recession these are very unsafe.

9. Forex

You can generate and make a lot of money in good times and in also still make money in bad times with forex trading and there are many pros and cons discussed here: visit these links here to see what I have written on forex here (a summary page to access links to forex articles here on my finance and investment site).

However there is a need for intensive research, this may be rather dangerous, constant monitoring is needed, and forex is usually only for pros and savvy investors with an appetite for risk.

10. Hedge funds

You can make a lot of money here, but you can also lose a lot of money. You depend on the fund manager here and then again, in a recession this might not be a very good idea. This according to the Singapore news is the worst and most risky investment in a recession, and I must say that I agree. Only investors with a lot of money to risk should do this in a recession, and there must be a ability to wait for the economy to recover. This is the most risky investment when compared to the rest above.

That was a lot of analysis and it deserves a close attention and serious reading. Hope that gave you a better idea of what to expect in terms of investment and money during a recession. More to come on my site on this special series on how to survive a recession!

Thanks for reading, cheers.

Ideas on how to become rich!

Special series - how to survive a recession, part 2

2008-10-12T00:02:00.000-07:00

Special series - how to survive a recession, part 2

Financial education here on Ideas on how to become rich!

This is my second instalment in my series on how to survive a recession, or more accurately, what can we learn from a recession and what can we do during one so that we can make money or prevent the loss of money. I do the research and present it on my site so that you can learn and benefit from financial education and so that your investments will be well informed such that you make money whenever you can and avoid losing money if possible. Here are some information and word definitions related to recessions - but in particular, these are about the great stock market crashes of the last 100 years and the words associated with the latest stock market crash in 2008.

(All investment/ stock market/ news information from the Straits Times in Singapore)

First and foremost, a recession is a period of falling economic growth, and a depression is a period of prolonged and powerful recession.

These were the great stock market crashes of the last 100 years:

1929 Great depression - which lasted until the Second World War

1973 The oil shock - which had to do with OPEC, the Yom Kippur War and much more which I will discuss in future posts in future here on my site

1987 Black Monday - a fall in the stock market when confidence plummeted

1997 the Asian Financial Crisis - the crisis caused by currency speculation, and spooked investors, and this was the particular stock market crisis I said earlier that caused American investors to criticise Asian markets - and Asians were even criticised about their political systems (but the problem is that there should be blaming here or there, because all economic systems have their own inherent pros and cons, their own inherent good parts and bad parts, financially speaking)

2001: 9/11 and the Dot Com bubble bursting - we all know this one because it was both a political crisis and also an economic crisis

2008 The current Credit Crisis which will surely go down in history - so in a sense here we are, and here I am, writing about future economic history.

The central question of "how to survive a recession" is rather simple to answer, if one takes a sufficiently long term view - all the recessions mentioned above and all the stock market crises ultimately recovered, because the business cycle operates in such a way that there will ultimately be recovery.

This second part relates to terms and words that you need to know if you wish to understand the global crisis further.

securitisation - banks securitise loans by making them into "investments" which are then sold to third parties, rather than the usual practice of banks holding mortgages

mortgage backed securities - the basis of the 2008 financial crisis, these repackaged home loans are the IOUs that third party investors bought (see earlier term for a better financial understanding)

credit default swaps - these are basically insurance policies that companies and investors bought to protect themselves from the default of the securities - the buyers of these swaps make regular payments to a swap seller, usually an insurer, in exchange for a payout when there is a default (the economic problem with AIG becomes very clear when you realise that it was such companies like AIG selling credit default swaps from banks and other investment banks so that the risks would be lower for those investment banks - but all the risks went to AIG instead)

collateralised debt obligations (CDOs/ or toxic debt) - these are like mortgaged backed securities, but instead of mortgages, these are made up of differnt types of assets, including commercial property and bons (CDOs and mortgage backed securities are some of the instruments that people call toxic debt, because of obvious reasons)

leveraging/ gearing (in Singapore we say gearing instead of leveraging, but the two terms are synonymous) - basically this is using OPM (other people's money) - the degree to which a company or an investor is using borrowed money, and the problem with gearing is that, while it is very useful on the upswing and can make you a lot of money, the converse is also true that it is not useful on the downswing and can lose you a lot of money since it works the other way as well

deleveraging - what is happening now (in 2008), as banks and companies have to put up more collateral and reduce their debt levels by selling their assets and raising capital

libor/ silbor - the london interbank overnight rate and the singapore interbank overnight rate respectively (basically, the rates that banks charge when they lend money to one another, be it in London or Singapore) - the process works the same way in the USA, in a similar manner

treasuries - treasury bonds, notes and bills - these are government bonds issued by the USA Treasury Department. These are seen as the ultimate safe haven investments because they are denominated in US dollars, backed by the US government and are very stable

derivatives - these are a class of investments that derive (hence derivatives) their value from another underlying asset, such as company stocks, allowing investors to profit from movements in the stock price without owning the stock - basically investors can take bets on anything from interest rates to stock prices

short selling - when an investor sells a financial instrument that he doesn't own, in the hope that he can buy it back later at a lower price and earning a profit - short sellers usually borrow stock to make good their promises - currently short selling has been banned in many countries because they are exacerbating the financial crisis by making it worse

hedge funds - these are private, barely regulated investment funds that manage assets using high risk high return strategies, and they often leverage / gear to get bigger returns, and they usually even engage in short selling - doing anything to make money.

In summary, here I've shown you a list of the several stock market crashes and important dates that you need to know in your financial education, and also you now know more words and ideas associated with the current stock market crashes worldwide and the recession worldwide, in 2008. One key idea is still that prevention is better than cure, and the thing about most of the financial instruments that have caused problems is that to prevent yourself from losing money, you should always be aware of the pitfalls of what you buy. Simply and beautifully put: "Rule No. 1: Don't lose money. Rule No. 2: Don't forget rule no. 1." Knowledge and more research is key and very important to surviving a recession and a stock market crash.

In my next post, I will share ideas on what to do with your cash and your money if you are afraid of the current economic crisis, by showing you options in which to place your money. The current recession caused by the financial crisis worldwide has not prevented Warren Buffett from investing in the stock market, because to him the prices of most companies has gone down and now he can acquire many good companies at cheap prices.

Ideas on how to become rich!

Special series - how to survive a recession, part 1

2008-10-11T23:25:00.000-07:00

Special series on ideas on how to become rich - how to survive a recession, part 1

This is a special series only for this month on my Ideas on how to become rich website. The thing is that my site focuses on ideas on how to make money, case studies on rich people and their ideas, investment ideas and investment knowledge, education with respect to finance, business and entrepreneurship, and the like. Yet there has been no mention of a recession, so I've decided that it's high time that I wrote about recessions and how to survive them.

Actually there are many caveats that I have to state categorically first before delving into the topic on how to survive a recession. The first is that there are many ways of surviving a recession and that there is no one single way of surviving a recession. The second is that sometimes, it is hard to say whether one can or cannot survive a recession, because a recession sometimes makes it hard to know whether or not you will be the one affected when all along you've been fine in your job or in your career. The thing is that the title of the post "how to survive a recession" is actually wrong, because the idea is still that prevention is better than cure. Fourth, the post here on "how to survive a recession" is actually better labelled "what to do with your money during a recession, and in particular this particular recession that the world is facing". Having stated all those caveats, this post and the next post is a foray into the world situation standing as at October 2008, and the collapse of world financial markets and financial institutions in the USA.

The world is in recession at the moment due to the global financial crisis that started in the USA. In my opinion this still highlights the importance of a financial education and the usefulness of blogs like mine where people learn about investment, business, money, financial education and finances in general. How did the world financial crisis of 2008 come about? Here is a summary for those who need a look into the crisis.

In the USA, prior to 2008, there had always been a double deficit of the budget deficit and the current account deficit in the balance of payments. This is the long term factor. The more intermediate factor was the subprime crisis in the USA, which basically worked as follows: many people in the USA borrowed money to buy houses, and normally the mortgages would be held by US banks. However, the thing is that some of the loans were made at subprime (hence "sub and prime- subprime") rates to borrowers who really had no real long term ability to pay back. What the banks did was that they decided to finance all the risks by securitising, which is a fancy way of saying that they passed the risks all to other bank customers - the US banks made the loans that they made out to others into securities and other bank financial instruments, and sold them as "investments" to customers. This made the banks safer in the sense that they did not hold the risks - their customers did. Did I also mention, that property prices went down even though the customers expected prices to continue rising? In economics, after a boom usually comes a bust - after a bull market, there usually comes along a bear market, and that is precisely what happened. People borrowed money to buy houses that they could not afford and the prices of those houses went down, while other people made investments into houses that people could not afford. A recipe for disaster, but that was only the intermediate factor.

The immediate trigger for the crisis, at least in my own personal opinion, and I am an economist by academic training, was the collapse of the Lehman brothers which was not supported (rather, bailed out of their liquidity problems) by the US government. In a nutshell, the US government did not bail out this ailing giant, and that was when the whole problem started. AIG started having problems a while later, and then the whole of the western capitalist system that had criticised communism and criticised "Asian values" and Confucian values as leading to economic disaster also fell ill; in short, capitalism, American style, is also prone to problems and illnesses just the same as communist economic systems and Asian economic systems. Understanding that economic systems in the world all have their own problems and their own pros and cons is already a key step into financial education (i.e. there are many ways to skin a cat, if you get the drift).

The final point to note is that the crisis spread all around the world because suddenly there was a run on banks and a general fall in stock market confidence worldwide. People yanked their money out of stock markets and financial instruments and started putting their money under their pillows. As you should know, the rapid decrease in the supply of money (this is simple demand and supply analysis) soon led to liquidity problems because banks and other financial companies (and companies in general) could not rely on stock markets to raise funds, which in turn affected their investments and even day to day operations, while at the same time, stock prices came crashing down.

I am writing this article in October 2008, and this is one of the biggest world economic crises that I have seen in ages. Yet, this is not the first time that the world has faced such a problem. By now we should be able to overcome such problems because we have seen recession after recession and learnt key facts and key ideas about economics and how markets work. Yet people don't seem to have learnt much and there is still much room for learning and improvement. Do stick here with my site and learn more about recessions as I seek to explore the topic on "how to survive a recession", a key skill that we will need as recessions come and go often in the world economy, and learning about them may give us ideas on how to become rich despite the fact that others are finding money hard to earn.

I don't purport to know all the answers, but let's have a look into recessions, ideas and concepts on "how to survive a recession" in general, and perhaps we can glean some important insights into how to make money when others don't and how to avoid losing money. In addition, we can also attempt to learn about the various options that we have for investment and the various options we have for surviving a recession. Some ideas will be general, and some ideas will be specific, so learn what you must and glean the ideas if you need them. Cheers and thanks for reading!

Ideas on how to become rich!

Case study: Anthony Robbins, part 2

2008-10-10T22:59:00.000-07:00

Case study: Anthony Robbins, part 2

This is my last post in my case study series for now. In future case studies, I may research and write about Bill Gates and other millionaires and billionaires, and I even intend to write an article on how to become a billionaire, based on my research here on my ideas site.

This article is about the psychological side to what Anthony Robbins talks about and how we can adapt his ideas and what he does to our use, which is making money and becoming rich.

The key difference between quotes by people like Warren Buffett and quotes by Anthony Robbins is that Anthony Robbins' quotes are mainly psychological and mainly rhetoric meant for motivation and self motivation purposes. Warren Buffett quotations, on the other hand, have some use in terms of what they teach in terms of logic, in terms of real ideas on how to make money, and in terms of real principles of finance and principles of how to make money on the stock market, as well as the occasional quip here and there. Therefore, the only real use for Anthony Robbins for our purposes for making money is to see what he does and to answer the question if what he does is replicable for us or not.

That is not to say that Anthony Robbins' psychological motivation and the good words that he has are not useful; they are - it's just that between such words and the quotes from a wise man who invests in the stock market, you would probably want to choose the man who knows how to make money.

I have already written some of the psychological and motivational quotes from Anthony Robbins in my earlier post, and here are some more famous quotes from Anthony Robbins that have inspired me psychologically. Bear in mind that these are good pieces of advice in their own right, but we shall not focus on them; we shall just read them then go on to analyse what he does in terms of how he makes his money and how we can learn to become rich.

Setting goals is the first step in turning the invisible into the visible.

Most people fail in life because they major in minor things.

Once you have mastered time, you will understand how true it is that most people overestimate what they can accomplish in a year -- and underestimate what they can achieve in a decade!

Most people have no idea of the giant capacity we can immediately command when we focus all of our resources on mastering a single area of our lives.

It's in your moments of decision that your destiny is shaped.

Quality questions create a quality life. Successful people ask better questions, and as a result, they get better answers.

Whatever happens, take responsibility.

Your life changes the moment you make a new, congruent, and committed decision.

Beliefs have the power to create and the power to destroy. Human beings have the awesome ability to take any experience of their lives and create a meaning that disempowers them or one that can literally save their lives.

Having dealt with the psychological part, the next question is what tangible lessons can we learn from Anthony Robbins? This site is all about ideas on how to become rich and ideas on making money, after all. How can he teach us to make money and become rich?

1. Motivational seminars are low cost events that can have the potential to make a lot of money. Yet it seems that you need to be already recognised or have the potential to be recognised, before this is a good option for you to make your money from this kind of thing. You will also need skills and abilities to convince people to come to your seminars and to listen to what you have to say, and above all, feel that their money has been well spent on your advice and motivational ideas.

2. Writing books on motivation may turn out to be a more important and better way of making money, because this one does not require you to be recognised first, if you are a good writer and you can find a good and reputable publisher. Yet it also seems to me that if you want to become rich doing this, you may need to write many books and ultimately you face the same dilemma that you need to be famous in order to make more money. That is, you can make some money from writing motivational books. But the real money in it is not from writing motivational books and being unrecognised, but rather in writing motivational books then becoming very recognised and then from there branching out into motivational talks and other such stuff. Then, and only then, will future books earn you a lot of income. Therefore, the fame factor still comes into play when writing books to make money.

3. NLP. This is actually a very controversial field, and I even have written entire articles about it elsewhere. It plays almost no role in our study because we are now ignoring the psychological part of making money and looking into how we can actually, tangibly, make money and become rich using Anthony Robbins' ideas.

4. Acting. Above all, Anthony Robbins is a performer and an actor. He can make money doing this but this might not be a good idea for most of us and the majority of us will never be famous actors or performers. Yet this does not rule out the fact that one or two of you readers may become famous actors or performers or even famous TV personalities. Anthony Robbins is basically teaching us to leverage on our strengths to make money.

In conclusion, here are the aspects of money making that really matter - the ideas on how to become rich that we have extracted from Anthony Robbins' ideas:

1. Motivational seminars are low cost events that have the potential to make a money. Yet you need to be already recognised or have the potential to be recognised.

2. Writing books on motivation may turn out to be a more important and better way of making money, because this one does not require you to be recognised first, if you are a good writer and you can find a good and reputable publisher. Yet it also seems to me that if you want to become rich doing this, you may need to write many books and ultimately you face the same dilemma that you need to be famous in order to make more money. Therefore, the fame factor still comes into play when writing books to make money.

3. NLP. This is actually a very controversial field, and I even have written entire articles about it elsewhere.

4. Acting. Above all, Anthony Robbins is a performer and an actor. Anthony Robbins is basically teaching us to leverage on our strengths to make money.

Thanks for reading and there will be more finance articles coming in future posts here on my site on Ideas on how to become rich. Recently in Sep and Oct 2008, with economic conditions worldwide becoming bad, with subprime in the USA and a crisis of confidence in banking worldwide, there is an even more pressing need to be financially educated and wise with money and investments, so I will try my best to educate, share ideas, teach and suggest. Stay tuned for more here on my great site! Thank you.

Ideas on how to become rich!

Case Study: Anthony Robbins, part 1

2008-10-07T09:01:00.000-07:00

Case Study: Anthony Robbins, part 1

Welcome to my case study on Anthony Robbins and how to make money and become rich by studying what he does. Some of my friends have asked me why is it I haven't written anything about Bill Gates, Larry Ellison and the other more famous/ "common"/ established billionaires, who have definitely got skills in making money, but have instead chosen to focus on several other people instead. Well, here's a couple of justifications before I write on Anthony Robbins and how he makes his money.

Firstly, I am definitely going to write about Bill Gates and other billionaires, and indeed I am going to attempt to write an article here on my Ideas on How to Become Rich site on "How to become a billionaire", but that will be in another post. That will be an epic post, and it will be good, trust me!

Secondly, these people I have chosen for my case studies are all special in their own way. Warren Buffett is a billionaire, but he is quite unlike other billionaires. He makes money in a special and unique way that should be analysed and read seriously, and I have done that. If you have learnt anything and taken away some knowledge and absorbed some materials for your own good, then that's great and I have achieved some measure of financial education. Trump is also a billionaire, and his area is in real estate, as well as other fields in which he makes money and we can learn from those fields. Kiyosaki is someone who is not that rich but has made it, and he makes money in a manner different from the other two while espousing quite unique views (true or not, depends on which of my analyses you believe - the pro Kiyosaki, or the anti-Kiyosaki).

So having said that, this will be the last post in this series of case studies, and I will resume the series later. I will be writing about financial topics, finance and other financial matters and of course the theme is still on how to become rich and how to make money.

Without further ado: Anthony Robbins, part 1

Anthony Robbins is not that famous worldwide, and he is not as rich as Bill Gates or Warren Buffett, but he is quite recognised in his field and he makes a lot of money doing the following:

writing about self motivation and self actualisation, speaking about the same topic, and acting.

Basically, Anthony Robbins makes his money from motivational seminars and motivational books. And he makes a lot of money.

I first came across when I read his famous book called Awaken the Giant Within. Basically he is a famous person because of his emphasis on NLP, but there has been a huge debate whether or not he has made the field his own and incorporated his own thinking and ideas into the field, but that is not of our concern. We are only concerned about what he says about making money and becoming rich, and we are also concerned about how he makes his money and how we can learn from his example. What can we learn about money from his ideas, as well as from his actual actions?

The key point is that he has become very rich writing and speaking about motivation to lots of people, and basically he is a life coach, life trainer, personal coach, motivational speaker, or even less charitably, a spin doctor. I will talk a bit about Anthony Robbins here first, and in the next post I will give my analysis. Right now, this is what you need to know about Anthony Robbins and his ideas:

Anthony Robbins believes that you need to condition yourself to thinking big and thinking rich, and by doing so you will become rich. For instance, he has a personal programme to coach people called Personal Power that argues that people can be conditioned into becoming positive thinkers, and that your life can be changed by yourself.

Here are some of the famous quotes that I managed to find:

How am I going to live today in order to create the tomorrow I'm committed to?

Using the power of decision gives you the capacity to get past any excuse to change any and every part of your life in an instant.

If you want to be successful, find someone who has achieved the results you want and copy what they do and you'll achieve the same results.

Most people have no idea of the giant capacity we can immediately command when we focus all of our resources on mastering a single area of our lives.

Remember, a real decision is measured by the fact that you've taken new action. If there's no action, you haven't truly decided.

The higher your energy level, the more efficient your body... The more efficient your body, the better you feel and the more you will use your talent to produce outstanding results.

The truth is that we can learn to condition our minds, bodies, and emotions to link pain or pleasure to whatever we choose. By changing what we link pain and pleasure to, we will instantly change our behaviors.

One can see immediately to answer the question on how to become rich, Anthony Robbins goes for action, conditioning and positive thinking. These are the key ideas for him on how to become rich and make money: by changing your psychological attitude and your perspectives. The question you must ask is that do action, conditioning and positive thinking play an important role in making money or are they part of a larger framework?

In my next post on Anthony Robbins, where I analyse what he has spoken about, I will deal with the psychological part on how to become rich that Anthony Robbins has suggested, and I will also deal with learning and adopting his ideas for our use.

Cheers and thanks for reading!

Ideas on how to get rich!