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Disclaimers And  Notices   I  am  not  a  licensed  financial,  investment,  business,  legal  or  accounting   professional.  All  information  contained  in  this  book  is  intended  for   informational  and  entertainment  purposes  only  and  does  not  constitute   professional  advice.  I  encourage  you  to  do  your  own  due  diligence  and  seek   professional  advice  before  acting  on  any  information  or  recommendations  found   in  this  publication.     Please  understand  that  I  may  have  financial  relationships  with  some  of  the   companies  mentioned  in  this  book  and  may  benefit  financially  from  some  of  the   links  contained  in  this  publication.     I  do  not  assume  any  liability  for  the  content  of  any  linked  websites,  including,   without  limitation,  the  accuracy,  timeliness,  completeness  or  quality  of  such   content.  Any  third-­‐party  information  is  subject  to  change  without  notice.  I  do  not   guarantee  any  success,  monetary  gain  or  investment  returns  if  you  choose  to  use   any  of  the  recommended  third-­‐  party  products  or  services.     By  reading  this  book,  you  agree  that  neither  I  nor  my  company  are  responsible   for  your  success  or  failure  due  to  the  decisions  made  based  on  any  information   or  recommendations  presented  in  this  publication.     No  part  of  this  book  shall  be  reproduced,  transmitted  or  sold  in  whole  or  in  part   in  any  form,  without  my  prior  written  consent.  All  trademarks  appearing  in  this   book  are  the  property  of  their  respective  owners.    

Table of  Contents     v Introduction   v Skill  #1:  Develop  the  Rich  (Wo)man  Mindset   v Skill  #2:  Set  Clear  Financial  Goals   v Skill  #3:  Create  A  Strategy  Plan   v Skill  #4:  Manage  Your  Money  Wisely   v Skill  #5:  Protect  Your  Wealth   v Skill  #6:  Increase  Your  Income   v Skill  #7:  Invest  –  Put  Your  Money  To  Work   v Skill  #8:  Networking   v 8  Skills  To  Become  Rich  

Introduction Become  Rich.   Becoming  rich  is  something  that  many  people  are  going  after.     It  does  not  only  happen  now.  It  happens  generations  ago  where  our  ancestors   had  been  going  after.  And  it  will  continue  in  the  future  generations.   Since  it  is  something  that  happens  for  so  many  years,  why  do  only  the  top  10%   of  the  world  population  are  rich?     How  do  they  get  rich?   How  can  I  also  be  rich  like  them?   I  am  just  like  you  and  many  others  who  hunt  for  the  solutions  to  become  rich   and  achieve  my  own  financial  success.   My  name  is  Nick,  from  Singapore,  a  prominent  city  in  the  South  East  Asia,  where   it  is  famous  for  various  reasons,  such  as  a  financial  hub  of  South  East  Asia.   If  you  are  not  familiar  with  Singapore,  Singapore  is  a  small  and  developed  city.   She  is  one  of  the  top  few  higher  costs  for  standard  of  living  in  the  world.   As  the  cost  of  living  continue  to  rise  and  more  exposure  for  higher  quality  of   living,  I  embark  on  my  path  to  financial  success  to  provide  more  for  my  family   and  myself.   Like  many  others,  my  path  is  not  smooth  sailing.   I  faced  many  challenges  and  failed  many  times.   Gratefully,  I  learnt  a  lot  from  many  millionaires  and  peers  along  the  way.   Because  of  all  the  supports  and  knowledge  that  I  gained  along  the  way,  I  am   lucky  and  blessed  to  have  improvement  in  my  quality  of  living.   As  such,  I  wrote  this  Ebook  to  reach  out  to  more  peers  to  share  my  experiences   that  I  had  so  far  and  hopefully  in  some  ways  or  the  other  to  help  you  along  your   path  to  financial  success.   Not  everyone  who  is  rich  is  born  rich.   Millionaire  really  can  be  created  if  you  have  the  right  skills  to  develop  yourself   to  become  a  millionaire.   In  this  Ebook,  I  will  be  sharing  with  you  the  8  skills  that  most  rich  people  have   that  help  them  to  create  a  great  amount  of  fortune  and  become  rich.   All  right!  Lets  begin  …    

Skill #1:  Develop  A  Rich  (Wo)man  Mindset   “As  You  Think,  So  Shall  You  Become”   -­‐  Bruce  Lee  

Let’s  be  honest,  the  very  reason  why  you  are  working  so  hard  day  after  day  is   because  YOU  want  to  achieve  Financial  Freedom.  Yes?  But,  looking  at  your   current  finances,  do  you  still  feel  like  you  have  got  a  long  way  to  go?  Why  are  the   rich  people  rich  and  the  rest  of  the  population  are  just  barely  getting  by?   Take  any  millionaire  or  billionaire  and  look  closer  at  them,  you  will  know  that   they  looked  similar  as  most  of  us.  They  have  a  pair  of  legs,  arms,  eyes,  ears  and  a   nose  and  mouth.  Some  of  them  are  even  the  same  ethnic  and/or  same   nationality  like  us.  So  what  is  the  difference  between  us  then?   Yes!  You  are  right.  The  key  difference  is  what  is  in  their  brain.   It’s  the  mindset  that  they  have  that  set  us  apart  from  the  reality.   T.  Harv  Eker,  a  successful  coach  who  teaches  millions  of  people  about   millionaire  mindset,  stated  in  his  book  “Secrets  Of  Millionaire  Mind”:   Thoughts  -­‐>  Feelings  -­‐>  Actions  =  Results   “Thoughts  lead  to  Feelings.  Feelings  lead  to  Actions.  Actions  lead  to  Results.”   Isn’t  that  simple  and  straightforward  to  understand?  Yes?   What  you  think  will  lead  to  how  you  feel,  how  you  feel  will  determine  the  actions   you  will  take  and  your  actions  will  bring  you  the  results.   Many  people  think  that  the  rich  are  rich  because  they  know  how  to  play  the  rich   game.  They  have  strong  knowledge  about  businesses  and  investments  that   helped  to  earn  them  lots  of  money.   Yes,  partially  that  is  true.  Those  are  skill  sets,  which  anyone  can  learn  and   acquire  other  a  period  of  time.  However,  what  really  matter  are  the  thoughts   that  they  have  to  ignite  the  feelings  and  take  the  right  actions  to  get  the  result   that  they  wanted  (become  rich).   Before  I  share  with  you  5  points  in  developing  your  millionaire  mindset,  you  are   required  to  acknowledge  that  you  have  to  make  changes  –  make  changes  to  your   thoughts,  your  feelings  and  actions  to  get  a  different  result  that  you  want.   Why  is  this  important?   That  is  because  as  what  Thomas  Edison,  an  inventor  of  electricity,  said,   “Stupidity  is  doing  the  same  thing  over  and  over  again  and  expect  different  results.”   I  choose  to  believe  you  are  smart  and  you  know  what  to  do.  

Here are  5  points  to  kick-­‐start  your  development  of  millionaire  mindset.   1. Positive  beliefs  about  wealth.   We  know  that  to  become  rich,  we  need  to  think  and  act  like  the  rich.   Rich  people  have  positive  beliefs  that  allow  them  to  have  more  money.   Before  you  can  become  rich,  you  need  to  make  sure  that  your  beliefs  about   wealth  are  positive  and  propelling  you  towards  more  wealth.   However,  your  beliefs  are  not.  That  is  the  exact  reason  why  you  are  at  where   you  are  today.  You  need  to  change  them.   Some  examples:   Positive:  I  can  achieve  financial  success  by  age  30.   Negative:  Money  is  the  root  of  all  evils.   How  do  you  change  your  negative  beliefs  to  positive?   1. Write  down  all  your  beliefs  and  acknowledge  them,  regardless  positive  or   negative,  on  a  piece  of  paper.   2. Classify  each  belief  in  the  list  as  positive  or  negative.   3. Take  another  paper  and  change  all  the  negative  beliefs  into  positive.   4. Add  in  new  positive  beliefs  if  you  want  to   5. Place  this  list  of  beliefs  somewhere  that  you  can  read  them  everyday.     2. Know  your  ‘WHY’  you  want  to  become  rich.   Do  you  know  that  anyone  CAN  be  rich?     If  an  individual  has  the  right  thoughts,  with  the  right  feelings  and  take  the   right  actions,  he  or  she  will  get  the  positive  results  and  become  rich.   However,  the  truth  is  not  everyone  HAS  to  be  rich.   All  rich  people  are  rich  because  they  know  their  ‘WHY’  reasons  of  becoming   rich.  Unfortunately,  many  people  do  not  know  their  reasons  why  they  want  to   become  rich  and  that  is  the  reason  why  most  of  them  failed  to  become  rich.   They  retreat  back  to  their  original  state  when  they  face  challenges  along  the   path  to  financial  success.   The  stronger  your  ‘WHY’  reasons,  the  more  likely  you  will  become  rich.  Why?   Strong  WHY  reasons  means  you  have  strong  thoughts,  which  will  create   strong  feelings  and  you  will  take  massive  actions  to  create  the  results.   How  do  you  know  if  your  ‘WHY’  reason  is  good  and  strong  enough?   Ask  yourself  this  question:  Is  it  an  absolute  MUST  for  the  reason  to  happen?   Another  question  you  may  ask:  Is  it  ok  with  me  if  it  doesn’t  happen?   If  your  answer  is  yes,  that  means  the  reason  is  not  strong  enough.  

3. See money  the  way  like  the  rich.   Is  your  house  an  asset  or  liability?   I’m  sure  you  will  say  your  house  is  an  asset.   If  you  have  studied  some  courses  of  accounting,  you  have  learnt  from  school   that  a  house  is  classified  as  an  asset.   Academically,  that  is  true.  No  doubt  about  that  definition.   If  you  have  read  ‘Rich  Dad  Poor  Dad’  by  Robert  T.  Kiyosaki,  he  mentions  that   your  house  could  probably  a  liability  instead  of  an  asset.   Ask  yourself  these  2  questions:   1. Is  your  house  still  on  mortgage  loan?   2. Is  your  house  earning  income  more  than  your  mortgage  loan?   If  your  answer  is  ‘yes’  for  Q1  and  ‘no’  for  Q2,  that  means  your  house  is  not  an   asset,  it  is  a  liability.   Surprise?     I  am  equally  surprise  when  I  first  expose  to  how  rich  people  see  money.   Therefore,  to  become  rich,  you  need  to  learn  the  way  that  rich  see  money.     4. Know  how  your  cash  flows   When  come  to  personal  finance,  in  the  mind  of  the  average  people,  there  are   only  2  categories  –  income  and  expenses.   Their  monthly  paycheck  is  their  income  and  whatever  they  spend  is  their   expenses.  They  are  concern  on  how  to  balance  between  these  2  figures.   However,  for  the  rich,  they  have  not  2  but  4  categories  –  income,  expenses,   assets  and  liabilities.  This  is  similar  to  the  income  statement  and  balance   sheet,  which  are  commonly  used  by  companies.   So  what  does  that  means?     It  means  rich  runs  their  own  personal  wealth  like  how  they  run  a  company.     Why  do  they  do  that?   The  bottom  line  of  a  company  is  to  make  profit  and  build  equity.   Similarly,  the  rich  are  building  their  net  worth.   So  how  does  the  cash  of  the  rich  flows?   Rich  people  focus  on  building  more  assets  and  reduces  liabilities.   Why  is  that  so?   Assets  help  the  rich  to  generate  more  income,  however,  liabilities  takes  away   their  assets.  Therefore,  rich  will  always  focus  on  assets  and  reduce  liabilities.  

5. Be –  Do  –  Have   One  of  the  keys  that  rich  people  are  rich  and  average  people  are  average  is   whether  they  have  this  ‘Be-­‐Do-­‐Have’  model  in  them.   What  do  I  mean  by  that?   You  have  the  ‘Do-­‐Have-­‐Be’  model  like  many  others.   Since  young,  whether  in  school  or  from  your  parent,  you  are  taught  to  ‘Do’  the   job  right  so  that  you  can  ‘Have’  the  kind  of  money  and  lifestyle  that  you  want,   and  then  you  can  ‘Be’  the  (millionaire)  man  or  woman  that  you  want  to  be.   That  is  an  absolute  wrong!   Because  the  wrong  way  of  implementing  the  model,  you  don’t  get  the  results   that  you  desire.     You  need  to  ‘Be’  the  millionaire  first  (although  you  are  not),  and  ‘Do’  what  the   millionaire  will  do,  and  then  you  will  ‘Have’  what  the  millionaire  will  have.     This  model  is  similar  to  what  T.  Harv  Eker  has  evocate:   Thoughts  (Be)  -­‐>  Feelings  -­‐>  Actions  (Do)  =  Results  (Have)   Your  thoughts  create  your  future.  Think  BIG  &  grow  RICH!     Recommended  Resources   There  are  many  more  millionaire  mindsets  that  you  will  need  to  learn.  However,   it  will  be  too  long  to  be  covered  in  this  eBook.   These  5  points  that  I  shared  will  help  you  to  kick-­‐start  your  thinking  process  and   change  your  thoughts  of  a  millionaire  mind.   Here  are  4  books  that  I  highly  recommend  you  to  read  them  as  they  have  a  huge   impact  on  the  millionaire  mindset  of  million  others  and  mine.   1. “Rich  Dad  Poor  Dad”  –  Robert  T.  Kiyosaki   -­‐  How  the  rich  think  and  the  way  they  see  money     2. “Cashflow  Quadrant”  –  Robert  T.  Kiyosaki   -­‐  The  pattern  of  the  flow  of  the  cash  for  the  rich     3. “Secrets  of  Millionaire  Mind”  –  T.  Harv  Eker   -­‐  To  be  rich,  think  rich.  To  be  poor,  think  poor.     4. “Think  &  Grow  Rich”  -­‐  Napoleon  Hill   -­‐  What  your  mind  thinks,  it  will  achieve.  

Skill #2:  Set  Clear  Financial  Goals   “Setting  Goals  Is  The  First  Step     In  Turning  The  Invisible  Into  The  Visible”   -­‐  Tony  Robbins  

Most  rich  people  have  goals  and  it  is  an  important  element  for  their  success.   Why  are  goals  important?     It  sets  a  direction  for  you  to  work  towards  to.   If  you  do  not  have  goals,  you  will  be  just  like  a  lost  soul  on  the  street  and   wondering  around  with  no  direction  and  destination  in  mind.   Setting  goals  sound  simple.  Many  people  do  that  every  year  but  why  people   failed  to  achieve  them?   1. They  are  not  connected  with  their  goals.   Your  goals  should  be  relevant  and  have  strong  reasons  and  meanings  to   you  that  you  want  to  achieve.   Many  people  set  goals  for  the  sake  of  setting  them.  Because  they  are  not   connected  to  their  goals,  they  are  also  not  committed  to  achieve  their   goals.   This  brings  me  to  the  next  point.   2. They  are  not  committed.   Your  goals  have  to  be  something  that  you  MUST  achieve  and  not   something  that  you  WANT  to  achieve.   If  your  goals  are  something  that  must  be  achieve,  you  will  do  whatever  it   take  to  achieve  your  goals.  However,  if  you  only  want  to  achieve  your  goals,   most  likely  you  will  not  achieve  them  because  of  distraction  or  you  give  up   when  you  face  challenges.   3. They  have  too  many  goals  to  achieve.   All  of  us  have  many  things  we  want  to  achieve  in  our  lives  but  there  are   only  that  much  we  can  do  and  achieve  at  any  given  time.   When  we  have  too  many  goals  that  we  want  to  achieve,  either  we  take  too   long  to  achieve  them  or  we  achieve  them  with  lower  quality.   So  focus  on  1  –  2  goals  at  each  time  and  do  your  best  to  achieve  them   before  you  move  on  to  achieve  other  goals.  

So now  you  know  that  you  need  to  set  goals  and  why  people  failed  to  achieve   them,  you  might  be  thinking  how  to  set  clear  financial  goals  that  are  achievable?   If  you  have  did  some  researches  or  did  some  goals  setting  before,  most  likely   you  would  have  heard  of  S.M.A.R.T.  goal.  In  many  of  the  articles  on  SMART  goal,   they  usually  advocate  ‘For  you  to  achieve  your  goals,  you  need  to  set  S.M.A.R.T.   goals!’   What  does  S.M.A.R.T.  goal  stand  for?   S  =  Specific   M  =  Measurable   A  =  Attainable   R=  Realistic   T=  Timely   In  my  opinion  and  personal  practice,  I  follow  only  the  S.M.T.  part  of  it.   Example  of  S.M.T.  goal:   Good  example:  Have  $100,000  in  bank  account  within  12  months.   Bad  example:  Be  rich  by  end  of  the  year.   What  exactly  is  S.M.T.  goal?   • Specific:  Specific  goals  are  clear  and  easy  to  achieve.   When  your  goals  are  specific,  it  helps  you  to  focus  your  efforts  and  define   your  direction  to  achieve  your  goals.   There  are  3  keys  to  set  specific  goals:   1. Why  are  your  goals  important  to  achieve?   2. What  you  going  to  do  to  achieve  your  goals?   3. How  are  you  going  to  achieve  your  goals?     • Measureable:  If  you  can’t  measure  your  goals,  you  can’t  manage  it.   How  do  you  know  if  you  have  achieved  your  goals  or  how  much  far  away   are  you  from  your  goals?  It  will  be  only  possible  if  you  can  manage  and   track  your  goals.  Therefore,  your  goals  have  to  be  measurable.   • Timely:  A  timeframe  to  keep  track   By  setting  a  timeframe  to  your  goals,  you  set  a  deadline  on  your  goals  and   make  it  clear  for  you  to  achieve  it.  It  also  makes  the  process  measurable  to   keep  track  of  your  performance  and  how  far  are  you  away  from  your  goals.   With  the  tracking,  you  will  be  able  to  make  strategies  to  achieve  your  goals   within  the  timeframe.  

Why I  do  not  follow  the  ‘Attainable  &  Realistic’  parts?     Before  I  explain,  let  me  ask  you  …   Can  you  imagine  what  the  world  be  today  without  electricity?   Can  you  imagine  yourself  lighting  up  candles  at  home?   Can  you  what  will  be  like  without  Internet,  computers,  and  mobile  phones?   In  the  S.M.A.R.T.  goals  that  method  above,  the  goal  has  to  be  attainable  and   realistic.  If  many  great  inventors,  like  Thomas  Edison,  have  followed  the   S.M.A.R.T.  goal  model  closely,  they  would  never  invent  what  they  have  invented.   In  my  opinion,  your  goals  have  to  be  big  enough  to  be  a  dream  that  you  want  to   achieve.  Sometimes,  by  setting  goals  that  are  attainable  and  realistic  it  limits   your  beliefs  and  actions.  You  might  end  up  setting  goals  that  are  too  small  for   yourself,  just  to  ensure  that  your  goals  satisfy  the  S.M.A.R.T.  theory.   What’s  next  after  setting  your  S.M.T.  goals?   Setting  your  goal  is  one  thing.     Following  through  it  is  another.   After  setting  your  S.M.T.  goals,  how  do  you  make  sure  that  you  follow  through?   The  best  way  to  keep  your  goals  at  top  of  your  mind  is  to  look  at  it  constantly.   You  can  either  write  or  draw  your  goals  on  a  piece  of  paper  and  place  that  paper   at  somewhere  that  you  will  look  at  it  everyday.   Under  the  Law-­‐Of-­‐Attraction,  if  you  think  about  achieving  your  goals  long   enough,  you  are  more  likely  to  attract  the  outcome  to  happen.   So  remember  the  key  to  setting  achievable  goals:   • • • • •

Prioritize your  goals  and  focus  on  the  top  2   Connect  with  your  goals   Be  committed  to  achieve  them   Set  your  goals  with  the  S.M.T.  model   Keep  your  goals  at  top  of  your  mind  


Skill #3:  Create  A  Strategy  Plan   “A  Goal  Without  A  Plan  Is  Just  …  A  Wish”   -­‐  Antoine  De  Saint-­‐Exupéry  

Once  you  have  defined  your  S.M.T.  goals,  you  are  ready  to  create  a  strategy  plan   to  achieve  your  goals.   Many  people  create  their  strategy  plan  in  the  wrong  way.     They  use  the  ‘Short-­‐term  to  Long-­‐term  approach'.     They  set  a  small  goal  within  a  timeframe,  usually  in  the  near  future,  and  another   bigger  goal  in  the  future.  If  the  person  has  4-­‐5  goals,  the  process  repeats  until   the  last  goal  is  set.   Their  strategy  is  to  achieve  the  smallest  goal  first  and  follow  by  the  next  bigger   goal.  They  may  achieve  the  first  goal,  but  they  are  unlikely  to  achieve  the  next   goal  onwards.  Why?   If  you  need  that  amount  of  time  to  achieve  your  smallest  goal,  it  will  only  be   logical  that  you  need  more  time  to  achieve  the  next  bigger  goal.  If  you  plan  to   achieve  a  big  goal  in  the  future,  you  do  nothing  since  Day  1  and  only  start   working  on  it  after  you  achieve  the  smaller  goal,  most  often  that  not,  the  goals   further  into  the  future  are  usually  will  not  achieved.   So  how  do  you  set  your  goals?  It  is  like  eating  up  an  elephant.   How  do  you  eat  an  elephant?   Are  you  able  to  swallow  the  whole  elephant?   Of  course  not  right?  So  what  do  you  do?   You  cut  the  elephant  into  small  parts,  the  front  legs,  back  legs,  body,  etc.   You  further  cut  each  part  into  small  bite  size  so  that  you  can  chew  on  them.   Similarly  for  your  goals,  you  break  down  your  goals  into   1. 2. 3. 4. 5. 6. 7.

Long term  (7  –  10  years)   Mid  term  (5  –  7  years)   Short  term  (1  –  3  years)   Within  the  first  year   Monthly   Weekly   Daily  

Don’t focus  on  the  BIG  goals,  break  down  your  goals  and  focus  on  the  smaller   goals.  It  is  only  logical  that  if  you  achieve  all  your  smaller  goals,  you  will  also   achieve  your  big  goals.  

Let me  give  you  an  example  on  how  you  can  create  a  strategy  plan.   Your  goal:  Have  $2.4  millions  in  10  years   • • • • • • •

‘Long Term’  Goal:  $2.4  million  by  end  of  10  years   ‘Mid  Term’  Goal:  $1.2  million  by  end  of  5  years   ‘Short  Term’  Goal:  $720,000  by  end  of  3  years   ‘Within  The  First  Year’  Goal:  $240,000  by  end  of  12  months   ‘Monthly’  Goal:  $20,000   ‘Weekly’  Goal:  $5,000  (Assume  4  weeks  basis)   ‘Daily’  Goal:  $1,000  (Assume  5-­‐days  work  week)  

If you  focus  on  $2.4  million  by  end  of  10  years,  it  might  seem  to  be  hard  to   achieve.  However,  if  you  focus  on  $1,000  a  day,  it  might  be  more  achievable.  If   you  consistently  achieve  your  daily  goal  of  $1,000,  you  will  definitely  achieve   your  $2.4  million  goal  by  end  of  10  years.   So  how  does  that  apply  to  your  daily  work?   Assume  you  are  working  as  a  salesperson  that  sells  big-­‐ticket  items.   Each  sale  you  made,  you  earn  $500  worth  of  commission.   You  need  to  meet  your  clients  through  face-­‐to-­‐face  to  do  a  presentation  before   they  buy  and  you  need  to  do  callings  to  book  appointments.   Daily  Goal:  $1,000   • Daily  Sales  Target:  2   • Appointments:  8  (Assume  it  takes  4  appointments  to  close  1  sale)   • Callings  To  Make:  40  (Assume  it  takes  5  calls  to  book  1   appointment)   So  similarly,  in  order  to  achieve  your  daily  target  of  $1,000,  all  you  need  to  focus   on  is  40  callings  and  8  appointments  in  a  day.   Do  you  see  it?   By  breaking  down  and  focusing  on  smaller  achievable  tasks,  it  will  be  easier  and   give  you  a  higher  success  rate  to  achieve  your  goal  than  focus  on  the  big  goal   itself.   Go  ahead  and  break  down  your  goals  now  …  

Skill #4:  Manage  Your  Money  Wisely   “If  you  buy  things  you  do  not  need,     soon  you  will  have  to  sell  things  you  need”   -­‐  Warren  Buffet  

How  do  you  know  if  you  have  achieved  financial  success,  truly  financially  free?   It  is  by  your  numbers.   What  numbers  you  may  ask?   How  do  you  determine  if  you  are  rich?   Usually,  we  measure  by  how  much  net  worth  you  have.   Net  Worth    =  Assets  –  Liabilities   If  you  have  positive  net  worth,  that  means  you  are  rich.   Is  that  good  enough?  No.   Having  low  positive  net  worth  doesn’t  that  you  are  as  rich  as  you  want  to  be.   To  have  higher  net  worth,  you  need  to  have  more  assets  and  lesser  liabilities.   So  how  to  have  more  assets?   One  main  source  of  assets  is  your  income.   However,  does  have  high  income  means  you  have  more  assets  and  rich?  No.   Like  many  rich  people  will  say,  ‘it  is  not  how  much  money  you  earn,  it  is  how   much  money  you  can  save.’   There  are  many  high  level  executives,  who  earn  high  4-­‐figures  or  5-­‐figures   income.  They  dress  well,  dine  in  high-­‐class  restaurants,  drive  a  high-­‐end  car,  etc.   You  may  find  that  they  are  rich  because  of  the  kind  of  lifestyle  they  are  living.   However,  if  you  look  at  their  numbers,  they  are  actually  not  as  rich  as  you  think.     Let  me  give  you  an  example:   Person  A:  Income  =  $2500  per  month,  Expenses  =  $2000  per  month   Person  B:  Income  =  $10,000  per  month,  Expenses  =  $9,  500  per  month   Who  is  richer?  Neither,  they  are  both  equally  the  same.   Person  B  earns  more,  but  he  is  not  any  richer  than  Person  A.   So  your  net  saving  is  …   Net  Saving  =  Income  –  Expenses  

Now, you  might  be  thinking  ‘Ok,  so  if  I  have  high  income  and  low  expenses,  that   will  means  that  I  am  rich  and  financially  free?’   No!  You  are  rich  but  you  are  not  financially  free.   Most  people  have  the  wrong  concept  about  been  financially  free.   They  think  that  when  they  have  high  income  and  low  expenses,  that  will  means   that  they  are  financially  free.   You  only  achieve  financial  freedom  when  your  passive  income  is  greater  than   your  expenses  and  able  to  sustain  your  expenses  without  you  working.   Let  say  how  you  have  an  income  of  $10,000  per  month  and  your  monthly   expenses  is  $5,000.  If  one  day  you  stop  working,  your  income  will  be  $0  but  your   expenses  will  still  be  $5,000.  So  you  have  to  use  your  saving  to  sustain  your   monthly  expenses.     The  question  here  will  be  how  long  your  savings  can  sustain  you  and  your   family?  It  will  come  to  a  day  that  your  saving  will  become  $0.   However,  if  you  have  a  passive  income  of  $5,000  monthly,  through  businesses  or   investments  for  examples,  your  expenses  are  covered  every  month.  You  can   choose  not  to  work  and  you  don’t  have  to  worry  about  the  source  of  money  to   pay  for  your  expenses  anymore.   Only  at  this  situation,  you  are  truly  financially  free.   Financial  Freedom  =  Passive  Income  >  Expenses   So  you  see,  only  by  having  higher  passive  income  as  compared  to  your  expenses   than  you  can  achieve  financial  freedom.   Most  of  the  time,  passive  income  comes  the  returns  of  your  investments  in  your   investment  portfolio.   In  order  to  build  up  an  investment  portfolio  that  have  a  high  returns,  you  will   need  to  have  enough  money,  generated  from  your  income,  to  invest  them  first.   Can  you  see  the  connection  now?   However,  if  you  do  not  manage  your  expenses,  it  will  require  more  effort  from   you  to  build  up  your  income  and  passive  income.   So  how  can  you  increase  your  income,  passive  income  and  reduce  your   expenses?   I  will  elaborate  more  about  Income  and  Passive  Income  at  the  later  sector  of  this   eBook.  Now  lets  look  at  how  you  should  manage  your  money  to  become  rich.  

When comes  to  achieving  financial  success,  I  notice  that  most  people  dive   straight  into  the  subject  of     • Increase  your  income,  and     • Invest  their  money  for  more  money.     Guess  what,  over  time,  many  of  these  people  are  still  not  as  rich  as  they  wanted   to  be.  Why  is  that  so?     Let  me  share  with  you  a  story.   There  is  this  captain  of  a  ship.     He  wants  his  ship  to  sail  faster  in  the  ocean  so  that  he  can  reach  his  destination   earlier.  However,  there  are  many  holes  on  his  ship.     As  he  sail  across  the  ocean,  water  slowly  enters  the  ship.     He  has  to  harbor  at  the  next  port  to  empty  out  the  excess  water.     As  this  situation  delays  arrive  time,  he  decided  to  hire  additional  crews  and   purchase  better  equipment  so  that  he  can  increase  the  sailing  speed  to  reach  his   destination  early.   As  the  captain,  he  made  the  decision  to  repeat  this  cycle  over  and  over  again.     But  due  to  unforeseen  circumstance,  a  particular  port  is  5  times  the  distance   from  the  previous  port.     As  the  distance  is  longer,  more  water  are  filling  up  the  ship  and  eventually,  the   ship  sank.     All  valuables  and  crews  go  down  with  the  ship,  he  lost  everything.   By  now,  have  you  wonder,  why  does  the  captain  not  want  to  patch  up  the  holes   on  the  ship  first?     Isn’t  it  more  rationale  to  do  that?   The  ship  is  the  financial  situation  of  most  average  people  and     they  are  the  captains  of  their  own  ships.     Most  of  them  want  to  achieve  their  financial  goals  as  soon  as  possible.     However,  their  expenses  and  debts  (holes)  are  draining  them,  yet  they  choose  to   focus  on  increasing  their  income  instead  of  patching  the  ‘holes’.     Eventually,  many  of  them  sank  -­‐  some  starts  all  over  again  or  some  declared   bankrupt.   So  how  should  you  manage  your  money?   If  you  Google  on  the  Internet,  you  will  find  many  websites  that  teach  you  how  to   manage  your  money.  There  are  many  ways  you  can  do  that  and  there  is  no  way  I   can  share  all  of  them  with  you  in  this  eBook.     So,  I  have  shortlisted  5  ways  to  share  with  you  because  I  practice  them  and  they   have  helped  me  in  managing  my  money.    

1. Reduce Your  Number  Of  Credit  Cards  To  One.   Do  you  have  more  than  1  credit  card?  Yes?   Then  it  is  time  to  reduce  to  only  1  credit  card,  regardless  of  any  reason  why   you  sign  up  for  it  in  the  first  place.   Don’t  get  me  wrong.  I’m  not  saying  that  having  credit  card  is  wrong.   I’m  just  saying  that  using  credit  card  for  your  payment  is  not  a  good  idea.   Why  is  that  so?   • Banks  charge  annual  fee  for  their  credit  cards.  Imagine  the  total  amount  of   annual  fee  you  have  to  pay  if  you  have  more  than  1  credit  card?   • The  interest  rates  are  high.  Banks’  marketing  gimmicks  are  made  for   people  to  believe  that  the  interest  rates  are  low,  but  in  actual  fact,  they  are   not.   • You  are  spending  your  future  money  for  your  current  enjoyment.   • They  encourage  you  to  spend  more  than  you  have.   • Easily  to  fell  into  the  trap  of  debts   Therefore,  it  is  advised  to  keep  only  1  credit  card  for  emergency  uses.   2. Track  Your  Income  And  Expenses   Do  you  have  positive  cash  flow  or  negative  cash  flow  at  the  end  of  every   month?  If  you  are  unsure,  then  you  need  to  track  your  income  and  expenses.   Most  rich  people  track  their  income  and  expenses  because  they  wants  to   know  if  they  are  having  positive  cash  flow  at  the  end  of  the  month.  If  they   have  negative  cash  flow,  this  means  that  they  have  spend  more  than  they   earn.   So  how  do  you  track  your  income  and  expenses?   For  income  is  straightforward.  At  the  end  of  the  month,  you  will  receive  your   paycheck.   For  expenses,  start  keeping  your  receipts  for  you  to  keep  track  of  your   expenses.  With  the  advance  of  technology,  you  may  download  and  use   application  on  your  smartphones  or  make  use  of  your  personal  laptop  to   store  your  expenses.   With  the  data  of  your  expenses,  you  will  be  able  to  find  out:   1. Whether  you  have  positive  or  negative  cash  flow.   2. Which  area  are  you  overspending?   3. Which  area  can  you  reduce  your  expenses.   Start  tracking  your  income  and  expenses  now.  

3. Clear Your  Debts  First   Like  I  shared  in  the  story  earlier,  if  you  do  not  patch  up  your  financial  leakage,   no  matter  how  much  money  you  earned,  your  money  will  leakage  out  to   other  people  pockets.   If  you  have  debts,  always  clear  your  debts  first  before  building  your  financial   wealth.   There  are  generally  2  methods  to  clear  your  debts:   i. ii.

Clear the  largest  amount  to  the  smallest  amount   Clear  the  smallest  amount  to  the  largest  amount  

There is  no  one  perfect  or  prefer  solution  between  these  2  methods.  Both   methods  are  effective  but  they  have  their  pros  and  cons.     Largest  to  Smallest   Smallest  to  Largest   Pros   • Reduce  the  interests  from  the   • Smaller  debts  will  be  cleared   large  debts   soon  and  have  lesser  number   of  debts  on  hand   • Clear  off  large  debts  and  it   gets  easier  and  fast  to  clear   the  smaller  debts   Cons   • Interests  accumulated  from   • Interests  accumulated  on  large   small  debts  will  be  bigger  as   debts  are  huge,  because  of  the   larger  debts  usually  will  take  a   principal  amount  even  though   while  to  clear   the  percentage  of  interests  is   not  high.   • Smaller  debts  will  take  longer   period  to  clear     The  key  factor  for  clearing  your  debt  is  this:  Focus  on  1  debt  at  a  time.   If  you  spread  payment  amount  and  pay  smaller  amount  to  pay  off  every  debt   that  you  have.  You  actually  take  longer  period  to  clear  each  debt  and  the   interests  will  continue  to  accumulate.     In  the  long  run,  it  will  create  in  impression  in  your  mind  that  you  will  never   be  able  to  clear  your  debts.  This  will  cause  you  to  fell  into  the  ‘Debt  Mindset’   trap  and  you  will  live  your  life  with  debts.    

4. Budget Your  Income   Are  you  a  saver  (Type  A)  or  spender  (Type  B)?   Type  A:  Save  a  portion  of  your  monthly  income  and  spend  the  rest.   Type  B:  Spend  your  monthly  income  first  and  save  whatever  that  is  left.   I  am  sure  you  have  heard  this  many  times.  It  is  quite  obvious  that  you  need  to   be  Type  A.  Why?  It  is  because  you  may  overspend  and  you  will  end  up  with   little  or  no  saving  for  your  future.   So  if  you  are  Type  B,  you  need  to  change  to  Type  A.   However,  by  being  a  Type  A,  is  it  enough?   The  answer  is  NO!   Many  people  save  for  the  sake  of  saving  because  they  are  told  to  save.   Rich  people  don’t  save  to  save.  They  save  to  INVEST!   I  will  explain  more  about  investing  at  the  later  part  of  this  eBook.   Instead  of  saving  without  knowing  purpose  of  saving,  it  is  better  to  budget   your  income  with  purpose.  How  do  you  do  it?   Similar  to  what  Li  Ka  Shing,  richest  man  in  Asia  &  top  10  richest  men  in  the   world,  evocates,  you  should  split  your  income  into  5  parts:   1. 2. 3. 4. 5.

30% for  investments   20%  for  long-­‐term  needs  (including  insurances)   10%  for  education   10%  for  leisure  &  entertainments   30%  for  living  expenses  

Rules to  follow  for  budgeting   You  may  make  changes  to  the  funds  but  MUST  keep  to  these  rules:   1. 2. 3. 4. 5.

The priorities  of  the  funds  are  according  to  the  order  as  above.   You  can  have  between  4  –  7  funds,  no  more  or  less  than  that.   The  #1  fund  has  to  be  Investment  fund.   Investment  fund  cannot  be  less  than  20%.   Leisure  &  entertainment  and  living  expenses  funds  cannot  be  more   than  50%  in  total.  

To feel  the  effectiveness  of  this  budgeting,  I  recommend  you  to  prepare  5   envelopes  or  jars.  For  the  first  6  months,  place  your  income  into  the   envelopes  or  jars  according  to  the  ratio  that  you  want  to  budget.   In  6  months  time  you  will  be  able  to  see  that  you  have  real  saving  in  your   accounts.  After  6  months,  open  up  a  new  bank  accounts  for  each  fund  or   selected  funds.  

5. Know The  True  Value  Of  Your  Spending     Most  rich  people  have  the  habit  of  ‘Delay  Gratification’.  In  simple  term,  delay   gratification  means  to  delay  your  enjoyment  to  the  future  and  focus  on   accumulating  the  assets  now.   With  the  temptation  of  stuffs  in  the  markets,  sometimes  it  is  hard  to  resist   buying  things  that  we  want.  However,  many  times,  we  bought  things  that  we   actual  don’t  need  them.   So  how  do  you  control  yourself?   This  method  served  me  well  and  has  helped  me  to  control  myself  from   spending  unnecessary  money.   It’s  the  concept  of  ‘Future  Value’.   Use  a  financial  calculator  to  calculate  the  future  value  of  the  amount  that  you   are  going  to  spend  to  derive  if  it  is  worth  to  spend  it  now.   For  example,  every  morning  I  will  spend  $7  on  a  cup  of  premium  coffee.   How  do  you  know  if  this  cup  of  coffee  is  worth  spending?   Let  say,  if  you  did  not  spend  this  $7,  you  will  save  it  into  an  investment.   This  investment  will  be  20  years  long  and  you  will  receive  15%  per  annum  of   returns.   If  you  punch  these  figures  (PV  =  $7,  I  =  15%,  Periods  =  20)  into  your  financial   calculator,  the  future  value  of  this  $7  of  today  money  will  be  $114.57  in  20   years  later.     In  other  words,  if  you  drink  a  cup  of  premium  coffee  a  day,       Present  Value   Future  Value  

1 Day   $7   $114.57  

1 Month  (28  days)   $196   $3,207.96  

1 Year   $2,555   $41,818.05  

If  you  have  spent  $2,555  on  premium  coffee  in  a  year,  you  are  losing  the   potential  of  having  $41,818.05  in  20  years  through  the  investment.   Wow!  That  is  a  lot  of  money  to  be  spending  on  coffee.  Will  you  still  do  it?   Every  time  before  you  spend  any  amount  on  something,  calculate  the  future   value  and  ask  yourself  it  is  worth  spending  on.   Why  most  rich  people  practice  ‘Delay  Gratification’  is  because  they  knew  that   they  would  have  more  money  to  spend  in  the  future  if  they  invest  first.  

Skill #5:  Protect  your  wealth   “Protect  What  You  Have,     Before  It  Turns  Into  What  You  Had”   -­‐  Unknown  

Protect  your  wealth,  or  else  you  are  only  the  one  to  be  blame  of  the  lost.   It  is  that  simple,  yet  I  have  seen  many  people  not  protecting  their  wealth  and  put   them  at  risk.  Why  work  so  hard  to  accumulate  them  and  risk  it  away?   Most  people  chose  the  wrong  approach  when  comes  to  protecting  their  wealth.   They  chose  the  approach  to  accumulate  more  wealth  first  before  they  protect  it.   Wrong!  You  protect  your  wealth  along  the  way.   Let  me  gives  you  an  example:   You  live  in  a  small  house  in  your  neighborhood  with  your  family.   What  do  you  do  to  protect  your  house?   You  may  build  metal  gates  and  window  frames  to  prevent  people  from  breaking   into  the  house.   Say  now  you  upgrade  your  house  size  to  a  bungalow,  what  will  you  do?   You  will  build  fence  around  your  premise  to  prevent  people  from  entering  into   your  bungalow.   If  now  you  upgrade  to  a  1-­‐level  castle,  what  will  you  do?   You  will  build  a  low  wall  around  your  castle.   If  you  upgrade  to  more  levels  on  your  castle,  you  will  also  increase  the  height  of   the  wall.  Am  I  right?   That  is  an  example  and  theory  that  most  people  know.  But  in  actual  fact,  most   people  took  the  action  to  build  their  home  from  a  small  house  to  a  castle  without   any  protection.  If  something  were  to  happen  in  between  the  process,  they  stand   the  risk  to  lose  the  home  and  will  have  to  start  over  again.   When  you  have  protections  in  place,  you  can  protect  your  wealth  in  unforeseen   circumstances.   What  kind  of  unforeseen  circumstances  will  affect  your  wealth?  For  examples  …   • • • • •

Personal accident   Death   Critical  Illnesses   Hospitalization   Disability  

Your income  or  your  saving  will  be  affected  when  such  unforeseen   circumstances  will  to  hit  you  or  your  family.   Does  this  sound  familiar?   Yes,  you  are  right.  It  is  about  insurance.   Don’t  get  me  wrong.  I’m  not  here  to  sell  you  any  insurance  products.     I  just  wanted  to  stress  the  importance  to  protect  the  wealth  that  you  have.   Now,  I  will  share  with  you  how  you  should  tailor  your  insurance  so  that  you  will   not  overspend  your  money  on  insurance  that  are  unnecessary.   Disclaimer:  The  illustration  below  is  general  and  should  be  use  as  reference  only.  Please  consult   your  own  local  (and  trusted)  insurance  agent  to  help  you  to  review  your  insurance  portfolio.   Illustration  may  not  be  applicable  to  all  people.  

When comes  to  insurance,  there  are  several  different  categories.   (Please  correspond  each  category  according  to  your  local  insurance  definition)   1. 2. 3. 4.

Life insurance   Critical  Illness  insurance   Hospitalization  insurance   Term  insurance  

There are  more  categories  but  they  will  not  be  covered  in  this  eBook.   Please  do  your  due  diligence  to  find  out  more  from  your  insurance  agent.   Let  me  ask  you,  do  you  have  such  experiences?   An  insurance  agent  contacts  you  to  do  some  financial  review.  After  some  fact   finding  and  analysis,  the  agent  says  that  you  are  under  insured  and  you  need  to   get  more  insurance.  Because  it  makes  sense  at  that  point  of  time,  you  bought  an   insurance  product  to  get  yourself  protected.  Over  the  next  few  years,  you  have   several  more  such  encounters,  either  from  the  same  agent  or  other  new  agents,   and  you  purchased  more  insurance  products.   Have  you  ever  wonder  if  you  are  properly  insured  and  are  your  insurance   products  are  effective?  Lets  find  out  …   Why  do  you  need  insurance?   From  what  you  had  read  earlier,  you  will  need  insurance  to  protect  your  wealth.   For  circumstances  such  as  …   • Cover  for  your  huge  medical  bills  if  you  are  diagnose  with  critical  illnesses.   • Leave  an  amount  of  money  for  your  family  to  sustain  for  a  period  of  time,   in  event  that  you  move  on  to  the  other  world.   These  are  some  examples  of  circumstances  that  with  insurance  protection,  you   can  also  protect  your  wealth.  

With that,  do  you  agree  with  me  that  at  different  stages  of  your  life,  you  will   need  different  level  of  insurance  coverage?   To  put  it  simply,  when  you  have  higher  responsibilities  to  take  care  of,  the  more   insurance  coverage  you  will  need.   For  example,  a  married  man  with  kids  requires  higher  insurance  coverage  than  a   fresh  graduate.  

Source: National  Income  Life  Insurance  Company  

From the  graph  above,  you  can  see  that  your  insurance  needs  increase  as  your   age  because  you  have  more  responsibilities  at  later  stage  of  your  life.   However,  this  will  not  be  applicable,  if  say,  you  choose  to  be  single  for  the  rest  of   your  life,  the  insurance  needs  may  not  increase  that  much  at  the  peak  stages  of   your  life.   As  you  can  see,  as  you  move  into  your  peak  stages  of  your  life,  you  have  more   responsibilities  and  even  have  dependents  after  you  get  married.     Is  this  going  to  be  permanent  for  the  rest  of  your  life?  No.   When  your  kids  are  older,  they  will  start  working  to  earn  their  own  income  to   support  themselves.  At  the  stage  of  your  life,  they  are  no  longer  your  dependents   and  your  responsibilities  will  reduce.   Therefore,  for  insurance  there  are  stages  in  your  life  that  you  will  need   temporary  coverage  to  boost  your  protect  while  most  of  the  time  you  will  need   to  have  certain  permanent  coverage  for  your  whole  life.    

So what  types  of  insurances  will  you  need?   1. 2. 3. 4.

Life insurance  (Permanent  Solution)   Critical  Illness  insurance  (Permanent  Solution)   Hospitalization  insurance  (Permanent  Solution)   Term  insurance  (Temporary  Solution)  

Let me  give  you  a  short  introduction  to  these  4  types  of  insurances  and  why  are   they  are  classified  as  such.   Life  insurance:  Life  insurance  is  also  known  as  ‘Whole-­‐Life  insurance’.  It  covers   the  life  of  the  insured  person  for  his  or  her  whole  life.  In  event  of  death  or  total   permanent  disabilities,  the  insured  amount  will  be  paid  to  the  insured  person  or   the  family.  At  any  point  of  your  life,  you  will  need  to  have  this  coverage.   Therefore,  it  is  classified  as  permanent  solution.     Critical  Illness  insurance:  Critical  Illness  insurance  covers  the  insured  person  in   event  that  he  or  she  is  diagnosed  with  critical  illness  condition.  The  insured   amount  will  be  paid  out  to  the  insured  person.  As  at  any  time  in  life  you  may  be   diagnosed  with  such  illnesses,  therefore,  it  is  classified  as  permanent  solution.   Hospitalization  insurance:  Similar  to  Critical  Illness  insurance,  hospitalization   insurance  covers  the  hospitalization  bills  that  you  may  incur  in  the  hospital.   Therefore,  it  is  also  classified  as  permanent  solution.   Term  insurance:  Term  insurance  is  similar  to  Whole-­‐Life  insurance  but  it  has  a   limited  coverage  period.  Term  insurances  are  used  to  boost  the  coverage  during   the  peak  stages  of  life.  Therefore,  it  is  a  temporary  solution  to  your  insurance   needs.     For  permanent  problems,  you  need  to  have  permanent  solutions.   For  temporary  problems,  you  need  to  have  temporary  solutions.   Unfortunately,  many  insurance  agents  are  using  permanent  solutions  for  all   problems.  This  is  not  beneficial  to  you  because  you  may  be  overpaying  for   insurance  coverage  that  you  might  not  need.   I  would  advice  you  to  contact  your  trusted  insurance  agent  to  have  your   insurance  needs  and  existing  insurance  coverage  reviewed.  With  proper   guidance  and  sufficient  insurance  coverage,  you  should  be  able  to  optimize  your   resources  by  freeing  up  some  cash  from  your  insurance  premium  that  are  not   necessary.        

Skill #6:  Increase  Your  Income   “Money  Is  The  Seed  Of  Money”   -­‐  Jean  Jacques  Rousseau  

Remember  as  mention  in  Skill  #4:  Manage  Your  Money  Wisely,  you  have  learnt:   Net  Saving  =  Income  –  Expenses   You  also  learn  that  you  need  to  budget  your  income  into  5  funds  as  suggested:   1. 2. 3. 4. 5.

30% for  investments   20%  for  long-­‐term  needs  (including  insurances)   10%  for  education   10%  for  leisure  &  entertainments   30%  for  living  expenses    

So why  do  you  need  to  increase  your  income?   1. More  income  =  More  saving  (provided  your  expenses  remains  low)   2. More  money  goes  into  the  investment  funds  to  grow  more  money   3. Better  quality  of  lifestyle  because  more  money  goes  into  each  fund   Here  is  another  reason  why  you  need  to  increase  your  income.   Remember  in  Skill  #3:  Create  A  Strategy  Plan,  I  shared  an  example  of  how  to   break  down  your  goals  to  have  $2.4  million  in  10  years  –  that  is  an  average  of   $1,000  per  day  of  income.   You  may  be  thinking  how  you  can  earn  $1,000  per  day  when  you  only  earn   $2,000  -­‐  $4,000  a  month  (~$100  -­‐  $200  per  day).   In  order  to  achieve  your  $1,000  per  day  target,  you  can  either  …   1. Start  your  own  business  -­‐  higher  earning  power   2. Earn  extra  income  from  additional  sources   With  the  combination  of  multiple  sources  of  income,  achieving  $1,000  per  day  is   much  more  achievable  than  depending  on  one  source  of  income  only.   How  you  can  increase  your  income?   There  are  2  categories  of  avenues  that  you  can  increase  your  income.   1. Typical  bricks-­‐and-­‐mortar  businesses  (offline)   2. Internet  businesses      

Which type  of  business  is  the  best?   There  is  no  best  type  of  business.  Every  business  has  its  pros  and  cons.     Typical  Bricks-­‐and-­‐Mortar  Business   Pros   • Easier  to  build  customer  trust  as   • they  can  see  and  test  the   • physical  products  before   • purchase   Cons   • Location  restriction   • • Target  audiences  are  local   market  before  expansion  into   global  market   • High  operating  costs   • Limited  operating  hours     Typical  bricks-­‐and-­‐mortar  businesses  (offline)  

Internet Business   Low  operating  costs   Global  market   Operates  24/7  everyday   Requires  effective  persuasion   skills  to  attract  customers  

Method #1:  Sell  your  own  products   If  you  have  physical  products,  you  can  set  up  a  store  to  sell  them.     Alternative,  you  can  goes  from  doors-­‐to-­‐doors  to  promote  your  products  and  get   people  to  buy  them.  However,  this  method  will  be  more  time  consuming.   To  be  in  such  businesses,  it  will  be  an  advantage  if  your  products  have  some   competitive  advantages  over  your  competitors.   It  also  requires  good  salesmanship  for  your  sale  staffs  to  be  able  to  convince   customers  to  buy  your  products.   Method  #2:  Sell  your  services   If  you  have  certain  talents  or  skills,  you  can  offer  your  services  to  others.   Such  services  are  engage  by  people  within  the  country,  city  or  neighborhood.   Some  examples  of  services  that  you  can  offer:   1. 2. 3. 4. 5.

Baby sitting   House  cleaning   Tax  preparation   Gardening   Tuition  

The limitation  of  such  services  is  geographical  constraints.   You  can  only  offer  your  services  to  people  that  are  within  certain  location   outreach  that  is  viable  for  you  to  make  profit.    

Internet businesses     Personally,  I  will  recommend  you  to  explore  the  Internet  business  because  most   people  are  connected  on  the  Internet  and  making  purchases  online.     What  are  the  ways  to  start  an  Internet  business  to  increase  your  income?     Here  are  4  ways  to  start  an  Internet  business.   Method  #1:  Sell  your  own  products  online   Similarly,  if  you  have  physical  or  digital  products,  you  can  sell  them  online.   In  this  way,  you  can  reach  out  to  more  buyers  around  the  world  to  buy  your   products.   You  can  do  this  in  2  ways:   1. Set  up  your  own  e-­‐commerce  website   2. Sell  your  products  on  existing  e-­‐commerce  website,  like  Amazon,  eBay,  etc   Method  #2:  Sell  your  services   If  you  have  certain  talents  or  skills,  you  can  offer  your  services  online.   There  are  people  around  the  world  who  are  looking  for  talented  individuals  to   help  them  to  do  some  works.   Some  examples  of  services  that  can  be  offer  online:   • • • • •

Writing Web  Design   Graphic  Design   Programming   Video/Music  composing  

Method #3:  Sell  an  affiliate  product   If  you  have  nothing  to  sell  online  and  no  services  to  offer,  you  can  sell  someone   else  products.  They  are  also  known  as  affiliate  products  and  you  are  the  affiliate.   By  selling  affiliate  products,  it  saves  you  the  time  to  produce  the  products.   You  are  just  like  a  third-­‐party  marketing  company  that  you  market  your  client’s   products  and  you  are  paid  a  commission  for  the  sales  that  you  made.   Method  #4:  Sell  Advertising   Blog  sites  are  a  good  places  to  sell  advertising  because  they  have  high  number  of   people  to  view  their  website.  With  the  high  exposure  rate,  companies  are  willing   to  pay  an  amount  to  blogger  who  advertise  their  advertisements  on  their  blogs.   If  you  have  a  high  traffic  blog  or  if  you  intend  to  stay  a  blog,  selling  advertising  is   a  good  option  for  you  to  consider.  

Skill #7:  Invest  –  Put  Your  Money  To  Work   “How  Many  Millionaires  Do  You  Know  Who  Have  Become  Wealthy   By  Investing  In  Savings  Accounts?  I  Rest  My  Case”   -­‐  Robert  G.  Allen  

One  cold  hard  truth  about  wealth  accumulation  -­‐     you  can  NEVER  get  rich  by  saving  money.  NEVER!     If  you  don’t  believe  me,  you  may  go  ahead  to  Google  the  top  50  or  100  richest   men  or  women  on  earth.  See  if  any  of  them  are  rich  because  they  saved  enough   money  to  be  rich.     All  rich  people  have  some  form  of  investments  in  their  portfolio  to  help  them  to   accumulate  wealth.  So  if  you  have  the  belief  of  not  getting  involved  in  any  form   of  investments  (which  I  used  to  have  the  same  belief),  you  might  want  to   reconsider  before  it’s  too  late.   If  the  rich  invest  to  get  rich,  so  should  you.   You  might  be  thinking  ‘But  I  know  nothing  about  investing’.   I  have  heard  too  many  people  telling  me  ‘Nick,  I  will  not  invest  because  investing   is  too  complex.  I  do  not  have  any  background  or  knowledge  about  finance.  It  is   better  that  I  keep  myself  away  from  investing.’   Guess  what?  So  do  I.     I  do  not  have  background  and  knowledge  about  finance  &  investment  in  the  past.   I  graduate  with  a  Degree  in  Information  System  Management.   I  am  trained  to  write  programs  in  the  computers.   I  know  nothing  about  finance  and  investment.   There  are  many  different  type  of  investments  in  the  market  and     there  are  different  approaches  and  techniques  to  invest  and  make  money.   There  is  no  the  best  way  to  invest  and  make  sure  that  you  will  make  money.   I  always  advise  my  peers  to  go  with  the  approach  and  technique  that     you  better  understand  and  keep  away  from  those  that  you  don’t.   It  takes  time  to  learn  but  it  always  better  than  you  don’t  start.   NOTE:  NEVER  invest  in  anything  that  you  do  not  know.     Many  great  investors  always  say  that  ‘Always  stay  invested.’   It  is  always  better  to  stay  invested  than  not  investing  at  all.   In  the  earlier  part  of  this  eBook,  I  mention  that  you  need  to  save  money  to  invest.   So,  what  is  the  benefit  of  investing?    

"Compound Interest  Is  The  8th  Wonder  Of  The  World.     Those  Who  Understand  It  Earn  It.     Those  Who  Don't  Pay  it."   -­‐  Albert  Einstein  

By  investing,  you  will  take  advantage  of  a  great  tool.   What  is  that?   It  is  the  POWER  OF  COMPOUNDING  because  it  can  help  you  to  get  rich  if  you   know  how  to  correctly  utilize  it.   So  what  is  this  ‘Power  of  Compounding’?     To  put  it  simply,  we  take  an  initial  capital  and  put  it  into  any  instrument  that  can   grow  interests.  It  can  be  in  the  bank,  mutual  funds,  stocks  or  property.     The  interests  accumulated  will  be  remaining  in  the  instrument  to  continue  grow   more  interests.  Over  a  period  of  time,  the  interests  accumulated  will  be  a  huge   amount.   $12,000.00   $10,000.00   $8,000.00   Interests  



$4,000.00 $2,000.00   $0.00   0  











Let me  give  you  an  example:   Look  at  the  graph  above,  say  you  make  a  one-­‐time  invest  of  $1000  into  an   investment.  This  investment  earns  you  5%  interests  every  year.   However,  instead  of  taking  out  the  interests  that  you  earn  every  single  year,  you   leave  the  interests  in  investment  to  grow  more  interests.   As  you  can  see  from  the  graph,  your  initial  capital  remains  at  $1000,  but  say   after  50  years,  this  investment  has  help  you  to  earn  around  $10,000  worth  of   interests.   So,  if  you  have  more  money  to  invest,  over  the  same  period  of  time,  you  will  have   earned  even  more  money.  That  is  the  reason  why  every  rich  people  invest  and   get  him  or  herself  richer.    

In the  current  market,  there  are  many  different  types  of  investments,  some   examples  are:   • • • • • • •

Bonds Stocks   Mutual  Funds   Property   Commodities  (Gold,  Silver,  Oil,  etc.)   Alternative  (Foreign  Exchange,  Options,  Futures,  etc.)   Etc.  

Of course,  there  are  also  many  different  strategies  on  how  to  invest,  some   examples  are:   • • • • • •

Value Investing   Growth  Investing   Diversification   Dollar  Cost  Averaging   Buy  and  Hold   Etc.  

There is  no  one  single  investment  type  and  strategy  that  will  make  you  rich.  Like   wise,  having  multiple  investment  types  and  strategies  also  does  not  means  that   you  will  get  rich.   All  form  of  investments  has  risks  involved.  You  can  either  get  rich  or  become   bankrupt  from  it.   However,  there  are  3  key  fundamentals  about  investing  that  you  should  know  if   you  are  a  beginner.   1. Know  yourself   Before  you  select  a  particular  investment  type  and  strategy  to  invest,   always  know  what  type  of  investor  you  are.   Find  out  what  type  of  investor  are  you  in  these  areas:   • • • •

What is  your  risks  appetite?   What  is  your  purpose  of  investing?   What  is  your  time  horizon  you  intend  to  invest?   What  types  of  investment  styles  are  not  suitable  for  you?  

Note: Always  remember  that  investment  is  a  tool  or  channel.  It  should   compliment  with  your  plan  to  help  and  achieve  your  financial  goals.  It   shouldn’t  be  you  compliment  into  the  investment  type  and  strategy.   Remember:  Do  not  invest  in  anything  that  you  do  not  know.  

2. Always acquire  more  knowledge  on  investing   It  is  ok  if  you  are  not  a  professional  investor  because  everyone  starts  from   the  beginning  just  like  you.     However,  what  differentiate  the  elite  investors  and  average  investors  is   that  they  constantly  learning  new  things  about  investments  and  strategies.     By  sharpening  their  skills  on  investing,  they  are  able  to  spot  better   opportunities  and  make  better  returns.   The  best  way  to  learn  about  investing  is  to  learn  from  the  real  investors   who  made  lots  of  money  from  it.     There  are  many  investors  who  are  conducting  courses  to  teach  people   how  to  invest.  However,  these  courses  usually  come  with  a  price.   If  you  are  really  into  investment,  I  recommend  you  to  take  up  one  of  the   course  of  your  choice.  The  reasons  are  …   • It  shortens  your  learning  curves.   • You  can  learn  from  the  coach  investment  experiences.   • You  will  have  support  from  the  coach  and  his  or  her  team.   As  much  as  been  said,  there  are  still  people  out  there  prefer  not  to  pay  for   the  courses  because  they  find  them  expensive.  They  took  the  DIY  approach   to  learn  investments  and  invest  on  their  own  knowledge.   I  have  seen  many  people  got  ‘burnt’  from  the  investment  market.     Some  of  them  lost  their  family,  house,  job,  etc.   Is  it  worth  saving  the  course  fee  and  expose  yourself  to  such  high  level  of   risks?   I’m  not  saying  that  everyone  will  end  up  so  if  they  choose  not  to  attend   any  courses  and  learn  investing  on  their  own.  I  am  just  saying  that  the   risks  in  there.  You  get  to  decide  on  your  own.   With  that,  I  leave  you  a  quote  by  Derek  Bok:   “If  you  think  education  is  expensive,  try  ignorance.”   3. Exercise  Independent  Thinking   You  are  responsible  for  your  own  investment  gain  and  lose.  Therefore,  you   are  responsible  for  your  own  investment  decisions.   It  is  common  in  the  market  that  people  share  the  ‘Next  Hot  Tips’.   It  is  ok  to  use  them  for  references  but  remember  to  do  your  due  diligences.  

If you  really  have  to  ask  me  what  investment  and  strategy  I  do,  here  is  one.   Shares  -­‐  Value  Investing   One  of  the  investments  that  I  am  involved  is  buying  shares  and  the  strategy  that   I  learnt  and  adopt  is  Value  Investing.   This  is  also  the  strategy  that  Warren  Buffett,  world  richest  man  and  probably  the   best  investor,  uses.   Unlike  stock  trading,  where  you  have  to  look  at  graphs  and  charts  to  make  you   buying  and  selling  decisions,  value  investing  looks  at  the  fundamental  of  the   businesses.   Value  investors  invest  into  the  businesses  from  the  perspective  that  they  are   businessman  who  are  investing  into  a  part  of  the  business.   So  what  is  value  investing?   In  simply  term,  value  investing  means  investing  into  a  business  when  it  is   undervalued  or  at  a  discount.   For  example:   Based  on  the  valuation  of  the  business  using  their  financial  numbers,  Business  A   worth  $1  per  share.  In  the  stock  market,  the  share  price  of  Business  A  is  selling   at  $0.50.   If  the  business  has  strong  growth  potential,  it  has  the  capabilities  to  earn  more   profits  in  the  future.  This  means  that  the  share  price  will  most  likely  to  rise.   With  the  current  price  at  $0.50,  value  investors  will  buy  shares  of  this  business   now  because  it  is  like  buying  the  share  at  a  discount.   By  doing  value  investing  you  will  look  at  the  following  factors:   • Business  Model  –  how  the  business  earns  money?   • Economic  Moats  –  does  the  business  have  strong  moats  against   competition?   • Management  –  does  the  business  have  a  strong  management  team  to   grow  the  business?   • Numbers  –  are  the  financial  numbers  healthy?   • Valuations  –  what  are  the  business  financial  ratios?   This  is  just  the  tip  of  the  iceberg  about  value  investing.  If  you  are  interested  to   know  more  about  value  investing,  it  is  recommended  to  read  more  related  books   or  attend  courses  about  value  investing.   In  my  opinion,  with  this  strategy,  you  get  to  learn  how  to  invest  in  shares  and   also  get  to  learn  how  to  be  a  good  businessman  to  evaluate  businesses.  

Skill #8:  Networking   “You  Are  The  Average  Of  The  5  People     You  Spend  The  Most  Time  With”   -­‐  Jim  Rohn  

Lets  do  a  simple  exercise.   • • • •

Think who  are  the  5  people  that  you  spend  most  of  your  time  with.   Describe  how  are  the  lifestyle  of  these  5  friends  of  yours.   Describe  the  topics  you  and  your  friends  chat  about  most  of  the  time   Describe  the  wealth  that  your  friends  personally  have  (not  family  wealth)  

Are your  friends  the  type  of  people  that  you  want  to  be?   If  it  is  a  ‘No’,  then  it’s  time  to  change  something.   Don’t  get  me  wrong,  I  am  not  asking  you  to  ‘un-­‐friend’  your  friends.   They  are  good  people  and  I  totally  respect  them.   However,  if  you  want  to  richer  you  need  to  get  yourself  surrounded  with  people   who  are  rich  –  the  kind  of  rich  people  that  you  want  to  be.   Why?  You  may  ask.   Have  you  wonder  why  rich  people  hang  around  with  people  who  are  also  rich?   It  is  not  because  they  become  arrogant  after  they  get  rich  and  choose  to  put   themselves  into  higher-­‐class  status.   The  main  reason  is  because  the  topics  they  talk  about.   What  are  the  topics  that  these  2  groups  talk  about  most  of  the  time?   Average  People   Gossips   Complains   Media  News/Entertainments   Latest  TV  Series/Dramas  

Rich People   Businesses   Investments   Opportunities   Experiences  

When  rich  people  get  together,  they  are  usually  on  the  topics  of  business  and   investments.  They  will  share  their  experiences,  both  successes  and  failures,  and   opportunities  how  to  make  money.   Therefore,  to  get  rich,  get  yourself  surround  with  more  rich  people  so  that  you   will  get  to  learn  more  from  their  experiences  and  opportunities.  

8 Skills  To  Become  Rich   The  Millionaire  Way  

    Develop   Rich     (Wo)man   Mindset   Set  Clear   Financial   Goals  


8 Skills     To   Become   Rich  


Create A   Strategy   Plan  

Manage Your  Money   Wisely  

Increase Your  Income  

Protect Your   Wealth  

Conclusion I  hope  you  have  gathered  some  valuable  information  from  this  eBook.   Of  course,  this  eBook  is  not  fully  comprehensive  to  cover  all  aspects  in  details.   However,  it  aims  to  provide  you  with  useful  information  to  get  you  to  ponder   and  kick  start  your  path  to  financial  success.     Remember  financial  success  does  not  happen  overnight.  It  will  take  time  for  you   to  achieve  whatever  you  want  and  be  whoever  you  want  to  be.  But  before  that   could  happen,  you  need  to  take  ACTIONS!   Path  to  financial  success  is  a  continuous  learning  journey.  You  will  have  to  keep   learning  from  your  experiences  and  others  experiences.   Last  but  not  least,  there  are  enough  resources  for  everyone  to  be  rich  and   everyone  deserve  a  better  lifestyle  in  his  or  her  current  lifetime.  If  you  become   rich  one  day  in  the  future,  remember  that  someone  somewhere  were  once  like   you  and  wish  to  become  richer  and  live  a  better  lifestyle.   Do  share  your  love  and  knowledge  to  help  more  people  to  achieve  their  dreams.   With  that,  I  wish  you  all  the  best  in  your  path  to  financial  success  and  may  your   dreams  come  true!       To  your  success!   Nick  Lee   Founder  

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