Wednesday, 21 December 2011

Review of Midas Touch by Donald Trump and Robert Kiyosaki

I have bought many of Robert Kiyosaki's books and I have great respect for him, however, I have found that many parts of his latest books are the repeat of his earlier books. It seems he has run out of new ideas and in this book he also repeated many of his cash flow quadrants and BI triangle stuff.

Individually, Donald Trump and Robert Kiyosaki are both good writers, but when they come together to work on a same book, the result is not great. The good news is that I still have learnt some new things from this book.

The Midas Touch Five Fingers Represent:

The Thumb: Strength of Character, ability to turning bad luck into good luck.

The Index Finger: F.O.C.U.S, focus on what is really important and what you really want.

The Middle Finger: Establish a strong brand. A product or service without a strong brand is a commodity.

The Ring Finger: Relationships, every business is a people business; you need great partners, you should be a great leader to inspire your employees and need to be responsible for your customers.

The Little Finger: Little Things That Count. There are huge difference between little things that count and thinking small.

With Midas Touch you can turn your small business into a large B quadrant business.

Wednesday, 30 November 2011

Review of Secrets of the Millionaire Mind by T. Harv Eker – Think Rich to Get Rich

This is a book that the author heavily advertises his Millionaire Mind Intensive and other seminars, however, he points out 17 Wealth Files that can inspire many people.

Wealth File #1: Rich people believe “I create my life.” Poor people believe “Life happens to me.”

Wealth File #2: Rich people play the money game to win. Poor people play the money game to not lose.

Wealth File #3: Rich people are committed to being rich. Poor people want to be rich.

Wealth File #4: Rich people think big. Poor people think small.

Wealth File #5: Rich people focus on opportunities. Poor people focus on obstacles.

Wealth File #6: Rich people admire other rich and successful people. Poor people resent rich and successful people.

Wealth File #7: Rich people associate with positive, successful people. Poor people associate with negative or unsuccessful people.

Wealth File #8: Rich People are willing to promote themselves and their value. Poor people think negatively about selling and promotion.

Wealth File #9: Rich people are bigger than their problems. Poor people are smaller than their problems.

Wealth File #10: Rich people are excellent receivers. Poor people are poor receivers.

Wealth File #11: Rich people choose to get paid based on results. Poor people choose to get paid based on time.

Wealth File #12: Rich people think “both.” Poor people think “either/or.”

Rich people live in a world of abundance. Poor people live in a world of limitations. Do you want money or a close relationship with your family? Both! Do you want to focus on business or have fund and play? Both! Poor people always choose one, rich people choose both.

Wealth File #13: Rich people focus on their net worth. Poor people focus on their working income.

Wealth File #14: Rich people manager their money well. Poor people mismanage their money well.

Wealth File #15: Rich people have their money work hard for them. Poor people work hard for their money.

Wealth File #16: Rich people act in spite of fear. Poor people let fear stop them.

Wealth File #17: Rich people constantly learn and grow. Poor people think they already know.

Training and managing your own mind is one of the most important skills you could ever own, in terms of both happiness and success.

Friday, 30 September 2011

Review of Unfair Advantage by Robert Kiyosaki

This is the latest book published by the New York Time's best selling author of Rich Dad, Poor Dad Robert Kiyosaki. He states that year 2010 was the best year for his entire life, despite the fact that it is the worst year for millions of people around the world.

During the last few years, millions of people have lost their jobs, trillions of dollars have wiped off from the global stock markets and people's pension pots have been shrank by half. Then why Robert Kiyosaki and the rich are becoming richer and richer , while the poor is becoming poorer and poorer? Why even some of the middle class have fallen into the poor class?

Robert Kiyosaki states that this is because he has superior financial education than most people. He has made his fortune during the bad times, while millions around world are struggling. He can see opportunities as a real capitalist, while others only see the danger. He decided to write this book not to brag about his good fortune, but to financially educate people, as brag is never cool, especially about money. 

He summarises the unfair advantages he has over the majority of other people as follow:

Unfair Advantage No.1: Knowledge. Why accumulating assets and focus on cash flow are more important than having a job. The problem is that many people do not distinguish assets from liabilities, and have no idea about their cash flow and balance sheets.

Unfair Advantage No.2: Taxes. The rich uses Limited Companies, Limited Partnerships and Corporations to legally pay less taxes. For employees there is nothing they can do to pay less tax.

Unfair Advantage No.3: Debt. Today debt is money, currency is no longer money. Central banks are printing trillions of fake money globally and inflation is higher than ever. It is silly to save money, where the interest rates are less than the inflation. Lean how to invest your money wisely and increase your financial IQ to use good debt to become rich.

Unfair Advantage No.4: Risk. Investing is not risky, financially uneducated is risky! The higher your financial IQ, the lower your risk and the higher your Return On Investment.

Unfair Advantage No.5: Compensation.

Law of Compensation 1: Reciprocity, Give and you shall receive.
Law of Compensation 2: Lean to give more.
Law of Compensation 3: Leverage the power of compounding financial education.

Robert Kiyosaki did mention all of the above topics in his previous books, but he uses new examples, concepts and stories to emphasise that why financial education is more important than ever!

Saturday, 6 August 2011

Review of 7 Strategies for Wealth and Happiness By Jim Rohn

The author, Jim Rohn's strategies for becoming wealthy and happy:

Strategy 1, Unleash the Power of Goals. Goal setting is very important in order to achieve what you want in your life.

Strategy 2, Seek Knowledge. This is the path to wisdom.

Strategy 3, Learn How to Change. Changer yourself through personal development.

Strategy 4, Control Your Finances. Strive to achieve your financial freedom.

Strategy 5, Master Time. We are know time is money, learn how to manage your time in a smart way.

Strategy 6, Surround Yourself with Winners. Decide who do you want to spend your time with and who do you want to dissociate with.

Strategy 7, Learn the Art of Living Well.

Thursday, 3 February 2011

Happy Chinese New Year 2011! Guo Nian Hao, Gong Xi Fa Cai, Celebrating the Year of the Rabbit

Today is 1 January 2011(western calendar: 3 February 2011), according to the Chinese lunar calendar, the year of the rabbit starts from today.

The date for the Chinese New Year is different every year if you are using a western calendar, but normally falls between January and February.

The Chinese New Year is also the time for family reunion, and it is the Chinese equivalent of Christmas celebrations in western countries.

The Chinese New Year is also called Spring Festival and it is the biggest day for celebration in mainland China, Hong Kong, Taiwan, South Korea, North Korea and Singapore. Chinese New Year is also one of the five major celebration days in Malaysia.

The Rabbit Years:

Years 1891, 1903, 1915, 1927, 1939, 1951, 1963, 1975, 1987, 1999, 2011, 2023, 2035, 2047, 2059, 2071, 2083, 2095, 2107...

Characters of People Born in the Year of the Rabbit:

It is said that people who are born in the year of the rabbit are the luckiest of all among the 12 Chinese zodiac animals. People born in the Year of the Rabbit are articulate, talented, and ambitious. They are virtuous, reserved, and have excellent taste. Rabbit people are admired, trusted, and are often financially lucky.

They are fond of gossip but are tactful and generally kind. Rabbit people seldom lose their temper. They are clever at business and being conscientious, never back out of a contract.

They would make good gamblers for they have the uncanny gift of choosing the right thing. However, they seldom gamble, as they are conservative and wise. They are most compatible with those born in the years of the Sheep, Pig, and Dog.

Chinese New Year Customs

Before the New Year, families clean their homes, this is to clear all the bad things out so they can start a new and fresh year. They also hang New Year scrolls on the gates and main doors, these are normally written in Chinese with golden or black colours on a red background. On New Year's eve from 8PM to midnight, most Chinese people watch the Spring Festival gala on TV, which is a mixture of performances by various Chinese artists, pop stars, dancers and magicians. Children's performances are also very popular.

At around midnight of Chinese New Year's eve, people eat dumplings so that they will be prosperous and have a good year ahead. Combined with this are beautiful and colourful fireworks in the dark sky and the very loud noise of firecrackers to announce the arrival of the Chinese New Year.

On the day of the Chinese New Year, the younger generation will visit the older generation to say "Chun Jie Hao", "Guo Nian Hao", (Happy New Year) and have lunch and dinner together. As it is the biggest family reunion, the best food and delicacies are eaten on this day. Traditionally they include a fish dish, as the pronunciation of fish in Chinese is “Yu” and this sounds similar to the Chinese word for “Abundance”.

Red is the luckiest colour in China and the number eight - “Ba” is also considered the most lucky. This pronunciation is similar to the word “Fa” - “Make Fortune”. In China, people spend fortune to buy number plates, phone and mobile phone numbers ending in eight, the more eight in it the better.

When children say “Guo Nian Hao” “Happy Chinese New Year” to their grand parents, parents and relatives, they get money in a red envelope, which is called “Ya Sui Qian” - red evelope. In Western countries children tend to get presents on Christmas day, but Chinese children get money in red envelopes that they can use on toys if they want.

People tend to wear new clothes both inside and outside on the day, especially children, to symbolise a fresh and clean start. If you were born in the year of the animal which is celebrating, for example if you were born in the year of the rabbit, then you would wear red underwear on Chinese New Year's day for prosperity and good luck.

I wish everyone Chun Jie Hao (Happy Chinese New Year), Tu Nian Da Ji (Wishing You
Good Luck in the Rabbit Year) and Gong Xi Fa Cai (Wishing You Good Fortune in the New Year)!

Friday, 7 January 2011

Review of Own Your Own Corporation by the Rich Dad's Advisor Garrett Sutton

When you are starting a new company, there are several entities to choose from. Currently in the USA, there are six entities available for the entrepreneurs to choose. The Rich Dad's advisor, Garrett Sutton , the corporate attorney explains which are the bad entities, which are the good entities to choose and explains the reasons behind these.

To succeed in business, to protect your assets and to limit your liabilities, you will want to select one of the good entities. Each good entities has its own advantages and disadvantages and has its own specific use. Each one of these good entities is utilized by the rich and the knowledgeable in their business and personal financial affairs.

1. Sole Proprietorship. Garrett Sutton says Sole Proprietorship is a Bad Entity, as this provides no asset protection for the owner. One lawsuit against your business, and your house, savings, and personal assets can all be lost.

2. General Partnership. Garrett Sutton says General Partner is a Bad Entity, as this provides no asset protection for the owner. The reason is exactly the same as the above.

    3. Limited Partnership (LP). This is a Good Entity. A limited partnership is similar to a general partnership with the exception that it has two types of partners.

    The first type is a general partner who is responsible for managing the partnership. A Corporation or an Limited Liability Company can be formed to serve as a general partner of a Limited Partnerships to limit the liability.

    The second type is a limited partner; by definition, he or she is limited to the contribution of capital to the partnership and may not become actively involved in the business of the partnership.

    4. Limited Liability Company(LLC). This is a Good Entity to use in certain situation as it provides the limited liability protection of a corporation and the flow-through taxation of a partnership.

    There are two more features that make LLC unique:
      1) Flexible management structure

      2) Flexible allocation of profit and loss

    5. S Corporation. This is a Good Entity to use in certain situation, but only limited to the US citizens. S corporation has eligibility requirements; a corporation organised must be in any U.S state, but not from outside the U.S. The shareholders, which is limited to 75 people, should all be U.S. Individuals.

    6. C Corporation. This is a Good Entity. We have leant that one entity size does not fit all business scenarios. However, in terms of maximizing deductions and taking advantage of the tax laws for fringe and other benefits, nothing beats C corporation.

    This book also discusses about how to use Nevada Corporation (USA) to take maximum advantages and the benefits of multiple corporation strategies. It also lays out step by step strategies to form four of the above good entities, how to raise money, deal with all of the employee issues and how to protect your entity names etc.

    Many people do not aware that there are good entities and bad entities when they are forming companies. This is a great book to get insights on different entities and choose one or more of entities to maximize the benefits and take advantages of the various tax laws.

    Sunday, 8 August 2010

    Review of Rich Dad's Conspiracy of the Rich, The 8 New Rules of Money by Robert Kiyosaki

    This book is the result of the author, Robert Kiyosaki 's life time research. He believes that the US government is controlled by the multinational corporations, which is controlled by the rich people. The rich want us to “Go to school, study hard, get a degree and find a good job.”- the Poor Dad's philosophy.

    The rich want us to become good employees, so we can work hard for them. Then the government can get paid in the form of tax and our pensions are invested in the stock markets by purchasing the shares of multinational corporations, which makes the rich becoming even richer.

    Robert Kiyosaki emphasize that financial education is more than important ever in this information age and he states that the rules of money has been changed.

    New Rule of Money #1: Money is knowledge

    Today, you do not need money to make money, all you need is good knowledge. The information age has created many young billionaires more than ever before. This includes the founder of Microsoft, Bill Gates; the founders of Google Sergey Brin and Larry Page, the founder of Yahoo, Jerry Yang etc.

    New Rule of Money #2: Learn How to Use Debt

    Most people regard debt is bad or evil, they do not realise that there is good debt and bad debt. The rich knows how to use good debt to leverage the banks and other people's money (OPM) to make them richer and richer.

    An investment property that brings you monthly positive cash flow is good debt as you leverage the bank's money as a form of mortgage, usually 70%- 85% loan to the property value. Initial Public Offering (IPO) is a good example of using OPM by the corporations.

    Robert Kiyosaki says that today debt is money; if you are poor, one of the reasons is that you do not have enough good debt.

    New Rule of Money #3: Learn to Control Cash Flow

    If you want to financial freedom and one day become rich, then you need to learn how to read numbers and need to know how to control your personal cash flow and monitor the global flow of jobs, people and money.

    New Rule of Money #4: Prepare for Bad Times and You will Only Know Good Times

    By increasing your financial IQ, you will be able to see the future better and therefore you can prepare for the worst.

    New Rule of Money #5: The Need for Speed

    Today, we are operating digital money, we can transact money online at the speed of light. Many people are struggling financially because they are simply too slow- they cannot make money faster than the banks are printing.

    New Rule of Money #6: Learn the Language of Money

    Rich dad said when it comes to money 90/10 rule applies. 90% of the world's wealth is controlled by 10% of the population. Most people are financially struggling because they have never been taught the language of money.

    By learning the words of money you have a better chance not to be fooled by the false prophets of money - save money, buy a house, get out of debt and invest for the long term in well-diversified portfolio of mutual funds.

    Inflation is rising fast and the banks are printing money even faster! If you saved £100 last year, then it is only worth £94 this year.

    New Rule of Money #7: Life is a Team Sport, Choose Your Team Carefully

    In this world, no one has achieved great wealth without the help, collaboration and assistance of others.

    New Rule of Money #8: Since Money is Becoming Worth-less and Less, Learn to Print Your Own Money

    Today, the world is in a crisis of financial ignorance and incompetence. Our wealth is being legally stolen via taxes, debt, inflation, and retirement accounts. Since it is the lack of financial education that got us into this crisis, it is financial education can lead us out.

    Robert Kiyosaki believes that we have been financially brain washed and the rich have been benefiting most. It is time for us to increase our financial education by learning the language of money.

    Learn to create, build and buy your own assets and the secret of success is to sell.  The rich always have the products and services that they can sell to you, while the majority of the middle and poor classes often have nothing to sell.

    Ask yourself now: "Do I have any products or services to sell to make any profits?" Remember you can not sell your jobs!

    The more people you serve the richer you will become!