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  • dyan.ramos
    [BLOGGER_PHOTO_ID_5465747398083047570] 7
    Message 1 of 1 , May 6, 2010
      by DYAN RAMOS

      The following are list of things that were probably not taught to many
      of us in childhood. Things that we regret not knowing from the start,
      yet we will appreciate once we start practising them now. I listed them
      down based on my experience mingling with businesspeople & experienced
      financial coaches themselves. Friends, enjoy the "7 Secrets of the Rich'
      1) Rich people believe failures are essential part of growth and
      success. It is not a few times when we have been conditioned not to make
      mistakes -- whether at home, school or work. Most of us grew up "afraid
      to fail" because we're used to have it accompanied by a punishment. The
      worst is people in our past used these failures and mistakes against us,
      that made us go for the safer sail. Notice therefore that 90% of
      Filipinos would go for job security (afraid to take risks) rather than
      aim for perfection in business . Because we're afraid of the unknown and
      the unfamiliar, we'd rather not talk about money and instead go on with
      our mediocre life expecting everyday to be the same at the office. Yet,
      when you think of the most successful and the wealthiest people on
      earth, none of them talked about a perfect journey while in the process
      of getting rich. Nanay Socorro of National Bookstore, Mr Henry Sy & Mr.
      John Gokongwei Jr. each had his/her own version of downfalls & failures
      before they made it to the top. The big secret therefore is to
      strengthen your tolerance to failure, and to get yourself educated to
      lower the risk especially in doing business and investing. In today's
      information age, almost all questions about life have their answers
      somewhere. Take advantage of the information technologies like the
      internet, wireless communication etc. to get answers and to pacify your

      2) Rich people are not the smartest, they just have better money
      managemement habits. The wealthiest of men (most of them from childhood)
      practice proper handling of finances and allocating their income into
      different purposes (e.g. 50% of income goes to Necessities, 10% goes to
      Charity or Give Account). The discipline to stick to the habit is
      already within their being as they have been practising it for many
      years. They are also skilled in differentiating Assets from Liabilities,
      and in handling their Financial Statements. They know for instance that
      Assets are properties that put money INTO their pockets while
      Liabilities are things that take money OUT of their pockets. A house may
      be an Asset if it is being rented & you get monthly cashflow from your
      tenants, while it can also be a Liability if you are living on it &
      paying monthly dues for its mortgage. Same with a car, if you use it for
      business, it is an Asset; yet, if you bought it for personal use &
      leisure it becomes a Liability. The wealthy are skilled in updating
      their financial statements, means they're taking account of every peso &
      every centavo. For ordinary Filipinos to have access on how to start
      writing a financial statement, the rich recommend getting a mentor who
      can teach you the basics of personal & business finance. You'll discover
      that it really is just simple math, you don't need to be a wizard in
      order to become financially successful.

      3) Rich people value the spirit & culture of sharing. In a world where
      most people think scarcity, the rich believe that resources are abundant
      and that the world is overflowing with opportunities. While the poor
      practice the infamous "crab mentality" habit (pulling down whoever's on
      top), the rich like the idea of seeing everyone succeed in business &
      life. You may have witnessed this among the circles of Chinese
      businessmen where they push each other to become richer because by then,
      their own businesses improve as well (i.e. they get more potential
      investors, people have more purchasing power, the economy gets stronger)
      . These Chinese businessmen protect themselves by protecting others
      first. The wealthy recommend an average person to practice sharing
      everyday -- share information, ideas, opportunities and resources to
      others so that once wealth is in his hands, he is ready to grow it. If
      one wants to be successful and truly wealthy, it is crucial that he
      gives up attachment to money and material wealth. The most valuable
      factor in your journey to becoming financially free is the mindset. It's
      not about how much you have now, but how ready you are for future
      wealth. Share what you have -- be a generous giver and an excellent
      receiver as well. Feel like you are already wealthy by having the
      "abundance mentality". The world is full of blessings & opportunities if
      you just look around & seek for them.

      4) Rich people use the art and science of leverage in business. Leverage
      means using OPR or "Other People's Resouces" (i.e. time, money, talent,
      skills) to speed up one's growth in business and in life. It is indeed
      never new to the wealthy to define an authentic business as that with
      atleast 500 people working for the owner or with the owner as partners.
      It's just natural (a universal rule), nobody gets successful in life by
      doing it alone. That's why 90% of small business owners fail in the
      first 5 years due to mismanagement as backed up by DTI. Small
      businesses, specifically traditional ones, find it hard to expand with
      just a few workers because their income reaches a certain limit. The
      owner of a small business usually runs out of money or energy after a
      few years of operation. It lacks a system, and the power of leverage.
      Yet, take a look at what Mark Zuckerberg did with Facebook. As the
      youngest billionaire quoted by Forbes magazine, he reaches out to
      billions of Facebook users worldwide and leverage on them & and his
      system to earn $150 million annually from his advertisers. It means he
      can leave the business operation to his workers & the system while
      earning (a great example of "people & system working for him, and NOT
      him working for the business"). There are thousands and thousands of
      business ideas being created every hour at different places in the
      world. Yet, they are not being executed because of lack of knowledge on
      systems and the use of leverage.

      5) Rich people think long-term. While the poor spend for their present
      lifestyle, the rich think long-term by buying Assets (e.g. real estate
      properties, businesses) that could generate passive income (income
      without work) and eventually give them time to enjoy their wealth. The
      reason most employees remain broke is that they buy Liabilities (e.g. a
      car, a house under years of mortgage) that take money out of their
      pocket. While the poor and middle class spend for now, the richest of
      people believe that the secret to long-term wealth is to "delay
      gratification". Thus, they add more to their passive income generators
      (e.g. buy more properties, invest more on paper assets & businesses) so
      that in the future they could enjoy their wealth. They know for a fact
      that Financial Freedom means having not only the money but BOTH the
      money & the time. Lots of people nowadays may find excessive cash is not
      really that hard to earn, but how many of us can really enjoy these
      cash? How many can take vacations for the whole year & come back to find
      their income still flowing or even getting stronger? Not a lot I could
      guess. Like what my mentors would always say "better work your ass off
      for the first 5 years & enjoy wealth for the rest of your life THAN work
      easy all your life without ever having a chance to enjoy what you've
      worked for." Yet as crazy as it may sound, statistics show that most
      Filipinos would rather stick to job security than start a business full
      time. There must be something wrong somewhere with the way we were
      raised and the values that were instilled in most of us.

      6) Rich people prioritize financial education. One of the biggest myths
      in business believed by many is that a huge capital (let's say, 20
      million pesos) should be available before you can do business to enjoy
      the success of business tycoons like Mr. Henry Sy. Ofcourse capital
      plays a role in business, but it shouldn't be the first priority. If you
      talk to any of the wealthy people living today, they will tell you the
      same thing -- focus on your financial education first. Get yourself
      educated in matters of business. There are thousands of books written
      about leadership, success and getting rich (e.g. "Secrets of the
      Millionaire Mind" by T. Harv Eker & "Rich Dad, Poor Dad" by Robert
      Kiyosaki are highly recommended). These authors gave us a chance to
      access the minds of the wealthy & what made them successful. There are
      also seminars & workshops being held by financial gurus & financial
      education advocates. Their aim is to make it available for ordinary
      people the secrets & the values practised by the wealthy. Take advantage
      of these opportunities. David Bach, an American author once said
      "financial education needs to become a part of our national curriculum
      and scoring systems so that it's not just the rich kids that learn
      about money... it's all of us."

      7) Rich people find mentors that they could model and learn from. This
      is perhaps the most important of all the 7 secrets mentioned above.
      Because without a mentor, somebody won't know where & how to start. If
      you do not have a "rich dad" to model, the rich recommend that you
      search for virtual mentors (i.e famous authors & inspirational speakers)
      or find a group from which you could learn BOTH the mindset and the
      skill set to be able to make it successful in business. Remember to look
      for mentors who have the experience and a good track record that prove
      their success. One of the great things about having mentors & coaches is
      that you can leverage on their past failures & experiences. Means, you
      do not have to undergo the same trials & downfalls because what your
      mentors present to you is already the proven road. Friends, family
      members & colleagues who aren't experienced in business don't count. Why
      listen to these people while deciding for something when they haven't
      even proven to be financially free themselves? This is insane, yet most
      Filipinos are guilty of this. Environment, no doubt, plays the most
      influence in a person's decision. If you want to get ahead of the
      business game & in life, surround yourself with people who can build you
      up & people you can model. True enough, if you want to learn yoga, you
      find a yoga coach. And if you want to learn business, you find a
      business coach. It's pure simple logic.
      For more articles on financial education, and to witness the power of
      teamwork to create wealth from zero... Sign-up on: www.ca2020.net
      <http://www.ca2020.net/> (an invite by DYAN RAMOS)

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