Six Lessons from "Rich Dad Poor Dad"

Lesson 1: Don't Work For Money.

• Avoid Rat Race - Get up, go to work, pay bills, get up, go to work, and pay bills.It is one of life’s biggest traps and lives are run forever by fear & greed. Offer them more money and they continue the cycle by also increasing their spending.
• We should use our imaginations to identify an opportunity to make money (seeing what others miss).
  

Lesson 2: Why Learn Financial Literacy

• It’s not how much money you make, its how much you keep & how many generations you keep it.
• We must know difference between an asset and a liability, and buy assets.
• In financial reporting, reading numbers is looking for the plot/story of where the cash is flowing.

Income Statement (Profit and Loss Statement): measures income and expenses.

Balance Sheet: to balance assets against liabilities.

Asset: something that put money in pocket

Liability: something that takes money out of my pocket.

Financial aptitude: what you do with the money once you make it, how to keep people from taking it from you, how long you keep it, and how hard that money works for you.

Wealth is a person’s ability to survive so many numbers of days forward…or if stopped working today, how long could survive?


Lesson 3: Mind Your Own Business

• Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities or personal effects that have no real value once you get them home.
• Start building a solid asset column before leave home, get married, buy a house, have kids and get stuck in a risky financial position, clinging to a job and buying everything on credit.
• The better understanding of accounting and cash management, the better at analyzing investments and eventually starting and building own company.
• Real assets fall into several different categories.

1. Business that do not require my presence.
2. Stocks
3. Bonds
4. Mutual funds.
5. Income-generating real estate.
6. Notes (IOUs)
7. Royalties from intellectual property such as music, scripts, patents.
8. And anything else that has value produces income or appreciates and has a ready market.

Lesson 4: Taxes and Power of Corporation
Financial IQ is made up of knowledge from four broad areas of expertise:

Accounting/Financial literacy: the ability to read and understand financial statements. To identify the strength and weaknesses of any business.

Investing: science of money making money. Involves strategies and formulas.

Understanding Market: science of supply and demand.

Law: An individual with the knowledge of tax advantages and protection provided by a corporation can get rich so much faster than someone who is an employee or a small-business sole proprietor.

Tax advantages:
Employees earn and get taxed and they try to live on what is left. A corporation earns, spends everything it can and is taxes on anything that is left.

Protection from lawsuits:
The rich control everything but own nothing. The poor and middle class try to own everything and lose it to the government or to fellow citizens.
If own any legitimate assets, consider finding out more about the benefits and protection offered by a corporation as soon as possible.

Lesson 5: The Rich Invent Money
Two kinds of investors:

1. People who buy packaged investment: mutual fund, REIT, stock or bond
2. People who create investment: know how to put pieces of opportunities together, or know people who do so.

Three skills to be second type of investor (to become financially intelligent)

1. See with your mind what others miss with their eyes.
2. Know how to raise capital
3. Know how to organize smart people.

Lesson 6: Work to learn, Don't Work For Money

• Education is more valuable than money in the long run.
• Studying trade, people, business styles, and cultures of other country.
• Leadership need to be learned next.
• Seek work for what they will learn, more than what they will earn. Look at what skills to acquire before choosing a specific profession and before getting trapped in rat race.
• Take a second job that will teach second skills. (Ex. Network marketing)
• The more specialized, the more trapped and dependent on the specialty.
• Know a little about a lot.
• Work with people smarter than we were and bring smart people together to work as a team.

7 Ways of Tax Deduction (Legally)

Deduction 1: INDIVIDUAL
Relief of RM8,000 for an individual in respect is granted automatically.

Deduction 2: EDUCATION FEES (SELF)
An amount limited to a maximum of RM5,000 is deductible in respect of fees expended on any course of study up to tertiary level in any institution in Malaysia recognised by the Malaysian Government, for the purpose of acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications.

Deduction 3: COMPLETE MEDICAL EXAMINATION
Complete medical examination refers to thorough examination expended is deductible up to a maximum of RM500.

Deduction 4: PURCHASE OF BOOKS/MAGAZINES
An amount limited to a maximum of RM1,000 is deductible in respect of the purchase of books, magazines, journals or other similar publications (in form of hardcopy or electronic but exclude newspapers or banned reading materials) for enhancing the knowledge.

Deduction 5: PURCHASE OF PERSONAL COMPUTER FOR INDIVIDUAL
An amount limited to a maximum of RM3,000 is deductible in respect of the purchase of personal computer. No deduction will be granted if the computer is used for business purpose. This deduction is allowed once in 3 years.

Deduction 6: LIFE INSURANCE AND PROVIDENT FUND
i) Insurance premiums paid for policies taken on the life
ii) Contributions to the Employees Provident Fund (EPF)
Total relief for the payment of life insurance premiums and contributions to the EPF or other approved schemes is limited to RM6,000.

Deduction 7: EDUCATION AND MEDICAL INSURANCE
A relief not exceeding RM3,000 is available on insurance premiums in respect of education or
medical benefits.

17 Ways Rich People Think

Rich People: Believe "I create my life".
Poor People: Believe "Life happens to me".

Rich People: Play the money game to win.
Poor People: Play not to lose.

Rich People: Committed to being rich.
Poor People: Want to be rich.

Rich People: Think BIG.
Poor People: Think small.

Rich People: Focus on opportunities.
Poor People: Focus on obstacles.

Rich People: Admire other rich & successful people.
Poor People: Resent rich & successful people.

Rich People: Associate with positive & successful people.
Poor People: Associate with negative & unsuccessful people.

Rich People: Willing to promote themselves and their value.
Poor People: Think negatively about selling & promotion.

Rich People: Bigger than their problems.
Poor People: Smaller than their problems.

Rich People: Excellent receivers
Poor People: Poor receivers.

Rich People: Choose to get paid based on results.
Poor People: Choose to get paid based on time.

Rich People: Think 'both'.
Poor People: think 'either/ or'.

Rich People: Focus on net worth.
Poor People: Focus on working income.

Rich People: Manage their money well.
Poor People: Mismanage their money well.

Rich People: Have money work hard for them.
Poor People: Work hard for money.

Rich People: Act in spite of fear.
Poor People: Let fear stop them.

Rich People: Constantly learn & grow.
Poor People: Think they already know.

I CAN !!!

If you think you are beaten, you are;

If you think you dare not, you don’t

If you like to win, but you think you can’t

It is almost certain you won’t

If you think you’ll lose, you’re lost,

For out of the world we find,

Success begins with a fellow’s will

It is all in the state of mind

If you think you are outclassed, you are

You’ve got to think high to rise

You’ve got to be sure of yourself before

You can ever win a prize

Life’s battle don’t always go

To the stronger or faster man

But sooner or later the man who wins

Is the man WHO THINKS HE CAN!!!

13 Secrets of Napoleon Hill

Published around the world, this book has become an undisputed classic in the field of motivational literature. Think and Grow Rich is the result of more than 20 years of study and research on more than 500 successful men, most of whom have created history and left a legacy for us. 13 Secrets of Napoleon Hill are:

1. Desire
2. Faith
3. Auto-Suggestion
4. Specialized Knowledge
5. Imagination
6. Organized Planning
7. Decision
8. Persistence
9. Power of the Master Mind
10. Transmutation
11. The Subconscious Mind
12. The Brain
13. The Sixth Sense

Road to success

I learned three very simple but important lesson today.

1) The only failure in life is the failure to take action.








2) Our most precious resource is time.









3) Rich people will use money to buy time while poor people will use time to save money.

Herbalife

Recently I was introduced to Herbalife. It claims to be a weight management programme. Just whip up two meal-replacement shakes a day with Formula 1 Nutritional Shake Mix flavour and Formula 3 Personalized Protein Powder for hunger control....

Herbalife Start Now Pack (about RM370) consist of :-

1) Formula 1 (Tropical Fruit Flavour) - A nutritious Mixed Soy Powder Drink which combines carbohydrates, healthy fats, vitamins, minerals and herbs to provide body with the nutrients it needs for optimum health and weight management. Taken as a meal replacement.

2) Formula 3 - As a protein supplement powder to Formula 1, it increases protein intake without adding extra fat or calories from carbohydrates.

3) 50g Tea Mix - Helps reach weight management goals in an extremely effective manner. It will calm cravings so not to turn to calorie-rich snacks that can throw weight management plans off track. Helps protect the body from free radicals.

4) FOC - Herbalife measuring spoon and Herbalife shaker cup.

Free GSC Movie Ticket

“GSC Fun Break” kicks off with a BUY 1 FREE 1 offer starting March 8 to April 30, 2008. This special offer will be valid for the normal seats in GSC cinemas nationwide, with the exception of its boutique cinema, GSC Signature in The Gardens, Mid Valley. To enjoy this offer for movies marked asterisk (*), movie fans need only cut out any GSC cinema listings from the dailies or download GSC Fun Break coupon from www.gsc.com.my. Each patron will be limited to two (2) coupons per transaction and the list of asterisk movies will be listed in the daily cinema listings and GSC website. Movies to watch out for includes:

“Horton Hears A WHO”
From the makers of Ice Age, “Horton Hears A WHO” tells the story of a imaginative elephant, Horton who hears a tiny voice from a speck of dusk in the heart of the Jungle of Nool. Convinced that there is an infinitesimal world living in the speck of dust, he vows to find a safe place for it....even to the extent of fighting his entire community. This family orientated animation movie based on Dr Seuss’ book is scheduled to open March 13 in cinemas nationwide.

10,000 BC
It was a time when men and beast were untamed and the mighty mammoth roamed the earth. A time when ideas and beliefs were born that forever shaped mankind. 10,000B.C. follows a young hunter (Steven Strait) on his quest to lead an army across a vast desert, battling saber tooth tigers and prehistoric predators as he unearths a lost civilization and attempts to rescue the women he loves (Camilla Belle) from an evil warlord determined to possess her.

The Spiderwick Chronicles
From the beloved best-selling series of books comes "The Spiderwick Chronicles," a fantasy adventure for the child in all of us. Peculiar things start to happen the moment the Grace family (Jared, his twin brother Simon, sister Mallory and their mom) leave New York and move into the secluded old house owned by their great, great uncle Arthur Spiderwick. Unable to explain the strange disappearances and accidents that seem to be happening on a daily basis, the family blames Jared. When he, Simon and Mallory investigate what's really going on, they uncover the fantastic truth of the Spiderwick estate and of the creatures that inhabit it.

The Empress & The Warrior
In ancient China, rival kingdoms grapple for ultimate reign. On a battlefield, a dying king commands his daughter, Princess Fei-Er (Kelly Chen) to take the helm and defend their kingdom with help from general Xue-Hu (Donnie Yen). Fei-Er's cousin, Wu Ba (Guo Xiao-Dong) also has his eyes on the throne and sends out assassins to kill the princess. A mysterious man named Duan Lan-Quan (Leon Lai) manages to save Fei-Er from the grisly fate and they fall in love. Fei-Er must choose between following her dreams to elope with Duan and submitting to her duty to defend her kingdom.

The Water Horse
The Academy Award®-winning producer and special-effects team behind The Lord of the Rings join with Revolution Studios, Walden Media (The Chronicles of Narnia) and Beacon Pictures to bring to the screen the magical motion picture The Water Horse. Rooted in one of the most enduring and intriguing legends of our time, the story begins with an enchanted egg...and what hatches will set in motion an adventure that will take a young boy on the unforgettable journey of a lifetime.

27 Dresses
Jane (Katherine Heigl) is a vivacious New Yorker with a great job, a great apartment and a collection of ugly bridesmaid dresses she’ll never wear again. She is so invested in other people’s love lives that she is guilty of “wedding-hopping”, a feat witnessed by Kevin (James Marsden), a newspaper reporter who realizes that a great story on this always-a-bridesmaid is his ticket off the wedding beat. Jane’s precisely organized life becomes permanently disrupted when sexy younger sister Tess (Malin Akerman) arrives from Europe and immediately captures the heart of George, Jane’s boss (Ed Burns). Accommodating Jane is enlisted to plan yet another wedding, but there’s a serious complication: Jane is secretly, and desperately, in love with George.

Awake
How will you feel when you open your eyes? For the young man who has everything – money, a beautiful new wife (Alba) and a lucrative career, what young banking heir Clay Beresford (Christensen) needs most of all is a life-saving heart transplant. Having found a donor, his joy turns to sheer terror when he finds himself in a situation few dare to imagine- he is left completely alert during surgery. In this thriller based on frightening medical phenomenon, things ultimately turn sinister when malpractice starts to look an awful lot like murder.

Tax Guides Needed?

The most discussed subject in the month of April is "income tax". This is because most of the people work as an employee and the deadline for submission and payment falls on 30th April. Everyone will be busy searching the EA form and receipts to do the tax computations.

Income Tax is an amount of money which is taken from your earnings to help towards some of the cost of services we receive in this country. Everyone who earns or receives income exceeding a certain amount will be required to pay income tax. The tax payable for a tax year (a year of assessment) will be based on the income earned for that year. For example, for the tax year 2007 (Year of Assessment 2007 current year basis) you are required to declare your earnings for the year 2000.

The income of an employee from an employment includes wages, salary, remuneration, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (whether such items are paid in money or otherwise) in respect of having or exercising the employment.

Personal relief is a deduction (against your taxable income) given in respect of yourself, wife/husband, children, medical expenses for parents, medical expenses of serious diseases, expenses on supporting equipment for disabled person, any life insurance premiums/contributions to approved provident or pension fund, premium for insurance on education or for medical benefit and annuity premium purchased through EPF annuity scheme.

Self Assessment is a method whereby a taxpayer is responsible for calculating his own tax and making payment within the specified period. Self Assessment is a total process change from the previous formal assessment system.
Under the formal assessment system, taxpayers are required to declare their incomes in the Return Form, submit the Return Form to the Inland Revenue Board (IRB) and the IRB will then raise the assessment. The Notice of Assessment is sent to the taxpayer and based on the tax raised in the Notice of Assessment, payment must be made accordingly.
Under the Self Assessment System, taxpayers are still required to complete and submit Return Form by the required dates. Taxpayers will have to calculate their own tax and make payment of the full amount. In the case of an employee, the Schedular Tax Deduction Scheme will continue to
apply i.e. tax will be deducted from the monthly salary and remitted to the IRB by the employer.

For more information, visit www.hasil.org.my

The Road Not Taken

TWO roads diverged in a yellow wood
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;

Then took the other, as just as fair
And having perhaps the better claim
Because it was grassy and wanted wear
Though as for that the passing there
Had worn them really about the same

And both that morning equally lay
In leaves no step had trodden black
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I -
I took the one less traveled by,
And that has made all the difference.

The literal meaning of this poem by Robert Frost is pretty obvious. A traveler comes to a fork in the road and needs to decide which way to go to continue his journey. After much mental debate, the traveler picks the road "less traveled by." The poem describes the tuogh choices people stand for when traveling the road of life. It is a truism that any choice we make is going to make “all the difference” in how our future turns out.

April Fool's Day

Everybody knows what is the meaning or celebration on 1st of April. Even a few years old kid will know that it is April Fool's Day or sometimes called All Fool's Day. This is the day when people play practical jokes on each other and have a good laugh. One have to be vigilant and be prepared for anything!

I remembered that when I was still schooling, I will wait for the right time to take action. The harmless jokes that I used to play on others is
1) There is something on your face.
2) Hey, you dropped the money.
3) Hide something and let the other person to find it for a while.
4) You forgot to zip your shorts/ skirts.
5) Eh, there is a hole in your shorts/ pants.

As I grow older, my friends and family don't celebrate it anymore. Yesterday is April Fool's Day but I don't get any jokes or hoaxes. Is it because we are more mature? Is it because of stress? Or is it because it is not good to play jokes on people.