10 Life Lessons by the Richest People

Rule 72

The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself.

To me, stock-markets is just an instrument for me to make money works ... it is better than putting our money in banks. Only those without much of financial intelligence(FIQ) will put all their money in banks with little interests as inflation rate is higher than the bank interest rates.

To begin with, a TOTAL change of mindset is needed ... seriously, this is something very lacking in majority of average population.



80-20

The 80/20 Rule means that in anything a few (20 percent) are vital and many(80 percent) are trivial. In Pareto's case it meant 20 percent of the people owned 80 percent of the wealth. In Juran's initial work he identified 20 percent of the defects causing 80 percent of the problems. Project Managers know that 20 percent of the work (the first 10 percent and the last 10 percent) consume 80 percent of your time and resources. You can apply the 80/20 Rule to almost anything, from the science of management to the physical world.

Yes ... this is another very important understanding when it comes to many of our things we want to do. To me, understanding such principle means ... DO NOT be the majority, the herds ... as they are the 80%. How can we be successful duplicating our normal friends ... and do the normal things others will do? Similar in investing-trading ... 80% of them lost and still losing money in stock-markets, why would we want to be like them? What normal newbies in markets will do? JUST dont do that ... do the opposite, the minority ... be contrarian.



Readings

There are many books I have read ... to change my idiotic-financial mindset. It has been about 6-7 years now ... and I am glad I have picked up many good pointers from many good books. Personally, when I m able ... I will like to write a book, sharing with others how I m turning myself from a complete financial-idiots(many around me could justify to that facts) ... into the minority. Yes, guiding others and helping others while I am focusing in what I need to do ... in order to be 'financially' intelligent. Do read good financial books .... acquire as much knowledge ... and apply them!

Motivations

We all need great motivation to do something ... consistently, persistently ... and with great passion. I do think it is much more important than all your knowledge in FA or TA ... or how to build a biz. I am motivated to 'education' ... for example. I love teaching ... seeing others improving in the subjects ... and simple appreciation could motivate me to do better, going further ... and I think it is very essential to be fully motivated in things we are doing!! Can PASSION be taught? Hmm ...


I bought this book recently. Tho I hv different financial-mindset, I still appreciate such books and still buying these books ... for pleasure reading. And at times, I will find good pointers ... and idea.

Do listen the clips below : Dennis Ng(R.I.P)





1. Earn more,  invest your money ...
2. Strong purposes in life ... knowing the directions.
3. Save money rather than have cars, gadgets ... be frugal.
4. Motivation to learn about financial intelligence and mindset.





1. Not the amount you earn, it is the amount you save(after minus our expenses).
2. If you are defensive, it will only be 0 - 0 ... as in football. You will be never win.
3. Must invest ... to have forward. Must diversify to reduce risk.





1. One can start small, longer time frame ... increase your capitals

If one do not have passion to blog ... what close to his heart but to blog because he/she could gain some 'site' income, I think they will not spend hours like me ... blogging for free.

Think. What is PASSION in sharing and teaching? Think of your own passion. Work on that. That is the simplest natural motivation ... we do not need to do things we do not like ... and drag our feet ... we need to be sincere ... to do things we want to do, not because we have to do!!

Got to go ...

have a nice year ahead ...

TEH