Managing your Personal Finances Wisely

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Book Review: Building Wealth In China 1

Posted on June 07, 2011 by admin


As I stumbled over this book, Building Wealth in China – 36 true stories of Chinese millionaires, compiled by Zhu Ling, it took me some time to actually take the time, sit down, and read it through. The book is similar to a compilation of biographies of 36 of the most wealthy Chinese millionaires.

Each chapter starts with a short, half page introduction to the person and company in question, after which the book starts to elaborate on the history and development of the wealth of that person. On just a few pages, the book describes where the person is coming from, and what he/she has done that made him/her so successful. In fact, the entire book is a compilation of Business Weekly’s “Up Close”, in China Daily’s Monday edition. Read the rest of this entry →

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Learning How To Prosper 2

Posted on February 03, 2010 by admin

wltAuthor: David Beairsto

Becoming Healthy, Wealthy and Wise

Change is essential for anyone wanting to make a difference in this world. Knowing how to prosper, like knowing any process, starts by embracing change as a way of lfie.

Moving from one fixed point to a desired conclusion requires action. Action by definition is the opposite of being fixed or permanent. While our current state and our desired conclusion may be inactive reference points, the process of moving from the beginning to the end is fraught with activity.

You Can’t Win Unless You Finish The Race

Failing never prevents anyone from obtaining their goal. The only reason we don’t win the prize is if we stop trying. Failure is the trophy of endurance to the one who prospers. Failure is also the prize for the one who quits.

Persistence takes failure into account. Like difficulties and obstacles they are expected in the pursuit of success. Persistence holds fast to the plan designed to carry us toward the goal. Persistence is also insistent, that no other goal be substituted for the original. Failure and quitting are not goals to the persistent person.

Not Who I Am But Who I Intend To Be

We learn how to prosper in business by first learning to prosper in personal development. If we aren’t willing to grow and change personally on a consistent basis, it isn’t likely we’ll discover these character traits elsewhere.

The prosperity mindset begins with thoughts intended to change the person. By conditioning our minds to think differently, we in turn act differently. Our behavioral patterns lead us toward a prosperous conclusion as a result of thinking differently.

An honest assessment of our current condition is as necessary as knowing who we intend to become. Without a fixed reference point, we can’t map out an exact route. When we encounter obstacles that change our direction, we need a reference point in order to focus on the goal again.

Don’t Be Afraid To Stop And Ask For Directions

When this practice is applied to our business we already understand the pattern. Regular assessment allows for adjustment in our plan.

We don’t like to get turned around or lost in pursuit of our goal. Whether in personal development or business, retracing our steps is a waste of time.

By first learning to be open and transparent about ourselves, we become willing to allow others to bring fresh insight to our plans. When it is positive in nature, external input can give insight that we might otherwise miss again and again.

As the process becomes more involved, we generate an increasing number of specific plans. Each one has a unique starting point and goal. They all lead us toward our main objective, like adding lanes to a highway increases the speed and flow of traffic.

Stronger Foundations Support Larger Structures

If for instance, I learn to wake up at 6am to focus on reading, but fail to improve my self discipline, I may not use that time consistently. They work together.

I used to coach young children in soccer. They loved to run, but learning ball control disciplines was far more difficult for them. They either ran past the ball, or kicked it too far out in front of them. Only a few were able to do both successfully. Everyone else chased them around the field.

As we learn how to prosper, we begin to detect weakness. With the proper mindset we view weakness as a learning opportunity. We prosper directly by learning to transform weakness into strength; inability into capability.

Like road signs telling us where we are, weakness identifies our current location and helps us decide which way to go. In the same way failure identifies a dead end process as a lesson of value.

On the race toward success we condition ourselves to welcome weakness, failure and difficulty as profitable resources. When we think of them as such, we are able to use them to build a solid foundation.

It Isn’t A Matter Of Luck Or Chance

We can only prosper in proportion to what we’re willing to give in exchange. If I’m willing to read self improvement books from different authors on a consistent basis, I can expect a greater level of personal growth; provided that the knowledge I gain is organized into a plan for self improvement.

If I desire to become a millionaire while working for a set salary I should consider the time it would take to accomplish that goal. My will may keep me from relinquishing the desire to pursue this goal, but time might run out before I get there.

By taking some of my income to invest in the stock market, I increase my potential to become a millionaire. If I choose to exchange my free time for the purpose of learning how to invest my money, that time investment improves my chances.

An even better plan is starting a business. The entrepreneur understands the importance of limitless potential. Beyond the ability to write your own paycheck, is the ability to write an even larger one every day. Prosperity ultimately becomes the process.

One of the greatest assets to learning how to prosper is that we can share both the plans we followed and our experience with others. Living in prosperity is the objective behind the learning process. People who live prosperous lives are an encouragement to anyone who wants to succeed.

Article Source: http://www.articlesbase.com/wealth-building-articles/learning-how-to-prosper-1789070.html

About the Author

David Beairsto, author and owner of http://NetworkFisher.com truly believes that if you give a man a fish you feed him for a day, but if you teach a man to fish you feed him for a lifetime. Knowing how to succeed in business online or offline is a matter of becoming a master marketer and learning how to prosper. Successful businesses are continually defined by their ability to effectively market their product or service. Visit our website at http://DavidBeairsto.com to follow us in our effort to transform ordinary people into successful entrepreneurs, one by one.

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Book Review: “Rich Dad, Poor Dad” by Robert T. Kiyosaki 0

Posted on January 03, 2010 by admin

As we grow up, we are often told by our parents and peer groups to go to school, get good grades, enjoy education and to get a good and secure job at a company. We strive to gain wealth by working hard, and fighting for promotions and salary raises. At the same time, we try to get ourselves comfortable lives: a nice apartment, a car, fashionable clothing, and good lifestyle in general. We use credit cards and loans to finance things for which we do not yet have money readily available, and often use out monthly salaries to pay off debt and mortgages. Then, as we grow older and our demands to life grow, we marry, get children, perhaps bigger estates, and we work even harder to keep up with the rising costs of living.

In his book Rich Dad, Poor Dad, Robert T. Kiyosaki calls this the rat race. Most people are so much taught during childhood and adolescence that this is the one and only way to achieve success and wealth, that this is the natural way to go for most people. At the same time time, each month when we receive our salaries we get disappointed; is this little salary all we get from hours and hours of hard work each month?

Robert T. Kiyosaki tells the story of aboy (himself) growing up with two dads; one “poor” dad, working his ass off for others and always struggling with financial problems his entire life, and a “rich” dad, who understands the laws of finance and making investments; whereas the poor dad works for his money, the money works for the rich dad.

Rich Dad, Poor dad is a well-written guide, in which the reader is drawn into the mind and way of thinking of an entrepreneur. The book discusses the basics of how income is earned and spent, and the differences of how the rich and the poor generate and spend money. Furthermore, the book offers a good introduction to the role of taxes, and what there is to do in order to escape the rat race and start leading a rich and fulfilling life.

The best about this book is the fact, that it does not focus on starting your own business, or anything similar. In stead, it focuses on how to correctly handle money, and how to develop the ability to identify business opportunities in its broadest sense. It is a highly motivating book, which will change the way you look at work and earning money for sure.

Update on 13 August 2010: Also read the related post Mind Your Own Business.

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The Beginning Investor – Guidelines to Consider 0

Posted on December 02, 2009 by admin

Last week I have started writing a series about investing and fundamental analysis. But then it came to my mind, that I had not yet even devoted an article to some of the basics, which I believe would benefits each investor (or upcoming investor). Therefore, I want to take some time now to elaborate my personal golden rules of investing.

#1 - buy low, sell high

Ofcourse! Buying a stock when the price is low and selling when it is high makes sense. But yet, many people buy a stock when it is quite expensive already, or when it is about to reach a top. It is a psychological phenomenon: many people will only buy what has been proven to be a good product in order to avoid risks. The problem with stocks, however, is that those good and popular stocks are quite expensive already.

#2 – Research well and take your time

Investing is not about speculation. If you are a serious investor, or if you would like to become one, you should not take hasty decisions or trying to make a 35% profit until next week. Research the market well. Apply the fundamental and technical analysis if you want to, and know what you are buying; be aware of the potential gains, potential losses, and development over time.

#3 – Don’t put all your eggs in one basket.

Diversification is the key word here. Don’t put all your money on one company, but diversify between different companies, different industries, and different regions. This way, if a company or industry is not performing as expected, the other stocks in your portfolio might absorb some of your losses. Additionally, you may want to think about diversifying the products you buy; invest some money in obligations and perhaps real estate too.

#4 – Accept your losses.

Losing some money now and then is part of the game. Therefore, it is smart to identify a stop-loss limit. This means, that you can set a rule such as “if my stock drops 8% I will sell it”. You can simply set the minimum selling price at your broker, and as soon as your stock reaches this limit, it will be sold automatically. Also, as your stock rises, you may want to increase the stop-loss limit also. Many people hold on to their stocks when they are making losses. Although some companies recover fairly quickly, others might not, and you may end up having a non-performing stock in your portfolio for years.

#5 – Selling is as important as buying

Continuously track the performance of your stocks, and attempt to predict future developments. If you thinks that a stock has reached the peak of its potential, you may want to think about selling in order to convert the stock into cash. Selling is just as important as buying, unless you aim at receiving a steady return in the form of dividends.

#6 – Reinvest dividends

Reinvesting the dividends you receive can make a huge impact on the long run; do not underestimate the power of receiving dividends.

#7 – Go your own way

Try to identify what works best for you, and do not follow the main stream. Once people start investing in certain stocks massively, chances are that the really smart investors have already long sold their positions in search for other high-potential stocks.

#8 – Have a long-term vision

Investing is something you do for your long-term development and growth. Therefore, let go of the idea of making fast and immediate profits, but look at investments as a contribution to your personal long-term growth.

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Book Review: Think Like a Billionaire, by Donald Trump 3

Posted on November 18, 2009 by admin

“In a world of more than six billion people, there are only 587 billionaires” are the first words the book starts with. But what does it take to belong to that so much desired exclusive club?

In his book Think Like a Billionaire – Everything You Need to Know About Success, Real Estate, and Life, Donals Trump litterally takes the reader inside the mind of one of world’s most famous billionaires: himself. With his colloquial writing style, Donals quickly fascinates the reader and introduces him/her into the world of real estate, attorneys, marriage, saving, passion for business, the big deal, but above all a passion for life.

In Think Like a Billionaire you will not find detailed theories on portfolio management or finance. The book approaches what you need to know and how you need to be in a well balanced way. The book will most probably leave the reader with a high energy level and a different way of looking at things.

Highly recommendable.

ISBN 0-345-48140-2

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