Sunday, November 09, 2014

The Millionaire Formula

This is an old book of mine. Interesting ... and good for reading. I have to admit that I do not read the whole book ... as I do have many. But, this is an easy-reading ... straight to point on what we needed to CHANGE our normal 80% of people mindset ... into a successful one.

So ... I am going briefing sharing what is so good reading these books(besides the pointers, it is motivational ... knowing that I could be successful too).

Note : Do get the book and read such books, instead of wasting time yakking around.

The Formula : W = M x (R + E + T)

W = Wealth

M = Mindset

R = Resources

E = Energy

T = Tools

Quote : "The mindset is an area in which most people fail" Dr Jeffrey Chiew, the author.

Mindset is the MOST important component in getting wealthy. It is not in most of us, not at all. Poor and average people will NEVER understand how some could do so well financially ... as the will only have wishful thinking, but not taking actions to CHANGE their mindset.

I am not a millionaire(just) yet ... but, I m glad I have taken the most difficult CHANGE merely 7-8 years ago. That CHANGE of financial mindset ... change EVERYTHING I am doing ... money-wise. While I m still not money-minded and motivated by money, I m getting the monetary results in pursing my goal ... and doing what I like doing, most.

While I am still fine-tuning my personal financial mindset ... let me share with all what is written in the book(briefly).


Quote : "The only difference between a rich man and a poor man is the way they think"







These 7 "easy" steps ... hmm ... another mis-leading title of EASY. They are all NOT easy for normal 80% of us. Definitely the Step 1 : MINDSET is the most crucial step I have taken, and it is far from easy.

Imagine ... with debt accumulated and after simplest of marriage, I am totally broken and in huge debt. That cant be easy for a low-paying lecturer staying in Sabah, KK? My salary was RM2.5k back then, with income from tuition merely RM1k? Then ... after first two years, my MINDSET slowly taking a change of direction as I read more financial book.

I was not in KLSE yet then ... but very busy with goreng-keropok biz, where I have shared many times how I failed ... and lost a friend.  Somehow, many will look-down on you when you fail. Somehow, the NORMAL surrounding un-successful people could not take failing gracefully and move on ... failed and get up stronger?

These surrounding NORM could be pushing us lower and branding us as failures. Do not let them stop us in doing what it takes for us to be ... er ... successful, one day? Remember, these are TOXIC and they do not deserve to judge us. ONLY US could decide what we want to do further...

Swallowed my pride ... and make strong decision to move back to KL with my huge-debt, problems and more headache. I have to face my whole family(after 10 years of exodus) ... and tell them I failed. FAILED.

Many will point to ... I TOLD YOU SO ... while some will advise us to THINK properly if you are serious to gamble in stock-market!! That was merely 3-4 years ago!! Another failure is no acceptable. So ... there you are .. it is NOT easy as written. To change our mindset, despite having SO MANY NORMAL brains around it difficult ...

SO ... I failed many times in stock-markets ... and STILL in learning mode, as I still fail in many of my trades. We just need to pull ourselves up again ... and re-think ... not doing what NORMAL traders doing, learning from mistakes and we will succeed ... one day.

Today, my financial mindset is strong and I have pulled myself OUT of the normal people(80%) mentality ... and staying focus in what I m doing.

MINDSET = M ... other components come LATER.

Resources ... they said u need capital to trade/invest in stock-markets. They are VERY wrong again ... well, I started with RM10k borrowed money, for your info. I could tell you how wrong many things I THOUGHT it to be ... but, by reading good books, speaking to those experienced ones, those who succeed ... I picked up many good pointers and learn.

Energy ... I have that in me. I am still blogging here after years ... as it is something I like to do ...

(except that ... I dislike more attention given to my writing?!! We have 80% loser-mindset out there? So, the chances of viewed negatively is very high .... that will sap my energy if I am going to explain and answer them? So ... to protect my brain and time, I have to ignore those noises ... and direct my focus into what I need to do, right? No?) ...

... and still teaching Math after 25 years of doing that. It is simply a ''joy'' to do what you like doing ... without obligation ... and certainly easier to find the ENERGY to move forward, despite so many obstacles, criticism ... and at time, tiredness.

TOOLS ... will want to explore more on that.

As we all have same 24 hours time frame per day ... how we utilize our time effectively, working towards our GOALS ... yes, MANY do not even plan for financial goals ... then, we will move in that direction ... our goal. We will not be doing something else as we have ONLY 24 hours.

Let me share another equation here "The Savings Fallacy"


should be


I was earning about RM2.5k teaching in Inti College Sabah(at Putatan). So, by chance ... I read that we supposed to SAVE 10% of income. Heck ... that is a huge RM250 per month I have to force myself to save!! I have never done that for 40years!! And at aged 40, with my first boy to feed ... living at the back-room in my parents-in-law ... I have experienced that level ... cant really recall how I managed to be so strong ... and STILL saved RM250.

How? I went to Putatan Maybank and borrowed money to force saving in ASB. Yes, that is one of the smartest way ... the loan is below 5%, and I gained 7% from ASB. So ... that is 2% gain per year ... and forcing me to pay RM250, directly deducted from my Maybank account. I took 10years loan ... now, my boy is 8 years ago(9 soon) ... so, I am almost finish paying my "personal" loan.

Oh yes ... I took another such loan, a larger amount with shorter time frame of 5 years. That is because 3 years ago, my income has increased ... Taylor's is paying me about RM4k and tuition has increased. So, I forced myself to save another RM500 per month ... and that is how I forced myself to SAVE.

After we have put aside the amount to SAVE ... then can use the amount we have. I was struggling to SAVE RM250 about 7 years ago(as financial IDIOT .. most stupidest lecturer around, in term of personal finances ... haha .. I want to laugh) ... today, it is OK to save RM750 per month.

As we are doing better financially(it is CERTAINTY if we took the first step, change that stupid normal financial mindset la) ... we do not need to worry much about our expenses but we still need to stay FRUGAL.

Why must we overspend simply because we could earn more? That is something I would not allow myself to indulge in ... and staying humble, focus in our goal ... we WILL succeed ... one day.

I have lifted a little my living .. for my family, of coz. What is money if we do not spend it wisely on our family?

Lets check on some of my upgrades.

1. House : I do have a small apartment in Sabah, beach-apt. RM500 per month but it is left empty as it is difficult to rent out. I bought that when I was still financially stupid. Never mind about the mistake. I came to SJ and staying in rented apartment. It was almost totally empty ... as we could not afford anything at all in 2011. Market was good ... tuition and trading group up ... and I bought the current apartment 2 years plus ago with mom help(on the deposit .. I have paid her now) ... RM155k. Now, it is worth RM300k ... and next year, I hope to upgrade to ... a condo nearby? Still looking around, actually. And still planning for retirement place ... hmm ...

2. TV : When I was in KK, we have a 21" RM400 TV ... when I came back to KL, we have 21" 20yr old TV which I bought ... that was 4 years ago ... upgraded it to 32" LED 2 years ago ... and this year, 42" SMART-TV ... I like watching youtube on my TV! Yes ... now they came out with larger TV and curved? Heck with tech or latest model ... I do not chase such materially.

3. Handphone : 5 years ago ... was using old Nokia ... then, changed to Samsung W-series a year in KL ... till the phone sot-sot ... and after they launched Note3 months later, I bought Note2. Still wonder how to use the smartphone as I m IT-idiot? Hmm ... now we have Note4 and IPhone6 ... when they have Iphone9, I might consider IPhone6.

4. Speakers/Headphones : Bought myself few earphones ... headphones(AKG) and speakers. Got a Yamaha home theater system ... something I could only dream-off having merely 4 years ago?

5. Toys : I could barely afford RM30 toys for Er ... it was so touching that I spent my RM30 to buy him that RM30 toys from City Mall. He is a very good boy, seldom ask for toys back then ... now, toy-shops is a must to visit? He wants the latest Lego Metalbeard(RM280) and daddy is getting that as his Christmas present.  Hmm ... daddy needs to control the spending here!

6. Bike : My old second-hand kapcai .. I bought with RM3k, borrowed from my aunt when I first came back from KL. It took me few months to sell off my Kancil in KK, and to buy a Proton. Well, will be changing her next year... into ...

7. Cars : From Kancil in KK .. still driving my Proton 1.3 for 4.5 years now. Thinking of second-car as I might want to travel out of KL ... and to teach trading? A Honda City/Civic will be good? No ... I do not believe in spending money buying a depreciating asset. By the way, for car-loan .. I will have to think NOT to use more than 10% of my income for the monthly instalment?

8. Dining : This is where my willingness to spend ... dinners. When I was in KK, a nice lunch once in a month(cant afford anything beyond RM50) is a luxury we looking forward to. We will go to the Taiwan Restaurant. Today ... hmmm ... pampered with choices. This is something I do need to reduce on my "willingness to spend" ... food. I m so willing as I like to see my family enjoy ... makan together. We have tried many restaurants for sure ... and there are few our frequent favourites. Yup, I am feeling guilty of over-spend here ... but ... err ... can I?

9. Books : Even when I was broke, I do still insist of putting RM100 per month for buying financial books to read. Investment books. Trading books. Many more ... and today, each time I shop in a book store ... magz, books ... for kids too .. is RM100+. During the book fair, easily I spent 5-8 times of my normal spending on books. I simply love my books ...

10. Shoes : This is my old shoe ... costing me RM60(I bought during Jusco sales 3 years ago, 50% discount). I used to wear below RM30 shoe to college when I was in Sabah. No one ask me anything about that? No one noticed? So this RM60 shoe was my 'most expensive' shoe I have bought for myself 3 years ago. Well ... I like Camel shoe ... since then, records broken ... and I appreciate good nice shoe. I am still not into branded ... to be honest.

11. Clothes : I cant afford anything much 8 years ago... I do wear t-shirts given by my uncle and brothers. I wear those bowling t-shirt. Today .. hmm ... my wife will like go shopping for my attire and changed my whole wardrobe ... as I m not into brands ... Timberland, Nike or Adidas ... or my camel/hush puppies shoes ... or my Lois jeans. Today ... I m still a simple person. I do not believe brands will change a person's look. Luckily I do have simple wife too(do get gf from Sabah, ok? haha) ... tho she likes her Coach handbag I bought her.

12. Workspace : In 2012 ... I allowed myself to spend a little on new pc(customized with performance ... and still working very well). In 2015, I am creating a trading-space for myself as I am more serious into trading next year onwards.

13. Holiday : I do pamper myself ... I like beaches ... so, Sepang GoldCoast is my fav resting place for my family now. Well, I do like to bring my family (my mom & aunts too) there ... and going to Langkawi end of this month.

14. Charity : In 2010 ... i cant really afford yet to donate ... but, I started to donate to a church, sponsoring some kids(orphans). It was about RM200 ... once a year ... and was a big amount? Today, I hv created a funds of few thousands to be donated to orphanages 2-3 times a year. I still have my Deepavali-Charity giving to be done ... perhaps soon? The amount is nothing to shout about yet ... RM4k this time. Next year ... I will improve in that ... and one day, my goal of creating a center to help those abandoned orphanages (do let me know which one needs help, I will approach them, Thanks)

You get what I mean ... once we CHANGE our mindset ... we achieve results. And we do not look back anymore ... we take steps to be a better person, financially and humanely.

Let us face it again ... to those struggling at initial stage, it is OK. Try and fail ... but never quit. Just make sure PEOPLE you are mixing with having similar wave-length and wanting us to be successful ... not those in forums, those complaining  ... criticizing without contributing ... those so-called friends of yours who have inferior complexity and more.

There ... instead of writing more words ... I took a picture of those words. It is in STEP 5 ... Learn to earn more.

We could not earn more if we do not want to learn. SIMPLE as that? Simple? Easy? Then ... why so many failed in trading stock-markets? WHY? Because ... there are 80% losers out there in stock-markets and we could find 80% of losers in forums. They will talk and talk ... and we followed them, absorb those negative vibes ... teach me, HOW are you going to conditioned you mindset mixing with tin-kosong and those who have not like-minded? Heard of the words ...

It is almost 12.30am ... and I have more words to write ... to encourage those struggling with their trades, works and financial lives ... if I could do it, EVERYONE could.

I have no intention to show-off ... as I believe many many out there having much more expensive items and much more richer, financially. But ... I want to stay humble to learn from more successful people ... and the purpose of showing my financial improvements is to ENCOURAGE and MOTIVATE many young newbies out there ... work hard and smart. NEVER be that 80% normal human out there... we deserve to be a BETTER human.

Listen to this clip again ... and again ... how he FAILED ... succeeded and FAIL again due to his arrogance ... but, pulled himself up and SUCCEEDED.

Note : For non-Chinese readers ... do get a Chinese friend to translate to u the contents. It is WORTH the efforts.

It is matter of MINDSET.

I may not be successful and a millionaire yet ... but, given time and efforts ... I know I will be direct myself to achieve my personal goals.

Have a nice Sunday.



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