Patrick Soh, a Singaporean, has opened the first fast food restaurant in North Korea. I remember visiting Waffletown regularly in my early childhood years during the late 1980s at a shopping centre in Bukit Timah, Singapore. That outlet closed after a few years in operation.
I believe that Singapore has no lack of entrepreneurs. Given the opportunity and education, most people would want to start their own business. It is just that they do not know how to. Hopefully, this article will give some inspiration to the next "Patrick Soh" perhaps.
Read the article below to find out more:
____________________________________________________
You want more fries with that, Mr. Kim? How about a hotdog, Miss Park? Once condemned as evil "US imperialist" fare, Western-style fast food is now available in North Korea thanks to a Singaporean entrepreneur who is already drawing up expansion plans just months after opening his first outlet.
"There is a potential to develop this business over there," said Patrick Soh, who is bullish on the prospects of fast food in the isolated Stalinist state better known for famines than deep-fried delights.
Soh, 56, holds the franchise in several Asian countries for Waffletown USA, a relatively obscure brand in the region compared to the likes of McDonald's, KFC, Pizza Hut and Burger King, but he has big ambitions.
The first branch of Samtaesong ("three big stars"), as Waffletown is known in North Korea, started operating in May after Soh's company got the first licence awarded to a foreign fast food outlet.
Burgers, called "minced beef and bread" to mask their American association, are the biggest attraction at the eatery, which also sells fries, crispy Belgian waffles, fried chicken and -- the latest addition -- hotdogs.
"It is not only the locals who enjoy the food. Even the foreigners like the food," Soh told AFP in an interview at a Singapore outlet of Waffletown.
Soh will make his fourth trip to Pyongyang this month to explore the feasibility of opening a second outlet there. If all goes smoothly, it should be up and running in early 2010, said Soh, who is not deterred by problems like power outages and the unavailability of some items in Pyongyang.
His North Korean adventure started when he was approached last year by a Singaporean investor, who broached the idea of setting up a Waffletown franchise in Pyongyang.
Soh declined to name the investor or say how much it cost to open the Pyongyang eatery, saying his main role was to set up the operation and train local staff to run Samtaesong.
A North Korean delegation paid a visit to Singapore early this year to sample the fare at a Waffletown outlet. "They came and tried the food and liked the waffle, burgers and fried chicken," Soh said over coffee at the outlet, located in an upmarket neighbourhood near Singapore's Orchard Road shopping belt.
"They find that we have a bit more variety than other typical burger chains and that we don't sell junk food," he said.
Soh made his first trip to Pyongyang in November last year, taking four days to survey the site and see whether the fast food concept was workable in one of the world's few remaining communist states. He was pleased to learn that the site was in a choice location in downtown Pyongyang, right next to a subway station and within walking distance of various universities.
He went back to Pyongyang in December to begin preparatory work for the opening of the eatery, from arranging the layout of the restaurant to listing the kitchen equipment and ingredients that needed to brought in.
The seasoning for the chicken and the waffle mix are among items imported from Singapore but other ingredients like beef and the chicken itself are sourced locally, with suppliers using his recipes for the burger buns and patties, Soh said.
The eatery buys soft drinks from shops that cater to the diplomatic community and resells the beverages in paper cups. Local workers are very intelligent and eager to learn, Soh said. "I don't need to spend much time to train them. I take about two, three days and they have a grasp of the work."
Since Samtaesong opened its doors in May, customers, including foreign students from China and Russia, have been streaming into the 246-square-metre outlet, he said.
"The locals come in and know the food that they want to order," said Soh. Prices are set in euros, but US dollars are accepted as payment. A "minced beef and bread" costs 1.20-1.70 euros (1.77 to 2.50 US dollars) and about 300 are sold each day, said Soh. The most expensive item on the menu is the crispy fried chicken at slightly under three euros.
The communist state's per capita income was estimated at just over 1,000 US dollars in 2008, but this is not denting Soh's drive to open more Samtaesong outlets in the country. He thinks North Koreans enjoy the novelty of the food and environment in his restaurant.
"This is new for them. It's just like when McDonald's first opened in Singapore."
____________________________________________________
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5. David Bach Automatic Millionaire
6. Peter Lim (Singapore's Remiser King)
Peter Lim
Not too sure where this article originated from. It seems like the New Paper. Found it on one of the forums and pasting it here to share with all. Basically, it is about billionaire Peter Lim (one of Singapore's 40 Richest). The article is as attached below: 
WHEN the Singapore stock market took a sharp dive lastweek, it wiped out more than $100million of his stock's value.
But former remisier king Peter Lim did not lose sleep over it.
Why? 'I've been a stock broker for all my life - I've seen all the crashes, financial crisis, where really, it's only a paper loss,' replied the self-made billionaire.
'Just make sure you are not jammed with cash flow.'
Mr Lim was referring to his almost 5 per cent investment in Wilmar International which saw its share price move from a high of $3.78 to a low of $2.89 in the space of a month. The share price last closed at $3.
To him, his wealth is less important than his family and philanthropy. His attitude towards money is almost casual. It reflects his philosophy on investing and wealth.
For those who feel they are badly mauled by the current share doldrums, Mr Lim has this piece of wisdom to share: 'I used to say to my friends, 'When you are holding stocks, if it goes up, don't be too happy; when it goes down, don't be too sad'.
'Otherwise, how? Your life will also be fluctuating and you'll die of a heart attack.
'If you really lose sleep over it, maybe the best way is to keep the money in thebank.'
So what does he lose sleep over?
He replies with a laugh: 'My kids. Like other parents, I worry about what they're doing and whether they'll pass their exams.'
On Thursday, he made his debut in Forbes' latest rankings as Singapore's seventh-richest man, with a reported net worth of US$830m illion.
Mr Lim revealed that he intends to give a large part of his money to society later. How will Singapore benefit?
Through his pet cause: Education.
He made this revelation quite casually, as if he were talking about the weather.
He said: 'I think it's very likely (that) a big part of my wealth will be directed towards education.'
'It will be either a straight donation towards assisting educational institutions or maybe I'll set up a foundation.'
He supports Prime Minister Lee Hsien Loong's call at the recent National Day Rally for more Singaporeans to make charitable contributions.
Mr Lim echoed PM Lee's views that it is happening all over the world, and especially in the US.
'Asia is a bit behind because generally, when you have money, you think of your sons and your daughters when you die.
'But I think it has changed a lot here, principally because now, the wealth isbigger.'
He was reluctant to reveal his charitable contributions over the years, except to say that much of it was anonymous and that in the early '90s, he was one of the earlier donors to the National Kidney Foundation.
HELPS POOR
His friend, Mr Dennis Foo, chief executive of St James Power Station, later told The New Paper that Mr Lim not only donates money, he also takes it upon himself to deliver food, like rice and cooking oil, to needy families in one-room flats and old folks' homes.
Why education?
Mr Lim said: 'Education must be cheap and accessible to anyone.
'For me, I was the son of a fishmonger, but I could still go to the best school. I had the opportunity to make money. There's no discrimination.
'I think this policy of meritocracy actually works. It's very very fair and nobody cancomplain.'
The New Paper managed to get hold of Mr Lim last Wednesday, after his meetings and before he left for a short trip overseas.
The publicity-shy tycoon was extremely reluctant to talk about his wealth. It didn't help that he again made news recently with his involvement in one of Singapore's largest reverse takeover bids, with his investment vehicle Rowsley buying up a chunk of a China solar power company.
But he agreed after some persuasion. He met us at Brewerkz, which he also has a stake in, at Riverside Point two hours before his flight.
Dressed in a polo T-shirt which has seen better days, a pair of cargo pants and trainers, he certainly didn't seem to wear his wealth on his sleeves.
Why so casual? He replied that he plans to sleep on his flight.
DOESN'T MONITOR
Ironically, Mr Lim, who was one of Singapore's leading stockbrokers and is now a private investor, does not monitor the stock market every day.
He goes through the financial reports of companies; he watches financial news to get a summary of what is happening, but he does not track the daily ups and downs of the stock he owns.
He said: 'I only check in intervals, depending on the company.
'If it's a structured company, then (I check) when the results come out. For the bigger ones, quarterly results; for smaller ones, twice a year. But if it's a start-up, I'll check it more regularly.'
Mr Lim made headlines in the late-'80s as a star remisier, in the mid-'90s in his divorce battle and in early 2000 for his involvement in the first instalment of the Raffles Town Club court saga.
Much of his wealth now comes from a single investment: Palm oil.
In the early '90s, he invested about US$10 million in a start-up Indonesian palm-oil company, Wilmar. Today, his almost-5 per cent stake is worth more than US$700 million.
This is a far cry from his humble beginnings. When he was young, he said, he did not even have his own room in the two-bedroom government flat he shared with 11 others.
He grew up, with three brothers and four sisters, in one of Singapore's oldest public housing estates, Bukit Ho Swee.
His father was a fishmonger and his mother a housewife and the size of the flat was the equivalent of a three-room HDB flat today, hesaid.
He slept in the living room, or wherever he could find space to lay his mattress down for the night.
On his wealth now, he said: 'It's no different from what it was before I had the money. It makes no difference after apoint.
'Like what they say, you can only talk louder. You can only eat so much and fly so many trips.
'Money lets you enjoy a lot of things, but I don't think I'll die without money.
'I don't think I'm eating a lot better than when I was a lot poorer than now. I don't really go for very special kinds of food. I'm still very local. I like my mee siam, mee rebus and lontong.'
When his father died in the late '60s, when Mr Lim was 22 years old.
Mr Lim completed his secondary school education in Raffles Institution and was an officer in National Service.
It was then, at the age of 18, that he bought his first lot of shares.
Did he make a killing?
'In fact, I lost money,' he laughed.
But not much.
'I was only paid $385 a month, so I can't have bought, or lost, very much.'
He then went to Perth to further his studies at the University of Western Australia.
To fund his university education, he said, he worked part-time doing odd jobs as a taxi-driver, cook and waiter.
It was one of these jobs - in the Australian fast-food chain Red Rooster - that opened his eyes to how business was done.
'I watched how they started, how they grew, and how they scaled up.'
It was also in university where he honed his instincts and skills as an investor.
He graduated with a degree in accounting and finance and stepped out into the working world.
'My first job was as an accountant. It lasted three months,' he said with a chuckle.
He did some tax consultancy before he went into stocks, he said.
Mr Lim is in his element when dealing with numbers. 'It's something I'm very comfortable with, something I understand.
'Give me any numbers. I look at (them) and I'm happy. It can be in any industry. You give me the numbers; somehow I can figure it all out.'
--------------------------------------------------------------------------------
His secret to investing is...
WHAT is Peter Lim's secret to successful investing?
Prospect, he replied.
He looks at sectors.
'Like if I think solar is good, I go into solar; if I think palm oil is good, then palm oil.
'Share prices go up because the sector grows. So if I think this sector is going to be good in the next 10 years, then I'll just invest in it.'
Another key reason for his success, he said, is patience.
Mr Lim, who also acts as a consultant to companies and helps them find multi-million-dollar investors, does not subscribe to buying one day and selling the next to cash in.
His advice to young investors: 'You have to invest with a longer-term mindset. You buy a good stock, leave it there for 10 years. Come 10 years, this dollar can be many, many multiples.
'I think the trick is really to think long-term.
' You may not have a lot of money, but you have a lot of time.'
'The minimum length of my investments are five to six years, if not 10 to 12 years.'
He cites the example of his condominium.
He owns an entire 11-storey block at prestigious Ardmore Park, near Orchard Road. He and his wife, with his 85-year-old mother, live in one apartment, while three other maisonettes and the penthouse sits empty.
'I bought it in 1994 for $13m and I just hold there and wait. With the current property market, it is worth more than $100m.'
Same with Wilmar, which he invested in in the early '90s. It was then a US$10m investment. Now, his stake is worth some US$700m.
Read Other Things About Peter Lim:
1. Peter Lim - New Owner of Valencia
2. Peter Lim offers $750mil for Liverpool
Read Related Articles:
1. Singapore's 40 Richest
2. Key Lessons from Rich Dad, Poor Dad
3. Donald Trump Lessons
4. David Bach Automatic Millionaire
WHEN the Singapore stock market took a sharp dive lastweek, it wiped out more than $100million of his stock's value.
But former remisier king Peter Lim did not lose sleep over it.
Why? 'I've been a stock broker for all my life - I've seen all the crashes, financial crisis, where really, it's only a paper loss,' replied the self-made billionaire.
'Just make sure you are not jammed with cash flow.'
Mr Lim was referring to his almost 5 per cent investment in Wilmar International which saw its share price move from a high of $3.78 to a low of $2.89 in the space of a month. The share price last closed at $3.
To him, his wealth is less important than his family and philanthropy. His attitude towards money is almost casual. It reflects his philosophy on investing and wealth.
For those who feel they are badly mauled by the current share doldrums, Mr Lim has this piece of wisdom to share: 'I used to say to my friends, 'When you are holding stocks, if it goes up, don't be too happy; when it goes down, don't be too sad'.
'Otherwise, how? Your life will also be fluctuating and you'll die of a heart attack.
'If you really lose sleep over it, maybe the best way is to keep the money in thebank.'
So what does he lose sleep over?
He replies with a laugh: 'My kids. Like other parents, I worry about what they're doing and whether they'll pass their exams.'
On Thursday, he made his debut in Forbes' latest rankings as Singapore's seventh-richest man, with a reported net worth of US$830m illion.
Mr Lim revealed that he intends to give a large part of his money to society later. How will Singapore benefit?
Through his pet cause: Education.
He made this revelation quite casually, as if he were talking about the weather.
He said: 'I think it's very likely (that) a big part of my wealth will be directed towards education.'
'It will be either a straight donation towards assisting educational institutions or maybe I'll set up a foundation.'
He supports Prime Minister Lee Hsien Loong's call at the recent National Day Rally for more Singaporeans to make charitable contributions.
Mr Lim echoed PM Lee's views that it is happening all over the world, and especially in the US.
'Asia is a bit behind because generally, when you have money, you think of your sons and your daughters when you die.
'But I think it has changed a lot here, principally because now, the wealth isbigger.'
He was reluctant to reveal his charitable contributions over the years, except to say that much of it was anonymous and that in the early '90s, he was one of the earlier donors to the National Kidney Foundation.
HELPS POOR
His friend, Mr Dennis Foo, chief executive of St James Power Station, later told The New Paper that Mr Lim not only donates money, he also takes it upon himself to deliver food, like rice and cooking oil, to needy families in one-room flats and old folks' homes.
Why education?
Mr Lim said: 'Education must be cheap and accessible to anyone.
'For me, I was the son of a fishmonger, but I could still go to the best school. I had the opportunity to make money. There's no discrimination.
'I think this policy of meritocracy actually works. It's very very fair and nobody cancomplain.'
The New Paper managed to get hold of Mr Lim last Wednesday, after his meetings and before he left for a short trip overseas.
The publicity-shy tycoon was extremely reluctant to talk about his wealth. It didn't help that he again made news recently with his involvement in one of Singapore's largest reverse takeover bids, with his investment vehicle Rowsley buying up a chunk of a China solar power company.
But he agreed after some persuasion. He met us at Brewerkz, which he also has a stake in, at Riverside Point two hours before his flight.
Dressed in a polo T-shirt which has seen better days, a pair of cargo pants and trainers, he certainly didn't seem to wear his wealth on his sleeves.
Why so casual? He replied that he plans to sleep on his flight.
DOESN'T MONITOR
Ironically, Mr Lim, who was one of Singapore's leading stockbrokers and is now a private investor, does not monitor the stock market every day.
He goes through the financial reports of companies; he watches financial news to get a summary of what is happening, but he does not track the daily ups and downs of the stock he owns.
He said: 'I only check in intervals, depending on the company.
'If it's a structured company, then (I check) when the results come out. For the bigger ones, quarterly results; for smaller ones, twice a year. But if it's a start-up, I'll check it more regularly.'
Mr Lim made headlines in the late-'80s as a star remisier, in the mid-'90s in his divorce battle and in early 2000 for his involvement in the first instalment of the Raffles Town Club court saga.
Much of his wealth now comes from a single investment: Palm oil.
In the early '90s, he invested about US$10 million in a start-up Indonesian palm-oil company, Wilmar. Today, his almost-5 per cent stake is worth more than US$700 million.
This is a far cry from his humble beginnings. When he was young, he said, he did not even have his own room in the two-bedroom government flat he shared with 11 others.
He grew up, with three brothers and four sisters, in one of Singapore's oldest public housing estates, Bukit Ho Swee.
His father was a fishmonger and his mother a housewife and the size of the flat was the equivalent of a three-room HDB flat today, hesaid.
He slept in the living room, or wherever he could find space to lay his mattress down for the night.
On his wealth now, he said: 'It's no different from what it was before I had the money. It makes no difference after apoint.
'Like what they say, you can only talk louder. You can only eat so much and fly so many trips.
'Money lets you enjoy a lot of things, but I don't think I'll die without money.
'I don't think I'm eating a lot better than when I was a lot poorer than now. I don't really go for very special kinds of food. I'm still very local. I like my mee siam, mee rebus and lontong.'
When his father died in the late '60s, when Mr Lim was 22 years old.
Mr Lim completed his secondary school education in Raffles Institution and was an officer in National Service.
It was then, at the age of 18, that he bought his first lot of shares.
Did he make a killing?
'In fact, I lost money,' he laughed.
But not much.
'I was only paid $385 a month, so I can't have bought, or lost, very much.'
He then went to Perth to further his studies at the University of Western Australia.
To fund his university education, he said, he worked part-time doing odd jobs as a taxi-driver, cook and waiter.
It was one of these jobs - in the Australian fast-food chain Red Rooster - that opened his eyes to how business was done.
'I watched how they started, how they grew, and how they scaled up.'
It was also in university where he honed his instincts and skills as an investor.
He graduated with a degree in accounting and finance and stepped out into the working world.
'My first job was as an accountant. It lasted three months,' he said with a chuckle.
He did some tax consultancy before he went into stocks, he said.
Mr Lim is in his element when dealing with numbers. 'It's something I'm very comfortable with, something I understand.
'Give me any numbers. I look at (them) and I'm happy. It can be in any industry. You give me the numbers; somehow I can figure it all out.'
--------------------------------------------------------------------------------
His secret to investing is...
WHAT is Peter Lim's secret to successful investing?
Prospect, he replied.
He looks at sectors.
'Like if I think solar is good, I go into solar; if I think palm oil is good, then palm oil.
'Share prices go up because the sector grows. So if I think this sector is going to be good in the next 10 years, then I'll just invest in it.'
Another key reason for his success, he said, is patience.
Mr Lim, who also acts as a consultant to companies and helps them find multi-million-dollar investors, does not subscribe to buying one day and selling the next to cash in.
His advice to young investors: 'You have to invest with a longer-term mindset. You buy a good stock, leave it there for 10 years. Come 10 years, this dollar can be many, many multiples.
'I think the trick is really to think long-term.
' You may not have a lot of money, but you have a lot of time.'
'The minimum length of my investments are five to six years, if not 10 to 12 years.'
He cites the example of his condominium.
He owns an entire 11-storey block at prestigious Ardmore Park, near Orchard Road. He and his wife, with his 85-year-old mother, live in one apartment, while three other maisonettes and the penthouse sits empty.
'I bought it in 1994 for $13m and I just hold there and wait. With the current property market, it is worth more than $100m.'
Same with Wilmar, which he invested in in the early '90s. It was then a US$10m investment. Now, his stake is worth some US$700m.
Read Other Things About Peter Lim:
1. Peter Lim - New Owner of Valencia
2. Peter Lim offers $750mil for Liverpool
Read Related Articles:
1. Singapore's 40 Richest
2. Key Lessons from Rich Dad, Poor Dad
3. Donald Trump Lessons
4. David Bach Automatic Millionaire
5. Peter Lim's ex son-in-law
And for those supporters of Valencia football club, maybe a scarf will be nice?
How Much A Blog Post is Worth
Ever wondered how much one blog post is worth?
I calculated the amount that I have earned from online income and based on my computations, each single blog post is worth an average of $0.20. That means that each blog post is roughly earning me 20 cents everytime I publish it.
As I did not set up dedicated channels to track my earnings, I can never know for sure which are the blog posts that are giving me better returns.
There are service providers out there that actually write articles for your blogs for a fee. This can be as low as $5 for a 300 word article or as high as $7 for a 500 word article.
But if you are thinking of employing their services, think again! You might not be able to break even unless you have a really good strategy in mind.
And that is perhaps the reason why these service providers are not writing articles for their own blogs or websites. It is much more profitable to sell articles than to earn money from articles that are published on a website or blog.
I calculated the amount that I have earned from online income and based on my computations, each single blog post is worth an average of $0.20. That means that each blog post is roughly earning me 20 cents everytime I publish it.
As I did not set up dedicated channels to track my earnings, I can never know for sure which are the blog posts that are giving me better returns.
There are service providers out there that actually write articles for your blogs for a fee. This can be as low as $5 for a 300 word article or as high as $7 for a 500 word article.
But if you are thinking of employing their services, think again! You might not be able to break even unless you have a really good strategy in mind.
And that is perhaps the reason why these service providers are not writing articles for their own blogs or websites. It is much more profitable to sell articles than to earn money from articles that are published on a website or blog.
So how exactly can you make money from your blog?
I believe I am "qualified" in a certain sense to answer the above question.
Ever since I started out blogging last year, I have seen my online income grow from a paltry $0.01 per month to roughly $30 per month. I am not talking about a six figure income from blogging but if you are interested in how to break the zero barrier...read on.
Firstly, if property is about location, location, location then blogging is about content, content, content.
Yes, a good domain name might be important but even with google's blogger that I am using, choosing a good name for your blog might be enough instead of investing in a proper domain name (This is especially so if you are not even sure whether you will be blogging in the long term). It is best that the name of your blog has something related to what you will be blogging about. This will aid in the search engine portion.
But I will not touch on that as I believe that it is possible to write good content and the traffic will come naturally.
If I can put it down to 2 essentials to breaking the zero barrier in earnings, it will be simply this:
Blogging frequency and content.
Other factors are: Search Engine Optimisation, Keyword selection, Traffic sources
So focus on your content and blogging frequency first before touching upon the rest.
Remember that the people reading your postings are humans. Look at your own blog and own posts. Imagine that you are a stranger reading it. How would you react? Would you want to visit again for more information?
I understand that are a whole lot of other things that come into play when it comes to earning money from blogging but I think this article should suffice for the time being
Retire Young Retire Rich
I dug out this book by Robert Kiyosaki (Author of Rich Dad, Poor Dad) which had been collecting dust on my bookshelf.
I read it 6 or 7 years ago and decided to do some re-reading to see how far I have followed Rich Dad's advice.
Why I first started reading the Rich Dad Poor Dad series is simply because Robert Kiyosaki started out with nothing and achieved financial freedom in nine years when he retired in 1994. He started with nothing and exited with $85,000 to $120,000 a year in income which came solely from investments. He was not rich but he was financially free as his yearly expenditure was only $50,000.
Reading just the introduction of the book Retire Young Retire Rich, I realised how I have not followed what he had been telling me to do. In a sense, I had only remembered one key thing from Rich Dad Poor Dad: Buy Assets.
In the introduction to the book, 2 important points are made about money.
The first important word about money is Cash Flow. The second most important is Leverage.
I realised that I sort of understood the cash flow portion but have somehow neglected the portion on leverage. As Rich Dad says: "Leverage is the reason some people become rich and others do not become rich.....Becuase leverage is power, some use it, some abuse it, and others fear it."
It seems like over the years, I have sort of feared the power of leverage. I have not made use of good debt. Instead, I have gotten myself into bad debt by buying a car and a house - both are liabilities as they are taking money out of my pocket.
Good debt makes you rich, Bad debt makes you poor. That is the power of leverage and it is something which is just head knowledge to me and not something that I have applied in my life.
In this book, Robert Kiyosaki outlines that leverage takes place in your mind, your plan and your actions. He also outlines the three assets that make people rich and allow them to be retire young.
I will be exploring and re-reading this book again in the next few weeks. Do drop by again to see the lessons that I have learnt!
Read Releated Posts:
1. Key Lessons from Rich Dad, Poor Dad
2. Donald Trump Lessons
3. David Bach Automatic Millionaire
I read it 6 or 7 years ago and decided to do some re-reading to see how far I have followed Rich Dad's advice.
Why I first started reading the Rich Dad Poor Dad series is simply because Robert Kiyosaki started out with nothing and achieved financial freedom in nine years when he retired in 1994. He started with nothing and exited with $85,000 to $120,000 a year in income which came solely from investments. He was not rich but he was financially free as his yearly expenditure was only $50,000.
Reading just the introduction of the book Retire Young Retire Rich, I realised how I have not followed what he had been telling me to do. In a sense, I had only remembered one key thing from Rich Dad Poor Dad: Buy Assets.
In the introduction to the book, 2 important points are made about money.
The first important word about money is Cash Flow. The second most important is Leverage.
I realised that I sort of understood the cash flow portion but have somehow neglected the portion on leverage. As Rich Dad says: "Leverage is the reason some people become rich and others do not become rich.....Becuase leverage is power, some use it, some abuse it, and others fear it."
It seems like over the years, I have sort of feared the power of leverage. I have not made use of good debt. Instead, I have gotten myself into bad debt by buying a car and a house - both are liabilities as they are taking money out of my pocket.
Good debt makes you rich, Bad debt makes you poor. That is the power of leverage and it is something which is just head knowledge to me and not something that I have applied in my life.
In this book, Robert Kiyosaki outlines that leverage takes place in your mind, your plan and your actions. He also outlines the three assets that make people rich and allow them to be retire young.
I will be exploring and re-reading this book again in the next few weeks. Do drop by again to see the lessons that I have learnt!
Read Releated Posts:
1. Key Lessons from Rich Dad, Poor Dad
2. Donald Trump Lessons
3. David Bach Automatic Millionaire
Independent Financial Advice
I read this article from Asia One regarding the rise of independent asset managers.
It seems that very soon, it might be possible for clients to choose independent asset managers who charge a fee for advice instead of bankers who earn a commission from the products they sell.
These independent asset managers should be differentiated from the independent financial advisors (IFAs). IFAs are not truly independent as they still earn based on the commission of the products they sell. Only some IFAs charge clients based on a fee for advice.
A greater number of people prefer to work with independent managers rather than bankers because of potential cost savings and most important of all - independent advice.
The recent Lehmann fiasco and stuff have warned consumers that banks might not always have the customers best interests at heart. This is especially so when there is a potential conflict of interest as the banker seeks to enrich himself by selling high commission products.
In my opinion, ethics should also be placed as a far more important trait than knowledge. Better to work with someone who has ethics instead of knowledge.
A person who acts with integrity will give you the best advice that is suited for you. A person with good knowledge but without any ethics might recommend financial products that are not suited to your needs.
I dug out this article from Smart Investor which I read sometime back in November 2008. The advice in it is timeless. The title of the article is "What to Ask When An FA Recommends A Product."
Do bookmark this page so that you know what are the questions to ask the next time a banker or insurance agent recommends a product to you.
These are the questions to ask before purchasing any financial product from anyone:
1. Why is this product suitable for me?
2. What type of product is this? Is it a whole life policy, unit trust or structured depost? Is it for savings, investment or insurance protection?
3. What benefits does this product offer? Which benefits are guaranteed and which are not?
4. What instruments does the product invest in? How risky are these underlying investments?
5. Is this product suitable for individuals with low, medium or high risk profile? What is my risk profile?
6. How much do I need to commit to this product? Is it a one-time payment or regular payments? What is the penalty if I am unable to make the payment?
7. How long must I stay invested? What are the penalties, restrictions and procedures if I decide to liquidate some or all of my investments earlier?
8. What are the fees and charges? Will there be changes in the fees in the future?
9. What alternative products offered by the same company has similar benefits? How does the recommended product compare with alternative products?
10. Are you licensed to sell me the product? Who can I find if you are no longer working in the industry?
11. Can I monitor the performance of my invesment? How? Will I receive reports and updates on my investments? How often will these updates and reports be?
12. Is there a free look period if I decide after signing on the dotted line that this product is not suited for me? Can I get ALL my money back or are there certain penalties?
In simple words, always ensure that you understand the investment product before purchasing it. Understand why you are buying it and how it fits into your overall financial plan. Take time to consider whether this product meets your needs before finalising your decision. Do not feel pressured to make a decision or make a decision on the spot when you are not prepared for a long term committment.
It seems that very soon, it might be possible for clients to choose independent asset managers who charge a fee for advice instead of bankers who earn a commission from the products they sell.
These independent asset managers should be differentiated from the independent financial advisors (IFAs). IFAs are not truly independent as they still earn based on the commission of the products they sell. Only some IFAs charge clients based on a fee for advice.
A greater number of people prefer to work with independent managers rather than bankers because of potential cost savings and most important of all - independent advice.
The recent Lehmann fiasco and stuff have warned consumers that banks might not always have the customers best interests at heart. This is especially so when there is a potential conflict of interest as the banker seeks to enrich himself by selling high commission products.
In my opinion, ethics should also be placed as a far more important trait than knowledge. Better to work with someone who has ethics instead of knowledge.
A person who acts with integrity will give you the best advice that is suited for you. A person with good knowledge but without any ethics might recommend financial products that are not suited to your needs.
I dug out this article from Smart Investor which I read sometime back in November 2008. The advice in it is timeless. The title of the article is "What to Ask When An FA Recommends A Product."
Do bookmark this page so that you know what are the questions to ask the next time a banker or insurance agent recommends a product to you.
These are the questions to ask before purchasing any financial product from anyone:
1. Why is this product suitable for me?
2. What type of product is this? Is it a whole life policy, unit trust or structured depost? Is it for savings, investment or insurance protection?
3. What benefits does this product offer? Which benefits are guaranteed and which are not?
4. What instruments does the product invest in? How risky are these underlying investments?
5. Is this product suitable for individuals with low, medium or high risk profile? What is my risk profile?
6. How much do I need to commit to this product? Is it a one-time payment or regular payments? What is the penalty if I am unable to make the payment?
7. How long must I stay invested? What are the penalties, restrictions and procedures if I decide to liquidate some or all of my investments earlier?
8. What are the fees and charges? Will there be changes in the fees in the future?
9. What alternative products offered by the same company has similar benefits? How does the recommended product compare with alternative products?
10. Are you licensed to sell me the product? Who can I find if you are no longer working in the industry?
11. Can I monitor the performance of my invesment? How? Will I receive reports and updates on my investments? How often will these updates and reports be?
12. Is there a free look period if I decide after signing on the dotted line that this product is not suited for me? Can I get ALL my money back or are there certain penalties?
In simple words, always ensure that you understand the investment product before purchasing it. Understand why you are buying it and how it fits into your overall financial plan. Take time to consider whether this product meets your needs before finalising your decision. Do not feel pressured to make a decision or make a decision on the spot when you are not prepared for a long term committment.
Ris Low and Claire Lee
No Make-Up...
Controversy, controversy, and more controversy.
What's up with the news surrounding Miss Singapore winner (Ris Low) and first runner-up (Claire Lee)?
First, Ris Low was found guilty of credit card fraud which she failed to declare when she took part in the competition. Ris Low was also said to be suffering from bipolar disorder which was what resulted her in getting a 24 month probation instead of jail time. She was subsequently forced to give up her title after she insisted that she wanted to keep the crown.
Next, she went on to say that Claire Lee had backstabbed her by reporting her to the media and faking a back injury to save "face" in case she was not selected as the replacement.
Today, I read the news that Ris Low was ordered not to go shopping alone as part of her 24 month probation for the credit card fraud. She apparently also has to retake an examination because of notes that were found in her pencil case which she forgot to remove during the actual examination. Perhaps its the bipolar disorder at work again.
Now, I read the news that Claire Lee, the first runner-up, does not want to represent Singapore unless ERM (the organising company), threatens to sue her.
This really makes me wonder on the quality of girls that are being chosen to represent Singapore.
They entered Miss Singapore to represent Singapore correct? So what is the whole fuss about now? Why doesn't Claire Lee want to represent Singapore anymore? Who is going to fly to South Africa in one month's time to represent Singapore?
Perhaps it is time for the governement to step in. Perhaps create a Miss Singapore Academy. Get it ISO certified and stuff. Throw in the scholarships and stuff and who knows, we might win one of the next Miss Universe. Perhaps that should be our Goal 2020!
Instead of throwing so much money into football, why not just invest in grooming the next Miss Singapore who can do the whole nation proud and perhaps win Miss Universe?
There is of course the temporary problem of sending someone in for 2009's Miss Universe.
With less than 1 month to prepare, we will need someone who knows how to put on make-up, be vocal enough to speak her mind, be well-travelled, well-liked (by the Singapore public) and of course well-dressed.
I am proposing that we send blogger Xiaxue (aka Wendy Cheng) to represent Singapore. She is sure to make a huge impact for us. Heck, she could even help all the other contestants photoshop their photos before it is published in the newspaper and stuff.
Read Claire Lee's blog here
Read Related Posts
1. Ris Low's Bipolar Disorder
2. Why is Xiaxue so Popular
What's up with the news surrounding Miss Singapore winner (Ris Low) and first runner-up (Claire Lee)?
First, Ris Low was found guilty of credit card fraud which she failed to declare when she took part in the competition. Ris Low was also said to be suffering from bipolar disorder which was what resulted her in getting a 24 month probation instead of jail time. She was subsequently forced to give up her title after she insisted that she wanted to keep the crown.
Next, she went on to say that Claire Lee had backstabbed her by reporting her to the media and faking a back injury to save "face" in case she was not selected as the replacement.
Today, I read the news that Ris Low was ordered not to go shopping alone as part of her 24 month probation for the credit card fraud. She apparently also has to retake an examination because of notes that were found in her pencil case which she forgot to remove during the actual examination. Perhaps its the bipolar disorder at work again.
Now, I read the news that Claire Lee, the first runner-up, does not want to represent Singapore unless ERM (the organising company), threatens to sue her.
This really makes me wonder on the quality of girls that are being chosen to represent Singapore.
They entered Miss Singapore to represent Singapore correct? So what is the whole fuss about now? Why doesn't Claire Lee want to represent Singapore anymore? Who is going to fly to South Africa in one month's time to represent Singapore?
Perhaps it is time for the governement to step in. Perhaps create a Miss Singapore Academy. Get it ISO certified and stuff. Throw in the scholarships and stuff and who knows, we might win one of the next Miss Universe. Perhaps that should be our Goal 2020!
Instead of throwing so much money into football, why not just invest in grooming the next Miss Singapore who can do the whole nation proud and perhaps win Miss Universe?
There is of course the temporary problem of sending someone in for 2009's Miss Universe.
With less than 1 month to prepare, we will need someone who knows how to put on make-up, be vocal enough to speak her mind, be well-travelled, well-liked (by the Singapore public) and of course well-dressed.
I am proposing that we send blogger Xiaxue (aka Wendy Cheng) to represent Singapore. She is sure to make a huge impact for us. Heck, she could even help all the other contestants photoshop their photos before it is published in the newspaper and stuff.
Read Claire Lee's blog here
Read Related Posts
1. Ris Low's Bipolar Disorder
2. Why is Xiaxue so Popular
Passive Income Update
In the journey to financial freedom, one of the decisions I made was to rapidly increase my passive income. This was done through the acquisition of REITs, bank deposits as well as online income sources.
My updated portfolio for passive income (end September 2009) is as such:
1. 12,000 x Ascott REITs (DPU = 3.55 per half) = $71.00 per month
2. 17,000 x First REITs (Annualised DPU = 7.66cents) = $108.51 per month
3. 11000 x Suntec REITs (Annualised DPU = 11.94cents) = $109.45 per month
4. Maybank iSavvy Deposit = $8 per month
5. Online Income Sources = $30 per month
Total Estimated Passive Income = $326.96 per month
See Related Articles:
1. I Received over $1000 in Dividends for August 2009
2. Passive Income Sources
My updated portfolio for passive income (end September 2009) is as such:
1. 12,000 x Ascott REITs (DPU = 3.55 per half) = $71.00 per month
2. 17,000 x First REITs (Annualised DPU = 7.66cents) = $108.51 per month
3. 11000 x Suntec REITs (Annualised DPU = 11.94cents) = $109.45 per month
4. Maybank iSavvy Deposit = $8 per month
5. Online Income Sources = $30 per month
Total Estimated Passive Income = $326.96 per month
See Related Articles:
1. I Received over $1000 in Dividends for August 2009
2. Passive Income Sources
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