Tuesday, September 25, 2007

Singapore's Self-Made Millionaire Teaches The 5 Steps To Financial Wisdom

Singapore's Self-Made Millionaire Adam Khoo teaches you the 5 steps to financial wisdom... If he can do it as a broke guy who barely passed high school, you can too.

1. When hiring a person to work for you, hire one who is more knowledgeable in the position you intend to hire him/her for. Make sure your employees are SMARTER THAN YOU ARE! This way, you will have less worry if they are able to perform the job. You get to learn from them, and youll have more time to attend to other ventures. As long as you compensate them well, EVERYTHING should be fine, so don't worry about being "taken over" or anything silly like that.

2. Changes that involve bargains can spell p-r-o-f-i-t. Take for example in a supermarket where there is a sale. Peoples most likely reaction is to buy and stock up. It is normal reaction but peculiar when analyzed. In the stock market, when there is a price crash, people tend to shy away. This is contrary to what happens in the supermarket. Why?

Perhaps, we will never know. On the other hand, when prices in a supermarket go up, people shy away. Again, in the stock market, when prices go up, people start buying which shouldnt be the case.

3. Financial knowledge is knowing the difference between assets and liability.

Well.

Go ahead.

Look it up. Dictionary.com. I will wait.

Actually, an asset or a liability depends on the PERSPECTIVE. What you think is an asset, could be a liability to another person. As mentioned before, anything you own that earns is an asset; otherwise, it is a liability.

4. Oftentimes, we stick to the conventional way of doing business: This is the way it is done here. For all we know, the conventional way might not be the best way. Look at it another way, the unconventional way. It could save money, and money saved is money made. In other words, although it is a cliche of sorts...THINK OUTSIDE THE BOX!

5. High emotions (fear included) can sometimes cripple financial knowledge. Do not let your financial ability submit to your emotions. Similarly, making financial decisions without proper training on finances is disastrous.

Money comes and goes. But unlike money, financial knowledge stays. The nourishment it needs to stay keen is to keep it accurate and up-to-date.

If you feel like youre being pushed around, stay smart, exercise self-discipline, and keep updated.

The basics of financial knowledge should have been taught in school; instead you learned how to sit down, be quite, and take notes. This explains why the poor and middle class comprise the majority of the populace with its gap from the rich ever widening.

If a person winds up with a lot of cash without financial ability, this person is bound to find his/her money gone soon. TRUST ME, it's happened to me already and I'm only 24! Weve heard of athletes who earned millions during their prime and movie stars who amassed untold fortunes only to grow old broke.

Having financial knowledge is truly vital to maintain and grow your wealth.

Ben Rosario is an aspiring entrepreneur and NLP enthusiast residing in South Texas. He hopes you appreciated the contents of this article. For more info, please visit:

Secrets of Self Made Millionaires