Choose to Be Rich "Learn It!" Review

Been awhile since my last blog. I was suppose to finish the choose to rich series by Sunday, 20th March 2005. Sadly I haven't. I have been trying very hard. Listen to the audio over and over again and also reading the "Learn It!" session workbook over and over again hoping to get more out of it. Today I've completed the learn it section and made a few new commitments.

In the previous section, it tunes my mind to be more focused now on to getting rich and what would be required of me to go there. To set my mind and commit myself into this area for now to eventually achieve my goal in life. From this section, I've learn the fiver pillars of financial literacy.

Pillar One: Economics.
One has to know how this works. At least in general. The ups and downs, the reason why and some history of why things happen. All of us plays a part in this economy and since the advancement of technology and communications, we become more globalized and hence each country's economy is closely related to one another affecting each other. This is important because it will give us the knowledge to understand the current economy situation and make the appropriate decisions.

Pillar Two: Accountings.
Everyone must know how to work out their OWN cashflow. Managing own finance. It's not so much about going into hard core accoutings, but knowing the fundamentals of it and be able to tell what these numbers are saying. To be able to know the how to read a balance sheet (asset and liabilities) and income statement (income and expenses).

Pillar Three: Taxes.
A better understanding of what is tax avoidance and tax evasion. It makes me better understand that laws are made by the rich. Infact, tax laws are written to force people to be on the B and I side of the cashflow quadrant no matter which country you are in! It forces the Bs and Is to have good accountings. I'd learn to be tax literate and will be looking for local advisers to furnish me on more details. Also included were types of coporations and their pros and cons under the tax laws in the states.

Pillar Four: The BI trangle.
On the outside, The mission, leadership and team is required. This shapes the general direction of the business. By shaping, it helps to find the right kind of team players in to share the common mission.
Next would be talking about INSIDE the BI triangle.
1. Cashflow management- that is the bottom line of anything business. That's why it is the base. This reflects how well the business is doing.
2. Next is communication management- Inernal and external! One must be able to sell the idea out for partnership, sponsors, investors! Sell it to the team to work towards the same direction and mission! No matter where, everyone is selling. Interivewees sell themselves, political sell their ideas and even over the phone conversation, both party are selling their idea...may it be going to somewhere to have lunch or even rejecting it. Selling is not about being able to talk, it's about listening. Knowing the need.
3. System management- a system that will make the business work even when you are not around. The system must be able to kick in and generate income even if you are not around.
4. Legal System- Taling about how important your intellectual property is! PATENT your ideas and have a legal adviser around. Legal fees may be expensive, but to loose your property is even more expensive especially when someone else takes it and make it into a very successful business! Know what kind of patent is available and patent your property well.
5. Product- It is at the top becasue it embodies the business's mission, and the success of it depends of all the factors below it. It is important, but not as important as the rest of the BI triangle because without the rest of the tiers below it, it has nil value.

This pillar magnifies the importance of having a team! No one can be an expert in ALL the BI triangle. Reason why S quad business stay smal is because they try to be the whole BI triangel themselves.

Pillar five: Investings
Investing is a plan! It is not a one off strike rich tips that everyone wants. This program introduces the different kind of investors:
1. Accredited Investor
2. Qualified Investor
3. Sophisticated Investor
4. Inside Investor
5. Ultimate investor
Everyone MUST learn how to invest. You may be from the E,S or B quad, but if you do not know how to invest. You will loose out. Many Bs who do not learn how to be an I, eventually due to their lack of knowledge in being the I, the usually loose everything there. So start learning how to invest now!

First, one have to choose what kind of plan you want. To be secure,comfortable or rich? Do have a protection portion! Should anything happens, at least the family is covered. In the program, it introduces different kind of investment vehicles around.
1. Paper Securities
-Bonds
-Stocks
-Mutual Funds
2. Retirement plans and accounts
3. Annuties
4. Real Estate
-Property
-REITs
-Real estate mutual funds
5. Business
- Franchising
- Network marketing
- Buying business
- Starting business

It states how the above investment vehicles come about, how it is done and also gives the pros and cons of it. One has to make use of all these vehicles to do out their investments plan. One can start on the Safe and secure plan and slowly work up to the plan to be rich. Some safe and secure plans should still be kept. Some basic things like certain savings stay the same. The more you have, the more you have to protect. It'd be good to have a financial adviser to help here.

Well, the "Learn It!" portion is HUGE! I believe I will need to refer it from time to time, have advisers to assist me here as well as reading up more books on the five pillars.

Next, it's time to move on with the DO IT portion. I'm ready!!!!!

26th March 2005, 0409H signing off to DO IT! Cheerios!