Finwinwin

The Budding Entrepreneurs Resource To Time, Money & Relationship Mastery

Saturday, February 18, 2006

A Quick Tip To Teach Money To Your Kids


I want share with you a success story of teaching money to kids. David Bach, author of the Automatic Millionaire column shared the secret of his financial success.

He attributes his success to his grandmother who taught him as a kid to develop the mindset of an investor and not merely a consumer. I have reproduced a small part of this wonderful article here. Please go through it and enjoy. And if you wish to read more click the link at the end of this post.David Bach and Grandma Rose Bach
My grandmother, Rose Bach, was an amazing woman. A career woman at a time when most women weren't, she eventually became a self-made millionaire by teaching herself how to invest in stocks. She also changed my life by teaching me at a very young age how to invest, thus starting me on the road to financial success.

I received my first lesson from her when I was seven. We were having lunch one day at McDonalds's when she put down her Big Mac and said, "David, I want you to go ask the woman at the counter if McDonald's is publicly traded."

Publicly what?

I didn't know what she was talking about, and I had no intention of asking the woman at the counter such a weird question

But Grandma was adamant. "Go ask, and I'll give you a buck," she said. Back then, a buck was a lot of money, so I ran to the counter to find out what she wanted.

The woman at the counter didn't know what to make of a seven-year-old asking, "Are you publicly traded?" So she got the manager. He asked me what the problem was, and when I explained that Grandma wanted to know if McDonald's was publicly traded, he said, "Well, let's go talk to her."

He escorted me back to Grandma, introduced himself, and explained that McDonald's was publicly traded -- on the New York Stock Exchange, no less.

My grandmother smiled. "I know," she said. "I just wanted my grandson to learn how to ask!"

"I just want him to learn how to ask"

This is such an inspiring article. I wished when I was growing up that I had a grandmother like that. If only I started early to be responsible with my finances, I am sure my life would be much more different. Luckily its not too late for me yet.

"I just want him to learn how to ask"--that is such an inspiring question. I think we all should follow the example of grandma Rose. This question is worth more than all the money you could give to your kids. This could help him or her to be more financially responsible in life.

I end here for today...but here's the link to the rest of the article quoted above (click here).

1 Thing That Malaysian Politicians Lack

There is an write-up on a Malaysian entrepreneur Dr. Nik Mohd Zain Omar at www.Malaysiakini.com. This is what the article teaser stated (in Malay),
Orang politik perlu membabitkan diri dengan perniagaan bagi membolehkan mereka menjadi pemimpin yang berkesan, kata pemilik syarikat perkapalan Nepline Berhad, Datuk Dr. Nik Mohd Zain Omar. [click here for more]
Let me translate it in English,
Politicians needs to involve themselves in business to enable them to be effective leaders, says the owner of shipping company Nepline Ltd, Datuk Nik Mohd Zain Omar. [click here for more]
In Malaysia, the general perception is that there is already tremendous participation of politicians in the business space of the country. And it is usually in the form of corruption and cronyism.

But this is not what this Malaysian entrepreneur probably meant. I think he is
trying to point out the fact that many of the government public enterprises failed and are failing are due to the lack of real world business experience of our leaders. Most of them were thrust into administrative positions that requires them to run multimillion ringgit worth of assets.

They often fail to perform because these responsibilities require a business savvy individuals. More entrepreneurial spirit. Getting popular votes for the elections does not necessarily one becomes a good leader overnight. I think Datuk Nik Mohd Zain Omar has a good point here.

I would like to add, maybe most of them has no business to be part of the elected representatives too. Maybe they would do the whole country good if they just stay at home and mind their own business.

Thursday, February 16, 2006

5 Reasons Why This Blog Is Not Really About Money!


Some of you would be turned off by the words "Money Mastery" of my blog title. But if you think this blog is only obsessed about making money then you are wrong.

Below are my personal reason to embark on a Money Mastery Quest:

1. I value TIME more than money. I believe time is more important than MONEY. It's really important to buy back my time. Right now, I am chained to the reality of needing a 9-5 job. That takes away 8 hours of my life. I want to buy that time back. I don't want to keep growing older having less and less time for my family.

2. I value RELATIONSHIP more than money. Many relationship problem rise due to conflicts in the way we manage money and money expectations. If I value my relationships, I must be able to master my personal financial habits. I also need to master a way of talking about money to the people that I love. I must find a way so that money conflicts becomes a starter of open discussions about money decisions and not something that divides two people in love.

3. I value PURPOSEFUL work more than money. Purposeful work is a job that you cherish and are passionate about. Many people are in a job because they need the money. They are scared to go out solo and start their own thing.

The idea of being stuck in a job, will never exist if more and more people are enterprising. But entrepreneurship is risky. It's safer to be in a job, whether it is purposeful or not. But being stuck in job you hate is like being stuck with a girlfriend that you don't love. Or married to a spouse you never cherished.

Thus, I believe if I wish to have a purposeful and passionate job, I must start a business and be more entrepreneurial. For that I need to master money because many business fail in the first five years due to financial mismanagement. Heck, if I mismanage my personal finance is it rocket science to see that I would bring the same cancer to a business?

4. I value CHARACTER more than money. I realise now that the discipline of managing money in a right way...do spill over to other areas of my life, turning me into a better student, work associate, family member. It forces me to hold closely the principles of personal integrity, discipline, delaying gratification. For example, making budgets forces me to prioritize my needs and wants and discipline my impulse for quick gratification.

Yes, mastering money can build character.

5. I value MONEY. Surprised? Yes, money do have value. Since childhood I keep hearing people say that money is evil. But now I see, money is not evil but rather the heart of men. Money has it's own value. There are things that money can and cannot buy. I want to understand this invention of man called money. If I understand the value of money, I would be a master to it and not a slave to it.

Tuesday, February 14, 2006

Spiderman Needs A Financial Planner

Spiderman 2 was released about nearly two years back, but even a repeat viewing does not diminish its entertainment value. It was one of the rare movie sequels that was better than its first installment.

Watching it again prompted me to make a few observations.

1. I sincerely feel Peter Parker really do need a financial planner. Our friendly neighbourhood superhero seems to have "never ending woes" when it comes to money management.

Perhaps if he is more careful with managing his money he won't be in such a bad shape trying to always hide from his landlord when it comes to paying rent, and other financial obligations that a young adult has.

2. I also believed that if the Super Villain, Dr. Octopus knew how to invest his money, he won't need to steal money from the bank to further support his research work.

If they can't afford the money, I think grabbing a book by Robert Kiyosaki, or Suze Orman would surely help them see how important money skills are to achieve their goals in life. Money skills are critical survival skills today that is more important than jumping over buildings, fighting masked men in public and wearing spandex costumes.

If I ever meet these guys...I would give Spidey a copy of "The Richest Man In Babylon." And to Dr. Octopus "The Millionaire Next Door."

Maybe I am stretching too much "money talk" for the movie. Anyway, I must confess that, Spiderman 2 really is one hell of a movie. Highly entertaining. Full of action. On second thought, if these two masked character had financial planners---it probably won't be this entertaining!