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Wednesday, January 13, 2016

World-class thinking

I was reading this book "How Rich People Think" by Steve Siebold who interviewed some of the richest people in the world for over past 26 years. In the book, he made reference an average person to "middle class" and a world-class thinker as "world-class".

The riches believe it is a right to be rich and the path to riches requires specific knowledge, referral network and monitoring their associations. The world conspiring to help them and they dreams of having enough money to impact the world and welcomes the masses to join them. They set an example and teach their kids to get rich, build network and for their dreams from young.

A compilation of the 100 differences below:

Middle Class World Class
Focuses on Saving Focuses on Earning
Thinks about money in linear terms Thinks about money in non-linear terms
Believes hardwork creates wealth Believes leverage creates wealth
Believes money is the root of all evil Believes poverty is the root of all evil
Believes being rich is a privilege Believes being rich is a right
Believes money is complicated Believes money is simple
Believes rich people are crooks Believes rich people are ambitious
Believes building wealth is a solitary effort Believes building wealth is a team effort
Worries about money Dreams about money
Believes money is negative Believes money is positive
Believes rich people are shallow Believes rich people are strategic
Believes the road to riches is paved with formal education Believes the road to riches is paved with specific knowledge
Believes money is earned through labour Believes money is earned through thought
Worries about running out of money Thinks about how to make more money
Thinks about spending Thinks about investing
Sees money through the eyes of emotion Sees money through the eyes of logic
Underestimates the wealth building power of referral marketing Knows referral marketing creates millionaires
Focuses on pleasurable activities Focuses on money making activities
Sees money as a finite resource Sees money as an infinite resource
Earns money doing things they don’t like to do Gets rich doing what they love
Believes rich people are ruthless Believes rich people are generous
Has a lottery mentality Has an action mentality
Waiting to be rescued from financial mediocrity Knows no one is coming to the rescue
Believes rich people are smarter Believes rich people are more savvy
Sees money as controlling Sees money as liberating
Believes money changes people Believes money reveals people
Believes in working for money Believes in working for fulfilment
Believes you have to do something to get rich Believes you have to be something to get rich
Plays it safe with money Takes calculated risks
Believes you have to have money to make money Believes in using other people’s money
Believes jobs are the safest way to earn money Believes outstanding performance is the safest way to earn money
Believes in financial scarcity Believes in financial abundance
Sees money as a weapon Sees money as a tool
Believes they aren’t worthy of great wealth Believes they deserve to be rich
Denies the importance of money Knows money is a critical component of life
Believes money is their enemy Believes money is their friend
Waits for their ship to come in Builds their own ship
Believes financial markets are driven by logic and strategy Believes financial markets are driven by emotion and greed
Believes money is about status Believes money is about freedom
Lives beyond their means Lives below their means
Equates money with stress Equates money with peace of mind
Thinks small Thinks big
Believes people are out to get them Believes the universe is conspiring to help them
Believes their thinking is unrelated to their net worth Knows thinking is the catalyst of all results
Believes the more money you earn the more stress you experience Believes the more money you earn the less stress you experience
Believes the more money you make the more problems you will have Believes the more money you make the fever problems you will have
Believes the rich are obsessed with money Believes the rich are obsessed with success
Believes the rich are selfish and self-absorbed (negative) Believes the rich are selfish and self absorbed (positive)
Dreams of having enough money to retire Dreams of having enough money to impact the world
Believes it’s shrewd to be cynical Believes it’s shrewd to be optimistic
Believes the rich should support the poor Believes in self-reliance
Sees the wealthy as oppressors Sees the wealthy as liberators
Believes getting rich is outside their control Knows getting rich is an inside job
Thinks the rich believe they are more intelligent Knows intelligence has little to do with getting rich
Associates with anyone Carefully monitors their associations
Have loosely defined goals with flexible deadlines Have highly defined goals with do or die deadlines
Works as little as possible Works as smart as possible
Loves to be comfortable Is comfortable being uncomfortable
Is timid and scared Is aggressive and bold
Longs for the good old days Dreams of the future
Plays not to lose Swings for the fences
Sets their financial expectations low so they’re never disappointed Sets their financial expectations high so they’re always excited
Has a financial windfall and worries about losing it Has a windfall and figures out how to leverage it
Externally motivated to make money Internally motivated to make money
Suffers from lack consciousness Enjoys prosperity consciousness
Believes money will make them happier Knows money has little to do with happiness
Believes people seek money for power Believes people seek money for control
Never makes the connection between money and health Knows money can save your life
Believes ambition is a sin Believes ambition is a virtue
Believes rich people are snobs Believes rich people are guarding their consciousness
Believes rich people are arrogant Believes rich people are confident
Believes self-made millionaires had an unfair advantage Knows their advantage was hard work
Bases their beliefs about the rich on the minority Bases their beliefs about the rich on the majority
Believes they’re missing something Knows it’s beliefs that make the difference
Believes they lack desire Knows we all have everything we need to be rich
Believes they must choose between a great family life and being rich Knows you can have it all
Believes having a job gives them security Knows there’s no such thing
Believes starting a business is risky Believes starting a business is the fastest road to wealth
Believes it’s wrong  for a small group of people to possess most of the money Welcomes the masses to join them
Believes wealth creates dysfunctional families Believes unearned wealth creates dysfunctional families
Believes money creates corruption Believes a lack of money creates corruption
Believes the rich are spiritually bankrupt Believes the rich are among the most spiritual people in society
Believes if they become wealthy they will lose their friends Believes being wealthy will expand their network
Believes you have to sacrifice your health to get rich Believes being rich will make you healthier
Hands down their limited beliefs about money to their children Hands down their unlimited beliefs about money to their children
Teaches their children how to survive Teaches their kids how to get rich
Teaches their kids about money by example Does the same thing
Teaches their kids how to save their pennies Teaches their kids how to invest their pennies
Encourages their kids to be nice and make friends Encourages their kids to be smart and build network
Teaches their kids to be happy with what they have Teaches their kids how to go for their dreams
Minimizes the importance of money with their kids Teaches their kids the importance of money
Teaches their children the games of the masses Teaches their children the games of the wealthy
Doesn’t believe in personal development or self help Believes they’re the secret to getting rich
Doesn’t connect travel with wealth Knows travel connects them with the wealthy
Has access to the social skills of the masses Has access to the social skills of the most refined among us
Would rather be entertained than educated Would rather be educated than entertained
Believes rich people are workaholics Knows millionaires have a ton of fun
Focuses on money when they need it Focuses on money all the time

Saturday, December 12, 2015

KEK at Pandan Gardens

Pandan Gardens is becoming more happening. I just had my dinner at KEK @ #01-12, 200 Pandan Gardens. Very yummy and taste as good as its parent company at Bukit Merah. The setup is rather modern, with a few round tables and square ones. The room is air-conditioned, hence very cooling. However, the sound from the kitchen is rather loud so not so conducive to be sitting in there too long. The salted egg crabs and mustard orange prawn ball are a good combination. Salty and sweet.


Seafood horfun ($6)

Mustard Orange Prawn ball ($15)

Sambal Kangkong ($8)

Duck of the Day ($15)

Salted Egg Crab Steamed (based on weight, small crab about $45)

Steambuns ($1.2 each)

Just outside this restaurant, there was also an opening of an outdoor trekking shop. They were having a bbq get together today.


Sunday, November 29, 2015

SG Property Cycle

I took a quick look at the Singstat which provides the Private Property Price Index over a 10 years period from 2003 to 2013. We could easily identify that the property was in the recovery phase from 2003-2006, boom phase from 2006-2007, with a slight slump in 2007-2008 and stabilised in 2008-2009. The market then began its next cycle of recovery from 2009. It was obvious that the industrial property was experiencing a rapid growth, unlike that of the residential which plateaued due to the government intervention.


There are several cooling measures that slowed down the property boom. This website has listed most of it. I have classified it into a few key areas which the government has been tweaking the system.
  1. Additional Buyer Stamp Duty (ABSD) - increase hurdle for ROI
  2. Seller's Stamp Duty (SSD) - reduce subsales
  3. Loan to Value (LTV) limits - harder to borrow
  4. Minimum Cash Down Payment - harder to buy
  5. Total Debt Servicing Ratio (TDSR) - ensure financial prudence
  6. Mortgage Servicing Ratio (MSR) - ensure financial prudence
  7. PR / Foreigner restriction - restrict foreign investments
  8. Minimum Occupation Period (MOP) rule - reduce multiple purchases
I think government intervention will have delayed repercussions from 2017 when the supply drops drastically.

Saturday, November 28, 2015

RES class with my hunny

Today is the first day Sungsoo and I are taking classes together. There is only one training school in the west - Pioneer Training in Jurong East. I'm glad that it is just 5 minutes from home. After investing in Lakeville, we become more interested in the Singapore property market. Well, in some sense, we should learn more before we invest, but then again we learn faster and be a better advisor when we have first gone through the process of purchasing. I am looking forward to more lessons ahead :)


Friday, August 7, 2015

HDB BTO (Clementi Crest)

Clementi Crest HDB is really expensive. A 5 room flat (113sqm) is costing about $576K (2nd storey) to $725K (40th storey). Despite only 156 units of 5 room flat available, it was 10 times oversubscribed. My husband and I managed to get a queue number 198 but I doubt we are going to get a high floor unit which we always wanted.