Here is a running blog post that I update daily (well, that's the goal anyways). A challenge I've set for myself is to write a short paragraph of one thing I've learnt from reading during that day.
26/2 - I Will Teach You to Be Rich - Ramit Sethi
If used correctly, credit cards are pivotal to building long-term wealth. Credit cards are used to build a credit score, which in a nutshell, is an indicator of your reliability in repaying borrowed money on time. A good credit score could potentially save you thousands and thousands in the future when you seek loans such as a mortgage, car loan, etc. With a good credit score, lenders are more likely to give you a lower interest rate, as you are seen as less risky.
Building a good credit score is as simple as paying off your purchases on credit in full, and by the due date. NEVER leave a credit balance.
25/2 - I Will Teach You to Be Rich - Ramit Sethi
"Getting started is more important than becoming an expert." - Introduction
You don't need to be a financial expert to get your personal finances sorted. In fact, the reason why many people don't achieve their financial goals is because they think they're not 'smart' enough. This severely flawed belief is DANGEROUSLY limiting your potential, so please get rid of it :)
23/2 - Richest Man in Babylon - George Clason
The 7 steps to financial freedom:
Save at least 10% of your income.
Budget the income you have left effectively.
Invest - Make your money bring in even more money.
Protect your investments from loss, so you maintain the consistency of its income stream.
Own your own home.
Make sure you have adequate financial resources for future self.
Increase the income you earn.
22/2 - Richest Man in Babylon - George Clason
Wealth accumulation starts at paying yourself first. This means that no matter how little you earn and how monstrous your expenses and financial obligations are, you must keep some of your income. 10% of your income is a nice figure to start off with. Making efforts to gradually save a higher percentage of your income is even better.
21/2 - Richest Man in Babylon - George Clason
“The more of wisdom we know, the more we may earn. That man who seeks to learn more of his craft shall be richly rewarded.” - George Clason
19/2/21 - Influence: The Psychology of Persuasion - Robert Cialdini
The reject-then-retreat strategy to compliance works marvellously because of the reasons below:
The contrast principle: When compared side-by-side to the pricier offer, the second, smaller offer seems even smaller than it really is.
The prospect feels like they dictated the final agreement. When a person feels like something was their idea, they are much more inclined to happily accept it.
18/2/21 - Influence: The Psychology of Persuasion - Robert Cialdini
We often find ourselves doing things just to 'stick to our word', even if we secretly have a gut-feeling that the action is a terrible idea.
An extremely (and concerningly) common example of this are married couples who continue to stay together, even though both parties 100% know that there's no more passionate love in the relationship.
This is because society generally values and praises individuals who act with consistency. Inconsistency in one's beliefs and words with their actions is seen as an undesirable personality trait. An individual who is inconsistent may be viewed as indecisive, illogical, two-faced, and unreliable.
17/2/21 - Influence: The Psychology of Persuasion - Robert Cialdini
The rejection-then-retreat method is a strategy marketers use to get prospects to buy into their product/service. An example of this method is when a product is offered at an exaggerated price, to which the marketer expects the prospect to refuse. Then, the marketer quotes the product at the original, 'reduced' price (that is ideal for the marketer). The prospect is much more likely to agree to the ideal offering when the rejection-then-retreat strategy is used. The technique is way more effective than trying to convince a prospect to purchase the product at original price all along.
16/2/21 - Influence: The Psychology of Persuasion - Robert Cialdini
"There is an obligation to give, an obligation to receive, and an obligation to repay." - Ch. 2
The reason why the reciprocity rule is so easily exploited is because it's virtually impossible to reject a gift. Upon receiving the gift, the gift-receiver has no way out of the feeling of indebtedness, except to repay the giver.
13/2/21 - Influence: The Psychology of Persuasion - Robert Cialdini
The reciprocity rule means that whenever someone does you a favour (uninvited or not), you feel a sense of debt to that person. This influences you to find ways to repay that debt.
Society punishes people who don't repay this debt by labelling them as inconsiderate, a moocher, parasite, etc. This is why we go out of our way to reciprocate and diminish feelings of indebtedness.
12/2/21 - Influence: The Psychology of Persuasion - Robert Cialdini
A reason why unreasonably expensive things are profitable for businesses is because of the pre-conception that expensive = good.
11/2/21 - Confessions of a Real Estate Millionaire - Dymphna Boholt
"There is something that is much more scarce, something rare in ability. It is the ability to recognise ability." - Robert Half, Ch 16
The skill of recognising ability is important in leadership. Effective leaders are ones who are able to delegate tasks to the team members most suited to the task. This involves being able to identify the strengths in others.
10/2/21 - Confessions of a Real Estate Millionaire - Dymphna Boholt
The answer is guaranteed to be 'no' if you don't ask. If you do ask, the answer could potentially be 'yes'.
9/2/21 - Confessions of a Real Estate Millionaire - Dymphna Boholt
Good debt is debt that gives you the opportunity to generate more income - income that is higher than the interest (and other expenss) incurred on the debt. Examples of good debt include: investment property loans, share investment loans, and business loans (provided the business is profitable).
7/2/21 - Confessions of a Real Estate Millionaire - Dymphna Boholt
"A pessimist is one who makes difficulties of his opportunities and an optimist is one who makes opportunities of his difficulties." - Harry S Truman, Ch. 10
6/2/21 - Confessions of a Real Estate Millionaire - Dymphna Boholt
Make sure to surround yourself with people who have a positive attitude. Instead of pulling you back, these people will help you maintain enthusiasm and motivation to work towards your goals.
5/2/21 - Confessions of a Real Estate Millionaire - Dymphna Boholt
"Learn all you can from the mistakes of others. You won't have time to make them all yourself." - Alfred Shienwold, Ch. 7
3/2/21 - Confessions of a Real Estate Millionaire - Dymphna Boholt
"Lack of will power has caused more failure than lack of intelligence or ability." - Flower A Newhouse, Ch. 4
2/2/21 - Confessions of a Real Estate Millionaire - Dymphna Boholt
In order to be successful, you need to take 100% responsibility for your own actions, and the consequences of those actions.
31/1/21 - Think and Grow Rich - Napoleon Hill
Working on 'probation' (aka. volunteering) is a powerful and effective way to get your foot in the door for your career. By offering to work for free, you signal to the prospective employer that:
You want the role not for the paycheque, but because you are deeply passionate about the work and company.
You are so confident in your ability to exceed the employer's expectations and get hired, that the lack of payment isn't a risk at all.
29/1/21 - Think and Grow Rich - Napoleon Hill
Employers seek much more than just academic talent in their prospective employees. Qualities such as work ethic, interpersonal skills, and proactiveness are equally as important for most occupations - if not, more.
28/1/21 - Think and Grow Rich - Napoleon Hill
"The person who stops studying merely because he has finished school is forever doomed to mediocrity, no matter what may be his calling. The way to success is the way of continuous pursuit of knowledge." - Ch. 5
Most people believe that learning is only supposed to happen in the years of formal education. For someone who wants to evolve in their career, whether its academic or practical, learning should be happening Every. Single. Day. even beyond school.
26/1/21 - Think and Grow Rich - Napoleon Hill
You will ALWAYS get the salary or pay that you desire, as long as you are worth more than you "cost" in the eyes of the marketplace.
For example, lets say you are a copywriter. If your 400-word sales page copy generates $100,000 in revenue, the client of the sales page will easily drop $5000 for it. This is simply because they are getting a $95,000 kickback by only giving up $5000 (ie. virtually nothing).
When negotiating a pay, your aim is to frame yourself as a no-brainer, irresistible offer.
24/1/21 - Think and Grow Rich - Napoleon Hill
Making excuses for mediocracy is a sure-fire way to stay that way. It's surprising that the majority of people who don't succeed are willing to spend more time coming up with alibis to justify their failures, instead of owning it and learning from it.
Messages people tell themselves, such as "if only I was born rich" or "if I had been given the chance", do absolutely NOTHING but demolish their potential for success.
23/1/21 - Think and Grow Rich - Napoleon Hill
"Every man is educated who knows where to get knowledge when he needs it, and how to organise that knowledge into definite plans of action." - Ch. 5
This quote affirms the belief that merely having knowledge does not equate to success.
As Dan Lok also says, the marketplace couldn't care less about the amount of random knowledge you can fit in your head. What they really want is the ability to learn effectively and apply knowledge to resolve problems.
22/1/21 - Think and Grow Rich - Napoleon Hill
"Failure is a trickster with a keen sense of irony and cunning. It takes great delight in tripping one when success is almost within reach." - Ch. 1
The state of failure is only temporary (unless you give up).
When you encounter those excruciatingly painful situations of failure, just remember that:
People who are more successful than you have fallen hard on their faces more times than you.
20/1/21 - Rich Dad Poor Dad for Teens - Robert Kiyosaki
Credit cards are scary. You can lose control of them real fast, real bad.
If you want to use a credit card for purchases, aim to pay the bill in full. Credit cars often have crazy high interest rates. Paying the minimum amount means that the interest rate gets applied to the remaining balance, which means trouble.
If used responsibly, credit cards can signal that you are reliable with payments. Make sure to pay the credit bills on time to establish a 'good credit rating'. This is beneficial when it comes to borrowing loans in the future.
19/1/21 - Rich Dad Poor Dad for Teens - Robert Kiyosaki
There are two types of debt. 'Bad' debt and 'good' debt.
Bad debt is one that you are required to re-pay, whereas good debt is one where someone else is re-paying it for you. An example of good debt is a house you are renting out to tenants. The rent you collect from tenants pays for your mortgage. Even though the mortgage is yours, no money is going out of your pocket towards the liability.
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