6 Important Skills of Self-Made Millionaires
http://addicted2success.com/success-advice/6-important-skills-of-self-made-millionaires/
There are ambitious individuals all over the world working hard to achieve millionaire status. It is a status that most would agree epitomizes financial success. We’ve all heard countless success stories of people who have become millionaires, some even at a young age. We also know that many of these people started with nothing, which is likely where the term “self-made” comes from.
TEH : My parents was mee-hawkers. I have to self-support myself during uni-years (by giving tuition and skipped some of my classes). But due to my financial 'ignorance', I was always in debt. So ... I took a bold step to re-invent my financial mindset. Glad I done that some 10 years ago.
TEH : Real Estate (properties) investment is something I m learning ... want to diversify into that AFTER market-crash. At the moment, I was lucky to be able to grab an apartment in 2012 before the price doubled.
Yes ... currently building the tuition-biz (that is why I needed to stop my full-time teaching job) ... no intention to sell but expanding my second center is 2016 priority and recently ... I got some positive movements on that. More on that in future once all 'settled'.
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I do not know how to create apps or softwares ...but I have information products here where I could sell. Example : I m ''selling" my e-learning course which I m planning to start mid-July if the numbers are there. Example : I wanted to create a new website(homestay in mind) with few tech-guys ... as I do not know anything much about internet-marketing and how to create a site.
Oh yes ... I think I did not write about www.goorooo.com which did not take off, after few meetings and discussions. It was beginning of 2014(Jan) ... where our 'competitor' could be www.kaodim.com, a service market-place. OURS was ... more of guru/sifu market-site ... those who wish to find mentors? Example ... if you wish to look for a yoga-teacher (reputable ones), where could you find ... online? There are few new sites coming up ... to 'compete' with kaodim ... such as service-hero, recommend ...
I cant even update and handle my own www.tratles.net ... it takes lots of efforts.
Heard of UBER or AirBnB, right?
So we know that it’s possible, and we know that there are many ways that people have done it. But what we don’t often hear about are the specific skills that these self-made millionaires possess that are paramount to their ability to create substantial financial wealth, regardless of which path they take to create it.
TEH : I think IQ, skills ... knowledge etc etc are over-valued. Haha ... while we do need specific skill and knowledge in our field(s), we definitely need MORE than that ... to do financially well.
SIX SKILLS needed
Self-made millionaires know how to manage money. They know how to use the money they make to make more money. They multiply their wealth by getting their money to work for them. Most people don’t know how to make money work for them, so they never stop working for money. Most people spend the majority of their income on personal expenses and whatever is left will typically sit in a low-interest savings account.
TEH : This is hard ... hardest for me as I was a teacher-mindset. But, when I decided to change ... I definitely need to learn how those well-to-do individuals done it ... how to make our money work for us when we do not even have 'extra', right? Stock-market is a vehicle we could generate that ... buying good dividend stocks, for example. Or better ... wait for crash and buy cheaply?
While most self-made millionaires began by working for money, they kept personal expenses low and put their remaining income to work. They didn’t let their money sit in any one place for very long. They put it work by using it to grow their business or purchase investments that would yield a return. By minimizing personal expenses consistently for several years while continuing to re-invest as much money as possible into income-generating activities, these individuals were able to compound their wealth in relatively short periods of time.
TEH : Yes ... easier said than done for majority of us ... who work-hard for the monthly salary. While my monthly salary with Taylor's College was below RM5k(with 20yrs teaching experiences, mind you ... new lecturers being paid RM2.5k) ... I have no choice but to work-hard on giving tuition ... lucky for me as I love what I am doing ... and do not feel the 'burden'. Remaining for investment?? That is also another DIFFICULT for most of us ... with lacking of funds and knowledge, we are potentially lose our hard-earned money ... instead of generating us profits??
I am still and will be in the thick of market activities as I m preparing for the coming crash. Yes, I m in "capital preservation" stage ... where losing 10-20% is ok with me rather than stuck 50% inside during crash.
Re-invest the profits ... yes, if our biz could break-even in first few years ... and we could remain prudent to look for new opportunities, to invest. I was told that more than 70% biz could not sustain 3 years and have to close down due to 'losing' money. I will like to talk to more biz-owners ... how they failed and succeed to navigate themselves out of biz-failures. Amazing stories ... worth listening to.
#2 : They know how to create win-win relationships
Self-made millionaires know how to build and cultivate win-win relationships. Believing that their network is equal to their net worth, they make a commitment to cultivating relationships with people who can help them achieve their goals, and in exchange they help those individuals achieve their goals. By continuously expanding their network, they can create opportunities by connecting the right people together. And as their network expands, the number and quality of the opportunities they are presented with also increases.
TEH : I was a loner ... introvert too. But ... slowly over the years, I have to learn the skill #2 ... BUILD win-win relationships. Yes ... I attended many talks, in-touch many with similar interests and see how we could work together to benefit each other. WIN-WIN is always in my mind ... if the person is not moving in similar path(and beliefs) ... then it wont work for long, anyway. Yeah ... many painful 'friendships' broken along the way ... hurt me lots, at times. But ... I have to let go and see that as lessons ... as my failures fold.
At the moment, I do still hope to connect to few investors who trust me enough ... to invest for them during market crash. Yes ... win-win ... I will help others to understand the crash ... preparations needed and how we could capitalise on the event. It is l... after-all a 10yr once event.
I do still wish to meet more for coffee-date and market-crash talk ... to understand better how I could prepare for the coming crash. Easier said than done ... as most retailers will be badly burnt and forums will be quieten.
Watsapp/call me up for a drink (on you, ya) ... we shall meet. Win-win, ok
#3 : They can delay gratification
Self-made millionaires have the discipline to delay gratification. Most people are very impulsive and entertainment driven. They often spend money on unnecessary things that give them immediate pleasure but have no real long term benefits. Most self-made millionaires had little interest in short term pleasures as they built their wealth. They had the discipline to not waste money on unnecessary items or waste time on unnecessary activities. They made plenty of sacrifices that the average person doesn’t make, and as a result they are now able to enjoy life at a level that the average person can only dream of.
TEH : I have to admit that I m lax in the "delay gratification" ... there are few purchases, which I see it as impulsive ... also the pressure to ''give our family the best". Example : I bought my foldable bike, another one for my son and girl. Those items sitting idle after the hype of riding bike as one of family activity!! I do ... once a while, cycle. But I over-paid ... few k for bicycles??
Or I changed my 3year-old flat-TV (I was having 21" tube-sony TV which was 20years old when I first came back to KL, broke) ... into the larger 'smart TV' ... just like that!!
While I do not have much entertainment (watching candlesticks and reading investment books are my fav past time) ... minimal in spending kids for playgrounds, games or movies.
So ... I really need to get-back into this SKILL : DELAY GRATIFICATION.
Thanks for the reminder.
#4 : They know how to influence others
Self-made millionaires know how to influence and persuade others to help them do what they need to do. Even though the term “self-made” implies that no one else’s help was used, in reality we all require the help of others to achieve our goals. For example, a real estate investor will likely not build wealth in real estate without the help of real estate agents, appraisers, mortgage lenders, contractors, or tenants. A large goal often requires the involvement of several people. Self-made millionaires know this, and have therefore become skilful communicators. They are able to effectively persuade others to willingly contribute whatever services they can.
TEH : This is definitely my weakest skill ... dealing with HUMAN .. oh boy. I do not even know how to persuade people to join my trading-group or readers to follow me. Because of my own belief ... I believe everyone has their own likings, beliefs and interests. Also ... I do not even able to ask many readers to attend my free e-meeting ... most of them are my own trading-members.
I am not good in communication and speaking ... that is why I joined a ToastMaster group. Those interested in joining me in our TM group, let me know too. I do need to improve my communication skills ... hmm ... wonder how.
#5 : They are resourceful
Self-made millionaires seldom let a lack of resources stop them from achieving their goals. If they didn’t possess the resources they needed to seize an opportunity, they found someone who did and negotiated a win-win arrangement for both parties. If they needed money, they found where to get it. If they needed certain talents, they found the right people. Self-made millionaires know that a lack of resources is rarely the problem – a lack of resourcefulness is. When resources were scarce, they learned to be very efficient with what was available to them. Being efficient with a little was practice for being efficient with a lot.
TEH : Yes ... I do not have much funds to fully capitalise in coming crash ... so, I know I have to speak to more of my 'friends' who could trust me enough to invest their money during crash and I could earn some commissions from the profit?
"Being efficient with a little was practice for being efficient with a lot."
I like this word ... we need to learn to manage small-funds efficiently to be able to manage a larger funds. To earn 10% p.a with RM10k is not difficult at all ... but to manage RM1mil and profit 10% (that is RM100k for u) would be greater challenge. Understand that helps me to grow larger now ... reaching out to many 'well-do-do' friends ... or any readers out there who wish to meet-up to discuss on this? I will be very glad to be given a chance (recently, I was given a chance to help to manage a huge amount of money, and I m still excited about that ... hope TTB or KYY will call me up too).
#6 : They know when to delegate
Self-made millionaires are conscious of the value of their time. They deliberately spend the majority of their time on high-value activities (activities that yield the greatest return). For example, an entrepreneur whose goal is to earn $1,000,000 in a single year and is prepared to spend 2,000 hours on work-related activities, calculates that the value of one hour of his time is $500 ($1,000,000 divided by 2,000 hours). In order to achieve that goal, that entrepreneur must spend his time on activities that are worth $500 per hour to their business. All other activities need to be delegated. You can’t expect to earn $1,000,000 in a single year if you spend the majority of your time on activities that can be delegated to someone else for $20 per hour.
TEH : TIME = MONEY ... that is what many said ... but many people spent their time ... doing nothing much ... related to their GOAL. To me, it is financial goal to be free ... in order for me to retire(rich enough, if possible) and do my own charity setup. Financial goal comes first ... then personal goal.
We need to increase our VALUE ... for the time we spent. I still like spending an hour or so ... writing in this blog. Yes ... it is creating awareness in myself too .. like a check-point on what i m doing right ... swayed or diverted ... and re-focus. That is my blog for ... for personal motivation too, besides inspiring some young readers.
Self-made millionaires identify which of their daily activities are most productive in terms of growing their wealth. They focus as much time as possible on those activities and they delegate the other activities (paperwork, administration, running errands, etc.) to other people. They abide by the Pareto Principle – also called the 80/20 Rule – which states that 80% of results come from 20% of activities. Self-made millionaires invest their time in the right activities.
TEH : Oh yes ... a strong believer in 80/20 ... so, I will like to write about that too. I have to invest my TIME ... and focus in things I do ... towards my financial goal.
At the moment ... my focus will be preparation for market-crash ... it will takes awhile for me to be equip with knowledge and experiences.... and I will use my TIME to move into that direction.
Have a nice weekend ... sharing my comments on my personal thoughts ... on the article I read. I do read many of these articles.
Do read.
TEH
