Decide to be Rich - Steps 1-10 by Robert T. Kiyosaki

Today, because of the multitude of choices we all have, it is easy to get distracted from where we want to go in life. So just because you decide to choose a path to riches one day, does not mean you will choose it again the next day. The following are some simple basic steps and thought processes I have repeatedly gone through in my life. I say that I have gone through them repeatedly because I have had to make and re-make these decisions over and over again. Everyday we are constantly presented with multiple choices, and I found that I needed to constantly remind myself of my choices, if I were to remain on the path I chose. I offer you a few suggestions on how to find your path and stay on your path to great wealth, if you should choose to do so. But please remember that we all have the ability to change our mind. So to stay on our chosen paths, we often need to chose and re-choose our chosen paths on a regular basis.

One night in 1975, I sat in my little apartment and began to choose the path I was now to take. That night I had to again decide which dad's path I would follow, my rich dad’s or my poor dad's. I had been off track for ten years, and it was now time to get back on track. These are some of the thoughts I went through that night, and some of the decisions I made and have continued to make over the years.

10 DECISIONS YOU NEED TO MAKE TO GET RICH

STEP ONE: DECIDE TO BE RICH

That night in 1975, I had to first stop feeling sorry for myself and decide again to be rich. That night I sat and began to go over some of the lessons my rich dad had given me over the years. Lessons that were more important than money, because they were the lessons that would ultimately create for me the financial empire I wanted. That night, I could hear my rich dad talking to me. I sat quietly and my lessons began all over again. They began with him saying, "The only difference between the rich, poor and the middle class was the kind of life style they wanted. He said, "You don't have to be a psychic to tell a person's future. If you will listen carefully to the words a person uses, they will tell you their future."

Over the years, I found rich dad's words of wisdom to be so true. Rich dad believed that words were a person's most important tool. He believed that rich people used rich words, and poor people used poor words. He constantly reminded me to watch the words I spoke simply because he believed that the words you spoke and the words you thought ultimately became the world you lived in. He often quoted from the Old Testament, "And the word became flesh." So that night, I remembered rich dad reminding me to listen to different people's words and then tell him what I noticed. Over the years, rich dad pointed out to me that poor people often said words such as these:

"I just want enough money to pay the rent."

"I need a few dollars to get me to the next pay day."

"After I pay my bills, I don't know how my family can afford to eat."

Rich dad pointed out that people who used words such as these are often focused only on financial survival. Rich dad often referred to people such as these as poor people. He called them poor, but not in the sense most people think of when they think of poor people. He called them "poor" because they were poor managers of money. So a person who used words such as these in speech or in thought, were constantly fighting a financial battle of survival, regardless of how much money they made.

The middle class used different words because they had different ideas about how to use their money. Rich dad pointed out that people who's future was in the middle class often said things such as:

"Our home is our most important asset and is our largest single investment."

"We're setting a few dollars aside every month, so we can afford the down payment on our dream home."

"We're saving money for our children's college education and our retirement."

Rich dad had me notice that the middle class focused on comfort. That is why so many of them say, "I don't want to be rich. I just want to be comfortable."

I sat there in the darkness that night, going over my rich dad's thoughts on what words the rich used. I began to recall the words my rich dad's rich friends used. They used words that were different. They often were heard to say:

"How did you finance your shopping center? Did you syndicate it with a joint venture partnership or did you go to a hard money lender for the interim money?"

"My underwriter has a new private placement, pre-IPO offering. Do you want a position in it?"

"I bought the shares through my corporation because the long term tax consequences are better."

Rich dad pointed out that the rich used the vocabulary found in the asset column. He said, "The reason the rich are rich is because they are not focused on day-to-day short term survival, or the expense column as the poor are. Nor are the rich focused on comfort and the acquisition of liabilities using credit, as is the middle class. The rich are rich because they focus on the long term acquisition of assets...assets such as stocks, bonds, businesses, and income producing real estate. Many times the rich will forsake meals, a steady paycheck, a vacation, or the comfort of a nice home, in order to build or acquire real assets."

So Step One is decide to be rich, even if you are broke and penniless today. In Rich Dad Poor Dad , I wrote of the difference between being poor and being broke. I wrote that poor was a state of mind. It is a state of mind where thoughts such as "I can't afford it." or "Live below your means." come from. I wrote that being poor was eternal and being broke was temporary. The opening chapter of CASHFLOW Quadrant is entitled, "Why Don't You Get a Job?" The chapter begins with my wife Kim and me being homeless for approximately 3 weeks. The point here is that even though we were homeless and virtually out of money, we continued to strive to become rich. We continued to strive to build a business and invest through that business. Today, even though we now have plenty of money, and several businesses, nothing much has changed. We continue to build businesses, or reinvest in our businesses, and invest through those businesses.

In CASHFLOW Quadrant, I wrote about Be-Do-Have. I wrote that the "Be" was the most important part of the three word formula. I wrote that most people want to "Have" what the rich have, the problem is they often are not willing to do what the rich "Do" to have what the rich "Have." Again, the three different classes of people behave differently. So regardless if you have money or not, it is important to "Be" rich if you decide to do so, which means being willing to make being rich more important than being comfortable or merely surviving financially.

STEP TWO: DECIDE WHAT KIND OF MONEY PROBLEMS YOU WANT.

There are only two kinds of money problems. One problem is not enough money and the other is too much money. Unfortunately, the only kind of money problem most people know is the problem of not enough money.

Rich dad stressed that his son and I know not only how to make money but to know what to do with the money we made. Rich dad often said, "Most people know how to work for money, but they do not know how to have people and money work for them." That is why he taught us how to plan on having too much money. He went on to say, "If you want to be rich, you must know what to do with your excess money and make sure your excess money creates more excess money. If you want to be rich, you must know what to do with your excess money before it gets to you. The problem with most people is that when they receive any excess money, they do not know what to do with it...so they spend it foolishly or just park it in the bank."

So decide what kind of money problems you want.

STEP THREE: WRITE YOUR PLAN AND THEN FOLLOW YOUR PLAN

After choosing between being rich, poor, or middle class, and then choosing to have a problem of too much money or too little money, it is now time to write your plan.

If you have chosen to be rich, even though broke today, and have decided that you would rather have the problem of too much money rather than the problem of too little money, then read on. If you do not plan to be rich or have too much money, then you need not read any further. There are many other books written for people who simply want to get out of financial survival and get into being comfortable with their money. In fact, most money books are really written for people who want to hang on to their money and be comfortable, rather than become rich.

Rich Dad’s plan started with a few basic goals:

1. Change the characteristic of your income. Start a part-time business.

2. Change the characteristic of your expenses. Convert personal expenses into business expenses.

3. Place your business inside a legal entity.

4. Have your business buy your assets.

5. Harness the power of re-investing.

If you're willing to be a little uncomfortable, become very rich, and retire early, develop your plan. Maybe rich dad's plan can apply to you, even though you may be broke, but not poor, today. And if you are already rich, then rich dad's plan may help you become richer and happier...even beyond your wildest dreams.

STEP FOUR: DECIDE ON WHERE YOU WANT TO DO YOUR BANKING

Rich dad often said that you could tell the difference between the rich, poor, and middle class simply by where they went to get their money or where they did their banking.

WHERE THE POOR DO THEIR BANKING

Rich dad said, the poor use pawn shops as their bank. He often said, "A pawn shop is a poor man's bank." A pawn shop will lend money on "assets" that a banker would not loan money on. That is why, when a poor person is short of cash, they will often go to the pawn shop and put their chain saw, microwave oven, jewelry, TV sets, tools, watches, up as collateral or security. The pawn shop owner then gives them pennies on the dollar, which a pawn shop owner should do, since what the poor spend their money on is not worth anything after they buy it anyway. The way the pawn shop owner makes their money is by charging legal usurious interest rates.

WHERE THE MIDDLE CLASS DO THEIR BANKING

The middle class on the other hand, has the creditworthiness to use banks, savings and loans, or credit unions for their lines of credit. A popular form of credit for this group is the credit card, which is easy to obtain. The interest rates on credit cards range from 9% to 36%, depending upon the state you borrow from. That is because, it is up to each state to determine it's own interest rates on credit. An interesting note, the state with the lowest interest rate is Arkansas, at 9%...and because the rate is so slow, they also have the toughest qualification standards, and they also have the lowest charge-offs from non-payment. The lesson being, the higher the interest rate, the easier it is to borrow money.

WHERE THE RICH DO THIER BANKING

The rich also use banks. But they often use different banks. They often use the services of investment bankers, or find private capital from wealthy individuals, or money from institutions such as pension funds, insurance companies, or the stock market. The rich, if successful as business people, have fewer problems raising large sums of money and at better interest rates.

So look at your various choices and decide where you will do your banking.

STEP FIVE: CHOOSE YOUR FRIENDS AND PARTNERS WISELY

One of the reasons the rich get richer is because they spend time with other rich people. Most of my best investments come from my rich friends, not from my stock brokers or real estate brokers. So that is why step 5 is to choose your friends wisely. It is important to know if a person's aspirations are to be rich, comfortable, or simply survive. People and friends who merely want to be comfortable or survive will not understand why you want to be rich, and may unconsciously pull you down, rather than push you up. And besides, the investment tips I get from people who only want to be comfortable are often tips on investments that no one else wants.

How do you find people who are rich or want to be rich? Rich dad had a simple answer to this question. He often said, "It's what you know that determines who you know. If you want to change who you know, simply change what you know." That is why the most important investment you can make is the investment in your financial education and financial experience. Invest in that first and the people you spend time with will change.

STEP SIX: GIVE YOURSELF TIME

It takes time to build a business as well as an investment portfolio. Building a business is not the same as getting a job. With a job, you expect to be paid soon after starting to work. With a business, you may not be paid for years, if you are paid at all. That is why I recommend keeping your daytime job and starting a part-time business.

It is said that 90% of all businesses fail in the first 5 years. In my opinion, there are two main reasons for this sad statistic. One reason is lack of education and experience. Business is not something you can learn in school. Business is a combination of formal education, experience, and guts.

The second reason is the lack of money. We have heard the old cliche "Killing the goose that lays the golden egg." Well, when starting a business, many people kill the baby-goose before it's old enough to lay the golden egg. In other words, most small businesses are under-capitalized, which means the new business owner tries to support his or her self and often his or her family on a business that is not yet up and running. So the business is drained of cash when it needs it most to grow in order to keep the owner and the family alive.

STEP SEVEN: START SMALL...DREAM BIG

In 1975, I realized that my $700 in savings was not much when compared to Mike's hundreds of millions of dollars, which was rapidly growing into a billion dollars. Initially, I felt like giving up, saying to myself, "What's the use. I'll never have more than Mike."

But then I also realized that if I continued with that thought process, not only would I never have more than Mike, I would never have much of anything. I then realized that I was comparing myself with Mike and trying to compete with him, rather than use him as inspiration and as a mentor. So that night I decided to start small and dream big.

Many people start small and stay small, simply because they have small dreams. It is my opinion that big dreams are important, because dreams possess ingredients vital for success. And some of those ingredients are hope, desire, passion, energy, vitality, faith, drive, inspiration, and creativity. These are the ingredients that make life worth living.

So dare to dream big. Dream of all the wonderful things this world and life has to offer and write your plan on how you can have all your dreams come true. Write that plan and look at it everyday. Talk to people about your dreams, even those who criticize you and your dreams. Then take their criticism and use it to make your desire to achieve your dreams even stronger.

STEP EIGHT: BEFORE YOU EXPAND YOU MUST CONTRACT

In 1975, I knew that if I was to achieve great wealth quickly, I first needed to tighten up before I could expand. As I silently sat in the darkness, I knew that if I wanted to expand financially, I first needed to tighten up. It occurred to me that the reason I was hurting financially was because I had been sloppy with my money during the past ten years. While in college, I spent a lot of money just having fun. While in Vietnam, I had developed the attitude of live life to the fullest because tomorrow I could be dead. So my motto truly was "Eat, drink, and be merry, because tomorrow somebody was really going to try and kill me." If I was going to get ahead, I first needed to pull back a little. Instead of playing golf, rugby, and tennis, I focused only on rugby. Instead of spending every night of the week in the clubs or watching television, I needed to get back to studying again. In other words, instead of trying to be everywhere and do everything, I decided to begin to focus more. I began doing more--of fewer things.

So step 8 is, regardless of what you did yesterday, if you want to do better financially tomorrow, you may need to forgive your past, tighten up and clean up your activities today, so you can have a bright and prosperous tomorrow. Always remember that to expand, you must first contract.

STEP NINE: GET BIGGER FASTER

The problem with a small business or small investments such as one single family rental, is that if they are small then you have to do all the work. You do all the work because there is not enough money to support paid management. So you own it and manage it. Very often, a person begins to buy real estate and soon quits because the work is hard and the pay is low. They quit because they started with a small plan and stayed small. For business or investing to work for you, in most cases, you must get big. Instead of buying only two rental properties, it is best to plan on acquiring at least 20 properties, and get them as soon as possible. (But make sure you know what you're doing before you acquire them.) With twenty properties you can afford professional management, if the cash flow is strong, or you can trade the twenty units into one larger apartment house or office building. The same goes with businesses, especially businesses such as franchises. If you have only one franchise, you are the chief cook, bottle washer, owner, and manager. If you have twenty of them, you have a chance of finding freedom faster.

The people who work the hardest and are paid the least are people who dream small, think small, and work small. So that night, I vowed that I would focus, study hard to acquire education, gain experience, start small, and get big as quickly as possible. I always remind myself of my rich dad's words, "The bigger the asset you build, the less you work and the more money you make."

STEP 10: THE MORE I SHARE THE RICHER I BECOME

That night in 1975, I knew that if I wanted to acquire great wealth quickly, I had to be a person who shared. I had to be a person who was generous. I knew that if I was greedy, stingy, or tight, it would take me longer to attain great wealth.

That is why in 1975, I decided to operate out of the B (Business Owner) quadrant, rather than follow my poor dad's ideas on labor unions and protectionism. I decided that if I was to get rich quickly, I needed to focus on doing more for less money, for more people. I needed to focus on sharing as much of my wealth with as many people as possible. That is the fastest way to get rich quickly. You get rich by sharing rather than by being greedy.

So step 10 is to decide to be generous and share with as many people as possible. If you do that, you will become far richer than those who work only for themselves.

From award winning writer Robert Kiyosaki, author of Rich Dad, Poor Dad and The Cashflow Quadrant. For more information about Robert Kiyosaki, visit www.cashflowtech.com.

Labels: Motivation

posted by Yanto Sanusi @ 10:52 AM 0 comments

Description of the Forex

The Forex market, established in 1971, was created when floating exchange rates began to materialize. The Forex market is not centralized, like in currency futures or stock markets. Trading occurs over computers and telephones at thousands of locations worldwide.
The Foreign Exchange market, commonly referred as FOREX, is where banks, investors and speculators exchange one currency to another. The largest foreign exchange activity retains the spot exchange (i.e.., immediate) between five major currencies: US Dollar, British Pound, Japanese Yen, Eurodollar and the Swiss Franc. It is also the largest financial market in the world. In comparison, the US stock market may trade $10 billion in one day, whereas the Forex market will trade up to $2 trillion in one single day. The Forex market is an opened 24 hours a day market where the primary market for currencies is the 24-hour Interbank market. This market follows the sun around the world, moving from the major banking centres of the United States to Australia and New Zealand to the Far East, to Europe and finally back to the Unites States.
Until now, professional traders from major international commercial and investment banks have dominated the FX market. Other market participants range from large multinational corporations, global money managers, registered dealers, international money brokers, and futures and options traders, to private speculators.
There are three main reasons to participate in the FX market. One is to facilitate an actual transaction, whereby international corporations convert profits made in foreign currencies into their domestic currency. Corporate treasurers and money managers also enter the FX market in order to hedge against unwanted exposure to future price movements in the currency market. The third and more popular reason is speculation for profit. In fact, today it is estimated that less than 5% of all trading on the FX market is actually facilitating a true commercial transaction.
The FX market is considered an Over The Counter (OTC) or ‘Interbank’ market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as with the stock and futures markets. A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

History of the Forex
Money, in one form or another, has been used by man for centuries. At first it was mainly Gold or Silver coins. Goods were traded against other goods or against gold. So, the price of gold became a reference point. But as the trading of goods grew between nations, moving quantities of gold around places to settle payments of trade became cumbersome, risky and time consuming. Therefore, a system was sought by which the payment of trades could be settled in the seller’s local currency. But how much of buyer’s local currency should be equal to the seller’s local currency?

The answer was simple. The strength of a country’s currency depended on the amount of gold reserves the country maintained. So, if country A’s gold reserves are double the gold reserves of country B, country A’s currency will be twice in value when exchanged with the currency of country B. This became to be known as The Gold Standard. Around 1880, The Gold Standard was accepted and used worldwide.
During the first WORLD WAR, in order to fulfill the enormous financing needs, paper money was created in quantities that far exceeded the gold reserves. The currencies lost their standard parities and caused a gross distortion in the country’s standing in terms of its foreign liabilities and assets.
After the end of the second WORLD WAR the western allied powers attempted to solve the problem at the Bretton Woods Conference in New Hampshire in 1944. In the first three weeks of July 1944, delegates from 45 nations gathered at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. The delegates met to discuss the postwar recovery of Europe as well as a number of monetary issues, such as unstable exchange rates and protectionist trade policies.
During the 1930s, many of the world’s major economies had unstable currency exchange rates. As well, many nations used restrictive trade policies. In the early 1940s, the United States and Great Britain developed proposals for the creation of new international financial institutions that would stabilize exchange rates and boost international trade. There was also a recognized need to organize a recovery of Europe in the hopes of avoiding the problems that arose after the First World War.
The delegates at Bretton Woods reached an agreement known as the Bretton Woods Agreement to establish a postwar international monetary system of convertible currencies, fixed exchange rates and free trade. To facilitate these objectives, the agreement created two international institutions: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (the World Bank). The intention was to provide economic aid for reconstruction of postwar Europe. An initial loan of $250 million to France in 1947 was the World Bank’s first act.
Under the Bretton Woods Exchange System, the currencies of participating nations could be converted into the US dollar at a fixed rate, and foreign central banks could convert the US dollar into gold at a fixed rate. In other words, the US dollar replaced the then dominant British Pound and the parities of the world’s leading currencies were pegged against the US Dollar.
The Bretton Woods Agreement was also aimed at preventing currency competition and promoting monetary co-operation among nations. Under the Bretton Woods system, the IMF member countries agreed to a system of exchange rates that could be adjusted within defined parities with the US dollar or, with the agreement of the IMF, changed to correct a fundamental disequilibrium in the balance of payments. The per value system remained in use from 1946 until the early 1970s.
The United States, under President Nixon, retaliated in 1971 by devaluing the dollar and forcing realignment of currencies with the dollar. The leading European economies tried to counter the US move by aligning their currencies in narrow band and then float collectively against the US dollar.
Fortunately, this currency war did not last long and by the first half of the 1970’s leading world economies gave up the fixed exchange rate system for good and floated their currencies in the open market. The idea was to let the market decide the value of a given currency based on the demand and supply of the currency and the economic health of the currency’s nation. This market is popularly known as the International Monetary Market or IMM. This IMM is not a single entity. It is the collection of all financial institutions that have any interest in foreign currencies, all over the world. Banks, Brokerages, Fund Managers, Government Central Banks and sometimes individuals, are just a few examples.
This is very much the present system of exchange of foreign currencies. Although the currency’s value is dependent on the market forces, the central banks still try to keep their currency in a predefined (and highly confidential) fluctuation band. They accomplish this by taking one or more of various steps.

The International Trade Organization that had been planned in the Bretton Woods Agreement could not be realized in the form initially envisaged - the US Congress would not endorse it. Instead, it was created later, in 1947, in the form of the General Agreement on Tariffs and Trade, which was signed by the US and 23 other countries including Canada. The GATT would later become known as the World Trade Organization. In recent years, the two international institutions created at Bretton Woods the World Bank and the IMF have faced a major challenge in helping debtor nations to get back on stable financial footing.

The Euromarket
A major catalyst to the acceleration of Forex trading was the rapid development of the Eurodollar market; where US dollars are deposited in banks outside the US. Similarly, Euromarkets are those where assets are deposited outside the currency of origin. The Eurodollar market first came into being in the 1950s when Russia’s oil revenue - all in dollars - was deposited outside the US in fear of being frozen by US regulators. That gave rise to a vast offshore pool of dollars outside the control of US authorities. The US government imposed laws to restrict dollar lending to foreigners. Euromarkets were particularly attractive because they had far less regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euromarkets a beneficial center for holding excess liquidity, providing short-term loans and financing imports and exports.
London was, and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London’s convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euromarket.

Important dates in the Forex History
Early 20th Century
Only in the 20th century paper money start regular circulation. This happened by force of legislation, the efforts of central banks to manage money supplies, and government control of gold supplies.
Within a country, this fiat money is as good as any other form. Internationally, it is not. International trade has always demanded a money standard accepted everywhere.
Gold and silver provided such a standard for centuries. An official Gold Standard regulated the value of money for about a century, prior to the start of World War I in 1914.
1929
The dollar has been perceived as more of a has-been, due to the Stock Market Crash and the subsequent Great Depression.
1930
The Bank for International Settlements (BIS) was established in Basel, Switzerland. Its goals were to oversee the financial efforts of the newly independent countries, along with providing monetary relief to countries with temporary balance of payments difficulties.
1931
The Great Depression, combined with the suspension of Gold Standard, created a serious diminution in foreign exchange dealings.
World War II
Before World War II, currencies around the world were quoted against the British Pound. World War II crashed the Pound. The only country unscarred by the war was the US. The US dollar became the prominent currency of the entire world.
1944
The United National Monetary and Financial Conference at Bretton Woods, New Hampshire discussed the financial future of the post-war world. The major Western Industrialized nations agreed to a «pegging» of the US Dollar, which in turn was pegged at $35.00 to the troy ounce of gold. The future was designed to be stable, in part due to the tight governmental controls on currency values. The US dollar became the world’s reserve currency.
1957
The European Economic Community was established.
1967
At the IMF meeting in Rio de Janeiro, the Special Drawing Rights (SDRs) were created. SDRs are international reserve assets created and allocated by the IMF to supplement the existing reserve assets.
1971
The Smithsonian Agreement, reached in Washington, D.C., had a transitional role to the free floating markets. The ranges of currencies fluctuations relative to the US dollar were increased from 1 percent to 4.5 percent band. The range of currencies fluctuating against each other was increased up to 9 percent. As a parallel, the European Economic Community tried to move away from the US dollar block toward the Deutsche Mark block, by designing its own European Monetary System.
In the summer of 1971, President Nixon took the United States off the gold standard, and floating exchange rates began to materialize.
1972
West Germany, France, Italy, the Netherlands, Belgium and Luxembourg developed the European Joint Float. Member currencies were allowed to fluctuate within 2.25 percent band (the snake), against each other and 4.5 percent band (the tunnel) against the USD.
1973
The Smithsonian Institution Agreement and the European Joint Float systems collapsed under heavy market pressures. Following the second major devaluation in the US dollar, the fixed-rate mechanism was totally discarded by the US Government and replaced by The Floating Rate.
1978
The International Monetary Fund officially mandated free currency floating.
1979
The European Monetary System was established.
1999
January 1st, 1999, the Euro makes its official appearance within the countries members of the European Union.
2002
January 1st, 2002, the Euro becomes the only currency and replaces all other twelve national currencies within the European Union and Monetary Market: Belgium, Germany, GGreece, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Austria, Portugal and Finland.

TODAY
Today, supply and demand for a particular currency, or its relative value, is the driving factors in determining exchange rates.
Decreasing obstacles and increasing opportunities, such as the fall of communism and the dramatic growth of the Asian and Latin American economies, have created new opportunities for investors.
Increasingly vast amounts of foreign currencies began flowing into other countries banks.

posted by Yanto Sanusi @ 10:19 AM 0 comments

Unlimited Power by Anthony Robbins

CHAPTER 1:- Success
􀂾 To laugh often and much;
􀂾 to win the respect of people and the affection of children;
􀂾 to earn appreciation of honest critics;
􀂾 to endure the betrayal of false friends;
􀂾 to appreciate beauty; to find the best in others;
􀂾 to leave the world a bit better, whether by a healthy child, a garden patch, or a redeemed
social condition;
􀂾 to know even one life breathed easier because you have lived.
- Ralph Waldo Emerson
􀂾 Who you know, where you go and what you own are not the true measure of personal
success.
􀂾 Ongoing process of striving to become more.
􀂾 It is the opportunity to continue to grow emotionally, socially, spiritually, physiologically,
intellectually and financially, while contributing in some positive way to others.
􀂾 The road to success is always under construction…it is a progressive course, not an end
to be reached.
Common thread of successful people.. power. Ultimate power is the ability to produce results
you desire most, and create value for others in the process.
Eg Bill Gates, Bill Clinton, Kerry Packer, Rupert Murdoch.
Power in the ages used to be a physical thing…kings, armies, strength etc. Nowadays largest
sources of power is based on specialised knowledge. We are no longer in an industrial
revolution – which was fuelled by money, but in a communication revolution – which is fuelled
by knowledge. (John Kenneth Galbraith). With communication as it is today, and advanced
weapons boundaries and land of a country becomes irrelevent. The power is based on how a
country has developed their communication and knowledge infrastructure.
For example…
Russia – a country which is rich in resources, agricultural land, people – now economically
collapsed. Needs to import food, minerals and technology. Why? – people have no common
goal, common bond, moving in different direction…no specific goals and targets.
Israel – a country mainly desert, minimal resources, limited people - economocally strong, a
net exporter etc etc. Why? – people have a common goal, targeted, and although politically
diverse and split, have a common goal. Also focus attention to knowledge and communication
and technology.
(Speech by Shimon Peres in IUA in Sydney)
Knowledge is only part of the equation…a major part is ACTION. ACTION produces results.
In fact POWER is defined as “The ability to Act”.

Communication

Every communication we make is an action, so communication is power. Those who know
how to affect the thoughts feelings and actions of the majority of us are those who know how
to use this tool of power. JFK, Thomas Jefferson, Jesus Christ, Gandhi, Winston Churchill etc.
Your level of communication mastery will determine your level of success with others,
personally, emotionally , socially and financially.
The level of success you experience internally, is based on how you communicate with
yourself. How you feel is not the result of what is happening in your life, but what you perceive
is happening in your life. How you interpret the results of what is happening. One can interpret
any result in a positive way or a negative way.
I have a friend, a great sportsman who had an accident and lost a leg… he could have given up on life, but ended up becoming a successful surgeon. He interpreted the accident as “the best thing that happened to him”. Took a result and made it into a +ve.
Another friend, inherited millions, gifted sportsman, committed suicide as he believed he had nothing to live for.
The quality of our lives is determined by not what happens to us, but rather by what we do
about what happens. How one reacts to events that one comes across is a measure of ones success.
One can control ones state of mind by adopting a point of view that creates that emotion. You alone controls the point of view that you take. It is your power and your prerogative. If we change our mental and physical actions, we can immediately change our emotions and behaviours.
You shape your perceptions or someone shapes them for you.
It is how we perceive events and what we do about these events that make a difference.

ULTIMATE SUCCESS FORMULA
􀂾 TARGET - Know your outcome.
􀂾 ACTION - Take action that you believe will produce the results you desire – else your
desire will always only be your dreams
􀂾 DETERMINE RESPONSE - Develop sensory acuity to recognise the responses and
results you are getting to determine whether they are moving towards the outcome.
􀂾 ADAPT AND CHANGE UNTIL DESIRED RESULT IS ACHIEVED - Develop the flexibility
to change your action until you get the result you want to achieve your outcome.
Eg. 1. Clnl Sanders KFC – recipe…wanted to sell to restaurants for royalty… looked for
someone to back him - got kbd 1000 times, and then someone backed him. Whenever
someone said no – changed results until a yes. One needs to be able to cope with no and try
again.
Take actions to achieve your dreams. Success is not a random roll of the dice. There are
consistent, logical patterns of action, specific pathways to excellence that are within the reach
of us all.

7 fundamental character traits to succeed

1 Passion
Consuming obsessive purpose to do what they do, to grow and to be more. Gives them the
fuel that powers their success train and causes them to tap their true potential. Causes
people to stay late and leave early; passion what people ant in relationships; passion gives
life power, juice andd meaning; passion to be the best.
2 Belief
Huge power and effect of faith and belief on mankind. Our belief in what we are and what we
can be will determine what we will be.If we believe in magic, we will live a magical life. If we
believe our life is defined by limits, they will be defined by limits. What we believe is true and
possible will become what is true and possible.
People who succeed know what they want and believe that they can get it.
Passion and belief provides the fuel and propulsion towards excellence!!
3. Strategy
Way of organising resources to achieve goal. What one needs and what one needs to do to
achieve the goal. One needs the resources and use it in an effective way. The best talents
and ambitions need to find the right avenue.
4 Clarity of Values
Fundamental, ethical and moral judgements we make about what’s important. A belief
system. Judgements on what makes life worth living. 1, 2 and 4 are interactive. If 1 and 2 do
not conform with your values, the goal will not be fulfilled.
5 Energy
Physical vitality to take action. Physical, intellectual and spiritual energy to take action to
make the most of what we have. Need to maximise physical vibrancy.
6 Bonding power
Ability to create and develop a rapport with different backgrounds and beliefs. Great
successes are not on the world stage but in the recesses of your heart.
Need to form lasting, lovong relationships with others.
7 Mastery of Communication
The way we communicate with others and ourselves will determine the quality of our lives. (eg
doing the washing – incidental activity as opposed to a bind).
People who shape our lives have an ability to communicate a vision, quest, joy or mission in a
way that creates a passion in you to share that vision. It is what makes a great parent, artist,
politician or teacher.

CHAPTER 2:- MODELING

One can achieve the above by “modeling” it has been done before!!
Outstanding people leave clues to how they achieve results. Duplicate actions of others. If
succesful marriage for 30 years…what actions – duplicate . Adopt actions and beliefs that
produce similar results.
Find models of personal excellence. If overweight, study fit people, emulate thir actions, and
you will become fit.
NLP – Neuro Linguistical Programming
Programming the language of your brain. Outstanding results can be achieved by producing
specific communication to and through the nervous system. How to produce optimum results.
How to duplicate human excellence in a short period of time.
Modeling is the pathway to excellence. If I identify the traits and habits, and pay the price of
time and effort of a successful athlete, friend, parent or businessman, I will become a
succesful athlete, friend, parent or businessman.
Many succesful businesses make money by determining what is succesful in one city and
duplicating it in another. “LAG”. Take a proven system and duplicate it, and maybe improve
upon it. People who do this are virtually guarunteed success.
The difference between those who succeed and those who fail isn’t ehat they have – it is what
they choose to see and do with their resources and experience of life.
Modelling performance patterns called Optimum Performance Technologies.
NLP is a tool to develop your own insights and strategies.

FIND MODELS OF EXCELLENCE

You can teach a dog patterns that will improve his behavior. You can do the same with
people. Seize excellence, and make it your own. Building from the successes of others is one
of the fundamental aspects of most learning.
Technology – every advance in technology is based on the foundation of earlier discoveries
and breakthroughs.

3 fundamental ingredients that must be duplicated to form any form of human excellence:-
1. Belief System
2. Mental Syntax – organise thoughts, and understand how other people organise their
thoughts. “Unlock the code”
3. Physiology – the way you breathe, hold your body, posture, your movements, determines
what state you are in.

CHAPTER 3 THE POWER OF STATE

If you feel you are on a roll, you will be on a role. If you feel that you cannot win, you will not
win.
Often there are times that you can do nothing wrong. Other times you can do nothing right.
Train yourself to continue to be on a role!!
Neurophysiological state
Enabling States
Confidence, love, inner strength, ecstacy, belief – tap great wllsprings of personal power
Paralysing States
Confusion, depression, fear, sadnessangst and frustration – leaves us powerless
If you can change a state, you can change a behaviour!!
We need to learn how to put us into an empowering state or behavior.
Peoples needs and goals, are almost always to achieve the state that they would ideally be in. Money will assist in achieveing a feeling of freedom, success and respect. This is a state and a feeling.
The key to love, power, joy is the ability to control, direct and manage your states.
Learn to effectively run your brain. Man has been fascinated for centuries how to alter his states:- drugs, music, sex, religion, liquor, chanting. These all have there uses and limitations.
There is an easier way that is easier, quicker and more precise.
What creates the state that we are in?

2 components:-

1 Internal representations (mind)
Eg spouse comes home late:-
If worried about accident,,,unconditional love, and TG he’s home. State of concern
If concerned about gambling/affair…different set of behaviours. State of angry and used
Our beliefs, attitudes, values and past experiences with the person all affect the type of
representations we will make about the behaviours.
2 Physiology (Body)
Muscle tension, how we breathe, what we eat, posture, overall level of biochemical
functioning have a huge impact on our state.
IR and P will work together in a cybernetic loop. What will effect one will effect the other. If
youre feeling ill and tired, IR will be –ve. If you feel vibrant and on a roll, IR will be +ve.
Learn how to change 1 & 2 to achieve results.
1 and 2 determine our behaviour…Verbal and Physical – what we do and say.
Since we don’t know how things really are , but only how we represent them to ourselves,
represent them in a way that empowers us and others. Focus on the positive.
If we represent to ourselves that something is not going to work it will not work.
If we form a representationt that it will work, we create the IR’s to produce the state that will
support us in producing positive results.
Life is like a river, its moving. You can be at the mercy of the river, or you can steer it in a
predetermined course. At the end of the day, all of us will reach the same destination…what
will differ is the knowledge, satisfaction, enjoyment and added value created along the way.
Always move with the tide…if you move against it, it is like pushing shit uphill. The tide is
determined by the set of values and beliefs that you hold.
Your behaviour and actions are a result of your state. If your IR tells you you are going to
have an accident…you will have an accident. If your IR tells you that you will be successful,
you will be successful.
The ancestor of every action is a thought.
If one changes ones beliefs and IR’s to +ve, one can achieve huge results.
There is no power like the power of a resourceful state.
The kind of behaviour people produce is the result of the state they are in. How they
respond to the state they are in is based on their models of the world.
Most people take little conscious effort to direct their states. State change is what most people
are after. They want to be in a +ve state.
Successful people know how to tap into their resourceful states. You can control the state you
are in. You do not have to be at the mercy of whatever comes your way.
“If you refuse to get the best in life, you will always get it”
“Control your thoughts they become your dreams
Control your dreams they become your actions
Control your actions they become your habits
Control your habits they become your destiny”
CHAPTER 4 BELIEF
Belief is any guiding principle, dictum, faith or passion that can provide meaning and direction
in life. Beliefs are prearranged filters to our perceptions of the world.
One person with a belief is equal to a force of 99 who have only an interest.Beliefs are the
compass and maps that guide us to our goals, and give us surety that we know that we will
get there.
To change our behaviour, we need to start with our own beliefs. Belief becomes reality
(placebo experiments)
Drugs are not always necessary, belief in recovery always is.
Belief is nothing but a state, an IR that governs behaviour.Change your belief, and change
your IR, which will change your behaviour. Belief is a choice.

Sources of Belief

1. Environment – Success breeds success, failure breeds failure. Generally nb part of belief
values.
2. Events, small or large can help foster beliefs.
3. Foster belief through knowledge
4. Belief based on our past results. If someone succeeds once or twice, they will succeed in
the future.
5. Cretaing in your mind the experience you desire in the future as if it were now. (Goal
setting)
You can control your beliefs, you can control the way you model others.You can concsiously
direct your life, you can change.
Beliefs that have limited you
Beliefs that can servr to help you achieve your highest goals
If you do not like your beliefs, you can change them. Key is to take your beliefs, and ensure
that they are working for you in a way to achieve your goals and objectives.ie that they are
effective and empowering.
If you believe, you will keep coming back until you succeed.

CHAPTER 5: 7 beliefs that foster excellence

1. Everything happens for a reason and a purpose and it serves us.
2. There is no such thing as failure, there are only results.
Once something doesn’t work, change it until it works.
3. Whatever happens, take responsibility. If you take responsibility, you can control the
agenda. We generate our own experiences of life, and we learn from all of them. You
need to feel that you create your world, else you are at the mercy of others.
4. You do not have to understand everything to use everything. Don’t get bogged down
in the details. Understand the outcome, and what you need to get to the outcome, and
have good people around you who are competent at each particular post. Exact the
essence from the situation. You don’t need to know how a motor works to drive.
5. People are your greatest resource. Sense of team, purpose and unity.
Continually remain alert, adjust behaviours, and recalibrate actions to determine where
we want to go.
6. Work is play. If you are going to succeed you need to enjoy what you are doing. Make
your vocation your vacation.
7. There’s no abiding success without commitment.

CHAPTER 6: HOW TO RUN YOUR BRAIN

Reprogram your jukebox. How you produce a state of depression and ecstacy is how one
structures your internal representations. Done through 5 senses. To get a result, you need an
ingredient. Remember a pleasant experience, step into that experience, see what you saw
through your eyes, events images colour brightness etc, hear what you heard, feel what you
felt. Imagine the experience as if in a movie, which experience feels greater? Difference
between an associated and a disassociated experience. You can change an effect of any
experience by changing an associated experience to a disassociated experience.
SUBMODALITIES
You can implant in your brain the cues you want. A king can direct his kingdom. Your
kingdom is your brain.You can direct your brain. Various methods you can use.

CHAPTER 7: THE SYNTAX OF SUCCESS

Syntax – the way we order actions. Same words different meanings. The dog bit Joe; Joe bit
the dog. The order that we say and do things causes them to register in the brain in a specific
way. STRATEGY
A recipe is nothing but a strategy. How we use resources that we have will determine the
outcome. If you follow the recipe to the letter...model the recipe, you will achieve the same
result.
Find people who have financial success and fulfilling relationships, discover their strategy and
apply it to achieve similar results, and save tremendous time and effort. (THE POWER OF
MODELLING).In the baking of human experience, our ingredients are the 5 senses. We also
need how much of the ingredients are needed. How much visual input, audio, kinesthenetic
etc..Same amts, same sequence, same ingredients, you will achieve similar results.
Strategies are like the combination to a vault. Ingredients – the numbers…Quantity –
how many of the same numbers…Strategy – the order that the numbers are used. This
will find the combination.
Visual (V) Audio (A) Kinesthetic(K) i (internal) e (external) d (digital) t (tonal)
See Hear Feel
Recognise what your strategies are, as well as other peoples, so you can determine what
they react to.
Presenting information in another persons syntax is a powerful form of rapport. Your
communication becomes irresistable, as it automatically triggers certain responses.
Ther are strategies for Selling, Motivation, Seduction, Learning, Athletics, Depression or
Ecstacy.There are strategies for efficient management. You need to determine what your
strategy is to access your state on cue.
To achieve a certain state/result, find the specific sequence and the specific syntax,
take action, and you will create the world as you desire it. Other than the physical
necessaties of life, like food and water, almost everything else you might want is a
state. All you have to know is the right syntax and strategy to enable you to get there.
Teach an army to shoot a new rifle:- Find the point of difference of a star, and show others
how to model that star. What are their beliefs, their common mental syntax and their
strategies. Model their IRs and their Physiology. Once this was done, designed a 1.5 day
course. Amazing results.
If you have an excellent model, discover what he does, duplicate it, and produce similar
results in a shorter period of time.
Methodology pg 119.
Biggest problem with teachers is that they don’t know the strategies of the students. What
buttons to push to assist them to learn. Wrong tool in wrong sequence, you will get the wrong
result. If you are a salesman, find out what your customers buying strategy. Is he strongly
Kinesthetic, hit him with a feeling. If he was visual, show him the colours.

CHAPTER 8: How to Elicit Someone’s Strategy

There are methods to elicit anyone’s strategy in any situation. Like a locksmith. Become a
master communicator. Look for things you were not seeing, hear things you aren’t hearing,
feel things you werent feeling, and asking questions you were not hearing before. Do this
elegantly and attentively.
People will tell you about their strategies in what they say, how they look, how they move.
Learn to read a person like a map or a book.You can tell what representational system he is
using by watching a person’s eyes.

posted by Yanto Sanusi @ 10:06 AM 0 comments