The Secret Mindset Of Money

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The Secret can bringing the money, but not only about the money. The Law of Attraction is not for people who have the mindset of materialistic, greedy, and arrogant.

Law of Attraction is about your goals, you express in your dreams. Dreams that come from the heart is your goal in this world. Your goal is probably not to have a brilliant career, but being a good parent. You may also want to be a good friend, or sympathize thousands of orphans.

But all that could happen without any money.

Money was the one who can build the company. Money to build bridges and roads. Money can support parents to be good parents to their children. Money can make us spend zakat or donations.

If you fall into the trap that the money was bad, only bad people who have money. Do we really want to believe that drug traffickers and criminals who can enjoy the abundance, while good people suffer? Of course not! This is ridiculous.

But, if money is the only thing you care about, then the money it will avoid you. We tend to have mental garbage about money. We tend to have fear when it comes to matters relating to money. In fact, the fear tends to be counter productive.

Dispose of all things dealing with money. Money is not important here. Money is necessary, but not the only thing that matters to you.

Joseph Campbell once said, "Follow your bliss, the money will follow you."

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Plug in your mind that you need money to realize your dream, and this is not a thing wrong. Then, ignore or do not be too bound by these thoughts. Focus your attention on what you love.

That's secret of The Secret when you can actually apply. That's when the emotions you will encourage your mind to change the things you want to change.

Financial Lesson : Focus On Asset, Not Income

Focus on asset -- In early 2009, Robert Kiyosaki is renowned for his book Rich Dad Poor Dad re-create a buzz again by writing another book titled Financial Conspiracy of The Rich. The book is somewhat like no other, because Robert wrote chapter by chapter and then uploaded to the Internet, to be the subject of discussion. Thus, this book is an interactive book.
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In the book Conspiracy of The Rich, I found a lot of valuable lessons about the finances of Robert Kiyosaki. In it there are so many brilliant ideas about finances that may not occur to most people.

One of the lessons that you can get to be a financial success in this book is to focus on assets, not income.

How can this principle be applied? Robert's business give an axample with his Rich Dad Company.

Robert Kiyosaki does not focus to get income by making products in the Rich Dad Company. However, Robert instead focused his attention on creating assets. That is, he does not focus on his books, but he focused on the production of derivatives, namely the right to license, so he could sell the licensing rights to other countries who want to translate the book. Apart from the book, Robert also has other assets of the license rights Cashflow games and his trademark.

In this way, Robert is also denying the principle "live below your means" that a lot of people applied. According to him, what is more appropriate is "expand your means"! So do not just focus on saving money, but more focus in the increase of assets. Increase in financial capability, rather than lower the standard of expenditure.

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For Robert and his wife, Kim Kiyosaki, reproduce done with their plan assets in 2009 was to publish three new books, buying 200 to 500 rental units, drill more oil wells, and others.

Principles applied by Robert and his wife reminds we of the Mike Litman, author of Conversations with Millionaires. He once wrote in one article, that is what is done by the entrepreneur.

Thus, the entrepreneur focus on long-term goals, not short term. The entrepreneurial focus to build assets, rather than on revenue or income, such as what is done by the employees. If the employees focus on the salary that comes out every month, then the entrepreneur to focus on building assets that can provide benefits for the long term.

Increase the asset does not have to do with his own money. In fact, Robert says that he likes to build assets in debt (not for consumer goods). No wonder Robert to retire at age 47. Financial knowledge is so deep, and of course he practiced alone. Well, what you read was just a bit of valuable lessons from the book Conspiracy of The Rich.

Financial Planning Can Save You

Conduct of financial management or financial planning will not only save your own financial situation, but also could be a "cure" for you. How can it be?

1.  You can use your financial planning, as an analytical tool, and also the financial map.
By having a financial planning, then you'll know if you have leads on the right track financially.

You may have goals and dreams, but if you do not make a "map" to make it happen, then your trip will be misguided. By creating a "map" of the  financial planning, you will not only have a "financial guide", but you will also be able to measure the progress you make, financially certainly progress. If you own it.

What if a state or large corporations who do not have a financial plan? Can you imagine?
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2.  With Financial planning, you will become an employer for the money.
Conduct of financial management, organizing and planning your finances, will be able to make you always control the money, not driven by money. Being a boss or employer would be better than the workers, right?

3. Financial planning is a mirror of your true financial condition.
When you make a financial planning, you will know if you've lived in your financial limits or not.

Before the credit cards are widely used as it is now, you can measure if you do not exceed the financial limits, because you can still see remains of the money. But with a credit card, you don't know if the money you spend on it too much. Therefore, a financial planning can be the solution.

4. Financial planning will help you realize your plans for saving and investing.
If previously you only have dream to invest the money, then by making a financial planning, your path to make it happen will be much easier. In fact, if we have a plan, then most likely we will get better again, with another goal that we do not actually want.

5. Running what was planned to help you set aside money
This way, you can have the money that you can use for things that are actually useful, rather than throw them out to get rid of the things that you do not even remember what for.

This does not mean "live below your means", or try to live below the financial limits to the "sacrifice" the things you want to buy. A better way is not "live below your means", but "expand your means", or multiply the money goes. However, buying things that do not have the same benefits to the extravagant, and it should be avoided.
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6. With Financial planning you will know where you are spending too much money, so you can refocus to realize your true purpose. You also can get out of bad debt bondage, which is payable for such things consumptive or a declining value

7. Financial planning helps you sleep better every day, because you do not have to wake up out of fear of how you can meet the needs of tomorrow. So, make a financial planning can be "sleeping pills" good

However, although 7 of the above reasons may sound good, people are still reluctant to make financial planning. How about you?

Importance Learning of Financial Knowledge

Financial Knowledge -- Either rich or poor, clever or foolish, young or old, all have in common when it comes to money.  

Yes, we all use money. Amount of money they had and how we use money is different from one another. But, it is certain in this world we all need the money, unless you live in hiding and away from the crowd. So, what is the sign of that?

This shows that we all need to have good financial knowledge.

In a study by the Organisation for Economic Co-operation and Development (2005) with tittle "Increasing Financial Literacy", stated that the education or financial  knowledge is becoming increasingly required of them because: 

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1. People are now faced with an increasingly complex financial instruments, with various advantages and disadvantages of each.

2. The existence of the baby boomers (people born after World War II in America), and also increased life expectancy

3. Low levels of "open-mind about the financial" community.

In that research, stated that financial education is important not only for the benefit of individuals. Financial education is not only able to make you use the money wisely, but also can provide benefits to the economy.  

Thus, consumers who have a good financial education will be able to use the money according to what they need, so this will encourage manufacturers to make products or services that better suit their needs. 

In fact, a study in Australia have revealed that the increase in financial education in 10% of the population will increase Australia's economic potential by 6 billion Australian dollars per year by opening another 16,000 new jobs. 

It all happened because people are increasingly aware of the importance of managing money and how to use it for the future. That's why school children should have been provided with financial knowledge, so that later they can have control over the money they have. 

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According to Annamaria Lusardi, professor at Dartmouth College, as quoted from USnews.com, said that the people who know the basic of finance knowledge will have a better pension plan, have greater wealth, and can avoid the debt (for consumer goods) with more fine. 

Outside their own country, financial education is taught in schools, but it was not enough. Just like most other subjects in school, financial education in general is less effective for teaching in a school system that is less applicable.  

According to Robert Kiyosaki, education can be started from the words. This is basically the same as the principles that already exist, ie "you are what you think." Therefore, the words themselves would aim to "feed" our mind with positive, or negative. 

Financial knowledge begin with words such as could be done by using the "language of the rich", as the term assets and liabilities. But, of course, words alone are not enough, because it is only a part of a process. 

Besides studied in school, financial knowledge can be done in various ways, such as the seminars, reading books, visiting financial sites (such as finance.yahoo.com), and of course with direct practice what we already know. Happy Learning! 

Finding Venture Capital

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Capital is one of the important factors needed to opening the business. Capital is usually divided into three, namely Investment Capital, Working Capital, and Operations Capital. By knowing one of the factors needed to open a business, then come into our minds, how to invest can be collected?

This discussion is interesting, because many people have trouble raise capital. For example, if someone wants to open a laundry business with has its own washing machine, and it requires a capital fund of $2,000, while its own funds new $300, which he could raise capital?

There are three ways to raise capital:

1. Own capital

First obviously, if you want to open a business, you can use their own capital. How can the taking of deposits that you have now, either from savings or deposit, or by selling assets you have. For example, many people who sell the bike to be used as venture capital, or selling the jewelry they own.

Selling goods to raise capital is a common effort. Most importantly, do not feel too good to sell some of your assets to increase capital. For example, if you do not have the money for working capital and need to sell your jewelry, so sell it. Later, when your efforts are successful, you could always buy more jewelry the better. Right?

2. Borrow

Borrow the money for venture capital is also often done. By borrowing, your businesses dream can come true faster. This is better than waiting until the accumulated capital. Only, as you get capital by borrowing, you really should pay attention to cash flow. This is because you would have to return the money you borrow. Whether the return on a monthly, 6 monthly, or maybe years.

In terms of borrowing, that many people are often too focused on how they can get a loan, but do not think about what they can do to return the loan. So, when borrowing, try to figure out how you can return the loan.
The tip, when you think of the way, do not be too optimistic that the income from your business must be able to direct large in the first months. If necessary, make estimates sepesimis possible. From a pessimistic estimate, you'll be able to assess whether the returns are going to do later can be smooth or not.
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3. Joint-Partner 

Instead you use your own funds all, or than you borrow, why not try to cooperate with others? With a long term cooperation, the risk of your business can be smaller because they have shared with your friends. But, the benefit you get would also be shared. That is, the risk is shared, the benefits must be shared.

Now the problem, are there people who want to cooperation with you? That depends on whether you can as well offer a reasonable profit on the business you have to offer. However, the offer is not enough profit you know. You should also be able to give a good approximation, not proud of the people you want to cooperation.

In addition, whenever possible, the explanation you gave also must be reasonable, sober, and not merely describe the advantages to people who want to get the cooperation.

Well, now, you already know how to raise capital to start businesses. Hopefully from the above three options, you can determine which option is best. (*)

Where to Hone Financial Quotient?

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Scholastic and professional education does not teach the book of Financial Quotient. We studied accounting there. But we are prepared to be a book-keeper for the assets of another person. We do not learn to develop their own assets. The teachers and lecturers teach us to work to earn money, not create money.

In school, we learn to be a good employee, obedient, loyal, and productive. In college, we are prepared to be screws of the industrial engine owned by others.

In various courses, we trained openly working for someone else. Not one who taught us financial freedom. That's the weakness of our education system.

But, just because the school did not provide a place for Financial Quotient in the curriculum, are we then not be able to learn it?

We must continue to learn. May be directly in the real world. Perhaps we also studied empirically, with a concrete experience. Or, maybe we could take a lesson from the experience of others, whether failed or successful experience.

Learning from the Real World

Many people are financially savvy after years of dabbling in the real world. They know the joy of passive income, then keep trying to improve the productive assets to increase the pipeline of wealth. Maybe at first accidentally, but after successfully finding a pattern, they become addicted.

Indeed, not all experience is sweet. There also had to fall up and battered, before finally turning failure into success. Although it must first downs, they are more mild than those who do not.

The owners of the business from various companies that positive cash flow, the owner of the leased property, the owner of a car or other goods being leased; might be the people who study the financial acumen of their action daily. They trade, sell, buy, and make dealing at any time. Sometimes the loss. That is normal. Just as long as a whole, its cash flow is still positive. They were finally able to compensate for losses in a transaction with gains on other transactions.

They use a pattern of trial and error, or learning by doing to build their Financial Quotient. Plusnya value, they can really feel and appreciate the processes that are underway. Downside, of course, must bear the cost of no small learning.

Learn from the Master

More intelligent than the first group that uses a pattern of trial and error. This second group is conceptually already understood the principles of Financial Quotient. They just need a concrete example, that someone they know, which can interact directly. Very likely, it is one of his closest friends, relatives, parents, or people in his inner cycle.

Learning from a teacher, it could eliminate the possibility of failure. At least, there can be invited to talk if you want to buy or sell assets to maneuver. Nothing gives directions based on real experience.

But on the other hand, teachers also learn directly from nothing to lose. The most risky are likely to follow the example of the entire science students of the teacher. Either strategy, way of life, as well as the values of doing business. It does not matter if that imitated a perfect figure outside in, intelligent as well as ethical. But what if the teacher was like unethical behavior in business, although he was prodigy?

Another thing that should be taken into account is the amount likely to be a follower for life. So do not dare to implement their own original ideas, or lack the confidence to be creative. In fact, the increasingly rapid changes require us to be creative and more creative.
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Learn from the Expert

You can learn from short courses about Financial Quotient. You can follow the short course, training or seminars on how to achieve financial freedom in no time. You can interact directly with the speaker, which may be a popular motivator, or an expert in the science of getting rich.

The advantage, you can direct dialogue with them. You can absorb the knowledge. You can catch the explosive motivation. You will be moved to do the same thing exactly as suggested by the speaker. Not the spirit is a kind of "virus" that contagious?

Harm, the speaker is not focused on yourself. There are hundreds of other seminar participants. The experts are just trying to formulate a recipe that is generic. In fact, the implementation of financial strategies should take into account the special character of each person. So it is not necessarily what the speaker is talking about fiery you can do it perfectly.

The other downside, not all experts really be able to apply theory in practice. Many experts or business analysts who manage the company's incompetent. Many financial advisors whose lives are actually in debt. So, be careful.

Learning from books

You can also learn from books. In recent years many outstanding books on Financial Quotient. The authors present a variety of recipes, formulas, and practical tips. Both the style parktis simple language and easy to digest, to academic sentences difficult to understand. From the description of the everyday vocabulary are easy to chew, to formulas and complex numbers such as the formula to make a nuclear bomb.

As with any seminar or training on the part of private wealth management, learning from the book are also many disadvantages. Theory and tricks in the book, sometimes not realistic. Especially if it were written by foreign authors, who have real experience in foreign countries. Therefore, the world of business and the economy in Asia has a different style with the United States. Different economic policies, inflation and interest rates vary, and the behavior of people (as the subject of business and economics) is obviously very different.

Thus, everything is back to you to choose, how to learn this Financial Quotient.

Financial Quotient can be learned

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          Many figures and celebrities who made an example of financial quotient, typically, is used as an example is the failure of those in the age pension. Rich and abundant luxury at a young age but fell into debt and poverty in old age. Or go bankrupt when he was no longer known.
          So, with these examples, the question arises, whether financial quotient can be learned? Or is totally dependent with inborn talent? Let us refer to the following of this paper.
          Based on research, financial quotient is not a talent. Financial  quotient can be learned, can be honed, refined, sharpened constantly. In fact, if not honed continues, it will quickly become obsolete. Instinct to finance would be decreased.
          The question that often arises is whether the financial  quotient solely focused on money? No. Financial  quotient focuses on real people. It's not about money, it's about people. Let us discuss one by one aspect of that is:

Focus on a clear goal

          Prior to forge themselves into financially savvy, you must have a clear purpose. Here is a list of reasonable goals that you can use:

- I want to enjoy an easy old age, and not to burden their children and grandchildren. You also want it? It's okay, because it is very reasonable and humane.

- I want to be financial freedom. And, many people want to meet the needs of a normal life without having to physically work.
- Being rich. Having a lot of productive assets.
- It could help others. Because after all, we as humans are social beings and should be able to provide benefits for others.
- I want a happy family. The purpose is noble and very reasonable.
          All of that are the example of clear objectives and specific enough. That it should be noted, financial quotient is the weapon that will destroy in the hands of the wrong people. So, you should not have a bad purpose. The theme of the financial world is not merely rational, but normative. Wealth that would be glorious if intended for something positive for mankind.

Perceptions About Money

          Renewal your perception about money. Money is not everything. We work not merely for the sake of earning money. We work to serve others. We work, think, act, for the common good. Money is a consequence. If we work well, based on good intentions, then it will be good also.
          Money is not the goal. Money is a means to reach the honest goal. The important thing is not whether you have $ 1 million today, it's what you would do with $ 1 million, if the money is already in your hands.
          In fact, 90% of people plans these things so consumptive when get $ 1 million. They think about luxury holidays in Exotic places, take cruises, luxury cars, designer clothes, parties, etc. Very rarely are plans to halve the money: half to charity, and the rest as working capital.

Perceptions About Works

          You also have to change the perception of the work. Again, do not work to earn money. Money is a consequence. Work is to create added value for the benefit of all parties. For yourself, your work is learning. Wherever you work, there must be a system in which money is created. Well, learn the system. So, next time you work not for the money, but it creates money.
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Enthusiasm

          Become rich and financially free is a relentless journey. Like a marathon runner, you need a consistent steps in the long run. There are no shortcuts to getting rich.
          This is where the enthusiasm comes into play. You have to maintain that enthusiasm in the long run. Do not ever lose the passion. Only with a high sense of interest, curiosity is so great, you can find an effective way to accumulate assets.

Fun Learning

          Hone financial quotient requires continuous learning fun. Keep the fun and don't let it quick evaporate. Always exploring new things, new ways, finding out about a new phenomenon, are things that can continue to hone your intellect.

Keep thinking about how you think

          The world is changing, human behavior is also constantly changing. If we believe that financial quotient is something that involves human behavior, then there is no room at all for the rest of the brain.
          Financial quotient is not how many assets you have accumulated. but how sophisticated a way that you find, you wake up the system, and patterns of thinking that you apply. (*)

Financial Quotient in the Cashflow Quadrant

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First thing first to absorb the essence of financial quotient is to position yourself in Kiyosaki's cashflow quadrant style. It’s means you must choose the role as Employee (Quadrant E), professional or self-employed (Quadrant S), business owner (Quadrant B), or the investor (Quadrant I).

Remember, you do not have to choose one of quadrant. You can choose more than one role in more than one quadrant. It’s depend on the potential you have and the "guts" to do so.

Source : Kiyosaki (Cashflow Quadrant, 2003)

If you are reluctant to leave your job, you do not want to go from quadrant E. Is this bad? Not really. You can still play a role as an employee with your money (acting as an investor in quadrant I) or open your own business (a role in quadrant B). Did it work? Depending on how you allocate your time, resources, and attention or concentration.

Maybe this time you do not intend to change sides, or expanding into another quadrant. There has been no capital is the most classic excuse. But that does not mean you will not do. Plan for sure, when are you going to change sides or expanded into another quadrant. Without a definite plan, the intention of only staying a mere intention was never realized. So it must have a target, in what year did you have your own business, in any field, and how to set the time between to keep working while managing his own business.

After that, determine the most realistic way to achieve that target. If capital is the main obstacle, then start setting aside a little income. If the skill and knowledge is still a constraint, then try hard to understand the business areas that will be yours. If you have not been able to appear as a single fighter, then start looking for a suitable partner.

In essence, you have to understand the position you are now in Kiyosaki's cashflow quadrant. Then, determine how your future position in the same quadrant.

After that, just think of strategies and measures that are realistic, based on an eight-point summary of financial intelligence as described in the previous section.

Many people assume, success in life depends on hard work, luck, circumstances, they do not have wealth, outside help, connections or big sacrifices unbearable. They do not know that success does not depend on any state atai conditions.

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To succeed, we must prepare ourselves for success. First, there must be a willingness to succeed. Then we have to do the things necessary to help us achieve it.

Success will not come from spending all the revenue for eating and drinking, or partying late into the night. Success born out of efforts to help themselves develop mental, mind, body and soul. If we want to succeed, we must prepare ourselves to receive it. This preparation consists of logically improve themselves through knowledge selp that should help us get your own, to be applied in concrete measures.

We do not waste time and money, but we learn to make it useful for us. Time for fun used to master the knowledge-practical knowledge that if properly implemented, will bring strength. Set aside a portion of your income. The more you save, you get closer to the rich. (*)

The Big 8 Formulation of Financial Quotient (Part 4 - END)

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# 7 CREATING ASSETS CAN NOT LOST
The key to financial freedom is to create assets that can provide positive cash flow. However, in terms of physical assets could be lost at any time. Probably stolen, robbed, or lost its value because it is no longer productive.

It is therefore necessary for us to create an asset that can not be stolen, lost, or robbed. The assets are way of thinking and how to act. Okay, you maybe total bankrupt because something. But if you still maintain a way of thinking and smart action financially, then all the missing will return.

Way of thinking is paramount. Because it affects the way the act of think. Way of thinking affects the attitude you have to take on any issue. Way of thinking will save you in these days of rapid change.

#8. UNDERSTANDING THE SIGNS OF THE MACRO-ECONOMY
The business world is an integral part of the economic system in general. So, it is important to understand the signs of the macro economy. Because from there, you will see a variety of opportunities that can be utilized, as well as the potential barriers that need to be anticipated from the outset.

Begin to observe what is happening with our macro economy. Indicators that should be observed at all times: the level of economic growth, exchange rate against foreign currencies, inflation, interest rates, stock indexes, and the unemployment rate.

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High economic growth opportunities for many areas. Moreover, when interest rates low enough so that the cash flow to all areas of business. Society is relatively more easily spend money. Stock index will rise, which marks the world entered a period of booming business. It's time to invest in the shares or business real sector in general.

But if it is accompanied by relatively high inflation rates (beyond the government's prediction), then be prepared to enter the dark period. High inflation will be followed by higher interest rates and depreciation of currencies at the country. The money will be sucked out of circulation, so that any sale will be difficult. It's time to put some cash in the form of deposits or foreign currency. Or, time to buy a property whose value has been corrected.

In principle, the economy like a pendulum swings between growth and stagnation, between inflation and interest rates, and between real and monetary sectors. Sectors of the economy's real sector that directly generate output. The output is usually in the form of goods and services. Trade, industry, agriculture, tourism is all entered the real sector. Because they are directly employed in production and human resources and pay wages. The real sector is usually characterized by labor-intensive sector, though such guns forever. While the monetary sector output has a form of capital. Industries such as banking, capital markets, insurance.

If you are able to find the pendulum swing patterns, it is very easy for you to put the assets in the areas of maximum profits.

All government policy, of employee salary increases to rising fuel prices will impact the business. Observe how the government formulates its policies, and what policies might be taken in the future. By looking at the trend of government policy, means you will be better prepared for any event that would happen with the economy and business in the future.

Thus, financial quotient is not only related to personal financial management course. But it has extensive views on the various aspects that affect each other. Either directly in the financial-economic aspects, to aspects of history, geography, political to security in the region. (Financial Planning - END)

The Big 8 Formulation of Financial Quotient (Part 3)

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# 5. YOU MUST HAVE LEVERAGE
If you've found a mountain that will be excavated and searched for gold nugget, it's time to design a lever tool. What separates the rich and the middle class and poor people is ownership of leverage.

Leverage is something that makes your assets will grow up following with doubling time. Leverage comes from the system created in such a way that no longer depend on a particular person. With leverage, we can move the boulder that is not possible we can lift alone.

For an example. A bakso (meatballs in Indonesia) seller reaches maximal turnover of $ 100 a day. He wants to double its sales to $ 2000. One step which he can do is open the branch. With 20 branches, it reaches the targeted turnover. Of course, to open a branch he must train employees and staff, standardizing recipes, and create the look of outlets with specific characteristics. No less important, he must choose the appropriate locations in order to achieve sales targets.

But the next day, He is not satisfied with turnover of $2000 a day. He wanted to $10.000. How? After consulting and ask for everyone whom had sales experience, he decide to makes a franchise system for his products. He designed a promotional strategy to increase brand products, also for the investors interested in acquiring his license meatballs. With a franchise system, he had no trouble reaching the desired target.
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#6. LET THE MONEY WORK
If the system is working properly, now it's time to raise money. That work is now not the person, but his money. People may rest, doing whatever became his hobby, or looking for new ideas to explore other business areas to strengthen its business network. But the principle, the money during these labors, it's time to be a major asset that provide cash on a regular basis.

You can do this trick. Spread the money into various investment instruments. Spread the risk according to the desired scale, in order to avoid a total loss. If the money is quite a lot, more diverse options available.

The most conservative institutions such as banks, will definitely be tempted. They will offer special rates if the owners want to place their money in the bank.

Deposits and government bonds are believed with minimal risky investment alternatives. Then there are corporate bonds and stocks, the risk is higher. But of course, if the risk is high, also had high profit opportunities. Placement of cash in non-bank financial institutions, may be willing to give higher interest rates than commercial banks. But the risk is also higher. Playing foreign exchange risk is also higher, although you will likely get bigger and faster gains. So between risk and profit levels are always directly proportional. Here the role is your calculations, as well as guts.

The property is an investment alternative which has been a favourite. Buying an apartment, house real estate, or vacant land in strategic locations, will usually give a nice profit. However, its location must be strategic. Much easier to sell expensive assets in strategic locations instead of cheap assets in locations that are less developed.

Compared to bank deposits, stocks and forex, property slower cashed. So it is more illiquid. However, there is a double advantage that you can get. The first is a rental income property, the second is the equity that you definitely get over rising property prices. Property is the only asset / assets whose value never goes down.

However, the property sector also has its own tidal cycle. In 3-5 years, usually the market stagnation. Such conditions occur when economic growth slows, interest rates crept up, and inflation increases. Currently, the companies property difficult to sell their products. In contrast, the secondary market is very crowded. Many people sell homes, probably because it needed cash.

Always update for information, until you know exactly when moments like that happen. That's the right time to buy because prices are usually set below the average standard. We make a profit at the time of purchase, not when we sell. (Financial Quotient.. To be Continued)

The Big 8 Formulation of Financial Quotient (Part 2)

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Let's continue the discussion on Big 8 Formulation of Financial Quotient :

# 3. Understanding THE MONEY FLOW
Look around, and see how the wheels of business turning. Pay attention to transactions that occur every time; people buy credit, best-selling line at the restaurant, including the transactions that occurred in traditional markets. Understand why people are willing to sacrifice certain amount of money to acquire goods or services.

For 15 minutes, try to note the cashier at a supermarket. Estimate how many dollars, the transaction which he did. For 30 minutes, when it was at lunch, try to count the number of consumers who come to the restaurant where you eat. Estimate how much expenditure per person, and try to guess how much turnover in the restaurant every day. Understand how well managed, how they get raw materials, and how they treat the stock that is not sold.

Try to observe people's behavior when shopping. Investigate their background. Look at the preferences of goods they buy. While you are chatting with friends, try asking about what goods or services they really want to get if they have a lot of money.

Here are the things you might find :

The fixed income have similar spending patterns. Both cycle time and the goods they want to buy.

Cash flow pattern occurs, in the early months of the money flowed from the employer to the employee. But that only happens in a few days. Moreover, the flow of money turned back to the employers, ie those who own and manage the business. Even if the salary is up, the employee did not stop shopping. Is not there a credit card?

Compared to the employers, precisely fixed-income employees, the most daring owe. Most of their debt is consumer debt. Nominal amount may not amount to much. But it is relatively nominal amount? We have to compare it to income. Many of them mortgaged future revenues for the enjoyment / utilitias enjoyed today. Unfortunately, 90% intended for consumption purposes! Not to improve cash flow, the longer they are entangled consumer debt, the smaller the chance to be financially free.

Most people have obsessions that are consumptive (eg a holiday to Hawaii, buy luxury car, renovate a house, etc.). Only a few are obsessed to restructure assets and raising money in order to get passive income.

# 4. SEEK A HIDDEN GOLD
People who are financially savvy, able to see what ordinary people are not able to be seen. In layman's eye, a hen is a two-legged animals who otherwise would be baked delicacies. But for a financially savvy (having a financial quotient, hens were three years ahead will be hundreds of chickens.

Look around. Try playing your imagination. Imagine if the swamp land was transformed into the residential real estate, shopping malls or luxury apartments. Certainly land prices would double outstanding.
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Many players who are looking for real estate business hidden gold. They are looking for land that has no value for others, then transformed into gold. They create an environment and sell with ease. They are selling is actually the idea, not the house or garden.

The advantage clearly exceptional. However, they are very aware that the profits earned at the time of purchase, not when to sell. This means, they know exactly what they should do at the time of initial purchase dealing.

Everything of value lies hidden. We must explore the mountain to get a hunk of gold. We have to dive into the seabed to get pearls. Gold does not appear above ground, as well as pearls are not visible above sea level.

Gold is the metaphor of hidden business opportunities that you can work on. Maybe it was not worthwhile for the average person, but if you touch it, he could be a money machine. Most people do not realize it, so your chances of getting wide open.

Business junkyard and scrap paper miaslnya, is the kind of business that does not appeal to most people. Because a bad image, dirty, complicated, and similar waste. Also unhealthy work environment.

However, the picture is deceptive. Just the impression that emerges when we look at the barren desert that lay wide. Yet, beneath the blinding desert sources said that there are billions of barrels of oil.

So do not be fooled appearance or image of the surface. Maybe we did not think that a seller of fried bananas could reach sales turnover of Rp 5 million per day. A seller dumplings could reap a net income far greater than the salary of a manager who dressed neatly and everywhere a luxury car ride. (Financial Quotient.. To be Continued) 

The Big 8 Formulation of Financial Quotient (Part 1)

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# 1. SORTING OF PRODUCTIVE AND CONSUMPTIVE PURPOSES

Economics learn human behavior in meeting their needs. In essence, the science of economics learn three things, namely: production, consumption, and distribution. In today's modern economy, the distribution activity is categorized as a productive activity, because the distribution to create value-added. This means, the offender is a distribution business that creates money by creating value.

Consumption is the spending act of value to an item. Consumption means sacrificing some money that will never come back. So what do we get? Satisfaction, use value or utility. If we buy clothes, we spending some money. But we benefit from the clothes, which is the body protected.

Meanwhile, the production is to create goods and services that have value to society. In production, we spend some money as capital, but would later return with the expected value is greater. The difference is profit, which in economics is value added.

CORE OF FINANCIAL QUOTIENT

Our daily actions, which are spending money, can be categorized into two types; productive or consumptive. Try making a list of 50 things you normally do every day. These activities were aggregated into production or consumption activities. Which includes activities such as consumption of a car wearing to the mall, eat, buy snacks, pay for service vehicles, pay electricity bills, buying clothes, paying installments family occupied homes, and others. The cost of school children also includes consumptive activities (from the standpoint of parents), because the change rate (rate of return) is difficult calculated. Even so, from the perspective of children, education costs should still be considered a long term investment.

Meanwhile, productive activities that include, among others, working in the office, to be used car sale broker , working on graphics script-writing/desain ordered by clients, buying a car (for rent), etc..

Do not be surprised, 90% of the items of our daily activities is a consumptive activity. But its okay, that is not the point. What matters to you is to reconsider any item consumptive activities. Really worth the money spent? Why should join fitness at a rate of $ 500 a month, if there are other alternatives that are only $ 10 once it comes? Why you should buy a dress for $ 100 if there are other options with one-fifth the price?

# 2. DISTINGUISHING ASSETS AND LIABILITIES 

The most important lesson from financial quotient expert like Kiyosaki is a theory to separate clearly between assets and liabilities. Many of the liability that looked as if an asset, so we feel rich (but actually poor).

For example, private cars and private homes. In accounting, the second type of asset shall be recorded in the asset column. But for Kiyosaki is not the case. Private homes and private cars are a liability. Why? For the installment of two types of property that can drain 40% of your monthly income.

What distinguishes the assets and liabilities? Cash flow. Once again, the flow of cash.

Asset

Assets are assets that provide cash flow for your finances regularly. That every time to help you succeed financially. Which include the assets are:

• The rooms in your home that rented for student boarding
• Houses are contracted
• Car for rent
• The land productively cultivated or leased
• Money invested
• Intellectual property that gives royalty
• Works copyrighted / artwork that gives royalty
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Liabilities

While liability is a treasure that drain the contents of your pocket on a regular basis. Most of the consumption list you could in principle be classified as a liability, for example: 

• Mobile phones, televisions, refrigerators, and other electronic goods

• Personal vehicles
• Private home
• Collection of clothing, including shoes
• Membership in certain clubs
• Credit Cards

Cut off your liabilities, and have as many assets that can provide for your cash inflow. That way, you will improve your financial condition. Expenditure savings could be allocated as inventasi, to supplement the income side of your cash.

If that liability can not be avoided, use the cash method of payment that you are not charged interest for something that is consumptive. If you have to pay interest, try as much as possible so that the purchased items have productive value, so the object can pay his own mortgage. (Financial Quotionent.. To Continued) 

2012 Financial Resolution

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2012 Financial Resolution -- Every early people used to make resolutions. Resolution is what are the things you want to accomplish at any given time. Because this is 2012, then the resolution you make of course is a resolution for 2012.

There are a variety of resolutions, ranging from the resolution of career, family, friendship, until about love. One of the most widely resolution people make is whatever they want to accomplish in 2012 is financial management.
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There are many examples, ranging want a new house, buy a new vehicle, open your own business, no longer wasteful, or anything related to finance. In principle, only five things you should do this in 2012 so that your finances could be better this year.

Determine Source of Income

The first thing you should do is to re-evaluate your income sources  that has been acquired along the way. That is a source of income here is what you do to be able to get income. We are talking here of course is a profession. If you are an employee, whether you need to move out to be a freelancer? Or it necessary to open all your own business?

Or conversely, if you are now a freelancer, should move to large companies by being an employee? Do you need to close your business? You can also still decide to be an employee, but moved to another company.

There are many factors that can be included in your calculation, such as how to comfort and your work environment, your income may be large, up to the possibility that income increases in the future.

Create a Productive Asset

If you usually work just to earn money, it is time you start working to make the asset. What assets? Of course that could be producing assets to provide income for you.

Examples of productive assets of the simplest of course is the deposit. If you have 10 thousand dollars, you can put it in the form of bank deposits, so he gave interest to you.

That was to be called a productive asset, even if the current deposit rate can be small, but in principle, it was a productive asset. Purchase obligation is also an act that fits.

Another example? Build or buy a house, then your house was rented, the rental income you get every year or every month it also shows that the house can also be a productive asset.

Carefully with Bid of Consumptive Items

I never believe it if you see someone who would do anything just to get big discounts on consumer goods they want to have. Actually there is nothing wrong with sale events or discounts, but some of the events such discounts are often very troublesome if you are taking.

It has often we see a lot of discount events that make you have to queue up for hours, seizure of goods with other visitors, and even forced to buy things that really kind and size does not fit you, but you keep buying stuff just because it's also more discount, with never mind the notion that yes, someday I will definitely wear this stuff, too.

There are three events that are often very troublesome sale because it rush and makes you sometimes have to fight for stuff with other people, or even queue for long: (1) Sale at the mall, (2) Launching of electronic goods, and (3) Exhibition.

Start Monthly Investment

Many people wait for big money then they moved to new saving and investing. Instead you are waiting for big money to come first, why you do not routinely make investments on a monthly basis? From now on, do a monthly investment of regular income you get.

Set aside at least 10 percent of the income that you get to put into securities products such as savings deposits in banks, mutual funds, unit links, and even you can also buy hard assets like gold every month. If your income  $3000 a month, set aside a minimum of $300 per month to saving. Let it be more, not less so.

Selective Credit Bid

There are various forms of credit. One of the most frequently offered credit are loans without collateral. To be honest, rather than loans without collateral, I prefer credit through credit cards. More simple, more flexible pay as well. And, try to prioritize taking your credit for the things that are of priority and importance, such as opening a business, buy a house, or buy vehicles that do you wear to work.

That's five 2012 Financial Resolution things you should do in 2012. Simply by running five things that, hopefully your finances could be better this year. And as you know, its part of how to learn financial quotient. (*)

Its Time to Financial Quotient

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Maybe you already know with IQ (Intellegence Quotient) so well. In the past, they used to have a high IQ would be considered a success, because they are considered more intelligent. As the time passed, the assumption is not fully considered correct. Time proved that many people are smart and gets good grades at school or university, it was not successful at the time were involved in the real world. 

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There is a possibility, because they feel more intelligent so they are less able to control emotions. As a result, they are less able to connect to nettwork and ultimately less successful in the business world. In the business world, relationships with customers and business partners are very important thing

Therefore, we also now know the EQ (Emotion Quotient) beside to IQ. Both of these parameters is needed today so that we prosper.

Is it enough to have both of these parameters? Apparently not. Because we can see that many people who have both still face many problems, especially in financial matters. Therefore, now we also need to know some other parameters, ie Financial Quotient .

What is a Financial Quotient? 

Financial Quotient is the ability of a person to manage his financial resources, with the financial welfare being as its final goals. Maybe someone smart in the school, have a good emotion, but can not manage its finances. What will happen? Without realizing it, the money could have been obtained from his work disappeared, due to mismanaged.

For example, there are those who have large incomes, but at present have difficulty financially aka bankrupt. Names like Michael Jackson or Mike Tyson in a past  has been known as people who have large incomes. But, what happened to them today? They are bankrupt, and has a huge debt.

Thus, financial intelligence is absolutely necessary that a person can continue to enjoy prosperity. The sooner you have a high financial intelligence, the more prosperous your life. If you late, you will fool in your life. The good news, as well as emotional intelligence, financial intelligence can be trained.

There are various ways to train financial intelligence. Many read books, magazines or tabloids that address financial issues is one way. Another way to train financial intelligence is more fun is to play games related to  financially matter.  

One game was designed by Robert Kiyosaki and given the name "Cashflow 101" (for beginners) and "Cashflow 202" (advanced level). Cashflow 101 is simulated in the game you have a profession with a certain income and expenses. The challenge you face is how you can manage the financial resources you have that can get out of the Rat Race (a state in which you are dependent on the job to be able to have an income).

In this game you will be familiar with terms such as "Passive income" (income earned without you having to work), "asset" (something that puts money in your pocket) or "liabilities" (something that takes money out of your pocket), "income", "expenses" . What is remarkable of this game is, Robert Kiyosaki can educate us in a simple, yet realistic, so that he could make the tagline "The more often you play this game you will get rich".

Of course, much easier to learn through a game, right? Is not life also is a game you should play? One thing is certain, whatever way, practice your financial intelligence before it's too late. (*)