PEOPLE ARE FUNNY

Sometimes, I have to hide a smile when I look at the antics of some people. Certain things they do or say, well, do not quite add up. Check out the following examples:

Some people say, “My life has changed 360 degrees” – to imply that they have undergone a total transformation and are totally different person now. Actually, a 360 degrees change in direction will bring them right back to their starting place.What they should have said is, “My life has changed 180 degrees”.

Some people say, “Aim for the moon. If you miss, you may still wind up in the stars.” I don’t know where they learnt their astronomy but aren’t the stars a lot further away than the moon? So, even if you missed the moon, there is no way you’ll wind up in the stars. You’re more likely to wind up back on earth!

Some people believe that an investment adviser is an expert in investments. They think he knows all there is to know about investments, and then some. They believe the investment adviser has their best interests at heart. Actually, the reason they are called “investment adviser” is that “speculation advisers” do not sell as many products!

Some people believe that a successful formula will bring in excellent results forever. They repeat the formula over and over again because it has been making money. So, even though the world and regulations have changed, they will continue to use the same formula. This partly explains why some people become ex-millionaires! They are stuck in a rut.

Some people rush to buys properties because the CEO of the housing developer told them that prices will soon rise. Don’t they realise that it is the CEO’s job to say that? After all, he is hired to sell as many properties as he can.

Some people think they can make money from options and futures and currencies when they already have a hard time making money from properties, which is actually the easiest, simplest and time-tested way to make money in Malaysia. Isn’t that a little like trying to beat a grandmaster at chess when you cannot even win at checkers?

Some people spend much time, effort and money to research a particular investment. The good news is all that research tells them, yes, the time is right for the investment. Unfortunately, for a variety of reasons, instead of investing ameaningful amount into the investment, they put in just a small amount of money – RM10,000, RM5,000 or perhaps even less. The problem with this is thatthe money is too little to be of any significance. For example, if they managed to get a 100% return on investment, which is superb and out-of-this-world return, their RM5,000 becomes RM10,000. While it is certainly a newsworthy performance, the extra RM5,000 will hardly change their financial situation. Had they invested RM100,000 or, even better, RM500,000, in return would have made a huge difference to their situation. This explains why some people never get rich even though they chose the right investment – their investment is too little.
Some people want to become rich but do not want to do anything different. Instead, they want to continue doing what they are currently doing, even though it is not bringing them the desired results. That’s like wanting to see the sunset but heading east to catch it! It just cannot happen!

What you focus on will expand in time

Let me start by asking you a few question. Though you may not have heard them before, I'm willing to bet that you know the answers. Here are the questions:

• Can a person become fit and healthy by going to the gym once a month?
• Can a novice tennis player become good if he plays only once a month?
• Can a cook become good if he goes to the kitchen once a month?

See, I told you that you would know the answer!

It is obvious that the answers to the above questions are "no", "no" and "no". One does not have to be a genius to figure out that it will be very difficuly, if not impossible, for anyone to become fit and healthy or become a good tennis player or a good cook if he carries out the task only once a month. In fact, it does not even compute and all of us know it.

So now, let me ask you another question. Can a person who analyses his finances once a month become good at it?

No, don't try to change the subject!

No "buts" of "ifs" - the answer is obviously "no" again. Common sense will tell us that it will be difficult, if not impossible, for us to be good at handling our money if we analyse our finances only once a month.

But yet, there are tens of thousands of people who expect to become millionaires but don't spend much time analysing their finances. In fact, some people don't do it at all.

How can they master their money when they do not even monitor it on a regular basis?

How can they become good at making money when they do not learn anything new about how to do it?

Just like learning to play tennis or becoming a good cook requires regular practice, you have to look at your finances on a regular basis. Ideally, you should look at your finances every day if you want to become good at managing it. Of course, "look" means more than just looking!

First, you have to educate yourself. This will mean reading books and magazines and attending talks and workshops. Next, you should take action by making use of information that you have picked up. Then, you can monitor the results of your actions on a regular basis. You can make adjustments when necessary so that the results are consistent with your goals. Continue learning so that you can get even better.

Of course, all this will require time, effort and, yes, money. But these are prerequisities for building and keeping wealth. And you have to do this on a consistently, ideally, everyday. If you spend 20 minutes a day looking at your finances and monitoring your expenses and read a book on money matters each week, you will become very good in money matters. In fact, you cannot help but become better.

Let me share a story to illustrate my point. I used to share a apartment with a friend some years ago. Because of the nature of our respective work, the only time we saw each other was in the car park. And every time I asked where he was off to, the answer was either 

(a) he was going out to play snooker, or 

(b) he was just coming back from playing snooker!

I suppose you wouldn't be tooo surprised if I told you that he was (and still is) very good at snooker. In fact, his wife was also very good at snooker. so much so that she was the district champion!

Now, how did both of them get to be so good at snooker? It was because they spent most of their time at snooker parlour. They were focused on snooker and, naturally, they became good at it.

So, if you want to become good at snooker, then start focusing on it. Read books about it, learn from the good players and practice on a regular basis - ideally, everyday. If you do that, even if you do not become a district champion, you will become very good at it.

By the same token, if you want to become good at handling money, then start focusing on it. And what you focus on will expand with time. And because you are focusing on money, in time, your bank account will also expand!