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90 Days To Financial Freedom in Malaysia
90 Days To Financial Freedom in Malaysia
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MANUAL.
CONTENTS
Preface
Chapter 1
Chapter 2
12
Chapter 3
14
Chapter 4
18
Chapter 5
25
Chapter 6
33
Chapter 7
39
Chapter 8
47
Chapter 9
53
Chapter 10
75
PREFACE
You have stumbled into a fortune by accidentally reading that classified selling this precious
manual. Not many people in Malaysia will have such an opportunity as you. The money you
spent to get this manual comes nothing close to the door of wonders that has been opened to you.
In this manual, I will teach you all there is to achieve 100% financial freedom. This is no mambo
jambo self improvement book you normally see in the stores. I will present you clear strategies in
fact very simple straightforward strategies to achieve FULL FINANCIAL FREEDOM in 3 years
time. This is my pledge to you. This is indeed the first time ever youll ever see such a manual in
Malaysia. Written for the layman, to make sure you fully understand and ready to implement all
that has been taught. In 90 days time, you will start to see money coming your way.
It has been my passion of showing other people to achieve the same financial freedom I
have enjoyed. I have learned from many people, from books, from gurus like Tony Robbins,
Robert Kiyosaki and many others. What you get in this manual you will not be able to find in
those books. It is a combination of all the skills gained and a real working methodology suited
only for Malaysia. If you are from outside Malaysia, you may try to suit these methods. It can be
used anywhere but is more suited to the Malaysian climate.
I must say we are all blessed to be born in Malaysia. Whether as a bumi or not, everyone
has the opportunity to live in peace and harmony with all the vehicles available to achieve
financial freedom. The capitalization of Malaysia coupled with our open economy and
infrastructure allows us to not only venture domestically but also globally.
I have actually put power of Internet as Chapter 9, but it is in fact the most important part
of this manual without doubt. I have explained the other money making strategies first so that in
combination you can use them with the power of the Internet. Internet allows us to connect with
other people in this world within seconds. It is indeed a gift from god in many ways. It allows us
to sell and break all the barriers that have engulfed us all these decades. We should have no more
reason not to make money from the comfort of our home. I suggest you concentrate fully on this
magic power of Internet money making machine.
I also urge you to read every single word in this manual. Do not skip any of the pages.
Every single sentence I wrote is there for a reason. You can also read this manual again and again
or make photocopies and bring along in your wallet for easy reference. Do the exercises and use
the tools in your real life. You will start to realize within 30 days if you fully utilize all these
tools, in 3 years time you will be living your life the way you please. Going anywhere you like,
doing the things you love most and not having to answer to anyone.
This manual can be used by anyone of any race and creed or by whatever status in
society. By whatever education youve received, by whatever salary youre earning. No matter
youre a housewife or a school teacher, these methods will definitely help you. I also urge you to
become a member of my website as will be explained later. Things change at light speed these
days. Whatever Ive taught you here may not be true anymore within seconds at the way the
world is moving these days. The website will provide you all the latest updates you need as well
as being able to interact with me as your mentor and also with others. Good luck!
Hal
internetmarketing1001@yahoo.com
CHAPTER 1
Fundamentals of Success - 9 Day Review
There are 9 fundamentals of success you must be able to understand and be the best you can be
for each of them. I suggest you print these nine fundamentals and stick them to a wall so that you
can see them everyday. You will need to concentrate on them and believe that these will be the
nine areas that will impact your life. You will target and practice each fundamental in 9 days for
each one of them. Allocate one day each on what needs to be done for each fundamental.
Emotional
Mastery
Relationship
Mastery
Time
Mastery
Physical
Mastery
SUCCESS
Financial
Mastery
Rest&Play
Mastery
Goalsetting
Mastery
Computer
Mastery
FIGURE 1.0
Prioritizing
Mastery
your life. Take advantage of your emotions and do not use it as hindrance to improve yourself.
Give also priority on your spiritual needs. Visit more of your mosque, church, temple or whatever
your beliefs are. Without this as a fundamental to your life, you will not find a purpose to your
being, and everything else will fail automatically before you can even start realizing it.
DAY TWO : PHYSICAL MASTERY
This is quite an important mastery which many somehow forget or simply ignore. Ill ask you a
simple question. Is it worth it to have everything youve ever dreamed of, yet not have the
physical health to be able to enjoy it? Do you wake up every morning feeling refreshed and
energized? Or do you wake up feeling just as tired as before. We cram our bodies with high-fat,
poison our systems with cigarettes, alcohol and drugs and sit passively in front of our TV sets.
You will need to control your health and your looks as this will inadvertently control your
emotions and the other masteries explained in this chapter. You must put priority on health over
anything else because without it you may not achieve the success and financial freedom we so
eagerly try to teach you here. I guess you can easily go out and buy any book on fitness and
health. But I can teach you some fundamental steps to increase your health. When I complained
to my doctor last time about me always being tired or how to reduce weight, he always advised
me to eat as you need and exercise everyday. These are actually the two only ways to actually
increase your health. Reducing weight is the best way to tell whether you have improved your
health. However, to let you start of with something, let me guide you the steps you can straight
away do. Remember I am not a doctor, so please go and get a professionals advice for this area.
Step 1 : Go and see a doctor and do a full blast medical examination and perhaps ask for the
doctors advise. This is the first step. You can actually deduct this from your tax or if youre
covered by your company better still. The main things you need to look at is your cholesterol
levels, your sugar level and others.
Step 2 : Calculate your Body Mass Index (BMI). Ask your doctor about this. BMI is made up of
your weight and height. If you are overweight, work to achieve your optimum BMI level ie.
reduce your weight to achieve that.
Step 3 : Try controlling your intake of fat and cholesterol. I promise youll feel better not stuffing
your stomach with too much intake. In other words, try to eat less but more frequent and dont
skip any of the 3 main meals. Take more fish and vegetable and take less meat.
Step 4 : Drink at least 8 glasses of plain water daily. This is not air limau, soya bean or whatever.
Just get as much liquid into your body as possible.
Step 5 : Exercise daily. People always complain about not having the time to exercise. That is
perhaps the worst myth possibly created by mankind. All you need is 15 minutes a day doing
simple exercises like taking a jog. Better still you can allocate 10 minutes in the morning before
taking your shower and 10 minutes after coming back from work. If you can allocate more time
the better. But again start slow and faster as you go. If you prefer other sports like swimming,
tennis or golf by all means do but again jogging (aerobic activity) is the best sport to burn your
fat. Youll learn about making time later on from Time Mastery covered later.
Step 6 : Stop smoking and drinking. This way you save money as well as save yourself and
others. I know its difficult and you may have heard this like 1 million times but this is the only
way. I do not wish to dwell to much in this step.
Step 7 : Make sure you get enough rest and sleep. At least get 7 hours daily. Your brain work best
once you get enough rest. Its not the quantity that matters, its the quality. Once in school, I
asked someone who scored 102% in Add Maths, what was the secret? He said he had enough
sleep before the test.
Step 8 : Take holidays, hiking the jungle or walks along the beaches. It not only improves your
physical well being but also your emotional well being.
6:00 am
6:30 am
7:00 am
7:30 am
7:00 pm
7:30 pm
9:00 pm
11:00 pm
Sleep
Jog
Shower and coffee
Go to work
Arrive home and exercise
Shower and rest
Eat, news and talk to family
Internet, making money
1 hour
hour
hour
hour
1 hour
hour
1 hour
2 hours
Step 4 : Write out your plan and stick it on a wall. And make sure you stick to them. After each
week analyse whether you are able to meet them and try to improve on them.
Time is money, time is gold. Especially in this era of globalization and internet, time is of
essence. Later Ill you many other ways to save time by jumping into the Internet. Chores
normally needing your Saturdays or lunch hour to do can all be done from the comfort of your
office or home. Ill guarantee youll be able to save almost half a day if you creatively optimize
your time by using new methods Ill explain later.
So you may think that youll just have 2 hours a day to make money. Reality is you have the
weekends to play around with. Lets look at it in more detail. In a month, you have 4 weeks with
2 days off being Saturdays and Sundays. Lets assume Sundays is your day off to concentrate
on your social life, family life and holidays. So you have 4 days in a month. In a year you
should have 48 days. Then normally, you should have 15 days a year of leave. Combine that then
youll have 63 days in a year time for your money making business. Malaysia is blessed because
we have nearly 15 days of public holidays each year. Add that up youll have 78 days. Therefore,
the 2 hours on weekdays you spend adds up to 480 hours a year of almost 20 full days. All
together you have 98 full days for your own business or 3 months to fully concentrate your
efforts on your own business. Im sure you can build many businesses in 1 years time with all this
time in hand.
DAY SIX : GOAL SETTING MASTERY
Success is goals, and all else is commentary. All successful people are intensely goal oriented.
They know what they want and they are focused single-mindedly on achieving it, every single
day. Be absolutely clear what exactly are your goals. Set a long term goal with short term goals
within it. Think about the future and create a Five-Year Fantasy. Imagine what your life would be
in 5 years time. Take some time to close your eyes and imagine it as though it were so real.
Therefore, everything you do from now is to attain those goals. How would it look like if you
have full financial freedom? Will you still wake up early morning? Where would you go at 9 am?
Will you still buy the papers or busy going to see people and planning your business empire with
your employees. Imagination makes things happen. Without it Columbus wouldnt have sailed to
America. Parameswara might have not reached Melaka! Man might not have reached the moon!
DAY SEVEN : REST AND PLAY MASTERY
All work makes Jack a dull boy! Stress and tension will destroy you. Take some time off!
Exercise is one good way. Perhaps plan for a holiday once in 2 months to anyone of the
Malaysian islands. Plan it properly so that you dont overspend. Or go for weekend picnics or to a
waterfall. Or even just go window shopping at one of the many KL shopping centres. If youre
stressed out, take a short walk and enjoy nature and surely take some time to think and reflect on
life. Stress kills Ill explain more at the end of this manual after learning all the methods and
strategies.
DAY EIGHT : COMPUTER MASTERY
Finally, Computer Mastery is something you cannot live without. I would like to spend more time
explaining how important this mastery is these days. If you do not master this skill, youll be left
out completely. My entire manual will depend on your mastery of computer skills. You need this
in your job, your expenses, budgeting, paying taxes, doing online-banking, paying your bills,
paying utilities, paying your summonses, reading the news, hearing music, entertainment and
finally most importantly making money on the internet. Youll save a lot of time. Time you can
spend to do more important things. For example, you used to have to go to Kedai Telekom to
settle your bills every month. If you pay online, you can already save at least 1 hour a month
already, time which you can spend trying to make money online. With this youll save petrol
10
money by not getting stuck in traffic jams, money you can use to invest instead. Ill try to give
simple steps you can take to master this as quickly as possible. Those who are masters of the
universe in IT can skip this else, follow these simple steps :
Step 1 : Obvious enough. Buy a computer. You wont need all the fancy graphics cards and
biggest monitor or the flattest most colourful PC you can find. All you need is a fit for purpose
PC that can run Windows, Words, Excel, Internet and more. A package consisting of 1.70GHz
Intel Celeron with 40GB Hardrive and 15 Monitor is all you need. As Im speaking it would cost
you only RM 800.00 for everything at Low Yat Plaza, Imbi KL. So go and get one, just to start!
Step 2 : It would take some time to be good in Windows, Excel, Words, Internet Explorer and the
likes. For me it has always been trial and error. Sooner or later Ill learn it. But thats me. For you
perhaps a 2 day class on a weekend to cover everything is necessary. These courses range
between RM150-RM300 for everything, Windows, Words, Internet etc2. Its worth the
investment. Buy also a book on learning Words, Excel etc2. A Dummies Guide to learning
Windows should be sufficient. Remember again you can claim this book expense as a tax
deduction.
Step 3 : Get your required softwares from Low Yat Plaza. Spend some time browsing the area
and talking to the store keepers. Youll be surprised youll learn a lot from them.
Step 4 : Finally, start allocating at least 1 hour a day just playing around with your PC. Im sure
youll use a PC at work also, so you can do plenty of trials and errors there as well.
Step 5 : Get Internet Access. Ill explain why Internet is so important in later part of this
manual. Ive dedicated one entire chapter just to explain this. But basically, a dial-up account
with Tmnet is not enough. Get Streamyx ie. broadband access. You just need to pay RM66 per
month to get unlimited access with download speeds up to 380 kbps. Your normal dial-up is
56kbps speed with sometimes problematic access. This is money worth spending as Internet will
be one of your most important Money Making Tool in order to achieve financial freedom in 3
years time! Check whether your area is serviced for Streamyx by going to your nearest Kedai
Telekom. You can also get more information by going to http://isp.tm.net.my
Step 6 : Create networking with friends or joint ventures and share computer skills or ask them
for tips on problems you may encounter while online or using your PC.
Step 7 : Make sure you learn Excel. It is a very important tool. Majority people dont really
know how to use spreadsheet. What a pity this must be one of the most important softwares ever
created in the PC era. Youll learn how to budget, properly cut your expenses and calculate
revenues and more. Make sure you master Word as well. Notice that a lot of Malaysian
governmental bodies, banks, companies etc2 only take action if you send a formal letter copied to
their supervisors. By a laser printer as well, cost you RM200 if it helps.
All in all you might have to spend at most RM1,200 on a PC and training and RM66 per month
on internet access. This is a worthwhile investment to achieve your early retirement I assure you.
DAY NINE : PRIORITIZING MASTERY
I will show you later on how important this rule is on other things to achieve success in financial
freedom. But briefly for a start, let me explain this very important rule. The 80/20 principle or
better called the Pareto principle was founded by an Italian sociologist or postman nearly 100
years ago. It says that actually 80% of things we do are actually trivial and 20% are actually
critical. So, 20% of our efforts will be the one that is making the 80% of our revenue. This is true
for anything else, if you look at statistics, 20% of population are also the ones earning 80% of
wealth in the country. 20% of nations on earth being USA, Japan and Europe are the ones with
80% of the worlds GDP. Look at our expenses too, if you look back at Figure 1.7 of Chapter 4,
80% of our total expenses is in just two things accommodation and transport! If you concentrate
and tackle that 20% and devote most of your time and effort on that 20%, youll make 80% most
of your income from that. I will show you later at the end of this chapter what youll need to
concentrate on.
11
CHAPTER 2
Every Single Sen Counts : Savings Strategy
Every single sen counts! This is a very important lesson indeed. Every single ringgit is a money
seed to your financial freedom. Every single ringgit you throw, you just lost your opportunity to
be a millionaire. This principle is called Financial Freedom on a Ringgit a Day. I will illustrate
to you by giving this very simple example. Lets suppose you take a single ringgit and put it into
a special bank account that will let the ringgit grow, untouched by taxes and fees. How long will
it take for this single ringgit to grow into RM 1 million?
That depends on the interest rate that the bank account pays. If its a normal bank account,
normally it would take a long time. Table below illustrates how long one ringgit can turn to RM 1
million at various interest rates:
Interest Rate
0%
3%
5%
10%
15%
20%
FIGURE 1.2
Time in Years
Never
468
284
145
99
75
Time in Years
147
100
56
40
32
Wow! Means if you started saving one ringgit a day since you were born means at 15% interest,
you should be a millionaire by 40 years old.
Now suppose you plant several seeds and save up to RM 10 day. Look :
Interest Rate
3%
5%
10%
15%
20%
FIGURE 1.4
Time in Years
74
54
34
25
20
So its actually possible to become a millionaire in Malaysia after 20 years by just keeping RM10
a day. Of course youll say its difficult getting 20% returns from any bank. If you were to put it
into unit trusts or real estate, history shows clearly in 20 years time 20% per annum return is
normal.
12
However, the purpose of this exercise is to change your attitude about money especially those
RM 1 you normally throw away. Ill bet youll think twice from now on before throwing away
one of those silly single ringgits. Its as though throwing away a million ringgit seed.
The real key is to keep socking away the money. Let the numbers whisper their silent but
relentless message. Consistency. Day in, day out. Save. Invest. Save. Invest. One example is a
couple combining their incomes and putting all their savings into well selected unit trusts while
buying a cheap car and a house. Saving everything and watched cash starting to pile up in 10
years time. They were able to already retire and never to work anymore and of course buy a
bigger house and a way bigger car. While another couple spent all their savings on expensive cars
and bigger houses in popular areas while stretching themselves too thin. They had to stress out
their lives for the next 30 years. Therefore, live on less than you earn, invest the surplus, avoid
debt and build a long term security.
Now lets set some specific and realistic financial goals for you. Follow these steps :
Target
Amount
Rate
Time
Purpose
:
:
:
:
:
:
:
:
:
:
RM 1 million
RM 10 a day
20%
20 years
Educate the youth in Malaysia.
For example :
Target
Amount
Rate
Time
Purpose
13
CHAPTER 3
The Six Money Secrets
Now that youve learned the true value of every single sen, Ill show you the six money secrets
the prosperous and the wealthy practice in their lives. I call them secrets because not many realize
the simplicity of the concepts and use them in their everyday lives. These are essentially money
skills to achieve whatever you want : houses, cars, travel and most importantly FINANCIAL
FREEDOM.
Share it
Make it
Invest it
Save it
Control it
Value it
FIGURE 1.5
Skill 1 : Value It
Neccessity for work:
Importance of charity:
The need for saving:
Accountability:
Skill 2 : Control It
Set up a simple system to organize your financial life. Use Excel to organize your expenditure.
Basically you must try to control the leaks in your spending system and get in more income
coming in. Ive dedicated one whole chapter later on to explain tools and methods dealing with
this subject. However, follow this simple plan for Control It and you should be okay :
1. Plan your purchase in advance. Your estimate budget or the lowest you can go. Write
it down on a piece of paper.
2. Spend some time to do market research before purchasing. For example, at least go to
4 places and get the lowest from there.
3. Negotiate and get a discount or find all the bargains you can get.
14
4.
5.
6.
7.
8.
Skill 3 : Save It
The object of the money game is to accumulate enough investments so that the income from these
investments will eventually support you. So save your surplus. Most people save money by
buying something on bargain but end up spending that money on something else. Ill give you an
example, if you managed to save RM10 from negotiating with the seller, when paying sock up the
RM10 into a savings envelope and dump it into your piggy bank. At the end of the month,
dump your piggy bank into a unit trusts.
Planning is also a key method for saving. Spend a few minutes a day planning your day. Once
youre successful plan your month and then start planning the next 90 days and so on so forth.
Means youll spend more time planning your purchases. For example, plan exactly when you do
your groceries. If you purchase at Tesco, Giant or the other hypermarts, youll save at least by
20% your expenses but it would be a hassle to go far to get your groceries. So plan exactly when
you need to go and buy in bulk. Avoid impulse buying and plan every single time.
One other major money saver is to cut up your credit cards and keep at least one for emergencies
or business. Pay the annual fees from your points. With this alone youll save money at least by
10%.
Have you ever walked past 10 sen and not picked it up because it was just 10 sen? The truth is
that sen is worth 1 million times. So pick it up, save and invest it.
53 Ways to Save RM53 a Month
1. Shop with a list and stick to only it.
2. Say no to ATM fees, plan ahead for your cash needs. Dont pay RM1.50 for nothing.
3. If your bank charge fees, close it and maintain just one.
4. Pay off that credit card balance fast!
5. Do balance transfers if you must carry a credit card.
6. Look for lower premiums on your insurance policies.
7. Use government hospitals if you have the time.
8. Get generic drugs.
9. Rent and dont buy something youll only use a couple of times.
10. Have a garage sale on things you no longer need.
11. Use calling cards that offer lowest rates for IDD calls. Try not use your handphone.
12. Cancel all the call waiting or whatever else you dont really need to use.
13. Email your friends instead of calling.
14. SMS your friends rather than calling.
15. Skip the movies, buy DVDs at Low Yat instead.
16. Dine out? Eat in, cook!.
17. Carry lunch in a bag everyday.
18. Try to use the library instead of buying books.
19. Try just reading magazines at the stalls rather than buying them.
20. Try free parking or unlimited parking. Take a walk for your health and bring an umbrella too.
21. Cancel magazines subscription you never read.
22. Go and see a parade or have a picnic. Free entertainment is usually the best.
23. Carpool to work.
24. Avoid taxis, always take the bus instead.
25. Plan your holidays in advance and book everything early and look around.
15
16
money before you can save or invest it. You should have many sources of income and not simply
rely on a single source of income. A lot of people all their lives put their faith in one single job
and try to grow only that while relying on their EPF savings for their retirement. In this day of
globalisation, you can never rely on a company or other people to be charitable to you and
maintain you as an employee for life. As time goes by they expect that you do more and more
until you can never sustain. And let me tell you about job security. There is absolutely none. If
you still believe it than you must be living in the middle ages. Factories, businesses always move
places. If they see there is an opportunity to save money elsewhere for instance going to China
they will do it and will find all means necessary to let you go. But having said this, you will still
definitely need a JOB. But let this just be just another source of your income in the short term.
While your main goal is achieve LONG TERM FINANCIAL FREEDOM. Plus, you learn a lot
while on the job. Many companies train their staff well. Youll get to develop people skills,
computer skills, formal writing skills, communication skills and more. So dont miss out finding
that job for short term money and the only best training youll ever getbetter than going to a
university. Best thing is you get paid for being trained by them! I elaborate more on this in
Chapter 5. Dont miss out on Chapter 9 Internet, this will be your key money making machine.
Skill 6 : Share It
Dont be greedy with this knowledge. Share it with people just like what Im doing now. If you
can help others with this god given knowledge, they will come back to you and give more.
Now that youve understood all the skills that is required lets get down to the dirty work in the
next chapter.
17
CHAPTER 4
Understanding Your Expenses
This is one of the important parts of this manual. Take a day or two to fully understand your
needs and expenses. Identify your current expenses and work out your short term goals and the
kind of expenses you would want once youve retired. But your target from now on is to have a
expense target that secures your financial freedom first. Once youve attained that, you can
slowly raise the bar and enjoy the more expensive things in life. Im not teaching you to not enjoy
life but to delay it just in the short term to enjoy later forever. Were blessed in Malaysia because
we live in a social free market that is those who work hard and smart can live a life of abundance
while freely going anywhere we want and practicing our faith and our own way of life.
First lets really understand the definition of debts or loans. Theyre the good loans and theyre
the bad loans. What are the good loans? Theyre money you owe to pay off an asset that earns
and gives you a return in the future. For example, housing loan is a good loan because youll sell
the house for a huge profit that is more than your interest on the loan. Also, if you take a personal
loan to invest in a business that returns higher than the interest you pay, that is a good loan. Then
theres the bad loans, which money you borrow just to pay off your expenses such as car loans,
furniture and electrical appliances. You wont get a return from the loan. Instead the asset
depreciates in value. But you need them anyway. You need that car but dont borrow money to
pay for a big car. Live within your means. Get the car that is suited to your current income.
So lets start moving with these steps :
Step 1 : Analyze your current expenses
Take at least one day or two to sit down and go through your receipts, your bank statements, your
credit card statements or even spend a day going to the grocery and putting a budget to how much
you really spend in a month. Use Excel to list all of them down and make sure you print them and
stick it on a wall. Lets categorize them as follows :1. Accomodation Youll need somewhere to live, eat and sleep while planning your financial freedom. This
should be a comfortable house and an affordable one at that. With streamyx and easy access to
groceries and your workplace. But dont kill yourself by trying to stay in Damansara Heights or
Bangsar. As long as you can easily perform all that has been taught in this manual, you should
be okay. And the number one thing is to BUY that first house. Use a loan and buy the house. I
will explain in the later chapter about real estate and why you need to do this. But get a
bank/company/government loan for that first house. If you are currently renting, please straight
away now try to get a place of your own. Many people would say I cant afford an apartment in
KL or Ill wait until I can afford that house and rent in the meantime. The more you delay, the
more it will cost you and the more difficult you are to be financially free. Well just let me show
you how to own your house within minutes by doing this simple exercise below :
Lets say your current rent is RM600 for a 3 bedroom apartment in Cheras. A 3 bed apartment
in Cheras/Bukit Jalil would normally cost around RM75,000 (including legal and MRTA). At
95% loan of RM 71,250 with cash downpayment of just RM 3,750 and with a loan of 6% per
annum ie. at BLR+1 for 30 years you should be paying to the bank at RM 427.18 per month.
With RM100 maintenance fee, you should already be saving RM 72.82 per month and just
imagine if you compound this in a unit trust earning 15% per annum, how much youll make in
18
3 years time. Lets not forget assuming that house prices increase by nearly 20% per annum. If
you sell this apartment in 3 years time now valued at RM 129,600 after deducting the principle
installments youve paid per month, you wouldve made a clean RM 64,600 by just deciding to
buy a house instead of renting. If its your first house, there is no capital gains tax. Ill explain
later on how to use your EPF funds to also profit from this. But for now lets assume your
monthly accommodation cost with cukai pintu will cost you about RM 550 per month.
2. Transport Well for financial freedom in 3 years time get a Proton and a used car if possible. A 3 year
old Proton Iswara 1.3 Aeroback cost just RM 24,559. Your monthly would be just RM 313.44
per month. Add in your annual insurance of RM 600 which works out to RM 50 per month.
Also, add in your car maintenance cost of RM 400 per year which works out to RM33.33 per
month. So everything all added up works out to RM 400 per month. Of course you can get a
motorbike, but still a car is still a necessity for groceries etc2, something you cannot live
without these days.
3. Petrol Lets allocate RM 160 per month for this. Again, plan your journey and use Bonuslink/Real
Rewards everytime. You may also want to go to work on a motorbike and to use your car only
for groceries or others. Up to you! You can save more on this.
4. Food & Groceries Again, buy bulk at Tesco/Giant or why not try the Tesco/Giant brand once in a while. Get a
big trunk, allocate a store room at your house and get a big fridge. This expense also includes
your gas cost and more. Also well include other costs such as tooth paste, soaps, etc2 into this
cost. You may one day try going out to the pasar and Tesco and start taking all the prices
down and know exactly how much you need in a month. If you eat in and carry a lunch bag to
work daily, lets assume a budget of RM 180 per month on this. This can be adjusted
according to your needs. Dont eat out. Take breakfast at home and bring a lunch bag to work.
This will cover your childrens expenses as well. Work out every single item you buy
monthly. For example :
Purchase Every Two Weeks (For consumption of a couple and 1 child)
No. Item
1.
2 Chicken
2.
Beef
3.
Fish
4.
Vegetables
5.
Bread
Total.
Amount (RM)
10.00
10.00
15.00
10.00
3.00
.
Amount (RM)
15.00
10.00
8.00
10.00
15.00
FIGURE 1.6
19
Also, before going to Tesco/Giant, set out your budget from your list of items to purchase.
You can use this as a control to check against any errors at the counter. Then, double check
your receipt again before going back home.
5. Handphone Charges Something you cannot live without these days. Use prepaid and sms a lot. Let others call you
instead. Get an IDD calling card if you want to call long distance or have a long chat with
friends. Try to just meet up with friends rather than calling. Make house visits more often.
Lets assume a monthly expense of RM 30 per month.
6. Telekom Fixed Line Charges You need this for emergencies. Pay the fixed rental of RM 27.30 per month. Again use cheap
calling cards if you need to call long distance. Allocate RM 30.00 per month.
7.
TNB Electricity Try going with electricity for one day and youd be crazy without it. Pay RM 25 per month
for this. Avoid using air conditioning and always try to save your energy bills.
8.
Water & Sewerage Allocate RM 30 per month for this. You cant live without it.
9.
Thats all youll need to spend to be alive and start making money. Now lets list them all down
and analyze them in more detail.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Expense Category
Accomodation
Transport
Petrol
Food and Groceries
Handphone Charges
Telekom Fixed Line Charges
TNB Electricity
Water and Sewerage
Internet Access Broadband
Total Necessities
FIGURE 1.7
Amount
per month (RM)
550.00
400.00
160.00
180.00
30.00
30.00
25.00
30.00
66.00
1,471.00
% of Spend
37%
27%
11%
12%
2%
2%
2%
2%
4%
100%
From above, lets work out further below to the other additional expenses you will have :-
20
No.
1.
2.
3.
4.
5.
6.
Expense Category
Total Necessities
Savings (assume RM 10 a day rule)
Insurance and medical
Leisure and Entertainment
Charity
Business Expenses for Skill 5 : Make It
Total Necessities
FIGURE 1.8
Amount
per month (RM)
1,471.00
300.00
80.00
100.00
50.00
100.00
2,101.00
% of Spend
70%
14%
4%
5%
2%
5%
100%
10. Savings
As discussed in the previous Chapter, set a target for savings on a 10 day rule. This is the
expense you will try to increase more if you get that pay raise. Everything else should be
maintained while you increase this further not decrease it.
11. Insurance and medical
This consist of your life insurance or medical insurance to cover you in case anything out of
the ordinary happens. Search for the best premiums you can get.
12. Leisure and Entertainment
You can try to control this. But this is still an important portion of your expenses. You still
need this. Perhaps a movie a month would be sufficient or buy a DVD a month. Also, your
holidays etc2. Limit your entertainment expenses to a certain amount.
13. Charity
Dont forget to give! Your mosque, your church, temple, the needy etc2.
14. Business Expenses
Youll learn that you need to allocate some money in order to make more other than your
day job salary. For example, buying this manual is one example.
Step 2 : Organise Your Expenses
Setting up a filing system is simple. Just get 14 manila folders and number them 1 to 14. At the
end of the day, quickly file your categorized expenses. At the end of the month, balance your
accounts, list all your expenses and your revenue. Thatll leave you with your surplus money.
Step 3 : Compare and Improve
After each month compare your actual expenses against your budgeted expenses and see where
the gaps are and improve on weaknesses in your spend.
Step 4 : Expense Target
So with that, your current job must at least give you a monthly salary after taxes and EPF of RM
2,100 per month. If you cannot reach this together with your bonuses you can either cut some of
the expenses like leisure or transport down. But please dont cut your savings. That should be
your priority number one in your spending plan. If you still cant, then try to move to another job
that can pay you to sustain that. Ill talk more about short term job requirement and security in the
next chapter.
21
Again, if you are currently earning more than RM2,100 per month or perhaps far more, than
allocate the extras into savings until you achieve your financial freedom in 3 years time. By that
time you can perhaps start increasing your luxuries but always sustaining lifetime financial
freedom in the process.
Also please do not try to utilize Skill 5 : Make It to just meet the RM 2,100 per month expense
target. Your day job must be able to cover your overall expense. All the money making methods
Ill show you later should be on top of this. If you follow this closely you will get that retirement
in 3 years time.
You may think its almost impossible with your education background to get a RM 2,100 per
month from a day job. Well, I can easily give you an example, a clerk in a KL private firm can
earn as much as RM 1,600.00 per month with 2 months bonus. Thats about RM 1,900 per
month. If you adjust a bit on your expenses, you could easily meet that. If you combine with your
spouses income, this target is can be easily achieved. Furthermore, remember that those earning
RM 2,500 and below are not taxable. Again, if youre earning way more, than you have nothing
to worry about.
Step 5 : Use Credit Cards
Yes, I earlier said throw your credit cards away and leave only one somewhere safe. But there are
so many advantages of using credit cards to achieve your financial freedom and as a utility for
you as well. Only problem is people misuse this facility and either use it to overspend beyond
their means or being late in their payments and get charged late fees for no reason. I say make use
of credit cards but make sure you pay the full amount every time and dont procrastinate to the
last minute. Pay your bills as soon as you get the statement so that you are sure to pay them.
Make also a post dated check to make sure you pay not too early but just in time before its due
date. This way youll earn some interest on your savings/current accounts. You need discipline to
the extreme when using credit cards. Keep it in a safe vault somewhere, after youve planned
your purchase, take it out and use it than keep it into the safe vault again. Dont leave your credit
card in your wallet. Also, dont use your credit card when someone wants to charge 3% to you for
using it. Its actually against the law, and simply just ignore them.
Here are the advantages of using credit cards :
1. Earn points
Everytime you use your credit card, youll earn points on them. The points is the
same of the ringgit amount you spend. So for example, you buy your groceries every
month worth RM 180 using your credit card. Youll get 180 points already. Your
petrol budget is RM 160 a month, thats 160 points already. Your TNB bills,
Telekom bills, Insurance premium, Handphone bills and more all get points
everytime. For example, monthly you get 571 points. In a year you should be getting
6,852 points just for choosing your credit card instead of paying cash. Normally,
annual fees are free for the 1st year. So you can actually use the points you gained for
fee waiver. For example, for HSBC credit card, you get a fee waiver for 7,000 points.
That means now if you collected anything above that youll get some more things in
return. If you used your card to purchase furniture etc2, you might get the chance to
go on holidays with the points. For example, 11,000 points can get you a RM 50
voucher at MPH Bookstores. Thats like free money already! So make sure you use it
everytime you spend.
22
23
you have not a single sen in your savings to pay for the appliances. Since youre just starting off,
start small first. Lets go one by one by sequence of importance :
1. Window and door grill - this looks like a necessity these days. If youre staying in a 3 bed
apartment, should cost you about RM 500 to have them installed. Plus, you have security
so you dont have to go overboard with this.
2. Lighting and fan - dont go overboard. Just install the necessary. Allocate RM 200 for
this.
3. Kitchen cabinet with gas stove - Buy a mobile kitchen with a stove from Tesco. Overall
will cost you RM 200.
4. Washing machine - Cheap one cost just RM 200 non automatic.
5. Refrigerator - Cost about RM 600.
6. Living room set - Buy the cheap set of RM 600 where youll get the TV cabinet, 2+3 sofa
and a coffee table. In fact you might not need this yet, until you make money via my
methods.
7. Bedroom set - Theres one bedroom set that will cost you just RM 800.
8. Office room set - Quite important, because you need this in order to operate your
businesses etc2. Buy a set at Macro would cost you around RM300 that comes with a
study table, study chair, cabinets for filing and a computer table.
If youre starting off, you can move into a 3 bedroom apartment fully complete for just RM
2,800. You dont have to pay all these in one go. You can slowly work on these. As time goes
by and you start making money from the businesses I teach you here, you may want to
upgrade a little. Perhaps you can now afford to install a real kitchen cabinet. Or change to a
bigger refrigerator or get an auto washing machine.
Now that youve analysed your expenses and startup cost for your furniture, electrical appliances,
computers and more, youll definitely need a day job to cover all these in the short term. Lets
move on to the next chapter to cover this.
24
CHAPTER 5
Short Term Job Requirement
Whatever you think, getting a job is the most important thing to start things off with. But do not
treat your job as the final solution. Your job is simply a temporary solution for you to meet the
end. Your end game is the goal to achieve full financial freedom and retire in free with nobody to
report to and no worries about meeting your next months installments etc2. Treat career
development as a training opportunity for you.
History of Employment/Jobs
Nobody knows exactly how jobs or employment got started. But I have a theory and Im sure
youll agree with me. In the past, man used to collect food and hunt on their own. Then they
started to discover farming and fishing. Then someone who was much stronger and powerful
decided theyll provide protection for the weaker in exchange for them serving the master. As
times goes by the stronger gets more stronger while the weaker gets more comfortable and start to
forget that he doesnt really need that protection. So the system evolves to a more modern version
today. You feel comfortable having a job security and if possible dont want the hassle or risk of
obtaining your financial freedom and therefore sleep for the rest of your lives. Im not saying you
are weak for having to go to work for someone or they are exploiting you. It works both ways you
need them for now, they need you because youre willing to follow their system. Therefore, your
strategy is to temporarily work with the system but fully concentrating your efforts to achieve
FULL FREEDOM as your set target time. Let me explain the benefits of having a DAY JOB.
1.
2.
3.
4.
5.
6.
25
Using this powerful tool call EPF, I will teach you how. That is for now, unless the
government decides to change anything. So keep up to date with the latest laws on your
EPF. Ill explain later in the Chapter 8 on Real Estate the many ways you can use
Account 2 of your EPF to get your home. But for now let me explain the basics of EPF or
KWSP because I know many out there dont know exactly how it all works. The law can
change anytime, whatever I tell you now might no longer be true. So check out their
website at http://www.kwsp.gov.my
What is Employee Provident Fund (EPF)?
It is a forced saving scheme by the government for private sector employees so that you
and I can have a lump sum nest egg or a big sum of money at our retirement age, ie. in
Malaysias case its 55 years old for now! It is grand scheme indeed and I fully support
it for your retirement age. But there are some loopholes in there where you can fully
make use of for your early retirement.
How it works?
Every month your employer is suppose to deduct 9% of your salary into EPF. So for
example, if your salary is RM 3,000 per month. Every month RM 270 is deducted into
your EPF. And if your bonus is two months salary then from your bonus of RM 6,000,
RM 540 is deducted into your EPF. This deduction is tax free up to the amount of
RM5,000 per year.
Then your employer is suppose to top up another 12% salary into your EPF. Therefore, if
your salary is RM3,000 per month, your employer will need to provide RM 360 per
month into your EPF by law. On top of this, your employer might decide to add another
percentage over this into your EPF. Some employer can go as high as 5%. However, lets
assume your employer decides to add another 3% into your EPF, from a salary of
RM3,000 per month that should be another RM90 per month. So in summary it would
look like below :Assume your monthly salary is RM3,000
No.
1.
2.
3.
Details
Your salary of 9% is deducted from your salary
Employer top up required by government of 12%
Employer provides additional 3% (not required by government)
Total per month going to your EPF
FIGURE 1.9
Amount (RM)
270
360
90
720
So every month RM 720 is going to your EPF. You also get a dividend of 4.5% pa* over
this. (*Dividend changes from year to year) Lets see what happens in a year with an
assumption that your salary is RM3,000 per month with a dividend of 4.5% per annum.
Also assume youre getting a two months bonus at the end of the year ie. in December.
26
Month
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Total
FIGURE 2.0
Dividends (RM)
29.70
27.00
24.30
21.60
18.90
16.20
13.50
10.80
8.10
5.40
2.70
178.20
So at the end of the year you should be getting RM 10,080.00 plus RM 178.20 of RM
10,258.20.
Make sure you track exactly whether your employer is contributing correctly into your
EPF. Many employers have been known to be quite slow with this. The employer can get
fined or even a jail sentence for not complying to the law regarding this. So you go to
your nearest EPF to check your balances. But thanks to the wonders of Internet, you can
now check your balance online at http://www.kwsp.gov.my. Register yourself and get a
userid and password for this. So every month while doing your bills, you can just have a
quick look whether your EPF has been contributed on time, or give your employer a kick
in the but. You can tell the Personnel guy horrific stories about employers who go to jail
for not contributing to their employees EPF. If they are still not contributing, better just
find another job.
Okay, now lets see how much youll get in three years. Lets assume 2004 is Year 1 and
2005 is Year 2 and 2006 is Year 3.
Year 1
Month
Balance from previous years
JAN2004
FEB2004
MAR2004
APR2004
MAY2004
JUN2004
JUL2004
AUG2004
SEP2004
OCT2004
NOV2004
DEC2004
Total
Dividends (RM)
0
29.70
27.00
24.30
21.60
18.90
16.20
13.50
10.80
8.10
5.40
2.70
178.20
27
Year 2
Month
Balance from previous years
JAN2005
FEB2005
MAR2005
APR2005
MAY2005
JUN2005
JUL2005
AUG2005
SEP2005
OCT2005
NOV2005
DEC2005
Total
Dividends (RM)
461.62 *
29.70
27.00
24.30
21.60
18.90
16.20
13.50
10.80
8.10
5.40
2.70
639.82
Year 3
Month
Balance from previous years
JAN2006
FEB2006
MAR2006
APR2006
MAY2006
JUN2006
JUL2006
AUG2006
SEP2006
OCT2006
NOV2006
DEC2006
Total
Dividends (RM)
944.01 *
29.70
27.00
24.30
21.60
18.90
16.20
13.50
10.80
8.10
5.40
2.70
1,122.21
So at the end of the third year, your overall balance in EPF is RM 32,180.23. Now this
amount will be divided intro Three Accounts as explained below :No.
1.
2.
3.
Details
Your Final Balance in 3rd year
Account 1 (60%)
Account 2 (30%) *
Account 3 (10%)
Amount (RM)
32,180.23
19,308.14
9,654.07
3,218.02
* so the amount of RM 9,654.07 in Account 2 can be taken out to clear/reduce of your housing loan in 3 years
time.
FIGURE 2.2
This concept will be explained in more detail in the Chapters ahead covering real estate
strategies. In summary, you can take out Account 2 amount of RM 9,654.07 to reduce
your housing loan before you sell it for cash. The strategy is leave this amount in a unit
28
trust that can earn you at least 20% dividends than the one offered by EPF. You can also
actually take out some amounts from Account 1 and dump into a unit trust. But again,
you can only withdraw this amount at retirement age. What were teaching in this manual
is for you to enjoy your retirement in 3 years time. I wont spend time explaining what
other amounts you can take out. Just go to your local EPF office and ask all the silly
questions you want. Its totally free consulting over there. They have a motto to serve
customers there.
7.
8.
9.
10.
So enough proving why you need a day job. Its quite clear already. However, you need not
worry too much about increments or bonuses or the office promotions. Because your purpose
being there is for the above only. Preparing to get your full financial freedom in 3 years time.
Youll just go to be patient for awhile until then. So enjoy your work and give the best you can
give and earn your ringgit working there. Make sure you give value to your employer but dont
expect much from them. Though pay raise and bonuses helps in terms of building your nest egg
in savings and EPF, your number one strategy is to build up your outside businesses which will
pay you sometimes ten times your salary and are residual income. Your day job salary is just to
pay your necessity expenses as in Figure 1.8 of RM 2,100.
29
What if your salary cannot meet the above target and you are totally expandable. If the company
decides to layoff, youll be amongst the first to go. Even if you go out to market, nobody wants
you. The trick to this is to create value for the company to hire you. Companies hire employees so
that the company can make profits yearly. So each staff has a contribution to make to the bottomline. No company in this world would hire you for no reason whatsoever. Its always the bottomline that matters. If they start to see you no longer can contribute to their bottom-line, theyll try
to find a way to boot you. Heres some tip for you to at least improve your salary and make
yourself more marketable outside :
1. I assume if you arrived here, you should be good in English. Try to improve further on your
English language. Perhaps some speaking courses to improve your pronunciation etc2.
2. Make yourself as skillful as possible. Go to trainings, computer skills training, SAP, Words,
Excel, negotiation skills and more. Go to as much as training as you can and always demand
a certificate. Go and see HR and your boss and demand for more trainings.
3. If you cant get enough company training, try going to trainings on your own and demand the
certificate.
4. Ask your boss for a pay raise and if cannot ask what needs to be done to get it.
5. Come to work early and dont go back that early.
6. Attend all meetings.
7. Always put a cheerful face and be enthusiastic about things eventhough you dont feel like
itpretend!
8. Update yourself, go for a part time diploma or part time degree or part time Masters. Go for
another 2nd diploma perhaps.
9. Learn a second language like Mandarin or French.
10. Try to speak up more in meetings eventhough youll sound stupid as long as youre seen you
should be okay.
11. Update your resume and ask for friends advise regarding it. Include all your training,
diplomas certificates. Send them out just to test the market.
12. Make yourself more presentable, looks, hair, dress and more.
13. Make friends with head hunters and recruitment agencies.
14. Read the classifieds everyday eventhough youre not really looking.
15. Even if youre not really looking, go for interviews to train yourself.
Ive explained why you need a day job, but wouldnt it be okay if I worked all my life and get
those annual increments and bonuses and my EPF might be worth 1 million ringgit someday
when Im 55 years old basing on the compound interest. If you bought this manual, obviously you
must really believe that you want financial freedom fast. Just in case you start believing a DAY
JOB is good from my points above, heres why you cant rely on a day job security :
1. DAY JOB is bad because LIFE IS NOT FAIR
Life is simply not fair, if you leave your future on other peoples hands then something might
happen. If everything is always fine, then they wouldnt be having a HR dept with lots of
people just to deal with you wouldnt they?
2. DAY JOB is bad because COMPANIES GO BANKRUPT EVERYDAY
If you rely on a company for your whole life, just imagine what would happen if your
companies go under. In this day of globalization, companies whether they are Fortune 500 or
just your crony backed company like Renong can simply collapse overnight. The easiest
examples being Enron and Arthur Anderson. Arthur Anderson used to be the most prestigious
accounting firm in the world with nearly 100 years of experience. Who wouldve imagined
theyll fold up that quick and start laying off their employees overnight. Just imagine your in
30
the finance department of Enron and get laid off. Would any company in their right mind hire
you? Eventhough its nothing to do with you. Its just that. It will take you sometimes 6
months to 1 year to get rehired back into the system. What if youre so specialized that nobody
in the industry would hire you. Then, youll need to go back to school and learn some new
skill to get hired right from the bottom. What if your house and car currently eats up your
salary by almost half as they normally do. Your savings can just last you another 6 months.
Thats when you start selling your home and car at dirt cheap prices. That is why making
money from real estate is one of the best ways to make an easy buck because theyre always
unlucky buggers like you wondering this earth. My brother last time was an overseas graduate
in Computer Engineering and got laid, took him nearly 8 months to find a job and that was
because he knew the chap who was to be his employer.
3. DAY JOB is bad because GLOBALISATION CUTS JOBS EVERYWHERE
Companies move location almost everyday. One day theyre in country. Then when costs start
rising, in order to compete theyll move elsewhere. Malaysia is an example. In the late 80
many companies like Motorola, Panasonic and others decided to locate to Malaysia because of
the low wages here. Then after 10 years they started realizing they can make more margin by
moving to China or Vietnam, within months all their employees were offered VSS and then
they moved on. Not only from the point of relocating but also globalization make certain jobs
more productive therefore, they need to cut off staff. Many companies who were also
previously very decentralized are centralizing with 1 job covering 4 or 5 countries whereas the
4 were either laid off or moved to some other job until being laid off.
4. DAY JOB is bad because of OFFICE POLITICS
Politics exist everywhere. Just because your colleague has a higher need to cover their expense
you become the victim. Or because the system doesnt allow you to be seen, youre seen as
though unproductive eventhough you meet your job targets or even exceed them and provide
the value to the company but certain people are using that for their own interest.
5. DAY JOB is bad because of PEOPLES GREED
Lets face it people are greedy. Therefore, the system is not perfect. Eventhough you may try
to do your job, but if someone else wants to meet their own targets theyll make use of you.
One good example is, your boss needs your support technically in his or her department.
However, there is another opening somewhere in the organization for a managerial position.
Your boss needs you, so hell make sure your promotion is slow or will not recommend you
until his or her needs are met first. You complain to HR, who will the HR hear first you or
your boss? This is typical anywhere!
6. DAY JOB is bad because BOSSES CHANGE
One day youre doing just right, next day youre the worst performer in the company. Things
can turnaround really fast.
7. DAY JOB is bad because IF YOU GO SICK, THEYLL KICK YOU OUT!
Lets face it, if you start falling sick or you start having family problems. Theyll start creating
something for you to leave the company. A company is there to make profits, they cant afford
to have someone sick in the workforce.
8. DAY JOB is bad because YOU HAVE TO WAKE UP EARLY!
On some days you simply dont have the mood to work and would be far more productive
working on another day. But youll still just need to show up for the sake of it. So on some
31
days youre basically not doing a thing at work. Some days youre too busy to even talk to
anyone. The system simply cannot recognize when you are productive or not.
9. DAY JOB is bad because YOU ARE NOT DOING WHAT YOU ARE GOOD AT
Most people are doing jobs they dont really like. A lot of people work simply for being in a
company because of the name and security it provides. Or simply just of the money or their
benefits.
10. DAY JOB is bad because of the NEED TO REDUCE COST EVERY YEAR
Just imagine, companies every year want growth in profits or revenues. While cost are rising
every year ie. employment costs, inflation, production costs and etc2, the company is
targeting to reduce cost by at 5% every year so that profits rise 10% yearly. Theyll start
working up some mambo jambo management approach and cut people, combine jobs and
force people to do more than what is possible. Sooner or later youre bound to get laid off at
this rate.
11. DAY JOB is bad because of BUREACRACY AND INFLATION
If youre a government employee than you have nothing to worry about with regards to
layoffs and retrenchments. But you have the bureaucracy to deal with regarding promotions,
pay rise etc2. And imagine this, inflation has been going up every year while a government
officer never gets a pay raise or a limited one at that. Just imagine if youre a school teacher,
at the start of your pay at 20 years old you would get around RM 1,000 per month salary. By
the time you retire at 55 years old, your salary would reach at most RM2,500 per month.
Thats a 50% increase. Inflation is about on average 2% - 4% per year. Lets assume an
inflation of 4% per annum due to other cost increase such as car, house, petrol and more. So
assume your expenses per month at the beginning of your career is RM 900. If you normalize
that, at the end of your career your expenses should already be valued at RM 3,551. Thats
RM 1,051 more from your salary during retirement. Assume you paid off your house and car
of RM900. Thats still not enough to cover your expenses. So have you seen the enormity of
the problem being in employment for life. After your retirement age, your pension is half
your salary at RM 1,250 per month. To sustain your necessity expenses of RM 2,651 per
month, youll need to work again after 55 years old to get a salary at least RM 1,401per
month until you die!!
But you may ask me, since youve shown me exactly how to make money part time, why not I
stick to my day job and continue making money part time until I retire at 55 years old. What Im
saying is you can retire in 3 years time and concentrate on what you love most in your life and
can allocate more time to better work on the money making machines Ill show you later. So the
9am to 5pm daily you can actually 100% concentrate to make way more money than you can ever
get from your day job. You might be making more money than your company CEO! No worries
about layoffs, company profits, globalization (in fact globalization is good for you) or even the
economy because the financial freedom Ill teach you should shield you against fluctuations of
the economy.
Need I say more? Then again, I might be preaching to the converted. So continue your efforts
going through this manual. Lets move on to the most important chapter in this Manual Setting
the stage to your early retirement.
32
CHAPTER 6
The Financial Freedom Goal : Setting the Stage
The only way to ensure 100% guaranteed FULL FINANCIAL FREEDOM is via CAPITAL
INVESTMENT. A lot has been said about residual income and making money from your home
as a means of FINANCIAL FREEDOM. But I believe that having CAPITAL and being an
investor as the only way to achieving financial freedom. You may tell me but I dont have capital
and even if I work for the rest of my life I still wouldnt have that much capital to sustain me to
eternity. Besides isnt being able to make money from home or earning residual income from
network marketing is having financial freedom. Well, put it this way if you fall sick in a month,
you will stop earning income. What if your network marketing company goes bust, whats going
to happen to your income. Just like big corporations like Enron and Arthur Anderson, MLM
companies can disappear over night. I believe you must make money via all these mechanisms to
BUILD enough CAPITAL so as to sustain you till death! So the objective of this manual is really
to learn to save and make money to build a huge sum of CAPITAL so that you become an
investor that can sustain you to eternity. But are there instruments in Malaysia that can give a
stable and safe returns that can sustain your monthly expenses forever. I will show you a few and
make comparisons between them. Some of them might be suited for others and some may not.
For Bumis they are many safe instruments such as ASB and Bank Rakyat. For non-bumis they
are the unit trusts and others. Method of achieving financial freedom consist of THREE basic
steps. They are :
1. STEP 1 : SUSTAINING YOUR FINANCIAL FREEDOM WITH CAPITAL.
2. STEP 2 : IDENTIFYING YOUR IDEAL RETIREMENT EXPENSE.
3. STEP 3 : HOW TO ACHIEVE YOUR FINANCIAL FREEDOM IN 3 YEARS.
Looks so easy. Lets go step by step :
STEP 1 : SUSTAINING YOUR FINANCIAL FREEDOM WITH CAPITAL.
1. SUSTAINABLE TOOL 1 : AMANAH SAHAM BUMIPUTERA (BUMI ONLY)
Provides you with security of your money up to RM 200,000. Returns between 9%-12% pa.
On average 10% pa. If you have RM200,000 invested, and your monthly expenses comes to
RM 1,500 per month you should be set for life! Check out Attachment 7.1 for example of
calculations.
2. SUSTAINABLE TOOL 2 : MEDIUM TO LOW RISK UNIT TRUSTS (ANYBODY)
There are many in the market. Your money is invested in combination of long term stocks and
fixed income securities such as bonds. Capital is unlimited with returns between 9%-20% pa.
Lets assume 10% pa. With RM 200,000 invested, and your monthly expenses comes to RM
1,500 per month you should be set for life! Exactly the same as Attachment 7.1 for example
of calculations.
3. SUSTAINABLE TOOL 3 : KOPERASI BANK RAKYAT (BUMI ONLY)
Gives 15% pa returns. Limited to RM 100,000 only. Can only withdraw in 3 - 6 months time.
If you withdraw every 6 months and put into another tool like ASB, you should be set for life.
If you have RM 130,000 (couple combined) invested and withdrawn every six months to be
put into ASB and your monthly expenses is RM 1,500 per month you should be set for life!
33
34
1
Jan-05
Feb-05
3
Mar-05
4
Apr-05
5
May-05
6
Jun-05
7
Jul-05
8
Aug-05
9
Sept-05
10
11
12
13
Oct-05
Nov-05
Dec-05
Jan-06
200,000
198,500
197,000
195,500
194,000
192,500
191,000
189,500
188,000
186,500
185,000
183,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
198,500
197,000
195,500
194,000
192,500
191,000
189,500
188,000
186,500
185,000
183,500
201,025
1,654.17
1,641.67
1,629.17
1,616.67
1,604.17
1,591.67
1,579.17
1,566.67
1,554.17
1,541.67
1,529.17
1,516.67
:
:
:
:
RM 200,000.00
RM 1,500.00
10% per annum
RM 19,025.00
RM 1,585.42
:
:
:
RM 201,025.00
RM 203,652.50
RM 206,542.75
201,025
Remarks
Therefore, if you have a capital of RM 200,000.00 invested in ASB which provides dividends of 10% per annum at the end of the year and you withdraw your monthly expenses of RM 1,500.00 every
month from ASB, your capital will remain fixed or appreciates every year. This appreciation of capital will reflect the inflation rates for those years.
Assumptions
1. Dividend is assumed at 10% per annum, however based on historical data it has been fluctuating from one year to another. The way to solve this is to combine your investments in many tools to
diversify your risks accordingly.
2. Your monthly expenses is assumed fixed at RM 1,500 per month. You will need the discipline to withdraw this amount at the bank at the beginning of the month just like taking your salary.
Legal Disclaimer
The author is providing estimates of returns based on certain assumptions and understanding of the current practices of Amanah Saham Bumiputera. The author will not be liable in the event that
there is a change to ASB practices regarding the above. The reader should obtain legal as well as financial advise from professionals and also from Permodalan Nasional Berhad regarding this.
35
36
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
FIGURE 2.3
So you see as above, if your monthly expenses is RM 3,000 per month, then youll need to put
capital of RM 381,000 into ASB.
STEP 3 : HOW TO ACHIEVE YOUR FINANCIAL FREEDOM IN 3 YEARS.
Now that youve seen how much capital youll need to sustain your ideal monthly expenses,
youll start to wonder how youll ever get RM 253,000 in 3 years time! In summary, youll need
to save a fixed amount of your salary to be invested into certain portfolios, and to sell your home
and buy a new one and most importantly make money from the many methods I will explain in
the later chapters.
Figure 2.4 will explain in detail. Lets assume your combined family salary is RM 3,000 per
month. Your ideal retirement monthly expense target is RM 2,000. Therefore, youll need to have
capital of RM 253,000 in three years time.
No.
1.
2.
3.
4.
5.
6.
Details
Balance brought forward (RM)
Dividends earned - 15% pa (RM)
Savings from day job salary (RM)
Second Income (RM)
Capital gain from sale of home (RM)
Total Accumulated Capital (RM)
FIGURE 2.4
Year 1
0
0
12,000
36,000
Year 2
48,000
7,200
12,000
48,000
48,000
115,200
Year 3
115,200
17,280
12,000
60,000
70,000
274,480
Year 4
274,480
41,172
315,652
So in early Year 4 after three years, youve managed to accumulate capital of RM 315,652
exceeding your target of RM 253,000. It sounds so easy, but let me explain every line above in
detail one by one :1.Balance brought forward (RM) : Balance of money accumulated brought from previous year.
2.Dividends earned - 15% pa (RM) : Current savings put into medium to high risk unit trust or
Bank Rakyat koperasi shares. Since this is for the long run, shouldnt be any problem investing
your savings into these kinds of wealth builders. If you are risk averse you can choose another
investment that gives lower returns. Dividend is on number 6 ie. total accumulated capital.
3. Savings from day job salary (RM) : As explained earlier, we assume you have combined salary
of RM 3,000 per month. With your overall expenses of RM 2,100 and with bonuses, you should
be able to at least save RM 1,000 per month or RM 12,000 per year. Im assuming this as fixed
savings but you can increase this further as you receive increments in salary.
37
4. Second income (RM) : I will show you in the later chapters how to make money from stock
investments, unit trusts, real estate, network marketing (MLM) and the Internet. With all these
streams of income, you can easily make around RM 3,000 per month. Then, as you get better
youll grow yourself to another RM 4,000 per month and then to RM 5,000 per month the next
year. Just like running a business, youll need to set these targets and go all out meeting them.
5. Capital gain from sale of home (RM) : As explained earlier in Chapter 4, your current home is
your income earner or capital builder as well. If you sell your current home and go out to the
market for another new house or the better term to use upgrade to another better home, youll
get at least RM64k out of it. If you withdraw your EPF Account 2, overall you can contribute at
least RM70k to your accumulated capital. Also, since its your 1st home, there is no capital
gains tax. Using real estate strategies, you go out to purchase a house below its real value.
6. Total Accumulated Capital (RM) : This will be your capital to use for your financial freedom.
GOALS TO SET FOR FINANCIAL FREEDOM
So now youve seen that you can achieve financial freedom in 3 years time with these easy
steps, your goals should be :1. To be in a job that pays combined salary of at least RM 3,000 per month for the next 3 years.
2. To save RM 1,000 per month or more from your day job for the next 3 years.
3. To setup multiple streams of income taught in this manual of RM 3,000 per month and more
for the next 3 years.
4. To invest all your savings into an investment that pays 15% per annum for the next 3 years.
5. To sell your home for a profit in 3 years time and move to a bigger house.
In the next chapters, you will learn how to make up the RM 3,000 per month and very interesting
investment tools to use as your money making machine.
38
CHAPTER 7
Investing in Stocks & Unit Trusts
A lot of people have turned overnight millionaires as well as overnight bankrupts just because of
the stock market. There are hundreds of books out there dealing with this subject and perhaps can
better explain this subject to you. My intention in this manual is just to give simple techniques
and also dummies point of view. Im not going to show you all the technical mambo-jambo or
detailed explanations of fundamentals or earning yield whatever. This is totally an idiots approach
but the sure fire approach!
For your information, youll be surprised to learn that 75 percent of all of the smartest money
managers in the world, working 20 hours a day, with huge research staff, powered by the most
advanced computers, have not been able to consistently beat the market. Of the remaining 25
percent, most were just able to keep pace with the market ( but if you factor in commissions and
fees youre still a loser). So basically you cant beat the market.
I wont give you some magical formula to win big with stocks. This chapter is about investing
some of your money for the long term and also make up your target of RM 3,000 per month.
However, you still make money on the stock market. Heres how to do it :Stock Market Art 1 : Investing Longer, Lower Risk
Easiest method and the laziest one. In the long run you will definitely win. Companies achieve
more and more profit every year. Inflation is going up. Companies become more and more
efficient everyday. They reduce staff and they use more technology. So pick a stock you think
well be there in the next 20 years. Allocate some of your money savings and purchase stocks
such as Maybank, Sime Darby, Telekom, Petronas, MISC, and etc2. Youll know they will be
there for some time and yes they will make profits more and more. The market will be volatile
and go up and down but who cares. All you know is the company will be there for quite sometime
until Malaysia achieve Vision 2020. Allocate perhaps about 20% to 30% of your savings and
choose long term. Yes, this sounds boring but its the most logical thing to do. If your share goes
down, so what? Youre keeping it for sometime. But if it goes up suddenly, make a killing right
away! Stocks goes on cycle of up and downs but generally stocks will go up!
FIGURE 2.5
39
FIGURE 2.6
The price trend for Nestle for the past 14 years above shows an upward move despite KLSEs
performance. The stock crashed a bit in 1998 during the KLSE stock crash but fast picked up later
on. Therefore, if you bought Nestle stocks in 1994 at RM 7 per share and sold it ten years later in
2004 at RM 22 per share, your returns would be 175% over your investments. Thats 39% higher
than investing in ASB at 10% pa for 10 years of 136% returns. At 3 year intervals, youll still get
to win if you chose any period of the cycle. And the best thing is you get dividends every year on
an average of 5%-10% per year. Well assume 4% per year for the past 10 years. So lets assume
you put RM 10,000 into a Nestle stock in 1994. If you sold it today in 2004, your investment is
now worth RM 27,500 plus average dividends per year of RM 600 totalling RM 6,000 for 10
years. Everything in, you earned profit of RM 23,500 from investment of RM 10,000 only. Thats
worth about RM 200 per month. Not bad with just an investment of RM 10,000! In case you
make a killing you can sell, else hold until it recovers. If you have put more into Nestle you
wouldve made more per month. This contributes to achieving your capital goal. Unless you think
people will suddenly stop drinking MILO in 10 years time, I think this counter is still safe.
Now, lets look at other stocks on KLSE, in the next page. These are the strong counters with
good fundamentals and all of them show upward trends for the past 10 to 20 years.
40
FIGURE 2.7
So your strategy should be to invest bits by bits of your savings into counters you think will still
be there for the next 10 to 20 years! And understand what their business is all about. You dont
want to invest in a housing developer who has limited land bank and has only one housing project
in his hands at the moment.
41
A unit trust can receive dividends from the stocks that it owns. Dividends are shares of
corporate profits paid to the stockholders of public companies. The fund might have
money in the bank that earns interest, or it might receive interest payments from bonds
that it owns. These are all sources of income for the fund. Unit trusts are required to hand
out (or "distribute") this income to shareholders. Usually they do this twice a year, in a
move that's called an income distribution.
At the end of the year, a fund makes another kind of distribution, this time from the
profits they might make by selling stocks or bonds that have gone up in price. These
profits are known as capital gains, and the act of passing them out is called a capital gains
distribution.
Unfortunately, funds don't always make money. If the fund managers made some investments
that didn't work out, selling some investments for less than the original purchase price, the fund
manager may have some capital losses. The good news is that these losses are subtracted from the
fund's capital gains before the money is distributed to shareholders. If losses exceed gains, a fund
42
manager can even pile up these losses and use them to offset future gains in the portfolio. That
means that the fund won't pass out capital gains to shareholders until the fund had at least earned
more in profits than it had lost. (Although you might want to reconsider your decision to remain
invested in a fund that's losing money if the rest of the market is growing).
Advantages of Unit Trust
Diversification. A single mutual fund can hold securities from hundreds or even
thousands of issuers, far more than most investors could afford on their own. This
diversification sharply reduces the risk of a serious loss due to problems in a particular
company or industry.
Professional management. Few investors have the time or expertise to manage their
personal investments every day, to efficiently reinvest interest or dividend income, or to
investigate the thousands of securities available in the financial markets. They prefer to
rely on a unit trust's investment adviser. With access to extensive research, market
information, and skilled securities traders, the adviser decides which securities to buy and
sell for the fund.
Liquidity. Shares in a unit trust can be bought and sold any business day, so investors
have easy access to their money. While many individual securities can also be bought and
sold readily, others aren't widely traded. In those situations, it could take several days or
even longer to build or sell a position.
Convenience. Unit trusts offer services that make investing easier. Fund shares can be
bought or sold by mail, telephone, or the Internet, so you can easily move your money
from one fund to another as your financial needs change. You can even schedule
automatic investments into a fund from your bank account, or you can arrange automatic
transfers from a fund to your bank account to meet expenses. Most major fund companies
offer extensive record keeping services to help you track your transactions, complete
your tax returns, and follow your funds' performance.
Tax Free. In Malaysia, approved unit trust are tax free. So the capital gains and
dividends are tax free. (Please check to confirm with a tax consultant or your agent before
proceeding with purchase of the unit trust.)
43
company stocks tend to be a little riskier than big stocks. But here's the good part -- another funny
thing about small stocks is that they tend to do well when big stocks are doing lousy, and vice
versa. So if you own big and little companies in you portfolio, over the long-term, things will
more than balance out in your favor. Do this by buying a small cap stock fund.
Put it all together. Large cap stock fund. Small cap stock fund. Large cap international fund.
Divide your portfolio into three and put a third in each. Now you've got a diversified portfolio in
which at least one sector will be doing okay (or better than okay) nearly all of the time.
Avoid overlap. Sometimes people think that if one large cap fund is good, two or three are better.
When you buy several funds of one type, more likely than not you'll just end up owning roughly
the same set of stocks. Not only will you probably not increase your overall returns, you'll create
more work for yourself by having to track additional funds. Choose one good fund of each type in
your portfolio and, as long as they continue to perform well, stick with them.
Avoid bond funds. If you have five years until you will withdraw your investment (like for
retirement), then bonds might be appropriate for perhaps 10 to 20 percent of your portfolio, and
increasing to perhaps 40 percent (at most) when you are at retirement age. The problem that most
people have is that they think bonds are "safe" -- but bond returns are still volatile, and will give
you a lower rate of return than stocks over time.
Categories of Portfolios
Large-Cap Funds - Large-capitalization funds generally invest in companies with large market
values. As you can see from the applet at the right, large-cap funds are less volatile than funds
that invest in smaller companies. Usually, that means you can expect smaller returns.
Mid-Cap Funds - As the name implies, these funds fall in the middle. Not large caps, but not
quite small caps, either. The stocks in the lower end of their range are likely to exhibit the growth
characteristics of smaller companies and therefore add some volatility to these funds. They make
the most sense as a way to diversify your holdings.
Small-Cap Funds - A small-cap fund will focus on companies with a low market value. The
volatility of the fund often depends on the aggressiveness of the manager. Aggressive small-cap
managers will buy hot growth and technology companies, taking high risks in hopes of high
rewards. More conservative "value" managers will look for companies that have been beaten
down temporarily by the stock market. Value funds aren't as risky as the hot growth funds, but
they can still be volatile. Because of their volatility, small-cap funds require that you have enough
time to make up for short-term losses. And as we saw during 1997 and 1998, there are times
when the market turns away from small-cap companies altogether for extended periods. (Large
caps have taken the spotlight lately due to extreme volatility in the markets; small caps,
meanwhile, have floundered.) But that's no reason to abandon these funds. History would indicate
that small companies will eventually regain favor as markets settle down. And when they do, they
will likely grow more quickly than their larger cousins -- which can provide a good kicker for
aggressive investors who need to build as much wealth as possible while they're young.
Bond Funds - Though it may sound that bond funds are quite stable and slow in returns. But not
necessarily the case. In the long run, small caps might be even more stable.
Below is an example of how you can balance your portfolio into many types of funds.
44
Percent of Investment
50%
10%
20%
10%
10%
100%
ALLOCATION OF FUNDS
Just giving you an example of Prudentials list of funds for offer. Please do your own research on
this. There are many funds you can choose from Public Bank, BCB, Maybank, Standard
Chartered and more by just going to their website. You can also get an agent to call you to
explain. This is just giving you an example from information obtained from their website
http://www.prudential.com.my as of 28 April 2004. You can check this all at the website
yourself. It is not the intention here to promote you the fund but just to give you an example only.
There are more funds, only these few were highlighted here as examples.
Fund Names
PRUdana dinamik
PRUdynamic fund
PRUsmall-cap fund
PRUgrowth fund
PRUbalanced fund
Investment Objectives
Seeks to provide capital appreciation by
investing in equity and equity-related
securities conforming with Syariah
principles.
Seeks to provide capital appreciation by
investing in a diversified portfolio of
equity and equity-related securities; for
defensive considerations, will invest in a
mix of equities, debentures and money
market instruments depending on the
short-term and long-term market
outlook.
Seeks to provide higher capital
appreciation by investing in investments
which have the potential of substantial
value appreciation. Based on Adjusted
Kuala Lumpur (KLEMAS).
Seeks to provide high capital
appreciation by investing in investments
which are undervalued and have good
growth potential. Based on Kuala
Lumpur Composite Index (KLCI).
Seeks to provide capital appreciation
and meaningful level of income by
investing in both equities and equityrelated securities and fixed income
instruments. Based on 50% KLCI +
50% 12-month Maybank Fixed Deposit
Rate.
New Fund
New Fund
66.97%
57.91%
43.38%
45
PRUbond fund
PRUcash fund
1.24%
NA.
* Please read the prospectus before investing. The returns given are just past performances and do not guarantee your
returns for the future.
FIGURE 2.9
Ive parted to you so much information to start with. Where should you start. These are the things
you can start doing :
Step 1 : Decide on an agent and the unit trust
Step 2 : Take 20% out of your EPF Account 1 into small caps funds for the future just to start you
familiarizing with unit trusts.
Step 3 : Decide on allocation of funds based on risk. You may decide to allocate on how I
explained to you in Figure 2.8. Decide an allocation you are most comfortable with. It will also
depend on the market. You may just allocate just a portion of your savings into unit trusts.
Step 4 : Buy the unit trust. Perhaps every month put portions of your savings into selected unit
trusts.
Or you can try on the Amanah saham. Some are fixed priced like ASB for Bumi only. Some like
ASN, where price fluctuates.
There are also the foreign mutual funds. If you have the balls and money to play, then allocate
some of your money for this. But again its risky, ts taxable and youll have to move money to
offshore accounts via very creative methods first!
Happy investing!
46
CHAPTER 8
Real Estate : Key Ingredient to Financial Freedom
My favourite topic of them all is real estate. Why? Because I know this is a sure fire method in
achieving your financial freedom goals. I guess maybe some of you might have gone or read
Azizi Alis books and seminars about how make it in the real estate. Well, Ive never been to his
seminars but I know for sure youll make a killing here. Robert Kiyosaki talked so many times
about how he made it from real estate. In this Chapter, I will talk in general about real estate in
Malaysia. The next chapter will concentrate mainly on how to make a quick killing through real
estate auctions. I suggest also, apart from below read Azizi Alis books, a lot of good tips there on
how to become good landlords and etc2.
Why Real Estate?
Its pure economics and mathematics. People simply need a place for shelter, no matter how old
the building is. Just like you and me, we want to build our own heaven in this world for our
families. Its human nature. We want shelter and would devote our entire salary just to pay our
mortgage in order to buy a home. If we cant buy, well rent. Sometimes families will go to
unreasonable logic just to own a home. We can see many example amongst us, families not
having enough income will go all out just to own a big home to house their families. Population
of humans in this world are growing at an exponential rate, ie. at mind-boggling numbers. Just
look at Malaysias population, our population was 8 million in the year 1985. Now it has grown
to almost 25 million people in nearly 2 decades. Thats almost 213% population growth in 20
years. Law of exponential growth says it will grow to almost double that in another 20 years time.
So, maybe in 10 years time, our population will grow by another 200% or more! If you look at
urban areas like Kuala Lumpur, JB and Penang, populations there are increasing at a bigger and
faster rate than the national average. There are huge migrations from the rural areas to the urban
areas like Klang Valley, JB and Penang. This is due to many factors such as availability of
employment, better infrastructure and education and more. Now, heres the story, land is fixed.
Land is limited, it doesnt grow at the same rate as population. In fact, it never grows. Because of
that, economics say if demand outstrip supply, prices will have nowhere else but to go up. A
house in the slum areas will go up anyway in 20-30 years time, because people need to find a
place to stay. To top this all, there are the inflation rates to deal with. There are pressure on prices
of raw materials and labour. So, you and I know if you didnt buy a house in an area, the price
would start to go up the next year already and youll be paying another price already. Even if the
location is far away from the city centre, people will be forced to live there sooner or later and the
city will grow and reach those places one way or another. Who wouldve thought Subang is
somewhere you would stay 20 years ago. So are you convinced now? So there are two main
activities with regards to real estate investment, one is Buying and the other is Selling.
PART 1 : BUYING YOUR REAL ESTATE
Motivated Sellers
Now that you are convinced, you may ask how I can get ahead? I dont want to wait another 20
years to become financially free. The answer is youll need to buy the property lower than the
market value. The secret of buying properties creatively is to look for people who are desperate
and seeing whether their property has value. There are many motivations for selling a house. The
ones that you are looking for are the highly motivated ones which consist of 1% of the sellers in
47
the market. There are many reasons for selling, among others divorce, property needs fixing up,
negative cash flow, transfer, arrears in payment, negative location, taxes, deaths, retirement, out
of area owners, needs capital for another investment, sickness and many more. These are the
people with personal problems which you can actually help buy purchasing their properties.
These are the kind of seller you want to find.
Finding It
Kiyosaki said he goes through 1,000 leads one by one and narrows down until he finds the real
estate he wants to get. Use newspaper classifieds, real estate agents, wandering around, your ads,
etc2. There are four steps to follow :
Step 1 : Find the lead. Scan through the papers. Youre bound to find one. You look in an ad and
see the words urgent sale, owner leaving country. Every morning go through entire ads and
identify those you think are the motivated sellers and perhaps prices are below the market value.
Step 2 : Call the seller and ask for information mostly on why selling. If you can get a seller
whos willing to sell below market for a quick sale. You can ask these questions :i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
You shouldnt straight away negotiate with the seller over the phone. Do some calculations first
and determine whether its undervalued. You can see the classified and see the prices of the area
and jot down houses in the area first. If youve made a decision to visit, make sure you call
houses in that area and prepare visits to those as well. What the hell, since youll be around the
corner. So, rush to the house and inspect and just reconfirm again with the seller facts discussed
over the phone. Things you need to check out can be access roads, facilities, shops, racial mix of
the area etc2.
Then, youve found your jackpot. Now, youre ready for the next step.
Step 3 : You make your offer. You can either go down all the way on his offer or you can do
some calculations on his settlement amount. If his settlement amount is much lower than the
offered price, try moving to the settlement amount or lower. If settlement amount is higher and
the seller is willing to fork out money to settle the loan, than target anywhere between first offer
and closer to settlement amount is quite good. You will need to also see whether you need to do
renovations on the house later on.
Step 4 : Buy the property. This is when you sign the Sales and Purchase Agreement (S&P). Get
your own lawyer because buyers are suppose to supply the lawyer. If you do not wish to take a
48
home loan, you can be more creative by paying interest on late payments after a certain period
lets say 3 months. The S&P can be crafted to such an extent in benefits both seller and buyer.
Category of disposal
Disposal within 2 years
Disposal in 3rd year
Disposal in 4th year
Disposal in 5th year
Disposal in 6th and subsequent years
Companies
%
30
20
15
5
5
Exemptions from RPGT is available under the following circumstances (some of the exemptions
only) :
- an amount of RM5,000 or 10% of the chargeable gain, whichever is greater, accruing to an
individual;
- gain accruing to an individual who is a citizen or a permanent resident in respect of the
disposal of one private residence;
- gain arising from the disposal of any chargable asset from 1 June 2003 until 31 May 2004.
Therefore, youll get exempted for one property in your lifetime from RPGT, so make one BIG
killing out of this.
OPTION 1 : EASY MONEY FAST SELL
The day you signed the S&P is the day you advertised the house for sale either through the
papers, agents, the net and whatever other methods. If you really want to be sure of the value to
sell, you can do a valuation on the house for RM 1,000 perhaps. The S&P can be crafted in such a
way you pay upfront 10% cash as first installment. And the rest to be paid in 4 months time.
Therefore, the seller will still be paying his mortgage for the next 4 months. In the event you are
late in selling, you pay a late penalty of 6% per annum on the rest. Therefore, the home owner
will not bleed in the meantime. So you have perhaps the time of 6 months to sell the house now.
You pay the 6% late penalty just to buy time. For example, you and the seller agreed on RM
200,000 as the buying price. You pay the seller RM 20,000 as 10% downpayment. You also bear
the RM2,000 legal fees and RM1,000 stamp duty. So now you have 4 months to find a buyer or
else pay late penalties. Lets say it took you 6 months to find a buyer. The market value is
actually RM 300,000 and you managed to sell it at that price. How much will you make :-
49
Purchase price
Legal Fees
Stamp Duty
2 months late penalties
Cost of advertising
Total Cost
Selling price
Gross profit
Less 30% RPGT *
Net Profit
Cash as capital
6 months return on capital
RM 200,000
RM 2,000
RM 1,000
RM 1,600
RM
600
RM 205,200
RM 300,000
RM 94,800
RM 28,440
RM 66,360
RM 25,200
263%
If you can do this again in the next 6 months. Your profit for the year would be RM 132,720.
Thats equivalent to monthly salary of RM 11,060.00! All you need is cash capital of RM 25,200
and some time to run around and making calls. Do you need to work everyday 8 to 5 for this. I
dont think so!
OPTION 2 : PROFITING FROM OTHER PEOPLES MONEY (OPM)
What I like about real estate is banks are willing to give you money to buy houses so that you can
profit out of it. This is when you fund the purchase with a home loan from the bank. If you have a
good record with stable income, you should be able to process the loan in 2 weeks time. Basically
you can purchase the home with loans and hold for some time before selling or even sell it
immediately. Your terms should normally be 10% cash for downpayment, then the rest financed
with bank loans. What I like about this is the high returns you get from selling real estate from
OPM (Other Peoples Money). Your returns should be from the downpayment youve put it ie.
the 10% you put in. Let take an example, you want to purchase a RM100,000 apartment in KL
which you got for a bargain. You put RM 10K for downpayment. Lets assume there is no
stamping fee, legal fees and MRTA. You resell it to the market again at RM 140,000. So you
made a profit of RM 40,000 out of RM10,000 youve invested in 2 years time. Thats about 400%
returns or 56% per annum. This is perhaps the best investment you can put your money in!
However, there is a catch, your installments is limited between 25% to 40% of your entire
household income. So pick only the best real estate you can get your hands on and get them on
bargain.
OPTION 3 : BUY AND HOLD WITH OPM
The safest and the best strategy is to buy with a loan and hold until you can sell at the best price
you can get out of the market. Meanwhile, you rent your property to someone else to look after
for. Lets say you buy an apartment for RM 100,000 in KL. Your downpayment is RM 10,000.
Therefore, for a loan of RM 90,000 your monthly installments should be around RM 540 per
month. A three bedroom apartment is normally rented at RM 600 RM 700 per month. Lets say
with service fee of RM 100, you make a clean RM 100 per month. At the end of the year, you do
some maintenance on the house, this way youll save on taxes as well. Therefore your loan is
fully serviced by rentals and you have extra money for maintenance. Again, in two years or three
years time you sell at RM 140,000 youll make RM 40,000 out of your RM 10,000 invested.
Wasnt that easy?
50
51
neighborhood, almost that kind of location if you really looked hard and bargain using the
techniques and strategies I mentioned earlier in the Chapter. The secret lies in the home loans.
Where else can we get people to loan us money at such a low rate of sometime BLR minus one! It
means we have the opportunity to actually get loans at low rates for example at 6% per annum
with no guarantors or any other backing easily but with just your salary slips and income tax Jforms and invest this in unit trusts or other real estate venture that might give us returns of more
that 20% pa. Or that money can provide us the financial freedom to cover all our necessity
expenses so that we can pursue our interest and make more money than we have ever dreamed
before. Lets say you bought your house for RM 350,000 with 100% loan at 6% pa of 30 years
and assume that you start paying in full already. In the second year before completion, someone
comes and offer you RM450,000 for the house. That means you make RM 100,000 plus RM
12,886.90 of total now RM 112,886.90. Youve decided to place that money in Bank Rakyat
giving you 15% pa dividends. Market price for houses of same size have now risen to almost the
same at RM 450,000 but due to your excellent negotiation skills and techniques we explained
earlier, you manage to buy it for RM 400,000. Your installments have now risen to RM 2,398.20
per month for the next 30 years an increase of RM 300 from the previous installment. In the 5th
year youll be able to pay in full your monthly installments with dividends from your Bank
Rakyat investment. Also, youll be able to fully settle the house in 8 years time instead of 30
years! Along the way, you can start to sell again, do another cycle again. And dont forget with
RM 112,886.90, you can use this as capital for other real estate investments. Dont forget you can
also withdraw your EPF account 2 as capital too.
OPTION 5 : REFINANCE YOUR HOME FOR CASH
The secret of refinance strategy is something most people dont really realize. Most people would
want to clear their loans as fast as they can. The secret is to take more loans so that you can place
cash to an investment that can pay more returns. For example, lets say you took a loan to buy
your home of RM 135,000. Your house price then was RM 150,000. Therefore, 90% loan over
the house price. Your loan is at BLR+1 or 7%. After 2 years, your home is now valued at RM
250,000. Your settlement amount now is RM 125,000. You can go to a bank, and refinance it at
the new value now and perhaps with a lower interest rate. Therefore, you can take a higher loan
of RM 225,000 ie. 90% of the current valuation. The bank will now give you cash of RM
100,000. You take a bigger loan but you actually get RM100,000 to place into unit trust that can
give you 15% returns pa and pay of the installments as well. Wasnt that so easy and can also
assure your financial freedom as well.
OPTION 6 : BUY FROM AUCTIONS
One other good option for bargain hunting is via auctions. There are many auctions held in a
week. You can just buy a newspaper and check at the Notices section. There is a reserve price set
for the property and you will need to deposit a sum of 10% of the reserve price on the auction
day. You will not loose the money unless you bid on the day and became successful. The auctions
are normally held on working days. Youll have to spend time on working days. The modus
operandi is to actually look at the reserve price and check the property yourself and do also parent
title search and also perhaps to check with the apartment management on the physical condition
as well as history of the property. Then, you can check the value of properties in the area and also
the normal rent in that area. If you have made your decision, its time to bid. But be careful, if the
property has gone into option it can be that the location is not good. If you have done a detailed
and complete survey of the location and premises and asked around, then the reason for the
auction is that the owner is having his own personal problems and not related to the property.
Also, there might be outstanding service maintenance fees, quit rent, assessments, taxes etc2. Ask
the auctioneer of the details of the property. If you can try to communicate with the owner far
better. But do a thorough check before getting caught with a real estate nobody really wants.
52
CHAPTER 9
Internet - The Ultimate Money Making Machine
We have finally arrived at a Chapter where I have many times mentioned throughout this manual.
My intention in this Chapter is not to teach you on how to use the internet. But this will be more
of and direct to the point on how to make money on the internet. I will explain not only methods
but the overall picture regarding making money online. This will cover not only the skills,
techniques, strategies, infrastructure and etc2 but also the emotional and psychological
requirements in making money online from the comfort of your living room or your study room. I
will use real life examples and will share with you my own personal experience. I must be one of
the living examples of a person who actually worked 24/7 from home making money just from
one source which was online. With this opportunity you will be able to start making money parttime to meet your goals of financial freedom. Some of the opportunities will require you to invest
a small token of money. But I will always give suggestions to you on making money without a
single sen required and straight away start earning some income.
As our privileged customer, you will be subscribed as a lifetime member of my portal
http://www.internetmarketing1001.com where Ill update you with all the databases of links
and opportunities and sorted out in an easy format for you to start your online business. Contact
via email internetmarketing1001@yahoo.com to get yourself registered. Ill explain more below.
What is the Internet?
Internet is actually a tool that connects people from around the world. With this technology they
will be able to share information as well as advertise and sell products and services to people
around the globe. Currently, there are 605.60 million people using the internet worldwide. If you
want to know more about what internet is and how it all works, just get a book with all the details,
technicalities, server connectivity or whatever. This manual is not intended to go into those
depths. But it will be good to have a certain amount of understanding what internet is all about.
Why the Internet?
In summary these are the reasons why you need to start jumping into the bandwagon of making
money on the internet :
1. Global Exposure - As explained earlier currently there are 605.60 million internet users
worldwide, therefore you have an audience or target market of that much just from the
comfort of your living room. Plus, it is a growing market with many more billions of people
coming online every year.
2. Cost Is Low - If you were to start a traditional offline business, you will require capital,
shopping lot, operating costs, rentals, employees wages, EPF, Advertising costs, permit and
etc. Whereas, for an internet business, you start with almost nothing just a PC and a modem!
Below is an example of comparison between traditional and an online business. Lets say you
decide to open up a 2 ringgit shop somewhere in Klang Valley. Heres the comparison :
53
Details
Traditional
Online Business
Cost
Start-up capital for equipment, furniture, paint etc2
RM 30,000
RM 0
RM 2,000
RM 2,000
RM 12,000
RM 0
RM 24,000
RM 0
RM 5,000
RM 0
RM 2,000
RM 0
Total Cost
RM 75,000
RM 2,000
RM 100,000
RM 410,400 *
* assuming you make US$150 per hour from surveys 2 hours a day.
FIGURE 3.1
3. Time - you can do business 24 hours a day 7 days a week at your own leisure. You choose the
time you are most productive and comfortable with. Flexi hours at its best. You can choose to
do business at night while doing your chores or going to the bank during daytime. Also, you
wont need the time to travel and meet your customers or people.
4.
Work from anywhere in the world - you can bring your laptop and connect to a modem
anywhere and still continue running your business as though nothing had really stopped. You
dont have to worry about taking time off for holidays.
5.
Passive Income Due to Automation - your shopping carts, affiliate programs, credit card
processors are all automated. Therefore, lets say you setup everything correctly and go off to
Langkawi for 2 weeks. By the time you come back, money would already be in the bank and
nothing has actually stopped.
6. No Face to Face Selling - some of my MLM friends failed in their network marketing
business just because they hated meeting people and being turned down so many times. Via
online business, you wouldnt even realize you were turned down. Just that they visited your
site and didnt sign-up for membership or purchase your products.
7.
8. Huge Income Gap in the world maybe you realized this. There is a huge income and price
gap in the world. For example, Mcdonalds value meal cost RM 6 here in Malaysia, whereas
in US its US$ 6 for one set of value meal. Wouldnt it be great to buy that RM6 in Malaysia
and sell it back to the Americans for RM 20, theyll make a savings of RM 4 for their value
meal. However, example given above is not logical but is a good example of how deep the
gap is. But you can sell other things like products and services and even your time.
54
55
11. Just an idea, place a TV and a mini-hifi in your room that way you can also follow the news
on Astro for whats going on latest on CNN, CNBC, BBC etc2. You dont want to get caught
if another Sept. 11 happens again. Fast action is important on the internet.
12. Get at least 4 clocks on the wall and label them according to LA, New York, London and
Malaysia. Also, try to get a big map of the world or a globe in your study room.
13. Make sure all your office equipments, paper clips, file folders, stapler etc2 are all ready and
within reach.
14. Depending on your level of computing skills, go for a short course about basic things such as
Windows, Internet Explorer, Words, Excel, Emails etc2. Allocate some RM 500 for this.
15. Electricity cost - some cost incurred monthly.
16. Get a credit card ready with Online-banking facility. Have both VISA and Mastercard ready.
So, how much will you need :
Item
Computer
Broadband
Furniture
Computer Course
Total Capital
FIGURE 3.2
Cost (RM)
2,000
917
700
500
4,117
If you already a computer and already have a study room with all the facilities or maybe you
dont want to go overboard and can straight away start your operations then ignore the capital
required. However, you need to have broadband installed because it will be savings to your
compared to using a dial-up account.
The list of what needs to be done above is quite comprehensive which fully covers all your needs
to do business online. Imagine like you are actually a real business and your study room is your
Company HQ with all its marketing and sales staff, accountants, CEO, operations manager and
all the company infrastructure ready. However, youve crammed everything into just one room by
yourself. You study room will be the war room or operations room to run your global 24/7
business. If you can meet all the above and you can at least allocate 2-3 hours daily consistently,
Ill show later exactly how to make your first buck online and cover all the above expenses
straight away.
Fundamentals Once Youre Online
1. Email Account - you need this to communicate with anyone. Your first step is to register for
free email accounts. You can go to http://mail.yahoo.com and register for one. You can also
go to http://hotmail.com for one also. If possible do not use your tmnet or streamyx for any
communications. Because if your main email has been spammed, it will be difficult to change
your email address and you might also reveal some of your details to hackers and you might
be taking advantage of you.
56
2. Search Engines - your default Internet Explorer page should start at Yahoo. Go to
http://yahoo.com and go to Tools > Internet Options > Use Current for Homepage. This is
where you can search on whatever you want on the internet. Should be your starting point on
the internet. You can also use http://google.com for searching the net. For example a search
on making money online will come up with many links. This is an important tool for you to
start doing anything on the internet.
3.
57
3. Rest and Relax make sure you allocate time for rest & relaxation. Lets say you on into
internet at 8 am and do all the automations, promotions, checking of stats, paying of bills.
Maybe at 10:30 am, take some time to unwind, read the papers, watch TV or go to the
groceries fill up gas for the next 2 hours or something. You dont want to cook up yourself
unnecessarily.
4. Set a Timetable set a timetable based on the 80/20 principle. Well set a online making
time table at the end of this chapter.
5. The 80/20 Principle As
6. Discpline just like anything else, this is especially more important for internet marketing. If
youve set your mind to achieve a certain hits target, then youll need to consistently promote
on a minute scale but almost consistent everyday. You need discipline to ensure that happens.
7. Biological Clock you may to start to think that, since you can work anytime or work
against US office hours or Eastern Time office hours. Then, youll sleep in the morning and
work in the wee hours of the morning. My advise is dont. Humans biological clocks are
natural, work in the daytime, sleep at night. Just follow the normal office hours for working if
youre a full time internet money maker.
8. Patience and Time Commitment success doesnt come immediately. You setup a website
and start your promo. But nobody is coming. You just learned on how to market online, if
you build they will come. But it will take time
9. Money to make Money you may need to put some money start things going. But this
money will be far less than required to do a traditional business as was already explained
above.
10. Free Your Mind just like Neo in Matrix, internet is completely boundless. Meaning there
is no boundary or limit to what you can achieve. And nothing is impossible. Unlike working
in a corporation, you will need a certain number of years lets 10 years to become company
CEO. Someone, will scoff you if you wanted to right after graduation. But on the Internet you
must believe you can do anything and it can be achieved. You must be totally creative and
flexible. What worked yesterday, will definitely no longer work in just hours
11. Risk Taking you need to take some risks on the Internet but not that big of a risk like
buying real estate or opening up a store. This is quite a minute risk taking if you ask me. For
example, taking up a domain name and webhosting, you might not get your money back, but
free you mind, take the risk and try.
12. Learn to improve and gain knowledge a lot of learning is required. You must
continuously update yourself or else youll lose out or cannot compete on the cyberspace.
You may need to spend hours on the computer in the beginning just to learn.
Rating 4 out of 10
There are many things you can sell on the internet. You can setup an internet store and
promote it to sell your products. I will show you later on how to setup an internet store but
what well concentrate on for this is the shopping cart part. CCnow is a good automatic
shopping cart provider. You decide what to sell, you register with them free no setup costs,
and promote your website. They will provide you a link to put on your website. If an order
58
and sale is being made you will be notified via email about it. Then you wrap and ship the
product via normal mail. Malaysian things you can sell on the internet to the world :
1. Herbal products Tongkat Ali cost RM 10 per bottle, you can sell it for US$10 per bottle
inclusive of shipping;
2. Clothing, t-shirts Buy at pasar malam and sell free sized T-shirts;
3. Books sell your second hand books or buy second hand books from dealers in PJ and
sell back to the world;
4. Paintings;
5. Batik;
6. Sea shells;
7. Stamps coins;
8. Hardcopy manuals of your interest like this one.
9. Many more, etc2..
However, a lot of effort will be required to buy the product and package it for sale.
2. Create and Sell Virtual Products
Rating 7 out of 10
Rating 10 out of 10
This is the easiest one and perhaps the most profitable one. You actually promote other
peoples product or website and get paid commissions if a sale has been made. There are
actually thousand and thousands of affiliate programs on the internet. But one of the most
successful one must be the Amazon.com affiliate program. You just register and receive a
link to promote. You can either email this link to friends or suggest a book to friends to buy
and if they buy it, you get a commission out of it. You can also become Clickbank affiliate
and sell hundreds more products and just receive cheques every month. Therefore, if lets say
you have a website that is making traffic of 1,000 hits/visitors per day. If you put a link
somewhere down there on your affiliate products. They might end up clicking and going
there. Lets assume 10% decide to click and go to your affiliates website, ie. 100 visitors end
59
up going to your affiliates website and 10% out of that decide to buy. That 10 sales per day.
Lets say you get US$ 5 for each sale. Thats US$50 of which is RM 190 per day. And that
just one affiliate, lets say you advertise a number of affiliate on your website, youll get
more. You can put the links on the side of your website where your visitors can easily see and
click. Which affiliate you may ask me There are hundreds out there Using the 80/20
principle, youll need to choose only those that you feel you can concentrate and sell. For
example, you have a website for fishing enthusiast, you can put books that has something to
do with fishing on the side from http://amazon.com. Youll earn commissions from sales of
those books.
a. Where to find Affiliate Programs?
1. Through Search Engines like http://yahoo.com or http://google.com and put a
keyword search Affiliate programs. Google search last night came out with
3,410,000 searches but check the Sponsored Links. They seem to be making
money, therefore they can afford to pay for the ads.
FIGURE 3.3
2. Affiliate Directories :
a. http://www.associateprograms.com
b. http://www.affiliatesdirector.com
c. http://www.refer-it.com
d. http://www.cashpile.com
e. http://ww.iboost.com
f. http://associate-it.com
and many more.
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Rating 3 out of 10
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You maintain a newsletter website where you send newsletter on subject of interest to
subscribers for free. At the bottom of your newsletter, you have space for advertising to sell.
This can be a good way to promote your affiliates as well as collect money from advertisers.
You can also sell space on your website. I will explain more on the newsletter later as a tool
for promotion instead. There is also problems of collection money for the ads and
maintaining
5. Join Online Multi Level Marketing Programs
Rating 9 out of 10
Youve been exposed to the benefits of doing network marketing and a bit on the advantages
of internet MLM in previous Chapter 12. There are basically thousands of programs to join
on the internet. How it works is you join their program either on a one time fee, a monthly
fee or sometimes even totally free. Youll be provided with a self generating website of your
own. The sales letter and everything else have already been automated. You just promote
your new website to others and earn commissions for every sale you make. If your downline
now promotes their own website and make a sale, youll earn commissions out of that as
well. And this will go on until 5 levels down or whatever. You keep earning residual income
until someone down there stops promoting or you stop promoting. So, if its so perfect, why
do almost 90% of people especially here in Malaysia pay a one-time fee and get something in
the beginning and nothing afterwards. The average time of interest is sometimes just 3
months and they start to give up. Many times, theyll have a lifetime membership to promote
but simply forget about it and totally lose their password and everything. Despite that I still
give a high rating of 7 out of 10 because of the possibilities you might achieve in internet
MLMs. Let us analyse perhaps the 10% reasons why 90% of people drop out :
1) The company disappears the company simply disappear into thin air. Choose a good
one, recommendations from friends. Look at their layouts, if they look like they are fly by
night operations, try to avoid them.
2) Giving up hope people give up hope too easily. It takes time to promote.
3) No vehicle for promotion you base your promotions on just a few friends and stop
there. In fact, you end up the traditional way and start calling them and seeing them face
to face. You sometimes in fact even pay for your friends to join. You dont use the
internet way to promote.
4) Simply dont know where to begin. Youve read so much about the internet. So you
buy in to the MLM, thinking people will come out of the blue. In the end your website is
left in the dust with practically no visitors. Youre left crying about the US$50 youve
spent on the MLM.
5) You rely your promotions on search engines You submit once and thats it. You
dont even know whether its listed or not. Everyday millions of new people are
submitting and your listing will end up disappearing in time.
6) You dont communicate with your downlines or your uplines. Just like traditional
MLMs you must also communicate and share like a team. Because everyone will benefit
share your secrets with. Think them as your company partners. You are actually in
partnership with them. If you are good at promoting, guide your downlines and make
them into your super downlines.
7) You spam! You send unsolicited emails to people you dont know and end up getting
your email cancelled and your MLM account cancelled.
8) You dont do a single thing You take the MLM ad literally and eat, sleep, watch TV
without doing a single thing.
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9) You dont track what is really working and continue promoting useless strategies.
Track your hits and joining statistics.
10) You cant pay your MLM the onetime fee so do your downlines.
11) You have too many MLMs and cant concentrate on just on as your super money
maker.
So lets start again and do it right this time. For those joining internet MLMs for the first
time, there are limitless opportunities and global exposure in this thing. You might just
get your financial freedom earlier if you concentrate your efforts in this.
Because the author of this manual is generous, well pay for your one-time setup fee for
an MLM of our choice. We have some very kind affiliate of ours in the USA that will
help us regarding this. Email us at internetmarketing1001@yahoo.com to get your free
MLM account to start promoting. This is a lifetime membership of US$50 per
membership. Everytime a downline joins under you, youll get commissions of US$7 per
member. Its totally free, just promote your website to the world and build up your
empire.
6. Submit Surveys, Opinions, Forms.
Rating 6 out of 10
There are hundreds of survey sites. Basically, you are paid just to answer surveys or fill up
forms and paid up to US$250 per hour or RM 950 per hour. The best way of gaining access
to the market research companies is to subscribe to a Paid Survey Database Companies. In
exchange for a small, one-time subscription fees, they give you access to a comprehensive
list of market research companies allowing you to tap instantly into two amazing money
making opportunities. To learn even more about each company, see the detailed review below
the comparison table.
Name
# of
Companies
Moneyback
Guarantee
Surveys
Payment
Range
Focus
Group
Payment
Range
Survey Scout
Over 450
90 days
$5 $120
Survey
Junction
Over 700
90 days
Over 200
Paid Online
Surveys
Special
Bonuses
Free
Gift?
Our
Rating
(#/10)
One time
subscription
fee
up to
$200
9.7
$34.95
$25 $99
$30 $200
9.2
$32.95
90 days
$5 $150
up to
250
8.4
$37.00
Over 275
90 days
$25 $99
$30 $200
7.5
$34.97
Paid Surveys
Online
Over 300
90 days
$5 - $75
$50 $150
7.0
$34.95
Survey n
More
Over 200
30 days
$4 - $75
$50 $250
6.5
$29.95
E-Submit
Factory
Over 300
90 days
$5 - $75
$50 $150
6.4
$39.95
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Maybe for a start choose one for example Survey Scot to test and achieve break-even first.
Again you may need Clickbank for this, that means you may need a US address for this. Go
to http://www.surveyscout.com and learn more there. Or put keyword paid survey on
google.com. Or go to http://www.moneygenerator.biz/paidsurveys.html for free info. You can
also check http://www.gozingsurveys.com/ for free info. You wont need a US address for
these and they are totally free.
7. Read Emails and Make Money
Rating 8 out of 10
Go to http://hits4pay.com and learn how you can make money by just reading emails. Or go
http://www.gr1innovations.com/email.html or you can also put keyword paid to read
emails on google.com or go to http://www.allcommunity.com/all.members/gr1
8. Paid To Just Click
Rating 8 out of 10
Go to http://pay2click.com for your free membership. They just pay you free money to just
click and submit things or you can also put keyword paid to click on google.com
9. Paid to Learn and Read
Rating 8 out of 10
Go to http://www.itpaystolearn.com and get paid free money for learning only. Paid by the
minutes. Collect your cheques at home
10. Get Paid for Clickthroughs
Rating 9 out of 10
Rating 10 out of 10
Hard to believe but true! Companies in the USA simply pay you cash for no apparent reason.
Dont believe me, just check it out yourself! Just do a couple of clicks a day and earn free
cash Just go to : http://www.metareward.com/mr/Page?p=offers&si=3081. You can also
make more money by just becoming their affiliates and offer other people FREE cash
unbelievable!
12. Online Auctions on Ebay
Rating 4 out of 10
I know a Malaysian friend currently living in the US who makes his sole living out of just
buying and selling on Ebay. What he basically does is he sets up an Ebay account with a
Paypal account. Then he wanders Ebay looking for good deals in electronics such as digital
camera, computer products like printers, radios, DVD players, video cams and the likes. He
sets in Ebay that if there are any auctions of that kind notify him. Then, he will automically
bid at a set price hes targeting. If he get it at the price he wants, he will straight away before
paying the seller via Paypal, bid it online again at a higher reserve price. For us here in
Malaysia, well face many difficulties doing this due distance of delivery will make us
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uncompetitive in the bids. But Ebay.com is a good way to setup your store to sell your
physical products without the need to promo your website. If you sell, they will come. Also,
for Malaysians, we wont be able to register for Paypal, thus will make it difficult for us to
trade. I am just telling some people are making money out of this.
13. Online Trade on Etrade
Rating 4 out of 10
If you have the guts and capital to try on Dow Jones or NYSE. Then you can easily do it at
http://etrade.com or http://ameritrade.com. You couldve made returns something like 1000%
returns last time on tech stocks during the tech boom. But these days would be difficult. You
would be better off putting money on KLSE or MESDAQ.
Some of the methods above you can start straight away without setting up a website. But on a
whole, its better that you setup a digital store front where you can invite visitors and maintain
them and then advertise all the affiliate program, clickthrough, MLM and etc2.
Your Internet Store Front
Well its not really a store. Youre not exactly selling anything, its just a way for people to visit
your site in order you can push them somewhere else where you make the US$$$. It can be
almost like your office reception where you receive customers and suppliers. A store or a
reception needs to give an impression that you really mean business or people wouldnt come.
However, you might just want to have something very simple so that visitors just breeze and end
up going somewhere else ie. your affiliates website. Or you can also sell your products and
services on this website. So heres what you need to do :
Step 1 : Domain Name (Free or Paid)
This is like an address. When you ask someone to come to your office, your customers would be
impressed if you are located in Golden Triangle KL. Just the same you can actually register your
own domain name like http://www.yourname.com or http://www.yourname.com.my. This would
make it easy for it to appear on search engines and easier to tell your friends or people where your
website is located. Rather than having a website with a long URL and all the weird characters like
this http://geocities.com/Avenue5473/zerozero/index1234.html would difficult to remember than
http://www.hotmail.com. It sounds better too, doesnt it? To register your domain go to :http://www.adimeadozen.com/ or go to Google.com with keyword cheap domain name
registration. Cost you about US$ 6.95 per year or RM 26.41 per year only. Use your credit card
to register. This comes with Forwarding & Masking and 100-pk Email Forwarding. This is
important as you want it to be forwarded to a free webhosting if youre not using paid
webhosting. And you can have 100 emails setup for your domain. Thats really cool for just RM
26! I wouldnt suggest you use free domain but if you cant fork out that RM26 just use your
free webhosting domain name and that should still be okay. Lets move on to the next topic,
webhosting. There are FREE and there are the paid ones.
Step 2 : Hosting (Free or Paid)
Now that you have an address, you need a home or a house or an office. You can either choose
free hosting where your DNS gets forwarded to or a paid hosting.
Free Hosting
There are simply too many. The most popular being Geocities.com, Angelfire.com, Tripod.com
and more. Again go to Google.com and put keyword Free hosting. You can also go to
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http://www.freewebspace.net/ for guides and comparisons of all free webhosting available on the
net. So far, Ive found like 192 free hosting services. The best one I found was http://aboho.com/
but you make your choice out of the 192.
Paid Hosting
May I suggest that if you are just starting out, why not try free hosting first. But if you want to
you can get paid hosting for US$8 per month on average. So allocate around RM 364.80 per year.
There simply too many out there, use Google.com and keyword Webhosting and look for the
cheapest! You can now point your domain to this webhosting. If you are actually serious about
getting traffic to your website, this is the far better option, which is to pay for your hosting.
Now that I already a web hosting whether free or paid, whats the next thing that I should do.
Forward your domain name to your free hosting and start designing.
Step 3 : Designing your website
You dont need to design those fancy mancy stuff you normally see on Accenture, IBM or
Microsoft website. All you need is something to tell people about stuff and to place links. My
suggestion is to use Frontpage. Its like a word processor, just type a few words and upload to
your free webhosting server. Or if its too difficult than just type a paragraph or two on something
you think you want people to know on the Internet and save it as webpage rather than a word doc.
Upload this to your free hosting and see the results for yourself. There is no such thing as html
programming anymore these days. And of course you can even take a course in Frontpage if you
want to. Dont hire people to design your website, total waste of money.
Step 4 : Designing graphics on your website
You may want to design some fancy graphics on your website. You can either use your drawing
facility on your Word tools or more advanced tools like Adobe photoshop.
Step 5 : Automations
You may want to get free automations like free forums, mailing list, stats etc2 from places like
http://www.cgi-resources.com or place a keyword free forums or free cgi at Google.com to
get the latest offerings. Check out also http://www.bravenet.com/ for stuff like Guestbooks, Mini
Surveys, Hit Counters, Email Forms, Mailing Lists and so much more there
Step 6 : Setting Up Your Emails
Now that you have your own domain name, you may want to use it to receive emails from your
customers. The 100 mail forwarding service in your DNS reg can forward all your emails to one
of your hotmail.com or yahoo.com service accounts. You can have emails like
admin@yourdns.com or askrequest@yourdns.com etc2. Once you receive it at your email
accounts, you can reply and change the from email account to that dns account. If you are using
paid web hosting, a webmail tool is normally provided where you can log-in anytime to check
your emails and reply back.
Step 7 : Setting Up Your Hit Counters/Statistics Tool
This is very important because you want to know whether your promotions have succeeded or
from where the hits are coming from. There are several free counters available on the net. You
can go to Bravenet or use others. Go to Google.com and put keyword free counter. If youre
using paid hosting, a tool should already be installed there. You can track where you have gone
right and where you have gone wrong with your promotion strategies.
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1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Yahoo
Google
Alta Vista
Netscape
Excite
Webcrawler
Hotbot
Lycos
Look Smart
Ask Jeeves
Open Directory Project
http://www.yahoo.com
http://www.google.com
http://www.altavista.com
http://www.netscape.com
http://www.excite.com
http://www.webcrawler.com
http://www.hotbot.com
http://www.lycos.com
http://www.looksmart.com
http://www.askjeeves.com
http://www.dmoz.org
There are more. You can go to each of the search engines and learn how to submit and the
criterias of submission. There are many search engine strategies that you can use :
1.
2.
3.
4.
5.
6.
7.
8.
9.
Doorway pages
You can create doorway pages to suite each website. That means you create
pages to fit each of the search engines. Learn more at
http://www.positionweaver.com
Smart Pages Generator
You can improve your search engine submission by using this smart pages
generator. Go to http://www.spgenerator.com to learn more.
Link Popularity
Search engines will take into account the number of pages linked to your website.
Go to http://www.linkpopularity.com and http://www.alexa.com to learn more.
You can also get more info at http://www.linktopics.com or
http://www.linktoyou.com
Domain Name
Some search engines provide good ranking for your domain name. Thats why
its better to invest at getting a good domain name.
Meta Tag
Go to other websites that are ranked good on Yahoo or Google and copy their
meta tags and place them within your html.
Keywords and Key Phrases
You will need to focus on certain keywords through out your website.
Keyword location and prominence
Place the keywords on top and highlight the keywords many time in the
beginning but do not overdue it. You can also place it at the bottom.
Automatic Submission Services
You can try to use the auto submission programs on the net. However, for the
important search engines as explained above please try to do them manually. For
the others you try out all these auto submitters. There are more, just use Google
to search them. However, these are the suggested few :http://www.worldsubmitter.com,
http://www.ineedhits.com,
http://submitexpress.com.
Software Submitters
There are may softwares out there that can also help you with the process of
submissions. Go to Low Yat and find them. You can also try this :http://www.secure.sitepromoter.com
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10.
11.
12.
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Go
to
:-
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instantly to your website. Or maybe create a channel of your own and invite people to join that
channel and visit your website as well. Go to http://mirc.com and learn more about this.
Method 15 : Egroups
You can search egroups and join as a member and promote here. Also, you can also setup your
own egroups and create a following to your egroup. Go to http://egroups.com for more
information.
Method 16 : Forums and guestbooks
Simply join any forum and promote there or leave messages on other peoples guestbooks to visit
your site.
Method 17 : ICQ or MSN/Yahoo Messenger
These days you can simply promote to others from your ICQ station or your MSN/Yahoo
Messenger. A very good way indeed.
Method 18 : Advertise in the papers
You can even put tiny classifieds in the papers to promote your website.
Method 19 : SMS
Newest way is to SMS people to visit your website.
Method 20 : Fax
One other good way is to fax people your sales letter promoting your website.
Method 21 : Flyers
Oldest method is to simply photocopy thousands of flyers and pass all around.
Method 22 : AD Google
One of newest and best way is to bring traffic to your site is to pay Google for everytime
someone clicks your ad that appears on their search engine based on certain keywords. A very
effective way indeed but youll need to put some capital for this.
There are simply 1001 ways promoting on the net, the above are just some and put very general
for you to start. Now that youve seen everything lets summarize everything on what needs to be
done to make money in 90 days. As explained earlier there are many resources available on the
net. Go to googles and place keyword internet marketing strategies, there are many free
resources available on the net.
If you look at Figure 3.4, in summary these are the ways to make money on the web. Some you
need to do internet marketing, some you dont.
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No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
FIGURE 3.4
Setup Website
Setup Website
Promote Directly
Traditional Methods
Spend Time Fill Up Forms
Spend Time Reading Email
Spend Time On Clicks
Spend Time To Learn
Setup Website
Promote Directly
Spend Time Fill Up Forms
Spend Time To Monitor
Use Capital
Spend Time To Monitor
Use Large Capital
Now, that youve seen the summary above. You must be wondering, where to start and how to
start making money instantly and with more structure. I will give you a 90 days guide on what to
exactly do to start making money from day to day. All this will assume you have a good
computer, Streamyx DSL or Broadband Internet and a credit card. Ofcourse youll need some
capital to start with. MMM stands for Money Making Method while IMM stands for Internet
Marketing Method. I call it a war plan because youll need to treat this like your private war with
strategies and full concentration.
DAY
ACTIONS
1.
1.
2.
3.
4.
5.
6.
7.
2.
1.
2.
3.
1.
2.
3.
72
4.
5.
4.
5.
1.
2.
3.
1.
2.
3.
4.
6.
7.
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
8.
1.
2.
3.
4.
5.
6.
9.
7.
1.
2.
3.
10.
4.
1.
2.
3.
4.
5.
11.
1.
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2.
3.
12.
FIGURE 3.5
1.
2.
3.
4.
5.
After 90 days, if you follow exactly the prescribed war plan above, you shouldnt have any
problems in achieving your target of RM 5,000 per month. Make this a target to achieve and
dont leave your PC until youre sure that you can and will achieve this. Make proper planning
and strategize all your marketing and Internet time efforts.
If youre slower than the above, take your time more on learnings and readings on the Internet or
take outside computer and internet courses before embarking on this 90 day WAR!
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CHAPTER 10
Lets Set Your Overall Financial Freedom Strategy
Well, youve heard just a few income sources that I can explain in this Manual. However, there
are simply unlimited numbers of income sources I had not purposely put into this manual due to
the criticality of focusing on certain income sources first. I will just summarize the many other
ways to expand your income source that you may also want to investigate at a later date. But as
explained in the 80/20 well target the ones explained in this manual. But heres the some of
businesses/things you can do.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
There are basically 100 more. If I were to place them here it would take another 30 pages just to
explain what you can do. But look at it this way. If youre creative enough money will simply
come to your way.
Well enough on that. Now you have multiple income streams, multiple tasks, multiple goals and
targets and multiple head aches! How in the world are you going to balance everything. Let me
give you some tips on how to balance everything so that you wont drown with all these tasks that
awaits you. In surviving this day and age, different set of strategies must be undertaken from the
ones set by our grandfathers and fathers. This is the strategy that you need to follow :Strategy 1 : Time is Money
Every minute counts. Time you wasted watching TV, can be used to promote your website and
earn your first buck on the net. If youre late by one month, you might lose an entire month of
dividends in unit trusts.
Strategy 2 : Critical Task
As explained earlier in 80/20 rule, youll need to concentrate on a few critical tasks that will make
you money than everything that makes a few.
Strategy 3 : Procrastinate on 80 percent of your activities
Procrastinate on the critical 20% while putting aside the 80% for awhile.
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