#investment - Fundamental of Getting Rich

Rules of Investing - To gain from doing the right investment and getting your money doing the real work for you.

 In order to be rich, there are many ways. There are gurus and master mentioned and I summarised base on what I know so far:
1. Get a very good paid job
2. Save most of your money
3. Invest you money in right way and also in long term

The above are the basic steps to be getting rich. However, what is rich does not apply to others. For me let me define and narrow down a bit. Getting Rich is to be have Passive Income for the rest of your life. That means you can no need to work 9 to 5 to earn the income to pay the bills.

Before any investment, you have to know why else you will not know what is the end and you will end up doing more and more. There are people who is very rich but still have to work very hard because they do not know when they want to stop.

So for investment; to get your money work for you, you must understand what is compounding effect. This is very important and will let you plan for your time.

For example, you want to reach a goal of 1 million dollar with 100,000 capital, you then must know how long base on the current interest rate you getting.

Let say you invest in REIT which can give you about 8% per annual, you will take about: 34.4 years 

100,000 => 200,000 = 8.6 yrs
200,000 => 400,000 = 8.6 yrs
400,000 => 800,000 = 8.6 yrs
800,000 => 1,600,000 = 8.6 yrs

use rule 69. to double any investment, take 69 / by the interest per year.

So as you can see to be a millionaire is not that difficult. So what do you need? 1. 100,000 dollar 2. investment return of 8% per year 3. 34 yrs Thats it!

How to have item 1 & 2 is depend on yourself. I will touch on further.
Item 3 - I cannot help. If you can start early at the age of 20s, you can have a million by 54 yrs. That's simple.

Stay tune for me to talk more on Investment for next post

Want to be a Millionaire? A Lazy one?

The Lazy Millionaire by Marc Fisher.

About the Author
Author of the popular best-seller, The Instant Millionaire, translated
in 25 languages and over 2 million copies sold worldwide, Marc Fisher
is by far the most read, most known Quebec author. His successes
inlude the "Millionares' Secrets", "The Golfer and the Millionaire",
"The Millionaire's Gift", and now this most recent title.

Get his book and learn the concept.

Part 1
Chapter 1 - What is a Lazy Millionaire?
Chapter 2 - Why aren't you already a lazy Millionaire?
Chapter 3 - The lazy Millionaire loves work... particularly when his
assets do all the hard work!
Chapter 4 - The lazy Millionaire grows rich quicker thanks to his mentor
Chapter 5 - The lazy Millionaire lets his objective work for him
Chapter 6 - The lazy Millionaire preserves his sanity by following the
Principles of Least Effort
Chapter 7 - The lazy Millionaire plays according to Parkinson's Law
Chapter 8 - The lazy Millionaire  loves work... that of others!
Chapter 9 - The lazy Millionaire is positive
Chapter 10 - The lazy Millionaire tackles the most profitable tasks first
Chapter 11 - The lazy Millionaire always strives to pay the lowest price
Chapter 12 - The lazy Millionaire tracks minor, invisible expenses
Chapter 13 - The lazy Millionaire saves without suffering
Chapter 14 - The lazy Millionaire lives like a king on a beggar's salary
Chapter 15 - The lazy Millionaire trusts his intuition
Chapter 16 - Give yourself The lazy Millionaire's agenda!

Part 2
Chapter 1 - Take your time, because.. It's your time!
Chapter 2 - Free yourself from the tyranny of work!
Chapter 3 - Don't buy until you decide to buy
Chapter 4 - Free yourself from false obligations
Chapter 5 - Write: "Do nothing!" in your agenda
Chapter 6 - Are you afraid to stop?
Chapter 7 - To get there on time, leave ...early!
Chapter 8 - Why I shave in my car
Chapter 9 - Do you spend your time.. vacuuming?
Chapter 10 - The ultimate secret of making the most of your time..

Buy the book and become a lazy Millionaire yourself now

Timothy Ferriss' Four Hour Workweek

An impressive and practical guide to NEW RICH.

What some other people say:
http://davidseah.com/blog/a-review-of-tim-ferriss-the-4-hour-work-week

"T4HWW is a remarkably transparent guide to achieving that lifestyle you've always wanted but didn't dare admit, rationally presented as a series of steps predicated on a fundamental rule: reality is negotiable...outside of science and law, all rules can be bent or broken."

Secrets to Maximizing Social Security

Secrets to Maximizing Social Security
by Mary Beth Franklin, Senior Editor, Kiplinger's Personal Finance

Despite a temporary shortfall, the nation's primary retirement system
continues to pay full benefits. We show you how to make the most of
yours.

It's official: High unemployment and a resulting decline in
payroll-tax collections have taken a toll on the Social Security
program. Benefits will exceed revenues for the first time in 2010 --
six years ahead of previous projections -- according to the Social
Security Trustees' 2010 report released Thursday. But the nation's
vital retirement program is expected to slip back into the black -- at
least temporarily -- when the economy recovers, before posting
increasingly larger deficits as more baby-boomers reach retirement
age.

Strategy 1 : File and Suspend
Strategy 2: Collect Some Now, More Later
Strategy 3: Retirement Do-Over

It took about six months from the time Phillips filled out Form 521
until he began receiving his new, higher benefit -- an increase of
$1,175 per month over his previous amount -- plus a check for three
months of retroactive benefits dating back to his 70th birthday.
Despite the delays and hiccups along the way, Phillips says it was
worth the effort to increase their monthly benefit by 160%, with
built-in cost-of-living adjustments -- no matter how long he and
Deirdre live.

Read details here :
http://finance.yahoo.com/retirement/article/110266/secrets-to-maximizing-social-security?mod=retire-planning

6 Extreme Ways to Go Frugal and Save

How far would you go to save a buck in today's tumultuous economy?
People are finding more ways than ever before to scrimp and save. But
some take it to extremes.

Read on as expert penny pinchers detail six bold ways to cut costs --
and in some cases, generate a little revenue -- during tough economic
times. Are you extreme enough to give them a try?

Get Rid of Your Car
Take In a Renter or Boarder
Downsize Your Home
Change How You Use Credit Card
Only Use Coupons or Go Generic
Dump High-Tech Toys

Read more here :

http://finance.yahoo.com/family-home/article/110238/extreme-ways-to-go-frugal

Wisdom from Richest Man in Asia

Moral of the story:
Money can spend and use but cannot be wasted.

Key to being rich

Sir Ka-shing Li, 李嘉诚 once said:

"If, from now onwards, you are able to save $14,000 per annum and If
you are able to invest in stock and property using the saved money and
getting a return of 20% of your capital. You do this year after year,
putting the capital and interest back, after forty years time, using
compounding calculation, you are able to receive $102,810,000."