Tuesday, July 29, 2008

Robert Madzej - 5 money savvy tips

Late last month I happened to stumble upon an article which I felt was worthy of emphasizing. The article "Grads can learn to save now" by Adrian Mastracci disscusses 5 steps to improving your financial wealth. These are very important and are also reflected in Robert T. kiyosaki, "Rich Dad Poor Dad", which are the basis for a financial plan that strives for success.

5 Steps:

1) Your Human Capital
Human Capital is essential as it is our very knowledge and continuous learning that can be as Mastracci says to convert it to "financial capital " on your balance sheet. However, the challenge is using our human capital efficiently so that as people don't waste their most precious asset through bad financial habits.
2) Pay Yourself First
I am in total agreement as budgeting is crucial to preparing for financial success. Through paying yourself before you expenses you are insuring a basic growth of your capital.
3) Avoid Debt Traps
As I learned from Kiyosaki, is that we all fall into a perpetuating rate race, which negatively impacts our well being. Understanding your balance sheet is essential in recognizing spending habits that are destructive, which comes down to gaining financial knowledge.
4) Learn to invest
Wayne Gretzky my all time favorite hockey player said it best "You'll always miss 100% of the shots you don't take. " If you do not try you do not learn and if you do not learn you do not grow.
I really liked Mastracci's idea of being involved in Financial investment clubs as they are a great way to learn from one another about investment topics and investments available. I feel strongly that knowledge comes from text books but true applicable knowledge comes from experience.
5) Stick with the basics
As Mastracci said which echos Kiyosaki's Rich Dad Poor Dad,"put the excitement in other parts of your life" not into your financial independence. Simplistic structured investing may be boring but boring is what will get you success in the long run.

I really enjoyed reading this article as it emphasizes the basic principles that people tend not know or ignore. These steps are the building blocks for success and everyone should practice these principles.

Thank you,

Robert Madzej

Monday, July 21, 2008

Robert Madzej- The Phone Call

Have you ever called some random phone number to ask an arbitrary question? Well, I did but I did not do it willingly, let a lone knowingly. I was at Earl’s offices and he was teaching me how to engage peoples’ interests and how to serve those needs. I was in the process of absorbing the information that he was teaching me until he asked me if I wanted to try something, I said sure. He then grabbed his phone and dialed a random number and told me to ask the person on the phone what movie they would recommend watching. I felt my heart beating twice a fast as I looked right at Earl thinking maybe he was kidding, but it only took a few seconds to realize he was not joking. So I waited as the phone rang praying that no one would pick up the phone and as time went by and the phone continued to ring I thought god had answered my prayers… or so I thought.

An old lady had picked up the phone and in that moment I decided to push the fear aside and I began by introducing myself. The old lady replied and ask how I was doing and at that point I asked her what movie would she recommend. She told me she doesn’t watch movies so I asked if she watches TV and she said she does but she doesn’t watch movies on TV. So I asked her what show could she recommend and she told me she likes “Who wants to be a Millionaire” and “Jeopardy”. My task was completed, I received an answer to my question and I thanked the nice lady for her time and I hung up.

What did I learn:
1) Being put on the spot gives me a huge RUSH!
2) I can speak to anybody it is only fear that stops me.
- Fear plagues us all which has the ability to limit our potential and our success, but Fear can also be a positive because fear simply hightens our senses and is a protective mechanism that lets us know we are alive. However, one needs to condition themselves that the only fear there is, is the fear of not doing.
3) It is only through asking questions will you be able to find out peoples’ needs.
- Asking questions allows you to build a rapport with people by showing interest in them. The more you ask the more you will receive is truly based on the information they share with you. The more you know about people the more they are willing to tell you about their needs providing a window of opportunity.
4) When you find out the needs you can then provide a solution to those needs, which people are more willing to listen to.
- When you build rapport with people and you are able to identify required needs then when you provide a solution ,people listen. This creates opportunity by simply asking and then listening.

This lesson is one everyone can practice and learn from. If I can do it so can you, have fun Phone Calling!!!!

Thank you,

Robert Madzej

Monday, July 14, 2008

Earl Flormata - Evolution of an Asset

When I was a child, I spake as a child, I understood as a child; but when I became a man, I put away childish things. - 1st Corinthians 13:11

Unfortunately for many people, as children - their parents never learned the ways of money and instead were taught to be workers for those that knew the patterns of the rich.

This is one of the reasons why I run Cash Flow 101 game nights. Robert Kiyosaki has created a spectacular learning and teaching tool within the game that allows everyone from every level to learn and grow.

From T. Harv Eker’s book – Secrets of the Millionaire Mind, Harv mentions the three most dangerous words in the English Language – “I know already”. I know that I’m guilty of uttering that phrase myself, so from time to time I do check and challenge myself to live by the adage of C.A.N.E.I. – Constant and Never Ending Improvement.

In that vein – I present to you, my readers and peers – my new understanding of the word “asset”. In the beginning, I understood that an asset to be something that which you own.


The dictionary says: “property owned by a person or company” – which does back up my original understanding and thought process. The banks had also cemented this original thought process by asking me to list my assets prior to obtaining a loan. Their definition of an asset was also something that I owned of value.

Then I read the book Rich Dad Poor Dad by Robert Kiyosaki, and that changed my life. The word ASSET soon changed meaning for me into something that puts money in your pocket. It took awhile to break from the mindset of having a house as your single largest asset to one of our largest liabilities, but eventually the thought sank in and I was able to reach financial freedom.

Then things took a turn for the worse and a few of my investments collapsed and my income dropped drastically alongside of this. Luckily I was taken under the wing of an investment banking group that again changed my perception of the world at large.

My learning continued and soon I understood the requirements for a stock to graduate to a senior exchange. With this path of thought, the bankers taught me to really take a look at “collateral” and that if something wasn’t leveragable, then the amount of value that it brought to the table was limited to a single dimension and prone to failure.

So what’s my new definition of an asset?

It’s moved from that which you own to that which you can leverage, AND brings in multiple streams of income.

Monday, July 7, 2008

Earl Flormata - Book Review: Secrets of the Millionaire Mind

Another few weeks - another book read. This time, I finally got around to reading the Secrets of the Millionaire Mind - by T. Harv Eker.

I'll admit to thinking at first that this was just another one of those ra-ra think happy thoughts and good things will happen to you books, and to be honest for the most part it was, until the message started sinking through about the level of commitment that one must have to attaining any goal - be it financial freedom or otherwise.

3.5 Major things I've learned:

1) The whole mindset around money for individuals must be examined before attempting a run for their first million. Without the proper "blueprint" as the book puts it, the tools don't matter.

If you are resentful against rich people - you can never become rich yourself (because who would want to resent themselves?). So, your mission should you choose to accept it: go and meet and get to know real rich people. You'll find that many of them are the most welcoming and generous people out there.

2) Mantras or Declarations

Repetition of a set of key words, or phrases is key to embedding it into your belief system.
When I was training martial arts - one of the first things that we had to learn was the student creed. It was something that has stuck with me in memory and in spirit throughout my years.

I will develop myself in a positive manner, and avoid anything that would reduce my mental growth or my physical health.

I will develop self discipline in order to bring out the best in myself and others.

I will use what I learn in class constructively and defensively to help myself and my fellow man, and never to be to abusive or offensive.

Funny how that sounds a lot like the iPoint Mantra
To Educate, To Serve, To Profit Together.
Perhaps it's time that I went back to reciting a creed of some sort.

3) Use your God given talents!

The book quotes Acres of Diamonds:

...We preach against covetousness... in the pulpit... and use the terms... "filthy lucre" so extremely that Christians get the idea that... it is wicked for any man to have money.
Money is power, and you ought to be reasonably ambitious to have it! You ought because you can do more good with it than you can without it. Money printed your Bibles, money builds your churches, money sends your missionaries, and money pays your preachers.... I Say, then, you ought to have money. If you can honestly attain unto riches.... it is your ... godly duty to do so. It is an awful mistake of these pious people to think you must be awfully poor in order to be pious

I love this part of the quote. "Godly duty to do so". My only true ability seems to be simplifying the complicated, and presenting it in a manner that compels people to take action to learn more. If that's my gift - then I commit to serving others - and helping people find ways to reach their Infiniti Point.

3.5) Want, Choose, Commit - 3 levels of dedication

Stealing a counting system from Gitomer - there are truly 3 levels of dedication in this world.


I want is the rudimentary - it'd be nice to have, but I'm not willing to REALLY work for it.
I choose is the next step - electing to learn more and do better, however...
I commit - forfeiting every other possibility save for the goal in mind - is the only tried and true way of making what you want to happen, happen.

So hear this - should I take you on as an Infiniti Point member - I require that you raise to the same level of commitment to educating yourself, as I commit to giving you access to the resources I have at my command to bringing you towards Infinity.

Thanks for the book and the inspiration Harv.

Thanks for Reading,
Earl Flormata