Thinking big

How to think big about your finances?

Money is an idea, thus we need to change our thinking in order to grow financially. 

It is a kind of spiritual snobbery that makes people think they can be happy without money – Albert Camus

• The Power of Focus – Use assets to buy luxuries
  • The process of developing cash flow from an asset column is easy in theory but hard in practice because of the external temptations and mental fortitude to direct money to the correct use.
• The Power of Myth – Choose Heros to follow
  • Warren  Buffet / Jim Rogers / Peter Lynch / George Soros…
• The Power of Giving – Teach and you shall receive 
  • The principle of reciprocity 
  • Give what you want 
  • Teach money to someone else – Finer distinctions and brainstorm a torrent of ideas 
• Stop and assess – Take breaks 
  • What working and what not 
• Search for Mentors 
  • Find someone who has done what you want to do and invite them to lunch
  • Ask for help
• Take classes and courses 
  • Learn from history
• Make a lot of offers 
  • People who are not investors have no idea what it feels to sell 
  • Offers 
    • Always with “Escape clauses” 
      • E.g.: Approval of business partner 
    • Never specify 
  • Process: Search, offer, reject, negotiate and accept

The financial markets generally are unpredictable. So one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market –  George Soros

• Searching 
  • You must go to the market and talk to a lot of people, make a lot of offers, counteroffers, negotiate, reject and accept
    • Similar to Dating
  • New investing ideas
    • Technical Investing
      • Call options 
      • Put options
      • Short selling 
      • Straddels
  • Right business 
  • The right people 
    • People who want to buy first, then look for someone who wants to sell 
      • Tie it to a contract 
      • Buy the pie and then cut it into pieces 
  • The right investors 
  • Good deals 
• Elements of Profitable Deal
  • Bargain –  Shop for bargains in all markets 
    • Profits are made in the buying
    • foreclosure auctions 
  • Change – turns the bargain into a profitable opportunity 
• Accounting world- The three Incomes 
  1. Earned income
  2. Portfolio income
  3. Passive income

The key to wealth is the ability to convert quickly Earned income into passive and portfolio income

How long are you going to wait before you demand the best for yourself? — Epictetus