Real Example of Margin Loan

Last December 2, 2011, I borrowed money from Citiseconline and bought SCC shares. This kind of loan is called margin loan. I bought the stock at 209 per share and now the current price is 213 already. I plan to sell it on Monday so that I can take my profits from it.

Make no mistake about it, margin loans are too risky for investors and this is not for everybody. You need to seek the advice of your consultant before plunging into it. In fact, if you don’t know anything about stock market, I advice don’t do it. You need to know a lot of the seasonality of the stock market, the fundamentals, the technical and your own research.

I just wanted to share how the computation of the interest on this margin loan. Let me provide a real example on this. But before that, just remember these two things. Borrowed money + interest = Total cost. Just stick to that. Borrowed money + interest = total cost. My goal is to sell the SCC shares more than the total cost I borrowed and take the profit.

Computation of interest is like this: (Amount Borrowed * No. of Days * 18%) / 365 days) + 12%VAT.

OK, here is the real example of it. If you have an excel sheet and just copy the formulas I presented here, you will have a clearer picture when you do your own computation.

Borrowed Money	100,615.95
No. of Days of Borrowed Money	(Dec 11 minus Dec 2)                                  9 days
Interest	18% per year
No of Days in one Year	365
Interest	(100,615.95 x 9 days x 18% ÷ 365 days)      446.57
VAT	(446.57 x 12%)                                             53.59
Total Interest Cost	101,116.11

My total interest cost for 9 days is 500.16. When you sell, you incur tax again. My previous computation on selling transaction cost is 0.795% of the stock value. So, that is another cost to consider. If I will sell my 480 SCC shares at 213, the total value is 102,240. Selling cost would be 812.80 (102,240 x 0.795%).

Stock Value - Total Interest Cost - Selling Cost = Profit

102,240 – 101,116.11 – 812.80 = 311.09

My profit for 9 days is 311.09 without spending any pesos. Not bad. My prepaid card for the week is covered because of this. Wink.

If you are not prepared to go through the emotional roller coaster ride just in case the stock go down, ignore this margin loan.

“There are risks that you cannot afford to take, but there are also risks that you cannot afford not to take”.

7-Eleven launches OFW investment program

Source: Manila Bulletin

MANILA, Philippines — Returning overseas Filipino workers who yearn for long-term financial growth in their homeland now have the chance to finance their own small business investment and become successful entrepreneurs as world-renowned convenience store chain giant 7-Eleven launches a special franchise program for OFW applicants.

The special program, according to Francis Medina, Business Development Manager of Philippine Seven Corp. (PSC), allows OFWs to explore their own income-generating business option by using their remittances as significant “investment tools.”

“Studies have shown that OFWs nowadays no longer concentrate their remittances solely for their families’ basic consumption; in fact, most have used or saved up their remittances to finance other future pre-needs or necessities such as education, housing or land properties, health and small private businesses,” he noted.

“And with the population of migrant Filipino workers growing at 5% per year as they spread across various continents in the globe, imagine the overall buffering effect to the country’s economy, more importantly to the improvement of the quality of life of OFWs and their families, if their earnings or savings are channeled to finance potentially lucrative alternative business ventures such as a viable convenience store franchise,” said Medina.

Apart from the rewarding aspects of owning their own 7-Eleven franchise, like finally achieving a steady income or livelihood for them and their loved ones, Medina said that investing their earnings on a viable franchise investment option is one great way of helping the country spur local economic development and generate jobs back home.

“By becoming 7-Eleven franchisees through a special franchise program that is unique and proven reliable, OFWs can look forward to a brighter and stable future as the company will arm them with the necessary technical support, financial management, including knowledge and skills training for them to fully understand the trade as they make a successful career in entrepreneurship,” he added.
Medina noted that because OFWs are hardworking, resourceful, compliant, reliable and service-oriented, they make excellent candidates for the 7-Eleven business model just like their successful operators. He also added that because of these qualities, along with their flexibility, commitment, discipline, work ethics and sense of responsibility, OFW partners are sure to propel the growth of the franchise business.
“Being a 7-Eleven franchisee is an ideal way for OFWs to build their future right in their homeland. By investing their hard-earned money on a proven brand that works as hard as they do, they can be sure of a mutual partnership that works towards the achievement of a better, more secure future for themselves and their loved ones,” said Medina.

There is Wealth in Garbage

Have you read in a broadsheet about banks selling their foreclosed properties? What did you feel? You know my first feeling about this is, “who the hell cared about it!” I immediately flipped onto the next page and see the latest news in sports. If there are properties I normally looked at the classified sections of broadsheets are the rooms for rent or bed spaces. Those are the classified ads I can afford. Forget about the condos for sale or for rent, the apartments for sale or for rent, the townhouses for sale or for rent, the houses for sale or for rent and the land for sale or for rent. Forget about them because all could afford in buying a real estate in my 25,000 pesos salary is a bed space or even a small room if the landlord will give in to my plea of giving me a discount on rent. You see, I am not even in the buying level. I’m still in the renting level and in the renting level, all I could afford is a bed space or room for rent. Oftentimes, I feel pathetic. I feel sorry about myself. All I could muster when checking the classifieds section is how in the world I can buy those properties. Perhaps not in my lifetime, I guess.

Two years have passed and I bought my first real estate. It’s a small land in our province covered with lahar. Yes, my first real estate investment is a lahar covered agriculture land. It’s a deserted land who perhaps the only plants I can put on is sugarcane. Well, actually you can plant other trees and vegetables as well but in that area, the common plant being cultivated is sugarcane. Thus, we planted it with sugarcane and my father managed it. Every year, it is giving around 80,000 pesos in extra money to us.

How I was able to purchase my first real estate? My salary is only 25,000 and I have a small savings around 20,000.

The Opportunity

·         When our province was ravaged by lahar, the value of the land is almost zero. Yes, it’s almost worthless that some owners are selling it for 10 pesos per square meter. Since most of the livelihoods of the people were destroyed already, the people moved in to the resettlement area where concrete houses were provided by the government. In need of cash and nobody seems to care whether the town will ever get up again, some people tried to raise cash by selling whatever is left in their properties. And those properties include vast hectares of lands.

·         Everyone is down and nobody wants to buy the lands. Who in the world would buy a land covered with lahar? Nobody knows when will Mt. Pinatubo strikes again. It will be a crazy decision on those days.

There is Wealth in Garbage

·         I remember the chairman of the board of the Company I worked before. He said that there is wealth in trash, or in garbage. He is actually referring to the current location of our Company. In that place erects a two storey building filled with a number of companies. The environment was conducive to work and the building is a great place to rest as well.

·         A few years ago, the land of which our company is located is a garbage filled land. Flies are all over the place and the place is covered with bad smell. Dirty little water passages behind are not good to the eyes. I myself also would not dare live there! It’s just a filthy, bad smelling place with rotten leftovers from all city’s waste. But look at it now; it’s one of the beautiful structures along the main road with proud companies displaying their logo at the main entrance. What a transformation!

·          I got that idea from him. Thus, I asked my father if there are still people selling land. He said “yes”. Mang Pedro’s land which is located 100 meters from the road is being sold.

·          “Ok, tay. E kung bilhin kaya natin yung lupa. Down tayo ng 20,000 pesos and the rest hulugan nalang natin. At least may pera siya buwan buwan” I said to him. “Sige, sabihin ko sa kanya”, my father told me. On the next day my father went home bringing the good news. Mang Pedro is agreeing with the terms.

Transformation

·         For two years, I am giving 5,000 pesos to Mang Pedro until the payment is finished. While we are paying the monthly dues to Mang Pedro, my father started to cultivate the land. We hired tractor here and there and leveled the land so that vehicles can be accommodated.

·         After cultivating and cleaning the land after almost one month, we are now ready to put up the sugarcane.

 

Bottomline:

·         Dream big but start small. “Great things start from small beginnings” ika nga ng Milo.

·         Life is full of abundance. You just need to look for it or search for it. No, you don’t have to search for it actually. Just look around and recognize the millions of opportunities lying around.

·         Wealth is in every corner of our eyes, we are just being blinded with our own perspective of wealth.

·         The next time you look at garbage, there might be some wealth waiting for you to discover. 

What are Hot Money in the Stock Market?

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To put it simply, these are the foreign investments inflow in Philippine Stock Market. They are so called hot money because they can be pulled out easily from the stock market. The top five foreign investors came from the US, the United Kingdom, Singapore, Luxembourg and Hong Kong. Data from the Bangko Sentral ng Pilipinas (BSP) showed that as of August 19, 2011 FPI or hot money yielded a net inflow of $3.065 billion, up 99.6 percent from $756.58 million a year ago. 


The stock market recently experienced downturns in the month of August. It went down heavily and small investors like me sweated profusely waiting for the chaos to stop. Thankfully, this week we have seen some upswing in the market and I think the bullish market is about to unfold. 


The bloody August we have experienced is because of the hot money pulled out from the stock market. The foreign investors got scared because they fear that US might go in recession again. Coupled with the US Debt downgrade and European Debt Crisis, foreign investors pulled out their money from the stock market.


Foreign investors are unlike the average Filipino investors; they (foreign investors) are not that concerned about the losses recorded as long as they can still get some value out of the market.


There is nothing wrong with the fundamentals of our stock market. The problem is most of us Filipinos do not know how to invest in the stock market. There is no real or new money coming into the market, particularly for long term investment. 


What drives the stock market right now are the hot money from foreign investors that have the funds to move the market.We’re part of the global economy so we really cannot limit our exposure to foreign funds. There is a limit of liquidity we can get from Filipino investors. So it is best to open our market to foreigners. It will actually help the economy as a whole because it means that investors have confidence in our economy and we should encourage them to come in and leave when they want. I think the important thing is to manage the inflow and outflow of foreign funds so that it doesn’t come in as hot money which will give the market a boost at one point and also expose the market to global risk.


http://www.manilatimes.net/index.php/business/6227-hot-money-inflows-nearly-double-halfway-through-august
http://www.philstar.com/Article.aspx?articleId=715842&publicationSubCategoryId=63

My Only Tip in Stock Market Investing

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The only tip I can give for investors is to buy when the prices are low and sell when it is high. In other words, be fearful when others are greedy and be greedy when others are fearful!


That fundamental is very simple and yet most of the  investors failed to act on it (including me). When there is a crisis like what happened in the financial crisis way back in 2008, most of the stocks are down. It's like going to Divisoria and buy branded clothes at the price of the ukay ukay clothes (cheap clothes). And yet most of the time when the prices are low we keep ourselves at the sidelines waiting for it to go up or stabilize.  By the time we buy, it is already high and by the time e knew it, the stock market is going down already. It's silly to be on that kind of situation and that is what happened to most of us. At the end of the day, we lose money and defeat the purpose of investing. I've been there.

If your plan is to save money for your house five years from now. Just ignore the news and let your investments ride the bear and bull market. Since your purpose is to accumulate funds for building your house, stick to that  goal.

Last week , we've seen the stock market skydive to abnormal levels. It is even in the prime time news. This signifies that there is an extraordinary movement in the stock market. Otherwise, stock market will just go on in his life trading casually everyday.

Since the stock market is at very low level, it's time to plunge in. No, don't sell your house yet or borrow enormous money from your uncle to put in the stock market. If you have extra cash and is willing to try out the stock market, then please do so.

I was at this stage before when I was skeptical about stock market. And yet I gave it a try because I don't have anything to lose because my first investment is 25,000 pesos only. Through the years as I have learned and rode the rudiments of stock market investing, I began to discover new things and perspective.

In one year, my income from stock market is 100,000 pesos. Now do not roll those eyes yet. What I did is I made the stock market my savings account. Every month, I am putting a portion of my salary to the stock market.

You know, whenever I see the stock market go up, I am happy because I will be able to sell at a profit. When the stock market is down, I am more happy because I will be able to buy cheap prices. I don't sell stocks during the crisis because I am a long term investor. Let the market lose their money. My money is also down but only in paper. Sooner it will go up.

My strategy: Sell when it is high and buy when it is down.

What Do AA+ And AAA Credit Ratings Mean?

By Sham Gad of Investopedia.com

Anyone with a pulse was kept awake thanks to the Friday, August 5, 9 p.m. Eastern Standard Time announcement by Standard & Poor's that it was downgrading the U.S. debt from AAA to AA+. The news sent shock waves across the world, and those vibrations were even louder that following Monday, which left the market down over 6% by the end of the day. Yet that market decline was benign compared to the individual beatings some stocks endured.

What Does AA+ Mean?In terms of the U.S. paying its debt obligations, a drop from AAA to AA+ is noneventful. The U.S. 10-year bond yield was down 0.2%, meaning that investors actually flocked to the safety of Treasuries. The fact that the U.S., the world's largest economy, went from AAA to AA+ for the first time in history is the big deal. In terms of stature, the downgrade was painful. What that loss of AAA prestige means for investors going forward is anyone's guess. The $64 million question now is whether the other major rating agencies, Moody's (NYSE:MCO) and Fitch, will follow S&P and issue their own downgrades. Naturally, affirmation by one or two of the other rating houses would not be a good thing.

What Does AAA Mean?

Apparently, an AAA credit rating isn't spectacular either, at least not now. As it now stands, only four U.S. corporations have a AAA rating: Microsoft (Nasdaq:MSFT), Exxon Mobil (NYSE:XOM), Johnson & Johnson (NYSE:JNJ) and Automatic Data Processing (Nasdaq:ADP). As the S&P plummeted 6%, having a AAA credit rating didn't mean much. Exxon shares declined by over 6% thanks in part to oil dropping to $81 a barrel. Microsoft shares, despite having what the government would call a surplus of nearly $30 billion, dropped nearly 5%. The best performer was JNJ, which managed to end the day off only 2.5%.

The Bottom Line

So whether you hold an AAA or AA+ rating, the difference didn't seem to matter. The market was upset and emotional, and the result was a panic-driven day like the end of 2008. What always matters in this game is valuation and patience. Sticking to the simple philosophy of buying an asset below its long-term intrinsic value will ultimately lead to satisfactory results. It's a philosophy that is indeed simple to understand yet difficult to execute for most investors. But Mr. Market may be giving investors another opportunity to get greedy.

My Stock Picks for this Month

I've been checking the blue chip companies lately and I have selected the best companies that has the most growth potential.

Below are my stock picks for the month of August. The current price are the stock price of the companies as of yesterday. I obtained the outstanding shares from the latest financial statements submitted to PSE and that is mainly the 1st quarter unaudited financial statements. To make the computation simple, I just multiply the 1st quarter income into 4 to get the Earnings Per Share (EPS) Annualized. 

I picked the company with the highest growth potential based only on the recent high price occurred in July.

The picks may not reflect the sentiment of the investors and may even contradict the direction of the Philippine Stock Market in general. These are my personal opinions and you can have a different set of pick.

The above picture is a simple computation which can be done by the laymen.

My hope is that everyone of us would someday achieve the financial freedom we are aiming for.

To Our Financial Freedom!

What You Must Avoid

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It is natural that when the unforeseen happens we are far more likely to react in a negative way. However this need not be so, this blog reveals ways to achieve your goal harmoniously and diligently.

The following are some pointers that will be most helpful:

1. When things go wrong do not overreact. Think positively and calmly.

2. Do not be over judgmental, and over critical.

3. Try not to ignore a bad situation, beware of the comfort zone.

4. Wisdom and strength alone can help you overcome much of life’s imminent problems.

5. Tackle problems head on.

6. Avoid greed and conceit of any kind.

There is a business ethics and a businessman should practice this ethics. Those who are strictly honest and truthful will flourish in business. Let us once again consider art as an example to highlight what has been discussed thus far. As we all know we have innate powers – within each and everyone of us lies the storehouse of latent energy bursting to be ‘awakened’.

Let us assume that you have the creative power, and that being an artist for example you can virtually paint and draw any subject or theme.

Fair enough, it is obvious that you have considerable talent as not all artists have this ability. Since you are aware of this, you may assume that because your artwork is good it has good potential to be sold. True, but let us consider all factors that need to be taken into account a step at a time.

1. You may be a very good artist, but if your work does not get noticed and appreciated, it is of no real benefit. It is important therefore that your work gets noticed (through maximum exposure) and the way to do this is get your name established.

This requires that you contact the right sources and approach artists who have been through the ‘same’ learning curve as it were to reach the path of prosperity. You must take into consideration competition that may exist in your chosen field. You must prepare a good foundation – this can be done using the information within the pages of this blog.

2. Your artwork may be exceptionally beautiful, but without understanding the dynamics of the market place your work may not blossom.

3. From your personal perspective your work may seem to have great potential. However, it is relevant to appreciate the views of the general public – in other words your potential buyers.

Do not get into the rut that most do, “hearing what we want to hear” this is a type of preconditioning that can bring untold misery.

4. You must look into other areas to develop your potential. Expand on subject category/theme, use of various different types of media (e.g. acrylics, oils. Mixed media etc.), deciding on how to promote your work, you may even want to sell originals or reproduce prints perhaps… The possibilities are endless, the question is how determined you are in your quest to succeed.

The psychology of success depends on number of factors, but the one I believe that is most vital is self-belief. Most people never get the first stage of success because they lack this characteristic, which is essential.
Such conditioning often stems from your personal experiences, but the causative factor is environment, which has already been discussed. Though it is good to be cautious about anything that you do in life, it is equally essential that you do not get tangled into the technicalities of the ‘process’, but rather focus on the benefits and the ultimate reward that it yields.

Dedicate your goal to achieving success by implementing the five cardinal words beginning with the letter D to your success, namely Devotion, Discrimination, Discipline, Determination and Duty.

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There is no harm in raising questions regarding proposals that come your way or even business opportunities you intend pursuing. So long as these questions afford all the answers and that you decide to follow through considering all the factors, then it is all well and good.

However, when your questions defeat the very purpose of your inquiry then it becomes a ‘vicious cycle’.
Why, what, where, when, who are words that we often use to ascertain information about everything in life including business ventures – thus giving rise to questions

The question with the word why is a necessity for it will help us draw a perfect conclusion and help us overcome doubts. The problem with this is that if you are not clear about your goal(s), then the very question why you wish to even pursue the venture becomes meaningless.

What you must consider are probable long-term goals, benefits and how your first step to wealth and success will enable you to enjoy greater heights.

The Risk Factor

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Without digressing from the subject matter, I would like to remind you what I mentioned in the early stages of this blog regarding the dualistic nature of life.

Why is it that some people are so lucky and yet others fall behind in the struggle to succeed?

To answer this conclusively it is worth noting that in general majority of people have the notion that affluent people have something special which they obviously lack – This is not true as we all know, however what makes one person richer than the other is largely dependant on the choice or the decision taken, coupled with the risk(s) acknowledged through the greater understanding of the power of discrimination, and the ability to weigh and balance the scales of your intuitive faculty.

Now the risk that you take has got to be one based on the understanding that the venture you have decided to pursue has been researched thoroughly. You only embark upon taking a driving test for example once you feel that you are proficient enough to pass it and not otherwise.

Thus, the risk that you undertake in this regard has got to be what I call an informed risk. In other words, it is one where you have confidence on what you are getting yourself into, and this too is based on information source that you have searched well.

The fact that you are now reading this blog is to gain the understanding on how to achieve financial success – thus this blog is in a way your research tool to enable you to then implement the techniques and the tips outlined to achieve the goal. The action taken has therefore come directly from a source that can be considered authentic, valuable and genuine.

Once you feel confident to take the driving test with the guidance of the driving instructor of course, you decide to take the driving test – this is the perfect way to ensure success. I wish to redress a point made previously and it is about learning.

You must be willing to learn constantly, because to gain any skill, knowledge and power, you must be prepared to LEARN.

Commitment is the vital force which you should very much get used to from the very onset. Remember that there are certain situations that you may not have direct control to bring any foreseeable changes, which may result in much heartache.

However, this need not ever be the case because what really matters is the mechanism or the manner in which you control the situation and ultimately how well you react to it.

The trouble with us is that we tend to live in the past and in the future at the same time. When our mental faculty becomes over burdened we become discouraged.

The load is too heavy for the mind, so we must restrict the load. When we have too much to do at one time, we should at once stop our activities. The clock ticks on at a regular pace, it cannot tick twenty four hours away in 60 seconds, nor can you do in one hour what you can do most effectively in twenty four hours. Live for the now, and the ‘future’ will take care of itself.

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Do not be greedy and above all do not burn yourself out by ‘wanting’ to become a millionaire!

The tables have turned around, more and more people are resorting to a simple back to basics lifestyle – without so many luxuries and fewer worries

The dualistic concept of nature is prevalent everywhere – you cannot prosper if you write out cheques without having credible funds or credit (deposit) in your bank account, sooner or later you will run out of money.
Without peace of mind, the likely hood of running out of ‘steam’, happiness, calmness and strength you will become ‘bankrupt’ mentally, emotionally, spiritually and physically drained. What a pity it will have all been to come to a point of utter desolation!

This is when you must dwell on the power within, and mentally affirm your purpose in life; you may want to go through some pleasant experience so that you forget your worries completely. The point is do not take anything too seriously, enjoy what you have and be happy with what is your due.

Factors That Bring Inertia

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First and foremost is to introspect, and this literally means that you take stock of your traits and habits.

Often, lack of self-analysis is the cause of our short fall, and it is the lack of definite, undivided effort and attention that stands in your way to progress and achievement of your desired goal.

Introspection therefore means reassessment of our mental ‘block’ and diagnosing deficiencies by weeding out negative tendencies in the form of habits, indecisiveness, fear, lack of confidence and so on – what we often term as failures.

It is time to reenergize so that by uprooting all these negativities from your life the true happiness with the zeal to progress becomes prominent and firmly rooted.

The greatest enemy that stops us from advancing in life other than apathy, lack of confidence and inferiority complex is FEAR. Fear will literally stop us from moving forward – in fact we will not even fulfill our very aim to succeed. The best way to combat fear is to practice deep breathing exercises, and every night mentally affirm that you are under the protection of the supreme personality of godhead, and energize your thoughts with positive feelings.

Consciously uproot the seeds of fear from within by forceful concentration upon courage, and shift your awareness to a level that allows you to fully appreciate that you are beyond any type or kind of hurting. Fear comes from the heart, so fill your heart with LOVE, and when you feel agitated relax, calm down and breathe rhythmically, relaxing with each exhalation.

Of course there is yet another problem, which I believe, is the major cause of frustration and subsequently dampening our ability to excel in life. It is, what I call ‘desirous of results without the will to put in the effort’. I have personally failed because of such a negative outlook – and I am the first one to admit this openly.
Now this is where the point I made above becomes clearer. Failure, sorrow, illness and inadequacies are natural eventualities when the Law of Nature is broken.

Transgression and violation of the eternal Law of nature brings misery. As human beings we have the abilities to shape, correct and change our lives, goals and destiny.

The greatest impediment that you will ever meet in your life is your immediate environment. If anything you will have to change that – you may have noticed that I started this blog sounding slightly cynical and somewhat over cautious, much less a little negative – the prime reason for this will now become apparent.

The environment that I just mentioned can be defined into two, namely the inner and the outer. It is these two fields of environment that you will have to watch out for.

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All your experiences come from your mind stuff – or the inner environment (thoughts). What you perceive through all your senses from the outside will equally shape your future.

Thus the important point here is to keep watch over your thoughts. My suggestion to you is to beware of your inner environment more so than your outer environment. For example you may have stumbled upon a great home business opportunity that is potentially superb and just right for you in every aspect.

You are happy, and quite willing to give it a go…yet in retrospect something about this business ‘stops’ you from going ahead with it. There may be several reasons for this, but I am very curious to learn the major reason. Rest assured it cannot be the money (because it is within your budget), nor can it be a hype (because it has apparently worked for thousands with testimonials to confirm).

So what is it I wonder? Think about this point, and you will no doubt come to a favorable conclusion…and surprisingly it is, the mind stuff – the perpetrator.

To succeed in life you will have to begin by correcting your thought patterns, because it is the company of your thoughts and the affinity you have for them that will determine your fate.

“Thoughts express through the physical body.”

The Power of Thoughts

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Nothing in life is impossible, unless you think it so. Thoughts are remarkable ‘packets’ of energy and if you tenaciously cling to a certain thought with the dynamic willpower, there is no reason why this thought cannot manifest according to the blueprint you have created.

Earlier I briefly mentioned by explaining how a person interested in art can step up his/her abilities to excel in life. I shall now use the same example to illustrate the power of thought. An artist develops an idea of creating a painting or a drawing of a beautiful landscape.

The thought process initiates a series of ideas and the artist subsequently uses these ideas to produce the skeleton work, which allows him/her to eventually complete the final work of art according to the mental blueprint created initially. A mere thought process allows the artist to create the masterpiece!

This creation is in itself a scientific principal based on the Universal Law Of Creation. It is the source from which everything manifests. It is in us all, and it can certainly be tapped if you are just willing to give it a go. The secret is not really a secret, but it is a treasure trove within each and every one of us and we have the right to use it most efficaciously.

Is it not true that when you see someone so very happy and elated, your mind gets caught up with the cheer and you discover that there is a smile on your face?

The thoughts are so closely interweaved with the mind. If the thoughts are calm the mind is calm. In any aspect of life, be it starting a business, getting your first job or getting married, the relationship of mind and thought is foremost.

Systematically, therefore we must train and discipline the mind for right thinking and diligent activity, and thus have correct understanding of what you really want in life, and how this will add to the effectual dynamism in your quest and what you ultimately seek – your path to success and wealth will become gracious, meaningful and attainable!
People with certain qualities are almost magnetically attracted, and such qualities are called positive qualities. These qualities are present in all of us, but they are not invoked or clearly understood. We know what love, kindness, courage and joy mean, these are noble virtues, and we also recognize them as qualities we admire in others.

Despite knowing this, when we act we act compromising ideals. The reason behind this is that we are never true to our own selves – we are constantly acting and putting up a ‘show’ to please everyone around us, but ourselves! It is painful, demoralizing and quite agonizing not to be your true self.

You may exclaim in disbelief, and sat what has this got to do with wealth and prosperity? I acknowledge your concern, but I humbly request that you take a moment or two, and in the silence of the night ruminate over this point deeply. I would like you then to implement what I mentioned above by being yourself.
Notice the changes that occur with the passage of time, and what you will truly discover is that when one can bring out into expression the fragrance of one’s innate positive qualities or characteristics (of who you really are), then not only people but all the things that you have ever desired or wished for will come to you.
“As the thought, so the mind.”

In order to fulfill your set goals and your dreams, it is necessary to practice what this blog outlines.

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The habitual inclination of our thought patterns is ultimately the deciding factor, which determines our abilities, talents and our personal characteristics. Based on this critical and vital piece of knowledge, one assumes that those lucky few have been born with the special talent you lack and fervently desire to have.

To a large extent this is true, but it has to be said that no one is born a millionaire – full stop! The valuable information lies in the art of cultivating the pattern that brings success. We are what we think we are.

It is true when Masters say that, “Your Thoughts create the environment”.

• Thoughts develop personality

• Thoughts promote health

• Thoughts influence the body

• Thoughts can change and shape the future (destiny)

• Thoughts bring forth creation

• Thoughts influence the physiology and psychology of people

• Thoughts can bring success

• Thoughts can even heal the body

Watch your thoughts constantly. Your experiences and the environment have their ‘seat’ in thoughts.
Your suggestion, and autosuggestions via meditation and visualization techniques must be stronger than the ‘thoughts, and when your actions uplift you, know that you have understood the art of controlling your thought processes.

You can accomplish anything through the power of thought. Visualization uses your imagination to allow yourself to ‘picture’ your success or achieving your earnest goal.

Your mental thoughts or vibrations are incredibly powerful, because the mind has a tangible connection with your thoughts and your actions. Your thoughts are subtle energies and have a strong connection to our consciousness.
Therefore, constant nourishment of positive thoughts via visualization, yoga and meditation will bring harmony, happiness, health and wealth!

The Keys to Success

As I have mentioned in the previous blog, the environment plays a huge role as it is quite inevitable – particularly our inner environment.

A calm relaxed individual is far more likely to come out a winner in a trying situation than his/her counterpart – a person who his nervous frustrated and erratic. The former has his senses fully identified with the environment in which he places himself.

However, the restless individual does not understand the environment and consequently gets into trouble. The keywords are focus, concentration and care in whatever you do in life.

1. Develop a definite and a clear-cut goal/aim.

2. Draw up a wise workable plan/program.

3. Guard your health. Without health there is no real wealth.

4. You must conserve your energy.

5. Be honest in your life (in words, deeds, thoughts and actions).

6. Stick to virtues and adopt good principles.

7. Reflect upon ideal personalities and seek strength from their philosophy.

8. Seek divine guidance and be truthful.

9. Endeavor to help and serve others with gratitude.

10. Always think positive and believe in the power of God.

Transformative thinking is indeed the way to success. Set out a plan to achieve your goal and deliberately ruminate over the meaning of this plan and make it happen.

From time immemorial great people from all walks of life have emerged as true victors and the reason behind this is training the mind for happiness. Ethical discipline is essential, particularly self-discipline.

Each individual is unique. What is good for person A may not be suitable for person B. However, it has to be emphasized that all can enjoy quietude, solitude and silence, and to be honest every individual irrespective of age, caste, creed, color, sex has at some stage or another experienced peace.

After discovering through trial and error method, you can determine the precise way to compose your mind body complex and thus attain great heights.

Meditation may not be effective for all, but that does not mean that you do not improvise such methods as and when required.

Be systematic, and your only goal should be to employ methods that bring you success and happiness.
Our mental faculties determine our actions, and it is quite obvious that the mind should be tamed and subdued. Constant vigilance is necessary and continuous training of the mind will pave the path to ultimate success.

Do not fall prey to the dictates of your mind!

Optimistic, heroic and noble ideals have a powerful and uplifting effect upon the body. Enthusiasm with deliberate well-orchestrated self-application in joyous mood and absolute optimism is the secret path to wealth for all great men.

Achieving Your Goal

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When you persist refusing to accept failure, know that the object you have set out to achieve will materialize through the dynamic willpower.

Thoughts can be incredibly powerful tools, and if you are willing to implement this divine gift then you are sure to attain your goal. If you cling to a certain thought with dynamic willpower, it assumes a tangible outward form.
Now is the time to cauterize the negative characteristics inherent in the form of habits, lack of strong willpower, lack of confidence, hesitance and wrong attitude towards life in general. You have within you the power to accomplish everything you want, that power lies in the will. The root cause of failure in life is lack of concentration – do not hoard yourself with ideas, concepts and strategies all at once in the very hope to succeed. Begin slowly and be consistent in your goal setting scheme.

Focus your attention on one thing at a time, and do not allow your MIND to go in a state of ‘over drive’. There is a scientific way of utilizing concentration, and the magic word is to keep calm, while you perform all your duties with the correct speed.

Do NOT rush and create chaos, but rather methodically and meticulously focus and centre your whole mind on whatever you undertake, and the important thing is to keep your mind flexible.

Once you know that you are genuinely on the right tracks and on the path to achieving your goal, do exercise care as far as time management is concerned. It is often very easy to get involved with a project so much so that you can get carried away in perfecting whatever it is that you are doing.

You must prioritize your work and above all respect and honor the value of time – do not waste your time and your life!

Potential Consequences Had The U.S. Defaulted

By Marc Davis, Investopedia.com

With little time to spare, the U.S. government dodged a disastrous default on its debts, as the House and Senate passed an emergency bill to raise the country's debt ceiling and President Obama quickly signed it into law. The new legislation authorizes an increase of $2.4 trillion in additional government borrowing.

But what exactly would've happened or could've happened if a bi-partisan deal on raising the country's debt ceiling was not consummated? A default means that some or all of the people, businesses, institutions and governments that the U.S. owes money to would not be paid. They may be paid eventually, but not in the immediate wake of today's deadline when the U.S. would've  theoretically run out of money.

The Worst-Case Scenario
A worst-case scenario is depicted below, but none of this or only some of it might've occurred if the U.S. had defaulted.   Depending on how quickly and comprehensively the post-default problems were resolved, the U.S. economy may not have suffered a long-term crippling injury. In the most extreme case, it could take years or a decade or more for the economy to recover sufficiently after a government default for the U.S. to regain its formerly stable economic footing.

Money would continue to come in to the government, but not at the necessary rate to pay all its obligations because the debt ceiling of $14.3 trillion - the amount of money the U.S. may borrow, as mandated by law - would have been reached if the ceiling had not been raised.

Consequently, the government would have had to decide who gets paid and who doesn't. Entitlement programs might have been among the first to feel the cash crunch. Social Security, Medicare and Medicaid recipients might have been short changed.   Military veterans who receive pensions and other retired government workers, including legislators, judges, federal attorneys and others might have seen a reduction in their monthly checks. Defense contractors - the big firms that manufacture weaponry, aircraft, seagoing vessels - may also have been hit with partial payments of what the government owed them, or payment might have been suspended entirely until more money became available.

Another immediate consequence of a default is a lowering of America's credit rating by the major ratings agencies, Moody's and Standard & Poor's. That means with U.S. Treasuries deemed more risky, higher interest rates would have to be offered to attract lenders. The result of higher rates would ripple through the entire U.S. and global economies.

Impact on the Individual Consumer
For the individual consumer, there'd be higher rates for credit card purchases, mortgages, consumer loans of every variety. For businesses, both mature and start-up, higher rates would be charged for loans to expand, replenish inventory, purchase new technologies, hire more personnel. Stock prices would decline accordingly as economic growth is hampered. Venture capital, used to finance new businesses, would also become scarce as the economy slows, adding another obstacle to growth and employment.

Government funding of many programs which once stimulated economic growth would be curtailed or stopped. These would include government subsidies to industries such as agriculture, energy, transportation. Government grants and loans to college- and university-bound students would dry up, preventing gifted or financially strapped young people from getting a higher education and thus limiting their job opportunities.

As stock and real estate prices declined, endowment portfolios of colleges and universities would shrink, further limiting the funding of scholarship programs and student loans.

Primary research in technology, the sciences and medicine could also be impacted as both government and private sector money dried up.  There may be a reduction in the development and testing of new drugs. Patents for high tech inventions and copyrights for computer software applications, may not come as frequently as they did when these sectors were powerful drivers of a booming economy. 

Much needed infrastructure repair and rebuilding will of necessity be put on hold until more money became available to finance these projects.

A final result if this worst-case scenario had come to pass in all its horrifying economic damage, the U.S. standard of living would have declined unpleasantly, and the country's preeminent position in the world of economic stability and reliability, as a prime source of innovation in the sciences and technology, and as the most powerful nation militarily as a bulwark against war and aggression would be severely weakened. 

But, that's only if the worst occurs.

The Bottom Line
Almost all economists and a majority of both Democrats and Republicans and most political independents agree that the debt crisis had to be resolved andU.S. debt obligations had be paid. The points of disagreement were in the methods and numbers - should taxes go up or remain where they are, should tax loop holes and deductions be eliminated, where should government expenses be cut?  

These are the questions that the nation must confront again, if and when the higher debt ceiling is reached, which seems inevitable according to a consensus of economists if spending continues at its current pace and new government revenues are not obtained. If these problems are not solved, you can anticipate some or maybe all of the above calamities to befall the country with varying degrees of severity should the U.S. default on the new $2.4 trillion addition to the debt ceiling. 

Steps to Personal Wealth

Decision-making is perhaps the hardest step to get over with in your quest to begin the journey to wealth. The problem is until you do not delve deep within yourself to unlock your innate qualities chances are that you will be indecisive and hesitant. This is not wrong as such, but more often than not this ‘feeling’ may not allow you to maximize your full potential.

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There is no secret to unleashing your full-blown potential – the ‘secret’ lies in your willingness to listen to your inner voice. The initiative to seize a good opportunity that comes your way is by undertaking the task in a methodical way.

Sit quietly, calm your senses and thoughts, and meditate deeply on the subject matter in question. Do not jump into anything at once just because the idea seems favorable. Most things appear very ‘good’ in the initial phase, but thinking, planning and time are a prerequisite. Often it is something within that will tell you what to do. The secret is not necessarily from without, but can be acquired from within.

Striving to do your very best at all times is the little secret that will help you amass wealth. Imagination (I mean constructive imagination) which is the power to visualize is an important factor in creative thought – but as you will appreciate you will not be able to do this without a strong will, and above all this faculty of visualization has to be ripened into firm belief and conviction.

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1. You must have the desire to achieve your goal of fame – this is rule number one.
2. Be prepared to handle money efficiently with respect to budget, expenditure and responsibility and/or accountability.
3. Do not spend more than you are required to and spend less than you make.
4. Personal problems, including addiction not only to drugs etc., can be ruinous. This is something that must be taken care of from the very onset.
5. Figure out ways to invest and above all begin to save money. You will have to play smart and get your priorities absolutely right.
In any venture, it is likely that you may face a lot of antagonism, a far cry from an idealistic situation. Over expectations, over optimism and the tendency to ‘wish’ that things run as planned, can and often may lead to failure.

Thus as mentioned earlier planning is very important to your success. Of course the other factors that one needs to consider also are over work and exhaustion. In the hope to make your millions, the probability is that you will become a frustrated wreck and become quite despondent – this will not be helpful in your progress or pursuit to wealth.

The Basic Steps

The following guidelines will help you pave a wonderful path to your ultimate success.

The steps are very simple to implement in your daily life.

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1. Do what you love and what you are good at.
2. Be prepared to learn and to be positive (motivation and enthusiasm).
3. Be an innovative individual.
4. Be prepared to invest not just money but your time, effort and resources, too.
I mentioned money – this does not mean that you have to invest a large sum to become a millionaire or wealthy.
5. You must be disciplined in having set goals and targets. Remember that persistence is the key to success.
6. You must be prepared to manage your time effectively.
7. As you evolve, learn to give back what you amass to the society. I call this philanthropy.

You must have a solid vision – one in which you ‘see’ yourself having attained success. Great people of the past and present see to it that they reach this coveted position, by employing these basic steps.

However, notice in step 2 I deliberately used the word ‘learn’, and that too for a very good reason. Life is the greatest teacher, thus you must be willing to accept challenges all the time (using the power of discrimination) and thus as a result you must learn via its eternal principles the magnificent doctrine it has revealed with the passing of time. This means that you must act when the time is right.

Action is incredibly important and highlights success – the two are synonymous to be quite honest. To succeed action is needed but the essential ingredient is how serious you are. Being too serious can ruin your business venture, so the point is to have FUN.

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Any discipline will require organization and orderliness. You must be prepared to listen to your inner voice as much as you possibly can. This means that rather than being too dependent on your family, friends and so on (not that this is bad) begin to have faith in your own capabilities.

Stand-alone and strive to learn and succeed. Often, failures may just result from instances where we have stopped exercising our own views, or we have become too dependent on others’.

Success is not some secret that you have to search for or unearth in order to reach your destination; it is rather the understanding or the recognition factor that you develop with respect to what you really want in life. Intuition, courage, skills, knowledge, challenges and opportunities are some of the concepts that determine the traits of people who enjoy wealth. Any task performed with the right spirit will give you victory. Mental attitude is what will give you success, but negative attitude, laziness and working unwillingly will result in failure.

Do not expect too much in too short a time, but your approach should be positive and execute your task with absolute perfection, paying particular attention to your long-term goal(s). This means that you approach your duty with concentrated energy and you execute your plans righteously. This should be your philosophy of life.
To begin a new venture, it vitally important that you realize the following, which I have to say is crucial. You have to appreciate the fact that to start a business you need to acquaint yourself with the term cash flow. Investment in the form of a capital is a requirement, but more importantly it is the concept of viability of the business venture that matters most.

Formula to Success

What you think and how you then act is the deciding factor that will help you discover the goal of success. These two attributes are important together with a set of consistent principles, which you follow through. Thoughts based on reason are a powerful catalyst to start any reaction, and once you set off, you will soon realize that courage is the simple virtue needed for a human being to traverse the rocky road.

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Obstacles are natural, and they are a means to the source of acquiring wealth, as I am sure you will agree. Persistence, patience and perseverance will have to be practiced religiously to reach the goal and to overcome the obstacles. Of course that said, I would now like to point out the P’s that you should frown upon.

Do not procrastinate, do not pretend that you know it all and finally do not prolong your ‘venture(s)’. Be prepared to fight the stumbling blocks that may confront you, but pursue your goal and allow your potential willpower to predominate.

In any situation in life, it is unequivocally important to remain level headed, despite all the ‘ups and the downs’ that we are likely to face. Remember life is dualistic by nature – the obverse and the reverse sides of the same coin to put it simply. I am compelled to add that though we know that the past is the cause and the present is the effect, it is self evident that with time the present itself becomes the cause with reference to the future.

There is a very deep meaning embroiled in this syntax, and if you can relate this to success, then it can be said that if we intelligently live in the scientific self-discipline, we can become the architects of our own future.