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Simple Real Life Malaysian Strategies To Achieve Full Financial Independence



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Preface Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Fundamentals of Success - 9 Day Review Every Single Sen Counts : Savings Strategy The Six Money Secrets Understanding Your Expenses Short Term Job Requirement The Financial Freedom Goal : Setting the Stage Investing in Stocks & Unit Trusts Real Estate : Key Ingredient to Financial Freedom Internet - The Ultimate Money Making Machine Lets Set Your Overall Financial Freedom Strategy

6 7 12 14 18 25 33 39 47 53 75


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!


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 Physical Mastery Financial Mastery Rest&Play Mastery Prioritizing Mastery

Time Mastery


Goalsetting Mastery Computer Mastery



DAY ONE : EMOTIONAL MASTERY Virtually everything we do is to change the way we feel. In many instances including from my own experience, this is perhaps the most important mastery you must possess. In many cases people with so many talents, skills, education background fail miserably in their lives because they were not able to control their emotions. When I first achieved my full financial independence, I didnt know what else to do with my life and was looking for directions as to the meaning of life. Within an instant I destroyed all that I achieved then. I didnt need to work because money was coming in every month and I had all I needed, nobody to work for and didnt need to go anywhere. It can actually destroy you. Too many people let outside events take control of our emotions for no reason. Let me give you an example, the fact that your friend has now become more richer or more successful than you has left you ashamed and with a sense of defeat. Whereas this event is quite insignificant as you can change yourself and perhaps become even more successful in your life or perhaps you are already achieving more successes in other areas of

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.

DAY THREE : RELATIONSHIP MASTERY Whats the use of all the wealth and success if you cant share it with someone. Would you want to have all the money to travel around the world but with no one to go with. Sometime ago, I went to Paris somewhere in the 1990s. It was my dream then to see Paris, to go to the museums etc2. But as I was alone, I got bored fairly quick and went back to my hotel room for a nap. Therefore, you must master your relationships romantic, family, business, friends and social. Ive found that for myself, it is the greatest resource because it opens up the door to all the other resources Id need. Give priority over this as it will be very important to your life. DAY FOUR : FINANCIAL MASTERY 95% of this manual will be talking and giving tools and strategies to achieve this strategy. I will be explaining very much more in the later part of this manual. However, again money is not everything. But whatever comes second is far from it. We always fantasize that money will solve all our problems and relieve all our pressures. The key is not the mere pursuit of wealth, but changing your beliefs and attitudes about it so you see it as a means of contribution, not the endall and be-all happiness. Gain wealth and financial freedom so that you can contribute to your society, family and religion. DAY FIVE : TIME MASTERY This is the mastery that is most lacking for most Malaysians. We are known worldwide for not being able to keep to time. Always blaming on some other thing like the traffic jam. We are so used to it that we think there is absolutely nothing wrong with it. We always make fun of the phrase Malaysian time. We also most of the time just go on with our lives and without noticing it, time just pass by. Youve heard the saying Oh! there goes my weekend again. Well, without time management all other things can never be achieved. There must be like dozens of books out there teaching everything you need to know about Time Management. But in summary let me give you some steps to control your time. Step 1 : Analyse your current life and see how much time you are allocating for each activity. Take some time sitting down and preparing list of activities you do and time youve been spending for each. For instance, what time do you normally wake up and what time do you sleep. How many hours do you spend in a week for TV, traveling to work, eating, holidaying, etc2. Locate the gaps in times taken for each activity and improve time taken to do them. For instance, you may want to reduce time for TV to just 1 hour for the TV3 news each day. Step 2 : Prioritize your time and allocate number of hours for activities you think that is most important to you. Collect all the gaps in the times and allocate more time to activities you think which is more important. Example, lets say you normally spend 15 minutes after work watching the 6 oclock news, why not spend the time to exercise and watch just the 8 oclock news on prime time. Step 3 : Plan your times and activities. You can start allocating more time for exercise and Internet surfing from cutting times from watching TV for instance. For example on a normal weekday, you can plan like below :11:00 am 6:00 am 6:30 am 7:00 am 5:30 pm 7:00 pm 7:30 pm 9:00 pm

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


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 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.


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%

Time in Years Never 468 284 145 99 75


What if you put a ringgit a day or RM 30 a month. Look below :

Interest Rate 3% 5% 10% 15% 20%

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%

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.


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 For example : Target Amount Rate Time Purpose : : : : : RM 1 million RM 10 a day 20% 20 years Educate the youth in Malaysia. : : : : : How much money you want to accumulate? How much ringgit can you squeeze a day? What interest rate can you earn? How long do you want to achieve your goal? What is your financial purpose?

Start saving. Do it now. Do it regularly. Ill give you one very simple exercise for self discipline to achieve and ponder about this. Go out and buy a piggy bank perhaps a plastic one. Every single day try to put RM10 into it. By the end of the month, save it into your unit trust or invest it. Take down the exact amount youve saved and the amount youll make from compounding interest in the next 10 years time. Make it a habit to also drop any money change into the piggy bank. Even 1 sen is worth something if for 100 days you keep dropping one into it. Well this is one of the most easiest and practical ways. In the later chapter well show you some effective savings method to learn.


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



Skill 1 : Value It Neccessity for work: Importance of charity: The need for saving: Accountability:

When you earn it, you value it. Give away the first 10% to charity. Put away the next 10% for savings. Account for every single sen.

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.


4. 5. 6. 7. 8.

Get a receipt. Ask for it. Examine your receipt. Sometimes they make a mistake. Categorize your receipt. Ill explain more in the next chapter. Balance your accounts. File your receipt.

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.


26. Travel by Air Asia! 27. Quit the health clubs, just jog! 28. Coupons and midnight sales at Tesco or Carrefour! Check out Star newspaper and keep track of them! 29. Skip paper towels and wash cloth instead. 30. Dont use laundry, buy a washing machine for RM600 instead. 31. Check your receipts after purchase. 32. Avoid specialty stores. 33. Shop on-line or at 34. Dont buy premium gas, normal would do just fine. 35. Wash your car yourself and get some fresh air and exercise instead. 36. Cancel ASTRO all together or the channels you never watch! 37. DONT PLAY 4D OR SPORTS TOTO the odds of getting hit by lightning are better than your chances of winning. 38. Refinance your home. Check the interest rates out there. 39. Save first before spending. Save RM10 a day first before paying your bills. 40. Buy a piggy bank and save all your spare change there. 41. Dont spend your next pay raise, invest that money instead. 42. Buy a motorbike. 43. Have a big trunk in your car, buy bulk at Tesco or Giant only! 44. Buy a big refrigerator. Youll save a lot over the years. 45. Build a big store room and to keep stuff you bought on midnight sales. 46. Plan your destiny and use the shortest routes possible. 47. Use Bonuslink or Real Rewards when purchasing fuel. 48. Dont buy groceries at 7 eleven or at mamak groceries! 49. Use prepaid cards for your handphone. This way youll control your calling spend. 50. Go Dutch! 51. Dont use air-conditioning, use a fan! Or just open up the windows! 52. Just window shop at Ikea. Buy more in Nilai 3. 53. Skip roti canai and nasi lemak Just buy a toaster and whole grain bread! Well discuss much more about controlling your spend in Chapter 5 - Understanding Your Expenses later on. Skill 4 : Invest It We will elaborate this more in the later chapters. There are many investment instruments available in Malaysia such as Amanah Saham, Koperasi Bank Rakyat, stock market, real estate etc2. Kiyosaki said the best way to become wealthy and sustain it forever is by becoming an investor. Dont become a sole proprietor or a maintenance contractor, you never know whats going to happen next. RM 500,000 put into a unit trust that gives 15% per annum will sustain your monthly expense for RM 5,500 per month forever. Do the calculations! Ill show you how in the next chapter. Let someone else do all the dirty work for you, there are many accountants, lawyers, engineers, managers out there willing to work you. Just invest in them! Why would you want to supervise workers or pay their salaries where there is someone else who can better do it for you while you concentrate your efforts in finding other profitable businesses, going through all opportunities and listening to other people trying to sell and convince you. Being an INVESTOR is your number ONE goal. Skill 5 : Make It In this manual, Ill concentrate on Internet, real estate & stocks as your money makers. There are actually more, but well just concentrate on these for the time being. Your first target is to make


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.


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


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. Purchase Every Month (For consumption of a couple and 1 child) No. Item 1. Rice 20kg 2. Onions and other herbs 3. Dishwasher 4. Dynamo 5. Bathing Liquid and Colgate 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


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. Water & Sewerage Allocate RM 30 per month for this. You cant live without it. Internet Access - Broadband As I said earlier just get it. Dont think twice. This will be your money making machine and will help you to get that retirement much earlier than you imagined. Cost is RM 66 per month with Tmnet Streamyx. Its that important that please find a house in an area that can have this installed.



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

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 :-


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

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.


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.


2. For Budget Tracking Keep all your statements and try to balance your receipts with your statements everytime. You can also track your expenses online these days. So you wont get lost to your current standing in the middle of the month. 3. For online business To purchase web hosting, domain names, memberships youll need a credit card for your online businesses. 4. Take advantage of interest on your savings/checking accounts A lot of people dont realize this. If you delay payment, youll earn some interest on your spend. For example, lets say all your money is currently in your ASB account. You decide to buy furniture worth RM2,000 that month. You use your credit card on the 17th of March. The bill comes only on 11th of April and due date is 31st of April. So your money in ASB with 10% pa dividend will earn you an extra RM17 free money. That RM17 invested into high risk unit trust might earn you RM1 million one day! Youll make a huge saving there plus you get points on top of that. So insist on using your card if possible. But make sure you pay on time or you get charged late payment and this defeats the entire idea of savings all together. Step 6 : Use Online Payment Facilities To pay your expenses and bills, utlize fully payments via online. You can use the bill payment facility in Maybank2u but better use your credit card instead to pay for savings and points as explained above. To pay your TNB, Telekom, Tmnet, Astro bills using credit card go to Make sure you print out the email receipts and file this. You can straight away go to your credit card website to check out whether payments have been captured by your credit card. For HSBC credit cards go to You can also use Maybank credit cards. Check your statement in You can also check your latest statements all here. If you use Maybank HomeLoan, you can use Maybank2u to track your housing loan payments online. Charge your insurance to your credit card and track payments online. Rebates are also normally given for payments if you made them autopaid online like TNB and Telekom. Take up all these for the savings you can gain. There are other online bill payment facilities like http://www/ Make use all of them. Pay for petrol using credit cards and use bonuslink for points. Track your points at Your points will get you things here. Youll save time and petrol and this can be considered already a savings. Step 7 : Furniture & Electrical Appliances Weve so far been talking about monthly expenses but what about money to spend on your furniture and electrical appliances like washing machine and refrigerator. If you already have all these home necessities than skip this step else continue. Number one rule dont take up a personal loan to buy off all these items. Pay them as you can afford them using Skill 5 : Make It. For first time home buyers who are just starting out, installing home appliances can be a huge sum to pay. Most of you will end up using your credit cards or taking up personal loans to pay off everything monthly with interest on it. So why not simply pay off everything with cash (actually try use credit cards and pay them before due date) since you need this but delay buying them until you have the cash. If youve saved a lot of money previously, than congratulations youve solved your problem. But if you have almost nothing and about to move into a new home, there will be a problem there. So lets figure how to solve the problem if you just moved into a new house and


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.


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. DAY JOB pays the bills Your day job pays all the necessity expenses for now until you achieve your goals. DAY JOB qualifies you for a loan You need a day job to get your J Form and EA Form in order. This way you can easily get your housing and car loans. All this helps you achieve your target. DAY JOB helps build up your savings for investment You can start with the 10 ringgit savings a day rule with your day job. DAY JOB provides training A day job should provide you with all the computer skills, office skills, negotiation skills, organization skills, filing skills, people skills, communication skills and more. Make use of all the development the company provides to you. Try to also learn how your company operates as this will help in your own businesses. DAY JOB instill self discipline Youll have to wake up early and follow the 8-5 schedule every day. This give you some sense of consistency in your life. DAY JOB builds up your EPF/KWSP Yeah, you would think that my idea is to keep all the amount in EPF until youre 55 years old and enjoy all your savings for the next 30 years with 4.5% compound interest and youre okay. While you can simply squander your day job salary on big cars and big homes. Well, this manual is teaching about you being financially free in 3 years time.







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 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

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.



Total EPF amount per month (RM) 720 720 720 720 720 720 720 720 720 720 720 2,160 10,080.00

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 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 Total EPF amount per month (RM) 0 720 720 720 720 720 720 720 720 720 720 720 2,160 10,080.00 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


Year 2 Month Balance from previous years JAN2005 FEB2005 MAR2005 APR2005 MAY2005 JUN2005 JUL2005 AUG2005 SEP2005 OCT2005 NOV2005 DEC2005 Total Total EPF amount per month (RM) 10,258.20 720 720 720 720 720 720 720 720 720 720 720 2,160 20,338.20 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

* Dividend earned in 2005 for balance from previous years.

Year 3 Month Balance from previous years JAN2006 FEB2006 MAR2006 APR2006 MAY2006 JUN2006 JUL2006 AUG2006 SEP2006 OCT2006 NOV2006 DEC2006 Total Total EPF amount per month (RM) 20,978.02 720 720 720 720 720 720 720 720 720 720 720 2,160 31,058.02 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

* Dividend earned in 2006 for balance from previous years. FIGURE 2.1 THREE YEARS EPF CONTRIBUTION

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 ALLOCATION OF EPF CONTRIBUTIONS

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


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. DAY JOB builds up your confidence A day job builds up you confidence to take on more riskier ventures like real estate ventures or the stock market or even putting your money into stable unit trusts. Youll have the security in trying new things like trying to build up a business selling information or a business in reselling items bought on ebay or Because by the end of the month you know your nest egg in EPF and your own savings is still growing. DAY JOB allows you to get to know people Well, you can also get to know people not working but at least you get to see other people during your office hours time and get paid for it too. You get to meet your customers, your suppliers, your colleagues and more. You can start selling them life insurance, unit trust, MLMs and more. Meantime you get to socialize with people while getting paid a monthly salary. You can also learn a lot from your colleagues and people you meet while at job. DAY JOB allows less complication with LHDN on taxes It will take out all the head-aches dealing with income tax. While building your nest egg and trying to meet your financial freedom, you can start preparing building your tax planning strategies. Plus, filing your previous years income tax helps to train you preparing for your retirement. You can also spend some time just going to your local LHDN office and simply asking all the silly questions to the staff there. ps. If possible dont visit them in April ie. during their peak months. Go for visits in Octobers perhaps. Youll be surprised they are quite accommodating actually and can sometimes spend extra effort providing service to you. Theyre paid to do that anyway. However, worse comes to worst, you can build up a nest egg later on to just hire a tax planning consultant to help you. DAY JOB allows get a credit card You need a credit card for your internet business which I will explain more later.




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.


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


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


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.


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!


4. SUSTAINABLE TOOL 4 : LOW RISK FIXED INCOME SECURITIES (ANYBODY) 100% fixed income securities like bonds, money market etc2, can provide returns of between 5%-6% pa. Lets assume 6% pa returns. Capital is unlimited and very liquid. With capital of RM 310,000 invested and and your monthly expenses is RM 1,500 per month you should be set for life! 5. SUSTAINABLE TOOL 5 : BANK FIXED DEPOSITS (ANYBODY) Banks fixed deposits can provide returns of around 4.5% pa. Capital is unlimited and very liquid. With capital of RM 410,000 put into fixed deposits and and your monthly expenses is RM 1,500 per month you should be set for life! 6. SUSTAINABLE TOOL 5 : REAL ESTATE (ANYBODY) This is more of the money making machine rather the sustainable tool. But it can work that way too and a really good one at that. Lets not talk about using financing to buy the houses for now. Lets assume you have accumulated cash of RM 300,000. Because you have instant cash, you can negotiate good deals and obtain 2 storey terrace houses in Puchong worth RM 150,000 each (lets assume all in with legal fees and renovations). You can collect rentals for RM900 for each house. So thats RM 1,800 per month to cover your expenses forever! The best thing is your RM 300,000 is increasing in value. So if you sell these two in 5 years time, the house might have doubled in value already. But again, youll need to deal with problems of collecting rent and all the bathroom leaks etc2. Also, rental is actually taxable, but you can always charge expenses of maintaining the house to the rentals. Another thing is your money will not be liquid, so if you have emergencies youll get stuck. So you can make it like your second sustainable tool. The first one can be sustainable tool 1 perhaps.You might put RM 150k in real estate and another RM 150k in ASB/unit trusts. Well discuss about real estate in the later chapter more. The above are perhaps the most common and simplest sustainable tools around in Malaysia. Of course you can have combinations of these. You can mix them just like I did for the real estate tool I explained above. For example, you may want to mix your risks with combinations of tools, you might want to put for example RM50k into risky unit trusts that might give you up to 25% pa returns and put the rest of RM110k into fixed income securities of returns around 7% pa. So basically with this combination and your expenses of RM1,500 per month, you should be okay for life provided the riskier unit trust can continue its performance.


Attachment 7.1 Calculations for Sustainable Tool 1

No. Month Balance b/f in ASB (RM) Expenses per month (RM) Balance c/f in ASB (RM) Dividend earned per month (RM) Starting Capital at Year 1 Expenses per month Dividend per annum Total Dividend per year Average Dividends per month Capital Position at Year 2 Capital Position at Year 3 Capital Position at Year 4 1 Jan-05 200,000 1,500 198,500 1,654.17 : : : : : : : 2 Feb-05 198,500 1,500 197,000 1,641.67 3 Mar-05 197,000 1,500 195,500 1,629.17 4 Apr-05 195,500 1,500 194,000 1,616.67 5 May-05 194,000 1,500 192,500 1,604.17 6 Jun-05 192,500 1,500 191,000 1,591.67 7 Jul-05 191,000 1,500 189,500 1,579.17 8 Aug-05 189,500 1,500 188,000 1,566.67 9 Sept-05 188,000 1,500 186,500 1,554.17 10 Oct-05 186,500 1,500 185,000 1,541.67 11 Nov-05 185,000 1,500 183,500 1,529.17 12 Dec-05 183,500 1,500 201,025 1,516.67 13 Jan-06 201,025

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

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.


STEP 2 : IDENTIFYING YOUR IDEAL RETIREMENT EXPENSE. In Chapter 4, we discussed in detail what your current expenses are and what your current targeted expenses should be. If you can see from Step 1 above, I chose RM 1,500 per month as the retirement expense target for financial freedom. I simply used the total necessities of RM 1,471 per month from Figure 1.7 from Chapter 4. Basically, its saying that with RM 200,000 you will be able to pay all your monthly necessities of RM 1,500. But perhaps you disagree with me, you would want more money allocated as your monthly retirement expense due to many reasons of your own. Buts lets assume now for argument sake that RM 2,000 will be able to pay all your expenses if you are not working or having a day job. Im saying you will continue working on your money making machine as I will explain in the later Chapters, but RM 2,000 is the amount of money that will be able to sustain you even if you sleep, eat and watch TV all day long! This will give you the total freedom to be active and make way more money on your own. FULL PROOF EXPENSE TARGET You might be worried in case the economy starts slowing down or interest rates start shooting up and your home loan start to bubble or your groceries start to go up or you suddenly fall sick and need a lot of medical expenses or fuel price goes up or ringgit starts to depreciate again or your car starts to break down or your children need to go to university or any other uncertainties that may happen once you retire. Work out a full proof expenses target that will fully cover all angles in the future. For example, take a loan or refinance your home to a fixed interest rate loan. If you take a housing loan, your house will be fully covered in case of fire or whatever by your MRTA. Buy a car at most 3 years old and do proper maintenance. Switch cars every 3 years. Buy brand new if it helps! Groceries should go up according to our official government inflation rate between 1% to 2% per year. Besides most items that we need most are controlled by the government anyway. Your luxuries may increase but prices for things like CDs, computer items etc2 are going down every year. Take medical insurance of maybe RM 50 to RM 60 per month that will cover you up to RM15k - RM20k per year in medical bills. You can also rely on our government hospitals, rates should be stable for some time. If ringgit depreciates, it may not have any effect on you whatsoever unless you like buying Chevrolet everyday or eat American Potato chips every day! Petrol prices are fixed by the government. Judging from the miserable Indonesian experience, our government wont dare touching this! Setup a fund for your children, so that by the time he or she turns 18, they should have enough to go to uni. Anyway, they should struggle a bit and learn more about things in this manual than going to university. And send them to a local university, there are many local colleges in Malaysia that are as good as those overseas. Telecomms rates are going down everyday, so is handphone prices are going down due to technology. What if theres an earthquake or a big flood, well your money is in the bank anyway and your house is covered by MRTA. Choose a house which is not a flood infested area. With all this you should come up with a full proof retirement monthly expenses target that will cover you in all cases! WORK OUT THE CAPITAL YOUR REQUIRE Now that youve assumed that RM 2,000 will be enough to sustain you every month if youre not doing a single thing. How much capital will be required if you use Sustainable Tool 1 in Step 1, ie. how much capital do you need to put in your ASB/Unit trust that gives 10% pa dividend to sustain RM 2,000 per month. The answer is ladies and gentlemen RM 253,000. For bumi, you can use combined husband and wife to go above RM 200,000. Below shows, the capital required to meet your ideal retirement expense :-


No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Monthly Expenses (RM) 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,600 3,000 5,000

Capital Required (RM) 200,000 203,000 216,000 228,000 241,000 253,000 267,000 329,000 381,000 635,000


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) Year 1 0 0 12,000 36,000 48,000 Year 2 48,000 7,200 12,000 48,000 115,200 Year 3 115,200 17,280 12,000 60,000 70,000 274,480 Year 4 274,480 41,172




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.


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.


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!




Stock Market Art 2 : Join Unit Trusts Unit trusts will be explained with further detail in the later Chapter. However, pick the brains of the fund managers. And allocate your savings in combinations of unit trusts with several risks. Its quite easy if the stock market goes up, you win. If it goes down you lose. But in the long term your money will definitely grow. Stock Market Art 3 : Earn Dividends On Your Stocks While The Price Grows People dont concentrate too much on this. Maybe, they dont care because they want to just get the buck fast. However, dividends from companies are quite significant and can contribute to your money making machine. Its also quite easy. Choose a very long term stock such as Nestle. Nestle is quite stable producing products such as MILO, Nestum etc2 for the Malaysian market. It is also a global player backed by strong fundamentals and global backup.



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.




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.


Stock Market Art 4 : IPO Initial Public Offerings You can make money in IPOs but your money will get stuck for 2 - 3 weeks and youre not sure whether you can actually get the IPO. But you can as and when take out your money from ASB and try the IPOs. Again, read the prospectus before applying for the IPO. Stock Market Art 5 : Short Term Buying and Selling I strongly urge you to only use money you are willing to risk. Perhaps, just 5% of your savings should be put into these kinds of investments. You might make a killing if youre lucky or get a good tip on a counter. Power Of Unit Trusts What is unit trusts? The idea behind a unit trust is simple: Many people pool their money in a fund, which invests in various securities. Each investor shares proportionately in the fund's investment returns -- the income (dividends or interest) paid on the securities and any capital gains or losses caused by sales of securities the fund holds. Every unit trust has a manager, also called an investment adviser, who directs the fund's investments according to the fund's objective, such as long-term growth, high current income, or stability of principal. Depending on its objective, a fund may invest in stocks, bonds, cash investments, or a combination of these financial assets. Every day, the fund manager counts up the value of all the fund's holdings, figures out how many shares have been purchased by shareholders, and then calculates the Net Asset Value (NAV) of the unit trust, the price of a single share of the fund on that day. If you want to buy shares, you just send the manager your money, and they will issue new shares for you at the most recent price. This routine is repeated every day on a never-ending basis, which is why unit trusts are sometimes known as "open-end funds." If the fund manager is doing a good job, the NAV of the fund will usually get bigger -your shares will be worth more. But exactly how does a mutual fund's NAV increase? There are a couple of ways that a mutual fund can make money in its portfolio. (They're the same ways that your own portfolio of stocks, bonds, and cash can make money).

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


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.)

Tips on Unit Trust Stick with stock funds. As long as you have five or more years until you need the money, stock funds will likely provide you with superior returns over any other investment. But you have to be patient. In the short term, the market is very volatile, so don't fret when the market drops 10 percent in a week, or your account seems to be worth a lot less than it was last month. Over five, ten, or 20 years, you'll come out much further ahead by sticking with stock funds. Think big. When you invest in the big Malaysian companies, companies like Public Bank, Maybank, Telekom and Petronas, you don't have to worry much about whether they will be going out of business any time soon. What's more, these industry leaders have generated outsized returns for their shareholders over the past decades. Bigger isn't always better, of course, but "large-cap" stocks like these provide plenty of solid returns (over the long-term, of course). Invest in these stocks by buying a large cap stock fund. Think small, too. Every big company once started out as a small company. If you can buy good companies when they're small, you'll benefit as they get to be big and successful companies. Trouble is, lots of small companies just get smaller and eventually go out of business. So small


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.


A Simple Five-Fund Portfolio Fund Large-cap Mid-cap Small-cap Specialty International Total

Percent of Investment 50% 10% 20% 10% 10% 100%

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 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 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. Past returns (1 year) *

New Fund

PRUdynamic fund

New Fund

PRUsmall-cap fund


PRUgrowth fund


PRUbalanced fund



PRUbond fund

PRUcash fund

Seeks to provide a stable income stream by investing in fixed income securities. Based on 12-month Maybank Fixed Deposit Rate. Seeks to provide a high level of liquidity while providing reasonable returns by investing in low risk investments. Based on Interbank Overnight Deposit Rates.



* 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 EXPLANATION OF FUNDS BY RISK

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!


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


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) Whether hes the owner or agent. Type of house, bungalow, semi-d, double sty terrace, leasehold or freehold. Location of house Sq feet Age of house and any CF? Bedrooms and Bath Land area Why are you selling? Plans if he does not sell. Any offers? Is he willing to negotiate? How long has it been on market? Any housing loans, how long and how much more to settle.

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


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.

PART 2 : SELLING YOUR REAL ESTATE This is where the money is. You bought your real estate at a good deal but whats your strategy next? There are several options to go about this. But before that let me explain Real Property Gains Tax since were in the topic of making profits from selling a real estate. Real Property Gains Tax As a Malaysian citizen, you will be subjected to Real Property Gains Tax only if you sell within 5 years from the date of acquiring the property. The taxable amount is based on how long you held the property. Real property gains tax shall be retained by your solicitor. Your solicitor is authorised to pay this sum to the Director-General of Inland Revenue upon receipt of the notice of assessment to procure the Certificate of Clearance. Individuals & other persons % 30 20 15 5 Nil

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 :-


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
* Real Property Gains Tax. FIGURE 3.0

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?


OPTION 4 : BUY AND LIVE WITH OPM Normally banks finance up to 90% of loan and MRTA (Insurance to cover your home). There are also legal fees and stamp duties, processing fees involved. Some banks are giving away the legal fees and others for free. So if you buy a house for RM 200,000, you first pay the 10% to the buyer, then the rest 90% you get a loan. Then, on top of that you include MRTA into the loan. So, you pay RM 20,000 to the seller. Then you take a loan of RM 200,000 (RM180,000 loan plus RM 10,000 for MRTA). Some banks charge you a penalty of about 3.5% on the loan taken if you settle within 5 years or less. Do your shopping on all the banks in Malaysia and compare your best alternative. Their offer change from month to month. So it wont be of any use if I list down each bank and their offers. Before signing the S&P, make sure you do some window shopping and can even ask pre-qualification from the banks. To qualify for the home loans, normally you need to submit your J-Forms, EA Forms, salary slips, bank statements and a letter from your employer stating your current salary. If youre self employed, youll need to submit your audited financial statements etc2. Just to prove that you are getting a stable income. All the bank wants to know is do you have enough income to pay every month and thats all. If you have RM 200,000 in your ASB, you can show this to them. If youre working you should have no problem, but once youre retired or financially free, youll need to show evidence of monthly income coming in. That means file and pay your taxes. Let your business give you a salary or a directors fee and file this as personal income tax. If your bank is your personal bank and you have a very clean record with them, then you should have no problem. Again, youre limited up to 25% of your household income. The period of payment depends on your age, they can give you up to 60 years old or up to 70 years old. So if youre younger youll be paying a lower monthly installment. If youre in your 30s, you can borrow up to 30-40 years. Interest rates can be variable or fixed. Many banks give lower rates in the beginning of loan and increase afterwards for houses under construction. One bank is giving 3.8% pa in the first year with no legal, stamping fees and etc2. But youll need to keep the house for 3 years or else incur a fixed penalty of 3.8% over the loan amount. Mathematically, when a loan begins, in the beginning of the loan, your installment will just consist of interests. As the period goes up, interest will fall and principles will start to decrease until the end of the loan, the principle will start rise. So, if you sell your home in the beginning of the loan and you borrowed RM 200,000. Your settlement amount might just be RM 200,000 eventhough youve paid like almost RM20,000 already in terms of installments. So if you target to sell the house in 2 years time, for a loan of RM 200,000 at 3.8% in the 1st year and for a loan period of 30 years, your monthly installment would be RM 931.91. If youve managed to rent it out for RM1,000 per month, you wouldve fully covered the installments and sell it for example at RM 280,000. You wouldve made profit of RM 80,000 in 2 years time. You will need to deduct 30% of this for RPGT. Your Home Is Your First Real Estate Investment Your first real estate investment would be your first house. A lot of people are quite sentimental about this and would want to be in that house for the rest of their lives. But the truth is people do move their homes, sometimes and always to bigger homes. You can actually move from one another and make fortunes along the way. A lot of people also think that if they sell their homes, then theyll have to spend more for their next home and actually let the opportunity of instant capital for full financial freedom just go away. This is not so actually because as I will prove to you later you are better off if you can get the opportunity to sell right away. I have heard so many stories of some of my friends claiming that theyve been offered already almost RM100,000 for their house still under construction and the price will definitely go higher after that and they lose out the opportunity for instant cash just like that. The thing is theyre always that kind of


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.


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 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 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 :


Details Cost Start-up capital for equipment, furniture, paint etc2 Computer, printer and scanner Shop lot rental (One year) Employee wages including EPF Advertising flyers, radio, papers Others including permits, electricity, water Total Cost Revenue per year * assuming you make US$150 per hour from surveys 2 hours a day. FIGURE 3.1

Traditional RM 30,000 RM 2,000 RM 12,000 RM 24,000 RM 5,000 RM 2,000 RM 75,000 RM 100,000

Online Business RM 0 RM 2,000 RM 0 RM 0 RM 0 RM 0 RM 2,000 RM 410,400 *


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. 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. Legality of business transactions - compared to selling services on traditional basis, everything is automated and can be audited. Contract terms are all set out in advance.

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.


What do you need? 1. Youll need a PC first before you even begin. If you are serious about making money online you may want to invest some capital in ensuring you have the most suitable machine to do your work and also a reliable one at that. Buy the latest specs if possible at Plaza Low Yat. You may also want to get a laser printer and a scanner. Youll need a CD writer and large hard drive capacities to make sure you have ample space for backups. Also, maybe rims of papers and blank CDs as well. Overall maybe RM 2,000 for PC and others. 2. Get softwares at Plaza Low Yat also. Youll need Windows XP, Norton Antivirus 2004, Office XP, Frontpage 2004, Winzip, Wsftp, Adobe Photoshop, Adobe Acrobat and more. If youre using broadband make sure you use a Firewall software like Zonal Pro to protect you against hackers. Go to to learn about these softwares. Allocate a certain amount of money for this. 3. Broadband internet access from Streamyx Tmnet. Check online at for more information. Why do you need broadband? First of all because its unlimited, you will have the freedom of thought to surf at your leisure. If you are paying by the minute, there will be some psychological barrier while online. It will free your mind totally. Of course, youll save money actually if you were to decide to do some project while online or you spend time trying to read and learn while online. Also, speed is a decider as well. Broadband speed for download is 384 kbps while normal dial-up is 56 kbps speed. This means broadband speed is 7 times more. Youll save a lot of time here and time is of essence when youre online. Delays can cause forms to get stalled and will clamp your productivity and also creativity. Cost of Streamyx is RM 66 per month. One time service activation fee of RM75 will be charged upon service activation. Installation fee of RM50 to be made payable to TM Nets registered contractor upon successful. Allocate some RM 917 for the next 1 year. 4. Something quite important to remind you which has always been missing in some of the internet money making manuals is comfort of chairs, furniture, lighting etc2. You may need to upgrade your chairs, tables, computer tables, printer tables, study lamps, cabinets, fan and etc2. Maybe allocate some RM 700 for this. 5. Allocate a special study room or a corner. Make sure its private and you cannot be interrupted frequently. This is quite important as you dont want to be interrupted while filling up a form or doing something really urgent online. 6. Get organized. Keep file folders where you print and file all data and userid and passwords within reach. You can keep data online but sometimes its important and much easier and faster to keep a black and white backup. 7. Get a mic and speakers on your PC so that you can easily communicate with joint venute partners, web hosting providers, friends etc2. 8. Get a phone with fixed line connection. 9. Get an international calling card. Buy the cheapest especially for US and UK rates. 10. Get a fax software connected to your PC and scan and keep your digital signature in softcopy. If you have extra capital get a fax machine too.


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 and register for one. You can also go to 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.


2. Search Engines - your default Internet Explorer page should start at Yahoo. Go to 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 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.

Money Making Portal - sign up straight away to my membership portal or email me at to get your free lifetime membership userid and password. In there I will provide database of money making opportunities and any updates. Also tools such as list of softwares, tips and tutorials, forums where you can discuss or ask your problems to other members or even build networks of friends with the same interest. It is a powerful tool and compared to the other manuals, youll still get updates after years of purchasing this manual, a lifetime opportunity. Also, you can communicate with me easily where I will be your guide and online mentor. From here you will no where to go next.

Option to Setup US or Singapore Mail Drop Service I will show you certain affiliates where you can start making money straight without a single sen. However, one of the best money making opportunities is by using clickbank and some others, there are thousands of ways to make money on the net promoting and becoming affiliates of other products and services. However, unlucky for Malaysians, we somehow have been written off from the many paymaster websites which include Clickbank, Paypal, Yahoocash and many more. Meaning even if you want to collect money, you will face difficulties because Malaysia is usually not listed in their database of countries. A way to solve this is to setup a mail forwarding mailbox with a street address in the USA or in Singapore. This way you can easily accept US checks to be forwarded to your address here in Malaysia. You can time the mails to be forwarded to Malaysia every month up to 150 pound per shipment. Youll need a capital of RM 1,124.80 for use of US mailbox for 1 year and delivers back your mails every month. This way you can have a branch based in New York City, USA. Just imagine that. Go to for more information about this or go to Google and place keyword Singapore mailbox drop service. Mindset of an Internet Money Maker Now after all the explanation provided above on what needs to be done first before making money. Youll need to tune your mindset in order to ensure you can smoothly make money. Im putting this first before showing you the exact way of making money is because there are certain things you need to change in your mind before starting to make money. These are also universal mindset change for success but can be specific to making money online : 1. Goal Setting you need to set goals what you want to achieve in a month or a year. Lets say I want to make RM 5,000 a month from Internet alone. Then, you will go all out until you get that RM 5,000 because believe me after I teach you all this and you really follow the steps I showed you, you can achieve that much if you want to : 2. Emotional Factors just imagine if you get cooked up in front of your PC for the past 1 day. Youll get tired and will lose focus. Make sure you are in your best emotional state.


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.

Start Making Money on the Internet Now you can start making money. Ive also given my own rating to difficulty to success and capital required. This is as a guide for setting your 80/20 principle. 1. Create and Sell Physical Products 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


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 Virtual products you can create and sell are : a. Information products Digital products such as ebooks/digital books. They are easily created using PDF creator and cost of producing is small. Just as was explained in Chapter 13, you can sell ebooks on the Internet. All you need to do is setup a website and upload your ebooks in PDF format there. They will need to pay you and then download the pdf copy of your ebook and read. They will need to download also the Acrobat Reader which is free on their machine to view you e-book. Go to to see how you can have adobe pdf creator installed into your Microsoft Word. Right after typing on Word, you can have it automatically saved to PDF, then upload this to your website and sell it. Rating 7 out of 10 b. Memberships These are more complicated. You may be required to have certain skills like cgi programming to do this. Basically, youre selling access to your information stored on your private area of the website. Members pay either a one time amount or monthly membership fee for access to your digital product. Rating 3 out of 10 Rating 7 out of 10

3. Promote and Become Affiliates

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 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


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 Youll earn commissions from sales of those books. a. Where to find Affiliate Programs? 1. Through Search Engines like or 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.



2. Affiliate Directories : a. b. c. d. e. f. and many more.


3. Clickbank - Go to They have thousands of affiliate programs you can join for free. Search their affiliate directory there. But problem the problem for Malaysians is youll need either a US address or a Singaporean address to start accept cheques from the USA. You can setup a mail forwarding address just like I explained above. Its worth thinking about because Clickbank is a popular on the internet. 4. Linkshare - Go to Read how it works on the website. Basically you join them for free. You promote their merchants and receive cheques every month. Accept cheques at your home in Malaysia. 5. - Join the Affiliate Program today and you can earn commissions of up to 10% on every order! If you are creating a work from home website. You may want to promote their products to Americans and make commissions out of items sold. Accept cheques at your home in Malaysia. 6. - Join affiliate program and earn commissions every time you sell memberships of this dating website. 7. - Join the affiliate program and you will be able promote something like 16 different kind of dating sites. Earn commissions out of the site. 8. Intercontinental Hotels Group - Theres even a hotel affiliate program where you promote their hotels and receive commissions when someone decides to to get a room with them. Go to http:// 9. One and Only Dating Go to and learn how you can earn up to US$70 per member! 10. Go to our life time membership or email me at there are more there. These are just some. Remember the 80/20 principle and concentrate your efforts on the best. If you are just starting, try any first and wait for the cheque to arrive at your home. Fill up the joining form and put your name and Malaysian address on the affiliate program joining form. They send cheques (checks in US spelling!) every 2 weeks in American dollars. Normal air mail from USA to Malaysia is 2 weeks. Bring those American cheques to any of your local Malaysian banks like BCB, Maybank, Citibank, Standard Chartered, Ambank etc2 and theyll clear it to your bank account. Theyll charge a nominal fee for processing and would normally take something like 2 weeks for clearing. You have 90 days from date of the cheques to clear it before the cheque validity expires. So clear them as soon as possible no matter how small they are. I had a friend last time who earned everytime small sums of US$20 to US$40 and waited until the cheques expired. He lost almost RM 800 in total just because of procrastination and thinking that the sum was too small. 4. Selling Advertisement Space on E-zines and Website Rating 3 out of 10


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.


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 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 up to $200 $30 $200 up to 250 Special Bonuses Free Gift? Our Rating (#/10) One time subscription fee

Survey Scout

Over 450

90 days

$5 $120 $25 $99 $5 $150



Survey Junction Get Cash for Surveys

Over 700

90 days



Over 200

90 days



Paid Online Surveys Paid Surveys Online

Over 275

90 days

$25 $99 $5 - $75

$30 $200 $50 $150



Over 300

90 days



Survey n More E-Submit Factory

Over 200

30 days

$4 - $75

$50 $250 $50 $150



Over 300

90 days

$5 - $75




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 and learn more there. Or put keyword paid survey on Or go to for free info. You can also check 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 and learn how you can make money by just reading emails. Or go or you can also put keyword paid to read emails on or go to 8. Paid To Just Click Rating 8 out of 10

Go to 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 9. Paid to Learn and Read Rating 8 out of 10

Go to 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

Go to You get paid by the click for every visitor sent. For example, if you have 1000 hits per day on your website and 100 visitors click on their ad / link on your website, youll make in the range of US$0.05 to US$0.15 per click. That comes to US$15 for a day or RM 57 per day. 11. Totally FREE Cash 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 : 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


uncompetitive in the bids. But 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 or 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 or 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 would difficult to remember than It sounds better too, doesnt it? To register your domain go to : or go to 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,, and more. Again go to and put keyword Free hosting. You can also go to

65 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 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 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 or place a keyword free forums or free cgi at to get the latest offerings. Check out also 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 or service accounts. You can have emails like or 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 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.


Step 8 : Setting Up Your Autoresponders You may want to setup autoresponders with template emails to be automatically sent to anyone who emails to a certain email add you specify. You can go to : or Again if you have paid hosting, there are certain email accounts where you can use as autoresponders. Step 9 : Setting Up Mailing Lists You may want to invite people to join your mailing list for free where you will provide free newsletters or updates on the website. Normally, people subscribe because they want something out of the mailing lists. So promise them something like free articles, free information, free pictures. This way they agree to join your mailing list. Once you have this, you can announce or promote anything to them anytime. Such a powerful tool. There are many free mailing list providers on the Internet. One really good one is is another really good one. Step 10 : Deciding on Your Web Content You will need to decide on a content that can attract as many people as you can so that you can promote your affiliate programs. There are many topics you can actually think up. This is but just some of the ideas I can think up 1. Website for teenage issues, discussions, forums 2. Website on political issues, forums etc2. 3. Website on a hobby like fishing 4. Website on real estate in Klang Valley or Malaysia. Perhaps listing, articles, tactics. 5. Website on how to make money online or how to promote on the Internet. 6. Website on pop culture, artis, pictures etc2. 7. Website on cars etc2 8. Website on food etc2 9. The list goes on and on and on. There can be 1001 topics you can choose from. You will need to continuously update your website and participate or moderate forums on your website. Make it into a hobby. Now that you have already setup everything in place. Youll need to advertise and bring people to your website. This is perhaps the more important part of the equation where you can have a very fancy website with all the tools you can have and pay but nobody is really visiting your website. Simply, emailing a couple of your friends and doing a submission to yahoo doesnt really help you. You must have a very detailed game plan with review of what you have done. The statistics or counter will gauge your internet marketing effectiveness. The first thing youll need to do is to attract people to your website. So basically your main effort has to be concentrated here before proceeding any further. So, lets go step by step what youll need to do as soon as you have setup your internet store front or your website. Method 1 : Search Engines This first thing you will need to do is to submit your website to the many search engines. Forget about using the auto submission websites. Spend a couple of minutes to submit one by one to the search engines and list those that you have successfully submitted to. The below are the ones in terms of ranking you will need to submit to :


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

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. 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 Smart Pages Generator You can improve your search engine submission by using this smart pages generator. Go to to learn more. Link Popularity Search engines will take into account the number of pages linked to your website. Go to and to learn more. You can also get more info at or 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 :,, 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 :





6. 7.







Tracking Your Ranking You will need to wait for sometime after submissions. You can check your submissions either manually or using softwares like : or Resubmission To obtain good ranking you will need to submit often. However, not that often as some search engines may blacklist you. Resources There are many resources on the net regarding this entire art of submitting to the search engines but here are some useful sites for tips :Word Tracker - - Keyword search tool to see some indication of popularity of keywords youre using. Search Engine Optimisation - - Tutorial on how to get good listing on search engines. Keyword Count - - This tool will analyse your page. Keyword Density Analyser - Mouse Click Operation - Any Browser

Method 2 : Email Signatures One of the easiest way. Whenever you forward stories, pics or anything to friends and colleagues include an email signature of your website at the bottom of your email. You can just put some flashy statements about your website in your email. Some emails get forwarded forever and ever to everyone, your website might get noticed by thousands without you realizing it. Method 3 : Email Marketing Easiest and most effective method. Get a free email from Hotmail or Yahoo and blast your website to people. Make sure you personalize your email to the reader, this will make it more effective. Put headlines on the Subject that can really attract the attention of your target reader. Do not SPAM as you might lose your ISP altogether. Target your emails to your mailing list or friends and colleagues you know. Tell them what your website is all about. Dont cc copy, if possible send one by one to all your friends and to all your colleagues. Method 4 : Bulk Emailing/SPAMMING This is a very effective way to promote your website and get hits instantly to your website. But this is also a dangerous method. You might get your ISP account BLOCKED. Or your website to suddenly disappear from the face of the earth. Let me just give you a secret method I developed but please do this with care because it may land you into trouble. Some states make it illegal for you to spam. First you setup free emails on hotmail etc2. Then you setup a free hosting separate from your website that you want to promote. Make a link for them to click on the free hosting to go to your website. Then, collect emails from websites, chat sites, forums etc2 and send them an email inviting them to that website. A free email can normally send a maximum number of email, so you can create many emails just for this reason alone. You can also create many free hosting that lead to your site. Lets say you emailed 1000 people a day. Most likely, 30% will respond! Some will manage to finally arrive at your website. Youve actually made some hits there. Method 5 : Banner Advertising Creating banners will attract people to come to your website. Create the typical 486 x 60 banner and promote this banner everywhere. You can place them on your joint venture websites, on linkexchanges etc2. You can also take part in banner exchange programs that promote your


banner on other peoples website while promoting theirs on yours. or or




Method 6 : FFA (Free For All sites) You can post your ads for free. There are thousands of FFA on the web. You can try to submit to all these FFAs. Method 7 : Classified Ads Go to google and put a search on classified ads, if you have all the time in the world. Try to submit to every single classifieds you can get. You can also go to to do bulk submitting. Method 8 : Advertise on E-zines You can spend some money and advertise on e-zines. You should target e-zines that are close to your subject market and spend money there. Heres one good example :- Method 9 : Renting Opt-In Email List There are companies that rent out list of email addresses for your ad campaign. Renting these may cost you some money plus you will need to put a SPAM disclaimer at the bottom of your email. Try or Method 10 : Newsgroups One of the oldest method on the internet. There are many subject groups on the newsgroup. Again, if you wrongly post to the wrong newsgroup, you might receive consequences like your ISP might get blacklisted etc2. You can try or go to Google and put a keyword search newsgroups. Method 11 : Safelist You join these safelist in order to receive other peoples email and for you to send your email to other people. Therefore, both will be able to have a look at other peoples email. Try a few at or Method 12 : Linking Strategies This is where you place your link on other peoples website whereas they place theirs on yours. Go to Google and search a keyword and try to communicate with the webmasters for a link exchange. Method 13 : Web Rings Go to and try to join into the rings of similar websites with similar topics. Method 14 : Setup Affiliate programs One of the simplest way is to go to and setup your own affiliate program.

Method 15 : IRC Strategies You can promote your website on IRC or chat rooms. One good method is to setup robots on IRC channels to automatically promote your website. If the channel is packed, youll get hundred


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 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 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.


No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Money Making Methods

Create and Sell Physical Products Create and Sell Virtual Products Promote and Become Affiliates Selling Advertisement Space on Ezines and Website Join Online Multi Level Marketing Programs Submit Surveys, Opinions, Forms. Read Emails and Make Money Paid To Just Click Paid to Learn and Read Get Paid for Clickthroughs Totally FREE Cash Online Auctions on Ebay Online Trade on Etrade

What needs to be done? Setup Website Setup Website Setup Website Promote Directly 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

Internet Marketing Method All Methods explained. All Methods explained. All Methods explained. All Methods explained. All Methods explained. NIL NIL NIL NIL All Methods explained. NIL NIL NIL



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.


NO. 1. DAY Day One (5 Hours Required) ACTIONS 1. 2. 3. 4. 5. 6. 7. 1. 2. Set earning target of RM 5,000 per month. Register Free Emails. (Hotmail, Yahoo) Initiate MMM 11 to get Totally FREE Cash. Initiate MMM 7 to make money from reading emails. Initiate MMM 8 to make money from clicks. Initiate MMM 9 to make money from learning. Register your domain for USD 6.99 with credit card. Monitor progress of activities above. Register your FREE Internet MLM account and proceed with all IMM with first priority in emailing your friends. Your target in 10 days is to get 2 people in at all cost! Check status of money from MMM above. Check status of domain if yes proceed below. Setup Free Hosting and connect to domain above.


Day Two Day Five (3 hours daily)


Day Six ( 5 hours)

1. 2. 3.


4. 5.

Day Seven Day 15 (2 hours daily) Day 16 (2 hours daily)

4. 5. 1. 2. 3. 1. 2. 3. 4.


Day 21(2 hours daily)


Day 30 (2 hours daily)

1. 2. 3. 4. 5. 1. 2. 3. 4. 5.


Day 44 (2 hours daily)

1. 2. 3. 4. 5.

6. 9. Day 45 60 (2 hours daily) 7. 1. 2.

3. 10. Day 61 75 (2 hours daily) 4. 1. 2. 3. 4. 5. 11. Day 76 Day 80 (3 hours daily) 1.

Monitor progress of MMM 7, 8, 9, 11 Monitor and continue to promote all out on Internet MLM. Monitor progress of MMM 7, 8, 9, 11 Monitor and continue to promote all out on Internet MLM. Decide on content of website and design and upload. Website design complete and uploaded. Initiate MMM, by joining as many affiliates as you can for the next 5 days. Monitor progress of MMM 7, 8, 9, 11 Monitor and continue to promote all out on Internet MLM, expand number of downlines. Start communicating with downlines in chatrooms and educate. Place affiliate links strategically on website. Initiate all IMM to promo directly affiliates. Initiate all out strike using IMM to bring hits to website. Place Internet MLM link on website as well. Monitor progress of MMM 7, 8, 9, 11 Check and analyze traffic and IMM success by examining statistics. Check status of cheques for MMM 7, 8, 9, 11. Check status of cheques for Internet MLM. Continue with efforts of MMM 7, 8, 9, 11. Continue efforts of Internet MLM and help to promo downlines websites for downline to also make money. Monitor payment amount to be received via cheques. Check mail for cheques and receive first US dollars cheques in the main. Cash in US dollars cheque at local bank URGENTLY. Continue with efforts of MMM 7, 8, 9, 11. Continue efforts of Internet MLM and help to promo downlines and their downlines websites for downlines to also make money. Start building big empire. Create a team by setting up e-groups for discussion and strategy for attack. Each team in your empire is entrusted to at least get 2 members. Expand IMM efforts and increase website traffic while retaining current visitors. Get visitors into FREE newsletter. Continue with efforts of MMM 7, 8, 9, 11. Continue efforts of Internet MLM and help to promo downlines and their downlines websites for downlines to also make money. Start building big empire. Create a team by setting up e-groups for discussion and strategy for attack. Each team in your empire is entrusted to at least get 2 members. Expand IMM efforts and increase website traffic while retaining current visitors. Increase number of affiliates. Monitor payment amount to be received via cheques. Check mail for cheques and receive first US dollars cheques in the main. Cash in US dollars cheque at local bank URGENTLY. Continue of efforts of all above. Expand to clickbank by getting mailbox in Singapore and forward cheques to Malaysia. Expand promotion on clickbank affiliates.


2. 3.


Day 80 Day 90 (3 hours daily)

1. 2. 3. 4. 5.

Continue and expand all previous efforts as above. Call or chat with all your Internet MLM downlines and expand empire. Call for meetings or join chat rooms together and discuss openly on strategies for the benefit of all. Ready to receive third and biggest cheques. Cash in if received. Upgrade PC. Buy new PC table, lamp and all equipments. Review three months efforts and improve and plan forward strategy for the next 6 months.



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!


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. Network Marketing - Amway, CNI, Shaklee & more. Life Insurance and Unit Trust Agent. Selling Information from Classifieds. Teaching part time English. Giving Seminars on how to make money. Abstracting Service Advertising Agency Association Management Services Business Broker Business Plan Writer/Packager Buyers Information Service Career Counselor Child Care Referral Service Child Day Care etc2.

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.


Strategy 4 : Dont Use Your To-Do List Settle your 20% first before proceeding to the next 80%. Strategy 5 : Reward Yourself for Doing the Right Things After youve accomplished everything, reward yourself with something in order to motivate you achieve the goal to complete your task. Strategy 6 : Do your feared most in To-Do List Do the hardest and feared most in your to-do list before settling the easier ones later. Strategy 7 : Planning is Everything Before the start of the day, plan everything first. Strategy 8 : Exercise With the amount of task these days, youll need this. Strategy 9 : Layering Make use of the time, for example playing an audiocassette in the car while to work. Strategy 10 : Set Specific Goals Set a clear long term goal with short term goals to achieve. Strategy 11 : One at a time Put focus on each task at the moment and complete it first before proceeding to the next task. Strategy 12 : Delegate Try to let others do it for you and not doing all the nitty gritty things yourself. Strategy 13 : Do It Now Just do it know. Complete everything. Procrastination is the number one killer of any effort. Strategy 14 : Reflect on the day Reflect on what youve achieved in a day whether it leads to your financial freedom or not. Strategy 15 : Handle paper only once Do it, file it or throw it away. Strategy 16 : Balance everything In the end, what really matters, your life, health, family. Take time to reflect and set a goal to achieve what really matters most in your life. With that I bid adieu and good luck with your financial freedom in 3 years time. If you follow everything that Ive showed you in this manual, you should have no problems achieving your FINANCIAL FREEDOM. Good luck!