SUCCESS LESSON 10: Follow Your Passion

Steve is a factory worker making a minimum wage. He hated his job but could not make up his mind to follow his passion. Before he came to America, he was a successful construction engineer. He has been drifting through life wishing his life could have been different. Steve goes to work everyday with a goal to retire.

Mrs.B, on the other hand, came to America with a dream to build a successful business. She pursued her dream with passion. She built Nebraska Furniture Mart into a large retailer. Her approach was simple: be honest, deal with integrity, and give people a bargain. Nothing could stop her. Mrs.B worked at her store until she was 103.

If you work the rest of your life, you might as well do something you like. A key to success is to be passionate about what you do and to always have a dream. The person who can’t be stopped won’t be stopped.

To watch the episode, click on http://smckids.com/episodes/?vidlink=10

See you in the next lesson.

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SUCCESS LESSON 6: Learn from your mistakes

To the best and most loving version of you,

As you venture into investing your money, it’s important to remember that fads tend to come and go quickly. A friend of mine, Mike, in Vietnam was doing very well with his iphone trading business. He would buy iPhones from the USA and sell them back to people in Vietnam for good profits. He was able to trade both used and new iPhones as the demand was high. He made enough money to buy a home and a nice car. Mike got a connection in the US who helped him buy new phones when Apple first released.  When I met him this year, he was no longer in the iphone trading business as the demand for iPhones was no longer high. Mike was looking for something new to make money as he lost most of what he earned. He bought too many new phones and had to sell them at a discount when the price kept dropping. Iphone’s popularity was like fads; it tends to come and go.

If you invest in anything that is based on fickle consumer sentiment, it is very difficult to judge its outcome. Watch out for the trend. Predicting the trend wrong can lead to troubles. You always want to invest in a business that is dependable and predictable.

We as human beings make mistakes whether a small one or a big one. It’s important to learn from our mistakes. Mike told me that he detected the trends of new iPhone demands and was able to profit from those trends. However, he failed to learn from few small losses he made, which led to a big loss. Many of Mike’s friends told Mike to get out. He did not listen to any of them. It’s important learn from our mistakes, and yet it’s much better to learn from mistakes of others.

With regarding to your own corporation, If you are fickle, not reliable, and not dependable, people will not be able to judge you. You will make it impossible for people to trust you.

To watch the episode, click on http://smckids.com/episodes/?vidlink=06

See you in the next lesson.

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PS: I call you a CEO as you are really a CEO. You are the CEO and president of your own personal service corporation. You are the president and CEO of your own life. If you work for someone or some company, you provide your services to them in form of employment. If you are a business owner, you provide services to your customers. No matter what you do, you provide services. You are responsible for every aspect of your own company, yourself. And if you read my post, you are really capable of your own title as president and CEO of your own life.

SUCCESS LESSON 5: The KISS principle – understanding what you get into

Dear Mr. CEO,

Your company is doing very well financially. You have followed lesson 4 with persistence. Your saving is growing. What are you going to do with that saving?

Putting your savings in a saving account earns you a very small interest. Seeing your neighbor doing well with investing his cash into different venture, you might be tempted to do the same.

I must warn you. If you get into something you don’t know, you are heading into a land of mines. I myself followed some great traders and lost all of my fortune. I learned some excellent chart techniques to predict a stock. Without any knowledge about the company and its business, I bought the stock with confidence that I knew where it was heading to. The business was gone shortly due to debts. I learned a great lesson that I must know what I am dealing with.

If you invest in something you don’t understand, you have no way of knowing if it’s a good business or not. When problems occur, you will have no way to predict what might happen next and what might help the business. Consider this before you commit to any investment.

Managers of great businesses have an ability to truly understand their industry, its competitive landscape, and what their customers want. They also have the ability to adapt to changes.

Understanding is the key to success. You must learn to understand something before you do. You must think things through before you act. Learn to understand another person’s point of view before you you jump into a conclusion. Be willing to adapt to their point of view if it makes good sense.

To watch the episode, click on http://smckids.com/episodes/?vidlink=05

See you in the next lesson.

Like my page and subscribe to my blog to receive notification about upcoming lessons.

PS: I call you Mr. CEO as you are really a CEO. You are the CEO and president of your own personal service corporation. You are the president and CEO of your own life. If you work for someone or some company, you provide your services to them in form of employment. If you are a business owner, you provide services to your customers. No matter what you do, you provide services. You are responsible for every aspect of your own company, yourself. And if you read my post, you are really capable of your own title as president and CEO of your own life.

SUCCESS LESSON 4: Save for the future

Dear Mr. CEO,

Let’s say you provide good services.  You have a good location which people know about.  You advertise well for your service. Your customers are pleased dealing with you. You have a sound plan to operate yourself. You are doing well. Seeing your neighbor doing well financially, you might wonder how your finance can be improved.

There are three cases when it comes to your finance:

  1. You spend more than you earn. In other words, no matter how much you earn, you are in debt.
  2. You spend all you earn. You have nothing left.
  3. You spend less than you earn. You have some savings.

Your company like any other company needs new equipments from time to time in order to stay productive and cope with changes. This equipment can be in many different forms: new knowledge that you must equip yourself with (books, seminars, workshops, classes), new vehicle to transport you, new clothes, …. If you spend more than you earn, you will not have any money left to buy what you need in the future when you need it. It’s wise then to put away a little money so that you will have enough to spend on things you need.

In addition, your financial future does not depend on how much you earn but how much you save. The more you save, the wealthier you will become. By having enough money to invest in new equipments that can earn you more money, you will be able to save more and become richer. Remember what Warren Buffett teaches: the more you learn, the more you’ll earn.

Benjamin Franklin wisely taught that a penny saved is a penny earned. When looking at your financial future, a penny saved is a penny invested.

To help you further, you can follow the instruction below to develop a good saving habit:

  1. Pay yourself 10% of what you earn. Let’s say you earn $1000 per month, put aside $100 into your saving. Whenever you receive a paycheck, immediately put 10% of that paycheck into a saving account.
  2. Look for investment opportunities to invest your savings.
  3. Only take money out of your savings when you absolutely need it.

Your business will prosper as you keep investing in new equipments that make you more productive. So save now for the future need.

To watch the episode, click on http://smckids.com/episodes/?vidlink=04

See you in the next lesson.

Like my page and subscribe to my blog to receive notification about upcoming lessons.

PS: I addressed you as a CEO because You are really a CEO. You are the CEO and president of your own personal service corporation. You are the president and CEO of your own life. If you work for someone or some company, you provide your services to them in form of employment. If you are a business owner, you provide services to your customers. No matter what you do, you provide services. You are responsible for every aspect of your own company, yourself. And if you read my post, you are really capable of your own title as president and CEO of your own life.

SUCCESS LESSON 3: If you fail to plan, you plan to fail.

Dear Mr. CEO,

Yes, that’s you. You are a CEO. You are the CEO and president of your own personal service corporation. You are the president and CEO of your own life. If you work for someone or some company, you provide your services to them in form of employment. If you are a business owner, you provide services to your customers. No matter what you do, you provide services. You are responsible for every aspect of your own company, yourself.

To be successful, you must have a plan. You must know what your day looks like, how many tasks you can handle, how much time you have for a certain activity, what is important, and what is not. You must know how much money you bring in and how much money you spend. You must know how much you will have after expenses. Without planning, your own personal service corporation could end up failing. You might find yourself in debt.

You must have a plan to deal with constant changes that require you to be equipped with new knowledge. In other words, you must have a plan to invest in yourself in order to stay competitive. As Warren Buffett said, the best investment you can make is to invest in yourself; the more you learn, the more you earn. To do so, you need a plan.

If you want to buy a house, you need a plan: what kind of house you want, how much money it will cost, how many bedroom it will have, where it will be, and when you will buy it.

If you want to have a good job, you need a plan: what kind of job you want, what skills it requires, what skills you have, how you will approach the employer, what salary you are looking for, what the interview will be like.

If you are a student and you want to do well, you need a plan: how long you need to study, what materials you need to study, what assignments you need to do, ….

As Warren Buffett stated, the will to prepare is just as important as your will to win.

If you fail to plan, you actually plan to fail.

To watch the episode, click on http://smckids.com/episodes/?vidlink=03

See you in the next lesson.

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