First of all, 1.5 million dollars is a personal target. How much do I need to retire is dependable on my situation or context as well. My context is likely to be different from you. My country of residence is Singapore and while I may move to another place when I retire, I have to make sure that in the event I decide (or my wife decide) that we should still stay on in this highly expensive country to live in, we have more than sufficient to live comfortably.

Retirement Expenses

My expected retirement expenses will be reduced but unlike many whom have preached that all of us should see a significant cut in spending when we retire, I expect only a marginal reduction. Rather my expenditure patterns will change when I focus on different things in life and spend my money and time on different things. The key is that I will not be eating out less nor will I be shopping less for gadgets. Dun even bother telling my wife to stop buying those hand bags of hers, we are already running out of shelf space.

My key expenditure will be on Food, Transportation, Leisure and Medical/Insurance. For Food, I expect myself to continue to eat out often. This will incur about $2000 per month. Eating is one of my leisure activities as well ? and I seek out good places to eat as one of my favorite past times. For transport, cars in Singapore are horrendously expensive and I do not fancy large fuel guzzlers. I will likely buy a compact fuel savings Honda or Toyota and this will likely cost me $1500 per month; fuel included. As for medical or insurance, I have a hospital plan and term life insurance that cost me minimal currently but I expect the costs to go up to about $500 per month. And on top of these expenses, I intend to spend up to $2000 per month on leisure; travel, shopping, golf etc. These numbers seem general but I have made numerous calculations and predictions (using inflation data) and these numbers should be pretty close to what I will need. All in all, $6000 per month will be just nice. If you asked about my kids’ education or my housing mortgage, I have catered a savings and investment plan separately and will have sufficient funds for a local university education for my child and will also see my mortgage paid fully in 11 years time.

The numbers that I present above will differ for you as our priorities are different. But the key message that I would like you to take away is that we should not be planning retirement as a life in rags but rather we should be planning for a 20 to 40 year vacation. Otherwise we might as well continue to work. I am not saying that working during retirement will be taboo. I am likely to continue to keep myself active by starting businesses and taking part in more social work. Getting an income or profits will also allow me to splurge even more, although the target is to achieve $1.5 million dollars or a $6000 per month withdrawal rate at the age of 45.

How much do I need to retire? How to have $6000 per month during retirement?

Reading the above paragraph, you will probably understand how I arrive at a target of $1.5 million dollars. The goal is to create an investment fund size of $1.5 million dollars when I hit 45 years old so that I can see a withdrawal of $6000 per month or $72000 per year. This is a 4.8% withdrawal rate, which I perceived to be sustainable without drawing down my principal amount of $1.5 million dollars.

The retirement plan will be to continue to be aggressively invested while putting aside 5 years of expenses aside. This will allow me to keep

$1,140,000 in a moderate to aggressive investment portfolio (mainly equities)
$360,000 for 5 years expenses

I will further breakdown my $360,000 into 2 pool. $72,000 for the first year’s needs and keeping the remaining $288,000 in foreign currency deposits. Currently Aussie and New Zealand currencies are attracting the highest return of 8% with relative stability without even taking into account the appreciation. By taking this retirement strategy, I will foresee a need for my main investment of $1,140,000 to return 6.3% annualized over 5 years in order for my retirement to continue without eroding my principal. I expect this to be not only achievable but to also surpass this target. Otherwise I will fire my financial planner

Ok. I hope I have articulated why I think I need $1.5 million dollars to retire and hopefully this let you also start to think about how much you will need for retirement. Start thinking about it early so that you can plan ahead. If I had started 5 years ago, I would probably be able to retire by 40 years old, but 45 years old is still not too shabby. I am going to write another secret cheque to myself to keep my inspiration alive ?

Save and Invest

This is definitely my current plan. I intend to accumulate 35% of my paycheck and weigh my investment towards equity funds for the next 11 years. With a projected annualized 5% returns on my annual investments as well as on my current investment pool, I am expecting approximately $1.6million dollars. Any returns above 5% will be added bonus J

Trade Forex

I have had a lot of experience trading derivatives and foreign currency exchange. It is a highly leveraged and risky venture but has the potential to offer astronomical returns. Can I make a million dollars from trading forex? I believe that it is entirely possible but a sizable proportion of my time must be devoted to monitoring the currency markets. Can I afford the time? I am unsure.

Trade Stocks

Trading Stocks is an attractive option as well. I have limited success with trading stocks and am trying to derive a strategy of stocks trading that will not require my daily attention. A weekly or monthly trading frequency will be highly suitable for my lifestyle and schedule. Is it possible for me to earn a million dollars from trading stocks? I think I am unlikely to trade with sufficient size such that the returns will be large enough to earn a million dollars. My current thinking is to devote only $50,000 to a non-leveraged stock trading account and to invest/trade in dividend yielding stocks.

Trade Options

I have an account with interactive brokers which I have left dormant for about a year now. A year ago, I was trading options actively but realized that I had to devote my entire waking hours to this effort in order to achieve any tangible rewards. Basically I burn out trying to trade options actively. This is still an option for me to accumulate my fortune or one million dollars but I would like to find a more laid-back strategy before committing my funds again.

Make Money Online

My graduate degree was on computer engineering and I was always attracted to the idea of making a living online. I have tried affiliate marketing using paid-per-click on google and yahoo and have only broken even. Recently I am trying to utilize google adsense for this blog as well as some hubpages and other sites and is starting to see some results. My assessment is that this is a very possible wealth accumulation strategy for my million dollars venture. Not only that, it would be possible for me to even create a passive income stream that can allow me to retire comfortably. I will be working hard on this strategy.

Gamble & Lottery

Definitely I will be buying my weekly lottery tickets and hoping for the best. But I am not about to put my hopes of retirement on a lottery tickets. Well maybe I can daydream about it each time I buy a ticket but this can never be part of my plan to retire. Any winnings will be a bonus to buy a nice dinner for the family or maybe a vacation to Switzerland..LOL.

Start a Business

Starting a business is also one of my dreams. I have explored a couple of possibilities and have come to the conclusion that it is very possible to setup small scale businesses which requires little maintenance by partnering with skilled and trustworthy people. For example, I have met with a hair dresser who is able to run a small-scale hair saloon but does have neither the capital nor the desire to start her business. She is an honest person whom I feel can be trusted to manage the business and a few employees. This would then create a passive income stream once the business picks up. Incentivizing her with profit sharing will allow me to start the hair saloon with her skills as a competent hair dresser as well as a shop manager. This is an idea still in the conceptualization stage and I would love any comments.

The above ideas are what I can think of from my own experience. If anyone has ideas for earning a million dollars, please share with me through the comments. I will keep you in my mind when I have earned my first million dollars :P.

Everyone of us has choices and I can either make the choice to leave my current job (very narrow industry and I won’t be able to get the same pay elsewhere) and risk not achieving my retirement goal of $1.5 million dollars OR I could hold on tight and continue my savings and investment plan, which my current job offers, and hit financial freedom at 45 years old. Tough choice for me. If I was still a swinging bachelor, I would not have thought twice. Not that I am complaining, I love my son and would sacrifice the world for him.

What would I do to make a million dollars? Would I risk my family lifestyle? Would I risk my financial freedom at 45? Those are tough questions for me but it is clear that there are things that I would not do to make a million dollars. I would not

- sacrifice my family’s wellbeing

- sacrifice my time with my son

- rob or hurt another human being

- lie or cheat or take part in any scams

But what are the things I would do to make this one million dollars? I ponder about what I would be willingly to sacrifice and I would

- sacrifice my after-office time

- have less sleep in order to work on any million dollars making venture

- have less social activities to work on my million dollars business

- invest up to $5000 for a business venture

Would doing all the above hasten my journey to my retirement goal of $1.5 million dollars? I would hope so. There are many ventures that I have already tried and while some have succeeded, there were many that had failed. I have taken a timeout recently to think about setting my goals but my thinking has not really crystallized yet. To help me on my journey, I am going to adopt the simpleology method to get myself faster to my million dollars goal. Perhaps I should document my simpleology journey here as well.

]]> http://onemilliondollarsonly.com/2008/06/what-should-i-do-to-make-a-million-dollars/feed/ http://onemilliondollarsonly.com/2008/06/how-to-make-a-million-dollars-leverage-your-social-capital-to-make-your-first-million/ http://onemilliondollarsonly.com/2008/06/how-to-make-a-million-dollars-leverage-your-social-capital-to-make-your-first-million/#comments Fri, 06 Jun 2008 20:16:31 +0000 One Million Dollars http://onemilliondollarsonly.com/?p=10 In my last post, i shared some information that i have collected from my interviews of 50 over millionaires. I shared on the ways that these average joes, who were like you and me, were able to make a million dollars. Many of them made their first million dollars through investment in real estate and the stock market. They were also many of them who were able to make a million dollars by starting a business.

In this post, i would like to share on what is one of the key common factor that have led to each of their success in making their first one million dollars. In my selection of potential millionaires for interview, i have chosen only millionaires who started with minimal tangible resources and made their one million dollars from scratch.

When you look at this data, you will probably think that the information is as expected. But take a moment to consider the starting profiles of these millionaires, they did not attend Ivy League colleges nor did they have rich uncles who own large silicon valley companies or long-distance god mothers who left them an inheritance. These are guys and girls who started from file and rank and broke free from the daily grind.

Why did they all say that knowing someone with the correct connections or knowledge was one of their key success factors? This was what i was interested to find out. As i delve deeper, each of them revealed that they were able to start a business with help from friends that they knew or invested in the right stock or real estate with advice from trusted professionals.

Before each one of these millionaires started their venture, they mapped out their connections to friends and professionals that they know. Not all of them may have mapped out their web of friends and professionals deliberately, but each have taken time to consider their network. I would suggest doing an exercise to mind-map your million dollar network, which is your social capital to make your one million dollars. I use a free software called freemind. You can download it here. It is a free and easy to use software for mind mapping. Below is an example. The names are changed for privacy considerations.

After mapping your million dollar network, you will be able to pinpoint where are your greatest leverages in your social network. You will be able to instantly identify where to get help when you need it. You will also understand where you could strengthen or build up so as to increase the effectiveness of your network. Raju Sykam created a local courier service in his city for businesses that needs to send documents and parcels within the city. He was able to use his million dollar network build up from his days working as a door to door salesman for office supplies. Now Raju is a millionaire boss who has more than 100 couriers working for him daily.

How to make a million dollars is not a difficult question to ask nor a difficult venture to start. To many of us, it is the tapping into our social network that will be the most difficult step of all. Some of us will feel that we are acknowledging that we are in need of help or that we are not successful yet and needs favors to get there. While some will feel that leveraging into our social capital is equivalent to making use of your friends. I say this to those of you who feel this way, the breaking of this barrier will be the most critical step towards making your first one million dollars and the sooner you step out of your comfort zone to reach out into your million dollar network, the sooner you will become a millionaire.

Note: Sorry about the pictures..you may want to click and view them in a new window for better resolution

We have all heard of the guy who made his fortune on the stock market and of the neighbour who sold his investment property and made a million dollars of the sale. I interviewed a Dave Sheldon, from Los Angeles, whom I met during an investment seminar late last year. He works in a training consultancy firm that develops training systems for companies, and he has joined the ranks of the millionaire when he sold his investment property in LA two years ago. Dave was an average guy drawing a four figure salary from his daily grind but invested in the real estate market ten years ago. When he finally cash in on his property, his profits was more than a million dollars and was more than sufficient to allow Dave to live the life that he has been dreaming of. Nowadays, he fetches his kids to school and is currently attending college again, to pick up a few more languages. By the way, Dave is only 35 this year. Is it possible for all of us to be like Dave? Join the millionaire club before 40 and escape the daily grind?

Where did all these millionaires make their millions? Are there many secrets that we are not aware of and need to attend $3,000 seminars to learn from? After speaking to more than 50 millionaires, I have compiled a simple statistic of where did these average guys and girls make their million dollars and how we can follow their example. Note that these are people whom I have met over a period of 3 months and have no relationship with each other whatsoever.

From my interviews and research, I could see that most of millionaires that I have met made their first million dollars from starting a business or investment in real estate or the stock market. This is not surprising since the last few years before 2007 were economically strong years. Significantly less folks saved a million dollars from paid employment or just spending less. What does this data tell us? Quit our jobs today and start a business in investment into real estate. LOL.

It does tell us that it is becoming difficult to become a millionaire by simply working hard on your job and hoping that your 401(k) plan will grow into a million dollars. At least it is not a popular method to becoming rich. Why so? The median income in US is $21,587, which does not leave much on the table for savings after you deduct expenses and taxes. Yes, taxes. To really jump onboard the million dollar club, most of us will need drastic actions and this path is likely the entrepreneurial route, where we can start a business which we are passionate about.

Starting a business is not for everyone. The financial risk that comes along with the business can be quite foreboding but if one take careful steps in managing the risk, the rewards can be extremely gratifying financially and emotionally. I will talk about starting a business in another post next time.

Despite the fact that each year 300,000 new millionaires enter the million dollar club, many of us cannot perceive how can we make a million dollars. We see it all around us, many success stories of average folks who pull themselves out of poverty and became multi-millionaires but to imagine ourselves in their shoes, we simply shut out that idea.

A Positive Attitude Towards Money

Worse still, some of us were brought up to think that the pursuit of wealth and desire of riches is a sin and we should be contented with whatever we have. That is probably one of the greatest stumbling blocks in the pursuit of wealth and to make a million dollars. The pursuit of wealth and to become rich is neither a sinful nor virtuous act. The pursuit of riches is a neutral action but how you eventually use your wealth will determine the morality of your actions. You must become receptive to the idea of chasing wealth otherwise you will never even see the goal. Staying positive and committed to making a million dollars starts from having a positive attitude towards money.

Does Hard Work Always Pays?

The other incorrect belief that we have been led to believe is that Hard Work always pays and that the pot of gold will lie behind every rainbow. Just chase that rainbow daily and you will see that pot of gold. That’s the story that we were all told and many of us, believing in that myth, slogged ourselves silly even at the expense of our health. Instead of making a million dollars, we become frustrated and want to leave our daily grind.

We have also seen some of the more senior colleagues in our workplaces who have achieved little despite years of slogging. Did he not work hard enough? Or was it just bad luck that he did not made it? Is hard work really the way to go? Your own experience should have already told you that pure hard work is not the way to go, if you are really keen to make a million dollars. To make a million dollars, you must be able to channel your energies correctly and very often, less work can mean better results than more work.

Have a Game Plan

Stop for a second to think. To make a million dollars, would you need a plan? Would you need a focusing of efforts so that you will not become worn out and give up along the way? Setting a game plan is one of the most critical steps to take towards earning that first million dollars.

Sit down and analyze your situation. What would it take for you to become a millionaire? What resources (friends, business contacts, experts, knowledge etc) do you currently have that can help you on your path? Do you need to make drastic actions to your current employment of life in order to achieve that first million dollars.

Sit down and think about how you can start towards making that first million dollars. You may eventually decide that loyal employment to a large multinational corporation is the best way to earn that one million dollars or you could decide that starting your own business is the only way. Regardless, you will have a plan. And that is the most important step for many millionaires that have come and go.

Deliberate & Unintentional Attraction

This phenomenon is what I call the Deliberate and Unintentional Attraction. Deliberate Attraction happens when we clearly desire an object or situation that we would like to be in. We are without doubts and have a single focus on our desire. In this situation, our energies will be directed by our conscious mind at our declared desire. Positive energies are emitted and we will attract the object or situation that we would like.

Unintentional Attraction happens when we have not cleared up our doubts about our desire or when we are unsure of what do we really want. If you consciously desire wealth but subconsciously pass snide remarks about why people do not really need that money to be happy, you will not only be not attracting wealth but you will be attracting situations whereby wealth can be lost from you.

Our unintentional attraction can also happen when we are constantly worrying. When you overly worry about the lack of money to pursue your studies, you will be attracting situations where your savings will be depleted.

It is easy for many of us to understand and believe in deliberate attraction when we discussed about the Law of Attraction but when the subject of unintentional attraction is raised, there will always be 2 camps. Opponents will raise the question whether a rape victim desired to be raped unconsciously or whether a murder victim desire to be killed. At the extreme end of the argument, proponents will argue that in both cases, the victims had desired to be victims. I would rather argue that the victims did not wish for harm to befall them but it is the criminal who had desired to do harm unto others; thus attracting the victims to come their way. But I digress from the main topic.

Law of Attraction is about attracting the Opportunities and not the Object in Question

There are many books and videos that have informed the general public that the Law of Attraction is about wishing for an object e.g. car and the object will appear to them. If it was so, everyone would be a multi-millionaire already. The Law of Attraction is about attracting the opportunities whereby your desire can be fulfilled. For example, if you desire a new job, what you will get is not a job offer but rather contacts with headhunters who are always ready to offer jobs. When you emit energies to attract wealth, you will start to see business opportunities come your way.

In this way, the Law of Attraction requires you not only to ask for your desires but also to deliberately accept them when the opportunities come knocking on your door. You have to make the final decision on whether to accept the chance to start your business ventures or whether to accept the name cards of the headhunters who you just happened to meet.

Visioning - Putting yourself into the scene

The other interesting topic about the Law of Attraction is the expression of the desire. Visioning of one’s desires is one key step to affirm your desires so that the Law of Attraction can get to work. To be able to emit the energies of wealth, you must first feel rich. You must be able to envision yourself in the endstate that you would like to be. If you wish to become wealthy and retire before your thirties, you will need to see yourself in that state. You can also reinforce the desire by using physical items to affirm your needs.

Using physical props is effective as it gives a tangible object for your desires to be focused on. For example, if you desire wealth, you should write a cheque to yourself and place that cheque somewhere where you can see daily. This will help you to visualize with greater clarity so that positive energies can flow and attract the correct outcomes.

The Law of Attraction can attract positive outcomes or negative consequences. It does not ask whether you would like a positive or negative outcome, but rather it acts according to the energies emitted by you.

Recently someone told me about the similarity of this project to something that has been around for many years. They called it Abundance Cheques, and the writing of abundance cheques after a new moon was supposedly able to gurantee wealth. I was even told that you do not need to believe that the abundance cheques will work for it to gurantee wealth to come into your life. I am stumped to say the least. Write cheques + No belief = Guranteed wealth?

Writing Abundance Cheques After A New Moon

The methodology of Abundance Cheques calls for an accurate calendar for the new moon. You will have to write the abundance cheques within a 24 hour period after the new moon. The abundance cheques must be written such that it is payable to yourself (put your real name in the cheque). Rather than a specific amount, you write “paid in full” in the box where you usually write the dollar value. Finally, sign the cheque “The Law of Abundance”. I read that even if you do not have a checking account, you can sketch out a cheque and follow the above .procedures. Wealth is guranteed.

Similarity Between The Secret Cheque and The Abundance Cheques

The abundance cheque idea and the secret cheque concept in www.onemilliondollarsonly.com share many similarities. Both leverages on the Law of Abundance and both ideas express a desire to attract wealth. However the concept of the abundance cheque does not require any belief system at all. That is where the two starts to diverge.

The basic idea behind the secret cheque in www.onemilliondollarsonly.com is based upon the Law of Attraction. Without belief in the possibility in attracting wealth, the Law of Attraction cannot work. This is because the Law of Attraction is about “like attracts like” and if you do not emit any positive energy about attracting wealth, no wealth will be attracted to you.

The Law of Abundance tells us that the Universe is plentiful and is willing to share with us all its riches so long we are prepared to receive it. This is where the new moon abundance cheques falls short without the basic element of belief. If you are going to write to yourself a cheque without thinking that this is going to work for you, then you will not be ready nor be able to see it when the times comes when the Universe presents the opportunities for you. Your mind will simply not be ready to accept that wealth is knocking on your door and you will be too skeptical to accept.

Believing in attracting wealth first is a perquisite to receive abundance in life. Writing abundance cheques without believing in them is like buying a lottery ticket, because when you buy a lottery ticket, you will not even think that the lottery ticket number you are holding is the winning ticket out of 450 million permutations; just like a new moon abundance cheques.

Should You Try Out The Abundance Cheque?

The next new moon is coming soon. The new moon will be on the 20^th May 2008 and it is only a day away. Should you give the new moon abundance cheque a shot anyway? I am not saying that you should forget it, by all means you should use the new moon as an anchor if it allows you to create a greater positive desire to attract wealth. I am simply saying that believing in your cheque is the foremost important step before you create the abundance cheque and for that reason, the cheques produced by this website www.onemilliondollarsonly.com is highly appropriate to express your desire in this coming new moon. If you need to, create a new abundance cheque for every future new moon. This site will always be here for you.

Click here to get your own One Million Dollars Cheque!

What is the purpose of the one million dollar cheque?

Some of you may have wondered why would anyone want a “fake” million dollar cheque? The idea of using picture of a million dollars or a one million dollars cheque to attract wealth is not an original idea that I dream up one day. I definitely cannot profess to be the originator of this ingenious but effective idea. I got the idea after watching “The Secret” DVD. It was the scene where Jack CanField, Author of the Chicken Soup for the Soul Book, used “The Secret” to attract wealth into his life by writing to himself a one million dollars cheque and visualizing what that one million dollars can do for his life. He immersed himself everyday with the joys of wealth by looking at his one million dollars cheque and visualized his dreams. He was able to attract vast wealth and I am using that same idea to express my intent and as a visualization tool

I put up the code for the million dollar cheque onto this website so that others can also practice the same technique. Click here to get your own personalized one million dollars cheque!

Law of Abundance

The fundamentals of the one million dollar cheque has its roots in the Law of Attraction and the Law of Abundance. Many people have confused the two laws and have often claim that the 2 laws are referring to the same principles. I beg to differ.

The Law of Attraction is about applying the principle of “like attracts like” to our conscious thoughts i.e. to say that we can use our positive or negative desires and emotions to attract, whether consciously or unconsciously, a change in the physical world that is resultant in a correspondingly positive or negative experiences for us. This Law is about attracting what you want by consciously desiring what you want and to believe that it will come to you. Whereas the Law of Abundance is about the vastness of the universe and the bountiful and endless supply of resources. When we are trying to attract wealth, the Law of Abundance then expresses that money or wealth is abound everywhere and that it is only our right to own it.

How can you start to apply the Law of Attraction and the law of abundance?

Applying the Law of Attraction and Law of Abundance to attract wealth or other desires into our lives is not difficult. What would be difficult is our belief in the 2 Laws. Do you whole heartedly believe that one can ask the Universe for what we want and the Universe will present itself to us?

Many of us probably are skeptical and would not believe it enough to start to applying the law of attraction and law of abundance to our own lives. I was that way until I watched “The Secret” DVD and seeing all the testimonies by these prominent leaders of our world. Even Albert Einstein was a believer and we all know what he achieved. Not sure what he was visualizing then thoughJ

Is This Million Dollar Cheque Going To Help You Become Rich?

Will this one million dollar cheque gurantee wealth and riches for everyone who stumbles onto this website? I seriously do not think so. 90% of you who are reading this blog will not even attempt to even print the cheque, much less to apply the principles behind the Laws.

This one million dollar cheque is merely one of the first steps to attracting one million dollars into our lives. If you have any doubts at all about the Law of Attraction and Law of Abundance, I would suggest that you watch “The Secret” DVD and read up some more on the 2 laws (subsequently I will also write a detailed explanation of the 2 Laws) and then decide for yourself whether these 2 laws are real. Once you are ready, come back here and join me to attract that first one million dollars.

How To Start To Benefit From The Law Of Attraction And Law Of Abundance?

To start to benefit from the Law of Attraction and Abundance, there are 4 keys. We must know what we Desire and then Ask the Universe for it. The Universe is refers to nature but some people also refer it to God (not trying to be sacrilegious here). We must then Focus our thoughts upon the desired outcome with actual feelings of enthusiasm or gratitude as if the desire had already been fulfilled. We must feel that we have already acquired our desires. Lastly we must be Open to receiving from the Universe.

Onemilliondollarsonly.com comes in at the Desire and Focus stage. It helps you to affirm your desire of attracting a million dollars into your life and it allows you to be constantly reminded of the intent to attract wealth. Not only that, you are able to visualize the desired outcome with better resolution.

I will end off this post here and I will come back again to update on my journey as well as to share my acquired knowledge about the Law of Attraction and Law of Abundance. Good Luck!

Click here to get your own one million dollars cheque!