2. Section 1
• Don't get emotional about money. Don't cry about money. It doesn't cry for you. Cash is king.
Not assets. Not securities. Cash. The closer to the money you are the more money you make.
● You have to know what the long money is.
Where it is. And why it is. Then stick to it and
the people around I and you’ll notice these
people don’t care whether they are loved or
hated. love and hate are both emotional.
● Money and emotions don’t go together. The less
emotional you are the richer you will become.
Poverty and emotions are bedfellows. Rich
people would rather be feared. For it is harder to
defend money than to make it.
3. •Wealth is never visible. Wealth operates in the background. There is more money to be
made in concealment than in the public eye. Wealth is quite. Riches are loud. Riches last
a person's lifetime at most. Wealth lasts generations.
•Power is the peak of wealth. It is simply the natural progression in the defense of wealth.
4. • You are your greatest limitation and your greatest asset. People don’t make money. Money is
not made Money is attracted. Don’t bother with what people think or what people say. Don’t
listen to the little man who always sees what will go wrong but never sees why something
will work.
• Read, read, read. Follow your instincts. Know what you are working for. Take action. Don’t
procrastinate neither be in a hurry. Create, recognize and act upon opportunity.
• Move with courage and determination. Conceive, believe, achieve. Keep it simple. Give it a
try. Don’t give up. Shake things up.
• Do things differently. Affect lives positively. Yet always be a student, never ever imagine
you are the master even when people tell you so. Don’t complain instead listen keenly and
learn.
• Take risks, because safe is risky. Look for and attach yourself to problem solvers. Make
mistakes. Be part of a peer group. No time will be good as this. Don’t make excuses.
• In money terms focus on returns substance over symbols and maintain a diversified portfolio.
5. Section 2
• I know, this isn’t very exciting, but this is the definition of wealth. “Great wealth builders
focus on both saving money and earning more.”
• You've got to imagine yourself as what you want to be. If you seek to be a billionaire, you
have got to see yourself in that role today. If you want to be a business mogul. You've got to
see yourself as a business mogul. Today. Because once you see yourself in that role you start
to behave or at least think in a way that reflects that. If you take it very seriously you will
start to behave in very strategic ways like you already are.
• There is a gap between your expenses and your income. Expenses should always be lower
than your income. The larger that gap, the more wealth you can accumulate. Let’s face it.
You can’t invest unless you have money to invest. If you’re currently living beyond your
means and have no additional money to put to work for you, you’ll never build wealth
• Don’t be the bank's best customer. Banks aren’t your friends. They are in the businesses of
making money from your money and they are really good at it. So good in fact that you don’t
even realize it. Remember the banking business model is built on hiring out money.
6. • Banks want to hire you as much money as you can handle, and they actually don’t want you to
pay it back – they just want you to pay interest. In fact the best bank customer is one that
borrows as much as they can handle and only pays interest on the loan repayments – this is a
lifetime customer.
• Pay yourself first. Do not save what is left after spending, but spend what is left after saving.
It is that simple.
• A good debt is borrowed money used to purchase something that is likely to go up in value,
and that pays for itself through income earned.A bad debt is what you borrow to buy a luxury
item that depreciates in value the moment you acquire it like a car or a stupid item that has no
value at all like a holiday
• An investment asset is something that puts money into your pocket. An investment asset is
something that will generate income, so that you can eventually give up your day job and let
your money (wealth) work for you.
•Your house is a lifestyle asset, you can’t retire on it, but you can use it to make you rich. A
rise in the value of your house may lead to a wealth effect (you feel richer), this increase in
value won’t enable you to retire any sooner unless you sell it. Then there are capital gains
7. Section 3
• Circumstances very rarely just emerge. When they do we are usually not in a position to
take advantage of them. So first we must be always positioning ourselves to take advantage
of circumstances. But the smart thing to do is to create the circumstances. To be in a
position to create the circumstances. To do the things that push matters in your favour. Push
matters your way. If you do that then your preparedness has value and you can exploit the
opportunity.
• And with that in mind before you invest
in any enterprise look at the design of the
business. How well has it planned for the
future. The more intricately it is
designed. The more contingencies built
in. The more it looks to cushion against
adversity, the better.
8. Section 4
• Money is just a way of keeping score. Winning is what matters. Every single lesson in this
module. The module before and the one that follows is about getting you into a position to
win. Win. Win. Winning is a habit. Unfortunately, so is losing.
• Develop the habit of winning to draw in the money to constantly improve your score. Winning
isn't everything, it's the only thing but sure is better than losing.
• Make it your default position. Accept nothing less. Winning is fun... Sure.
• But winning is not the point. Wanting to win is the point. Not giving up is the point. Never
letting up is the point. Never being satisfied with what you've done is the point. Simply look
and see how you can do more.
• Success is almost totally dependent upon drive and persistence. The extra energy required to
make another effort or try another approach is the secret of winning.
9. Section 5
• Rome wasn't built in a day, but every day they were mixing cement, laying bricks and moving
ahead. The most successful projects are usually long tedious and drawn out affairs that sap the
energy and crush the spirit, yet one must keep moving on everyday plodding forward even
when all seems lost or to be going nowhere. That's how great things are built. Day by day.
Mostly doing exactly the same thing constantly tediously until you reach perfection.
• Model for success. Structure for success.
Build for success. Don’t just do for the sake
of doing. Do with the intention of
succeeding.Success is a factor of intensity
not extensity. Focus on what it is you are
doing and do not be distracted.
10. Section 6
• We live in a society where political correctness is prized over everything else. Where
everything is done not to offend. Where the opinions that oppose the politically correct view
are suppressed even censored so as to ensure that only one view is presented to be accepted.
Only one way is right. Uniformity has never made us better. It must be seen for what it is and
fought.
• Friendships are evolutionary. As we grow older. As our circumstances and positions change
our friends change. This is only natural. Your income will be an average of the income of
your closest group of friends. Friendships must be based on the same all the way through.
Similarities in views. Compatibility. Equitable ambition. Loyalty. If these are the foundations
the friendships may look evolutionary yet the foundations are very stationary.
11. • Experience makes you smarter yet your experiences are limited. The larger the pool of
experience that you can attach yourself to, the better.
• If you aren’t a billionaire yet and you seek to be, you will have to fundamentally change the
way you think. Differentiate between family, friends and money.
• Save on vehicles. Save on shelter. Don’t buy crap. High income does not equal wealth. Work
that budget. Know what your money goes to.
• Love the home you are with. Love the spouse you are with. Don’t drive away your wealth.
• The rich are different – they are happier. There are double-sided benefits of living below
your means.
• The first, of course, is that you can save more. But secondly, it also means that you
ultimately need to save less.
12. Section 7
• Now this is our shortest lesson of all. Go over the details with a fine tooth comb. The devil
lives in the details but so too does all the money.
• The idiom "the devil is in the detail" refers to a catch or mysterious element hidden in the
detail and derives from the earlier phrase "God is in the detail" expressing the idea that
whatever one does should be done thoroughly; i.e. details are important.
Section 8
• Look for absolute and comparative advantage. Then look for a clean and clear competitive
advantage.
• In economics, the principle of absolute advantage refers to the ability of a party (an
individual, or firm, or country) to produce a greater quantity of a good, product, or service
than competitors, using the same amount of resources.
• The benefit or advantage of an economy to be able to produce a commodity at a lesser
opportunity cost than other entities is referred to as comparative advantage in international
trade theory.Now reduce this to a lower level and look at it as you make investment decisions.
13. Section 9
• Most people ignore this rule and then cry long and painful tears.
• Have a safety margin. A margin for error. A margin of error is defined as “an amount (usually
small) that is allowed for in case of miscalculation or change of circumstances.” Be careful
about throwing everything into one investment. Do not put all your eggs in one basket.
14. Section 10
•Don’t be afraid of losses. Losses are lessons and when they get extreme then the lessons
are extreme as well.
•People go around doing everything no to lose money. Then lose a tonne of money on a
silly investment presented by a friend or relative without properly litmus testing it. Lose
money but lose money in the process of making calculated investments. Wealthy people
have lost money and have a string of stores and lessons to tell about their losses that they
take with them and help them to rise even higher. If you have a solid investment formula
then your losses will be partial and even beneficial.
15. Section 11 • Work to acquire assets. Later on we will
discuss this in depth but right now
understand that all your wealth initiatives
must revolve around acquiring assets and
not just any kind of assets your assets
need to combine the following three
qualities or contain at least one of them.
• First your assets should pay a
return. Second your assets should be as
liquid as possible.
• Third your assets should have the
potential to appreciate exponentially in
value as a maximum as a minimum to
pay capital gains greater than inflation.
16. Section 12
• Understand income….
• Don’t save money. Saving will never make you rich nor will it make your secure. Saving is
about safety. And safe is risky. Instead hedge your savings and make savings investments.
Buy equity in entities that pay dividends. Only invest the profit.
• Graduate from earner income to supplement your income with dividend income moving
towards investment income finally make sure 10 years before your retire you are earning
passive income then through your retirement make sure that your dividend income and
your investment income provide periodic boosts to your passive income.
• But always remember assets for the purposes of income, income, income. Not assets for
the sake of assets.
17. Section 13
• Examine the simple ideas. Simple can get really big.
• Simple ideas sometimes are too simplistic to be of any good but whenever presented with a
simple idea for the purposes of investment give it your ear. If it solves a problem or it is
reduces the costs or improves a process then you are onto something. The razor blade was a
simple idea. The mobile phone was a simple idea. Uber was a simple idea. Simple ideas make
billionaires.
Section 14
• Look for investments that solve problems, reduce costs in business through innovation and
integration.
• Give equity to fill in the gaps in your portfolio and to attract the talent and the capital to grow.
Invest no more than 5% of your savings for your investment in one idea and no more than
20% in of your savings for investment in one sector.
• Never ever invest all your savings in one investment. Just don’t do it.
