468. On Being a Lender

"Neither a lender nor a borrower be." - William Shakespeare. This is advice that is a little over-simplified. If someone asks you gor a loan, examine what it is for. If the project looks like a winner and the person has a good track record, offer them a convertible loan. (No, this is not a loan for a sports car !).

A convertible loan is a properly legally binding loan agreement with repayment schedules and details all worked out and forming part of the agreement.

If the project is successful and profitable, you have the option to convert the debt (to you) into equity (shares) in the project and this will give you a share in the profits.

Two things to remember about convertible loans are that you should make sure that your equity is made up of VOTING shares, and that the loan is SECURED against their property, so that you will still get paid if anything goes wrong. This degree of due dilligence will sort out the wheat from the chaff.

467. Role-Models

Among others, you should pick the following people as role-models :
Bill Gates, Richard Branson, Warren Buffett, Paul Mc Cartney, Alan Sugar, James Dyson, Peter Kellner and Charles Schwabb. These are all hard-working men. Study their biographies for inspiration.

Work hard, work smart. There is no virtue in working hard for little or no reward. Work hard, but only on projects that will give you Assets.

466. Keep Schtum !

Keep quiet about your wealth and your plans for wealth-creation. Unless you are talking to people who are 100% supportive of you do not share this information. Other people's opinions can be negative and put you off what you are doing. Never allow yourself to be S.N.I.O.P.-ed, i.e. Subject to the Negative Ifluence of Other People. One way to do this is by inviting them NOT to give you their opinions in the first place.

Another very good reason for not telling them is that they may steal your ideas. You do not have to give away your best ideas.

It is always, i.e. WITHOUT exception bad for you to have others discuss your business amongst themselves. You do NOT want people around you to become jealos and try to do you down. It never costs you anything to keep silent. Omerta ! Herkos Odonton - behind the edge of the teeth.

465. Defining Wealth

How would you know if you were wealthy ? Could you become wealthy if you didn't have a way of measuring it ?

Wealth is a state of knowing.

One definition of being wealthy is living off the interest off the interest on your capital. You need to know, month by month, week by week, day by day, how much money the interest on the interest on your money is producing for you. Interest can be defined as ROI or return on investment.

To put it more viscerally, you need to know whenever you go out for a meal, the following 3 things :
(a) How much your wealth increased by while eating the meal,
(b) How much the meal has cost you and
(c) The difference between (a) and (b).
So long as (a) is greater than (b) then you are wealthy.

464. Start Afresh

Step up, make your move and say "YES". Each and every day starts with a clean slate no matter what has gone before. Meditating has the effect of cleaning the blackboard. You can make a fresh start any time even with your last breath.

463. Clarity Again

When you are going to deal with the changes in your life, learn how to re-arrange things in your mind.

462. More Advice from Alan Alda

When they offer you fame without the money, dont take it. It's a scam.