Invert Investment
One Thing RICH People BUY That Poor People Don't
InvertInvestment
Publish date: Sat, 15 Sep 2018, 05:20 PM
WARNING: You're not going to find a stock tip here that will double your money in one week. But I guarantee what you will find out soon is more important and more valuable than that. It will change your mindset entirely.
One thing that rich people buy but poor people don't is TIME
Why buying time is so important? Buying time is so important because while we can always make more money, we cannot create more time. Time is irreplaceable, a second passed is a second passed, you can't get it back regardless of how much you are willing to pay. The second you're reading this post, that second is gone. The second you're watching a movie, that second is also gone. All of us, no matter rich or poor, get 24 hours a day, 168 hours a week, 52 weeks a year. No more, no less.
You have 24 hours a day.
Warren Buffet has 24 hours a day.
Bill Gates has 24 hours a day.
Mark Zuckerberg has 24 hours a day.
Jeff Bezos has 24 hours a day.
George Soros has 24 hours a day.
Robert Kuok has 24 hours a day.
The key to fully ultilise your time is to know the value of your time and based on that, invest your time wisely. Before I delve deeper, let me chime in a little story of mine,
When I was younger, my father used to take me to the shopping mall. Every single time we went there, he refused to park his car in the shopping mall's underground parking area. I asked why. He told that it's expensive to pay RM1 per hour for the underground parking fee because he could probably find a free parking lot somewhere near the shopping mall. It turned out most of the time we were spending more than 10 minutes to find a parking lot which was about 5 minutes of walking distance from the shopping mall. So in total, (10 minutes of finding parking lot + 10 minutes of round-trip walking = 20 minutes) was wasted on this useless activity.
This is a prime example of not realizing how much your time is worth but merely fixating on the cost, which in this case is a petty RM 1 per hour. Being frugal is commendable, but unfortunately my father didn't understand that spending time to find a free parking lot has actually cost him more. He saved RM 1, but in exchange he lost his more valuable time, fuel, etc.
Measure the worth of your time
So how do we measure how much our time is worth? For simplicity, we can use our monthly pay. Let's say, you are earning Rm 6,000 per month. Every month has 20 working days. Each working day has 8 working hours. So your current hourly pay is (RM 6000 / 160 hours) = RM 37.5.
Now, you know how much your time is worth. I want you to double that amount, and call that future hourly pay (in our example, the future hourly pay is RM 37.5 * 2 = RM 75). The reason to double your current hourly pay is that you don't want to be stuck in your current hourly pay forever, you need to continually increase the worth of your time. This is very very important.
Before we move on, do yourself a favour, calculate your future hourly pay as an exercise NOW:
My current monthly pay is: ________
My current hourly pay is : ________ (current monthly pay / 160 hours)
My future hourly pay is : ________ (current hourly pay * 2)
Once you've established your future hourly pay and equipped yourself with the correct mindset, you will suddenly realise many things which you're doing right now aren't worth doing at all. For example,
1. You wash your own car for an hour (and get tired for the next hour) because you think paying the car wash centre RM 15 is a lot.
2. You don't want to waste RM 2 for the parking fee, so you park your car far away from the destination and walk 10 mins to reach your destination.
3. You don't want to pay RM 2 for the toll fee, so you take a long detour for extra 25 minutes.
4. You go to three different malls to compare the price of the same product for two hours just to save a few bucks.
All of the above have very bad return-on-time-invested, they just simply don't match your future hourly pay. I'm sure you could've found better things to invest your time rather than being so penny wise. You can, for instance, read books, learn new skills or explore investment opportunities.
Conclusion
Before you close this post, make sure you've calculated your future hourly pay to know how much your time is worth from the above exercise, and start buying yourself time based on that. Your future hourly pay is a good yardstick for you to eliminate the need for you to do the activities that don't match the value of your time. And conversely, you should start doing things which will move yourself towards your future hourly pay.
If you find this post useful, please share it to your friends, relatives and family members. I believe there are many people who need to get more out of their precious time than to spend their time on useless activities. Feel free to like my Facebook page to see more posts like this coming out weekly. Have a good weekend!
http://fb.me/invertinvestment
15 Sep 2018
- InvertInvestment
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"The Most Important Thing" by Billionaire Howard Marks - part 2
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Discussions
3 people like this. Showing 26 of 26 comments
As the saying goes, Rich people buy time, poor people sell time:)
Posted by probability > Sep 15, 2018 05:31 PM | Report Abuse
agree...thats why at certain point in time its worth to resign and go full time on stock market like Icon mentioned provided you have a little of what it takes and your capital is big enough.
its pointless cracking your head in the office...
2018-09-15 18:32
....sell.....
.....family.....and life
The cruelty, sin and imperfection of capitalism
2018-09-15 18:44
Since time is essence, we already lose 61 years to outperform. we've to call a spade a spade. Look at the current education state and the new minister. why all still silent, sing praise of new govt's mediocrity?
2018-09-15 18:48
This is misleading. For a lot of people, as far as I can see, their time is worthless after working hour. Is better they waste their time than wasting money. Every penny matter.
2018-09-15 19:59
Could it be ......they are so lost....
.....in the universe?
Lost soul?
(Can you elaborate more?)
2018-09-15 20:04
Probability. What I meant is “ the minimum capital requirements stated by Icon.
2018-09-15 22:14
It doesn’t mean getting sack. There are more conditions besides getting sack. Hard to say la.
Posted by probability > Sep 15, 2018 10:13 PM | Report Abuse
getting sacked you mean...i am just hoping that will takes place sooner than later...
so that i dont have any guilts..he he
2018-09-15 22:15
Time...is Life .....is $$$. We may have the tendency of putting our time in $$$ form. Count how much time and money worth before having a fun with family. How much $$$ costs for sleeping and rest.....this we call it LIFE? Lolz
Posted by EngineeringProfit > Sep 15, 2018 05:34 PM | Report Abuse
And TIME .....in a way.....is LIFE
2018-09-15 22:26
As long as we put our time......experience......everything (tangible or not) in $$$ term (or form)
........we have not achieved FINANCIAL FREEDOM
(The latter requires reasonably significant amount of $$$
.........but definitely maximally cultivated mental & spiritual strength)
2018-09-15 22:40
https://www.thestar.com.my/news/nation/2018/09/15/kit-siang-gets-angry-reading-about-jho-lows-alleged-antics-involving-britney-spears/
For Jho Low's 31st birthday celebration in November 2012, he allegedly splashed millions of US dollars to get Britney Spears to briefly pop out of a fake birthday cake, for South Korea's Psy to do a live show, and for Alicia Keys' husband to arrange things.
This was part of the book "Billion Dollar Whale" shared by DAP advisor Lim Kit Siang in a speech at Teluk Intan, Perak today (Sept 15).
Lim cited the book about how Low had allegedly hosted a circus-themed extravaganza that would be known in Las Vegas as the most expensive private party ever held.
The party supposedly included an indoor Ferris wheel, circus performers, and a who’s who of Hollywood – including stars like Leonardo DiCaprio.
Spears reportedly took a six-figure sum in US dollars for her brief cameo while Swizz Beatz, Low’s producer friend and husband of Keys, received US$800,000 (RM3.31mil) for an evening's work.
"Low arranged for every aspect of the event to be paid from the 1MDB bonds," Lim claimed in his speech during the opening of the DAP Teluk Intan service centre.
The book “Billion Dollar Whale” is written by the Wall Street Journal’s two award-winning journalists Tom Wright and Bradley Hope.
Why was the book titled as such? Lim said he initially thought it was because of Jho Low’s size and appearance. But he discovered the answer in page 3 of the book:
“Casino operators and nightclubs refer to their highest rollers as ‘whales’, and one thing was certain about Low, he was the most extravagant whale that Vegas, New York and St. Tropez had seen in a long time – maybe ever”.
Low also supposedly stayed at the most opulent "Chairman Suites” at Palazzo in Las Vegas, priced at US$25,000 (RM103,000) per night.
Another book mentioned by Lim is that by Clare Rewcastle Brown: “The Sarawak Report – The Inside Story of the 1MDB Expose”.
Lim said, "The more I read the two books, the angrier I became... how tens of billions of Malaysian ringgit and the future of the present and future generations of Malaysians could be so easily and irresponsibly stolen and pawned away!"
"I thought I had known more than ordinary Malaysians about the criminality and moral turpitude of the 1MDB scandal, but I was completely floored by the scale and scope of the immorality and brazenness of the two protagonists of the 1MDB scandal which transformed Malaysia into a global kleptocracy."
He claimed that the two were Datuk Seri Najib Razak and the "real operator" of 1MDB, Jho Low.
Lim cited former US Ambassador to Malaysia, John Mallot, that the 1MDB scandal is even worse than what one had thought.
As John Mallot wrote in his recent article on “Billion Dollar Whale”:
"Jho Low put Malaysia on the map, but for all the wrong reasons.
"The Najib in this book is incompetent and uncaring and doesn't care to learn the details - as long as he gets money for his political purposes, and as long as his wife, Rosmah, is happy and gets what she wants.
John Mallot added, “The authors talk about Imelda Marcos and the 1,100 pairs of shoes that were found after Ferdinand Marcos was overthrown in the Philippines.
“But even if each pair of shoes was worth US$1,000 (RM4,140), that still is only a million dollars. The Malaysian police say that all the ‘loot’ confiscated from the Najib family home and condos added up to US$273 million (RM1.13bil).”
Lim said, "Those who claim that 1MDB is fake news, an elaborate international conspiracy to topple a freely-elected Prime Minister in Malaysia should just read these two books."
He added that the two books should also be translated into Malay, Chinese and Tamil.
2018-09-16 01:03
Somehow your points are right but it cannot be considered as totally right because.
1.You can consider washing car as a fitness training where it goes to health.Wealth is health.
2.I agree with you about parking, but if you are living in town like Tokyo, maybe you will consider to park your car at cheaper place.I live in Tokyo, so roughly 1 hour, parking fee is about 25RM.
Basically its the way you think.I think its hard to say that your thinking is right.
Cheers.
2018-09-16 02:36
Dear author invertInvestment,
Your argument on equating time in money equation is the concept of capitalist at its worst. Time is priceless no amount of any money can buy times. Nor can you buy health, love and life. Hence spend your times wisely.
Rich or poor is not solely measure by what you own but by what you have give/contribute and how people will remember you when you are gone.
What good it is for a man to gain the whole world but loss his soul, his friends, his family and his good name?
Life must find a balance, at time we need to slow down to smell the flowers, see the trees, feel the wind, hear the birds sing and hold hand with your love one. The 10 minute walks with your parent or the hour you wash your car with your kids or hours spend with you family widow shopping might turn out to be the last time you spend with them so treasure every moment.
https://www.youtube.com/watch?v=6TeZtII7maM
Last Words Spoken by Steve Jobs Before He Died
Thank you
2018-09-16 09:09
When someone equates lost time with the opportunity cost of money, one becomes a slave to money... And since when a slave is ever happy?
Your work is going to fill a large part of your life and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking, don’t settle. As with all matters with the heart, you’ll know when you find it - Steve Jobs
2018-09-16 09:49
thanks sslee
Posted by Sslee > Sep 16, 2018 09:09 AM | Report Abuse
Dear author invertInvestment,
Your argument on equating time in money equation is the concept of capitalist at its worst. Time is priceless no amount of any money can buy times. Nor can you buy health, love and life. Hence spend your times wisely.
Rich or poor is not solely measure by what you own but by what you have give/contribute and how people will remember you when you are gone.
What good it is for a man to gain the whole world but loss his soul, his friends, his family and his good name?
Life must find a balance, at time we need to slow down to smell the flowers, see the trees, feel the wind, hear the birds sing and hold hand with your love one. The 10 minute walks with your parent or the hour you wash your car with your kids or hours spend with you family widow shopping might turn out to be the last time you spend with them so treasure every moment.
https://www.youtube.com/watch?v=6TeZtII7maM
Last Words Spoken by Steve Jobs Before He Died
Thank you
2018-09-16 11:18
Hello xgakuseix,
Compare the below two:
1. You wash your own car for an hour (and get tired for the next hour) because you think paying the car wash centre RM 15 is a lot.
2. You can consider washing car as a fitness training where it goes to health.Wealth is health.
These two are coming from different perspectives and they want to achieve different goals. The first guy wants to save money but he ends up losing more because he doesn't value his time. The second guy wants to treat washing car as exercise, so he opts for washing the car himself.
So my point is don't try to be extremely penny wise in our lives because doing so often times causes us to lose more (if we just take a step back and think about it, it's true). When we are always thinking how to save every cents we can, we are losing the time to think/execute the right things to make more money.
Posted by xgakuseix > Sep 16, 2018 02:36 AM | Report Abuse
Somehow your points are right but it cannot be considered as totally right because.
1.You can consider washing car as a fitness training where it goes to health.Wealth is health.
2.I agree with you about parking, but if you are living in town like Tokyo, maybe you will consider to park your car at cheaper place.I live in Tokyo, so roughly 1 hour, parking fee is about 25RM.
Basically its the way you think.I think its hard to say that your thinking is right.
Cheers.
2018-09-17 13:00
I do get your general idea, but sometimes it is about doing the right thing at the right stage, and "eliminating activities that don't match the value of your time" assume the value of things are always the same. And it also assume we have perfect information about the future.
As an example, in most VC or startup, there is the saying 'do things that don't scale", means you have to do the hard things that cannot scale in the early stage i.e talking to customers, do own budgeting, cold calling etc. In the early days of Airbnb, the founders have to personally go knock on the door in the neigbourhood to persuade people to list their property on their website. How would they know what is the future value of their time? They don't. If Airbnb become a huge success, which they do, then of course those time are well spent, that prove to give a future value of 10000x. But if Airbnb fails, at hindsight, they might think those efforts are wasted, probably better to get a job.
But I get your general idea that there are things that below a certain threshold that you shouldn't even think about saving money on like your examples. If a person is a long-term investor, why waste time checking the price every minute, asking others opinions, or getting excited the price is going up 5 minutes ago.
2018-09-17 15:15
we just lucky our mother dont start counting her time and eneegy lost taking care of the family...mowing lawn, washing plate, all the housework...fetch kids to school, tuition. hahahahaha.....
anyway, since time so valuable, make sure when pangsai very urgent only go or else waste alot of time in toilet...
smoking cigarate oso another waste time thing...hanging out in pubs n clibs oso...even dating gf is a waste time thing. one hour worth rm50+ fnb wit gf+movie+blabla...aiyo...stay at home read book more worth it! or make use of paid wifi surf net full full.....lidat correct mou?
2018-09-17 15:24
Hello Sslee,
Thank you for your reply. I've been thinking for some time before getting back to you.
Just to be clear, I'm not advocating people to sacrifice their time spent with their beloved ones. Those moments are priceless. One shouldn't say "I'm spending 1 hour with my kids, so I just lost RM100" or something along the line. No, that's not my intention at all.
What I hope to achieve in this post is to make people realise, and get a sense of how much their time is worth, so that they don't commit the same mistakes as I pointed out in the examples, e.g. going to three different malls to compare the price of the same product for two hours just to save a few bucks.
Love this --> "Life must find a balance, at time we need to slow down to smell the flowers, see the trees, feel the wind, hear the birds sing and hold hand with your love one. The 10 minute walks with your parent or the hour you wash your car with your kids or hours spend with you family widow shopping might turn out to be the last time you spend with them so treasure every moment. "
Posted by Sslee > Sep 16, 2018 09:09 AM | Report Abuse
Dear author invertInvestment,
Your argument on equating time in money equation is the concept of capitalist at its worst. Time is priceless no amount of any money can buy times. Nor can you buy health, love and life. Hence spend your times wisely.
Rich or poor is not solely measure by what you own but by what you have give/contribute and how people will remember you when you are gone.
What good it is for a man to gain the whole world but loss his soul, his friends, his family and his good name?
Life must find a balance, at time we need to slow down to smell the flowers, see the trees, feel the wind, hear the birds sing and hold hand with your love one. The 10 minute walks with your parent or the hour you wash your car with your kids or hours spend with you family widow shopping might turn out to be the last time you spend with them so treasure every moment.
https://www.youtube.com/watch?v=6TeZtII7maM
Last Words Spoken by Steve Jobs Before He Died
Thank you
2018-09-18 11:16
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Why time not shares?
2018-09-15 17:24