Financial Freedom

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Financial Freedom Powered By Docstoc
					        Simple Real Life Malaysian Strategies
                    To Achieve Full Financial

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Preface                                                          6

Chapter 1    Fundamentals of Success - 9 Day Review              7

Chapter 2    Every Single Sen Counts : Savings Strategy          12

Chapter 3    The Six Money Secrets                               14

Chapter 4    Understanding Your Expenses                         18

Chapter 5    Short Term Job Requirement                          25

Chapter 6    The Financial Freedom Goal : Setting the Stage      33

Chapter 7    Investing in Stocks & Unit Trusts                   39

Chapter 8    Real Estate : Key Ingredient to Financial Freedom   47

Chapter 9    Internet - The Ultimate Money Making Machine        53

Chapter 10   Let’s Set Your Overall Financial Freedom Strategy   75


You have stumbled into a fortune by accidentally reading that classified selling this precious
manual. Not many people in Malaysia will have such an opportunity as you. The money you
spent to get this manual comes nothing close to the door of wonders that has been opened to you.
In this manual, I will teach you all there is to achieve 100% financial freedom. This is no mambo
jambo self improvement book you normally see in the stores. I will present you clear strategies in
fact very simple straightforward strategies to achieve FULL FINANCIAL FREEDOM in 3 years
time. This is my pledge to you. This is indeed the first time ever you’ll ever see such a manual in
Malaysia. Written for the layman, to make sure you fully understand and ready to implement all
that has been taught. In 90 days time, you will start to see money coming your way.
         It has been my passion of showing other people to achieve the same financial freedom I
have enjoyed. I have learned from many people, from books, from gurus like Tony Robbins,
Robert Kiyosaki and many others. What you get in this manual you will not be able to find in
those books. It is a combination of all the skills gained and a real working methodology suited
only for Malaysia. If you are from outside Malaysia, you may try to suit these methods. It can be
used anywhere but is more suited to the Malaysian climate.
         I must say we are all blessed to be born in Malaysia. Whether as a bumi or not, everyone
has the opportunity to live in peace and harmony with all the vehicles available to achieve
financial freedom. The capitalization of Malaysia coupled with our open economy and
infrastructure allows us to not only venture domestically but also globally.
         I have actually put power of Internet as Chapter 9, but it is in fact the most important part
of this manual without doubt. I have explained the other money making strategies first so that in
combination you can use them with the power of the Internet. Internet allows us to connect with
other people in this world within seconds. It is indeed a gift from god in many ways. It allows us
to sell and break all the barriers that have engulfed us all these decades. We should have no more
reason not to make money from the comfort of our home. I suggest you concentrate fully on this
magic power of Internet money making machine.
         I also urge you to read every single word in this manual. Do not skip any of the pages.
Every single sentence I wrote is there for a reason. You can also read this manual again and again
or make photocopies and bring along in your wallet for easy reference. Do the exercises and use
the tools in your real life. You will start to realize within 30 days if you fully utilize all these
tools, in 3 years time you will be living your life the way you please. Going anywhere you like,
doing the things you love most and not having to answer to anyone.
         This manual can be used by anyone of any race and creed or by whatever status in
society. By whatever education you’ve received, by whatever salary you’re earning. No matter
you’re a housewife or a school teacher, these methods will definitely help you. I also urge you to
become a member of my website as will be explained later. Things change at light speed these
days. Whatever I’ve taught you here may not be true anymore within seconds at the way the
world is moving these days. The website will provide you all the latest updates you need as well
as being able to interact with me as your mentor and also with others. Good luck!


                         CHAPTER 1
             Fundamentals of Success - 9 Day Review

There are 9 fundamentals of success you must be able to understand and be the best you can be
for each of them. I suggest you print these nine fundamentals and stick them to a wall so that you
can see them everyday. You will need to concentrate on them and believe that these will be the
nine areas that will impact your life. You will target and practice each fundamental in 9 days for
each one of them. Allocate one day each on what needs to be done for each fundamental.

                      Relationship                            Physical
                       Mastery                                Mastery

                    Time                                            Mastery
                   Mastery                SUCCESS

                    Goalsetting                                     Mastery
                                    Computer            Mastery

                             FIGURE 1.0   NINE FUNDAMENTALS OF LIFE

Virtually everything we do is to change the way we feel. In many instances including from my
own experience, this is perhaps the most important mastery you must possess. In many cases
people with so many talents, skills, education background fail miserably in their lives because
they were not able to control their emotions. When I first achieved my full financial
independence, I didn’t know what else to do with my life and was looking for directions as to the
meaning of life. Within an instant I destroyed all that I achieved then. I didn’t need to work
because money was coming in every month and I had all I needed, nobody to work for and didn’t
need to go anywhere. It can actually destroy you. Too many people let outside events take control
of our emotions for no reason. Let me give you an example, the fact that your friend has now
become more richer or more successful than you has left you ashamed and with a sense of defeat.
Whereas this event is quite insignificant as you can change yourself and perhaps become even
more successful in your life or perhaps you are already achieving more successes in other areas of

your life. Take advantage of your emotions and do not use it as hindrance to improve yourself.
Give also priority on your spiritual needs. Visit more of your mosque, church, temple or whatever
your beliefs are. Without this as a fundamental to your life, you will not find a purpose to your
being, and everything else will fail automatically before you can even start realizing it.

This is quite an important mastery which many somehow forget or simply ignore. I’ll ask you a
simple question. Is it worth it to have everything you’ve ever dreamed of, yet not have the
physical health to be able to enjoy it? Do you wake up every morning feeling refreshed and
energized? Or do you wake up feeling just as tired as before. We cram our bodies with high-fat,
poison our systems with cigarettes, alcohol and drugs and sit passively in front of our TV sets.
You will need to control your health and your looks as this will inadvertently control your
emotions and the other masteries explained in this chapter. You must put priority on health over
anything else because without it you may not achieve the success and financial freedom we so
eagerly try to teach you here. I guess you can easily go out and buy any book on fitness and
health. But I can teach you some fundamental steps to increase your health. When I complained
to my doctor last time about me always being tired or how to reduce weight, he always advised
me to eat as you need and exercise everyday. These are actually the two only ways to actually
increase your health. Reducing weight is the best way to tell whether you have improved your
health. However, to let you start of with something, let me guide you the steps you can straight
away do. Remember I am not a doctor, so please go and get a professional’s advice for this area.
Step 1 : Go and see a doctor and do a full blast medical examination and perhaps ask for the
doctors advise. This is the first step. You can actually deduct this from your tax or if you’re
covered by your company better still. The main things you need to look at is your cholesterol
levels, your sugar level and others.
Step 2 : Calculate your Body Mass Index (BMI). Ask your doctor about this. BMI is made up of
your weight and height. If you are overweight, work to achieve your optimum BMI level ie.
reduce your weight to achieve that.
Step 3 : Try controlling your intake of fat and cholesterol. I promise you’ll feel better not stuffing
your stomach with too much intake. In other words, try to eat less but more frequent and don’t
skip any of the 3 main meals. Take more fish and vegetable and take less meat.
Step 4 : Drink at least 8 glasses of plain water daily. This is not air limau, soya bean or whatever.
Just get as much liquid into your body as possible.
Step 5 : Exercise daily. People always complain about not having the time to exercise. That is
perhaps the worst myth possibly created by mankind. All you need is 15 minutes a day doing
simple exercises like taking a jog. Better still you can allocate 10 minutes in the morning before
taking your shower and 10 minutes after coming back from work. If you can allocate more time
the better. But again start slow and faster as you go. If you prefer other sports like swimming,
tennis or golf by all means do but again jogging (aerobic activity) is the best sport to burn your
fat. You’ll learn about making time later on from Time Mastery covered later.
Step 6 : Stop smoking and drinking. This way you save money as well as save yourself and
others. I know it’s difficult and you may have heard this like 1 million times but this is the only
way. I do not wish to dwell to much in this step.
Step 7 : Make sure you get enough rest and sleep. At least get 7 hours daily. Your brain work best
once you get enough rest. It’s not the quantity that matters, it’s the quality. Once in school, I
asked someone who scored 102% in Add Maths, what was the secret? He said he had enough
sleep before the test.
Step 8 : Take holidays, hiking the jungle or walks along the beaches. It not only improves your
physical well being but also your emotional well being.

What’s the use of all the wealth and success if you can’t share it with someone. Would you want
to have all the money to travel around the world but with no one to go with. Sometime ago, I
went to Paris somewhere in the 1990s. It was my dream then to see Paris, to go to the museums
etc2. But as I was alone, I got bored fairly quick and went back to my hotel room for a nap.
Therefore, you must master your relationships – romantic, family, business, friends and social.
I’ve found that for myself, it is the greatest resource because it opens up the door to all the other
resources I’d need. Give priority over this as it will be very important to your life.

95% of this manual will be talking and giving tools and strategies to achieve this strategy. I will
be explaining very much more in the later part of this manual. However, again money is not
everything. But whatever comes second is far from it. We always fantasize that money will solve
all our problems and relieve all our pressures. The key is not the mere pursuit of wealth, but
changing your beliefs and attitudes about it so you see it as a means of contribution, not the end-
all and be-all happiness. Gain wealth and financial freedom so that you can contribute to your
society, family and religion.

This is the mastery that is most lacking for most Malaysians. We are known worldwide for not
being able to keep to time. Always blaming on some other thing like the traffic jam. We are so
used to it that we think there is absolutely nothing wrong with it. We always make fun of the
phrase “Malaysian time”. We also most of the time just go on with our lives and without noticing
it, time just pass by. You’ve heard the saying Oh! there goes my weekend again. Well, without
time management all other things can never be achieved. There must be like dozens of books out
there teaching everything you need to know about Time Management. But in summary let me
give you some steps to control your time.
Step 1 : Analyse your current life and see how much time you are allocating for each activity.
Take some time sitting down and preparing list of activities you do and time you’ve been
spending for each. For instance, what time do you normally wake up and what time do you sleep.
How many hours do you spend in a week for TV, traveling to work, eating, holidaying, etc2.
Locate the gaps in times taken for each activity and improve time taken to do them. For instance,
you may want to reduce time for TV to just 1 hour for the TV3 news each day.
Step 2 : Prioritize your time and allocate number of hours for activities you think that is most
important to you. Collect all the gaps in the times and allocate more time to activities you think
which is more important. Example, let’s say you normally spend 15 minutes after work watching
the 6 o’clock news, why not spend the time to exercise and watch just the 8 o’clock news on
prime time.
Step 3 : Plan your times and activities. You can start allocating more time for exercise and
Internet surfing from cutting times from watching TV for instance. For example on a normal
weekday, you can plan like below :-

               11:00 am     -   6:00 am         Sleep                            1 hour
               6:00 am      -   6:30 am         Jog                              ½ hour
               6:30 am      -   7:00 am         Shower and coffee                ½ hour
               7:00 am      -   7:30 am         Go to work                       ½ hour
               5:30 pm      -   7:00 pm         Arrive home and exercise         1 ½ hour
               7:00 pm      -   7:30 pm         Shower and rest                  ½ hour
               7:30 pm      -   9:00 pm         Eat, news and talk to family     1 ½ hour
               9:00 pm      -   11:00 pm        Internet, making money           2 hours

              FIGURE 1.1   TIME TABLE OF LIFE

Step 4 : Write out your plan and stick it on a wall. And make sure you stick to them. After each
week analyse whether you are able to meet them and try to improve on them.
Time is money, time is gold…. Especially in this era of globalization and internet, time is of
essence. Later I’ll you many other ways to save time by jumping into the Internet. Chores
normally needing your Saturdays or lunch hour to do can all be done from the comfort of your
office or home. I’ll guarantee you’ll be able to save almost half a day if you creatively optimize
your time by using new methods I’ll explain later.

So you may think that you’ll just have 2 hours a day to make money. Reality is you have the
weekends to play around with. Let’s look at it in more detail. In a month, you have 4 weeks with
2 days off being Saturdays and Sundays. Let’s assume Sundays is your day off to concentrate
on your social life, family life and holidays. So you have 4 days in a month. In a year you
should have 48 days. Then normally, you should have 15 days a year of leave. Combine that then
you’ll have 63 days in a year time for your money making business. Malaysia is blessed because
we have nearly 15 days of public holidays each year. Add that up you’ll have 78 days. Therefore,
the 2 hours on weekdays you spend adds up to 480 hours a year of almost 20 full days. All
together you have 98 full days for your own business or 3½ months to fully concentrate your
efforts on your own business. I’m sure you can build many businesses in 1 years time with all this
time in hand.

Success is goals, and all else is commentary. All successful people are intensely goal oriented.
They know what they want and they are focused single-mindedly on achieving it, every single
day. Be absolutely clear what exactly are your goals. Set a long term goal with short term goals
within it. Think about the future and create a Five-Year Fantasy. Imagine what your life would be
in 5 years time. Take some time to close your eyes and imagine it as though it were so real.
Therefore, everything you do from now is to attain those goals. How would it look like if you
have full financial freedom? Will you still wake up early morning? Where would you go at 9 am?
Will you still buy the papers or busy going to see people and planning your business empire with
your employees. Imagination makes things happen. Without it Columbus wouldn’t have sailed to
America. Parameswara might have not reached Melaka! Man might not have reached the moon!

All work makes Jack a dull boy! Stress and tension will destroy you. Take some time off!
Exercise is one good way. Perhaps plan for a holiday once in 2 months to anyone of the
Malaysian islands. Plan it properly so that you don’t overspend. Or go for weekend picnics or to a
waterfall. Or even just go window shopping at one of the many KL shopping centres. If you’re
stressed out, take a short walk and enjoy nature and surely take some time to think and reflect on
life. Stress kills… I’ll explain more at the end of this manual after learning all the methods and

Finally, Computer Mastery is something you cannot live without. I would like to spend more time
explaining how important this mastery is these days. If you do not master this skill, you’ll be left
out completely. My entire manual will depend on your mastery of computer skills. You need this
in your job, your expenses, budgeting, paying taxes, doing online-banking, paying your bills,
paying utilities, paying your summonses, reading the news, hearing music, entertainment and
finally most importantly making money on the internet. You’ll save a lot of time. Time you can
spend to do more important things. For example, you used to have to go to Kedai Telekom to
settle your bills every month. If you pay online, you can already save at least 1 hour a month
already, time which you can spend trying to make money online. With this you’ll save petrol

money by not getting stuck in traffic jams, money you can use to invest instead. I’ll try to give
simple steps you can take to master this as quickly as possible. Those who are masters of the
universe in IT can skip this else, follow these simple steps :
Step 1 : Obvious enough. Buy a computer. You won’t need all the fancy graphics cards and
biggest monitor or the flattest most colourful PC you can find. All you need is a fit for purpose
PC that can run Windows, Words, Excel, Internet and more. A package consisting of 1.70GHz
Intel Celeron with 40GB Hardrive and 15” Monitor is all you need. As I’m speaking it would cost
you only RM 800.00 for everything at Low Yat Plaza, Imbi KL. So go and get one, just to start!
Step 2 : It would take some time to be good in Windows, Excel, Words, Internet Explorer and the
likes. For me it has always been trial and error. Sooner or later I’ll learn it. But that’s me. For you
perhaps a 2 day class on a weekend to cover everything is necessary. These courses range
between RM150-RM300 for everything, Windows, Words, Internet etc2. It’s worth the
investment. Buy also a book on learning Words, Excel etc2. A Dummies Guide to learning
Windows should be sufficient. Remember again you can claim this book expense as a tax
Step 3 : Get your required softwares from Low Yat Plaza. Spend some time browsing the area
and talking to the store keepers. You’ll be surprised you’ll learn a lot from them.
Step 4 : Finally, start allocating at least 1 hour a day just playing around with your PC. I’m sure
you’ll use a PC at work also, so you can do plenty of trials and errors there as well.
Step 5 : Get Internet Access. I’ll explain why Internet is so important in later part of this
manual. I’ve dedicated one entire chapter just to explain this. But basically, a dial-up account
with Tmnet is not enough. Get Streamyx ie. broadband access. You just need to pay RM66 per
month to get unlimited access with download speeds up to 380 kbps. Your normal dial-up is
56kbps speed with sometimes problematic access. This is money worth spending as Internet will
be one of your most important Money Making Tool in order to achieve financial freedom in 3
years time! Check whether your area is serviced for Streamyx by going to your nearest Kedai
Telekom. You can also get more information by going to
Step 6 : Create networking with friends or joint ventures and share computer skills or ask them
for tips on problems you may encounter while online or using your PC.
Step 7 : Make sure you learn Excel. It is a very important tool. Majority people don’t really
know how to use spreadsheet. What a pity this must be one of the most important softwares ever
created in the PC era. You’ll learn how to budget, properly cut your expenses and calculate
revenues and more. Make sure you master Word as well. Notice that a lot of Malaysian
governmental bodies, banks, companies etc2 only take action if you send a formal letter copied to
their supervisors. By a laser printer as well, cost you RM200 if it helps.
All in all you might have to spend at most RM1,200 on a PC and training and RM66 per month
on internet access. This is a worthwhile investment to achieve your early retirement I assure you.

I will show you later on how important this rule is on other things to achieve success in financial
freedom. But briefly for a start, let me explain this very important rule. The 80/20 principle or
better called the Pareto principle was founded by an Italian sociologist or postman nearly 100
years ago. It says that actually 80% of things we do are actually trivial and 20% are actually
critical. So, 20% of our efforts will be the one that is making the 80% of our revenue. This is true
for anything else, if you look at statistics, 20% of population are also the ones earning 80% of
wealth in the country. 20% of nations on earth being USA, Japan and Europe are the ones with
80% of the world’s GDP. Look at our expenses too, if you look back at Figure 1.7 of Chapter 4,
80% of our total expenses is in just two things accommodation and transport! If you concentrate
and tackle that 20% and devote most of your time and effort on that 20%, you’ll make 80% most
of your income from that. I will show you later at the end of this chapter what you’ll need to
concentrate on.

                          CHAPTER 2
            Every Single Sen Counts : Savings Strategy

Every single sen counts! This is a very important lesson indeed. Every single ringgit is a money
seed to your financial freedom. Every single ringgit you throw, you just lost your opportunity to
be a millionaire. This principle is called “Financial Freedom on a Ringgit a Day”. I will illustrate
to you by giving this very simple example. Let’s suppose you take a single ringgit and put it into
a special bank account that will let the ringgit grow, untouched by taxes and fees. How long will
it take for this single ringgit to grow into RM 1 million?
That depends on the interest rate that the bank account pays. If it’s a normal bank account,
normally it would take a long time. Table below illustrates how long one ringgit can turn to RM 1
million at various interest rates:

                     Interest Rate                  Time in Years
                          0%                           Never
                          3%                            468
                          5%                            284
                          10%                           145
                          15%                            99
                          20%                            75


What if you put a ringgit a day or RM 30 a month. Look below :

                     Interest Rate                  Time in Years
                          3%                            147
                          5%                            100
                          10%                            56
                          15%                            40
                          20%                            32


Wow! Means if you started saving one ringgit a day since you were born means at 15% interest,
you should be a millionaire by 40 years old.

Now suppose you plant several seeds and save up to RM 10 day. Look :
                     Interest Rate                  Time in Years
                          3%                             74
                          5%                             54
                          10%                            34
                          15%                            25
                          20%                            20


So it’s actually possible to become a millionaire in Malaysia after 20 years by just keeping RM10
a day. Of course you’ll say it’s difficult getting 20% returns from any bank. If you were to put it
into unit trusts or real estate, history shows clearly in 20 years time 20% per annum return is

However, the purpose of this exercise is to change your attitude about money especially those
RM 1 you normally throw away. I’ll bet you’ll think twice from now on before throwing away
one of those silly single ringgits. It’s as though throwing away a million ringgit seed.
The real key is to keep socking away the money. Let the numbers whisper their silent but
relentless message. Consistency. Day in, day out. Save. Invest. Save. Invest. One example is a
couple combining their incomes and putting all their savings into well selected unit trusts while
buying a cheap car and a house. Saving everything and watched cash starting to pile up in 10
years time. They were able to already retire and never to work anymore and of course buy a
bigger house and a way bigger car. While another couple spent all their savings on expensive cars
and bigger houses in popular areas while stretching themselves too thin. They had to stress out
their lives for the next 30 years. Therefore, live on less than you earn, invest the surplus, avoid
debt and build a long term security.

        Now let’s set some specific and realistic financial goals for you. Follow these steps :

        Target           :   How much money you want to accumulate?
        Amount           :   How much ringgit can you squeeze a day?
        Rate             :   What interest rate can you earn?
        Time             :   How long do you want to achieve your goal?
        Purpose          :   What is your financial purpose?

For example :

        Target           :   RM 1 million
        Amount           :   RM 10 a day
        Rate             :   20%
        Time             :   20 years
        Purpose          :   Educate the youth in Malaysia.

Start saving. Do it now. Do it regularly.
         I’ll give you one very simple exercise for self discipline to achieve and ponder about this.
Go out and buy a piggy bank perhaps a plastic one. Every single day try to put RM10 into it. By
the end of the month, save it into your unit trust or invest it. Take down the exact amount you’ve
saved and the amount you’ll make from compounding interest in the next 10 years time. Make it a
habit to also drop any money change into the piggy bank. Even 1 sen is worth something if for
100 days you keep dropping one into it. Well this is one of the most easiest and practical ways. In
the later chapter we’ll show you some effective savings method to learn.

                                 CHAPTER 3
                             The Six Money Secrets

Now that you’ve learned the true value of every single sen, I’ll show you the six money secrets
the prosperous and the wealthy practice in their lives. I call them secrets because not many realize
the simplicity of the concepts and use them in their everyday lives. These are essentially money
skills to achieve whatever you want : houses, cars, travel and most importantly FINANCIAL

                                             Share it

                                             Make it

                                             Invest it

                                              Save it

                                            Control it

                                             Value it

                             FIGURE 1.5   SIX ESSENTIAL MONEY SKILLS

Skill 1 : Value It
Neccessity for work:             When you earn it, you value it.
Importance of charity:           Give away the first 10% to charity.
The need for saving:             Put away the next 10% for savings.
Accountability:                  Account for every single sen.

Skill 2 : Control It
Set up a simple system to organize your financial life. Use Excel to organize your expenditure.
Basically you must try to control the leaks in your spending system and get in more income
coming in. I’ve dedicated one whole chapter later on to explain tools and methods dealing with
this subject. However, follow this simple plan for Control It and you should be okay :

        1. Plan your purchase in advance. Your estimate budget or the lowest you can go. Write
           it down on a piece of paper.
        2. Spend some time to do market research before purchasing. For example, at least go to
           4 places and get the lowest from there.
        3. Negotiate and get a discount or find all the bargains you can get.

        4.   Get a receipt. Ask for it.
        5.   Examine your receipt. Sometimes they make a mistake.
        6.   Categorize your receipt. I’ll explain more in the next chapter.
        7.   Balance your accounts.
        8.   File your receipt.

Skill 3 : Save It
The object of the money game is to accumulate enough investments so that the income from these
investments will eventually support you. So save your surplus. Most people save money by
buying something on bargain but end up spending that money on something else. I’ll give you an
example, if you managed to save RM10 from negotiating with the seller, when paying sock up the
RM10 into a “savings envelope” and dump it into your piggy bank. At the end of the month,
dump your piggy bank into a unit trusts.
Planning is also a key method for saving. Spend a few minutes a day planning your day. Once
you’re successful plan your month and then start planning the next 90 days and so on so forth.
Means you’ll spend more time planning your purchases. For example, plan exactly when you do
your groceries. If you purchase at Tesco, Giant or the other hypermarts, you’ll save at least by
20% your expenses but it would be a hassle to go far to get your groceries. So plan exactly when
you need to go and buy in bulk. Avoid impulse buying and plan every single time.
One other major money saver is to cut up your credit cards and keep at least one for emergencies
or business. Pay the annual fees from your points. With this alone you’ll save money at least by
Have you ever walked past 10 sen and not picked it up because it was just 10 sen? The truth is
that sen is worth 1 million times. So pick it up, save and invest it.

53 Ways to Save RM53 a Month
1. Shop with a list and stick to only it.
2. Say no to ATM fees, plan ahead for your cash needs. Don’t pay RM1.50 for nothing.
3. If your bank charge fees, close it and maintain just one.
4. Pay off that credit card balance fast!
5. Do balance transfers if you must carry a credit card.
6. Look for lower premiums on your insurance policies.
7. Use government hospitals if you have the time.
8. Get generic drugs.
9. Rent and don’t buy something you’ll only use a couple of times.
10. Have a garage sale on things you no longer need.
11. Use calling cards that offer lowest rates for IDD calls. Try not use your handphone.
12. Cancel all the call waiting or whatever else you don’t really need to use.
13. Email your friends instead of calling.
14. SMS your friends rather than calling.
15. Skip the movies, buy DVDs at Low Yat instead.
16. Dine out? Eat in, cook!.
17. Carry lunch in a bag everyday.
18. Try to use the library instead of buying books.
19. Try just reading magazines at the stalls rather than buying them.
20. Try free parking or unlimited parking. Take a walk for your health and bring an umbrella too.
21. Cancel magazines subscription you never read.
22. Go and see a parade or have a picnic. Free entertainment is usually the best.
23. Carpool to work.
24. Avoid taxis, always take the bus instead.
25. Plan your holidays in advance and book everything early and look around.

26. Travel by Air Asia!
27. Quit the health clubs, just jog!
28. Coupons and midnight sales at Tesco or Carrefour! Check out Star newspaper and keep track
    of them!
29. Skip paper towels and wash cloth instead.
30. Don’t use laundry, buy a washing machine for RM600 instead.
31. Check your receipts after purchase.
32. Avoid specialty stores.
33. Shop on-line or at
34. Don’t buy premium gas, normal would do just fine.
35. Wash your car yourself and get some fresh air and exercise instead.
36. Cancel ASTRO all together or the channels you never watch!
37. DON’T PLAY 4D OR SPORTS TOTO – the odds of getting hit by lightning are better than
    your chances of winning.
38. Refinance your home. Check the interest rates out there.
39. Save first before spending. Save RM10 a day first before paying your bills.
40. Buy a piggy bank and save all your spare change there.
41. Don’t spend your next pay raise, invest that money instead.
42. Buy a motorbike.
43. Have a big trunk in your car, buy bulk at Tesco or Giant only!
44. Buy a big refrigerator. You’ll save a lot over the years.
45. Build a big store room and to keep stuff you bought on midnight sales.
46. Plan your destiny and use the shortest routes possible.
47. Use Bonuslink or Real Rewards when purchasing fuel.
48. Don’t buy groceries at 7 eleven or at mamak groceries!
49. Use prepaid cards for your handphone. This way you’ll control your calling spend.
50. Go Dutch!
51. Don’t use air-conditioning, use a fan! Or just open up the windows!
52. Just window shop at Ikea. Buy more in Nilai 3.
53. Skip roti canai and nasi lemak… Just buy a toaster and whole grain bread!

We’ll discuss much more about controlling your spend in Chapter 5 - Understanding Your
Expenses later on.

Skill 4 : Invest It
We will elaborate this more in the later chapters. There are many investment instruments
available in Malaysia such as Amanah Saham, Koperasi Bank Rakyat, stock market, real estate
etc2. Kiyosaki said the best way to become wealthy and sustain it forever is by becoming an
investor. Don’t become a sole proprietor or a maintenance contractor, you never know what’s
going to happen next. RM 500,000 put into a unit trust that gives 15% per annum will sustain
your monthly expense for RM 5,500 per month forever. Do the calculations! I’ll show you how in
the next chapter. Let someone else do all the dirty work for you, there are many accountants,
lawyers, engineers, managers out there willing to work you. Just invest in them! Why would you
want to supervise workers or pay their salaries where there is someone else who can better do it
for you while you concentrate your efforts in finding other profitable businesses, going through
all opportunities and listening to other people trying to sell and convince you. Being an
INVESTOR is your number ONE goal.

Skill 5 : Make It
In this manual, I’ll concentrate on Internet, real estate & stocks as your money makers. There are
actually more, but we’ll just concentrate on these for the time being. Your first target is to make

money before you can save or invest it. You should have many sources of income and not simply
rely on a single source of income. A lot of people all their lives put their faith in one single job
and try to grow only that while relying on their EPF savings for their retirement. In this day of
globalisation, you can never rely on a company or other people to be charitable to you and
maintain you as an employee for life. As time goes by they expect that you do more and more
until you can never sustain. And let me tell you about job security. There is absolutely none. If
you still believe it than you must be living in the middle ages. Factories, businesses always move
places. If they see there is an opportunity to save money elsewhere for instance going to China
they will do it and will find all means necessary to let you go. But having said this, you will still
definitely need a JOB. But let this just be just another source of your income in the short term.
While your main goal is achieve LONG TERM FINANCIAL FREEDOM. Plus, you learn a lot
while on the job. Many companies train their staff well. You’ll get to develop people skills,
computer skills, formal writing skills, communication skills and more. So don’t miss out finding
that job for short term money and the only best training you’ll ever get…better than going to a
university. Best thing is you get paid for being trained by them! I elaborate more on this in
Chapter 5. Don’t miss out on Chapter 9 – Internet, this will be your key money making machine.

Skill 6 : Share It
Don’t be greedy with this knowledge. Share it with people just like what I’m doing now. If you
can help others with this god given knowledge, they will come back to you and give more.

Now that you’ve understood all the skills that is required let’s get down to the dirty work in the
next chapter.

                               CHAPTER 4
                       Understanding Your Expenses

This is one of the important parts of this manual. Take a day or two to fully understand your
needs and expenses. Identify your current expenses and work out your short term goals and the
kind of expenses you would want once you’ve retired. But your target from now on is to have a
expense target that secures your financial freedom first. Once you’ve attained that, you can
slowly raise the bar and enjoy the more expensive things in life. I’m not teaching you to not enjoy
life but to delay it just in the short term to enjoy later forever. We’re blessed in Malaysia because
we live in a social free market that is those who work hard and smart can live a life of abundance
while freely going anywhere we want and practicing our faith and our own way of life.

First let’s really understand the definition of debts or loans. They’re the good loans and they’re
the bad loans. What are the good loans? They’re money you owe to pay off an asset that earns
and gives you a return in the future. For example, housing loan is a good loan because you’ll sell
the house for a huge profit that is more than your interest on the loan. Also, if you take a personal
loan to invest in a business that returns higher than the interest you pay, that is a good loan. Then
there’s the bad loans, which money you borrow just to pay off your expenses such as car loans,
furniture and electrical appliances. You won’t get a return from the loan. Instead the asset
depreciates in value. But you need them anyway. You need that car but don’t borrow money to
pay for a big car. Live within your means. Get the car that is suited to your current income.

So let’s start moving with these steps :

Step 1 : Analyze your current expenses

Take at least one day or two to sit down and go through your receipts, your bank statements, your
credit card statements or even spend a day going to the grocery and putting a budget to how much
you really spend in a month. Use Excel to list all of them down and make sure you print them and
stick it on a wall. Let’s categorize them as follows :-

1. Accomodation -
  You’ll need somewhere to live, eat and sleep while planning your financial freedom. This
  should be a comfortable house and an affordable one at that. With streamyx and easy access to
  groceries and your workplace. But don’t kill yourself by trying to stay in Damansara Heights or
  Bangsar. As long as you can easily perform all that has been taught in this manual, you should
  be okay. And the number one thing is to BUY that first house. Use a loan and buy the house. I
  will explain in the later chapter about real estate and why you need to do this. But get a
  bank/company/government loan for that first house. If you are currently renting, please straight
  away now try to get a place of your own. Many people would say I can’t afford an apartment in
  KL or I’ll wait until I can afford that house and rent in the meantime. The more you delay, the
  more it will cost you and the more difficult you are to be financially free. Well just let me show
  you how to own your house within minutes by doing this simple exercise below :
  Let’s say your current rent is RM600 for a 3 bedroom apartment in Cheras. A 3 bed apartment
  in Cheras/Bukit Jalil would normally cost around RM75,000 (including legal and MRTA). At
  95% loan of RM 71,250 with cash downpayment of just RM 3,750 and with a loan of 6% per
  annum ie. at BLR+1 for 30 years you should be paying to the bank at RM 427.18 per month.
  With RM100 maintenance fee, you should already be saving RM 72.82 per month and just
  imagine if you compound this in a unit trust earning 15% per annum, how much you’ll make in

  3 years time. Let’s not forget assuming that house prices increase by nearly 20% per annum. If
  you sell this apartment in 3 years time now valued at RM 129,600 after deducting the principle
  installments you’ve paid per month, you would’ve made a clean RM 64,600 by just deciding to
  buy a house instead of renting. If it’s your first house, there is no capital gains tax. I’ll explain
  later on how to use your EPF funds to also profit from this. But for now let’s assume your
  monthly accommodation cost with cukai pintu will cost you about RM 550 per month.

2. Transport -
   Well… for financial freedom in 3 years time get a Proton and a used car if possible. A 3 year
   old Proton Iswara 1.3 Aeroback cost just RM 24,559. Your monthly would be just RM 313.44
   per month. Add in your annual insurance of RM 600 which works out to RM 50 per month.
   Also, add in your car maintenance cost of RM 400 per year which works out to RM33.33 per
   month. So everything all added up works out to RM 400 per month. Of course you can get a
   motorbike, but still a car is still a necessity for groceries etc2, something you cannot live
   without these days.

3. Petrol -
   Let’s allocate RM 160 per month for this. Again, plan your journey and use Bonuslink/Real
   Rewards everytime. You may also want to go to work on a motorbike and to use your car only
   for groceries or others. Up to you! You can save more on this.

4. Food & Groceries -
   Again, buy bulk at Tesco/Giant or why not try the Tesco/Giant brand once in a while. Get a
   big trunk, allocate a store room at your house and get a big fridge. This expense also includes
   your gas cost and more. Also we’ll include other costs such as tooth paste, soaps, etc2 into this
   cost. You may one day try going out to the pasar and Tesco and start taking all the prices
   down and know exactly how much you need in a month. If you eat in and carry a lunch bag to
   work daily, let’s assume a budget of RM 180 per month on this. This can be adjusted
   according to your needs. Don’t eat out. Take breakfast at home and bring a lunch bag to work.
   This will cover your children’s expenses as well. Work out every single item you buy
   monthly. For example :

   Purchase Every Two Weeks (For consumption of a couple and 1 child)
     No. Item                                                                    Amount (RM)
     1.   2 Chicken                                                                10.00
     2.   Beef                                                                     10.00
     3.   Fish                                                                     15.00
     4.   Vegetables                                                               10.00
     5.   Bread                                                                     3.00
          Total….                                                                   …….

   Purchase Every Month (For consumption of a couple and 1 child)
     No.   Item                                                                  Amount (RM)
     1.    Rice 20kg                                                               15.00
     2.    Onions and other herbs                                                  10.00
     3.    Dishwasher                                                               8.00
     4.    Dynamo                                                                  10.00
     5.    Bathing Liquid and Colgate                                              15.00
           Total….                                                                  ……


       Also, before going to Tesco/Giant, set out your budget from your list of items to purchase.
       You can use this as a control to check against any errors at the counter. Then, double check
       your receipt again before going back home.

5. Handphone Charges -
   Something you cannot live without these days. Use prepaid and sms a lot. Let others call you
   instead. Get an IDD calling card if you want to call long distance or have a long chat with
   friends. Try to just meet up with friends rather than calling. Make house visits more often.
   Let’s assume a monthly expense of RM 30 per month.

6. Telekom Fixed Line Charges -
   You need this for emergencies. Pay the fixed rental of RM 27.30 per month. Again use cheap
   calling cards if you need to call long distance. Allocate RM 30.00 per month.

7.      TNB – Electricity -
        Try going with electricity for one day and you’d be crazy without it. Pay RM 25 per month
        for this. Avoid using air conditioning and always try to save your energy bills.

8.      Water & Sewerage -
        Allocate RM 30 per month for this. You can’t live without it.

9.      Internet Access - Broadband
        As I said earlier just get it. Don’t think twice. This will be your money making machine and
        will help you to get that retirement much earlier than you imagined. Cost is RM 66 per
        month with Tmnet Streamyx. It’s that important that please find a house in an area that can
        have this installed.

That’s all you’ll need to spend to be alive and start making money. Now let’s list them all down
and analyze them in more detail.

No.       Expense Category                               per month (RM)            % of Spend
  1.      Accomodation                                        550.00                  37%
  2.      Transport                                           400.00                  27%
  3.      Petrol                                              160.00                  11%
  4.      Food and Groceries                                  180.00                  12%
  5.      Handphone Charges                                    30.00                   2%
  6.      Telekom Fixed Line Charges                           30.00                   2%
  7.      TNB – Electricity                                    25.00                   2%
  8.      Water and Sewerage                                   30.00                   2%
  9.      Internet Access – Broadband                          66.00                   4%
          Total Necessities                                  1,471.00                100%


From above, let’s work out further below to the other additional expenses you will have :-

 No.    Expense Category                                 per month (RM)             % of Spend
   1.   Total Necessities                                    1,471.00                  70%
   2.   Savings (assume RM 10 a day rule)                     300.00                   14%
   3.   Insurance and medical                                  80.00                    4%
   4.   Leisure and Entertainment                             100.00                    5%
   5.   Charity                                                50.00                    2%
   6.   Business Expenses for Skill 5 : Make It               100.00                    5%
        Total Necessities                                    2,101.00                 100%


 10. Savings
     As discussed in the previous Chapter, set a target for savings on a 10 day rule. This is the
     expense you will try to increase more if you get that pay raise. Everything else should be
     maintained while you increase this further not decrease it.

 11. Insurance and medical
     This consist of your life insurance or medical insurance to cover you in case anything out of
     the ordinary happens. Search for the best premiums you can get.

 12. Leisure and Entertainment
     You can try to control this. But this is still an important portion of your expenses. You still
     need this. Perhaps a movie a month would be sufficient or buy a DVD a month. Also, your
     holidays etc2. Limit your entertainment expenses to a certain amount.

 13. Charity
     Don’t forget to give! Your mosque, your church, temple, the needy etc2….

 14. Business Expenses
     You’ll learn that you need to allocate some money in order to make more other than your
     day job salary. For example, buying this manual is one example.

 Step 2 : Organise Your Expenses

 Setting up a filing system is simple. Just get 14 manila folders and number them 1 to 14. At the
 end of the day, quickly file your categorized expenses. At the end of the month, balance your
 accounts, list all your expenses and your revenue. That’ll leave you with your surplus money.

 Step 3 : Compare and Improve

 After each month compare your actual expenses against your budgeted expenses and see where
 the gaps are and improve on weaknesses in your spend.

 Step 4 : Expense Target

 So with that, your current job must at least give you a monthly salary after taxes and EPF of RM
 2,100 per month. If you cannot reach this together with your bonuses you can either cut some of
 the expenses like leisure or transport down. But please don’t cut your savings. That should be
 your priority number one in your spending plan. If you still can’t, then try to move to another job
 that can pay you to sustain that. I’ll talk more about short term job requirement and security in the
 next chapter.

Again, if you are currently earning more than RM2,100 per month or perhaps far more, than
allocate the extras into savings until you achieve your financial freedom in 3 years time. By that
time you can perhaps start increasing your luxuries but always sustaining lifetime financial
freedom in the process.
Also please do not try to utilize Skill 5 : Make It to just meet the RM 2,100 per month expense
target. Your day job must be able to cover your overall expense. All the money making methods
I’ll show you later should be on top of this. If you follow this closely you will get that retirement
in 3 years time.
You may think it’s almost impossible with your education background to get a RM 2,100 per
month from a day job. Well, I can easily give you an example, a clerk in a KL private firm can
earn as much as RM 1,600.00 per month with 2 months bonus. That’s about RM 1,900 per
month. If you adjust a bit on your expenses, you could easily meet that. If you combine with your
spouse’s income, this target is can be easily achieved. Furthermore, remember that those earning
RM 2,500 and below are not taxable. Again, if you’re earning way more, than you have nothing
to worry about.

Step 5 : Use Credit Cards

Yes, I earlier said throw your credit cards away and leave only one somewhere safe. But there are
so many advantages of using credit cards to achieve your financial freedom and as a utility for
you as well. Only problem is people misuse this facility and either use it to overspend beyond
their means or being late in their payments and get charged late fees for no reason. I say make use
of credit cards but make sure you pay the full amount every time and don’t procrastinate to the
last minute. Pay your bills as soon as you get the statement so that you are sure to pay them.
Make also a post dated check to make sure you pay not too early but just in time before it’s due
date. This way you’ll earn some interest on your savings/current accounts. You need discipline to
the extreme when using credit cards. Keep it in a safe vault somewhere, after you’ve planned
your purchase, take it out and use it than keep it into the safe vault again. Don’t leave your credit
card in your wallet. Also, don’t use your credit card when someone wants to charge 3% to you for
using it. It’s actually against the law, and simply just ignore them.

Here are the advantages of using credit cards :

        1. Earn points
           Everytime you use your credit card, you’ll earn points on them. The points is the
           same of the ringgit amount you spend. So for example, you buy your groceries every
           month worth RM 180 using your credit card. You’ll get 180 points already. Your
           petrol budget is RM 160 a month, that’s 160 points already. Your TNB bills,
           Telekom bills, Insurance premium, Handphone bills and more all get points
           everytime. For example, monthly you get 571 points. In a year you should be getting
           6,852 points just for choosing your credit card instead of paying cash. Normally,
           annual fees are free for the 1st year. So you can actually use the points you gained for
           fee waiver. For example, for HSBC credit card, you get a fee waiver for 7,000 points.
           That means now if you collected anything above that you’ll get some more things in
           return. If you used your card to purchase furniture etc2, you might get the chance to
           go on holidays with the points. For example, 11,000 points can get you a RM 50
           voucher at MPH Bookstores. That’s like free money already! So make sure you use it
           everytime you spend.

        2. For Budget Tracking
           Keep all your statements and try to balance your receipts with your statements
           everytime. You can also track your expenses online these days. So you won’t get lost
           to your current standing in the middle of the month.

        3. For online business
           To purchase web hosting, domain names, memberships you’ll need a credit card for
           your online businesses.

        4. Take advantage of interest on your savings/checking accounts
           A lot of people don’t realize this. If you delay payment, you’ll earn some interest on
           your spend. For example, let’s say all your money is currently in your ASB account.
           You decide to buy furniture worth RM2,000 that month. You use your credit card on
           the 17th of March. The bill comes only on 11th of April and due date is 31st of April.
           So your money in ASB with 10% pa dividend will earn you an extra RM17 free
           money. That RM17 invested into high risk unit trust might earn you RM1 million one
           day! You’ll make a huge saving there plus you get points on top of that. So insist on
           using your card if possible. But make sure you pay on time or you get charged late
           payment and this defeats the entire idea of savings all together.

Step 6 : Use Online Payment Facilities

To pay your expenses and bills, utlize fully payments via online. You can use the bill payment
facility in Maybank2u but better use your credit card instead to pay for savings and points as
explained above. To pay your TNB, Telekom, Tmnet, Astro bills using credit card go to Make sure you print out the email receipts and file this. You can
straight away go to your credit card website to check out whether payments have been captured
by your credit card. For HSBC credit cards go to You can also use
Maybank credit cards. Check your statement in You can also check
your latest statements all here. If you use Maybank HomeLoan, you can use Maybank2u to track
your housing loan payments online. Charge your insurance to your credit card and track payments
online. Rebates are also normally given for payments if you made them autopaid online like TNB
and Telekom. Take up all these for the savings you can gain. There are other online bill payment
facilities like http://www/ Make use all of them. Pay for petrol using credit cards
and use bonuslink for points. Track your points at Your points
will get you things here. You’ll save time and petrol and this can be considered already a savings.

Step 7 : Furniture & Electrical Appliances

We’ve so far been talking about monthly expenses but what about money to spend on your
furniture and electrical appliances like washing machine and refrigerator. If you already have all
these home necessities than skip this step else continue. Number one rule don’t take up a
personal loan to buy off all these items. Pay them as you can afford them using Skill 5 : Make It.
For first time home buyers who are just starting out, installing home appliances can be a huge
sum to pay. Most of you will end up using your credit cards or taking up personal loans to pay off
everything monthly with interest on it. So why not simply pay off everything with cash (actually
try use credit cards and pay them before due date) since you need this but delay buying them until
you have the cash. If you’ve saved a lot of money previously, than congratulations you’ve solved
your problem. But if you have almost nothing and about to move into a new home, there will be a
problem there. So let’s figure how to solve the problem if you just moved into a new house and

you have not a single sen in your savings to pay for the appliances. Since you’re just starting off,
start small first. Let’s go one by one by sequence of importance :

    1. Window and door grill - this looks like a necessity these days. If you’re staying in a 3 bed
       apartment, should cost you about RM 500 to have them installed. Plus, you have security
       so you don’t have to go overboard with this.
    2. Lighting and fan - don’t go overboard. Just install the necessary. Allocate RM 200 for
    3. Kitchen cabinet with gas stove - Buy a mobile kitchen with a stove from Tesco. Overall
       will cost you RM 200.
    4. Washing machine - Cheap one cost just RM 200 non automatic.
    5. Refrigerator - Cost about RM 600.
    6. Living room set - Buy the cheap set of RM 600 where you’ll get the TV cabinet, 2+3 sofa
       and a coffee table. In fact you might not need this yet, until you make money via my
    7. Bedroom set - There’s one bedroom set that will cost you just RM 800.
    8. Office room set - Quite important, because you need this in order to operate your
       businesses etc2. Buy a set at Macro would cost you around RM300 that comes with a
       study table, study chair, cabinets for filing and a computer table.

    If you’re starting off, you can move into a 3 bedroom apartment fully complete for just RM
    2,800. You don’t have to pay all these in one go. You can slowly work on these. As time goes
    by and you start making money from the businesses I teach you here, you may want to
    upgrade a little. Perhaps you can now afford to install a real kitchen cabinet. Or change to a
    bigger refrigerator or get an auto washing machine.

Now that you’ve analysed your expenses and startup cost for your furniture, electrical appliances,
computers and more, you’ll definitely need a day job to cover all these in the short term. Let’s
move on to the next chapter to cover this.

                               CHAPTER 5
                        Short Term Job Requirement

Whatever you think, getting a job is the most important thing to start things off with. But do not
treat your job as the final solution. Your job is simply a temporary solution for you to meet the
end. Your end game is the goal to achieve full financial freedom and retire in free with nobody to
report to and no worries about meeting your next months installments etc2. Treat career
development as a training opportunity for you.

History of Employment/Jobs

Nobody knows exactly how jobs or employment got started. But I have a theory and I’m sure
you’ll agree with me. In the past, man used to collect food and hunt on their own. Then they
started to discover farming and fishing. Then someone who was much stronger and powerful
decided they’ll provide protection for the weaker in exchange for them serving the master. As
times goes by the stronger gets more stronger while the weaker gets more comfortable and start to
forget that he doesn’t really need that protection. So the system evolves to a more modern version
today. You feel comfortable having a job security and if possible don’t want the hassle or risk of
obtaining your financial freedom and therefore sleep for the rest of your lives. I’m not saying you
are weak for having to go to work for someone or they are exploiting you. It works both ways you
need them for now, they need you because you’re willing to follow their system. Therefore, your
strategy is to temporarily work with the system but fully concentrating your efforts to achieve
FULL FREEDOM as your set target time. Let me explain the benefits of having a DAY JOB.

1.      DAY JOB pays the bills
        Your day job pays all the necessity expenses for now until you achieve your goals.

2.      DAY JOB qualifies you for a loan
        You need a day job to get your J Form and EA Form in order. This way you can easily
        get your housing and car loans. All this helps you achieve your target.

3.      DAY JOB helps build up your savings for investment
        You can start with the 10 ringgit savings a day rule with your day job.

4.      DAY JOB provides training
        A day job should provide you with all the computer skills, office skills, negotiation skills,
        organization skills, filing skills, people skills, communication skills and more. Make use
        of all the development the company provides to you. Try to also learn how your company
        operates as this will help in your own businesses.

5.      DAY JOB instill self discipline
        You’ll have to wake up early and follow the 8-5 schedule every day. This give you some
        sense of consistency in your life.

6.      DAY JOB builds up your EPF/KWSP
        Yeah, you would think that my idea is to keep all the amount in EPF until you’re 55 years
        old and enjoy all your savings for the next 30 years with 4.5% compound interest and
        you’re okay. While you can simply squander your day job salary on big cars and big
        homes. Well, this manual is teaching about you being financially free in 3 years time.

Using this powerful tool call EPF, I will teach you how. That is for now, unless the
government decides to change anything. So keep up to date with the latest laws on your
EPF. I’ll explain later in the Chapter 8 on Real Estate the many ways you can use
Account 2 of your EPF to get your home. But for now let me explain the basics of EPF or
KWSP because I know many out there don’t know exactly how it all works. The law can
change anytime, whatever I tell you now might no longer be true. So check out their
website at

What is Employee Provident Fund (EPF)?
It is a forced saving scheme by the government for private sector employees so that you
and I can have a lump sum nest egg or a big sum of money at our retirement age, ie. in
Malaysia’s case it’s 55 years old… for now! It is grand scheme indeed and I fully support
it for your retirement age. But there are some loopholes in there where you can fully
make use of for your early retirement.

How it works?
Every month your employer is suppose to deduct 9% of your salary into EPF. So for
example, if your salary is RM 3,000 per month. Every month RM 270 is deducted into
your EPF. And if your bonus is two months salary then from your bonus of RM 6,000,
RM 540 is deducted into your EPF. This deduction is tax free up to the amount of
RM5,000 per year.
Then your employer is suppose to top up another 12% salary into your EPF. Therefore, if
your salary is RM3,000 per month, your employer will need to provide RM 360 per
month into your EPF by law. On top of this, your employer might decide to add another
percentage over this into your EPF. Some employer can go as high as 5%. However, let’s
assume your employer decides to add another 3% into your EPF, from a salary of
RM3,000 per month that should be another RM90 per month. So in summary it would
look like below :-

Assume your monthly salary is RM3,000
 No.   Details                                                              Amount (RM)
  1.   Your salary of 9% is deducted from your salary                          270
  2.   Employer top up required by government of 12%                           360
  3.   Employer provides additional 3% (not required by government)             90
       Total per month going to your EPF                                       720


So every month RM 720 is going to your EPF. You also get a dividend of 4.5% pa* over
this. (*Dividend changes from year to year) Let’s see what happens in a year with an
assumption that your salary is RM3,000 per month with a dividend of 4.5% per annum.
Also assume you’re getting a two months bonus at the end of the year ie. in December.

   Month                       Total EPF amount                       Dividends (RM)
                                per month (RM)
 JAN                                  720                                 29.70
 FEB                                  720                                 27.00
 MAR                                  720                                 24.30
 APR                                  720                                 21.60
 MAY                                  720                                 18.90
 JUN                                  720                                 16.20
 JUL                                  720                                 13.50
 AUG                                  720                                 10.80
 SEP                                  720                                  8.10
 OCT                                  720                                  5.40
 NOV                                  720                                  2.70
 DEC                                 2,160                                   -
 Total                             10,080.00                             178.20


So at the end of the year you should be getting RM 10,080.00 plus RM 178.20 of RM

Make sure you track exactly whether your employer is contributing correctly into your
EPF. Many employers have been known to be quite slow with this. The employer can get
fined or even a jail sentence for not complying to the law regarding this. So you go to
your nearest EPF to check your balances. But thanks to the wonders of Internet, you can
now check your balance online at Register yourself and get a
userid and password for this. So every month while doing your bills, you can just have a
quick look whether your EPF has been contributed on time, or give your employer a kick
in the but. You can tell the Personnel guy horrific stories about employers who go to jail
for not contributing to their employees EPF. If they are still not contributing, better just
find another job.

Okay, now let’s see how much you’ll get in three years. Let’s assume 2004 is Year 1 and
2005 is Year 2 and 2006 is Year 3.

Year 1
               Month                       Total EPF amount           Dividends (RM)
                                            per month (RM)
 Balance from previous years                       0                        0
 JAN2004                                          720                     29.70
 FEB2004                                          720                     27.00
 MAR2004                                          720                     24.30
 APR2004                                          720                     21.60
 MAY2004                                          720                     18.90
 JUN2004                                          720                     16.20
 JUL2004                                          720                     13.50
 AUG2004                                          720                    10.80
 SEP2004                                          720                      8.10
 OCT2004                                          720                      5.40
 NOV2004                                          720                      2.70
 DEC2004                                         2,160                       -
 Total                                         10,080.00                 178.20

Year 2
                  Month                      Total EPF amount                     Dividends (RM)
                                              per month (RM)
 Balance from previous years                     10,258.20                           461.62 *
 JAN2005                                            720                                29.70
 FEB2005                                            720                                27.00
 MAR2005                                            720                                24.30
 APR2005                                            720                                21.60
 MAY2005                                            720                                18.90
 JUN2005                                            720                                16.20
 JUL2005                                            720                                13.50
 AUG2005                                            720                               10.80
 SEP2005                                            720                                 8.10
 OCT2005                                            720                                 5.40
 NOV2005                                            720                                 2.70
 DEC2005                                           2,160                                  -
 Total                                           20,338.20                            639.82

* Dividend earned in 2005 for balance from previous years.

Year 3
                  Month                      Total EPF amount                     Dividends (RM)
                                              per month (RM)
 Balance from previous years                     20,978.02                           944.01 *
 JAN2006                                            720                                29.70
 FEB2006                                            720                                27.00
 MAR2006                                            720                                24.30
 APR2006                                            720                                21.60
 MAY2006                                            720                                18.90
 JUN2006                                            720                                16.20
 JUL2006                                            720                                13.50
 AUG2006                                            720                               10.80
 SEP2006                                            720                                 8.10
 OCT2006                                            720                                 5.40
 NOV2006                                            720                                 2.70
 DEC2006                                           2,160                                  -
 Total                                           31,058.02                           1,122.21

* Dividend earned in 2006 for balance from previous years.


So at the end of the third year, your overall balance in EPF is RM 32,180.23. Now this
amount will be divided intro Three Accounts as explained below :-

 No.     Details                                                                           Amount (RM)
         Your Final Balance in 3rd year                                                     32,180.23
  1.     Account 1 (60%)                                                                    19,308.14
  2.     Account 2 (30%) *                                                                   9,654.07
  3.     Account 3 (10%)                                                                     3,218.02

* so the amount of RM 9,654.07 in Account 2 can be taken out to clear/reduce of your housing loan in 3 years


This concept will be explained in more detail in the Chapters ahead covering real estate
strategies. In summary, you can take out Account 2 amount of RM 9,654.07 to reduce
your housing loan before you sell it for cash. The strategy is leave this amount in a unit

       trust that can earn you at least 20% dividends than the one offered by EPF. You can also
       actually take out some amounts from Account 1 and dump into a unit trust. But again,
       you can only withdraw this amount at retirement age. What we’re teaching in this manual
       is for you to enjoy your retirement in 3 years time. I won’t spend time explaining what
       other amounts you can take out. Just go to your local EPF office and ask all the silly
       questions you want. It’s totally free consulting over there. They have a motto to serve
       customers there.

7.     DAY JOB builds up your confidence
       A day job builds up you confidence to take on more riskier ventures like real estate
       ventures or the stock market or even putting your money into stable unit trusts. You’ll
       have the security in trying new things like trying to build up a business selling
       information or a business in reselling items bought on ebay or Because
       by the end of the month you know your nest egg in EPF and your own savings is still

8.     DAY JOB allows you to get to know people
       Well, you can also get to know people not working but at least you get to see other
       people during your office hours time and get paid for it too. You get to meet your
       customers, your suppliers, your colleagues and more. You can start selling them life
       insurance, unit trust, MLMs and more. Meantime you get to socialize with people while
       getting paid a monthly salary. You can also learn a lot from your colleagues and people
       you meet while at job.

9.     DAY JOB allows less complication with LHDN on taxes
       It will take out all the head-aches dealing with income tax. While building your nest egg
       and trying to meet your financial freedom, you can start preparing building your tax
       planning strategies. Plus, filing your previous years income tax helps to train you
       preparing for your retirement. You can also spend some time just going to your local
       LHDN office and simply asking all the silly questions to the staff there. ps. If possible
       don’t visit them in April ie. during their peak months. Go for visits in Octobers perhaps.
       You’ll be surprised they are quite accommodating actually and can sometimes spend
       extra effort providing service to you. They’re paid to do that anyway. However, worse
       comes to worst, you can build up a nest egg later on to just hire a tax planning consultant
       to help you.

10.    DAY JOB allows get a credit card
       You need a credit card for your internet business which I will explain more later.

So enough proving why you need a day job. It’s quite clear already. However, you need not
worry too much about increments or bonuses or the office promotions. Because your purpose
being there is for the above only. Preparing to get your full financial freedom in 3 years time.
You’ll just go to be patient for awhile until then. So enjoy your work and give the best you can
give and earn your ringgit working there. Make sure you give value to your employer but don’t
expect much from them. Though pay raise and bonuses helps in terms of building your nest egg
in savings and EPF, your number one strategy is to build up your outside businesses which will
pay you sometimes ten times your salary and are residual income. Your day job salary is just to
pay your necessity expenses as in Figure 1.8 of RM 2,100.

What if your salary cannot meet the above target and you are totally expandable. If the company
decides to layoff, you’ll be amongst the first to go. Even if you go out to market, nobody wants
you. The trick to this is to create value for the company to hire you. Companies hire employees so
that the company can make profits yearly. So each staff has a contribution to make to the bottom-
line. No company in this world would hire you for no reason whatsoever. It’s always the bottom-
line that matters. If they start to see you no longer can contribute to their bottom-line, they’ll try
to find a way to boot you. Here’s some tip for you to at least improve your salary and make
yourself more marketable outside :

1. I assume if you arrived here, you should be good in English. Try to improve further on your
    English language. Perhaps some speaking courses to improve your pronunciation etc2.
2. Make yourself as skillful as possible. Go to trainings, computer skills training, SAP, Words,
    Excel, negotiation skills and more. Go to as much as training as you can and always demand
    a certificate. Go and see HR and your boss and demand for more trainings.
3. If you can’t get enough company training, try going to trainings on your own and demand the
4. Ask your boss for a pay raise and if cannot ask what needs to be done to get it.
5. Come to work early and don’t go back that early.
6. Attend all meetings.
7. Always put a cheerful face and be enthusiastic about things eventhough you don’t feel like
8. Update yourself, go for a part time diploma or part time degree or part time Masters. Go for
    another 2nd diploma perhaps.
9. Learn a second language like Mandarin or French.
10. Try to speak up more in meetings eventhough you’ll sound stupid as long as you’re seen you
    should be okay.
11. Update your resume and ask for friends advise regarding it. Include all your training,
    diplomas certificates. Send them out just to test the market.
12. Make yourself more presentable, looks, hair, dress and more.
13. Make friends with head hunters and recruitment agencies.
14. Read the classifieds everyday eventhough you’re not really looking.
15. Even if you’re not really looking, go for interviews to train yourself.

I’ve explained why you need a day job, but wouldn’t it be okay if I worked all my life and get
those annual increments and bonuses and my EPF might be worth 1 million ringgit someday
when I’m 55 years old basing on the compound interest. If you bought this manual, obviously you
must really believe that you want financial freedom fast. Just in case you start believing a DAY
JOB is good from my points above, here’s why you can’t rely on a day job security :

1. DAY JOB is bad because LIFE IS NOT FAIR
   Life is simply not fair, if you leave your future on other people’s hands then something might
   happen. If everything is always fine, then they wouldn’t be having a HR dept with lots of
   people just to deal with you wouldn’t they?

   If you rely on a company for your whole life, just imagine what would happen if your
   companies go under. In this day of globalization, companies whether they are Fortune 500 or
   just your crony backed company like Renong can simply collapse overnight. The easiest
   examples being Enron and Arthur Anderson. Arthur Anderson used to be the most prestigious
   accounting firm in the world with nearly 100 years of experience. Who would’ve imagined
   they’ll fold up that quick and start laying off their employees overnight. Just imagine your in

   the finance department of Enron and get laid off. Would any company in their right mind hire
   you? Eventhough it’s nothing to do with you. It’s just that. It will take you sometimes 6
   months to 1 year to get rehired back into the system. What if you’re so specialized that nobody
   in the industry would hire you. Then, you’ll need to go back to school and learn some new
   skill to get hired right from the bottom. What if your house and car currently eats up your
   salary by almost half as they normally do. Your savings can just last you another 6 months.
   That’s when you start selling your home and car at dirt cheap prices. That is why making
   money from real estate is one of the best ways to make an easy buck because they’re always
   unlucky buggers like you wondering this earth. My brother last time was an overseas graduate
   in Computer Engineering and got laid, took him nearly 8 months to find a job and that was
   because he knew the chap who was to be his employer.

   Companies move location almost everyday. One day they’re in country. Then when costs start
   rising, in order to compete they’ll move elsewhere. Malaysia is an example. In the late 80’
   many companies like Motorola, Panasonic and others decided to locate to Malaysia because of
   the low wages here. Then after 10 years they started realizing they can make more margin by
   moving to China or Vietnam, within months all their employees were offered VSS and then
   they moved on. Not only from the point of relocating but also globalization make certain jobs
   more productive therefore, they need to cut off staff. Many companies who were also
   previously very decentralized are centralizing with 1 job covering 4 or 5 countries whereas the
   4 were either laid off or moved to some other job until being laid off.

4. DAY JOB is bad because of OFFICE POLITICS
   Politics exist everywhere. Just because your colleague has a higher need to cover their expense
   you become the victim. Or because the system doesn’t allow you to be seen, you’re seen as
   though unproductive eventhough you meet your job targets or even exceed them and provide
   the value to the company but certain people are using that for their own interest.

5. DAY JOB is bad because of PEOPLE’S GREED
   Let’s face it people are greedy. Therefore, the system is not perfect. Eventhough you may try
   to do your job, but if someone else wants to meet their own targets they’ll make use of you.
   One good example is, your boss needs your support technically in his or her department.
   However, there is another opening somewhere in the organization for a managerial position.
   Your boss needs you, so he’ll make sure your promotion is slow or will not recommend you
   until his or her needs are met first. You complain to HR, who will the HR hear first you or
   your boss? This is typical anywhere!

6. DAY JOB is bad because BOSSES CHANGE
   One day you’re doing just right, next day you’re the worst performer in the company. Things
   can turnaround really fast.

   Let’s face it, if you start falling sick or you start having family problems. They’ll start creating
   something for you to leave the company. A company is there to make profits, they can’t afford
   to have someone sick in the workforce.

8. DAY JOB is bad because YOU HAVE TO WAKE UP EARLY!
   On some days you simply don’t have the mood to work and would be far more productive
   working on another day. But you’ll still just need to show up for the sake of it. So on some

  days you’re basically not doing a thing at work. Some days you’re too busy to even talk to
  anyone. The system simply cannot recognize when you are productive or not.

   Most people are doing jobs they don’t really like. A lot of people work simply for being in a
   company because of the name and security it provides. Or simply just of the money or their

10. DAY JOB is bad because of the NEED TO REDUCE COST EVERY YEAR
    Just imagine, companies every year want growth in profits or revenues. While cost are rising
    every year ie. employment costs, inflation, production costs and etc2, the company is
    targeting to reduce cost by at 5% every year so that profits rise 10% yearly. They’ll start
    working up some mambo jambo management approach and cut people, combine jobs and
    force people to do more than what is possible. Sooner or later you’re bound to get laid off at
    this rate.

    If you’re a government employee than you have nothing to worry about with regards to
    layoffs and retrenchments. But you have the bureaucracy to deal with regarding promotions,
    pay rise etc2. And imagine this, inflation has been going up every year while a government
    officer never gets a pay raise or a limited one at that. Just imagine if you’re a school teacher,
    at the start of your pay at 20 years old you would get around RM 1,000 per month salary. By
    the time you retire at 55 years old, your salary would reach at most RM2,500 per month.
    That’s a 50% increase. Inflation is about on average 2% - 4% per year. Let’s assume an
    inflation of 4% per annum due to other cost increase such as car, house, petrol and more. So
    assume your expenses per month at the beginning of your career is RM 900. If you normalize
    that, at the end of your career your expenses should already be valued at RM 3,551. That’s
    RM 1,051 more from your salary during retirement. Assume you paid off your house and car
    of RM900. That’s still not enough to cover your expenses. So have you seen the enormity of
    the problem being in employment for life. After your retirement age, your pension is half
    your salary at RM 1,250 per month. To sustain your necessity expenses of RM 2,651 per
    month, you’ll need to work again after 55 years old to get a salary at least RM 1,401per
    month until you die!!

But you may ask me, since you’ve shown me exactly how to make money part time, why not I
stick to my day job and continue making money part time until I retire at 55 years old. What I’m
saying is you can retire in 3 years time and concentrate on what you love most in your life and
can allocate more time to better work on the money making machines I’ll show you later. So the
9am to 5pm daily you can actually 100% concentrate to make way more money than you can ever
get from your day job. You might be making more money than your company CEO! No worries
about layoffs, company profits, globalization (in fact globalization is good for you) or even the
economy because the financial freedom I’ll teach you should shield you against fluctuations of
the economy.

Need I say more? Then again, I might be preaching to the converted. So continue your efforts
going through this manual. Let’s move on to the most important chapter in this Manual… Setting
the stage to your early retirement.

                          CHAPTER 6
        The Financial Freedom Goal : Setting the Stage

The only way to ensure 100% guaranteed FULL FINANCIAL FREEDOM is via CAPITAL
INVESTMENT. A lot has been said about residual income and making money from your home
as a means of FINANCIAL FREEDOM. But I believe that having CAPITAL and being an
investor as the only way to achieving financial freedom. You may tell me but I don’t have capital
and even if I work for the rest of my life I still wouldn’t have that much capital to sustain me to
eternity. Besides isn’t being able to make money from home or earning residual income from
network marketing is having financial freedom. Well, put it this way if you fall sick in a month,
you will stop earning income. What if your network marketing company goes bust, what’s going
to happen to your income. Just like big corporations like Enron and Arthur Anderson, MLM
companies can disappear over night. I believe you must make money via all these mechanisms to
BUILD enough CAPITAL so as to sustain you till death! So the objective of this manual is really
to learn to save and make money to build a huge sum of CAPITAL so that you become an
investor that can sustain you to eternity. But are there instruments in Malaysia that can give a
stable and safe returns that can sustain your monthly expenses forever. I will show you a few and
make comparisons between them. Some of them might be suited for others and some may not.
For Bumi’s they are many safe instruments such as ASB and Bank Rakyat. For non-bumi’s they
are the unit trusts and others. Method of achieving financial freedom consist of THREE basic
steps. They are :


Looks so easy. Let’s go step by step :


   Provides you with security of your money up to RM 200,000. Returns between 9%-12% pa.
   On average 10% pa. If you have RM200,000 invested, and your monthly expenses comes to
   RM 1,500 per month… you should be set for life! Check out Attachment 7.1 for example of

   There are many in the market. Your money is invested in combination of long term stocks and
   fixed income securities such as bonds. Capital is unlimited with returns between 9%-20% pa.
   Let’s assume 10% pa. With RM 200,000 invested, and your monthly expenses comes to RM
   1,500 per month… you should be set for life! Exactly the same as Attachment 7.1 for example
   of calculations.

    Gives 15% pa returns. Limited to RM 100,000 only. Can only withdraw in 3 - 6 months time.
    If you withdraw every 6 months and put into another tool like ASB, you should be set for life.
    If you have RM 130,000 (couple combined) invested and withdrawn every six months to be
    put into ASB and your monthly expenses is RM 1,500 per month… you should be set for life!

    100% fixed income securities like bonds, money market etc2, can provide returns of between
    5%-6% pa. Let’s assume 6% pa returns. Capital is unlimited and very liquid. With capital of
    RM 310,000 invested and and your monthly expenses is RM 1,500 per month… you should
    be set for life!

    Bank’s fixed deposits can provide returns of around 4.5% pa. Capital is unlimited and very
    liquid. With capital of RM 410,000 put into fixed deposits and and your monthly expenses is
    RM 1,500 per month… you should be set for life!

    This is more of the money making machine rather the sustainable tool. But it can work that
    way too and a really good one at that. Let’s not talk about using financing to buy the houses
    for now. Let’s assume you have accumulated cash of RM 300,000. Because you have instant
    cash, you can negotiate good deals and obtain 2 storey terrace houses in Puchong worth RM
    150,000 each (let’s assume all in with legal fees and renovations). You can collect rentals for
    RM900 for each house. So that’s RM 1,800 per month to cover your expenses forever! The
    best thing is your RM 300,000 is increasing in value. So if you sell these two in 5 years time,
    the house might have doubled in value already. But again, you’ll need to deal with problems
    of collecting rent and all the bathroom leaks etc2. Also, rental is actually taxable, but you can
    always charge expenses of maintaining the house to the rentals. Another thing is your money
    will not be liquid, so if you have emergencies you’ll get stuck. So you can make it like your
    second sustainable tool. The first one can be sustainable tool 1 perhaps.You might put RM
    150k in real estate and another RM 150k in ASB/unit trusts. We’ll discuss about real estate in
    the later chapter more.

The above are perhaps the most common and simplest sustainable tools around in Malaysia. Of
course you can have combinations of these. You can mix them just like I did for the real estate
tool I explained above. For example, you may want to mix your risks with combinations of tools,
you might want to put for example RM50k into risky unit trusts that might give you up to 25% pa
returns and put the rest of RM110k into fixed income securities of returns around 7% pa. So
basically with this combination and your expenses of RM1,500 per month, you should be okay
for life provided the riskier unit trust can continue it’s performance.

Attachment 7.1 Calculations for Sustainable Tool 1

No.                                  1              2          3          4           5           6            7            8           9            10          11           12           13

Month                          Jan-05           Feb-05     Mar-05     Apr-05     May-05       Jun-05       Jul-05       Aug-05      Sept-05      Oct-05       Nov-05      Dec-05       Jan-06

Balance b/f in ASB (RM)            200,000       198,500    197,000    195,500     194,000     192,500      191,000      189,500     188,000      186,500      185,000      183,500     201,025

Expenses per month (RM)             1,500         1,500      1,500      1,500       1,500       1,500        1,500        1,500        1,500       1,500        1,500        1,500

Balance c/f in ASB (RM)            198,500       197,000    195,500    194,000     192,500     191,000      189,500      188,000     186,500      185,000      183,500      201,025

Dividend earned
per month (RM)                 1,654.17         1,641.67   1,629.17   1,616.67   1,604.17     1,591.67     1,579.17     1,566.67    1,554.17     1,541.67     1,529.17    1,516.67

Starting Capital at Year 1     :         RM 200,000.00
Expenses per month             :         RM 1,500.00
Dividend per annum             :         10% per annum
Total Dividend per year        :         RM 19,025.00
Average Dividends per month              RM 1,585.42

Capital Position at Year 2     :         RM 201,025.00
Capital Position at Year 3     :         RM 203,652.50
Capital Position at Year 4     :         RM 206,542.75


Therefore, if you have a capital of RM 200,000.00 invested in ASB which provides dividends of 10% per annum at the end of the year and you withdraw your monthly expenses of RM 1,500.00 every
month from ASB, your capital will remain fixed or appreciates every year. This appreciation of capital will reflect the inflation rates for those years.


1. Dividend is assumed at 10% per annum, however based on historical data it has been fluctuating from one year to another. The way to solve this is to combine your investments in many tools to
   diversify your risks accordingly.
2. Your monthly expenses is assumed fixed at RM 1,500 per month. You will need the discipline to withdraw this amount at the bank at the beginning of the month just like taking your salary.

Legal Disclaimer

The author is providing estimates of returns based on certain assumptions and understanding of the current practices of Amanah Saham Bumiputera. The author will not be liable in the event that
there is a change to ASB practices regarding the above. The reader should obtain legal as well as financial advise from professionals and also from Permodalan Nasional Berhad regarding this.


In Chapter 4, we discussed in detail what your current expenses are and what your current
targeted expenses should be. If you can see from Step 1 above, I chose RM 1,500 per month as
the retirement expense target for financial freedom. I simply used the total necessities of RM
1,471 per month from Figure 1.7 from Chapter 4. Basically, it’s saying that with RM 200,000 you
will be able to pay all your monthly necessities of RM 1,500. But perhaps you disagree with me,
you would want more money allocated as your monthly retirement expense due to many reasons
of your own. But’s let’s assume now for argument sake that RM 2,000 will be able to pay all
your expenses if you are not working or having a day job. I’m saying you will continue working
on your money making machine as I will explain in the later Chapters, but RM 2,000 is the
amount of money that will be able to sustain you even if you sleep, eat and watch TV all day
long! This will give you the total freedom to be active and make way more money on your own.

You might be worried in case the economy starts slowing down or interest rates start shooting up
and your home loan start to bubble or your groceries start to go up or you suddenly fall sick and
need a lot of medical expenses or fuel price goes up or ringgit starts to depreciate again or your
car starts to break down or your children need to go to university or any other uncertainties that
may happen once you retire. Work out a full proof expenses target that will fully cover all angles
in the future. For example, take a loan or refinance your home to a fixed interest rate loan. If you
take a housing loan, your house will be fully covered in case of fire or whatever by your MRTA.
Buy a car at most 3 years old and do proper maintenance. Switch cars every 3 years. Buy brand
new if it helps! Groceries should go up according to our official government inflation rate
between 1% to 2% per year. Besides most items that we need most are controlled by the
government anyway. Your luxuries may increase but prices for things like CDs, computer items
etc2 are going down every year. Take medical insurance of maybe RM 50 to RM 60 per month
that will cover you up to RM15k - RM20k per year in medical bills. You can also rely on our
government hospitals, rates should be stable for some time. If ringgit depreciates, it may not have
any effect on you whatsoever unless you like buying Chevrolet everyday or eat American Potato
chips every day! Petrol prices are fixed by the government. Judging from the miserable
Indonesian experience, our government won’t dare touching this! Setup a fund for your children,
so that by the time he or she turns 18, they should have enough to go to uni. Anyway, they should
struggle a bit and learn more about things in this manual than going to university. And send them
to a local university, there are many local colleges in Malaysia that are as good as those overseas.
Telecomms rates are going down everyday, so is handphone prices are going down due to
technology. What if there’s an earthquake or a big flood, well your money is in the bank anyway
and your house is covered by MRTA. Choose a house which is not a flood infested area. With all
this you should come up with a full proof retirement monthly expenses target that will cover you
in all cases!

Now that you’ve assumed that RM 2,000 will be enough to sustain you every month if you’re not
doing a single thing. How much capital will be required if you use Sustainable Tool 1 in Step 1,
ie. how much capital do you need to put in your ASB/Unit trust that gives 10% pa dividend to
sustain RM 2,000 per month. The answer is ladies and gentlemen RM 253,000. For bumi, you
can use combined husband and wife to go above RM 200,000. Below shows, the capital required
to meet your ideal retirement expense :-

 No.                     Monthly Expenses (RM)                      Capital Required (RM)
  1.                             1,500                                     200,000
  2.                             1,600                                     203,000
  3.                             1,700                                     216,000
  4.                             1,800                                     228,000
  5.                             1,900                                     241,000
  6.                             2,000                                     253,000
  7.                             2,100                                     267,000
  8.                             2,600                                     329,000
  9.                             3,000                                     381,000
 10.                             5,000                                     635,000


So you see as above, if your monthly expenses is RM 3,000 per month, then you’ll need to put
capital of RM 381,000 into ASB.


Now that you’ve seen how much capital you’ll need to sustain your ideal monthly expenses,
you’ll start to wonder how you’ll ever get RM 253,000 in 3 years time! In summary, you’ll need
to save a fixed amount of your salary to be invested into certain portfolios, and to sell your home
and buy a new one and most importantly make money from the many methods I will explain in
the later chapters.

Figure 2.4 will explain in detail. Let’s assume your combined family salary is RM 3,000 per
month. Your ideal retirement monthly expense target is RM 2,000. Therefore, you’ll need to have
capital of RM 253,000 in three years time.

No.    Details                                     Year 1       Year 2          Year 3       Year 4
 1.    Balance brought forward (RM)                   0         48,000         115,200      274,480
 2.    Dividends earned - 15% pa (RM)                 0          7,200          17,280       41,172
 3.    Savings from day job salary (RM)            12,000       12,000          12,000
 4.    Second Income (RM)                          36,000       48,000          60,000
 5.    Capital gain from sale of home (RM)                                      70,000
 6.    Total Accumulated Capital (RM)              48,000       115,200        274,480      315,652


So in early Year 4 after three years, you’ve managed to accumulate capital of RM 315,652
exceeding your target of RM 253,000. It sounds so easy, but let me explain every line above in
detail one by one :-

1.Balance brought forward (RM) : Balance of money accumulated brought from previous year.
2.Dividends earned - 15% pa (RM) : Current savings put into medium to high risk unit trust or
  Bank Rakyat koperasi shares. Since this is for the long run, shouldn’t be any problem investing
  your savings into these kinds of wealth builders. If you are risk averse you can choose another
  investment that gives lower returns. Dividend is on number 6 ie. total accumulated capital.
3. Savings from day job salary (RM) : As explained earlier, we assume you have combined salary
  of RM 3,000 per month. With your overall expenses of RM 2,100 and with bonuses, you should
  be able to at least save RM 1,000 per month or RM 12,000 per year. I’m assuming this as fixed
  savings but you can increase this further as you receive increments in salary.

4. Second income (RM) : I will show you in the later chapters how to make money from stock
  investments, unit trusts, real estate, network marketing (MLM) and the Internet. With all these
  streams of income, you can easily make around RM 3,000 per month. Then, as you get better
  you’ll grow yourself to another RM 4,000 per month and then to RM 5,000 per month the next
  year. Just like running a business, you’ll need to set these targets and go all out meeting them.
5. Capital gain from sale of home (RM) : As explained earlier in Chapter 4, your current home is
  your income earner or capital builder as well. If you sell your current home and go out to the
  market for another new house or the better term to use upgrade to another better home, you’ll
  get at least RM64k out of it. If you withdraw your EPF Account 2, overall you can contribute at
  least RM70k to your accumulated capital. Also, since it’s your 1st home, there is no capital
  gains tax. Using real estate strategies, you go out to purchase a house below it’s real value.
6. Total Accumulated Capital (RM) : This will be your capital to use for your financial freedom.


So now you’ve seen that you can achieve financial freedom in 3 years time with these easy
steps, your goals should be :-

1. To be in a job that pays combined salary of at least RM 3,000 per month for the next 3 years.
2. To save RM 1,000 per month or more from your day job for the next 3 years.
3. To setup multiple streams of income taught in this manual of RM 3,000 per month and more
for the next 3 years.
4. To invest all your savings into an investment that pays 15% per annum for the next 3 years.
5. To sell your home for a profit in 3 years time and move to a bigger house.

In the next chapters, you will learn how to make up the RM 3,000 per month and very interesting
investment tools to use as your money making machine.

                              CHAPTER 7
                    Investing in Stocks & Unit Trusts

A lot of people have turned overnight millionaires as well as overnight bankrupts just because of
the stock market. There are hundreds of books out there dealing with this subject and perhaps can
better explain this subject to you. My intention in this manual is just to give simple techniques
and also dummies point of view. I’m not going to show you all the technical mambo-jambo or
detailed explanations of fundamentals or earning yield whatever. This is totally an idiots approach
but the sure fire approach!

For your information, you’ll be surprised to learn that 75 percent of all of the smartest money
managers in the world, working 20 hours a day, with huge research staff, powered by the most
advanced computers, have not been able to consistently beat the market. Of the remaining 25
percent, most were just able to keep pace with the market ( but if you factor in commissions and
fees you’re still a loser). So basically you can’t beat the market.

I won’t give you some magical formula to win big with stocks. This chapter is about investing
some of your money for the long term and also make up your target of RM 3,000 per month.
However, you still make money on the stock market. Here’s how to do it :-

Stock Market Art 1 : Investing Longer, Lower Risk

Easiest method and the laziest one. In the long run you will definitely win. Companies achieve
more and more profit every year. Inflation is going up. Companies become more and more
efficient everyday. They reduce staff and they use more technology. So pick a stock you think
we’ll be there in the next 20 years. Allocate some of your money savings and purchase stocks
such as Maybank, Sime Darby, Telekom, Petronas, MISC, and etc2. You’ll know they will be
there for some time and yes they will make profits more and more. The market will be volatile
and go up and down but who cares. All you know is the company will be there for quite sometime
until Malaysia achieve Vision 2020. Allocate perhaps about 20% to 30% of your savings and
choose long term. Yes, this sounds boring but it’s the most logical thing to do. If your share goes
down, so what? You’re keeping it for sometime. But if it goes up suddenly, make a killing right
away! Stocks goes on cycle of up and downs but generally stocks will go up!


Stock Market Art 2 : Join Unit Trusts

Unit trusts will be explained with further detail in the later Chapter. However, pick the brains of
the fund managers. And allocate your savings in combinations of unit trusts with several risks.
It’s quite easy if the stock market goes up, you win. If it goes down you lose. But in the long term
your money will definitely grow.

Stock Market Art 3 : Earn Dividends On Your Stocks While The Price Grows

People don’t concentrate too much on this. Maybe, they don’t care because they want to just get
the buck fast. However, dividends from companies are quite significant and can contribute to
your money making machine. It’s also quite easy. Choose a very long term stock such as Nestle.
Nestle is quite stable producing products such as MILO, Nestum etc2 for the Malaysian market. It
is also a global player backed by strong fundamentals and global backup.


The price trend for Nestle for the past 14 years above shows an upward move despite KLSE’s
performance. The stock crashed a bit in 1998 during the KLSE stock crash but fast picked up later
on. Therefore, if you bought Nestle stocks in 1994 at RM 7 per share and sold it ten years later in
2004 at RM 22 per share, your returns would be 175% over your investments. That’s 39% higher
than investing in ASB at 10% pa for 10 years of 136% returns. At 3 year intervals, you’ll still get
to win if you chose any period of the cycle. And the best thing is you get dividends every year on
an average of 5%-10% per year. We’ll assume 4% per year for the past 10 years. So let’s assume
you put RM 10,000 into a Nestle stock in 1994. If you sold it today in 2004, your investment is
now worth RM 27,500 plus average dividends per year of RM 600 totalling RM 6,000 for 10
years. Everything in, you earned profit of RM 23,500 from investment of RM 10,000 only. That’s
worth about RM 200 per month. Not bad with just an investment of RM 10,000! In case you
make a killing you can sell, else hold until it recovers. If you have put more into Nestle you
would’ve made more per month. This contributes to achieving your capital goal. Unless you think
people will suddenly stop drinking MILO in 10 years time, I think this counter is still safe.

Now, let’s look at other stocks on KLSE, in the next page. These are the strong counters with
good fundamentals and all of them show upward trends for the past 10 to 20 years.


So your strategy should be to invest bits by bits of your savings into counters you think will still
be there for the next 10 to 20 years! And understand what their business is all about. You don’t
want to invest in a housing developer who has limited land bank and has only one housing project
in his hands at the moment.

Stock Market Art 4 : IPO – Initial Public Offerings

You can make money in IPOs but your money will get stuck for 2 - 3 weeks and you’re not sure
whether you can actually get the IPO. But you can as and when take out your money from ASB
and try the IPOs. Again, read the prospectus before applying for the IPO.

Stock Market Art 5 : Short Term Buying and Selling

I strongly urge you to only use money you are willing to risk. Perhaps, just 5% of your savings
should be put into these kinds of investments. You might make a killing if you’re lucky or get a
good tip on a counter.

Power Of Unit Trusts

What is unit trusts?

The idea behind a unit trust is simple: Many people pool their money in a fund, which invests in
various securities. Each investor shares proportionately in the fund's investment returns -- the
income (dividends or interest) paid on the securities and any capital gains or losses caused by
sales of securities the fund holds.

Every unit trust has a manager, also called an investment adviser, who directs the fund's
investments according to the fund's objective, such as long-term growth, high current income, or
stability of principal. Depending on its objective, a fund may invest in stocks, bonds, cash
investments, or a combination of these financial assets. Every day, the fund manager counts up
the value of all the fund's holdings, figures out how many shares have been purchased by
shareholders, and then calculates the Net Asset Value (NAV) of the unit trust, the price of a
single share of the fund on that day. If you want to buy shares, you just send the manager your
money, and they will issue new shares for you at the most recent price. This routine is repeated
every day on a never-ending basis, which is why unit trusts are sometimes known as "open-end
funds." If the fund manager is doing a good job, the NAV of the fund will usually get bigger --
your shares will be worth more. But exactly how does a mutual fund's NAV increase? There are a
couple of ways that a mutual fund can make money in its portfolio. (They're the same ways that
your own portfolio of stocks, bonds, and cash can make money).

    •   A unit trust can receive dividends from the stocks that it owns. Dividends are shares of
        corporate profits paid to the stockholders of public companies. The fund might have
        money in the bank that earns interest, or it might receive interest payments from bonds
        that it owns. These are all sources of income for the fund. Unit trusts are required to hand
        out (or "distribute") this income to shareholders. Usually they do this twice a year, in a
        move that's called an income distribution.
    •   At the end of the year, a fund makes another kind of distribution, this time from the
        profits they might make by selling stocks or bonds that have gone up in price. These
        profits are known as capital gains, and the act of passing them out is called a capital gains

Unfortunately, funds don't always make money. If the fund managers made some investments
that didn't work out, selling some investments for less than the original purchase price, the fund
manager may have some capital losses. The good news is that these losses are subtracted from the
fund's capital gains before the money is distributed to shareholders. If losses exceed gains, a fund

manager can even pile up these losses and use them to offset future gains in the portfolio. That
means that the fund won't pass out capital gains to shareholders until the fund had at least earned
more in profits than it had lost. (Although you might want to reconsider your decision to remain
invested in a fund that's losing money if the rest of the market is growing).

Advantages of Unit Trust

    •   Diversification. A single mutual fund can hold securities from hundreds or even
        thousands of issuers, far more than most investors could afford on their own. This
        diversification sharply reduces the risk of a serious loss due to problems in a particular
        company or industry.
    •   Professional management. Few investors have the time or expertise to manage their
        personal investments every day, to efficiently reinvest interest or dividend income, or to
        investigate the thousands of securities available in the financial markets. They prefer to
        rely on a unit trust's investment adviser. With access to extensive research, market
        information, and skilled securities traders, the adviser decides which securities to buy and
        sell for the fund.
    •   Liquidity. Shares in a unit trust can be bought and sold any business day, so investors
        have easy access to their money. While many individual securities can also be bought and
        sold readily, others aren't widely traded. In those situations, it could take several days or
        even longer to build or sell a position.
    •   Convenience. Unit trusts offer services that make investing easier. Fund shares can be
        bought or sold by mail, telephone, or the Internet, so you can easily move your money
        from one fund to another as your financial needs change. You can even schedule
        automatic investments into a fund from your bank account, or you can arrange automatic
        transfers from a fund to your bank account to meet expenses. Most major fund companies
        offer extensive record keeping services to help you track your transactions, complete
        your tax returns, and follow your funds' performance.
    •   Tax Free. In Malaysia, approved unit trust are tax free. So the capital gains and
        dividends are tax free. (Please check to confirm with a tax consultant or your agent before
        proceeding with purchase of the unit trust.)

Tips on Unit Trust

Stick with stock funds. As long as you have five or more years until you need the money, stock
funds will likely provide you with superior returns over any other investment. But you have to be
patient. In the short term, the market is very volatile, so don't fret when the market drops 10
percent in a week, or your account seems to be worth a lot less than it was last month. Over five,
ten, or 20 years, you'll come out much further ahead by sticking with stock funds.

Think big. When you invest in the big Malaysian companies, companies like Public Bank,
Maybank, Telekom and Petronas, you don't have to worry much about whether they will be going
out of business any time soon. What's more, these industry leaders have generated outsized
returns for their shareholders over the past decades. Bigger isn't always better, of course, but
"large-cap" stocks like these provide plenty of solid returns (over the long-term, of course). Invest
in these stocks by buying a large cap stock fund.

Think small, too. Every big company once started out as a small company. If you can buy good
companies when they're small, you'll benefit as they get to be big and successful companies.
Trouble is, lots of small companies just get smaller and eventually go out of business. So small

company stocks tend to be a little riskier than big stocks. But here's the good part -- another funny
thing about small stocks is that they tend to do well when big stocks are doing lousy, and vice
versa. So if you own big and little companies in you portfolio, over the long-term, things will
more than balance out in your favor. Do this by buying a small cap stock fund.

Put it all together. Large cap stock fund. Small cap stock fund. Large cap international fund.
Divide your portfolio into three and put a third in each. Now you've got a diversified portfolio in
which at least one sector will be doing okay (or better than okay) nearly all of the time.

Avoid overlap. Sometimes people think that if one large cap fund is good, two or three are better.
When you buy several funds of one type, more likely than not you'll just end up owning roughly
the same set of stocks. Not only will you probably not increase your overall returns, you'll create
more work for yourself by having to track additional funds. Choose one good fund of each type in
your portfolio and, as long as they continue to perform well, stick with them.

Avoid bond funds. If you have five years until you will withdraw your investment (like for
retirement), then bonds might be appropriate for perhaps 10 to 20 percent of your portfolio, and
increasing to perhaps 40 percent (at most) when you are at retirement age. The problem that most
people have is that they think bonds are "safe" -- but bond returns are still volatile, and will give
you a lower rate of return than stocks over time.

Categories of Portfolios

Large-Cap Funds - Large-capitalization funds generally invest in companies with large market
values. As you can see from the applet at the right, large-cap funds are less volatile than funds
that invest in smaller companies. Usually, that means you can expect smaller returns.

Mid-Cap Funds - As the name implies, these funds fall in the middle. Not large caps, but not
quite small caps, either. The stocks in the lower end of their range are likely to exhibit the growth
characteristics of smaller companies and therefore add some volatility to these funds. They make
the most sense as a way to diversify your holdings.

Small-Cap Funds - A small-cap fund will focus on companies with a low market value. The
volatility of the fund often depends on the aggressiveness of the manager. Aggressive small-cap
managers will buy hot growth and technology companies, taking high risks in hopes of high
rewards. More conservative "value" managers will look for companies that have been beaten
down temporarily by the stock market. Value funds aren't as risky as the hot growth funds, but
they can still be volatile. Because of their volatility, small-cap funds require that you have enough
time to make up for short-term losses. And as we saw during 1997 and 1998, there are times
when the market turns away from small-cap companies altogether for extended periods. (Large
caps have taken the spotlight lately due to extreme volatility in the markets; small caps,
meanwhile, have floundered.) But that's no reason to abandon these funds. History would indicate
that small companies will eventually regain favor as markets settle down. And when they do, they
will likely grow more quickly than their larger cousins -- which can provide a good kicker for
aggressive investors who need to build as much wealth as possible while they're young.

Bond Funds - Though it may sound that bond funds are quite stable and slow in returns. But not
necessarily the case. In the long run, small caps might be even more stable.

Below is an example of how you can balance your portfolio into many types of funds.

A Simple Five-Fund Portfolio

  Fund                                                            Percent of Investment
Large-cap                                                                  50%
Mid-cap                                                                    10%
Small-cap                                                                  20%
Specialty                                                                  10%
International                                                              10%
Total                                                                     100%


Just giving you an example of Prudential’s list of funds for offer. Please do your own research on
this. There are many funds you can choose from Public Bank, BCB, Maybank, Standard
Chartered and more by just going to their website. You can also get an agent to call you to
explain. This is just giving you an example from information obtained from their website as of 28 April 2004. You can check this all at the website
yourself. It is not the intention here to promote you the fund but just to give you an example only.
There are more funds, only these few were highlighted here as examples.

Fund Names                Investment Objectives                          Past returns (1 year) *
PRUdana dinamik           Seeks to provide capital appreciation by
                          investing in equity and equity-related
                          securities conforming with Syariah                    New Fund
PRUdynamic fund           Seeks to provide capital appreciation by
                          investing in a diversified portfolio of
                          equity and equity-related securities; for             New Fund
                          defensive considerations, will invest in a
                          mix of equities, debentures and money
                          market instruments depending on the
                          short-term and long-term market
PRUsmall-cap fund         Seeks to provide higher capital
                          appreciation by investing in investments
                          which have the potential of substantial                 66.97%
                          value appreciation. Based on Adjusted
                          Kuala Lumpur (KLEMAS).
PRUgrowth fund            Seeks to provide high capital
                          appreciation by investing in investments
                          which are undervalued and have good                     57.91%
                          growth potential. Based on Kuala
                          Lumpur Composite Index (KLCI).
PRUbalanced fund          Seeks to provide capital appreciation
                          and meaningful level of income by
                          investing in both equities and equity-                  43.38%
                          related securities and fixed income
                          instruments. Based on 50% KLCI +
                          50% 12-month Maybank Fixed Deposit

  PRUbond fund                Seeks to provide a stable income stream
                              by investing in fixed income securities.
                              Based on 12-month Maybank Fixed
                              Deposit Rate.
  PRUcash fund                Seeks to provide a high level of
                              liquidity while providing reasonable
                              returns by investing in low risk                                  NA.
                              investments. Based on Interbank
                              Overnight Deposit Rates.

* Please read the prospectus before investing. The returns given are just past performances and do not guarantee your
  returns for the future.


  I’ve parted to you so much information to start with. Where should you start. These are the things
  you can start doing :

  Step 1 : Decide on an agent and the unit trust

  Step 2 : Take 20% out of your EPF Account 1 into small caps funds for the future just to start you
  familiarizing with unit trusts.

  Step 3 : Decide on allocation of funds based on risk. You may decide to allocate on how I
  explained to you in Figure 2.8. Decide an allocation you are most comfortable with. It will also
  depend on the market. You may just allocate just a portion of your savings into unit trusts.

  Step 4 : Buy the unit trust. Perhaps every month put portions of your savings into selected unit

  Or you can try on the Amanah saham. Some are fixed priced like ASB for Bumi only. Some like
  ASN, where price fluctuates.

  There are also the foreign mutual funds. If you have the balls and money to play, then allocate
  some of your money for this. But again it’s risky, t’s taxable and you’ll have to move money to
  offshore accounts via very creative methods first!

  Happy investing!

                        CHAPTER 8
     Real Estate : Key Ingredient to Financial Freedom
My favourite topic of them all is real estate. Why? Because I know this is a sure fire method in
achieving your financial freedom goals. I guess maybe some of you might have gone or read
Azizi Ali’s books and seminars about how make it in the real estate. Well, I’ve never been to his
seminars but I know for sure you’ll make a killing here. Robert Kiyosaki talked so many times
about how he made it from real estate. In this Chapter, I will talk in general about real estate in
Malaysia. The next chapter will concentrate mainly on how to make a quick killing through real
estate auctions. I suggest also, apart from below read Azizi Ali’s books, a lot of good tips there on
how to become good landlords and etc2.

Why Real Estate?

It’s pure economics and mathematics. People simply need a place for shelter, no matter how old
the building is. Just like you and me, we want to build our own heaven in this world for our
families. It’s human nature. We want shelter and would devote our entire salary just to pay our
mortgage in order to buy a home. If we can’t buy, we’ll rent. Sometimes families will go to
unreasonable logic just to own a home. We can see many example amongst us, families not
having enough income will go all out just to own a big home to house their families. Population
of humans in this world are growing at an exponential rate, ie. at mind-boggling numbers. Just
look at Malaysia’s population, our population was 8 million in the year 1985. Now it has grown
to almost 25 million people in nearly 2 decades. That’s almost 213% population growth in 20
years. Law of exponential growth says it will grow to almost double that in another 20 years time.
So, maybe in 10 years time, our population will grow by another 200% or more! If you look at
urban areas like Kuala Lumpur, JB and Penang, populations there are increasing at a bigger and
faster rate than the national average. There are huge migrations from the rural areas to the urban
areas like Klang Valley, JB and Penang. This is due to many factors such as availability of
employment, better infrastructure and education and more. Now, here’s the story, land is fixed.
Land is limited, it doesn’t grow at the same rate as population. In fact, it never grows. Because of
that, economics say if demand outstrip supply, prices will have nowhere else but to go up. A
house in the slum areas will go up anyway in 20-30 years time, because people need to find a
place to stay. To top this all, there are the inflation rates to deal with. There are pressure on prices
of raw materials and labour. So, you and I know if you didn’t buy a house in an area, the price
would start to go up the next year already and you’ll be paying another price already. Even if the
location is far away from the city centre, people will be forced to live there sooner or later and the
city will grow and reach those places one way or another. Who would’ve thought Subang is
somewhere you would stay 20 years ago. So are you convinced now? So there are two main
activities with regards to real estate investment, one is Buying and the other is Selling.


Motivated Sellers

Now that you are convinced, you may ask how I can get ahead? I don’t want to wait another 20
years to become financially free. The answer is you’ll need to buy the property lower than the
market value. The secret of buying properties creatively is to look for people who are desperate
and seeing whether their property has value. There are many motivations for selling a house. The
ones that you are looking for are the highly motivated ones which consist of 1% of the sellers in

the market. There are many reasons for selling, among others divorce, property needs fixing up,
negative cash flow, transfer, arrears in payment, negative location, taxes, deaths, retirement, out
of area owners, needs capital for another investment, sickness and many more. These are the
people with personal problems which you can actually help buy purchasing their properties.
These are the kind of seller you want to find.

Finding It

Kiyosaki said he goes through 1,000 leads one by one and narrows down until he finds the real
estate he wants to get. Use newspaper classifieds, real estate agents, wandering around, your ads,
etc2. There are four steps to follow :

Step 1 : Find the lead. Scan through the papers. You’re bound to find one. You look in an ad and
see the words urgent sale, owner leaving country. Every morning go through entire ads and
identify those you think are the motivated sellers and perhaps prices are below the market value.

Step 2 : Call the seller and ask for information mostly on why selling. If you can get a seller
who’s willing to sell below market for a quick sale. You can ask these questions :-

        i)      Whether he’s the owner or agent.
        ii)     Type of house, bungalow, semi-d, double sty terrace, leasehold or freehold.
        iii)    Location of house
        iv)     Sq feet
        v)      Age of house and any CF?
        vi)     Bedrooms and Bath
        vii)    Land area
        viii)   Why are you selling?
        ix)     Plans if he does not sell.
        x)      Any offers? Is he willing to negotiate?
        xi)     How long has it been on market?
        xii)    Any housing loans, how long and how much more to settle.

You shouldn’t straight away negotiate with the seller over the phone. Do some calculations first
and determine whether it’s undervalued. You can see the classified and see the prices of the area
and jot down houses in the area first. If you’ve made a decision to visit, make sure you call
houses in that area and prepare visits to those as well. What the hell, since you’ll be around the
corner. So, rush to the house and inspect and just reconfirm again with the seller facts discussed
over the phone. Things you need to check out can be access roads, facilities, shops, racial mix of
the area etc2.
Then, you’ve found your jackpot. Now, you’re ready for the next step.

Step 3 : You make your offer. You can either go down all the way on his offer or you can do
some calculations on his settlement amount. If his settlement amount is much lower than the
offered price, try moving to the settlement amount or lower. If settlement amount is higher and
the seller is willing to fork out money to settle the loan, than target anywhere between first offer
and closer to settlement amount is quite good. You will need to also see whether you need to do
renovations on the house later on.

Step 4 : Buy the property. This is when you sign the Sales and Purchase Agreement (S&P). Get
your own lawyer because buyers are suppose to supply the lawyer. If you do not wish to take a

home loan, you can be more creative by paying interest on late payments after a certain period
let’s say 3 months. The S&P can be crafted to such an extent in benefits both seller and buyer.


This is where the money is. You bought your real estate at a good deal but what’s your strategy
next? There are several options to go about this. But before that let me explain Real Property
Gains Tax since we’re in the topic of making profits from selling a real estate.

Real Property Gains Tax
As a Malaysian citizen, you will be subjected to Real Property Gains Tax only if you sell within 5
years from the date of acquiring the property. The taxable amount is based on how long you held
the property. Real property gains tax shall be retained by your solicitor. Your solicitor is
authorised to pay this sum to the Director-General of Inland Revenue upon receipt of the notice of
assessment to procure the Certificate of Clearance.

                                                                         Individuals & other
Category of disposal                             Companies                     persons
                                                    %                            %
Disposal within 2 years                             30                           30
Disposal in 3rd year                                20                           20
Disposal in 4th year                                15                           15
Disposal in 5th year                                 5                            5
Disposal in 6th and subsequent years                 5                           Nil

Exemptions from RPGT is available under the following circumstances (some of the exemptions
only) :
- an amount of RM5,000 or 10% of the chargeable gain, whichever is greater, accruing to an
- gain accruing to an individual who is a citizen or a permanent resident in respect of the
disposal of one private residence;
- gain arising from the disposal of any chargable asset from 1 June 2003 until 31 May 2004.

Therefore, you’ll get exempted for one property in your lifetime from RPGT, so make one BIG
killing out of this.

The day you signed the S&P is the day you advertised the house for sale either through the
papers, agents, the net and whatever other methods. If you really want to be sure of the value to
sell, you can do a valuation on the house for RM 1,000 perhaps. The S&P can be crafted in such a
way you pay upfront 10% cash as first installment. And the rest to be paid in 4 months time.
Therefore, the seller will still be paying his mortgage for the next 4 months. In the event you are
late in selling, you pay a late penalty of 6% per annum on the rest. Therefore, the home owner
will not bleed in the meantime. So you have perhaps the time of 6 months to sell the house now.
You pay the 6% late penalty just to buy time. For example, you and the seller agreed on RM
200,000 as the buying price. You pay the seller RM 20,000 as 10% downpayment. You also bear
the RM2,000 legal fees and RM1,000 stamp duty. So now you have 4 months to find a buyer or
else pay late penalties. Let’s say it took you 6 months to find a buyer. The market value is
actually RM 300,000 and you managed to sell it at that price. How much will you make :-

Purchase price                    RM 200,000
Legal Fees                        RM 2,000
Stamp Duty                        RM 1,000
2 months late penalties           RM 1,600
Cost of advertising               RM     600
Total Cost                        RM 205,200
Selling price                     RM 300,000
Gross profit                      RM 94,800
Less 30% RPGT *                   RM 28,440
Net Profit                        RM 66,360
Cash as capital                   RM 25,200
6 months return on capital        263%
* Real Property Gains Tax.


If you can do this again in the next 6 months. Your profit for the year would be RM 132,720.
That’s equivalent to monthly salary of RM 11,060.00! All you need is cash capital of RM 25,200
and some time to run around and making calls. Do you need to work everyday 8 to 5 for this. I
don’t think so!

What I like about real estate is banks are willing to give you money to buy houses so that you can
profit out of it. This is when you fund the purchase with a home loan from the bank. If you have a
good record with stable income, you should be able to process the loan in 2 weeks time. Basically
you can purchase the home with loans and hold for some time before selling or even sell it
immediately. Your terms should normally be 10% cash for downpayment, then the rest financed
with bank loans. What I like about this is the high returns you get from selling real estate from
OPM (Other People’s Money). Your returns should be from the downpayment you’ve put it ie.
the 10% you put in. Let take an example, you want to purchase a RM100,000 apartment in KL
which you got for a bargain. You put RM 10K for downpayment. Let’s assume there is no
stamping fee, legal fees and MRTA. You resell it to the market again at RM 140,000. So you
made a profit of RM 40,000 out of RM10,000 you’ve invested in 2 years time. That’s about 400%
returns or 56% per annum. This is perhaps the best investment you can put your money in!
However, there is a catch, your installments is limited between 25% to 40% of your entire
household income. So pick only the best real estate you can get your hands on and get them on

The safest and the best strategy is to buy with a loan and hold until you can sell at the best price
you can get out of the market. Meanwhile, you rent your property to someone else to look after
for. Let’s say you buy an apartment for RM 100,000 in KL. Your downpayment is RM 10,000.
Therefore, for a loan of RM 90,000 your monthly installments should be around RM 540 per
month. A three bedroom apartment is normally rented at RM 600 – RM 700 per month. Let’s say
with service fee of RM 100, you make a clean RM 100 per month. At the end of the year, you do
some maintenance on the house, this way you’ll save on taxes as well. Therefore your loan is
fully serviced by rentals and you have extra money for maintenance. Again, in two years or three
years time you sell at RM 140,000 you’ll make RM 40,000 out of your RM 10,000 invested.
Wasn’t that easy?

Normally banks finance up to 90% of loan and MRTA (Insurance to cover your home). There are
also legal fees and stamp duties, processing fees involved. Some banks are giving away the legal
fees and others for free. So if you buy a house for RM 200,000, you first pay the 10% to the
buyer, then the rest 90% you get a loan. Then, on top of that you include MRTA into the loan. So,
you pay RM 20,000 to the seller. Then you take a loan of RM 200,000 (RM180,000 loan plus
RM 10,000 for MRTA). Some banks charge you a penalty of about 3.5% on the loan taken if you
settle within 5 years or less. Do your shopping on all the banks in Malaysia and compare your
best alternative. Their offer change from month to month. So it won’t be of any use if I list down
each bank and their offers. Before signing the S&P, make sure you do some window shopping
and can even ask pre-qualification from the banks. To qualify for the home loans, normally you
need to submit your J-Forms, EA Forms, salary slips, bank statements and a letter from your
employer stating your current salary. If you’re self employed, you’ll need to submit your audited
financial statements etc2. Just to prove that you are getting a stable income. All the bank wants to
know is do you have enough income to pay every month and that’s all. If you have RM 200,000
in your ASB, you can show this to them. If you’re working you should have no problem, but once
you’re retired or financially free, you’ll need to show evidence of monthly income coming in.
That means file and pay your taxes. Let your business give you a salary or a directors fee and file
this as personal income tax. If your bank is your personal bank and you have a very clean record
with them, then you should have no problem. Again, you’re limited up to 25% of your household
income. The period of payment depends on your age, they can give you up to 60 years old or up
to 70 years old. So if you’re younger you’ll be paying a lower monthly installment. If you’re in
your 30s, you can borrow up to 30-40 years. Interest rates can be variable or fixed. Many banks
give lower rates in the beginning of loan and increase afterwards for houses under construction.
One bank is giving 3.8% pa in the first year with no legal, stamping fees and etc2. But you’ll need
to keep the house for 3 years or else incur a fixed penalty of 3.8% over the loan amount.
Mathematically, when a loan begins, in the beginning of the loan, your installment will just
consist of interests. As the period goes up, interest will fall and principles will start to decrease
until the end of the loan, the principle will start rise. So, if you sell your home in the beginning of
the loan and you borrowed RM 200,000. Your settlement amount might just be RM 200,000
eventhough you’ve paid like almost RM20,000 already in terms of installments. So if you target
to sell the house in 2 years time, for a loan of RM 200,000 at 3.8% in the 1st year and for a loan
period of 30 years, your monthly installment would be RM 931.91. If you’ve managed to rent it
out for RM1,000 per month, you would’ve fully covered the installments and sell it for example
at RM 280,000. You would’ve made profit of RM 80,000 in 2 years time. You will need to
deduct 30% of this for RPGT.

Your Home Is Your First Real Estate Investment
Your first real estate investment would be your first house. A lot of people are quite sentimental
about this and would want to be in that house for the rest of their lives. But the truth is people do
move their homes, sometimes and always to bigger homes. You can actually move from one
another and make fortunes along the way. A lot of people also think that if they sell their homes,
then they’ll have to spend more for their next home and actually let the opportunity of instant
capital for full financial freedom just go away. This is not so actually because as I will prove to
you later you are better off if you can get the opportunity to sell right away. I have heard so many
stories of some of my friends claiming that they’ve been offered already almost RM100,000 for
their house still under construction and the price will definitely go higher after that and they lose
out the opportunity for instant cash just like that. The thing is they’re always that kind of

neighborhood, almost that kind of location if you really looked hard and bargain using the
techniques and strategies I mentioned earlier in the Chapter. The secret lies in the home loans.
Where else can we get people to loan us money at such a low rate of sometime BLR minus one! It
means we have the opportunity to actually get loans at low rates for example at 6% per annum
with no guarantors or any other backing easily but with just your salary slips and income tax J-
forms and invest this in unit trusts or other real estate venture that might give us returns of more
that 20% pa. Or that money can provide us the financial freedom to cover all our necessity
expenses so that we can pursue our interest and make more money than we have ever dreamed
before. Let’s say you bought your house for RM 350,000 with 100% loan at 6% pa of 30 years
and assume that you start paying in full already. In the second year before completion, someone
comes and offer you RM450,000 for the house. That means you make RM 100,000 plus RM
12,886.90 of total now RM 112,886.90. You’ve decided to place that money in Bank Rakyat
giving you 15% pa dividends. Market price for houses of same size have now risen to almost the
same at RM 450,000 but due to your excellent negotiation skills and techniques we explained
earlier, you manage to buy it for RM 400,000. Your installments have now risen to RM 2,398.20
per month for the next 30 years an increase of RM 300 from the previous installment. In the 5th
year you’ll be able to pay in full your monthly installments with dividends from your Bank
Rakyat investment. Also, you’ll be able to fully settle the house in 8 years time instead of 30
years! Along the way, you can start to sell again, do another cycle again. And don’t forget with
RM 112,886.90, you can use this as capital for other real estate investments. Don’t forget you can
also withdraw your EPF account 2 as capital too.

The secret of refinance strategy is something most people don’t really realize. Most people would
want to clear their loans as fast as they can. The secret is to take more loans so that you can place
cash to an investment that can pay more returns. For example, let’s say you took a loan to buy
your home of RM 135,000. Your house price then was RM 150,000. Therefore, 90% loan over
the house price. Your loan is at BLR+1 or 7%. After 2 years, your home is now valued at RM
250,000. Your settlement amount now is RM 125,000. You can go to a bank, and refinance it at
the new value now and perhaps with a lower interest rate. Therefore, you can take a higher loan
of RM 225,000 ie. 90% of the current valuation. The bank will now give you cash of RM
100,000. You take a bigger loan but you actually get RM100,000 to place into unit trust that can
give you 15% returns pa and pay of the installments as well. Wasn’t that so easy and can also
assure your financial freedom as well.

One other good option for bargain hunting is via auctions. There are many auctions held in a
week. You can just buy a newspaper and check at the Notices section. There is a reserve price set
for the property and you will need to deposit a sum of 10% of the reserve price on the auction
day. You will not loose the money unless you bid on the day and became successful. The auctions
are normally held on working days. You’ll have to spend time on working days. The modus
operandi is to actually look at the reserve price and check the property yourself and do also parent
title search and also perhaps to check with the apartment management on the physical condition
as well as history of the property. Then, you can check the value of properties in the area and also
the normal rent in that area. If you have made your decision, it’s time to bid. But be careful, if the
property has gone into option it can be that the location is not good. If you have done a detailed
and complete survey of the location and premises and asked around, then the reason for the
auction is that the owner is having his own personal problems and not related to the property.
Also, there might be outstanding service maintenance fees, quit rent, assessments, taxes etc2. Ask
the auctioneer of the details of the property. If you can try to communicate with the owner far
better. But do a thorough check before getting caught with a real estate nobody really wants.

                         CHAPTER 9
       Internet - The Ultimate Money Making Machine

We have finally arrived at a Chapter where I have many times mentioned throughout this manual.
My intention in this Chapter is not to teach you on how to use the internet. But this will be more
of and direct to the point on how to make money on the internet. I will explain not only methods
but the overall picture regarding making money online. This will cover not only the skills,
techniques, strategies, infrastructure and etc2 but also the emotional and psychological
requirements in making money online from the comfort of your living room or your study room. I
will use real life examples and will share with you my own personal experience. I must be one of
the living examples of a person who actually worked 24/7 from home making money just from
one source which was online. With this opportunity you will be able to start making money part-
time to meet your goals of financial freedom. Some of the opportunities will require you to invest
a small token of money. But I will always give suggestions to you on making money without a
single sen required and straight away start earning some income.

As our privileged customer, you will be subscribed as a lifetime member of my portal where I’ll update you with all the databases of links
and opportunities and sorted out in an easy format for you to start your online business. Contact
via email to get yourself registered. I’ll explain more below.

What is the Internet?

Internet is actually a tool that connects people from around the world. With this technology they
will be able to share information as well as advertise and sell products and services to people
around the globe. Currently, there are 605.60 million people using the internet worldwide. If you
want to know more about what internet is and how it all works, just get a book with all the details,
technicalities, server connectivity or whatever. This manual is not intended to go into those
depths. But it will be good to have a certain amount of understanding what internet is all about.

Why the Internet?

In summary these are the reasons why you need to start jumping into the bandwagon of making
money on the internet :

1. Global Exposure - As explained earlier currently there are 605.60 million internet users
   worldwide, therefore you have an audience or target market of that much just from the
   comfort of your living room. Plus, it is a growing market with many more billions of people
   coming online every year.

2. Cost Is Low - If you were to start a traditional offline business, you will require capital,
   shopping lot, operating costs, rentals, employees wages, EPF, Advertising costs, permit and
   etc. Whereas, for an internet business, you start with almost nothing just a PC and a modem!
   Below is an example of comparison between traditional and an online business. Let’s say you
   decide to open up a 2 ringgit shop somewhere in Klang Valley. Here’s the comparison :

      Details                                                          Traditional   Online Business
      Start-up capital for equipment, furniture, paint etc2            RM 30,000            RM 0
      Computer, printer and scanner                                     RM 2,000       RM 2,000
      Shop lot rental (One year)                                       RM 12,000            RM 0
      Employee wages including EPF                                     RM 24,000            RM 0
      Advertising flyers, radio, papers                                 RM 5,000            RM 0
      Others including permits, electricity, water                      RM 2,000            RM 0
      Total Cost                                                       RM 75,000        RM 2,000
      Revenue per year                                                 RM 100,000     RM 410,400 *
     * assuming you make US$150 per hour from surveys 2 hours a day.


3. Time - you can do business 24 hours a day 7 days a week at your own leisure. You choose the
   time you are most productive and comfortable with. Flexi hours at its best. You can choose to
   do business at night while doing your chores or going to the bank during daytime. Also, you
   won’t need the time to travel and meet your customers or people.

4.   Work from anywhere in the world - you can bring your laptop and connect to a modem
     anywhere and still continue running your business as though nothing had really stopped. You
     don’t have to worry about taking time off for holidays.

5.   Passive Income Due to Automation - your shopping carts, affiliate programs, credit card
     processors are all automated. Therefore, let’s say you setup everything correctly and go off to
     Langkawi for 2 weeks. By the time you come back, money would already be in the bank and
     nothing has actually stopped.

6. No Face to Face Selling - some of my MLM friends failed in their network marketing
   business just because they hated meeting people and being turned down so many times. Via
   online business, you wouldn’t even realize you were turned down. Just that they visited your
   site and didn’t sign-up for membership or purchase your products.

7.   Legality of business transactions - compared to selling services on traditional basis,
     everything is automated and can be audited. Contract terms are all set out in advance.

8. Huge Income Gap in the world – maybe you realized this. There is a huge income and price
   gap in the world. For example, Mcdonald’s value meal cost RM 6 here in Malaysia, whereas
   in US it’s US$ 6 for one set of value meal. Wouldn’t it be great to buy that RM6 in Malaysia
   and sell it back to the Americans for RM 20, they’ll make a savings of RM 4 for their value
   meal. However, example given above is not logical but is a good example of how deep the
   gap is. But you can sell other things like products and services and even your time.

What do you need?

1. You’ll need a PC first before you even begin. If you are serious about making money online
   you may want to invest some capital in ensuring you have the most suitable machine to do
   your work and also a reliable one at that. Buy the latest specs if possible at Plaza Low Yat.
   You may also want to get a laser printer and a scanner. You’ll need a CD writer and large
   hard drive capacities to make sure you have ample space for backups. Also, maybe rims of
   papers and blank CDs as well. Overall maybe RM 2,000 for PC and others.

2. Get softwares at Plaza Low Yat also. You’ll need Windows XP, Norton Antivirus 2004,
   Office XP, Frontpage 2004, Winzip, Wsftp, Adobe Photoshop, Adobe Acrobat and more. If
   you’re using broadband make sure you use a Firewall software like Zonal Pro to protect you
   against hackers. Go to to learn about these softwares. Allocate a certain
   amount of money for this.

3. Broadband internet access from Streamyx Tmnet. Check online at for
   more information. Why do you need broadband? First of all because it’s unlimited, you will
   have the freedom of thought to surf at your leisure. If you are paying by the minute, there will
   be some psychological barrier while online. It will free your mind totally. Of course, you’ll
   save money actually if you were to decide to do some project while online or you spend time
   trying to read and learn while online. Also, speed is a decider as well. Broadband speed for
   download is 384 kbps while normal dial-up is 56 kbps speed. This means broadband speed is
   7 times more. You’ll save a lot of time here and time is of essence when you’re online.
   Delays can cause forms to get stalled and will clamp your productivity and also creativity.
   Cost of Streamyx is RM 66 per month. One time service activation fee of RM75 will be
   charged upon service activation. Installation fee of RM50 to be made payable to TM Net’s
   registered contractor upon successful. Allocate some RM 917 for the next 1 year.

4. Something quite important to remind you which has always been missing in some of the
   internet money making manuals is comfort of chairs, furniture, lighting etc2. You may need
   to upgrade your chairs, tables, computer tables, printer tables, study lamps, cabinets, fan and
   etc2. Maybe allocate some RM 700 for this.

5. Allocate a special study room or a corner. Make sure its private and you cannot be interrupted
   frequently. This is quite important as you don’t want to be interrupted while filling up a form
   or doing something really urgent online.

6. Get organized. Keep file folders where you print and file all data and userid and passwords
   within reach. You can keep data online but sometimes it’s important and much easier and
   faster to keep a black and white backup.

7. Get a mic and speakers on your PC so that you can easily communicate with joint venute
   partners, web hosting providers, friends etc2.

8. Get a phone with fixed line connection.

9. Get an international calling card. Buy the cheapest especially for US and UK rates.

10. Get a fax software connected to your PC and scan and keep your digital signature in softcopy.
    If you have extra capital get a fax machine too.

11. Just an idea, place a TV and a mini-hifi in your room that way you can also follow the news
    on Astro for what’s going on latest on CNN, CNBC, BBC etc2. You don’t want to get caught
    if another Sept. 11 happens again. Fast action is important on the internet.

12. Get at least 4 clocks on the wall and label them according to LA, New York, London and
    Malaysia. Also, try to get a big map of the world or a globe in your study room.

13. Make sure all your office equipments, paper clips, file folders, stapler etc2 are all ready and
    within reach.

14. Depending on your level of computing skills, go for a short course about basic things such as
    Windows, Internet Explorer, Words, Excel, Emails etc2. Allocate some RM 500 for this.

15. Electricity cost - some cost incurred monthly.

16. Get a credit card ready with Online-banking facility. Have both VISA and Mastercard ready.

So, how much will you need :

Item                                 Cost (RM)
Computer                               2,000
Broadband                               917
Furniture                               700
Computer Course                         500
Total Capital                          4,117


If you already a computer and already have a study room with all the facilities or maybe you
don’t want to go overboard and can straight away start your operations then ignore the capital
required. However, you need to have broadband installed because it will be savings to your
compared to using a dial-up account.

The list of what needs to be done above is quite comprehensive which fully covers all your needs
to do business online. Imagine like you are actually a real business and your study room is your
Company HQ with all its marketing and sales staff, accountants, CEO, operations manager and
all the company infrastructure ready. However, you’ve crammed everything into just one room by
yourself. You study room will be the war room or operations room to run your global 24/7
business. If you can meet all the above and you can at least allocate 2-3 hours daily consistently,
I’ll show later exactly how to make your first buck online and cover all the above expenses
straight away.

Fundamentals Once You’re Online

1. Email Account - you need this to communicate with anyone. Your first step is to register for
   free email accounts. You can go to and register for one. You can also
   go to for one also. If possible do not use your tmnet or streamyx for any
   communications. Because if your main email has been spammed, it will be difficult to change
   your email address and you might also reveal some of your details to hackers and you might
   be taking advantage of you.

2. Search Engines - your default Internet Explorer page should start at Yahoo. Go to and go to Tools > Internet Options > Use Current for Homepage. This is
   where you can search on whatever you want on the internet. Should be your starting point on
   the internet. You can also use for searching the net. For example a search
   on making money online will come up with many links. This is an important tool for you to
   start doing anything on the internet.

3.   Money Making Portal - sign up straight away to my membership portal               or        email      me         at to get your free lifetime membership userid and
     password. In there I will provide database of money making opportunities and any updates.
     Also tools such as list of softwares, tips and tutorials, forums where you can discuss or ask
     your problems to other members or even build networks of friends with the same interest. It is
     a powerful tool and compared to the other manuals, you’ll still get updates after years of
     purchasing this manual, a lifetime opportunity. Also, you can communicate with me easily
     where I will be your guide and online mentor. From here you will no where to go next.

Option to Setup US or Singapore Mail Drop Service

I will show you certain affiliates where you can start making money straight without a single sen.
However, one of the best money making opportunities is by using clickbank and some others,
there are thousands of ways to make money on the net promoting and becoming affiliates of other
products and services. However, unlucky for Malaysians, we somehow have been written off
from the many paymaster websites which include Clickbank, Paypal, Yahoocash and many more.
Meaning even if you want to collect money, you will face difficulties because Malaysia is usually
not listed in their database of countries. A way to solve this is to setup a mail forwarding mailbox
with a street address in the USA or in Singapore. This way you can easily accept US checks to be
forwarded to your address here in Malaysia. You can time the mails to be forwarded to Malaysia
every month up to 150 pound per shipment. You’ll need a capital of RM 1,124.80 for use of US
mailbox for 1 year and delivers back your mails every month. This way you can have a branch
based in New York City, USA. Just imagine that. Go to for more
information about this or go to Google and place keyword “Singapore mailbox drop service”.

Mindset of an Internet Money Maker

Now after all the explanation provided above on what needs to be done first before making
money. You’ll need to tune your mindset in order to ensure you can smoothly make money. I’m
putting this first before showing you the exact way of making money is because there are certain
things you need to change in your mind before starting to make money. These are also universal
mindset change for success but can be specific to making money online :

1. Goal Setting – you need to set goals what you want to achieve in a month or a year. Let’s say
   I want to make RM 5,000 a month from Internet alone. Then, you will go all out until you get
   that RM 5,000 because believe me after I teach you all this and you really follow the steps I
   showed you, you can achieve that much if you want to :
2. Emotional Factors – just imagine if you get cooked up in front of your PC for the past 1 day.
   You’ll get tired and will lose focus. Make sure you are in your best emotional state.

3. Rest and Relax – make sure you allocate time for rest & relaxation. Let’s say you on into
    internet at 8 am and do all the automations, promotions, checking of stats, paying of bills.
    Maybe at 10:30 am, take some time to unwind, read the papers, watch TV or go to the
    groceries fill up gas for the next 2 hours or something. You don’t want to cook up yourself
4. Set a Timetable – set a timetable based on the 80/20 principle. We’ll set a online making
    time table at the end of this chapter.
5. The 80/20 Principle – As
6. Discpline – just like anything else, this is especially more important for internet marketing. If
    you’ve set your mind to achieve a certain hits target, then you’ll need to consistently promote
    on a minute scale but almost consistent everyday. You need discipline to ensure that happens.
7. Biological Clock – you may to start to think that, since you can work anytime or work
    against US office hours or Eastern Time office hours. Then, you’ll sleep in the morning and
    work in the wee hours of the morning. My advise is don’t. Humans biological clocks are
    natural, work in the daytime, sleep at night. Just follow the normal office hours for working if
    you’re a full time internet money maker.
8. Patience and Time Commitment – success doesn’t come immediately. You setup a website
    and start your promo. But nobody is coming. You just learned on how to market online, if
    you build they will come…. But it will take time…
9. Money to make Money – you may need to put some money start things going. But this
    money will be far less than required to do a traditional business as was already explained
10. Free Your Mind – just like Neo in Matrix, internet is completely boundless. Meaning there
    is no boundary or limit to what you can achieve. And nothing is impossible. Unlike working
    in a corporation, you will need a certain number of years let’s 10 years to become company
    CEO. Someone, will scoff you if you wanted to right after graduation. But on the Internet you
    must believe you can do anything and it can be achieved. You must be totally creative and
    flexible. What worked yesterday, will definitely no longer work in just hours…
11. Risk Taking – you need to take some risks on the Internet but not that big of a risk like
    buying real estate or opening up a store. This is quite a minute risk taking if you ask me. For
    example, taking up a domain name and webhosting, you might not get your money back, but
    free you mind, take the risk and try.
12. Learn to improve and gain knowledge – a lot of learning is required. You must
    continuously update yourself or else you’ll lose out or cannot compete on the cyberspace.
    You may need to spend hours on the computer in the beginning just to learn.

Start Making Money on the Internet

Now you can start making money. I’ve also given my own rating to difficulty to success and
capital required. This is as a guide for setting your 80/20 principle.

1. Create and Sell Physical Products                                          Rating 4 out of 10

    There are many things you can sell on the internet. You can setup an internet store and
    promote it to sell your products. I will show you later on how to setup an internet store but
    what we’ll concentrate on for this is the shopping cart part. CCnow is a good automatic
    shopping cart provider. You decide what to sell, you register with them free no setup costs,
    and promote your website. They will provide you a link to put on your website. If an order

   and sale is being made you will be notified via email about it. Then you wrap and ship the
   product via normal mail. Malaysian things you can sell on the internet to the world :

   1. Herbal products – Tongkat Ali cost RM 10 per bottle, you can sell it for US$10 per bottle
      inclusive of shipping;
   2. Clothing, t-shirts – Buy at pasar malam and sell free sized T-shirts;
   3. Books – sell your second hand books or buy second hand books from dealers in PJ and
      sell back to the world;
   4. Paintings;
   5. Batik;
   6. Sea shells;
   7. Stamps coins;
   8. Hardcopy manuals of your interest like this one.
   9. Many more, etc2…..

   However, a lot of effort will be required to buy the product and package it for sale.

2. Create and Sell Virtual Products                                            Rating 7 out of 10

   Virtual products you can create and sell are :

   a. Information products – Digital products such as ebooks/digital books. They are easily
       created using PDF creator and cost of producing is small. Just as was explained in
       Chapter 13, you can sell ebooks on the Internet. All you need to do is setup a website and
       upload your ebooks in PDF format there. They will need to pay you and then download
       the pdf copy of your ebook and read. They will need to download also the Acrobat
       Reader which is free on their machine to view you e-book. Go to
       to see how you can have adobe pdf creator installed into your Microsoft Word. Right
       after typing on Word, you can have it automatically saved to PDF, then upload this to
       your website and sell it.                                             Rating 7 out of 10
   b. Memberships – These are more complicated. You may be required to have certain skills
       like cgi programming to do this. Basically, you’re selling access to your information
       stored on your private area of the website. Members pay either a one time amount or
       monthly membership fee for access to your digital product.           Rating 3 out of 10

3. Promote and Become Affiliates                                              Rating 10 out of 10

   This is the easiest one and perhaps the most profitable one. You actually promote other
   people’s product or website and get paid commissions if a sale has been made. There are
   actually thousand and thousands of affiliate programs on the internet. But one of the most
   successful one must be the affiliate program. You just register and receive a
   link to promote. You can either email this link to friends or suggest a book to friends to buy
   and if they buy it, you get a commission out of it. You can also become Clickbank affiliate
   and sell hundreds more products and just receive cheques every month. Therefore, if let’s say
   you have a website that is making traffic of 1,000 hits/visitors per day. If you put a link
   somewhere down there on your affiliate products. They might end up clicking and going
   there. Let’s assume 10% decide to click and go to your affiliate’s website, ie. 100 visitors end

up going to your affiliate’s website and 10% out of that decide to buy. That 10 sales per day.
Let’s say you get US$ 5 for each sale. That’s US$50 of which is RM 190 per day. And that
just one affiliate, let’s say you advertise a number of affiliate on your website, you’ll get
more. You can put the links on the side of your website where your visitors can easily see and
click. Which affiliate you may ask me… There are hundreds out there… Using the 80/20
principle, you’ll need to choose only those that you feel you can concentrate and sell. For
example, you have a website for fishing enthusiast, you can put books that has something to
do with fishing on the side from You’ll earn commissions from sales of
those books.

    a. Where to find Affiliate Programs?

        1. Through Search Engines like or and put a
           keyword search “Affiliate programs”. Google search last night came out with
           3,410,000 searches but check the Sponsored Links. They seem to be making
           money, therefore they can afford to pay for the ads.


        2. Affiliate Directories :
               and many more….

          3. Clickbank - Go to They have thousands of affiliate
             programs you can join for free. Search their affiliate directory there. But problem
             the problem for Malaysians is you’ll need either a US address or a Singaporean
             address to start accept cheques from the USA. You can setup a mail forwarding
             address just like I explained above. It’s worth thinking about because Clickbank
             is a popular on the internet.

          4. Linkshare - Go to Read how it works on the website.
             Basically you join them for free. You promote their merchants and receive
             cheques every month. Accept cheques at your home in Malaysia.

          5. - Join the Affiliate Program today and you can
             earn commissions of up to 10% on every order! If you are creating a work from
             home website. You may want to promote their products to Americans and make
             commissions out of items sold. Accept cheques at your home in Malaysia.

          6. - Join affiliate program and earn commissions every time
             you sell memberships of this dating website.

          7. - Join the affiliate program and you will be
             able promote something like 16 different kind of dating sites. Earn commissions
             out of the site.

          8. Intercontinental Hotels Group - There’s even a hotel affiliate program where
             you promote their hotels and receive commissions when someone decides to to
             get a room with them. Go to http://

          9. One and Only Dating – Go to and learn
             how you can earn up to US$70 per member!

          10. Go to our life time membership or
              email me at … there are more there….

   These are just some. Remember the 80/20 principle and concentrate your efforts on the best.
   If you are just starting, try any first and wait for the cheque to arrive at your home.

   Fill up the joining form and put your name and Malaysian address on the affiliate program
   joining form. They send cheques (checks in US spelling!) every 2 weeks in American dollars.
   Normal air mail from USA to Malaysia is 2 weeks. Bring those American cheques to any of
   your local Malaysian banks like BCB, Maybank, Citibank, Standard Chartered, Ambank etc2
   and they’ll clear it to your bank account. They’ll charge a nominal fee for processing and
   would normally take something like 2 weeks for clearing. You have 90 days from date of the
   cheques to clear it before the cheque validity expires. So clear them as soon as possible no
   matter how small they are. I had a friend last time who earned everytime small sums of
   US$20 to US$40 and waited until the cheques expired. He lost almost RM 800 in total just
   because of procrastination and thinking that the sum was too small.

4. Selling Advertisement Space on E-zines and Website                      Rating 3 out of 10

   You maintain a newsletter website where you send newsletter on subject of interest to
   subscribers for free. At the bottom of your newsletter, you have space for advertising to sell.
   This can be a good way to promote your affiliates as well as collect money from advertisers.
   You can also sell space on your website. I will explain more on the newsletter later as a tool
   for promotion instead. There is also problems of collection money for the ads and

5. Join Online Multi Level Marketing Programs                                 Rating 9 out of 10

   You’ve been exposed to the benefits of doing network marketing and a bit on the advantages
   of internet MLM in previous Chapter 12. There are basically thousands of programs to join
   on the internet. How it works is… you join their program either on a one time fee, a monthly
   fee or sometimes even totally free. You’ll be provided with a self generating website of your
   own. The sales letter and everything else have already been automated. You just promote
   your new website to others and earn commissions for every sale you make. If your downline
   now promotes their own website and make a sale, you’ll earn commissions out of that as
   well. And this will go on until 5 levels down or whatever. You keep earning residual income
   until someone down there stops promoting or you stop promoting. So, if it’s so perfect, why
   do almost 90% of people especially here in Malaysia pay a one-time fee and get something in
   the beginning and nothing afterwards. The average time of interest is sometimes just 3
   months and they start to give up. Many times, they’ll have a lifetime membership to promote
   but simply forget about it and totally lose their password and everything. Despite that I still
   give a high rating of 7 out of 10 because of the possibilities you might achieve in internet
   MLMs. Let us analyse perhaps the 10% reasons why 90% of people drop out :
       1) The company disappears – the company simply disappear into thin air. Choose a good
       one, recommendations from friends. Look at their layouts, if they look like they are fly by
       night operations, try to avoid them.
       2) Giving up hope – people give up hope too easily. It takes time to promote.
       3) No vehicle for promotion – you base your promotions on just a few friends and stop
       there. In fact, you end up the traditional way and start calling them and seeing them face
       to face. You sometimes in fact even pay for your friends to join. You don’t use the
       internet way to promote.
       4) Simply don’t know where to begin. You’ve read so much about the internet. So you
       buy in to the MLM, thinking people will come out of the blue. In the end your website is
       left in the dust with practically no visitors. You’re left crying about the US$50 you’ve
       spent on the MLM.
       5) You rely your promotions on search engines – You submit once and that’s it. You
       don’t even know whether it’s listed or not. Everyday millions of new people are
       submitting and your listing will end up disappearing in time.
       6) You don’t communicate with your downlines or your uplines. Just like traditional
       MLMs you must also communicate and share like a team. Because everyone will benefit
       share your secrets with. Think them as your company partners. You are actually in
       partnership with them. If you are good at promoting, guide your downlines and make
       them into your super downlines.
       7) You spam! You send unsolicited emails to people you don’t know and end up getting
       your email cancelled and your MLM account cancelled.
       8) You don’t do a single thing… You take the MLM ad literally and eat, sleep, watch TV
       without doing a single thing.

       9) You don’t track what is really working and continue promoting useless strategies.
       Track your hits and joining statistics.
       10) You can’t pay your MLM the onetime fee so do your downlines.
       11) You have too many MLMs and can’t concentrate on just on as your super money

       So let’s start again and do it right this time. For those joining internet MLMs for the first
       time, there are limitless opportunities and global exposure in this thing. You might just
       get your financial freedom earlier if you concentrate your efforts in this.

       Because the author of this manual is generous, we’ll pay for your one-time setup fee for
       an MLM of our choice. We have some very kind affiliate of ours in the USA that will
       help us regarding this. Email us at to get your free
       MLM account to start promoting. This is a lifetime membership of US$50 per
       membership. Everytime a downline joins under you, you’ll get commissions of US$7 per
       member. It’s totally free, just promote your website to the world and build up your

6. Submit Surveys, Opinions, Forms….                                              Rating 6 out of 10

   There are hundreds of survey sites. Basically, you are paid just to answer surveys or fill up
   forms and paid up to US$250 per hour or RM 950 per hour. The best way of gaining access
   to the market research companies is to subscribe to a Paid Survey Database Companies. In
   exchange for a small, one-time subscription fees, they give you access to a comprehensive
   list of market research companies allowing you to tap instantly into two amazing money
   making opportunities. To learn even more about each company, see the detailed review below
   the comparison table.

      Name           # of      Money-     Surveys     Focus     Special   Free     Our      One time
                  Companies     back      Payment     Group    Bonuses    Gift?   Rating   subscription
                              Guarantee    Range     Payment                      (#/10)       fee

   Survey Scout   Over 450     90 days     $5 -       up to                        9.7       $34.95
                                           $120       $200

      Survey      Over 700     90 days     $25 -      $30 -                        9.2       $32.95
     Junction                               $99       $200

   Get Cash for   Over 200     90 days     $5 -       up to                        8.4       $37.00
     Surveys                               $150       £250

    Paid Online   Over 275     90 days     $25 -      $30 -                        7.5       $34.97
     Surveys                                $99       $200

   Paid Surveys   Over 300     90 days    $5 - $75    $50 -                        7.0       $34.95
      Online                                          $150

     Survey n     Over 200     30 days    $4 - $75    $50 -                        6.5       $29.95
      More                                            $250

     E-Submit     Over 300     90 days    $5 - $75    $50 -                        6.4       $39.95
      Factory                                         $150

   Maybe for a start choose one for example Survey Scot to test and achieve break-even first.
   Again you may need Clickbank for this, that means you may need a US address for this. Go
   to and learn more there. Or put keyword “paid survey” on Or go to for free info. You can
   also check for free info. You won’t need a US address for
   these and they are totally free.

7. Read Emails and Make Money                                                  Rating 8 out of 10

   Go to and learn how you can make money by just reading emails. Or go or you can also put keyword “paid to read
   emails” on or go to

8. Paid To Just Click                                                           Rating 8 out of 10

   Go to for your free membership. They just pay you free money to just
   click and submit things or you can also put keyword “ paid to click” on

9. Paid to Learn and Read                                                       Rating 8 out of 10

   Go to and get paid free money for learning only. Paid by the
   minutes. Collect your cheques at home…

10. Get Paid for Clickthroughs                                                  Rating 9 out of 10

   Go to You get
   paid by the click for every visitor sent. For example, if you have 1000 hits per day on your
   website and 100 visitors click on their ad / link on your website, you’ll make in the range of
   US$0.05 to US$0.15 per click. That comes to US$15 for a day or RM 57 per day.

11. Totally FREE Cash                                                          Rating 10 out of 10

   Hard to believe but true! Companies in the USA simply pay you cash for no apparent reason.
   Don’t believe me, just check it out yourself! Just do a couple of clicks a day and earn free
   cash… Just go to : You can also
   make more money by just becoming their affiliates and offer other people FREE cash…

12. Online Auctions on Ebay                                                    Rating 4 out of 10

   I know a Malaysian friend currently living in the US who makes his sole living out of just
   buying and selling on Ebay. What he basically does is he sets up an Ebay account with a
   Paypal account. Then he wanders Ebay looking for good deals in electronics such as digital
   camera, computer products like printers, radios, DVD players, video cams and the likes. He
   sets in Ebay that if there are any auctions of that kind notify him. Then, he will automically
   bid at a set price he’s targeting. If he get it at the price he wants, he will straight away before
   paying the seller via Paypal, bid it online again at a higher reserve price. For us here in
   Malaysia, we’ll face many difficulties doing this due distance of delivery will make us

    uncompetitive in the bids. But is a good way to setup your store to sell your
    physical products without the need to promo your website. If you sell, they will come. Also,
    for Malaysians, we won’t be able to register for Paypal, thus will make it difficult for us to
    trade. I am just telling some people are making money out of this.

13. Online Trade on Etrade                                                     Rating 4 out of 10

    If you have the guts and capital to try on Dow Jones or NYSE. Then you can easily do it at or You could’ve made returns something like 1000%
    returns last time on tech stocks during the tech boom. But these days would be difficult. You
    would be better off putting money on KLSE or MESDAQ.

Some of the methods above you can start straight away without setting up a website. But on a
whole, it’s better that you setup a digital store front where you can invite visitors and maintain
them and then advertise all the affiliate program, clickthrough, MLM and etc2.

Your Internet Store Front

Well it’s not really a store. You’re not exactly selling anything, it’s just a way for people to visit
your site in order you can push them somewhere else where you make the US$$$. It can be
almost like your office reception where you receive customers and suppliers. A store or a
reception needs to give an impression that you really mean business or people wouldn’t come.
However, you might just want to have something very simple so that visitors just breeze and end
up going somewhere else ie. your affiliates website. Or you can also sell your products and
services on this website. So here’s what you need to do :

Step 1 : Domain Name (Free or Paid)
This is like an address. When you ask someone to come to your office, your customers would be
impressed if you are located in Golden Triangle KL. Just the same you can actually register your
own domain name like or This would
make it easy for it to appear on search engines and easier to tell your friends or people where your
website is located. Rather than having a website with a long URL and all the weird characters like
this would difficult to remember than It sounds better too, doesn’t it? To register your domain go to :- or go to with keyword “cheap domain name
registration”. Cost you about US$ 6.95 per year or RM 26.41 per year only. Use your credit card
to register. This comes with Forwarding & Masking and 100-pk Email Forwarding. This is
important as you want it to be forwarded to a free webhosting if you’re not using paid
webhosting. And you can have 100 emails setup for your domain. That’s really cool for just RM
26! I wouldn’t suggest you use free domain but if you can’t fork out that RM26… just use your
free webhosting domain name and that should still be okay. Let’s move on to the next topic,
webhosting…. There are FREE and there are the paid ones….

Step 2 : Hosting (Free or Paid)
Now that you have an address, you need a home or a house or an office. You can either choose
free hosting where your DNS get’s forwarded to or a paid hosting.
Free Hosting
There are simply too many. The most popular being,,
and more. Again go to and put keyword “Free hosting”. You can also go to

                                                                                                   65 for guides and comparisons of all free webhosting available on the
net. So far, I’ve found like 192 free hosting services. The best one I found was
but you make your choice out of the 192.
Paid Hosting
May I suggest that if you are just starting out, why not try free hosting first. But if you want to
you can get paid hosting for US$8 per month on average. So allocate around RM 364.80 per year.
There simply too many out there, use and keyword “Webhosting” and look for the
cheapest! You can now point your domain to this webhosting. If you are actually serious about
getting traffic to your website, this is the far better option, which is to pay for your hosting.

Now that I already a web hosting whether free or paid, what’s the next thing that I should do.
Forward your domain name to your free hosting and start designing.

Step 3 : Designing your website
You don’t need to design those fancy mancy stuff you normally see on Accenture, IBM or
Microsoft website. All you need is something to tell people about stuff and to place links. My
suggestion is to use Frontpage. It’s like a word processor, just type a few words and upload to
your free webhosting server. Or if it’s too difficult than just type a paragraph or two on something
you think you want people to know on the Internet and save it as webpage rather than a word doc.
Upload this to your free hosting and see the results for yourself. There is no such thing as html
programming anymore these days. And of course you can even take a course in Frontpage if you
want to. Don’t hire people to design your website, total waste of money.

Step 4 : Designing graphics on your website
You may want to design some fancy graphics on your website. You can either use your drawing
facility on your Word tools or more advanced tools like Adobe photoshop.

Step 5 : Automations
You may want to get free automations like free forums, mailing list, stats etc2 from places like or place a keyword “free forums” or “free cgi” at to
get the latest offerings. Check out also for stuff like Guestbooks, Mini
Surveys, Hit Counters, Email Forms, Mailing Lists and so much more there…

Step 6 : Setting Up Your Emails
Now that you have your own domain name, you may want to use it to receive emails from your
customers. The 100 mail forwarding service in your DNS reg can forward all your emails to one
of your or service accounts. You can have emails like or etc2. Once you receive it at your email
accounts, you can reply and change the from email account to that dns account. If you are using
paid web hosting, a webmail tool is normally provided where you can log-in anytime to check
your emails and reply back.

Step 7 : Setting Up Your Hit Counters/Statistics Tool
This is very important because you want to know whether your promotions have succeeded or
from where the hits are coming from. There are several free counters available on the net. You
can go to Bravenet or use others. Go to and put keyword “free counter”. If you’re
using paid hosting, a tool should already be installed there. You can track where you have gone
right and where you have gone wrong with your promotion strategies.

Step 8 : Setting Up Your Autoresponders
You may want to setup autoresponders with template emails to be automatically sent to anyone
who emails to a certain email add you specify. You can go to : or Again if you have paid hosting, there are certain email accounts where
you can use as autoresponders.

Step 9 : Setting Up Mailing Lists
You may want to invite people to join your mailing list for free where you will provide free
newsletters or updates on the website. Normally, people subscribe because they want something
out of the mailing lists. So promise them something like free articles, free information, free
pictures. This way they agree to join your mailing list. Once you have this, you can announce or
promote anything to them anytime. Such a powerful tool. There are many free mailing list
providers on the Internet. One really good one is is another
really good one.

Step 10 : Deciding on Your Web Content
You will need to decide on a content that can attract as many people as you can so that you can
promote your affiliate programs. There are many topics you can actually think up. This is but just
some of the ideas I can think up…
    1. Website for teenage issues, discussions, forums
    2. Website on political issues, forums etc2.
    3. Website on a hobby like fishing
    4. Website on real estate in Klang Valley or Malaysia. Perhaps listing, articles, tactics.
    5. Website on how to make money online or how to promote on the Internet.
    6. Website on pop culture, artis, pictures etc2.
    7. Website on cars etc2…
    8. Website on food etc2…
    9. The list goes on and on and on. There can be 1001 topics you can choose from.
You will need to continuously update your website and participate or moderate forums on your
website. Make it into a hobby.

Now that you have already setup everything in place. You’ll need to advertise and bring people to
your website. This is perhaps the more important part of the equation where you can have a very
fancy website with all the tools you can have and pay but nobody is really visiting your website.
Simply, emailing a couple of your friends and doing a submission to yahoo doesn’t really help
you. You must have a very detailed game plan with review of what you have done. The statistics
or counter will gauge your internet marketing effectiveness. The first thing you’ll need to do is to
attract people to your website. So basically your main effort has to be concentrated here before
proceeding any further. So, let’s go step by step what you’ll need to do as soon as you have setup
your internet store front or your website.

Method 1 : Search Engines

This first thing you will need to do is to submit your website to the many search engines. Forget
about using the auto submission websites. Spend a couple of minutes to submit one by one to the
search engines and list those that you have successfully submitted to. The below are the ones in
terms of ranking you will need to submit to :

        1.    Yahoo                
        2.    Google               
        3.    Alta Vista           
        4.    Netscape             
        5.    Excite               
        6.    Webcrawler           
        7.    Hotbot               
        8.    Lycos                
        9.    Look Smart           
        10.   Ask Jeeves           
        11.   Open Directory Project

There are more. You can go to each of the search engines and learn how to submit and the
criterias of submission. There are many search engine strategies that you can use :

       1.     Doorway pages
              You can create doorway pages to suite each website. That means you create
              pages to fit each of the search engines. Learn more at
       2.     Smart Pages Generator
              You can improve your search engine submission by using this smart pages
              generator. Go to to learn more.
       3.     Link Popularity
              Search engines will take into account the number of pages linked to your website.
              Go to and to learn more.
              You can also get more info at or
       4.     Domain Name
              Some search engines provide good ranking for your domain name. That’s why
              it’s better to invest at getting a good domain name.
       5.     Meta Tag
              Go to other websites that are ranked good on Yahoo or Google and copy their
              meta tags and place them within your html.
       6.     Keywords and Key Phrases
              You will need to focus on certain keywords through out your website.
       7.     Keyword location and prominence
              Place the keywords on top and highlight the keywords many time in the
              beginning but do not overdue it. You can also place it at the bottom.
       8.     Automatic Submission Services
              You can try to use the auto submission programs on the net. However, for the
              important search engines as explained above please try to do them manually. For
              the others you try out all these auto submitters. There are more, just use Google
              to search them. However, these are the suggested few :-

       9.     Software Submitters
              There are may softwares out there that can also help you with the process of
              submissions. Go to Low Yat and find them. You can also try this :-

        10.     Tracking Your Ranking
                You will need to wait for sometime after submissions. You can check your
                submissions either manually or using softwares like :-
        11.     Resubmission
                To obtain good ranking you will need to submit often. However, not that often as
                some search engines may blacklist you.
        12.     Resources
                There are many resources on the net regarding this entire art of submitting to the
                search engines but here are some useful sites for tips :-
                Word Tracker - - Keyword search tool to see some
                indication of popularity of keywords you’re using.
                Search Engine Optimisation - - Tutorial on
                how to get good listing on search engines.
                Keyword Count - - This tool will analyse your
                Keyword Density Analyser -
                Mouse Click Operation -
                Any Browser –

Method 2 : Email Signatures
One of the easiest way. Whenever you forward stories, pics or anything to friends and colleagues
include an email signature of your website at the bottom of your email. You can just put some
flashy statements about your website in your email. Some emails get forwarded forever and ever
to everyone, your website might get noticed by thousands without you realizing it.

Method 3 : Email Marketing
Easiest and most effective method. Get a free email from Hotmail or Yahoo and blast your
website to people. Make sure you personalize your email to the reader, this will make it more
effective. Put headlines on the Subject that can really attract the attention of your target reader.
Do not SPAM as you might lose your ISP altogether. Target your emails to your mailing list or
friends and colleagues you know. Tell them what your website is all about. Don’t cc copy, if
possible send one by one to all your friends and to all your colleagues.

 Method 4 : Bulk Emailing/SPAMMING
This is a very effective way to promote your website and get hits instantly to your website. But
this is also a dangerous method. You might get your ISP account BLOCKED. Or your website to
suddenly disappear from the face of the earth. Let me just give you a secret method I developed
but please do this with care because it may land you into trouble. Some states make it illegal for
you to spam. First you setup free emails on hotmail etc2. Then you setup a free hosting separate
from your website that you want to promote. Make a link for them to click on the free hosting to
go to your website. Then, collect emails from websites, chat sites, forums etc2 and send them an
email inviting them to that website. A free email can normally send a maximum number of email,
so you can create many emails just for this reason alone. You can also create many free hosting
that lead to your site. Let’s say you emailed 1000 people a day. Most likely, 30% will respond!
Some will manage to finally arrive at your website. You’ve actually made some hits there.

Method 5 : Banner Advertising
Creating banners will attract people to come to your website. Create the typical 486 x 60 banner
and promote this banner everywhere. You can place them on your joint venture websites, on
linkexchanges etc2. You can also take part in banner exchange programs that promote your

banner on other people’s website while promoting theirs on yours.                     Go   to    :- or or

 Method 6 : FFA (Free For All sites)
You can post your ads for free. There are thousands of FFA on the web. You can try to submit to all these FFAs.

Method 7 : Classified Ads
Go to google and put a search on classified ads, if you have all the time in the world. Try to
submit to every single classifieds you can get. You can also go to to do
bulk submitting.

Method 8 : Advertise on E-zines
You can spend some money and advertise on e-zines. You should target e-zines that are close to
your subject market and spend money there. Here’s one good example :- http://www.ezine-

Method 9 : Renting Opt-In Email List
There are companies that rent out list of email addresses for your ad campaign. Renting these
may cost you some money plus you will need to put a SPAM disclaimer at the bottom of your
email. Try or

Method 10 : Newsgroups
One of the oldest method on the internet. There are many subject groups on the newsgroup.
Again, if you wrongly post to the wrong newsgroup, you might receive consequences like your
ISP might get blacklisted etc2. You can try or go to Google and put a
keyword search “newsgroups”.

Method 11 : Safelist
You join these safelist in order to receive other people’s email and for you to send your email to
other people. Therefore, both will be able to have a look at other people’s email. Try a few at or

Method 12 : Linking Strategies
This is where you place your link on other people’s website whereas they place their’s on yours.
Go to Google and search a keyword and try to communicate with the webmasters for a link

Method 13 : Web Rings
Go to and try to join into the rings of similar websites with similar

Method 14 : Setup Affiliate programs
One of the simplest way is to go to and setup your own affiliate program.

Method 15 : IRC Strategies
You can promote your website on IRC or chat rooms. One good method is to setup robots on IRC
channels to automatically promote your website. If the channel is packed, you’ll get hundred

instantly to your website. Or maybe create a channel of your own and invite people to join that
channel and visit your website as well. Go to and learn more about this.

Method 15 : Egroups
You can search egroups and join as a member and promote here. Also, you can also setup your
own egroups and create a following to your egroup. Go to for more

Method 16 : Forums and guestbooks
Simply join any forum and promote there or leave messages on other people’s guestbooks to visit
your site.

Method 17 : ICQ or MSN/Yahoo Messenger
These days you can simply promote to others from your ICQ station or your MSN/Yahoo
Messenger. A very good way indeed.

Method 18 : Advertise in the papers
You can even put tiny classifieds in the papers to promote your website.

Method 19 : SMS
Newest way is to SMS people to visit your website.

Method 20 : Fax
One other good way is to fax people your sales letter promoting your website.

Method 21 : Flyers
Oldest method is to simply photocopy thousands of flyers and pass all around.

Method 22 : AD Google
One of newest and best way is to bring traffic to your site is to pay Google for everytime
someone clicks your ad that appears on their search engine based on certain keywords. A very
effective way indeed but you’ll need to put some capital for this.

There are simply 1001 ways promoting on the net, the above are just some and put very general
for you to start. Now that you’ve seen everything let’s summarize everything on what needs to be
done to make money in 90 days. As explained earlier there are many resources available on the
net. Go to googles and place keyword “internet marketing strategies”, there are many free
resources available on the net.

If you look at Figure 3.4, in summary these are the ways to make money on the web. Some you
need to do internet marketing, some you don’t.

No.   Money Making Methods                 What needs to be done?         Internet Marketing Method
1.    Create and Sell Physical Products    Setup Website                  All Methods explained.
2.    Create and Sell Virtual Products     Setup Website                  All Methods explained.
3.    Promote and Become Affiliates        Setup Website
                                           Promote Directly               All Methods explained.
4.    Selling Advertisement Space on E-
      zines and Website                    Setup Website                  All Methods explained.
                                           Setup Website
5.    Join Online Multi Level Marketing    Promote Directly               All Methods explained.
      Programs                             Traditional Methods
6.    Submit Surveys, Opinions, Forms….    Spend Time Fill Up Forms       NIL
7.    Read Emails and Make Money           Spend Time Reading Email       NIL
8.    Paid To Just Click                   Spend Time On Clicks           NIL
9.    Paid to Learn and Read               Spend Time To Learn            NIL
                                           Setup Website
10.   Get Paid for Clickthroughs           Promote Directly               All Methods explained.
11.   Totally FREE Cash                    Spend Time Fill Up Forms       NIL
                                           Spend Time To Monitor
12.   Online Auctions on Ebay              Use Capital                    NIL
                                           Spend Time To Monitor
13.   Online Trade on Etrade               Use Large Capital              NIL


Now, that you’ve seen the summary above. You must be wondering, where to start and how to
start making money instantly and with more structure. I will give you a 90 days guide on what to
exactly do to start making money from day to day. All this will assume you have a good
computer, Streamyx DSL or Broadband Internet and a credit card. Ofcourse you’ll need some
capital to start with. MMM stands for Money Making Method while IMM stands for Internet
Marketing Method. I call it a war plan because you’ll need to treat this like your private war with
strategies and full concentration.


NO.   DAY                                          ACTIONS

1.    Day One (5 Hours Required)                   1.   Set earning target of RM 5,000 per month.
                                                   2.   Register Free Emails. (Hotmail, Yahoo)
                                                   3.   Initiate MMM 11 to get Totally FREE Cash.
                                                   4.   Initiate MMM 7 to make money from reading emails.
                                                   5.   Initiate MMM 8 to make money from clicks.
                                                   6.   Initiate MMM 9 to make money from learning.
                                                   7.   Register your domain for USD 6.99 with credit card.

2.    Day Two – Day Five (3 hours daily)           1.   Monitor progress of activities above.
                                                   2.   Register your FREE Internet MLM account and proceed with
                                                        all IMM with first priority in emailing your friends. Your target
                                                        in 10 days is to get 2 people in at all cost!

3.    Day Six ( 5 hours)                           1.   Check status of money from MMM above.
                                                   2.   Check status of domain if yes proceed below.
                                                   3.   Setup Free Hosting and connect to domain above.

                                           4.   Monitor progress of MMM 7, 8, 9, 11
                                           5.   Monitor and continue to promote all out on Internet MLM.
4.    Day Seven – Day 15 (2 hours daily)   1.   Monitor progress of MMM 7, 8, 9, 11
                                           2.   Monitor and continue to promote all out on Internet MLM.
                                           3.   Decide on content of website and design and upload.
5.    Day 16 (2 hours daily)               1.   Website design complete and uploaded.
                                           2.   Initiate MMM, by joining as many affiliates as you can for
                                                the next 5 days.
                                           3.   Monitor progress of MMM 7, 8, 9, 11
                                           4.   Monitor and continue to promote all out on Internet MLM,
                                                expand number of downlines. Start communicating with
                                                downlines in chatrooms and educate.
6.    Day 21(2 hours daily)                1.    Place affiliate links strategically on website.
                                           2.    Initiate all IMM to promo directly affiliates.
                                           3.    Initiate all out strike using IMM to bring hits to website.
                                           4.    Place Internet MLM link on website as well.
                                           5.    Monitor progress of MMM 7, 8, 9, 11
7.    Day 30 (2 hours daily)               1.     Check and analyze traffic and IMM success by examining
                                           2.     Check status of cheques for MMM 7, 8, 9, 11.
                                           3.     Check status of cheques for Internet MLM.
                                           4.     Continue with efforts of MMM 7, 8, 9, 11.
                                           5.     Continue efforts of Internet MLM and help to promo
                                                  downlines websites for downline to also make money.
8.    Day 44 (2 hours daily)               1.   Monitor payment amount to be received via cheques.
                                           2.   Check mail for cheques and receive first US dollars cheques
                                                in the main.
                                           3.   Cash in US dollars cheque at local bank URGENTLY.
                                           4.   Continue with efforts of MMM 7, 8, 9, 11.
                                           5.   Continue efforts of Internet MLM and help to promo
                                                downlines and their downlines websites for downlines to
                                                also make money. Start building big empire. Create a team
                                                by setting up e-groups for discussion and strategy for attack.
                                                Each team in your empire is entrusted to at least get 2
                                           6.   Expand IMM efforts and increase website traffic while
                                                retaining current visitors.
                                           7.   Get visitors into FREE newsletter.
9.    Day 45 – 60 (2 hours daily)          1.   Continue with efforts of MMM 7, 8, 9, 11.
                                           2.   Continue efforts of Internet MLM and help to promo
                                                downlines and their downlines websites for downlines to
                                                also make money. Start building big empire. Create a team
                                                by setting up e-groups for discussion and strategy for attack.
                                                Each team in your empire is entrusted to at least get 2
                                           3.   Expand IMM efforts and increase website traffic while
                                                retaining current visitors.
                                           4.   Increase number of affiliates.
10.   Day 61 – 75 (2 hours daily)          1.   Monitor payment amount to be received via cheques.
                                           2.   Check mail for cheques and receive first US dollars cheques
                                                in the main.
                                           3.   Cash in US dollars cheque at local bank URGENTLY.
                                           4.   Continue of efforts of all above.
                                           5.   Expand to clickbank by getting mailbox in Singapore and
                                                forward cheques to Malaysia.
11.   Day 76 – Day 80 (3 hours daily)      1.   Expand promotion on clickbank affiliates.

                                           2.   Continue and expand all previous efforts as above.
                                           3.   Call or chat with all your Internet MLM downlines and
                                                expand empire. Call for meetings or join chat rooms
                                                together and discuss openly on strategies for the benefit of
12.   Day 80 – Day 90 (3 hours daily)      1.   Ready to receive third and biggest cheques.
                                           2.   Cash in if received.
                                           3.   Upgrade PC.
                                           4.   Buy new PC table, lamp and all equipments.
                                           5.   Review three months efforts and improve and plan forward
                                                strategy for the next 6 months.


After 90 days, if you follow exactly the prescribed “war plan” above, you shouldn’t have any
problems in achieving your target of RM 5,000 per month. Make this a target to achieve and
don’t leave your PC until you’re sure that you can and will achieve this. Make proper planning
and strategize all your marketing and Internet time efforts.

If you’re slower than the above, take your time more on learnings and readings on the Internet or
take outside computer and internet courses before embarking on this 90 day WAR!

                      CHAPTER 10
     Let’s Set Your Overall Financial Freedom Strategy

Well, you’ve heard just a few income sources that I can explain in this Manual. However, there
are simply unlimited numbers of income sources I had not purposely put into this manual due to
the criticality of focusing on certain income sources first. I will just summarize the many other
ways to expand your income source that you may also want to investigate at a later date. But as
explained in the 80/20 we’ll target the ones explained in this manual. But here’s the some of
businesses/things you can do.

    1.    Network Marketing - Amway, CNI, Shaklee & more.
    2.    Life Insurance and Unit Trust Agent.
    3.    Selling Information from Classifieds.
    4.    Teaching part time English.
    5.    Giving Seminars on how to make money.
    6.    Abstracting Service
    7.    Advertising Agency
    8.    Association Management Services
    9.    Business Broker
    10.   Business Plan Writer/Packager
    11.   Buyer’s Information Service
    12.   Career Counselor
    13.   Child Care Referral Service
    14.   Child Day Care
    15.   etc2….

There are basically 100 more. If I were to place them here it would take another 30 pages just to
explain what you can do. But look at it this way. If you’re creative enough money will simply
come to your way.

Well enough on that. Now you have multiple income streams, multiple tasks, multiple goals and
targets and multiple head aches! How in the world are you going to balance everything. Let me
give you some tips on how to balance everything so that you won’t drown with all these tasks that
awaits you. In surviving this day and age, different set of strategies must be undertaken from the
ones set by our grandfathers and fathers. This is the strategy that you need to follow :-

Strategy 1 : Time is Money
Every minute counts. Time you wasted watching TV, can be used to promote your website and
earn your first buck on the net. If you’re late by one month, you might lose an entire month of
dividends in unit trusts.

Strategy 2 : Critical Task
As explained earlier in 80/20 rule, you’ll need to concentrate on a few critical tasks that will make
you money than everything that makes a few.

Strategy 3 : Procrastinate on 80 percent of your activities
Procrastinate on the critical 20% while putting aside the 80% for awhile.

Strategy 4 : Don’t Use Your To-Do List
Settle your 20% first before proceeding to the next 80%.

Strategy 5 : Reward Yourself for Doing the Right Things
After you’ve accomplished everything, reward yourself with something in order to motivate you
achieve the goal to complete your task.

Strategy 6 : Do your feared most in To-Do List
Do the hardest and feared most in your to-do list before settling the easier ones later.

Strategy 7 : Planning is Everything
Before the start of the day, plan everything first.

Strategy 8 : Exercise
With the amount of task these days, you’ll need this.

Strategy 9 : Layering
Make use of the time, for example playing an audiocassette in the car while to work.

Strategy 10 : Set Specific Goals
Set a clear long term goal with short term goals to achieve.

Strategy 11 : One at a time
Put focus on each task at the moment and complete it first before proceeding to the next task.

Strategy 12 : Delegate
Try to let others do it for you and not doing all the nitty gritty things yourself.

Strategy 13 : Do It Now
Just do it know. Complete everything. Procrastination is the number one killer of any effort.

Strategy 14 : Reflect on the day
Reflect on what you’ve achieved in a day whether it leads to your financial freedom or not.

Strategy 15 : Handle paper only once
Do it, file it or throw it away.

Strategy 16 : Balance everything
In the end, what really matters, your life, health, family. Take time to reflect and set a goal to
achieve what really matters most in your life.

With that I bid adieu and good luck with your financial freedom in 3 years time. If you follow
everything that I’ve showed you in this manual, you should have no problems achieving your


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