Thursday, October 30, 2014

1MDB fight back oh 1MDB fight back

They should do it as early as possible for damage control. 

Our MB Tony Pua should address their claim. Let's wait and see.

1MDB, a strategic development company wholly-owned by the Government of Malaysia, clears the air in a press statement issued on Thursday, Oct 30:

Over the past week, there has been considerable speculation about various elements of 1MDB’s business. Whilst the majority of issues have previously been raised and subsequently addressed by the company, we take the allegations very seriously. As such, we wish to take this opportunity to respond to these unsubstantiated claims, with the intention of presenting the other side of the story and allowing readers to develop their own informed views about 1MDB. 

Bond / Debt Issuances

Concerns have been raised about the 5.75% interest rate assigned to a RM5.0 billion Islamic bond that was issued by 1MDB in 2009, with suggestions that this was a bond with a particularly high interest rate. As a comparison, it has been noted that another government-linked company Petronas paid an interest rate of 3.60% on a bond at the same time.

This is an unfair comparison that does not take into account a number of important factors.

When subscribing to a bond, lenders take on a certain degree of risk.  The longer the tenure, the higher the risk for the bondholder.  As such, bonds that have a longer maturity period typically have a higher interest rate.

As far as we are aware, the only Petronas-related bond issued in 2009 that carried a coupon rate of 3.6% was for a RM100 million bond with the tenure of only three years.

Given the significant difference between the maturity periods, it should not be surprising that the bond issued by 1MDB had a higher interest rate.

More broadly, it is important to note that the bond issued by 1MDB in 2009 was the first Malaysian bond with a 30-year tenure, and the first Islamic bond to be issued with a maturity period of that length.

Given the economic climate of the time, the fact that 1MDB successfully managed to raise this amount of capital reflects the support, goodwill and confidence placed in the company.

We have also noted with concern unsubstantiated speculation that a portion of this interest rate has been paid to ‘middle-men’ as a benefit payment of sorts. This is a serious allegation.  We wish to make clear in unequivocal terms that the entirety of the 5.75% annual interest rate is paid to our bondholders, which include some of Malaysia’s leading institutions, twice a year in accordance with the payment schedule. To suggest otherwise or insinuate that a portion of this amount is being paid to middlemen is factually incorrect.

Further to this, concerns have also been raised about the commission and fees incurred by 1MDB for two additional debt issuances in 2012 and 2013, for US$1.75 billion and US$3.0 billion respectively.

Both these bonds were issued at a discount typical of most bond offerings.  Any difference between par value (issued value) and the net proceeds of a bond comprises not only fees and other expenses but also its effective yield, which takes into account the discount and the remaining tenure of the bond.

We would like to make clear that the bulk of the difference between the bonds’ par value and the net proceeds are attributed to the bonds being issued at a discount. This decision is to ensure the successful completion of the fundraising in view of internal and external factors of the market, the speed to complete the offering and the scale of the underwriting.

Both debt issuances were fully underwritten by Goldman Sachs which is a leading global investment bank.  It is one of a handful of banks with the ability to underwrite debt issuances of this size and scale. The bonds which are issued at a discount to its par value ensures the timely and successful completion of our debt issuances, in what was still a challenging time for the global economy.

With respect to the aforementioned transactions, we have noted with concern the insinuation that Goldman Sachs may have made payments to third parties, an allegation that we deny in unequivocal terms. Goldman Sachs has publicly stated: “Other than legal and accounting firms providing professional services, no fees or commissions were paid by 1MDB or Goldman Sachs to external third parties in connection with these transactions, nor have we ever been asked by 1MDB or others to pay such fees or commissions.”
Debt Levels
Like any major company, 1MDB has raised capital on the international debt markets to finance specific projects, the scale of which has required us to do so. All of our debt is backed by solid assets, and the total value of our assets (RM44.67 billion as at the financial year end of March 2013), comfortably exceeds the value of our total debts (RM37 billion for the same period). 

It is also important to note that we have never missed a payment schedule, nor do we intend to do so. Our consistent ability to raise funds on the international markets, and from quality investors, reflects the confidence they place in us. The listing of our energy business is one of a series of exercises that we intend to carry out to deleverage our balance sheet.

Furthermore, we are developing our real estate business with projects such as TRX and Bandar Malaysia.  Over the past year, we have entered into a number of agreements with leading companies and institutions from around the world such as international property and infrastructure group Lend Lease.  All these will lead to an in-flow of capital into Malaysia. 

As we continue to enhance the value of our real estate assets, allowing us to further monetise, with the funds generated being used to drive future growth as well as reduce our debt levels.

Overpaying for Assets

In addition to claims centred around 1MDB’s debt issuances, allegations regarding the amounts paid by 1MDB for its energy and real estate assets have been raised again as well.

Like any other company, we only acquire assets when we are convinced that they represent compelling value for our business. In line with the Government’s strategic aim of ensuring Malaysia’s energy security, we have acquired a number of energy assets since 2012. These acquisitions have allowed us to diversify our fuel mix and country risks, as well as benefit from healthy cash flows and the expertise of their excellent management teams.
The claims relating to the amounts we paid for our energy assets revolve around values that were attributed to the assets at the time they were acquired and on the basis of certain assumptions made by external parties. However, we take a long term view and consider broader synergies for the group, as well as the social and economic impact on the country, when we evaluate assets and forecast economic returns. As such, we believe that the value we paid for these assets - which may have involved a premium in certain instances, as is common when acquiring another business - is commensurate with their existing and future potential. 
1MDB has also been subjected to claims that it overpaid for land parcels in Penang. The land in question is located in Air Itam, a much sought-after area where property prices have seen a substantial increase in recent years.

The size of the land acquired will allow us to build close to 10,000 affordable homes, and we intend to use the remaining parcel of land – which would be of a considerable size – for other development purposes from which we would expect to generate significant value. As such, we are confident of adding to the overall value of the land, and believe that the price we paid is commensurate with this.

This is reflected in the prices that other developers have paid to acquire land in neighbouring areas which, at over RM200 per sq ft, is substantially higher than what we paid. We understand that in one instance, dating back to 2013, approximately 9.8 hectares in Air Itam were purchased for RM267.4 million, about RM251 per sq ft, for a mixed-use development.

Preferential Treatment on Tenders for Power Projects

Our scale as Malaysia’s second largest independent power producer, successful track record in the sector, and experienced management team mean that we are a competitive player in any tender process. Earlier this year, a joint consortium consisting of 1MDB and Mitsui & Co participated in an open and competitive tender exercise for a 2000MW coal-fired power plant known as Project 3B. Following due consideration of the various bids, the Energy Commission announced that our consortium had been chosen as the preferred bidder.

Subsequently, there have been suggestions that 1MDB received preferential treatment, and that our joint bid was not as good as that submitted by other participants in the process. Any award is based on a number of considerations to ensure secure and cost-effective energy supplies to consumers, for instance: the technical standards of the bid, the track record of the company, the bidding price, the urgency of the project and energy security and the whole systems cost of the bid.

As the Energy Commission announced in a public statement, the 1MDB-Mitsui Consortium has won the bidding exercise “in a fair and square manner with a well-proven technology that would enhance security of supply expected of a 2000MW coal-fired power plant operating in a grid system of our size”.

It is also worth noting that 1MDB was not successful in other tenders we have participated in, namely the gas-fired Prai plant bid and the 1000MW coal-fired power plant.  Both projects went to TNB, whom the authorities view as offering a better package, despite 1MDB offering the lowest bid price for the Prai bid. 

Project financing for 3B

1MDB would like to state that its consortium paid less than RM8 million to assemble and submit our bid for Project 3B. This is about half the amount a business daily claimed other bidders spent for this stage.

To our knowledge, no other bidder has come on record to reveal this information because this is confidential business information. We are making this known because we want to put to rest these baseless insinuations.

1MDB did not spend US$100million to win Project 3B. 

Upon award, the 1MDB-Mitsui Consortium moved to the next development stage to bring the plant into operation, expected in 2018. This development period thus makes up the bulk of the development costs.

Development cost or development fee is what is paid to the project sponsor for the development work done by the sponsor to bring the project to realization, from the bid process all the way through to the plant operation. It is not a reimbursement cost.

For project financing in the power industry, development costs typically run to between 5% and 8%. Our development costs – which are inclusive of any development fees incurred by the project partners, 1MDB and Mitsui – are 5.5% of the project cost, which is at the lower end of the scale.

1MDB is confident of our international-style project financing done in close partnership with our international partner Mitsui, one of the largest general trading companies in Japan. Project financing of this kind where equity is back-ended, is a first for Malaysia but common for large international projects.

It will help improve the project sponsor’s equity return, due to the effect of time value of money, as the payment is made upfront rather than from the operational cash flow of the project.  The amount is negotiated and subject to lenders’ approval.

Furthermore, any accusations that our 3B sukuk bondholders will bear any hidden risks are completely untrue and irresponsible. Our bond exercise comes with a bank guarantee which ensures the promoters’ commitment on the injection of equity. The security of cash flow and returns to bondholders is assured.

QE Tapering oh QE Tapering

Fed Completes QE Tapering
  • The FOMC decided to conclude its remaining asset purchase of US$15bn/mth under QE3. Meanwhile, the FOMC reiterated that current low Fed Fund Rate will be maintained for a considerable time.
  • Comparing the current FOMC statement with the one issued last month, we sense that the Fed has turned slightly hawkish and is unfazed by the recent volatility in the financial markets.
  • The FOMC brushed off market concerns about (i) disinflation risk due to lower energy prices and (ii) negative spillovers from weakness in other major economies (i.e. Euro area & China).
  • We expect the US economy to grow near its 3% par level in 2015, with a pick-up in consumer spending on the back of further labour market improvement and higher purchasing power (lower energy price & strong US$).
  • We expect the Fed to stick to its rate hike plan, with first rise in Jul-2015.
  • We expect US$ to maintain its strength into 2015, which will continue to pressure other major and EM currencies as well as global commodity pricing. In this regard, we expect MYR to remain weak, ranging RM3.25-3.30/US$ in 4Q14 and RM3.25-3.35/US$ in 2015. More moderate growth outlook, smaller current account surplus and a pause in the OPR will also curb upside of MYR.
  • source: HLIB
REUTERS: Saying QE is over is a bit like saying a flood is over when the water, up to your chin, stops rising.
The Fed which, as expected, pulled the trigger on the final taper on Wednesday, still controls a balance sheet it plans to keep steady at US$4.5tril.
And more to the point, though the statement included a bit of upbeat talk about employment, we are now looking at forward guidance of a wait of a "considerable time" before interest rates might actually rise.
There can be little doubt that the US economy is now receiving very intensive support from monetary policy, both through the balance sheet, which remains massive, and interest rates, which remain pinned near the zero lower bound.
If we take the end of the taper as predetermined, and think of how shocking it would have been had they not done this, then really all we are dealing with here is changes in tone and emphasis from the Fed.
To be sure, the statement is slightly more upbeat, both in terms of the labour market and by minimising fear that inflation will remain below the 2% target. There really isn't all that much to go on here, and we are going to remain in this situation conceivably for many months, trading off on changes in forward guidance.
The Fed had it both ways in the statement: "In determining how long to maintain this target range, the Committee will assess progress, both realised and expected, towards its objectives of maximum employment and 2% inflation," the FOMC said in explaining the decision.
Totally unsurprisingly, this cuts both ways in that they may move more quickly or slowly depending on what they experience.
Remember, forward guidance is a promise, but the Janet Yellen who makes the promise is not the same Janet Yellen who will be called on to deliver on it. Besides higher volatility, one worry is that forward guidance loses its efficacy the longer it gets used.
I think it’s fair to expect turbulence under these circumstances, almost regardless of what we see by way of economic data, good or bad. The market is going to have a hard time digesting the news of the next six months and should see more sharp moves.
That brings us to Alan Greenspan, who somehow had the temerity to weigh in on Fed Day with a warning about the troubled times to come.
Hearing from Alan Greenspan on Fed Day, the man who bears as much responsibility as anyone for our current plight, is about as welcome as a Public Service Announcement from the Pied Piper on Mother's Day.
Greenspan not only said that "Effective demand is dead in the water," he went on to point out that the bond-buying programme boosted asset prices but did little to boost the real economy. The former Fed chairman contrasted the "terrific success" of bond-buying in raising asset prices with the way in which it "has not worked" for the real economy.
It is a sad and ironic day when I find myself in full agreement with Alan Greenspan.
It is going to be fearsomely difficult to raise interest rates, much less start to divest the assets on the balance sheet, without disrupting financial markets. Markets will become hypersensitive to Fed tea-leaf reading.
That may put the Fed in a tricky situation in regards to the euro zone, which may well be listing into yet another recession.
All of this actually argues for a longer wait for higher rates, which, given the examples in Japan and elsewhere, should not be surprising. Monetary policy in all its various forms only works a bit during these sorts of balance-sheet recessions.
A rate rise may come next June, or in September or later but the volatility will probably arrive well before the actual hike. – Reuter 

Wednesday, October 29, 2014

Gas Malaysia, Gamuda, MMC Corp, WCT Holdings, HeiTech Padu, George Kent

Salary no increment, now GAS increase follow by petrol. I bought gas per tank at RM 30 for 14kg, now how much???

By Sulhi Azman / TheEdge   | October 29, 2014 : 9:24 PM MYT   

KUALA LUMPUR (Oct 29): Based on news flow and corporate announcements today, companies that may be in focus tomorrow (Thursday, Oct 30) could include the following: Gas Malaysia Bhd ( Financial Dashboard), Gamuda Bhd ( Financial Dashboard), MMC Corp Bhd ( Financial Dashboard), WCT Holdings, HeiTech Padu Bhd ( Financial Dashboard) and George Kent (M) Bhd ( Financial Dashboard).

Companies which consume plenty of natural gas, for instance the steel makers and rubber glove manufacturers, may be in the limelight after the government’s move to raise natural gas prices.  

Gas Malaysia Bhd announced it has raised the natural gas selling price for non-power sector in Peninsular Malaysia, which resulted from the tariff revision made by the government.

In a filing with Bursa Malaysia today, Gas Malaysia highlighted that the purchase price of gas procured from Petroliam Nasional Bhd (Petronas) will be “accordingly adjusted upwards”.

“The purchase price shall take into account the blended price of domestic natural gas, as well as the liquefied natural gas (LNG) price, basing on the volume to be purchased by Gas Malaysia.   

“Gas Malaysia wishes to emphasise that there will be no change to the selling prices for customers under category A. Category A customers represent the residential segment,” it said in a statement.

Gas Malaysia added the tariff increase does not apply to liquefied petroleum gas (LPG).

Gamuda Bhd and MMC Corp Bhd have been appointed as the project delivery partner (PDP) for the Klang Valley Mass Rapid Transit Line 2 project, which will run from Sungai Buloh to Putrajaya via Serdang.

The MRT Line2 is estimated to cost about RM23 billion.

In two separate Bursa Malaysia filings this evening, Gamuda and MMC said they had received a letter from Mass Rapid Transit Corporation Sdn Bhd, appointing a joint venture company to be established between MMC and Gamuda.

“The terms and conditions of the PDP’s appointment will be contained in a project delivery partner agreement, to be negotiated and agreed," both filings said.

MMC Corp closed one sen higher at RM2.52 with a market capitalisation of RM7.67 billion, while Gamuda closed one sen lower to RM4.99, giving it a market capitalization of RM11.60 billion.

WCT Holdings Bhd ( Financial Dashboard) has bagged a shopping complex construction job along Jalan Cochrane in Kuala Lumpur, worth RM651.62 million, from Boustead Ikano Sdn Bhd.

In a filing with Bursa Malaysia today, WCT said its wholly-owned subsidiary WCT Bhd had accepted a Letter of Acceptance dated Oct 27 from Boustead Ikano, for the contract.

Under the contract, the construction and property development company will undertake all the works relating to the construction of a major retail shopping centre.

The works is expected to be completed in second half of 2016.

WCT said the contract is expected to contribute positively to the group's future earnings and net assets.

Its share price closed one sen lower at RM2.10, with 289,700 shares traded, translating into a market capitalization of RM2.29 billion.

HeiTech Padu Bhd announced it has been awarded a government contract to maintain the Road Transport Department's wide area network connectivity and services, worth RM10.3 million, bringing its total contract value clinched this year to RM292.03 million.

In an announcement to Bursa, HeiTech said the one-year contract — the sixth job it has bagged this year so far — will end on July 25, 2015.

“Any further renewal or extension of the duration is at the discretion of the government," it said in a filing to Bursa Malaysia.

On financial implications, HeiTech said the contract is expected to contribute positively to its future earnings.

HeiTech Padu closed at 65 sen today, giving it a market capitalization of RM65.8 million.

George Kent (M) Bhd, a water meter manufacturer and a construction outfit, has received a Letter of Award (LOA) from the Ministry of Health (MOH) to design and build Phase Two of Kuala Lipis Hospital (Lipis Two), for a contract sum of RM57 million.

“The project is to be completed over a period of 30 months and is due for completion in April 2017,” said George Kent in an announcement to Bursa Malaysia.

“This is in line with the group’s long term strategy to actively bid for current and up-coming infrastructure and engineering related projects,” it added.

Lipis Two is the second MOH project awarded to George Kent, and is an extension of Phase One that was completed in 2012, worth RM97.75 million.

George Kent also expects the contract to positively contribute to its earnings.

George Kent closed unchanged at RM1.48 today with 284,500 shares transacted, giving it a market capitalization of RM444.61 million.

Monday, October 27, 2014

16 Rich Habits oh 16 Rich Habits

I must try to build up this 16 Rich HABITS in order to be rich.

16 Rich Habits

Your autopilot mode can make you wealthy or poor.
Intelligence, talent and charm are great, but more often than not these aren’t what separate the wealthiest among us from the poorest.
Instead, the differences are in our daily habits. Do you realize that these subconscious, second-nature activities make up 40 percent of our waking hours? That means that two out of every five minutes, all day and every day, we operate on autopilot. It’s true: Habits are neural pathways stored in the basal ganglia, a golf ball-size mass of tissue right in the center of our brains, in the limbic system.
This neural fast lane is meant to save the brain energy: When a habit is formed and stored in this region, the parts of the brain involved in deeper decision-making cease to fully participate in the activity. However, we all know there are good habits and bad habits.
I spent years studying the difference between the habits of our country’s rich and poor, questioning hundreds of individuals. On the rich side, these were people with annual gross income north of $160,000 and net liquid assets of $3.2 million or more. I defined the lesser-off as those with gross income of $35,000 or less and no more than $5,000 in liquid assets. When I was done, I analyzed the results of my research and boiled down the responses to create a picture of what allows the wealthy to prosper where others do not. My ensuing book became a sort of instruction manual for how to become wealthy.
The gulf between Rich Habits and Poverty Habits is staggering. If you’re well off already, chances are you already adhere to most of these Rich Habits. Integrating the ones you’ve neglected will push you further. But be assured: If you’re doing fine now without minding these principles, it’ll catch up to you.
Some of the differences between rich and poor are obvious, while others are a little more surprising. Here are the most important Rich Habits you can take up to reach and maintain your wealth potential.
1. Live within your means.
Wealthy people avoid overspending by paying their future selves first. They save 20 percent of their net income and live on the remaining 80 percent.
Among those who are struggling financially, almost all are living above their means. They spend more than they earn, and their debt is overwhelming them. If you want to end your financial struggles, you need to make a habit of saving and budgeting what you spend. Here are some sensible ways to budget your monthly net pay:
▲Spend no more than 25 percent on housing, no matter if you own or rent.
▲Spend no more than 15 percent on food.
▲Limit entertainment—bars, movies, miniature golf, whatever—to no more than 10  percent of your spending. Vacations should account for no more than 5 percent of your annual net pay.
▲Spend no more than 5 percent on auto loans, and never lease. Ninety-four percent of the wealthy buy instead of leasing. These folks keep their cars until the wheels fall off, taking great care along the way so that they save money in the long run.
▲Stay away from accumulating credit card debt. If you are doing this, it’s a clear sign that you need to cut back somewhere.
▲ Think of savings and investments as two completely different things. You should never lose money on your savings. Try to stash six months of living expenses in an emergency fund in case you lose your job or your business goes belly-up.
▲ Contribute as much as you can afford to a retirement plan. If you work for a company that matches your contributions up to a certain percentage, great. Always take that free money when you can get it.

2. Don’t gamble.
Talk about a sucker bet: Every week, 77 percent of those who struggle financially play the lottery. Hardly anyone who is wealthy plays the numbers. Wealthy people do not rely on random good luck for their wealth. They create their own good luck. If you still want to bet after knowing the risk, use money from your entertainment budget.

3. Read every day.
Reading information that will increase your knowledge about your business or career will make you more valuable to colleagues, customers or clients. Among wealthy people, 88 percent read 30 minutes or more every day. Just as important, they make good use of their reading time:
▲ 63 percent listen to audiobooks during their commute.
▲ 79 percent read educational career-related material.
▲ 55 percent read for personal development.
▲ 58 percent read biographies of successful people.
▲ 94 percent read current events.
▲ 51 percent read about history.
▲ 11 percent—only 11 percent—read purely for entertainment purposes.

The reason successful people read is to improve themselves. This separates them from the competition. By increasing their knowledge, they are able to see more opportunities, which translate into more money. Comparatively speaking, only one in 50 of those struggling financially engages in this daily self-improvement reading, and as a result the poor don’t grow professionally and are among the first to be fired or downsized.

4. Forget the boob tube and spend less time surfing the Internet.
How much of your valuable time do you lose parked in front of a screen? Two-thirds of wealthy people watch less than an hour of TV a day and almost that many—63  percent—spend less than an hour a day on the Internet unless it is job-related.
Instead, these successful people use their free time engaged in personal development, networking, volunteering, working side jobs or side businesses, or pursuing some goal that will lead to rewards down the road. But 77 percent of those struggling financially spend an hour or more a day watching TV, and 74 percent spend an hour or more a day using the Internet recreationally.

5. Control your emotions.
Not every thought needs to come out of your mouth. Not every emotion needs to be expressed. When you say whatever is on your mind, you risk hurting others. Loose lips are a habit for 69 percent of those who struggle financially. Conversely, 94 percent of wealthy people filter their emotions. They understand that letting emotions control them can destroy relationships at work and at home. Wait to say what’s on your mind until you’re calm and have had time to look at the situation objectively.
Fear is perhaps the most important negative emotion to control. Any change, even positive changes such as marriage or a promotion, can prompt feelings of fear. Wealthy people have conditioned their minds to overcome these thoughts, while those who struggle financially give in to fear and allow it to hold them back.
Whether you fear change, making mistakes, taking risks or simply failure, conquering these emotions is about leaning in just a little until you build up confidence. It’s amazing how much confidence helps.

6. Network and volunteer regularly.
You’ll build valuable relationships that can result in more customers or clients, or help you land a better job if you spend time pressing the flesh and giving back in your community. Almost three-quarters of wealthy people network and volunteer a minimum of five hours a month. Among those struggling financially, only one in 10 does this.
One perk of volunteering is the company you’ll keep. Very often the boards and committees of nonprofits are made up of wealthy, successful people. Developing personal relationships with these folks will often result in future business relationships.

7. Go above and beyond in work and business.
Unsuccessful people have “it’s not in my job description” syndrome. Consequently, they are never given more responsibility, and their wages grow very little from year to year—if they keep their jobs at all. Wealthy individuals, on the other hand, make themselves invaluable to their employers or customers, writing articles related to their industry, speaking at industry events and networking. Successful people work hard to achieve the mutual goals of their employers or their businesses.

8. Set goals, not wishes.
You cannot control the outcome of a wish, but you can control the outcome of a goal.
Every year, 70 percent of the wealthy pursue at least one major goal. Only 3 percent of those struggling to make ends meet do this.

9. Avoid procrastination.
Successful people understand that procrastination impairs quality; creates dissatisfied employers, customers or clients; and damages other nonbusiness relationships. Here are five strategies that will help you avoid procrastination:
▲ Create daily “to-do” lists. These are your daily goals. You want to complete 70 percent or more of your “to-do” items every day.
▲ Have a “daily five.” These activities represent the crucial things that will help you get closer to realizing some major purpose or goal.
▲ Set and communicate artificial deadlines. There’s nothing wrong with finishing early.
▲ Have accountability partners. These are people you team with to pursue a big goal. Communicate with them at least every week, and make sure they hold your feet to the fire.
▲ Say a “do it now” affirmation. This is a self-nagging technique. Repeat the words “do it now” over and over again until you begin a task or project.

10. Talk less and listen more.
A 5-to-1 ratio is about right: You should listen to others five minutes for every one minute that you speak. Wealthy people are good communicators because they are good listeners. They understand that you can learn and educate yourself only by listening to what other people have to say. The more you learn about your relationships, the more you can help them.

11. Avoid toxic people.
We are only as successful as the people we spend the most time with. Of wealthy, successful people, 86 percent associate with other successful people. But 96 percent of those struggling financially stick with others struggling financially.
If you want to end your financial struggles, you need to evaluate each of your relationships and determine if they are a Rich Relationship (with someone who can help you up) or a Poverty Relationship (with someone holding you back). Start spending more and more time on your Rich Relationships and less on your Poverty Relationships. Rich Relationships can help you find a better job, refer new business to you or open doors of opportunity.

12. Don’t give up.
Those who are successful in life have three things in common: focus, persistence and patience. They simply do not quit chasing their big goals. Those who struggle financially stop short.

13. Set aside the self-limiting beliefs holding you back.
If you’re hurting financially, you’ve probably told yourself some of these untruths before: Poor people can’t become rich. Rich people have good luck and poor people have bad luck. I’m not smart. I can’t do anything right. I fail at everything I try.
Each one of these self-limiting beliefs alters your behavior in a negative way. Almost four out of five wealthy people attribute their success in life to their beliefs. Change your negative beliefs into positive affirmations by reading lessons from the greats of personal development, like Napoleon Hill, Dale Carnegie and Jim Rohn.

14. Get a mentor.
Among the wealthy, 93 percent who had a mentor attributed their success to that person. Mentors regularly and actively participate in your growth by teaching you what to do and what not to do. Finding such a teacher is one of the best and least painful ways to become rich.
If you know your goals, find someone who has already achieved them. You’ll be amazed by how many people want to lend a helping hand.

15. Eliminate “bad luck” from your vocabulary.
Those struggling financially in life have a way of creating bad luck for themselves. It’s a byproduct of their habits. Poverty Habits, repeated over and over are like snowflakes on a mountainside. In time, these snowflakes build up until the inevitable avalanche—a preventable medical problem, a lost job, a failed marriage, a broken business relationship or a bankruptcy.
Conversely, successful people create their own unique type of good luck. Their positive habits lead to opportunities such as promotions, bonuses, new business and good health.

16. Know your main purpose.
It’s the last Rich Habit, but it might be the most important. Those people who pursue a dream or a main purpose in life are by far the wealthiest and happiest among us. Because they love what they do for a living, they are happy to devote more hours each day driving toward their purpose.
Odds are, if you are not making sufficient income at your job, it is because you are doing something you do not particularly like. When you can earn a sufficient income doing something you enjoy, you have found your main purpose.
Believe it or not, finding this purpose is easy. Here’s the process:
1. Make a list of everything you can remember that made you happy.
2. Highlight those items on your list that involve a skill, and identify that skill.
3. Rank the top 10 highlighted items in the order of joy they bring to you. Whatever makes you happiest of all gets 10 big points.
4. Now rank the top 10 highlighted items in terms of their income potential. The most lucrative skill of all is worth 10 points.
5. Total the two ranked columns. The highest score represents a potential main purpose in your life. Presto!

As you can see, the differences between rich and poor are simple—sometimes intuitive—but not insignificant. Aim to take up all 16 of these habits, and you’re almost guaranteed to become better off.
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