•Want to double your money?

Here’s how the rule of 72 works

•To figure out how much you need to earn each year compounded annually to make your money double, divide 72 by the number of years you plan to double it at:

3 years = 24.0%
4 years = 18.0%
5 years = 14.4%
6 years = 12.0%

Sa last post ko about Neuroeconomics, I mentioned about the reflexive(right) and the reflective(left) brain. Iba-iba daw ang ginagamit ng tao. Meron yung iba mas ginagamit nila ung right,at yung iba mas nagagamit yung left brain.  Our emotional thoughts reside in the “right brain” while logical reasoning is based in the “left brain”.  Each has its own advantages and disadvantages. Each part is good at some things and bad at others. But One is not better than the other, just as being right-handed is not superior to being left-handed. Kaya di natin pwede sabihin na it’s better to be right brained than left brained. Pero mas maganda kung mapapag-aralan natin gamitin pareho ng balanse. I found a nice video on youtube, it’s a left brain vs. right brain test. Para malaman natin kung  right ba mas madalas natin gamitin o left.  I was surprised when I first watched it. I found out that I use my right brain more than I use my left. Right brain uses feelings while left brain uses logic. Isa lang ang direction ng ikot nun nasa video, nagbabago lang yung direction nya depende sa isip natin. Watch the video below.

RECOMMENDED BOOKS:
Neuroeconomics: Your Money and Your Brain – Jason zweig
The Mind of the Market -Neuroeconomics
Neuroeconomics by Peter Politser
Decision, Uncertainty, and the Brain: The Science of Neuroeconomics
by Paul Glimcher
Your Brain is Almost Perfect: How We Make Decisions -Neuroeconomics
Inside the Investors Brain: The Power of Mind Over Money -Neuroeconomics

Last year,  While I was searching for psychology books online, one investment book caught my attention. The book is about  brain and money and it covers the new science called Neuroeconomics. So I said to myself “oopss! bagong subject to ah! mukhang interesting!”. Kaya hinanap ko agad yung telephone numbers ng mga bookstores dito so I could check kung saan may available na ganitong title. Surprisingly, meron isang available sa Power Plant mall sa may rockwell. After a week, nabili ko din yung book. Neuroeconomics is a very interesting subject and nothing I’ve ever read about investing has excited me more than the spectacular findings emerging from this new science. This book focuses on how our investing brain works and how to keep the right balance between our reflexive and reflective brain. All the experiments and examples are amazing. Mas maiintindihan natin yung magkaibang abilities, advantages at disadvantages ng ating right and left brain, at kung alin sa dalawa ang responsible pag nakakaramdam tayo ng fear, confidence at ng iba pang emotion. Makikita din natin dito kung bakit at kung ano talaga ang dahilan pag nagpapanic ang mga investors. This book is not only for investors, I recommend this book sa mga may business at sa lahat ng mga nagstart pa lang at gusto mag-save. Sa next post ko, check natin kung anong side ng brain natin ang ginagamit natin, kung left o yung right. Try ko maghanap ng video para gawing example.

RECOMMENDED BOOKS:
Neuroeconomics: Your Money and Your Brain – Jason zweig
The Mind of the Market -Neuroeconomics
Neuroeconomics by Peter Politser
Decision, Uncertainty, and the Brain: The Science of Neuroeconomics
by Paul Glimcher
Your Brain is Almost Perfect: How We Make Decisions -Neuroeconomics
Inside the Investors Brain: The Power of Mind Over Money -Neuroeconomics

Focus your mind into something you want and you will get it. Focus your mind into something that you don’t want, you’ll also get it. Why? Because your mind works like a magnet, you attract what you think most of the time. You attract people, you attract situations and you attract opportunities. If you are a happy person, you’ll attract more happy people. If you focus your mind to becoming successful, you’ll attract the opportunities and the people who will help you become successful. If you focus your mind thinking that all you can make is only enough to pay the monthly bills, that’s exactly how much you will always get. If you are a positive person, you will always see the positive side of everything that happens to you. If you’re a negative person, and you focus on negative things, you will only attract more of those negative things. This only proves that sometimes, our mind is the biggest obstacle to becoming successful because some people focus their mind on what they don’t have instead of focusing their mind on what they can do with what they have. But if we know how to control our thinking, then our mind becomes our greatest and most important asset. I once heard a man said: ” I was born with no arms but I never asked the question, why am I here in this world with no arms? I instead asked myself, what can I do with my feet?”. This man became a painter, using only his feet. The happiest and successful people don’t bother about whether life is “fair”. They just make the most of what they have.

Andrew Matthews is the author of the best-selling books “Being Happy”, “Making Friends” and “Follow your Heart”. Andrew Matthews is truly amazing and he really is a very talented author.  I really enjoy reading his books. The principles in his books are so simple and easy to understand.

www.andrewmatthews.com

Andrew Matthews video clip

“Making Friends” – Andrew Matthews

“Follow Your Heart” – Andrew Matthews

“Happiness Now” – Andrew Matthews

“Being Happy” – Andrew Matthews

“Happiness in a Nutshell” – Andrew Matthews

“Being a Happy Teen” – Andrew Matthews

You can download e-books and mp3s from Andrew Matthews website:

www.andrewmatthews.com

The stock market appears in the financial news every day and you can also see it in the business pages of your favorite major newspaper. You also hear about it daily in statements like “Philippines Stock Exchange rose 3 percent today” and you may have heard about those individuals making money trading in the stock market.  Obviously, stocks and the stock market are important, but still many people know very little about them.

What is a stock? What is a stock market? Why do people buy and sell stocks? How do investors make money with stocks? How does it work? Who can invest in this instrument? Which is much better, investing in stocks or starting a business?  If you have questions like these, then this guide is for you. This guide will help you acquire the basic knowledge in stock investing.

Read the basic guide to stock investing here:

RECOMMENDED BOOKS ABOUT STOCKS:
How To Make Money in Stocks
The Intelligent Investor
The Neatest Little Guide to Stock Market Investing
Stock Investing for Dummies
Everyman and His Common Stocks
How I Made $2,000,000 in the Stock Market
How To Make Money Selling Stock Short
Stocks for the Long Run
How To Trade In Stocks

There’s more than one way to build wealth, and the key is to understand that there’s always an investment that’s good right now.  When stocks go down, bonds go up. When interest rates fall, stocks go up and homes get cheap.
If the economy is ‘bad’, that means it’s time to sell your bonds at a profit and buy stocks at a discount.  …or refinance your mortgage to pay lower interest rates.  Profit is made on the purchase and income of a property, as well as the sale price.  If the market is down, buy low.  If the market is up, sell high.  If you’re not sure where the market is right now, position yourself such that you make money no matter what.

The simplest way to make money no matter what is to have control over the process of buying low, adding value, and selling at a profit.  If you buy cheap parts and sell a product worth more than the cost of the parts, you’ve got yourself a system of creating wealth that will work in any economy.

No money in your bank account? Blame your brain.  Scientists in the emerging new field of neuroeconomics are making stunning discoveries about how the brain evaluates rewards, sizes up risks and calculates probabilities. Neuroeconomics is a combination of psychology, neuroscience and economics. It is a study on how people make decisions, how we use our brains and how the brain deals with money. In neuroeconomic experiments, full brain scans will be performed in order to compare the roles of the different brain areas that contribute to economic decision-making. It looks at the role of the brain when we evaluate decisions, categorize risks and rewards, and interact with each other. Neuroeconomists use devices, like MRIs, to observe the behavior of real people buying and selling things.  Armed with MRI scanners that measure blood flow in the brain and carefully structured games involving playing cards and real cash, both neuroscientists and economists have been watching what actually happens when people make economic decisions. Neuroeconomics can also be applied to investing and can help us understand how our brain affects our financial decisions. Neuroeconomics helps explain why people have such bizarre attitudes toward money. According to standard economic theory, money is a means to an end. When you get money, you shouldn’t experience immediate happiness. What all the scanning research is showing is that people get immediate pleasure and pain from obtaining and losing money. For me, Neuroeconomics is an interesting subject and could be very helpful to investors.  Neuroeconomists also make experiments with investors and observe what’s happening inside the investor’s brain. With MRI scanners, neuroeconomist can observe the precise neural circuitry that switches on and off in our brains when, let’s say, we invest. Those scans make it clear that our investing brain often drives us to do things that make no logical sense but make perfect emotional sense,  because you, like every other human, are wired to crave what looks rewarding and shun what seems risky.  And when you win, lose or risk money, you stir up some profound emotions, including hope, surprise, regret, greed and fear.

RECOMMENDED BOOKS:
Neuroeconomics: Your Money and Your Brain – Jason zweig
The Mind of the Market -Neuroeconomics
Neuroeconomics by Peter Politser
Decision, Uncertainty, and the Brain: The Science of Neuroeconomics
by Paul Glimcher
Your Brain is Almost Perfect: How We Make Decisions -Neuroeconomics
Inside the Investors Brain: The Power of Mind Over Money -Neuroeconomics

I just want to share with you this article I found in AOL website:

Do you ever wish you had invested in Amazon or Apple before they hit the jackpot? Nobody can predict the future, but if you went back 10 years with only $100 and the knowledge you have now, you could be a billionaire today. [Here is] how it’s possible.

Yahoo (YHOO)

Year: 1997
Jan. 1: $100
Dec. 31: $611

If you invested $100 in Yahoo stock at the start of 1997, the year of the Spice Girls, Hanson, and Titanic, you’d have $611 by the end of the year, thanks to Yahoo’s 511% return.

Amazon.com (AMZN)

Year: 1998
Jan. 1: $611
Dec. 31: $6,532

If you invested the previous $611 in Amazon.com stock at the start of 1998, the year Sex and the City debuted and Britney Spears was still innocent, you’d have (roughly) $6,532 by the end of the year, thanks to Amazon.com’s 971% return.

QUALCOMM Inc (QCOM)

Year: 1999
Jan. 1: $6,532
Dec. 31: $175,327

If you invested the previous $6,532 in QUALCOMM stock at the start of 1999, the year Backstreet Boys and NSYNC were big and everyone was freaked out about a global “Y2K” crash, you’d have $175,327 by the end of the year, thanks to QUALCOMM’s 2587% return.

Lab Corp. of America (LH)

Year: 2000
Jan. 1: $175,327
Dec. 31: $836,704

If you invested the previous $175,327 in LabCorp stock at the start of 2000, the year hanging chads made for a very interesting election outcome, you’d have $836,704 by the end of the year, thanks to LabCorp’s 377% return.

NVidia (NVDA)

Year: 2001
Jan. 1: $836,704
Dec. 31: $3,392,432

If you invested the previous $836,704 in NVidia stock at the start of 2001, the year Silicon Valley was imploding and stock investors were no longer printing their own profits, you’d have $3,392,432 by the end of the year, thanks to NVidia’s 305% advance.

MEMC Electronic Materials (WFR)

Year: 2002
Jan. 1: $3,392,432
Dec. 31: $7,213,680

If you invested the previous (roughly) $3.5 million in MEMC stock at the start of 2002, the year American Idol began launching homegrown superstars, you’d have $7,213,680 by the end of the year, thanks to MEMC’s 113% gain.

Akamai Technologies (AKAM)

Year: 2003
Jan. 1: $7,213,680
Dec. 31: $43,270,538

If you invested the previous $7.2 million in Akamai Technologies stock at the start of 2003, the year the Iraq war started and the first Pirates of the Caribbean movie plundered box offices worldwide, you’d have $43,270,538 by the end of the year, thanks to Akamai Technologies’s 498% return.

Sears Holdings (SHLD)

Year: 2004
Jan. 1: $43,270,538
Dec. 31: $179,147,269

If you invested the previous $43,270,538 in Sears Holdings stock at the start of 2004, the year John Kerry and George W. Bush went head-to-head for the White House, you’d have $179,147,269 by the end of the year, thanks to Sears Holdings’s 314% return.

SanDisk (SNDK)

Year: 2005
Jan. 1: $179,147,269
Dec. 31: $448,904,325

If you invested the previous $179 million in SanDisk stock at the start of 2005, the year Hurricane Katrina demolished New Orleans and Pope Benedict XVI succeeded Pope John Paul II, you’d have $448,904,325 by the end of the year, thanks to SanDisk’s 151% advance.

Allegheny Technologies (ATI)

Year: 2006
Jan. 1: $448,904,325
Dec. 31: $1,118,314,364

If you invested the previous $448,904,325 in ATI stock at the start of 2006, the year the Steelers won Superbowl XL, you’d have $1,118,314,364, thanks to ATI’s 149% gain. More than $1 billion in just 10 years.”

From: http://money.aol.com/investing/top-ten-stock

Some people become wealthy because they decide to become wealthy. They believe that they have the ability to become financially successful.  They know exactly what they want in life, they believe that they can achieve it, they set goals, write clear written plans, manage their time and then they consistently take the necessary actions that turn their dreams or beliefs into realities. They focus on the most important things so they can easily achieve their goals. They don’t make excuses, they only take action. Some people on the other hand are interested only to become wealthy, they have not yet decided to become rich. And because they are only interested, they do things half-heartedly. These people don’t know exactly what they want, their goals are not clear, they don’t have clear plans, they have not yet decided and they are not yet committed to do whatever it takes to succeed financially. They make excuses like: ” I don’t have enough knowledge to do those things”, “I don’t have much time to do it now”, “I’ll start saving when I have some extra money lying around”, ” I don’t know how to do it”, “Mahirap kumita ng pera”, “Mahirap ang pera ngayon”, “Mahirap ang buhay ngayon” and so on. They focus on the things they don’t have. Successful people focus on the things they do have, and they know how to effectively use all the resources they have to achieve those things they don’t have. The mindset of a successful person is like this: ” If I can’t find a way, I’ll make one”.