Why the rich gets richer?

The extract below is from: http://sg.beta.promo.yahoo.com/managingyourmoney/expert?blogid=expert&postid=1&viewPost=1

Thinking Big Is The Best Plan

Years ago, when I was just starting my real estate investing career, I came across a property with a for-sale sign on it. I called the broker and asked, "What can you tell me about the property, and how much does it cost?"

The broker politely and patiently said, "It's a commercial building with six tenants. There's a chiropractor, a dentist, a hairstylist, an accountant, and a bail bondsman. The price is two million dollars."

Losing Big

I almost choked. "Two million dollars?! That's way too expensive!"

Thirty years ago, $2 million was a lot of money. And instead of looking at the property, I let the price frighten me off. I never looked at the deal, and just assumed that the seller was crazy, greedy, and out of touch with the market.

Today, there's a luxury hotel on the same site. It's spectacular. I estimate the property to be worth at least $150 million, and maybe more.

Cheap Lessons

Not seeing the potential of that deal taught me many lessons. Here are two important ones:

• Sometimes you learn more by being stupid and making mistakes.

• The person with the better plan wins.

In the above example, my plan was just too small. In fact, the only plan I had at the time was to collect the rent money from the tenants, cover my mortgage and expenses, and put a little in my pocket. And 30 years ago, I knew that the rent from six small tenants couldn't possibly pay for a $2 million property.

I later learned that the property's eventual owner bought it for full price – with terms. He put $50,000 down as an option and asked for 180 days to put the rest of his plan together. During those 180 days, he gathered his investors, a builder, and his tenant, a major hotel chain.

If he hadn't been able to put his plan together, he would've lost his option money. Instead, before the 180 days were up, his investors paid the $2 million in cash, and he spent the next three years getting the project through the city planning commission and finally began construction. He won because he had a better plan.

Mind Expansion

Donald Trump often says to "think big." He definitely does so, but by nature, I don't. My excuse is that I come from a small town in Hawaii. My family wasn't rich, so when it comes to money, I tend to think err on the side of caution. Over time, my thinking has become medium-sized when it comes to spotting opportunities, but I'd still like to think bigger.

One of the reasons I enjoy doing business in New York and having Trump as a partner on different projects is that he makes me do just that – because if you don't think big in New York, you get kicked out. If I thought small, I wouldn't be on television, cutting book deals with major publishers, or talking in front of tens of thousands of people in arenas like Madison Square Garden.

Currently, I'm working on a real estate project to present to Donald. Consequently, I find myself pushing my thinking, expanding my context, and thinking of luxury, not just price. Even if Donald doesn't like the project and we don't partner on it, just preparing to present the project to him has required me to think bigger and come up with a better plan.

A Blast from the Past

About a year ago, someone called to say that there was a spectacular condominium that had just come up for sale. She wanted to know if I was interested in looking at it. Of course I said, "Yes." I wanted to see what her definition of spectacular was, and trust me – it was spectacular. She then said, "And the price is only twenty-eight million dollars. But I believe you can pick it up for twenty-four million. At that price, this condo is a steal."

Once again, I heard myself saying what I said so long ago: "That's too expensive." But, as I said, that lesson from 30 years back proved to be priceless: After hearing the think-small person in me comment on the condo price, I took a deep breath and asked myself, "What's my plan?" Then I asked myself, "What's wrong with my plan?"

I didn't buy the condo, but I did come up with a better plan. Over the next few days, I realized that the reason I couldn't afford the condo was because my business was too small. If I wanted to afford such a luxury residence, I needed to come up with a better plan for my business. Today, I'm working harder than ever to improve it – not because I want the condo, but to be able afford such a condo if I someday decide I want one.

Plan Ahead

In many of my Yahoo! Finance columns, I've written about my concern over the devaluation of the U.S. dollar. As the dollar drops in purchasing power, it often pushes up the prices of real assets – quality real estate and equities. My fear is that many people may not be able to afford tangible assets and become poorer as the dollar declines. This drop in purchasing power also widens the gap between the rich and everyone else.

One method of staying ahead of rising asset prices and the declining dollar is to think bigger and come up with better plans. As important as financial and business planning is a plan for personal development and self-improvement. I'm often asked to invest in people's business plans, and one of the reasons I turn many of them down is because a big plan requires a big person who's spent time on personal development. In a lot of cases, a business plan is far bigger than the person with the plan – that is, the dream is bigger than the dreamer.

Today, I'm glad I missed out on that $2 million property all those years ago. The best lesson I learned from it is that I can have a better life if I have a better plan – and a plan to become better person. So what's your plan?

Do you think u can solve it?

Extract from yahoo: http://sg.news.yahoo.com/cna/20091010/tap-464-parents-arms-psle-mathematics-pa-231650b.html

"Jim bought some chocolates and gave half of it to Ken. Ken bought some sweets and gave half of it to Jim. Jim ate 12 sweets and Ken ate 18 chocolates. The ratio of Jim’s sweets to chocolates became 1:7 and the ratio of Ken’s sweets to chocolates became 1:4. How many sweets did Ken buy?"

Extract:
The first thing her son did when he came out from the Primary School Leaving Examination (PSLE) maths paper on Thursday this week was to gesture as if he was "slitting his throat".

"One look at his face and I thought ’oh no’. I could see that he felt he was condemned," said Mrs Karen Sng. "When he was telling me about how he couldn’t answer some of the questions, he got very emotional and started crying. He said his hopes of getting (an) A* are dashed."

Not for the first time, parents are up in arms over the PSLE Mathematics paper, which some have described as "unbelievably tough" this year. As recently as two years ago, the PSLE Mathematics paper had also caused a similar uproar.

The reason for Thursday’s tough paper, opined the seven parents whom MediaCorp spoke to, was because Primary 6 students were allowed to use calculators while solving Paper 2 for the first time. Paper 2 makes up 60 per cent of the entire paper and consists of 18 questions.

Said Mrs Vivian Weng: "I think the setters feel it’ll be faster for them to compute with a calculator. So the problems they set are much more complex; there are more values, more steps. But it’s unfair because this is the first time they can do so and they do not know what to expect!"

These parents’ children are studying in both neighbourhood and "top" schools.

In response to MediaCorp’s queries, the Education Ministry said this year’s paper was "comparable" to those of previous years. "There is no change in syllabus, question types or number of questions," a spokesperson said.

"The introduction of the use of calculators does not have any bearing on the difficulty of paper. The use of calculators has been introduced into the primary maths curriculum so as to enhance the teaching and learning of maths by expanding the repertoire of learning activities, to achieve a better balance between the time and effort spent developing problem solving skills and computation skills. Calculators can also help to reduce computational errors."

But the parents MediaCorp spoke to said students were apparently so stumped that many — even top students who have regularly aced past school examinations — broke down in tears in right after the paper.

Private maths tutor Josephine Tan whose son studies at Anglo—Chinese School (Junior), said he told her that "many A* students in the top class... couldn’t finish all the questions".

According to posts on an online forum for parents, one example of the problem sums given was: "Jim bought some chocolates and gave half of it to Ken. Ken bought some sweets and gave half of it to Jim. Jim ate 12 sweets and Ken ate 18 chocolates. The ratio of Jim’s sweets to chocolates became 1:7 and the ratio of Ken’s sweets to chocolates became 1:4. How many sweets did Ken buy?"

Mrs Tan said: "They have spent months revising and preparing, but it’s so much tougher than they expected. It really put a big dent on students’ morale."

Another common gripe: There was not enough time for them to complete the paper.

A private tutor, who declined to be named, told MediaCorp she concurred with parents’ opinions. "This year’s paper demanded more from students. It required them to read and understand more complex questions, and go through more steps, so time constraints would have been a concern," the 28—year—old said.

However, the parents’ fear of poor grades for their children may be unfounded since they will be compared against the entire cohort’s performance.