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12 Jul 2020

How to Sell to Different Numbers People

As we know, we can profile a person just by looking at his mobile number. This is from the school of Yinyang Digital Energetics. 

This school said that each digit 1 to 0 represents different things. When we combine 2 digits, they have unique meanings. From here we derive 8 types of numbers with the names Jueming, Wugui, Liusha, Huohai, Tianyi, Yannian, Shengqi and Fuwei. 

Each type of number (eg Jueming, Wugui etc) has different personalities. In sales, it is about adapting our selling method to different personalities.  This article is about how to sell to different numbers people. Enjoy!  

Jueming Numbers People: Be their Friend 

These people trust friends a lot so if you treat them well they will put everything with you.  The key is to win their hearts and loyalty.  Since they like to help their friends, you can appeal to them to help you and they will buy just to help you. 

Wugui Numbers People: Never Convince Them

Wugui people trust no one and sometimes not even themselves.  So never try to convince them.  Just show them what you have and show them where to get further information and say, "You are the best judge".  

I would put them to a group chat where they will see other people's posts on mobile numbers readings and its foundations.  Also never offer them a special deal as they never trust such things. Instead, appeal to them on the late-night guilty feeling (which they have as they sleep late). 

Beware that Wugui people have lots of tricks in their sleeves and they can put words into your mouth and twist and turn to their advantage.  If you don't know them well, stay far away from them as they are prone to having buyers remorse and are not shy to ask for a refund after the goods or service is delivered. 

Liusha Numbers People: Appeal to their Emotions 

Liusha people are highly sensitive and emotional and have an eye for beauty. So you must touch them physically and do things that touch their hearts (like care for them and hear them out). Never talk logic to them as Liusha people act base on feelings mostly. 

Also, avoid hurting them with things like speaking too loud, being impatient and never care for their feelings. Hear them out and empathise and sympathise with them. 

In the end, Liusha people will buy base on feelings, they must have a good feeling towards you and what you sell. They are not rational and act when they feel good. 

Huohai Numbers People: Let Them Talk

Huohai people like to talk and never admit defeat.  They like to twist and turn and will instead talk you into buying from them. They also like to complain and want you to meet their needs. 

To sell to them, let them talk.  Agree and praise them. Care for them. Tell them that you are not good at communicating what you sell and let them ask questions instead. 

Tianyi numbers people: Focus on Contribution

Tianyi people are well-to-do, and they like to contribute rather than just receive.  They are the easiest to close.  Although they don't need much, they too want to do better and most importantly, they want to contribute to mankind.  They actually don't need to buy what you sell, but they buy because they can afford and they want to help you and contribute to mankind

Yannian numbers people: Be Better than Them and Challenge them

You know that Yannian people are leaders and have very strong opinions and very stubborn. They have high standards and expect a lot from you.  To win them over you need to have high standards, many credentials and deliver plus one.  

Since they are so stubborn, you have to appeal to their higher inner self and challenge them. Tell them, "Why not you take it?  This amount is nothing to you. You know inside that you want it, that's why I am here". 

Shengqi Numbers People:  Close them now 

Shengqi people are very friendly and like to help people. They like to spend and will buy anything as long as they feel that there is little downside risk. They like to buy from strangers too. 

They are the easiest to close, and because of this many people would have approached them so you must approach them now or they would buy from people other than you.  

Fuwei Numbers People: Be Very Patient: Follow-Up with them 21 Times

Fuwei people are very reactive, indecisive and too timid to do anything.  You must follow-up with them up to 21 times and they will buy from you as they don't want to disappoint you.  You may have to kick their butt to get going. 

They are super nice people and very contended.  Never appeal to their goals as they have none!  But they care a lot for their families so you can sell from this angle.  To know about mobile number profiling, come for our Zoom talks this Tuesday or Friday at 2.13 to 4.31 pm. Details and booking at or here

Related articles:
  1. How to Stop Bank Leakage
  2. How to Invite from Your Phone book
  3. Are you focused on learning creation?
  4. The biggest concerns to overcome
  5. How to Save $1,000 on 2-Days Numbers Masterclass
  6. Truths of Mobile Number Profiling
  7. 5 Reasons to Change Mobile Number
  8. Prolonged hard times caused by COVID-19: what has phone number go to do with this?
  9. Your Mobile Number is Not as Important as other things
  10. Which electric retailer makes any money? Tuas Power or Geneco or Keppel?
  11. IC Number and Birthdate vs Mobile Number: Which One Most Important?
  12. Yinyang
  13. Why is China Rich and USA always Quarrel? Look at their year of birth
  14. Why Singtel Mobile Makes the most money?
  15. Yijing Numbers and You
  16. Your Mobile Your Life

10 Jul 2020

How to Stop Money Leakage in You Bank Accounts

If you are like most people, you find that you may earn good money but your bank account balances don't seem to increase.  In fact, many times, your bank balances actually decrease even though you have been quite prudent in your spending and your income is about the same.  This situation is called Money Leakage from a financial point of view.  Today's let's look at how we can stop money leakage in our bank accounts:
  1. First, you have to make sure that your bank does not do deductions that you are not aware of, eg credit card payments that you are not aware of, duplicate GIRO deductions property instalments, insurance premiums etc.
  2. Then make sure that your ad-hoc payments are all proper eg PayNow, PayLah, etc
  3. If there are no wrong or improper outflows, then it must be your bank account number is giving you leakages.  We know that numbers have energy, and if your number is of negative energy, you will suffer outflows more than inflows. This is from the school of Yinyang Digital Energetics, and is based on 5,000-year-old Yijing principles (read this article for more)
Many people did not know that we can actually choose our bank account number.  Any bank account number that does not end with the ending 3 or 4 digits of Tianyi and Yannian numbers will have money leakages. (To know what is Tianyi and Yannian numbers, message to me Andy Ng 65-93672286).  

In Singapore, we can choose our bank account number with only one bank: POSB, i.e. open a new POSB eEveryday Savings account online.  In other countries, you can check with your banks.  In China, the 4 major banks offer this flexibility.  If you too want to know the power of numbers including how to stop money leakage, welcome to our online Zoom FREE talks as follows:

Every Tuesday and Friday 2.13 to 4.31 pm (English) and 7.13 to 9.49 pm (Mandarin).  

Power of Mobile Numbers

What it covers:
1. What is Yijing and Yinyang role
2. Reasons why your mobile number affects you the most
3. What does zero mean inside a mobile number
4. Demonstration on how numbers affect living things including humans
5. Jueming and Wugui numbers
6. Yannian numbers
7. Wealth attracting numbers
8. How to Price to Sell with numbers
9. The 3 steps to changing your fate NOW
10. 18 Case studies on the Speed of Change

To book your limited free tickets, click (day) or or text to Andy at 93672286

9 Jul 2020

Who to Invite From Your Phone Book?

Start from people with Tianyi numbers.  This is because people with Tianyi numbers have the means and resources to afford our mobile number change fee of RM2949 or S$949. They are also very nice people and are first movers.  Although they are currently doing well, they want to do better, and they are usually the first one to change number. 

Next, go for people with lots of Jueming numbers. This is because Jueming numbers people trust friends a lot and they also like to help you if they think you are their friend. They also have suffered too much and want a change badly. 

After that, go for people with lots of Shengqi numbers.  People with Shengqi numbers tend to be more positive and also have lots of friends to bring in too. They also trust you as a friend. 

You can also go for people with Huohai numbers.  This is because Huohai numbers people have lost too much money and they too want a change.  Also, such Huohai numbers people have lots of friends that they can bring in too.

After this, I go for people with Fuwei or repeat numbers.  These people are more reactive, stable and compliant. They like to follow leaders.  If I lead them with my good knowledge of numbers, they will want to join me.

I try to avoid people with many Liusha numbers, for they are more suspicious and ultra-sensitive and need lots of attention. They are also emotionally unstable and don't trust people. 

I also feel that Yannian numbers people are too stubborn to want to change their belief and change their numbers. Also, they are more domineering and hard to satisfy.

Finally, I avoid people that have too many Wugui numbers for they are not reliable, too suspicious and sceptical.  They also tend to change their minds very fast. 

The above is what I gathered from my experience and also from Teacher's Li teachings.  What do you think?  Share me your thoughts. 

4 Jul 2020

Are you Focused on Learning and Creation?

Most people are distracted right now. They are distracted while they are at work.  They are distracted when they are with family and friends. They are distracted by non-stop entertainment, social media and forwarding of posts in WhatsApp and YouTube videos. 

Few have ever read a book since they left school, even fewer have ever learnt something useful and apply it in their business, career and life. Many in Singapore attended much government-paid training but very few put them to use.  I myself is one example. I spent all my $500 SkillsFuture money in many training but apply very little in my business of training and consultancy. 

In 2019 March, I attended a two-day training on Mobile Number Profiling.  Since then, I have been applying what I learnt in many ways. I have also created tens of thousands of values in sales and profits from people in Singapore, Malaysia, China, New Zealand, Thailand, Australia, Taiwan, Indonesia, Mauritius, Luxemburg and soon Vietnam, Cambodia and India. 

The 2-days course is called Yinyang Digital Energetics Masterclass.  It is about the use of Yijing and how to apply it to our mobile number.  This school states that all digits have energy. Based on a string of digits in a person's mobile phone number, we can read a person like a book in 6 categories of his life: personality, career, wealth, health, relationships and family and benefactors.

Digital Energetics is pretty accurate as you can verify it anytime anywhere. Just give me a mobile number of a person that you know very well and I will do a reading of this number within 3 minutes. You can always feedback to me on its accuracy. My WhatsApp number is +6593672286.

Based on my experience of reading mobile numbers since June 2019, my accuracy is 70% to 90%。This is not because I am smart or possess some magic. I just follow a system of science.

Why is Digital Energetics So Accurate? Is it based on some Fengshui or some Chinese old school of thought?

Well, this system originates from the ancient Chinese culture of the Book of changes or Yijing 易经. This Yijing is considered the earliest of Chinese thought and culture as it was discovered and documented more than 5,000 years ago.

The basic framework of the study of Yijing is Yin and Yang. In the words of current science, the laws of the micro-world and the macro-world.

In Yijing, there are three talents: heaven, earth and humanity 三才:天地人

There are 5 elements: metal, wood, water, fire, earth. 五行:金木水火土

From here we derive the 8 Trigrams: Kan, Kun, Zhen, Xun, Qian, Dui, Gen and Li 坎坤震巽乾兑艮离

Each trigram has its own meaning. So are the digits 1, 2, 3 to 0.
1 = Kanshui 坎水 Ridge Water
2 = Kuntu 坤土 Earth Soil
3 = Zhenmu 震木 Earthquake wood
4 = Xunmu 巽木 Obey wood
5 = Zhongyangtu 中央土 Central Soil
6 = Qianjin 乾金 Sky Metal
7 = Duijin 兑金 Exchange Metal
8 = Gentu 艮土 Cultivate Soil
9 = Lihuo 离火 Further Fire
0 = Zhongyangtu 中央土 Central soil

Based on the above, each digit represents different meanings. When we combine the digits, the results will be there, positive or negative. For example, 12 is Kanshui and Kuntu, meaning ridge water destroys earth soil, so 12 is very negative. Similarly, 13 is very positive because Ridge water is good for earth wood. 18 is what most people consider as good, when here we can it is very ferocious, as it is Ridge Water destroys Cultivate Soil.

From here you can see that we don't read each digit on its own but read digits in pairs. Each pair of digits will produce certain meanings, positive or negative. The effects will be there and the longer you use your mobile number, the bigger is the effect.

Note that 5 and 0 are central ground 中央土, so they alone have no meanings and their meanings are derived from the digits before and after. So 102 is just 12 and 152 is also 12, 120 is also 12 and 012 is also 12 and so on.

To know more if your mobile number is good or not, email to me Andy at for a FREE reading worth $168

18 Jun 2020

5 Biggest Concerns and How We Overcome Them

People generally want to change their mobile number, they also can afford the fee of just $949, which is much lower than a brand new Samsung phone that easily costs $1.5K (and only last 2 years).  There are 5 main concerns and today let's address them:

1. Afraid Will Lose All Data and Contacts in the Old Number
Solution: Your data is never with your mobile number or SIM.  As for your contacts, you can always retain your old number for a period, say 3 months, and do a call forwarding.  People that call your old number you can still see and receive, and you can inform them of your new number

2. Too Emotionally Attached to the Old Number
Solution: This is like people too emotionally attached to the old shophouse or kampong and refused to move to new HDB flats in the 1960s and 1970s.  But we are now in 2020, why still attached to something that has been gone long ago and no longer serves us?  

Anyway, if you like your old number so much, you can always keep it, just for mobile data use, and only use your new number.  You can also do up a moment for your old number

3. Afraid that the telcos will not allow us to change mobile number
Answer: IMDA governs all mobile numbers in Singapore.  No telcos can refuse you to change your number, it is against the law

4. Afraid that my old telco contract will be affected and got to incur penalties 
Answer: We are only changing your mobile number, not your mobile contract.  This is like you change your mobile phone from Apple to Huawei, it does not affect anything. Please note that we are in 2020 now. 

5. Not sure how to tell people when they asked me why I changed my number
Answer:  Tell them that "I am changing to a new number as my old number is not giving me what I want and I want to take charge of my life from now on.  Please update your records and wish me all the best.  My old number xxxx will be changed to yyyy from (date) onwards"

What other concerns do you face?  Share with me in the comments below.  Thanks

25 May 2020

Remote Selling Success: How to Sell and Close Every Sale without Physically Meeting People

Yes, remote selling is now a must, even you are selling to people just across the street, for we cannot meet people. Even after the lockdown period, people are still cautious. Who wants to risk falling sick just to meet a salesperson? That's why they say we cannot go back to the good old days of selling meeting people physically.

This is the world's first and only Zoom Training on Remote Selling. All the sales training in the world caters to face-to-face selling. In remote selling, you don't meet people physically at all. You communicate with them via email, text messages, group chats, video conference, FB messages, FB Live, Tik Tok comments, LinkedIn messages and just mere voice calls.

We know that remote selling has advantages over physical face-to-face selling. You can now reach out to the world with no time and distance restrictions. With technology, you can have one-to-many selling without getting more salespeople. But remote selling is different in many ways. And to close sales, you have to do the right things. Whether you are new or experienced in sales, you must master remote selling if you too want to do sales. For in the new world, we may not be able to go out to meet people at all. Power-packed contents not covered elsewhere include:

  1. What is Remote Selling and how does it differ from the physical meeting selling

  2. Top 10 Benefits of Remote Selling

  3. Remote Selling Success in 5 Ways: Equipment Set-Up, Target Right, Present Remotely, Follow-Up Remotely and Close the sale remotely

  4. The 7 Ways to Do Remote Selling: Video Conference, Group Chats, Emails, Voice Calls, Zoom or Skype, Social Media Selling and Website Selling

  5. How to Set up the right equipment for remote selling

  6. Using video conference tools including Zoom and Skype

  7. Social Media Selling

  8. The 7 Steps to Remote Selling: Target Right, Messaging, Warm Call, Video Conference, Show and Prove, Overcome Objections and Offer to Close

  9. How to Build Rapport and Trust in a Remote World

  10. Getting Passionate and Involvement Remotely

  11. The use of Videos effectively

  12. The Ultimate of Remote Selling: Create a Better World Bonus:

  13. Top 15 Strategies to Close Every Sale Remotely

Date of Remote Training: 29 May 2020 Monday
Time: 9.30 am to 12.30 pm
Venue: at Zoom. Details will be given when you register
Fee: Special $68.80 for one or $49 each for 3 
Register at or text to Andy at 65-93672286

14 May 2020

Business Turnaround (new Zoom course on 21 May)

Course: Business Turnaround

Date: 21 May 2020 Thursday 2 to 5 pm

Venue: Online at Zoom.  Details to be given when you register

Fee: $68 (no GST)

Limit to 10 people for quality coaching purpose.  Register at

Yes, people are predicting that as much as 29% of businesses are closing down or plan to close down as they cannot withstand 3 months of zero or very low income due to the COVID-19 Pandemic. When your business is down on the slippery road, do you let it fall or do you try your best to turn it around? Is bankruptcy the only option? Do you give up or give it your all?

This course BUSINESS TURNAROUND, taken from our multi-day MBA-like courses for companies (called Corporate Turnaround)is now available to you at a fraction of its cost. Enrol for this course and you can not just save your business, but also save thousands of jobs and people from misery. Power-packed contents not covered elsewhere:

  1. The 5 Internal and 6 External causes of business failure: and none is your fault

  2. The one test for your business if it can survive for another lockdown or circuit breaker

  3. 10 signs that your business is heading for closure

  4. Business Turnaround in 4 steps WITHOUT getting Receivers and Consultants help

  5. Step 1: Take Control: how to take control of the Pandemic from killing your business?

  6. Step 2: Get Stakeholders Support: Suppliers, Customers, Banks, Employees, Landlords and Government

  7. Step 3: Restructure Finance: how to get FREE Cash Flow

  8. Step 4: Fix the Business in 7 steps

  9. Top 31 Ways to Get New Sales at Zero Cost

  10. Top 20 Financial Engineering Ways to Cut Cost Without Cutting Pay or Chop Heads

  11. Business Innovation in 2 ways: Revenue model and Management model

Bonus: Weekly Cash Forecast template and how to do it

Who should not attend: People that have already closed down their business or is in the liquidation process

For Who Attend:

1. People that Want to Turnaround their Business

2. Consultants and Trainers that want to help their clients very much NOW

3. Business Chambers and Associations that want to help their members

4. Government people that want to help our population

5 Benefits of this course:

1. You'll learn ways that consultants charge thousands of dollars

2. You can avoid future business failures

3. You'll get your business saved

4. You'll save jobs and families

5. You save yourself

*We limit the Zoom class to 10 for quality coaching purpose. Enquiries: Andy at 65-93672286. 

11 May 2020

The 10 Jobs That Will Definitle Disapperar in 10 Years

From a research report in 2013, the 10 jobs that will definitely disappear in 10 years time incude:

  1. Drivers of goods vehicles
  2. Drivers of passengers
  3. Pilots, as 88% of air traffic accidents are due to human error
  4. Cashiers at shops
  5. Translators
  6. Teachers of foreign language
  7. Models of clothing
  8. Judges of competitions (not legal courts)
  9. Office workers, including secretaries
  10. Doctors
  11. Investigators

Those that cannot disappear:
  1. Primary school teachers
  2. Creative designers
  3. Songwriters
  4. Singers
  5. Actors
  6. Programmers
  7. Policemen
  8. Firemen

10 May 2020

The Office that We Knew is Dead. Maybe for longer than You Think

Think of all the good things that your office brings you: a sense of community, instant hands-on, going lunches together, exchange gossip or information about work or anything, plus sharing of tidbits and goodies.  Now they are all gone.

We know that sooner or later the lockdown will be lifted.  But until the new daily COVID-19 cases are zero consecutively for at least a week, we cannot go back to the old days.  All offices must practise the following:

1. Social distance, that means you cannot get close to your colleagues or customers for whatever reason, there must be at least a 1-metre gap in between
2. Barriers in between workplaces so that no 2 persons can get close accidentally
3. All meetings beyond one person are to be disallowed.  That means you cannot do product launches, seminars, talks or training that make people sit together.  All meetings must be virtual
4. Al after-work entertainment eg go to bars, karaoke will become difficult or impossible.  Reason: everyone works at different timings
5. Salespeople that are used to face-to-face selling cannot do that easily anymore.  What does this mean?  No sales? 

That's why we move to Zoom webinars. Every Tuesday and Friday, we have two sessions: one in the afternoon in English and another in the evening in Mandarin.  All our trainees, trainers, customers, members, friends and associates enter Zoom and we conduct our business as usual.  

Before Zoom days, our seminars are limited to Singapore at our office at Fu Lu Shou Complex.  Our Teachers have to fly to Taiwan, China, Malaysia etc to conduct once in a month or two-months live seminars there. Now?  Our Zoom meetings have people as far as New Zealand, USA, Australia, Taiwan and China.  Our audience actually doubles and in many times triples.  If you too want to find out how we conduct business, plus get your mobile number read for free (only for 1st 9), come to our:

*Mobile Number Profiling*
Is Your mobile number Good or Bad For You?
Date: Tuesday 12 May 2020 
Time: 2.13 to 4.27 (English) and 7.13 to 9.49 (Mandarin)
Teachers: Any Ng (English) and Ms Li Chengwei (Mandarin)
Fee: FREE for invited guests, others $294
Venue: At Zoom.  Details will be given to you when you register
To register, click (English) or (Mandarin) or text to Andy at 93672286

9 May 2020

Focus on These 3 Types of People

People often want to get results in the fastest way, and they asked me what types of people should they bring to our Mobile Number Profiling Zoom talks.  They are:

1. People that Are Not on Fixed Salary, or people on fixed salary but now their job is at jeopardy. These people do not have a regular income, and COVID-19 simply made their little irregular income vanished overnight.  So they are hungry and want to seek a part-time or even full-time income from a platform that is not affected by COVID-19.  

We know we are in the business of helping people reduce uncertainties, and in such uncertain times, the demand for our services naturally increases. You can verify this fact with Teacher Li or talk to Stella Ouyong, our staff. 

2. People that are already very much into Chinese things including Fengshui, Bazi, Yijing etc.  For these people, mobile number profiling using Yijing principles is very in tune with their interests and they will sign up immediately.

3. People that trust, respect and like you a lot.  They know that you must have good reason to change your mobile number after so many years, so they will follow your advice to take up our mobile number change package

When you are new, do not focus on thees 3 types of people:
1. People that know you for very long and they have a fixed opinion of you, good or bad.  They cannot accept the fact that you now believe in such things.  They will, in fact, advised you otherwise.  Ignore these people.  One way to test if they are really your friend or not is to simply ask them this question, "You know me for so long, do you think I would do things without study?  If you are, then I am very disappointed"

2. People that are negative or bias against anything from China or Chinese things. They even detest Getai, 7th-month festivals, CNY etc. 

3. People that have no money, they cannot even afford S$149 deposit.

8 May 2020

Why Is it So Difficult to Use WeChat in Singapore?

Yes, we know that there are many difficulties to overcome when you use WeChat outside China.  Many people from China could not understand this, and they often find it difficult to use WeChat with us. This chapter looks at all of the difficulties and the solutions:
a.  People outside China, especially Singapore, use WeChat very infrequently.  Most use it at most once or twice a week, and many don’t even use it for months. We know that if you don’t use WeChat for more than 3 months, your account will be blocked and many people don’t know how to unblock it.  Besides, friend requests in WeChat has a 3-days validity, so infrequent usage makes it difficult to increase your friends
b.  Bias against China and anything from China.  Because of years of influence by the Western media, especially Facebook, Google and the media, many people I know view anything from China with a negative bias.  If the things from China are good (eg phones very lasting), they will say it is because they use cheap labour.  If the things from China don’t work out, they say this is expected. As a result, many people I know don’t know what WeChat is and cannot be bothered about it.  With such a low population using WeChat on a daily basis, there is little you can do
c.   Don’t know Chinese and didn’t know that there are many free translation and transcription tools available within WeChat.  In fact, I often wrote entire articles in Chinese by not typing a single word in Chinese.  I speak in English, I speak in Mandarin and I even use articles in copyright free official accounts like Kaidan Huoban
d.   WeChat account get blocked and don’t know or cannot be bothered to unblock it.  See our earlier chapter on this
e.   Use the Facebook way to use WeChat: search for strangers, join groups yourself, advertise for just $0.20, post non-stop advertisements, post non-stop every day and post fake news.  All these are forbidden in WeChat and if you do them, your account will get blocked very fast
f.   Use WeChat on an iPhone, which has many restrictions and cannot download useful apps like Yingyong bao.  Some Samsung phones also have certain restrictions. It is best to use China-brand phones like Vivo, Oppo, Xiaomi (but not Huawei)

4 May 2020

Time Value of Money Explained

(This is covered in lecture 22 of our course Financial Intelligence)

The time value of money -- the idea that money received in the present is more valuable than the same sum in the future because of its potential to be invested and earn interest -- is one of the founding principles of Western finance.

Let's say you lent your friend $2000. Would you rather he repaid you today, or tomorrow? The logical choice would be today, because you'll be able to use your money, and potential gains that come with it, sooner.

What Is the Time Value of Money?

Money is worth more more in the present than in the future because there's an opportunity cost to waiting for it. In addition to your loss of use if you don't get your hands on it right away, there's also inflation gradually eroding its value and purchasing power.

If you're going to part with your money for any period of time, you probably expect a larger sum returned to you than you started with. Whether you're lending or investing, the goal is to make a gain to compensate you for going without your money for awhile.

Suppose your friend offers to repay you $2000 today or $2050 next year. You must consider whether you'd earn more than $50 over the next year by investing your money elsewhere before choosing to delay receiving payment. Other factors include your time preference (whether you need the money right now or can wait awhile to get it back) and whether you trust your friend to actually repay you -- another reason why money is worth more in the present: it may never materialize in the future. As the saying goes, "a bird in the hand is worth two in the bush."

Why Does the Time Value of Money Matter?

The time value of money matters because, as the basis of Western finance, you will use it in your daily consumer, business and banking decision making. All of these systems are driven by the idea that lenders and investors earn interest paid by borrowers in an effort to maximize the time value of their money. Your job within this system is to limit the cost of money to you and to increase returns on your investments.

The concept isn't new -- it dates back to ancient times -- and although, as with Islamic finance, there may be cultures that forbid charging interest, their decisions are driven by similar monetary concepts.

Formula for Calculating the Time Value of Money

So how do you measure the time value of money? The formula takes the present value, then multiplies it by compound interest for each of the payment periods and factors in the time period over which the payments are made.

Formula: FV = PV x [ 1 + (i / n) ] ^(n x t)
  • (PV) Present Value = What your money is worth right now.
  • (FV) Future Value = What your money will be worth at some future time after it (hopefully) earns interest.
  • (I) Interest = Paying someone for the time their money is held.
  • (N) Number of Periods = Investment (or loan) period.
  • (T) Number of Years = Amount of time money is held
For instance, if you start with a present value of $2,000 and invest it at 10% for one year, then the future value is:
FV = $2,000 x (1 + (10% / 1) ^ (1 x 1) = $2,200

How Interest Rates Affect the Time Value of Money
Interest compensates a party for time she spends apart from her money. Expressed as a percentage over a specific period of time, it's a charge or an income that is a measure of money's value over time.

Usually, the longer someone lends their money to another party, the higher the interest rate they charge for it. Debt of shorter duration, like a 15-year fixed mortgage, usually commands a lower rate than, say a 30-year fixed rate mortgage.

Likewise, an interest-bearing investment like a bank certificate of deposit usually pays a lower interest rate the shorter the term. If you commit to leaving your money in the account longer, you're often rewarded with a higher interest rate.

There are several different types of interest rate:
  • Simple Interest
  • Compound Interest
  • Fixed Interest Rate
  • Variable Interest Rate
Simple vs. Compound Interest
Simple interest is illustrated in the example above -- simply adding a 10% gain to $2,000 for a year yields $2,200.

Compound interest, however, is calculated by adding the interest accrued up until certain intervals during the life of the loan or investment in a way that can significantly increase the future value. Time value of money is usually calculated with compound interest.

Using the same formula as above to compute the same $2,000 at 10% for one year -- but this time compounding interest quarterly, or four times a year -- yields:

FV = PV x [ 1 + (i / n) ]^ (n x t)

This is calculated as follows: $2000 x [1 + (10% / 4)] ^(4 x 1) = $2,207.63
So that's another $7.63 in the course of a year. Note that, with compound interest, the future value is higher than it is when calculated with simple interest.

Fixed Interest Rates vs. Variable Interest Rates
In investing and borrowing, consumers often walk a delicate line of trying to maximize the time value of their money while avoiding too much risk.

As prices rise, many take on debt to be able to afford homes, cars, vacations and other 
high-cost items. That's why it's important to look closely at the type of interest you're paying and how it may change over the long term while also seeking to make strong returns to bolster the time value of your money.

If you have money invested in a certificate of deposit (CD), chances are it pays you a fixed interest rate. Fixed rate refers to an interest rate that will not change over time. The opposite of that is a variable rate, which is an interest rate that changes depending on how much benchmark rates rise or fall in the open market.

Calculated simply, if you invest $1,000 in a one-year CD at a fixed 2% interest rate, the future value of your $1000 will be $1,020. The time value of your $1,000 is 2%, or $20, in exchange for letting the bank keep your money for a year.

Opportunity Cost and Time Value of Money

Time value of money varies and involves an opportunity cost. That means that if you're putting the $1000 in the CD, you may be foregoing an opportunity to use the money as a good faith deposit on a home. Calculating the time value of your money should tell you that instead of investing at all, you should have instead paid down expensive variable rate credit card debt that's costing you hundreds a month.

3 May 2020

Financial Engineering Top 20 + 5 Ways to Cut Cost without Cutting Pay or Chopping Heads

Financial Engineering Top 20 + 5 Ways to Cut Cost without Cutting Pay or Chopping Heads: (detailed video at here)
1. Issue Shares instead of Borrow
  (If borrow, get an interest-free loan from shareholders and directors, convert the loan to preference shares. Issue derivatives)
2. Rent premise/asset with an option to buy (ask for lower rental plus lower price)
3. Re-look at your Balance Sheet – are they really assets? (Assets must have cash inflow and will increase in value)
4. Move operations or HQ to places with lower or zero taxes eg the Cayman Islands
5. Profit Sharing instead of Bonus for staff
6. Use OPM other than creditors
7. Hedge your purchase cost
8. Use online more
9. Split your company into many to take advantage of zero or lower tax
10. Change accounting policy to be more in-line with industry (e.g. lengthen depreciation years, capitalize IP, amortize R & D)
11. Sale and lease-back premise/asset (rental is tax-deductible, lease payments are not – Tax Shield)
12. Value-Added Concept for all work
13. Challenge everyone to cut cost by 10% or cut their pay by 20%
14. Do Cash business (take advance from customers, pay suppliers on credit, buy on back-to-back LC)
15. Ask for discounts from suppliers for earlier payments, and stretch others to pay for it
16. Incorporate inventory obsolescence into the cost of sales, and charge them against salespeople commission
17. Increase Inventory Turn
18. Package more services into your product and use creative services to earn more
19. Look into your existing assets: are thy relly assets or liabilities?  For assets, re-finance to cut interest cost
20. Profit-share with your suppliers, customers and even the government
21. 80/20 Rule for everything: focus on the 20% of work that produces 80% of the profit
22. Financial analysis to ensure your company is efficient financially
23. Keep more scores
24. Use zero-based budgeting
25. Regular new ideas from everyone
For the complete 2-hours video course on Financial Intelligence, visit