When it comes to compounding our money, how we view money is going to be the key. In Chapter 4 of The Psychology of Money, the author Morgan Housel spoke at length about the benefits of Compounding.
But when it comes to compounding, then the first question is, what do we compound? Work harder? Work longer?
But obviously, this is talking about the compound interest we enjoy through investments. The earlier we start, obviously then, the more benefits we get. What about those of us who start pretty late? Let’s just grab whatever we can, shall we?
And since we are going to be talking about compounding, each of the 10 Day Master’s view of money – how we view money – is going to come into the picture.
KEY EXCERPTS FROM THE PSYCHOLOGY OF MONEY (CHAPTER 4)
“If something compounds – if a little growth serves as the fuel for future growth – a small starting base can lead to extraordinary results.”
In other words, don’t worry that you are not 10 years old. Don’t worry that you don’t have a million in your investment account. Start small and keep growing the money.
“Good investing isn’t necessarily about earning the highest returns. It’s about earning pretty good returns that you can stick with and which can be repeated for the longest period of time.”
This strategy is called: stack the small wins. Which will require some active participation. When we have a small investment capital, then one way to grow it faster, is to learn the process of doing short-term investing such as Swing Trading. You hold a stock for about 2 weeks… a month max. But you really need to know what you are doing, ok? Please learn first before attempting. Get the knowledge, learn the process, and most important, learn how to control your emotions.
Yes, trading is emotional by nature. Trading does not change who you are. It amplifies who you are. Which means, that, in this case, how the Day Master view or relationship with your Wealth stars are going to come into play.
WOOD DAY MASTERS (JIA AND YI)
The Wood Day Masters’ Wealth Element is Earth. Earth is about steady accumulation, in Malaysia, we have a phrase, ‘sikit-sikit lama-lama jadi bukit’ which means pile on a little earth every day, eventually you grow a hill. And because Earth is strongly equated with hoarding, Wealth for the Wood Day Master is something to be ‘kept’. Like… land banks?
Jia Wood Day Masters
So most Wood Day Masters will not take risks until they feel safe and secure. This is especially true for the Jia Wood who dislikes surprises. Ever heard of the phrase ‘the apple never falls far from the tree?’ A tree drops its seed nearby… and then years later, from one tree you’ve got a copse of trees in that vicinity.
Therefore, when it comes to using their Wealth star, the Jia Wood’s focus will naturally focus on creating stability and security. The Jia Wood will first seek to survey the terrain to understand the conditions. Next, a lot of the Jia Wood’s focus is also on asset protection, to protect your ‘land’ by managing risks. And most important for the Jia Wood – reinvest the profits to improve and expand your land.
Yi Wood Day Masters
The faster Yi Wood’s view of Wealth is something new, a new land to be conquered. Like the dandelion that sends its seeds out into the wind. Flying to new lands. It’s still the same plant but growing… elsewhere.
In business terms, it’s like taking the same product and applying it into different market. Will all the seeds take root? Statistically, no. Similarly, when we test out new markets, will every idea work? Of course not.
But isn’t this method what’s called franchising? Replicate what I have – let other people implement it on different soils.
Between the two, the Yi Wood is more likely (and therefore more willing) to spend money upfront. Because there is a need to conquer new land.
Here, the Yi Wood’s natural gifts at networking and collaboration comes in handy. A Yi Wood needs to build connections to help you discover new opportunities and gain access to new ‘lands’ or access to additional resources.
Because the Yi Wood is always faster than the Jia Wood, a Yi Wood Day Master can change strategy much quicker. Also, again because of the natural networking abilities of the Yi Wood, it becomes easier to leverage on other people’s resources to expand your financial reach.
In both cases, since the term ‘land’ is the metaphor for your Wealth, there is a need to acquire a diverse ecosystem of new properties. Just like buying more land, look for new ways to invest and earn money through stocks, real estate, side business, other investments. For the Wood Day Master, diversity is the key.
FIRE DAY MASTERS (BING AND DING)
Bing Fire Day Masters
The Bing Fire represents the sun. Your Wealth star is Metal. How hot does the sun have to be to forge Metal? Scorchingly hot! So most Bing Fire Day Masters will tend to be more risk-averse.
Because every cent I have is made through blood, sweat and tears! Easy to take out money? Not easy. Quite painful in fact. A forged Metal is like a valuable sword or precious gold ring. It needs to be kept in the safe!
But doesn’t this sound contradictory to the Bing Fire’s natural generosity? Let me explain. The Bing Fire’s Wealth Star is Metal. Metal is a TOOL! A tool used to acquire something else.
When a Bing Fire spends money, typically, they expect some immediate returns. When I buy my friends dinner, and I get the pleasure of their happy company. When I pay for a family vacation, and I get the pleasure of bonding with them. Money is a tool – used to acquire something else.
The weird part is, for some Bing Fire Day Masters, investment is not considered a tool. Note that I said ‘some’ Bing Fire Day Masters. But once you succeed in shifting that mindset – to think of investing as a ‘tool’ that helps you acquire other things – then the Bing Fire can be the most consistent of investors or traders. When it comes to consistency, no other Day Master can beat the Bing Fire.
But because the Bing Fire is such a routine-driven creature, there is a need to maintain your financial toolbox. Which means, you need to regularly review and manage your financial assets. Just like maintaining tools to ensure they remain functional, need to keep making adjustments to ensure your finances are in good shape.
A Bing Fire Day Master who is educated in the nuances of investing can be a very good investor. Because Bing Fire Day Masters are big picture thinkers to begin with. You have foresight. Can see very far. Easy to see the bigger picture. What the Bing Fire Day Master needs to become a great investor, is training on how to see the ‘hidden picture’ – to consider the nuances behind recent developments.
Ding Fire Day Masters
But what about the Ding Fire Day Master? Way easier for a Ding Fire to forge metal because the Ding Fire is the real fire. As opposed to the Sun.
With the Ding Fire, there is a need to put more tools into your tool-box. If I need an axe, voila here it is. If I need a scalpel, well then here we go…
In order to forge more tools or better tools, a Ding Fire is resource reliant. Which means that, there is a need for the Ding Fire to consistently upskill.
Of course, this applies to everybody, but more so with the Ding Fire because a Fire cannot burn without fuel.
But of the two, which has less emotional attachment to money? Certainly Ding Fire. Because a Bing Fire has to go all scorched Earth to forge that Metal. Which also means that, for the Bing Fire Day Master, the easier way to make money is to use the Rob Wealth. In short, equity share. If the Stock Market is too risky, find good businesses that you can invest in. Silent partner, co-owner, those types of stuff.
EARTH DAY MASTESR (WU AND JI)
Wu Earth Day Masters
From the Wu Earth Day Master’s point of view, Wealth is something to be pooled or collected. Here, there is also a focus on accumulation and savings as opposed to spending or investing.
Imagine a huge mountain with a deep lake in front of it. For the Wu Earth, that is financial security! And because the Wu Earth is the least likely to move (coz mountains don’t move, they just sit there) we need to ensure that that lake does not dry up. Which means that there should ideally be a few streams (income streams) feeding into that lake.
I’m sure a pattern is emerging by now. Most of the Yang Day Masters so far, will tend to be more risk-averse compared to their Yin counterparts.
And because the Wu Earth by itself prizes stability, security and control, these income streams could also come from a steady but stable source. Example: gains from property investment? Rental income? Growth investing?
Now don’t get me wrong. I’m not saying that the Jia, Bing or Wu Earth Day Masters CANNOT become traders. Not at all. All I’m saying is, the Jia, Bing, Wu Day Masters will likely find it more comfortable to start by trading the fundamentals first before you venture into the higher risk higher rewards type of investing.
Ji Earth Day Masters
Then what about the Ji Earth? Think of river-banks, lush, green riverbank teeming with life, all supported by the flowing river which gives it life. Ji Earth Day Masters frequently view money as a flow. Therefore, understanding the flow of money is vital.
As opposed to the Wu Earth’s collection strategy, the Ji Earth’s view is more likely to focus on cash flow. Maintaining a healthy flow of income and ensuring that money is actively working to support their ongoing needs and goals.
In other words, more hands-on involvement from the Ji Earth.
If, to the Ji Earth, money is a stream going past, then any strategy that facilitates the transfer of goods or services, and earning a commission in return makes a ton of sense. This would be one possible way for the Ji Earth to make the flow of income bigger.
As an investor, because of this viewpoint, the Ji Earth would likely be more attracted to the types of investing that has more rewards/risk – higher risk, higher rewards type. But to do that successfully, you must expand effort to stay informed of events that could potentially impact that income flow. Better yet, learn to assess how events impact the flow of money so that you are not 100% reliant on news or analysts.
METAL DAY MASTERS (GENG AND XIN)
In the first half of this post, I made a conscious effort to separate the difference between the Yang Day Master and the Yin Day Master.
For the final two groups of Day Masters, there are similarities in between.
The Metal Day Master’s Wealth Element is Wood. Money grows on trees!
Wood regenerates, wood can be re-planted. Which means that the Metal Day Masters will both tend to be less risk-averse. Because money (literally) grows back.
Therefore, the idea would be for the Geng or Xin Metal Day Master to work around this principle of ‘harvest’. To create something that consistently yields returns. Like a farm!
Because of this viewpoint, the Metal Day Masters (as well as the Water Day Masters which we will discuss in the next segment), will likely have a stronger abundance mindset.
The trick for the Metal Day Masters, however, is to ensure that the roots are not damaged. Means, you can keep harvesting, but don’t damage the core of your business.
And plant different seeds. Let’s look at your Wealth Stars. One is a tree (Jia Wood), the other is a fast growing plant (Yi Wood). Between these two, which grows faster? The Yi Wood, right?
So there needs to be a balance in your farm or wealth ecosystem. You need to grow different crops. In terms of business, what this creates is the likelihood of a whole bunch of inter-related businesses. Same for your investment tactic. Understand fully an entire industry ecosystem.
WATER DAY MASTERS (REN AND GUI)
There’s a saying in Bazi that when a Water Day Master gets rich, they get really rich. This is the reason why. The Water Day Masters’ Wealth is limitless like the Sun!
Which means the Water Day Masters are the most adept at juggling a 50-50 portfolio between high risk and slow growth.
As you have seen from earlier in this post, not all the Day Masters can handle too much high risk. Particularly, the Jia, Bing, and Wu Day Masters. Which means you gotta be ok not to be the first at the buffet.
Now again and again, I want to re-iterate – this is just based on a Day Master’s view of their Wealth star. Just one point of information in the Bazi Chart. The modus operandi or structure of the chart can also influence your view of money.
When we focus just on the Day master, all we’re saying is – naturally, this person has this view of their Wealth star.
Therefore, the Ren Water and Gui Water Day Masters are the ones who are most naturally equipped to handle a diverse portfolio of risks – steady and consistent on the one hand; high risk/high reward on the other.
But we need to keep that financial flame going strong. Which means we will need:
1. A strong financial base – good credit score, savings, budget
2. To keep a fire strong, we need high quality fuel. When the opportunity comes, invest in high value assets. There is strong potential here to get in on the ground floor.
3. And because there is strong potential to get in on the ground floor, being the first at the buffet table, the Water Day Masters can be quite adept at igniting new opportunities by exploring new ventures, investments or business opportunities.
4. Share the warmth – when you make the money, keep a portion aside to invest in other people as well. Sharing your financial success can create a positive ripple effect.
But again, just because it is in your Chart, does not mean you will immediately succeed when you turn your hand to investing. What it means is that you have the potential to be trained to do so.
Because someone out there, might be reading this post and thinking… “why am I not rich?”
Now here comes the irony… the stronger the Water Day Master, the more risk-averse you become. Because remember? Water is equated with Fear? Too much water equals too much fear. But can you train yourself to do this? Absolutely!
Which leads us to…
COMPOUNDING: PRACTICE MAKES PERFECT
Just like everything else in life, becoming a successful trader or investor takes time and effort.
Where we invest time and effort is where we will reap rewards. If, in watching this, you are already a seasoned trader, then great. Go and acquire more ‘land’, build more tools for your toolbox, collect ‘resources’, expand your ‘farm’ to get a bigger yield, ‘ignite’ new opportunities for yourself.
But if you are someone looking to start, and you are serious about starting, I only know one way to build confidence. Start by paper trading. Right now, as I film this video, the market is volatile. Best time to learn to read trends and patterns.
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DISCLAIMER:
Disclaimer: Paulynne is NOT a Medical, Legal, Financial advisor or Councilor. She is a Bazi and Feng Shui Consultant who utilises her knowledge of Bazi, Qimendunjia and Feng Shui to look at the energy imprint surrounding events, situations or people. These readings are for ENTERTAINMENT PURPOSES ONLY and should NOT BE TAKEN as absolute proof or concrete evidence or advice. Please treat them as such and enjoy your time on the channel.
