Cheung Michael M. K. - Sun Tzu The Art of Making Money: Strategies for Getting Through a Tough Economy

Id like to take this opportunity to thank my family, friends and the people I have both worked with and who have all contributed greatly to the events in my life.

I would like to thank my copy editor Karen Carter, without her hard work and dedication to the project this book would not have been finished on time.

I would like to thank Sun Tzu for his wisdom and insight and Lionel Giles for his translation of The Art of War into English in 1910.

Finally I would like to thank my wife Ally for a lifetime of love and commitment.

In searching for the secret to how to improve my life by making more money, I came across the ancient wisdom of Sun Tzu. Sun Tzu was a general who lived in northeastern China around 2,500 years ago and was a master of military tactics. Such was his genius that his military tactics and thoughts eventually were put into writing so they could be passed down to other generations to come. Although the famous book, The Art of War, deals with situations on the battlefield and how one should apply them to a given situation, there is much wisdom in it that can be put to great use by those striving to be successful in modern life.

Even though much has changed since the time of Sun Tzu, we remain subjected to key forces that existed then. The human spirit and its strengths and weaknesses are still present, and the same forces of nature and economic cycles are still with us. While the names and faces have certainly changed, the game of success is still the same as it was 2,500 years ago.

Sun Tzu The Art of Making Money details how the ancient warriors codified strategies can be leveraged so anyone can benefit from his wisdom.

Success is often measured by the amount of money one has, and money doesnt generally appear by chance. Most of us have only what weve managed to save. But the truth is even just $100 and the will and passion to choose your own destiny represent a pretty good place to start.

If you master just a fraction of Sun Tzus wisdom you will be able to effect significant changes in your life.

I hope you enjoy reading and learning from the wisdom of Sun Tzu and wish you good luck in your future, wherever it may take you.

Michael M. K. Cheung

London

Sun Tzu said:The art of war is of vital importance to the State or nation.

It is a matter of survival, that of life and death, a road either to safety or to ruin.

Therefore it is a subject of inquiry which can on no account be ignored.

The art of making money is of vital importance to the well-being of your bank account.

It is a matter of survival. Without cash in the bank you are exposed to the rough elements of the world in which you live. You must study the best ways for you to earn, save, and invest money if you wish to prosper.

Sun Tzu said:The art of war has five factors that one must consider when looking at the situation that is placed in front of him in life:

(1) The Moral Law

(2) Heaven

(3) Earth

(4) The Commander

(5) Method and Discipline

The MORAL LAW causes the people to be in agreement with their ruler so they follow him regardless of any danger they might face.

HEAVEN signifies times and seasons, day and night or hot and cold.

EARTH relates to the terrain and distances, danger and security, narrow passes or open ground, and the chances of life and death.

The COMMANDER stands for leadership that embodies attributes of wisdom, courage, kindness, and firmness.

METHOD AND DISCIPLINE relate to the chain of command and proper use of resources.

You are at your best and most successful when you follow your passions and interests, your own Moral Law. Only then will your head and heart work as one. You are doing what you really want to do in life when you are focused solely on the task at hand. You wake up every morning feeling alive and buzzing with energy. When you are in agreement with your ruler (i.e., your head and your heart) you are ready to take on any challenge and can identify and succeed at the job thats best suited for you. Finding this perfect fit and earning income through it is the ideal way to fund your aspirations for wealth and success.

Scholars of the art of making money carefully consider the workings of economic cycles. In the same way Heaven provides seasons, economic cycles provide changing economic times that fluctuate between boom and bust. Before you can take action regarding your finances, you must observe where you are in relation to the economic cycle. Are you in boom times or bust times? Once you know this you can develop an appropriate action plan.

When in bust times, the passages you navigate on Earth narrows and you must play it safe so you do not lose what you have accumulated during the boom times. Rather than take foolish risks with your capital during bust times, plan to buy quality defensive stocks such as pharmaceuticals, tobacco, food and beverages, and utilities rather than risky tech or other trendy stocks. Dont put all your money in one stock or sector as you build your platform of financial stability.

Also avoid working for the same company for a long time, expecting them to look after you into old age. Do something else on the side to build up your passive income streams and ensure that your skills dont become obsolete, and keep networking outside your company so you can explore better opportunities as they arise.

You are the commander of your life, no one else. Dont blame others for failings youve experienced. If things are not going well, the only one responsible is you. As your own commander, you have the right to learn from such past mistakes and take steps to improve yourself and your life going forward.

Remember the Serenity Prayer; work every day to change the things you can change and accept those you cannot change.

When working toward positive change, watch what falls to the bottom line.

Take for example Joe, an average office worker. He brings home $1,000 a month, but spends $1,000 a month. What is his bottom line? Zero, zilch, nothing.

Dont be like Joe. Cut unnecessary expenses during bust times. Even during boom times, make a budget and stick to it. Abandon short-term self-gratification and avoid compulsive purchases such as an iPad and expensive running shoes or regular budget-breakers such as going out for dinner or drinks. Save extra cash instead to build a war chest for buying stocks and creating passive income streams.

When funds are available, Method and Discipline require the proper use of such funds. A key concept here is the triangle of wealth, also called the pyramid of wealth.

The base of the pyramid of wealth is the foundation of your wealth that keeps you afloat. The Protection element includes wills and various forms of insurance to cover health, property, life, disabilities, etc. This foundation should be put in place before you begin to accumulate wealth.

Wealth Accumulation