Wealth=Wise(Investments+Strategies)

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While I was working for a business man in Asia, one of his business partners used to tell me my boss should named his company “OPM”. At that time, I did not know much about OPM. I thought might be my boss partner recognized my boss being very Westernized and should used “OPM” as the ‘AKA’ name for his company “Yuan Textile” . However, as I got to know my boss partner better, I realized OPM in fact means other people’s money in short. I think his partner was being sarcastic to my boss and trying very hard to hint to me that my boss used other people’s money to operate his business :).

Picture Courtesy of here.

Well, I realized in a subtle way, my boss has been teaching me the art and science of OPM.

I used to be the director for two of his companies, one was a franchise computer school and the other : a computer retail shop. As the school expanded in business, I needed to find more space to house my students and the computer labs. The first OPM art that my boss taught me was building lease negotiating skill. He told me to ask a 12-months free rent from the landlord for the additional shop lots that we were going to rent. When I first heard of the term ‘12-months free rent’, I thought I was choking (or at least gasping for air). However, as I swallowed the truth, I realize, I did not have any choice, it was like I either took his idea or came out with a better idea. And the reason he asked me to give to the landlord was we were (the school) the one who brought in the most traffic to the business district that we were in. We were the one who were generating the most business in that area at that time. And he made sure I let the landlord knew that it’s a privilege to rent the building to us or doing business with us, we could take our business anywhere. Well, the landlord and I met half way : ie. 6-months. That was the first time I put the art of OPM to work because it was the landlord money that we used the next 6 months.

After that he taught me to use the art of OPM in many aspects of his business (eg. suppliers, shipping vendors and others); and at times I even improvised :). At that times, I thought he was a brilliant business man not knowing in fact, he copied most of his ideas from American business men. I am sure you have heard of Dell, Amazon and many other business who use OPM on your money ! Did you pay your Dell computer first before you see it and touch your key board ? Well, if you are familiar with richdad, you probably know there is a book titled OPM (this is not a paid post).

Picture courtesy of here.

Tonight, I like to share with your an OPM joke about this not so dumb blonde story : The Multi-Millionnaire and the $5000 Loan from fastupfront.com

A well-dressed blonde woman goes into a bank in centran Manhattan and sits down to speak with the loan officer. She explains to him that she will be traveling to Europe and will need a $5000 loan. The loan officer explains that the bank will need some sort of collateral. The woman produces keys to a Rolls-Royce parked outside. She offers them to the loan manager, along with an envelope containing the car title. The loan officer agrees to accept the car as collateral. As the woman leaves, there are some snickers that she would leave a $250,000 car as collateral for a $5000 loan. One of the bank managers takes the keys and from the loan officer and drives the car himself into the bank’s underground parking.

Two weeks later, the woman comes back and repays the loan, plus $15.43 interest. As she is taking her keys back, the loan officer gets up the courage to ask the question which has been nagging at him: “While you were gone, we looked into your financial situation and we found out that you are a multi-millionnaire. Why would you need a $5000 loan?” She replies “Where else in Manhattan can I leave my car for two weeks, still have it be there when I get back, and only pay $15.43 for parking?”

Who said blondes were stupid?

Do you have your own OPM story to tell ? I love to hear from you ! I am sure all of us can learn one thing or another from the art of OPM.

Tags: Investment //