Category Archives: Money

Back To Frugality

I’m right here at Durdans Hospital since Mum has to get a blood test. I’ve been thinking how I need to be frugal once again. I do save one way or the other but these few months I’ve been spending a bit too much on clothes, shoes, perfumes, spa treatments,  dinner outs and presents for this one and that one. I don’t regret any of these since I needed new clothes since I lost weight. Plus I enjoyed all the experiences my purchases offered me.

But one cannot be blind to the future and I do feel it will be bleak. I keep hearing how the end of 2013 will herald in a new financial depression. As it is the cost of living is rather steep. This is not going to get better. I understand why people are annoyed with the ruling powers. There is so much that needs to be done. But having lived 30 odd years, I can say, you cannot trust any government, company, bank or person. It is up to you to create a better future for yourself.

The good times never last but neither do the bad times. We need to prepare for the latter. I’ve always been told to save and I have. I enjoyed frugality and still do. But it is easy to get influenced by people and their lifestyle and you try to emulate them too. Recently I wanted to purchase a BMW and I was shocked that I had such a desire. I can’t afford one. I looked at my expenditure per month for the last 6 months and I was somewhat dismayed, even though I could afford to spend.

I just read that the money you don’t spend will be there with you forever. The money you do spend is gone forever. I’ve lived it up and had my fun. It’s time to be Frugal Ro once again. I remind myself of how much I suffered to be where I am financially. I must respect that and start saving once again. It’s easy to lose focus but I know I mustn’t. It’s easy to get swayed by the fancy cars and fancy brands been forced into your consciousness. What I remind myself is that these people are rich beggars. The Merc is on lease, the clothes via credit card and there’s nothing in the bank. What a way to live.

A Letter By Lee Kuan Yew’s Daughter…

So my Dad forwarded an email to me. It is supposed to be a letter written by Lew Kuan Yew’s daughter. I thought I would share it in a post since it is something that I have been thinking about as well. I also believe her words will help you see things differently and change your outlook too.

Article written by Lee Wei Ling

In 2007, in an end-of-year message to the staff of the National Neuroscience Institute, I wrote: “Whilst boom time in the public sector is never as booming as in the private sector, let us not forget that boom time is eventually followed by slump time. Slump time in the public sector is always less painful compared to the private sector. Slump time has arrived with a bang. While I worry about the poorer Singaporeans who will be hit hard, perhaps this recession has come at an opportune time for many of us. It will give us an incentive to reconsider our priorities in life.Decades of the good life have made us soft. The wealthy especially, but also the middle class in Singapore, have had it so good for so long, what they once considered luxuries, they now think of as necessities.A mobile phone, for instance, is now a statement about who you are, not just a piece of equipment for communication. Hence many people buy the latest model though their existing mobile phones are still in perfect working order. A Mercedes-Benz is no longer adequate as a status symbol. For millionaires who wish to show the world they have taste, a Ferrari or a Porsche is deemed more appropriate.The same attitude influences the choice of attire and accessories. I still find it hard to believe that there are people carrying handbags that cost more than thrice the monthly income of a bus driver, and many more times that of the foreign worker labouring in the hot sun, risking his life to construct luxury condominiums he will never have a chance to live in.The media encourages and amplifies this ostentatious consumption. Perhaps it is good to encourage people to spend more because this will prevent the recession from getting worse. I am not an economist, but wasn’t that the root cause of the current crisis – Americans spending more than they could afford to? I am not a particularly spiritual person. I don’t believe in the supernatural and I don’t think I have a soul that will survive my death. But as I view the crass materialism around me, I am reminded of what my mother once told me: ‘Suffering and deprivation is good for the soul.’ My family is not poor, but we have been brought up to be frugal. My parents and I live in the same house that my paternal grandparents and their children moved into after World War II in 1945. It is a big house by today’s standards, but it is simple – in fact, almost to the point of being shabby. Those who see it for the first time are astonished that Minister Mentor Lee Kuan Yew’s home is so humble. But it is a comfortable house, a home we have got used to. Though it does look shabby compared to the new mansions on our street, we are not bothered by the comparison. Most of the world and much of Singapore will lament the economic downturn. We have been told to tighten our belts. There will undoubtedly be suffering, which we must try our best to ameliorate. But I personally think the hard times will hold a timely lesson for many Singaporeans, especially those born after 1970 who have never lived through difficult times. No matter how poor you are in Singapore , the authorities and social groups do try to ensure you have shelter and food. Nobody starves in Singapore. Many of those who are currently living in mansions and enjoying a luxurious lifestyle will probably still be able to do so, even if they might have to downgrade from wines costing $20,000 a bottle to $10,000 a bottle. They would hardly notice the difference. Being wealthy is not a sin. It cannot be in a capitalist market economy. Enjoying the fruits of one’s own labour is one’s prerogative and I have no right to chastise those who choose to live luxuriously. But if one is blinded by materialism, there would be no end to wanting and hankering. After the Ferrari, what next? An Aston Martin? After the Hermes Birkin handbag, what can one upgrade to? Neither an Aston Martin nor an Hermes Birkin can make us truly happy or contented. They are like dust, a fog obscuring the true meaning of life, and can be blown away in the twinkling of an eye. When the end approaches and we look back on our lives, will we regret the latest mobile phone or luxury car that we did not acquire? Or would we prefer to die at peace with ourselves, knowing that we have lived lives filled with love, friendship and goodwill, that we have helped some of our fellow voyagers along the way and that we have tried our best to leave this world a slightly better place than how we found it? We know which is the correct choice – and it is within our power to make that choice. In this new year, burdened as it is with the problems of the year that has just ended, let us again try to choose wisely. To a considerable degree, our happiness is within our own control, and we should not follow the herd blindly.”

5 quirky Saving Tips from Former Bosses

How I looked at money completely changed the day I read Rich Dad Poor Dad, especially since I worked for 5 bosses who (despite spending millions just the way they wanted) had some quirky saving habits, which in most quarters would have raised eyebrows. So while their quirky (or not-so-quirky) ways are revealed below, their names have been changed to ensure their reputation for such shameful cheapness is safe and sound.

Cheap shoes for me, please!

He spends U$$ 4,000 on just one night in a boutique hotel but simply refuses to spend anything above U$$ 25 on a pair of shoes. His argument? I rather spend good money on something that is rare and unique than these fancy branded shoes that end up biting dust after just one year.

Who cares about designer stubble?

This former boss of mine drives a U$$ 350,000 Range Rover, which has all the right bells and whistles. But while he is addicted to his toys, he never spends more than U$$ 2 for a haircut. His argument or rather his question is – Why would I spend U$$ 50 for someone to cut my hair?

No way am I spending more for just a seat!

I would have thought that this boss of mine who ran a retail clothes company would have loved to travel in comfort. Clearly not. While he always made a big show of whipping out his Platinum HSBC card, he always ended up booking Economy seats, whenever he travelled.

Island coffee will suit me fine!

A former lady boss of mine drove a sweet-looking Mercedes, spent thousands of dollars on trips abroad, diamond jewellery, fusion cuisine and designer clothes. But she scoffs at the idea of drinking coffee at Starbucks or Coffee Bean. Why? Because “these places” are way too expensive for a cup of coffee.

When is the next year-end sale?

He runs a multinational company with thousands of employees. He has got a soft spot for golfing and Cuban cigars. Still he manages to run with the rest of the bourgeoisies to the year-end clothes sales.

While I have always been a person to save as much as I can, I’d be lying if I said I did not learn something from these corporate leaders. For sure, the way they spent on certain things may seem like madness to some but I realized it is all to do with (1.) their net worth, and (2.) perceived value. For instance, if my net worth is U$D 15 million, spending a little under half a million dollars on a European sports car is not much in the grand scheme of things.

I would love to hear about any zany saving tips that have worked well for you, and you are most welcome to share your thoughts in the comment box below. I am not here to judge or to preach but as the recent recession showed, it would be prudent to save as much as you can. After all, as Eliza Davison (John D. Rockefeller’s mother) warned – Willful waste makes woeful want.