Grow Rich Singapore Style by Alfred Chia by GMSPL Pte Ltd

Do you want to make more money? If you want to be rich, where do you start?

From the author of Mortgage And Grow Rich, Alfred Chia is the CEO of SingCapital Pte Ltd, an MAS-licensed financial advisory firm. For more information on SingCapital Pte Ltd, visit www.singcapital.com.sg.

your life; If you answered “YES!” to one or all of the questions above, Grow • What you can do to grow your Rich Singapore Style is for you. riches as an employee; Divided into 16 comprehensive • The kind of protection you chapters, this book will: need for yourself; • Give you the true • The true role of CPF in wealth understanding of money; accumulation; • Help you understand why you • The different types of want to be rich; investment vehicles that can • Empower you to set your own help to grow your money; and money goals; • How to use your property as a • Reveal the 8 mantras to springboard to greater wealth. wealth; Jam-packed with real-life • Help you to understand how Singapore examples, this book will to make money flow more be the catalyst to growing your smoothly into your life; and wealth. • Give you the power to control • Want to grow rich but don’t your spending. know how? And that’s not all! As the ultimate • Is money never enough for book on wealth for Singaporeans you? by a Singaporean, this Get Grow Rich book will reveal: Singapore Style • How LESS is more now! BONUS! when it comes to TDSR money; Framework! ISBN 978-981-07-9352-4 Summary of • What you should do property at each phase of cooling 105327 barcode.pdf

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LFRED CHI ALFRED CHIA

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GROW R I C H

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measures!

GROW RICH SINGAPORE STYLE

Do you want to accumulate more money?

Let me make a wild guess! If you are flipping through the pages of this book, there are a few things I can infer about you:  You are making a comfortable living, but you would like to make more MONEY in the short and long run.  You are not making a comfortable living, and you would really want to make more MONEY in the short and long run.  You already have a lot of money, and you don’t mind having more MONEY in the short and long run.  You already have a lot of money, and you would really want to have more MONEY in the short and long run.  You are really bored, and you are just flipping through the pages of this book because you have nothing else better to do. Whichever category of people you belong to – and even if you don’t belong to any of the above categories – there are a few things that relate to MONEY that MUST relate to you. 1. Money is NEVER enough. 2. It is ALWAYS better to have MORE money. 3. You would rather have more money NOW than more money later. If you want to:  MAKE MORE MONEY over the course of your lifetime  ACCUMULATE MORE MONEY over the course of your lifetime  SECURE MORE STREAMS OF INCOME over the course of your lifetime  SEE YOUR WEALTH GROW over the course of your lifetime  BE INCLUDED IN THE RANKS OF THE RICH over the course of your lifetime THEN, THIS BOOK IS FOR YOU. Written by somebody who knows a lot about money and how to grow money, this book is the surest and quickest guide for anyone who wants to make, accumulate and grow your money over time.  Do you want to make more money?  Do you want to accumulate more money?  If you want to be rich, where do you start?

THIS IS THE PLACE TO START! G

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Divided into 16 comprehensive chapters, this book will:

Chapter 1

Chapter 2

Chapter 3

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Give you a basic understanding of money. Both you and I, and the uncles who sit at the kopitiam to complain day and night about the government, all want money. Yet, none of us really stop to think what money really is, and what it is all about. Wait! Before you set this book aside and assume that it is just another textbook on economics, let me reassure you that it is not. Instead, by understanding what money REALLY IS, you will be able to form a better relationship with it, and thereby attracting more of it into your sphere, your wallet and your bank accounts. Help you reach the deepest depths of your psyche to uncover the real reasons why you want to grow rich. Without a compelling reason, you will NEVER, EVER, become rich, even if you know the most complicated methods of growing your money. But beware: you might accidentally discover that you are a PERVERT in the process. (And therein lies the inherent danger of delving into your subconscious. You might realise some things that you really don’t want to know. But we don’t have much of a choice here: if we don’t do this step, you can’t get rich.) Lead you to set your OWN money goals. Some get by at $1,000 per month while others are broke at $10,000 per month. What is considered enough for you? To be truly rich, you need to set your OWN money goals, and not blindly adopt the goals of others. (I have a friend who can get by at $40 a month; by the way, he is a poet.)

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Bestow upon you the power of the 8 mantras. Contrary to what movies would want you to believe, mantras are not just for Tibetan monks and ninjas who want the ability to remain invisible when their enemies attack [how good would it be if one can become invisible if the Ah Long (aka Loan Shark) comes]. Instead, mantras can be very helpful if you want to remember the principles of becoming rich. Thus, if you want to grow rich, memorise and recite the 8 mantras in this chapter. Assist you in getting your money to flow smoothly in your life. For most people, money flows OUT of their lives too quickly, too fast and too unknowingly. Knowing how to smoothen the flow, as well as controlling the flow, is the key to accumulating and growing your money over time. Put you in a position of POWER where you get to control your spending, and not become a victim of it. Think about it this way: there is basically only one way to get rich, and that is to EARN MORE, and SPEND LESS. If you havenâ&#x20AC;&#x2122;t discovered, this will be the pivoting principle throughout this whole book. Show you how the rich control their expenses by creating a clear segregation between needs and wants. Ordinary people find it easy to lose control over the way they spend their money. Rich people know that they should always be in control, and you need to learn that. Hiding all your cash under the pillow wonâ&#x20AC;&#x2122;t stop you from wanton spending. And neither will tying up your hands help.

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Chapter 8

Give you an in-depth understanding of the financial blueprints of the rich. Rich people handle money differently from average and poor people. If you aspire to have lots of money in your hands and in your bank, you will need to learn from the rich and handle YOUR money the same way THEY handle their money. Are you willing to have a HAND in your own money? If the answer is ‘yes’, put your hands in your pocket now and get the money to buy this book. Chapter 9 Answer the age-old question: Is starting your own business the ONLY way to becoming rich, and are you DOOMED to a life of average means if you are working for someone else? See for yourself how average, working adults can become rich, if only they will start early and adopt a proper system. Rich people are not necessarily ‘towkays’, and ‘towkays’ are not necessarily rich. Chapter 10 Once you have yourself in order, it’s time to show you how you can provide and protect yourself, for your loved ones. Having set yourself on track to becoming rich, are you going to risk it all without having the right insurance? You could be earning millions of dollars, and protecting yourself – the way the rich do – makes a difference in the long run.

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Chapter 11

Chapter 12

Shed light on the role of the Central Provident Fund (CPF) in your journey to growing rich. If you have been grousing that you don’t see your income because 20% of your income goes to the CPF, think again. The government of Singapore has foreseen a long time ago that the average Singaporean needs to be FORCED to save, and thus, EVERY Singaporean – regardless of race, language or religion – is DESTINED to become rich, because the SYSTEM has already been CREATED for you to get rich, regardless of your start point. And that’s why you and I should be proud of being a Singaporean, REGARDLESS of our party affiliations. (It is obvious that this book is written after 2011. Prior to 2011, this clause would have been unnecessary.) Introduce you to the various investment vehicles through which you can grow your money. Should you be placing your money in stocks and shares, or should you purchase a huge bungalow such that you can sell that bungalow at a hefty profit at a much later date? Just because the ‘kaypoh’ uncle next door is investing in Emus doesn’t mean you should be doing the same thing. The reason is simple: not everyone is a ‘bird man’ (Say this in Hokkien if you are Chinese and you will understand. If you are a non-Chinese or you aren’t that proficient in Hokkien, please ask someone who does because it is really worth the effort. The extra effort that you put into this exercise can put you on the path to success in your journey to growing rich.).

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Chapter 13 Help you focus on a specific form of investment – unit trusts. Investing in properties or stocks on a big scale can be an intimidating task for someone new to the journey to riches, but this is investment in bite-sized portions. Think baby steps as you journey to wealth and investing. (Not that I’m calling you a baby; the fact that you are reading this book shows that you are serious, evolved, and a grown-up willing and ready to take care of yourself.) Chapter 14 Provide real-life examples of how ordinary Singaporeans who are NO MORE capable than you are, NO MORE beautiful than you are, NO MORE handsome than you are, NO MORE educated than you are, and NO MORE ______________ (please fill in the blank with your own word) ARE making more money each day and putting themselves on the path to growing rich. Chapter 15 Give you an understanding of what a Financial Consultant does and how a Financial Consultant can assist you in making, growing and accumulating more money over the course of your lifetime. Everyone needs a coach if he or she is to be successful in what he or she (or anyone else in between) does. In the history of mankind, there has been no human being who has succeeded in the Wimbledon championships by playing tennis on the Nintendo Wii console (though it is a really cool device to have. But before you spend money on that, I suggest that you spend some money on this book, learn the principles of money management and growth, before deciding on buying the Wii.) You need a coach, a really good coach to help you to do that. And that’s what a SingCapital Financial Consultant will do.

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Chapter 16 Trigger in you the desire to act on your financial dreams. What use is reading this book and doing nothing about it? It’s nice and good to read a book on how to swim, but unless you jump into the water and start practising the strokes – hopefully under the guidance and supervision of a good coach – your ability to “navigate the waters” can only “exist on paper”. How uncool is that? In the same way, it is also nice and good to read a book on growing rich, but unless you buckle down to do something about it, your dream of becoming rich will only remain as that – a dream. Chapter 17 Introduce you to partners that you might not have looked at before. The same way no journey would be the same without a good partner, this book would not have been the same without our partners. Here’s the introductory handshake so you know that these people have your interests at heart too. So:  Do you dream of becoming really rich one day?

(There’s a reason why I will really emphasise on the word really. Have you met, or know of someone who looks really rich – with all the trappings of a huge, branded car, expensive shirts, premium pens etc – but owe every single cent they earn to the bank? That’s not being rich; that’s being stupid. I don’t apologise for sounding offensive because that’s my frank opinion.)

 Do you want to become really rich one day?

(Again, there’s a reason why I will emphasise on the word want. A want is stronger than a dream. A want provides the emotional power to propel you forward to achieve your dreams. As strange as it might sound, there are people on earth who don’t really want to become rich. Hermits in India, saints in Europe, and Taoist priests staying in the deep recesses of the Wudang mountains in China have been G

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rumoured to be able to live on air and water, and the occasional food. They live in landed properties such as caves and huts. Believe me: I actually believe that such people actually exist. But also believe me: unless you are one of them – and chances are, if you have read this far, you are NOT one of them – you would want to become really rich one day.)  If you want to become rich, when do you start? (You might think that this is pretty obvious, but as a Financial Consultant myself, I have seen my fair share of individuals who have consistently — well, at least they are consistent — put off the need to get their finances in order. Like it or not, time is money where your finances are concerned. The longer you wait, the lesser your chances of making it rich. So start NOW, and start TODAY!)

Further Reason Why You Should Buy This Book Graduate of the National University of Singapore. Certified Financial Planner (CFP), Fellow Chartered Financial Planner (FChFP) and Chartered Financial Consultant (ChFC). Approved trainer for Real Estate Salespersons (RES) courses by the Council of Estate Agencies (CEA), lecturer for Chartered Financial Consultant (ChFC) programme. Creator and Chief Trainer for ‘Singapore Accredited Mortgage Planner™’, a popular programme for real estate professionals and financial planners. Regular radio show consultant when UFM 1003 ran its programme ‘星期二理财节目’ (Manage Your Finances Tuesday) and author of ‘Mortgage And Grow Rich’, the one and only guide anyone will need to manage their mortgage and money. Meet Alfred Chia, CEO of SingCapital Pte Ltd, a leading MASlicensed Financial Advisory Firm, the voice of “I” throughout this entire book. With more than 22 years of experience in helping people realise their financial dreams, Alfred is the guru you should consult if you want to accumulate more wealth and money. And here’s more. Other than his expertise in the field after more than two decades of exposure, Alfred is passionate about what G

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he does because of a life-changing experience involving money and the catastrophes of money mismanagement. Having gone through such an ordeal, Alfred has now become a Financial Evangelist, fervently spreading the message of financial planning, mortgage management and asset protection. Let Alfred:  Help you uncover your true motivations for growing rich  Assist you in setting your money goals  Understand that there is a uniquely Singaporean way to growing rich  Fathom the secret to how the rich organise their money  Inculcate in you the mindset and mental models of the rich and wealthy Want to know more? (YES!)

READ ON! (Alfred will tell you more about his adventures with money in a later chapter.)

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ACCOLADES

A commendable job. A book that teaches you everything about money and how to grow it. Readers will be amazed how simple steps taken or not taken today can mean how their financial stories will look like tomorrow. Amy Seok, Principal Consultant, Money Compass, Universal Media Publishers (M) Sdn Bhd

This book gives an account of the money challenges that Singaporeans face. It helps you prioritise so that you can live a happy and fulfilling life without being a slave to money. Uniquely Singapore! Christopher Lee, CEO, ShareInvestor Group

The secrets and wealth strategies of Singaporeans have been revealed here in this book. Two thumbs up! Kee Wah Soong, CEO of Premier Financial Adviser Sdn Bhd, Principal of Premier Property Sdn Bhd, Vice President Of Association Of Financial Adviser Malaysia Past President of Malaysia Financial Planning Council MFPC

In times of rising costs of living, it is all the more important for everyone to be methodical about how they handle their own money. Nowhere else in history has prudence in money management been more important, and this book is all that you need to kickstart this habit of prudence and wisdom in spending. Lance Tay, CEO, Tokio Marine Life Insurance Singapore Ltd

I like the premise of Alfredâ&#x20AC;&#x2122;s book, which is written in an easy-to-read format. I find this book to be one of the most down-to-earth money-management books that I have read. G

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Patrick Tan, CEO, Fortis Law Corporation

Peter Huber, CEO, Zurich Life Insurance (Singapore) Pte Ltd

Many people want to grow rich but they do nothing about it. This is one book that will get you thinking why you want to grow rich and show you how to go about doing it. Rayney Wong Lawyer Property investor Author of bestselling book “Secrets of Property Millionaires”

Money doesn’t grow on trees... unfortunately! In this excellent new book from Singapore’s very own Money Guru, Alfred shows that anyone can grow their wealth regardless of their current position. It is written in a friendly, clear and simple way with practical steps that any layman can understand and adopt. Steve Melhuish, CEO & Co-Founder, PropertyGuru Group

I’ve known Alfred for over 5 years. He’s honourable, knowledgeable, down-to-earth, and connects well with people from all walks of life. He is also an effective teacher, and in his new book, “Grow Rich Singapore Style,” he elucidates both simple and profound aspects of wealth planning to ordinary men and women who need to hear his homey advice on how they can build, sustain and grow their finances along the different stages of life’s journey. Read it and help yourself to its practical wisdom.

ACCOLADES

If there is one money classic that everyone has to read, this book has to be it.

Tay Kah Poh, Chairman, SAEA Limited

If you are confused about investments, savings and the right kind of insurance that you should get, read this book. Vinod Nair, CEO, MoneySmart.sg G

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ACCOLADES

Most books that I have read about how to grow our wealth have been too general to be useful. This book, however, has shown me how exactly I can go about growing our hard-earned money. This is indeed the best book ever written about the topic. Eric Ng, Director, Vision Law LLC

Through whimsical stories and a relatable local context, Alfred makes fundamental economic concepts and financial planning easily understood by Singapore’s general public. K Anparasan, Partner, Litigation & Dispute Resolution Department, KhattarWong LLP

As the old adage says, “Give a man a fish and feed him for a day. Teach him how to fish and feed him for a lifetime.” This book won’t give you money; it will teach you how to accumulate and grow your money. Jeff Foo, President, IEA

Once again, Alfred has charted new frontiers in financial education in this much-awaited book. Through simple explanations and illustrations, Alfred has shown how growing rich and wealthy is a dream that can be achieved if you know how to execute the steps. Stella Tan, CEO, Tenet Sompo Insurance Pte Ltd

If money can only be made by hardwork then you are overly conservative. Master the art of financial success through many simple means and benefit from “artwork”. Subra M Suppiah, Lawyer and Speaker G

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SINGAPORE S T Y L E ALFRED CHIA

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First Published: July 2014 Published by: SingCapital Pte Ltd Author: Alfred Chia Email: alfredchia@singcapital.com.sg ISBN 978-981-07-9352-4 Copyright © 2014 Alfred Chia Typeset and Cover Design by: RedWordTree Pte Ltd (www.redwordtree.com) Publishing Consultant: RedWordTree Pte Ltd (www.redwordtree.com) Editing by RedWordTree Pte Ltd (www.redwordtree.com) All Rights Reserved. No part of this publication may be reproduced or copied in any form by any means – graphic, electronic or mechanical, including photocopying, recording, taping or information retrieval systems – without written permission of the author. Conditions of Sale: This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publisher’s prior consent in any form of binding or cover than that in which it is published and without a similar condition including this condition being imposed on the subsequent publisher. Disclaimer: While every reasonable care has been taken to ensure the accuracy of information printed, no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The ideas, suggestions, general principles, examples and other information presented here are for reference and educational purposes only. This book is not in any way intended to give investment advice or recommendations to buy, sell, or lease properties or for any form of investment. The author and publisher shall have no liability for any loss or expense whatsoever relating to investment decisions made by the reader. Printed In Singapore G

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people for their support through these many years. This book would not have been possible without you. My wife and my 3 beautiful children Clients, Colleagues and Partners who have been there for me all these years, especially those from SingCapital Pte Ltd And my book consultants Lee Lin Cher and Lui Natasha Amanda of RedWordTree Pte Ltd.

ACKNOWLEDGEMENTS

I would like to thank the following

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SingCapital Wealth Management Seminar 2014

SingCapital Wealth Management Seminar 2012

SingCapital Wealth Management Seminar 2011

S Renow the

SingCapital Wealth Management Seminar 2010

The Dedicated Team Behind Our Annual Wealth Management Seminar

Mortgage and Grow Rich Book Launch 2011

Special Moment With Other Renowned Singapore Authors at the Mortgage and Grow Rich Book Launch

KEO Forum 2013 Investment Update at Tanglin Club for Accredited Investors

Fund Presentation to Accredited Investors 2014

Alfred speaking at STProperty Seminar August 2013

STProperty Seminar August 2013

STProperty Seminar March 2013 Alfred speaking at STProperty Seminar October 2013

SAMP Graduation 2012

ation to rs 2014

CPD Courses in progress

SAMP Networking Session organised by SAEA

Our Financial Consultants supporting the training session

Together with the dedicated staff of SAEA

Millionaire In U Programme, a Financial Education Programme for the General Public, organised by LMA

Our Financial Consultant, Adeline, at work with the Participants in MIU

Our Financial Consultant, Alson, at work with the Participants in MIU The Achievers in MIU SingCapital Gathering Session with Colleagues and Partners

Why Do You Want To Become Rich When You Can Just Sit And Relax At The Coffee Shop, Market Or The Void Deck All Day Long?..................................................31 Question: What Is Money?................................................................33 A Short History Of Money............................................................... 34 And Money came To The Rescue...............................................35 Major Money Trivia................................................................................36 A Seashell Money Story.....................................................................36 How Ji Lao, Ah Mu And Bananas Man Might Really Have Experienced The Modern Money System.......................................................................37 What Money Really Is..........................................................................38 What Money Can Do For You......................................................38 Exercise: The Top 10 Things I Will Be Able To Do, Have And Become If I Had More Money.................................................................................41 What Money Means To You, Me And Some/Most Other People..................................................................42

CONTENTS

Chapter 1

Chapter 2 Why Decide To Have More Money In Your Wallet, Bank Accounts And Under Your Mattress When You Just Need Some Money To Survive....................................................................................49 What Money Can Really Do For You......................................53 The Power Of Choice And The Power Of Decision..................................................................................54 Exercising The Power Of Choice For Yourself.....................58 Must-Haves And Good-To-Haves................................................59 Exercising The Power Of Choice For Your Loved Ones............................................................................60 G

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Money gives you the power to decide for your loved ones.............................................................62 Exercising The Power Of Choice For Society At Large.............................................................................63 I Want To Grow Rich For My _____ So Thatâ&#x20AC;Ś.........................65

Chapter 3 How Much Do You Need In Your Wallet, Bank Accounts And Under Your Mattress To Become Really, Really Rich?.....................................................69 Second Part Of The Story..................................................................71 Broke At $1,000, Broke At $10,000, Broke At $100,000....................................................................................72 Poor At $10,000, Rich At $2,000................................................... 76

Chapter 4 How Reciting The 8 Secret Mantras Will Help Accelerate Your Journey To Prosperity..................................... 81 Mantra #1: I earn more than what I spend........................82 Mantra #2: I take steps towards cutting down on my bad debt........................................................................83 Mantra #3: I increase assets, I reduce liabilities, all the time, every time........................................................................84 Mantra #4: I strive to always have at least 3 â&#x20AC;&#x201C; 6 months of cash reserves......................................................86 Mantra #5: I set a monthly budget and I stick to it!......................................................................................... 87 Mantra #6: I invest regularly in the right vehicles................................................................................88 Mantra #7: I commit myself to continual learning and self-improvement in the field of finances and investments................................................89 G

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Mantra #8: I take reasonable steps to insure myself against the contingencies of life, both for myself and my loved ones...........................................91 All The 8 Mantras ...................................................................................92

Chapter 5 How To Make Your Money Flow As Smoothly As 4-3-2-1....................................................................... 97 Sounds Familiar?.......................................................................................99 Mistakes That Pok Kai Made...........................................................99 How Pok Kai Managed To Turn His Finances Around.....................................................................................100 New Dawn..................................................................................................104

Chapter 6 How To Spend Less, Keep More And See Your Money Grow Over Time............................................ 107 Why Most Rich People Don’t Buy Montblanc Pens............................................................................. 110 The Magic Word The Rich Use To Resist Lavish Spending..........................................................................111 Prudence: It’s Both A Mindset And A Principle...........................................................................................111 Branded Goods – Opportunity Cost Of Investment................................................................................ 113 How Drinking 3 Cups Of ‘Kopi Siu Tai’ Per Day Can Make You $450 Richer Per Month.................................................................................... 113 Ismail Gafoor – Fun Comes Later...............................................117 How Do I Break Free?........................................................................ 119

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Chapter 7 How To Tell A Need From A Want, And How Knowing The Difference Can Make You Rich............................................................................. 123 Exercise: The Needs Vs Wants Test........................................... 125 Defining Needs, Resisting Wants................................................ 128 How To Use The 3+3 Questions To Save More Money......................................................................... 131 Needs And Wants: The Money Maker And Breaker.............................................................................. 132

Chapter 8 How Seeing Your Life In Phases Can Make You Rich And Wealthy Over Time............................................. 137 Life Financial Phases............................................................................ 141 Life Financial Phase: Wealth Protection................................143 Life Financial Phase : Wealth Accumulation......................146 Life Financial Phase : Wealth Preservation......................... 149 Life Financial Phase : Legacy.......................................................150 Take Care Of The Life Financial Phases, And You Will Grow Rich.................................................................... 151

Chapter 9 Why The First Business You Should Invest In Is The Business Of YOURSELF................................................155 An Employee Can Make It Rich Too!..................................... 156 Every Job Gives You A Chance To Become Rich...................................................................................... 157 I: Gain a foothold in real estate with your first HDB flat......................................................................160 G

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II: Manage your finances well by being prudent in your spending and saving sufficiently........... 161 III: Ride on the country’s economic growth over the years......................................................................... 161 IV: Use your current HDB property to springboard to other properties................................................. 162 V: Be protected with insurance and invest in the right investment tools........................................................... 162 VI: Leverage on your CPF for both investments and savings................................................................... 162 VII: Combine your CPF with cash resources and investment returns for a steady retirement.............163 Invest In Yourself To Make It Singapore Style.......................................................................................166 Employees Can Grow Rich Too!.................................................168

Chapter 10 While We’re Still Talking About You, We Need To Talk About Insurance............................................ 171 Whole Life................................................................................................... 172 Endowment................................................................................................. 173 Term................................................................................................................. 173 Investment-Linked Policy (ILP)....................................................... 174 Just Like A Japanese, Korean, Or Taiwanese Drama…........................................................................176 So, How Much Of What Insurance Do You Need?.......................................................................................... 178 INSURANCE PREMIUM EFFICIENCY....................................... 179

Chapter 11 Why CPF Brings Sexy Back, Why You Should Be Happy With Forced Savings, Why The Rich Love It...........................................................................187 Forced Savings? That’s A Good Thing..................................... 191 G

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Life – The Game..................................................................................... 192 Level 1: When You Start Working............................................... 194 Ordinary Account (OA)..................................................................... 194 Special Account (SA)........................................................................... 196 MediSave..................................................................................................... 196 MediShield...................................................................................................198 Dependants’ Protection Scheme (DPS)................................. 199 Education Loan......................................................................................200 Nomination................................................................................................. 201 Level 2: Getting Married.................................................................. 202 CPF For The Home.............................................................................. 202 Home Protection Scheme (HPS)................................................204 Nomination................................................................................................206 Level 3: Congratulations! You Have A New Baby!......206 MediShield.................................................................................................. 207 Nomination................................................................................................ 207 Level 4: Wealth Accumulation!....................................................208 CPF Investment Scheme (CPFIS)...............................................208 2nd Property Investment.................................................................. 210 Unrelated Singles Co-Owning A Property.............................211 Level 5: Milestone 40 Reached....................................................212 ElderShield....................................................................................................212 Level 6: Boss Level!............................................................................... 213 Retirement Account (RA).................................................................. 213 Minimum Sum Scheme....................................................................... 214 Level 7: MegaBoss Level!................................................................. 215 CPF Lifelong Income scheme For the Elderly (LIFE)........................................................................... 215 You Have Won The Game!............................................................ 216

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Chapter 12 Other Than Investing In Myself And My CPF, Where Else Can I Park My Money?......................................... 219 Investment Instrument #1: Equity................................................ 220 Price To Earnings Ratio (P/E)....................................................... 222 Price To Book Value............................................................................ 223 Fibonacci Retracement..................................................................... 223 Should You Invest In Equity?......................................................... 224 Investment Instrument #2: Gold.................................................. 224 Investment Instrument #3: Bonds.............................................. 226 Investment Instrument #4: Unit Trusts..................................... 228 Investment Instrument #5: Real Estate.................................. 229 Why You Should Invest In Property......................................... 231 Overseas Investment.......................................................................... 232 Spotting A Scam...................................................................................233 Going Forward........................................................................................236

Chapter 13 Trustworthy Units Of Unit Trusts................................................. 239 Collective Interests...............................................................................240 Unit Trusts â&#x20AC;&#x201C; The Facts....................................................................... 241 Different Types Of Unit Trusts...................................................... 242 Equity Funds..............................................................................................243 Fixed Income Funds............................................................................243 Balanced Funds......................................................................................243 Capital Protected Funds..................................................................243 Sector Funds.............................................................................................244 Bond Funds...............................................................................................244 Money Market Funds.........................................................................245 G

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Your Investment Portfolio Should Match Your Investor Profile.........................................246

Chapter 14 How Ordinary Singaporeans Grow Rich, Singapore Style........................................................... 251 Katrina...........................................................................................................253 Dr Winston Lim....................................................................................... 257 Ismail Gafoor............................................................................................. 261 Nahar and Norharyati.......................................................................267 Tay Shy Ching......................................................................................... 272 Rayney Wong.......................................................................................... 275 Wong Wen Hong (黄文鸿)............................................................ 277 Mr and Mrs Goh.....................................................................................281 From Chaos To Order....................................................................... 285 What’s Your Story?............................................................................... 289

Chapter 15 What Is A Financial Consultant? Who Is SingCapital? And Why Both Are Important In Your Journey Towards Wealth And Riches......................................................... 293 What Are The Roles Of A Financial Consultant?..........................................................................294 SingCapital – Enriching Lives Beyond Finance..................................................................................... 295 Realise Your Financial Dreams With SingCapital................................................................ 297 Meet Our Consultants........................................................................ 297 Alson Kong................................................................................................298 Jean Kwek...................................................................................................304 Adeline Tan................................................................................................307 Winston Chan............................................................................................ 311 G

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Susan Lim.....................................................................................................314 Hassanuddin Bin Mohamed..........................................................320 Jesprine Chiang......................................................................................324 Wendy Koh................................................................................................ 328 Ken Tan.........................................................................................................335 Rainer Krieg..............................................................................................338 What Will You Do?................................................................................341 Call. Your. Financial. Coach. Now...............................................341

Chapter 16 Why You Should Be Doing Something About Your Financial Destiny, Now!........................................345

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GROW RIC

Chapter 1 Why Do You Want To Become Rich When You Can Just Sit And Relax At The Coffee Shop, Market Or The Void Deck All Day Long?

OW RICH G

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ave you ever visited the coffee shop, market or taken a look at the void deck at strange timings such as 10 am or 3 pm on a weekday? If you haven’t, please do so

and you will be both pleasantly and unpleasantly surprised. You will be pleasantly surprised because during such odd hours of the day, when everyone should be toiling hard at their work places, there are those who can and perhaps have decided to take it easy and make every day an idyllic Sunday. Most of these people would have retired, since most of them – especially the men – have either greying hair or no hair. Every now and then, you might be able to spot a younger person among them, and that brings us to the question as to whether these people are there out of choice or circumstance. Are they there by achievement or are they there out of a job?

But since that can’t be properly answered unless we take the risk of offending them by asking them the question personally, we will leave it as it is at the moment. Which brings us to the part which you will be unpleasantly surprised. If these people can afford to take it easy, why can’t you? Why aren’t you enjoying all that life has to offer: idyllic afternoons, a holiday to anywhere in the world, buy the most exquisite gifts for your friends and yourself, send your kids for an overseas education… And yeah, I know what you are thinking. You must be thinking: “Hello, Alfred, what are you talking about? I need to work, because I NEED MONEY.”

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According to the Nielsen Global Survey released in May 2012, the top two worries among Singaporeans relate to job security and the economy. In an online poll done in September 2012 by Yahoo!, the cost of housing was the top concern, while the widening income gap was the 3rd. At the Pre-University Seminar held in May 2012, 53% of the more than 500 students ranked unemployment and a potential economic recession as their top concern for Singapore. In a research conducted by market researchers Mintel, “financial angst” is the biggest source of stress for 40% of Britons. The results were published in The Guardian and The Telegraph in the UK in 2012. In October 2012, the Pew Research Centre – a think tank that provides information on the issues, attitudes and trends shaping America and the world – found that about four in ten adult Americans (38%) say they are not confident that they will

have enough income and assets for their retirement, up from 25% at the end of the recession in 2009. If you haven’t realised, EVERYONE – young and old all around the world – is worried about MONEY.

Question: What Is Money? Before we can even delve into the topic of growing your money and making you rich, let’s take a step back and ask ourselves one fundamental question: What is money? Kind of a dumb question, isn’t it? “Come on,” you say, “everyone knows what money is.” Or do you?

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The subject of money has always been a complicated one. Students of Economics spend years trying to unravel what it is, and when they finally do, their theoretical knowledge does nothing to help them in managing their own money. So we won’t be going into the complex details here; you will only need to grasp the most basic – which in no way suggests that it is less important – idea of what money is and you will move on. So let’s begin.

A Short History Of Money Long, long time ago, way even before the police were wearing shorts in Singapore, in places spanning the different continents around the globe, people bought and sold through a process of bartering. In this earliest form of trading, two individuals each possessing a commodity the other wanted or needed would

enter into an agreement to trade their goods, which resembled very much an exchange. As such, a farmer who bred chicken but needed wooden logs would have to trade a few of his chickens in exchange for the wooden logs he needed. In theory, bartering works just fine. It allows one to trade with what one has in exchange for what one needs or wants. In practice, however, bartering presents many problems because it is based on the assumption that what you have is what someone else needs. Going back to the example of the farmer with chickens to offer, what if the woodcutter – or in today’s more professional term,

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a lumberjack – did not have any need for chickens. In fact, woodcutter Ah Mu (阿木) had been eating too much chicken for the past 3 months and he would really do well with more fibre in his diet. Thus, what he wanted wasn’t chickens; instead, he wanted more bananas. And this would be the beginning of troubles for the chicken farmer, Ji Lao (鸡佬). He would have to look for someone who was not only going bananas and had bananas to spare, Ji Lao had to be lucky enough such that the ‘bananas’ guy had a need for chickens as well. We can easily see how Ji Lao’s desire to have some wooden logs can turn into a wild goose chase (a chicken farmer chasing goose) that might take him from America to Siberia, which is ironical because Ji Lao needed logs, not geese.

And we haven’t covered the negotiations part where Ji Lao and the rest of the people would have to agree on how bananas could be denominated in chickens, and how wooden logs could be denominated in bananas etc.

And Money Came To The Rescue It is obvious that bartering is a time-consuming, inefficient and potentially frustrating exercise that even the most patient and persevering of people will strive to avoid. Yet, for Ji Lao, Ah Mu and the yet-to-be-named Bananas Man who were unlucky enough to live in the past, bartering was the only way of trade that they knew. Thankfully for us, bartering is but a thing of the past. Along the

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way – and I shan’t go into details here – some smart guy who deserves to be named came in and said “enough is enough”. Instead of lugging chickens, wooden logs and bananas around in search of someone who had what you needed and needed what you had, this Smart Alec came in and gave tokens in exchange for what he needed. These tokens could take the form of cowrie shells, gold or silver pieces, or even coffee beans; the form of these tokens were hardly as important as the trust behind it.

Major Money Trivia The paper money as we know it was first adopted by the Chinese during the Tang and Song Dynasty, beginning from the 7th century. Prior to that, they were already using copper

coins, and it was this desire of avoiding the need to carry large amounts of coins around that they first developed paper currency.

A Seashell Money Story So let’s return to the example of Ji Lao again. Ji Lao, who needed 60 wooden logs, could go to Ah Mu and offer to pay for the logs with seashells. Through a systematic process of negotiation, Ji Lao and Ah Mu might agree that – for simplicity’s sake – 20 chickens would be worth 60 wooden logs, and this worth was to be represented by 20 seashells. The seashells were useless to both Ji Lao and Ah Mu, but by passing the seashells from Ji Lao to Ah Mu, Ji Lao promised to give 20 chickens to Ah Mu G

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in the future should Ah Mu be in the mood for some chicken chop. And Ah Mu, being a smart businessman, would only accept such an offer if Ji Lao had been proven to be a trustworthy man. The seashells, in this case, represent both the value and the promise (or in todayâ&#x20AC;&#x2122;s terms, the contract) between the two individuals. Thus, while Ji Lao, Ah Mu and the elusive Bananas Man were all unfortunate people who had to live in an inconvenient past, the fact is, all three of them were able to benefit from our current system of trading in money because in a parallel universe, people got wind of how Ji Lao and Ah Mu were able to engage in fuss-free trading, and the practice spread. Soon, everybody was buying and selling in seashells, and over time, things came to be denominated in seashells

rather than their value in terms of other commodities.

How Ji Lao, Ah Mu And Bananas Man Might Really Have Experienced The Modern Money System Strange as it might sound, the parallel universe concept is a well-proven concept in Quantum Physics. And where one outcome has existed on one universe, another outcome has surfaced in another. In the case of our three friends, it is entirely possible that they actually adopted the modern money system as we know it. But proving parallel universes is not the objective of this book. You will have to read more into the subject yourself.

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What Money Really Is Of course, the story of the three buggers is an over-simplified version of how our current money system came about. For starters, sea shells could never really have been used as they were readily available and their easy accessibility would mean confusion – in today’s context, we call it counterfeits. But the seashell money story can shed some light as to what money really is. Essentially, money represents the: • PERCEIVED AND ACTUAL VALUE of a commodity, a good or a service. • TRUST that exists between buyer and seller. • EXCHANGE of value between multiple buyers and sellers,

though the flow is often lost through the intricate web of exchanges that take place. Keep these three defining qualities of money in mind throughout the course of this book, and you will find it easier to understand our money management principles and investment approach. And now that we have done the tough part of defining what money really is, let’s move on to the easier part of finding out what money can do.

What Money Can Do For You In November 1976, a Swedish pop group released a single that took the world by storm. The song talked about money and what it could do, and the persona in the song lamented how G

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life would be better if she had more money. In the song, the character came to a conclusion: she would have to win at gambling to solve her money woes. In no time, the song became a number-one chart hit in Australia, Belgium, France, West Germany, The Netherlands and New Zealand, while reaching the top three in Austria, Great Britain, Ireland, Norway and Switzerland. Yes, the Swedish pop group is none other than ABBA, and the song is “Money, Money, Money”, which is essentially the theme of this whole book. If you figured out the name of the song without much difficulty, congratulations! There are several things I can infer about you. Firstly, you are 40 and above; if not, you watched “Mama Mia!” the musical or the movie; and even if you are neither of the first two, you are still concerned about

money. Of all the things in life that can potentially trigger negative emotions in people, money ranks as one of the highest. In many families, the subject of money is taboo, possibly alongside sex, power and religion. Which brings us to the question: “What can money do that so many people would die for it, yet feel uncomfortable talking about it?”

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Well, if there’s someone or some group that can answer that, it’ll definitely be ABBA. Let’s take a look at their award-winning song:

I work all night, I work all day, to pay the bills I have to pay Ain’t it sad And still there never seems to be a single penny left for me That’s too bad In my dreams I have a plan If I got me a wealthy man I wouldn’t have to work at all, I’d fool around and have a ball... Money, money, money Must be funny In the rich man’s world Money, money, money Always sunny In the rich man’s world Aha-ahaaa All the things I could do If I had a little money It’s a rich man’s world…

A man like that is hard to find but I can’t get him off my mind Ain’t it sad And if he happens to be free I bet he wouldn’t fancy me That’s too bad So I must leave, I’ll have to go To Las Vegas or Monaco And win a fortune in a game, my life will never be the same An extract from the lyrics of the song, ‘Money, Money, Money’, by ABBA, one of the greatest pop groups from the early 70s to 80s. Well, from the song, we can come to a few conclusions, whether they are valid or otherwise. G

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Money:  Pays the bills  Frees you from the plague of work  Allows you to fool around  Makes your life sunny and happy  Gives you the world  Changes your life for the better Now that we have heard what ABBA thinks that money can do, let’s hear from you what YOU think money can do for you. The next exercise will require you to list down the top 10 things you will be able to do, have and become if you had unlimited

amounts of money. Don’t limit yourself; have fun and enjoy the process. And please DO NOT turn the page UNTIL you have completed the exercise.

Exercise: The Top 10 Things I Will Be Able To Do, Have And Become If I Had More Money No 1 2 3 4

If I had more money, I The Thing You Can Do, will be able to Have And Become If I had more money, I will be able to If I had more money, I will be able to If I had more money, I will be able to If I had more money, I will be able to Chapter 1

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No 5 6 7 8 9 10

What Money Means To You, Me And Some/Most Other People 42

To many of us, the idea of having lots of money in your wallet, purse and bank accounts conjures one or many images. At the most basic level, it pertains to things that you can BUY, which is perfectly fine, because CASH in hand or at the bank is what you utilise when you want to purchase something. And even if you are buying on credit, you still have to pay back in CASH what you have bought. So if, in the previous exercise, you listed down items such as those as follows, CONGRATULATIONS! You are NORMAL. To most people, having more money means being ABLE to buy: ď&#x192;ź beautiful houses ď&#x192;ź fast and expensive cars

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 designer bags  exquisite jewellery  Rolex watches To many others, having more money is more than just being ABLE to buy something; it is being ABLE to live a lifestyle. To these people, having more money means being ABLE to:  go on exotic holidays more than 3 times a year  go for fine dining every day  go on luxurious spa treatments every week  go clubbing every weekend  gain entry to exclusive club memberships

 travel 1st class all the time Finally, there are those who believe that money will be ABLE to give them the POWER to be ANYTHING they want to be, no matter how WARPED this concept might become for them. In some countries (Hint: this country is a rising dragon at the moment) and in some circles, the rich can:  buy themselves out of trouble  have sexy mistresses  waste money like water  disrespect everyone else

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How you and I think and feel about money is usually a result of our beliefs, backgrounds, experiences and exposure, leading us to form ideas about what money CAN do, or CANNOT do for us. What you and I do with our money is also a result of our beliefs, backgrounds, experiences and exposure, leading us to form ideas about what we SHOULD or SHOULD NOT do once we have copious amounts of money in our hands. The objective of this book is not for me to decide: 1. what money CAN or CANNOT do for you (Like what I said earlier, how you and I think and feel about money is usually a result of our beliefs, backgrounds, experiences and exposure. If you are convinced that money can’t buy you happiness, there’s nothing I can do about it. Conversely speaking, if you think that money is the ONLY

thing that can buy you happiness, there’s still nothing I can do about it. So I shan’t try the impossible.) 2. what you SHOULD or SHOULD NOT do with your money (Money gives you options – a concept which we will cover in the next chapter – and what you do with the options isn’t really my concern. In my personal opinion, there’s a RIGHT way to spend your money AFTER you have got it, but we will let it stay personal. As such, if you so decide to go on a holiday every 2 months, or get a mistress as a trophy after you have made it, pardon me if I sound nonchalant – I don’t want to know.)

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Instead, before we move on to the next chapter, we agree to agree that: 

You are not sitting and relaxing at the coffee shop, market

or the void deck all day because you WANT more money.  You are not sitting and relaxing at the coffee shop, market or the void deck all day because it is GOOD to HAVE more money. 

You are not sitting and relaxing at the coffee shop, market

or the void deck all day because WANTING and HAVING more money will improve your life.

TASK FOR THIS CHAPTER With all the hype about money, let’s do yourself a favour. Go to YouTube and go watch the music video for ABBA’s “Money,

Money, Money”. Reflect on the lyrics of the song. How true are they? To what extent do you subscribe to the lyrics of the song? What do you think is the surest way to become rich? Write down your reflections in the space provided after this box. Trust me. Both the exercise and the song will blow you away.

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GROW RIC

Chapter 2 Why Decide To Have More Money In Your Wallet, Bank Accounts And Under Your Mattress When You Just Need Some Money To Survive

OW RICH G

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once heard of a story (from a friend) about a young man of about 20 years old who, in a not-so-desperate attempt to escape from the “clutches” of an insurance agent, intentionally

gave stupid answers so that he would not be “cornered” into buying a policy, though the young man really needed it. The poor insurance agent, despite his best intentions, was going against a brick wall of opposition. The conversation went somewhat like this: AGENT

So what do you intend to work as when you complete your National Service? (The young man concerned was still serving his National Service at this point in time.) (Stunned) So… how much do you expect to make per month by working as a poet?

(Confused) But how would you be able to survive on $40 per month?

(Totally disoriented) But how about your parents? How will you take care of them when they are old? (Totally flabbergasted) I am religious too. I don’t do something as stupid as that?!

YOUNG MAN

Well, I would like to become a poet once I leave the Army.

(Nonchalantly) Well, about $40 per month. (This thing happened around 1995. Taking into account the inflation that would have been compounded over the years, we can safely assume – for convenience sake – that $40 then would be equivalent to $80 today.) Well, I can ask for money from my parents if I can’t handle my life at $40 per month. If they don’t want to give me any money, I will go around the hawker stalls and pick up the food left over by others. (as a matter-of-factly) Oh, I am religious. I believe that God takes care of all of us. So there’s nothing to worry. Orh hor…! You don’t have faith. Better repent!

??? (The agent leaves flabbergasted) G

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What’s my point here in relating this story? 1. No, I AM NOT trying to say that poets pick leftovers and eat them. [In the first place, in today’s context, there ISN’T such a job as a poet. I might be wrong, but as far as I know, the job – like dinosaurs – went extinct some time ago, although dinosaurs became extinct a lot earlier. But let’s just assume, for convenience sake, that the occupation still exists, and that your kids can rightfully aspire to be a poet (though you would really want to give them a good spanking if they aspire to be one today). Those poets of the olden past who could make it would be writing for the kings, queens and other members of the royal family. In such a case, they would be dining on good

food, drinking exquisite wines and having a whale of a time; in whichever the case, there wouldn’t be a need for them to feed on leftovers. For those poets who could not make it, they would be too proud to be eating leftovers. They would probably be “breathing in nutrients from the air”, “taking in food from the ground” and “drinking from the juices of the sky”. So if there are poets today, they probably won’t be picking and eating leftovers; the story that I have related is NOT to suggest that poets eat leftovers.] 2. No, I AM NOT trying to say that religious people do not do financial planning.

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(It’s obvious that our friend in the story above isn’t trying to make trouble for religion, or even his parents. As such, while he actually says that “God takes care of all of us”, and that he “orh hor-ed” the insurance agent for not having enough “faith”, he is actually doing so to irritate the agent so as to get him off his back rather than suggest that those who do financial planning are less spiritual or religious.) INSTEAD, my whole point of relating this crazy story is that our friend is partially correct. It is possible to survive even if one does not have or earn much money. No, even by yesterday’s standards, living on $40 was really too much of a stretch. But our friend was right to say that it is possible to survive on a pretty small sum of money. All it takes

is for one to: 1. Take the bus and the MRT instead of taking the taxi or drive; or walk if necessary. 2. Eat at cheap hawker stalls instead of dining at restaurants or expensive food courts; or pretend to have forgotten to bring your wallet and let your friends treat you to a meal. 3. Buy from value shops in the heartlands rather than upscale establishments in the city; or become a ‘garung guni’ (rag and bone man) and lug home all those discarded items at the HDB void deck. 4. Cut down on electricity and water usage at home; or steal

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electricity from your neighbour and fill up your pails at the public taps at the market. You get the idea. You can get by without having to have lots of money, and since you can’t bring the money into the grave with you after you die, why bother to grow rich then?

What Money Can Really Do For You Remember a similar header from the previous chapter? If you do recall, the word ABLE appeared quite a few times. With more money, you would be ABLE to (to recap):  Buy beautiful houses  Buy fast and expensive cars  Buy designer bags

 Buy exquisite jewellery  Buy Rolex watches  Go on exotic holidays more than 3 times a year  Go for fine dining every day  Go for luxurious spa treatments every week  Go clubbing every weekend  Gain entry to exclusive club memberships  Travel 1st class all the time  Buy yourself out of trouble (in many other countries)  Get sexy mistresses if you are a man  Waste money like water  Disrespect everyone else (though you shouldn’t)

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The thing I want to highlight here is NOT what you would do when you have the money; rather, it is what you CAN do when you have the money. Essentially, what money CAN do for you is to give you THE POWER OF CHOICE and THE POWER TO DECIDE.

The Power Of Choice And The Power Of Decision Money has this wonderful ability of giving you the power of choice. On its own, it’s just pieces of paper, plastic, nickel or bronze which are not worth the value that they supposedly represent; yet, when you USE it, it can give you the POWER to

CHOOSE what you want for yourself today, tomorrow and for many years to come. Let’s give a simple example. Let’s say that your son or daughter would like to go overseas to pursue a 4-year undergraduate degree in business. So would you be sending him or her to the US, UK, Australia, Canada, New Zealand, Malaysia or the United Arab Emirates (UAE)? Other than your child’s preference, it is really how much money you have that decides where your child can go. Let’s say that you have US$100,000. You think that is a lot of money, and you want to send him for an American college education in the United States.

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Unfortunately for you, the harsh reality is that US$100,000 is hardly enough for a 4-year education in the US. Letâ&#x20AC;&#x2122;s take a look at the figures. According to a report published in the International Journal of Business and Management (Vol. 7, No. 4; February 2012) by the Canadian Center of Science and Education, the annual costs of getting an undergraduate business degree in various countries are as follows: Annual Total Cost of Education for 2011 â&#x20AC;&#x201C; 2012 Country Tuition Living Visa Cost Annual Fees Costs (US$) Total (US$) (US$) Cost of Education (US$) US 29,952 11,304 140 41,396 UK 18,492 15,513 415 34,420 Australia 23,541 15,237 565 39,343 Canada 21,898 10,070 130 32,098 New 17,572 10,835 177 28,584 Zealand Malaysia UAE

12,031 13,746

2,950 7,328

62 136

15,043 21,210

Source: International Journal of Business and Management (Vol. 7, No. 4; February 2012)

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Thus, based on the projections given above, the cost of a 4-year undergraduate business education in the various countries would be as follows: Total Cost of Education for 2011 – 2012 Country Annual Total Cost Total Cost of a of Education 4-Year Education (US$) (US$) US 41,396 165,584 UK 34,420 137,680 Australia 39,343 157,372 Canada 32,098 128,392 New Zealand 28,584 114,336 Malaysia 15,043 60,172 UAE 21,210 84,840 As you can see, the US$100,000 can only cover an education in

either Malaysia or the UAE, and is barely scraping the cost of a 4-year education in New Zealand. So there are only a few things that you and your child can do: 1. Your child will have to make do with an overseas education in Malaysia or the UAE, even if he or she doesn’t like it; and 2. Since you can comfortably afford to send your child to Malaysia or the UAE, you must prioritise and decide whether an education in Malaysia or the UAE is more relevant; or 3. You up your earning capacity and make another US$65,584 so that you can fulfil your son or daughter’s dream of a US education, or whichever place he or she wants to go.

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Essentially, the scenario portrayed reveals the reality about life: 1. When you don’t have enough money to spare, you will have to sacrifice. 2. When you have just enough money to spare, you will have to prioritise. 3. When you have more than enough money to spare, you will get the right of choice. And by continuing to read this book, there are also 3 assumptions I am making about you: 1. You don’t want to sacrifice because living a life of limitations – a sad scenario where you cannot afford this and that – is really NOT what you are born to be and do.

2. Prioritising, although better, is still NOT the ideal situation. 3. You want the right to choose, even if you finally end up choosing the cheapest item on the list. (There’s a difference to choosing the cheapest item when you don’t have enough money, and when you have more than enough money.) And you want this Power Of Choice for 3 groups of people, namely: • Yourself • Your Loved Ones • The World at Large

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Exercising The Power Of Choice For Yourself Can you imagine:  looking at beautiful houses and knowing that you will never get to live in them because you have no money?  going to a car showroom and fearing to ask for a test drive because you will not be able to afford any one of them?  not daring to enter a boutique and enquire about designer bags for fear that the salesgirl will know that you are only able to purchase the cheapest one?  not being ABLE to go on a holiday because you don’t have enough money? I think you get my point.

You want to be able to:  look at beautiful houses and know with assurance that you will get to live in them one day because you have planned out your finances such that it would happen.  go to a car showroom and know for sure that you have enough money to buy and sustain one without busting your budget every month.  enter a boutique and enquire about designer bags, without fear or qualms because you know whether you buy or not buy a bag is up to you since money is not an issue.  plan and go for the next holiday without having to hesitate because of the lack of funds.

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Essentially, money means:  assurance  confidence  certainty And you want:  assurance  confidence  certainty both for yourself and your loved ones.

Must-Haves And Good-To-Haves 59

Most people have no problem understanding the importance of making more money. They want the assurance, confidence and certainty, but for some reason, the motivation to become rich and to get their finances right is just not there. Because although you might want to become rich, or you might hope to become rich, the desire to own beautiful houses, fast and expensive cars, designer bags, exquisite jewellery and Rolex watches is hardly a COMPELLING REASON for you to strive towards growing rich. Because if the focus of growing rich is for “little old me”, most of us will not have the motivation to push ourselves to make and accumulate more money. If we are only going to grow rich because of the beautiful houses, fast and expensive cars,

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designer bags, exquisite jewellery and Rolex watches, the chances of you giving up and NOT sticking to the game plan are really going to be high, because the returns from getting more and more of these items actually decrease over time. And because these wonderful items no longer give you the same satisfaction as you have more of them, you are more inclined to: • give up your pursuit of wealth after a while, or • NOT start the pursuit in the first place, since you know what is going to happen in the end. And the second case of you NOT starting your journey in the first place is really higher, because to most of us, beautiful houses, fast and expensive cars, designer bags, exquisite jewellery and Rolex watches are not MUST-HAVES, but GOOD-TO-HAVES. Since GOOD-TO-HAVES are not MUST-HAVES, growing rich

will only become a want, a hope but never a MUST. So if beautiful houses, fast and expensive cars, designer bags, exquisite jewellery and Rolex watches do not motivate you to grow rich, what will?

Exercising The Power Of Choice For Your Loved Ones Imagine these: • Your daughter’s school is organising a 1-week Literature learning trip to the UK and you are hesitant to sign on her consent form because you might not have enough money to allow her to go on the trip.

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Chapter 2 Why Decide To Have More Money In Your Wallet, Bank Accounts And Under Your Mattress When You Just Need Some Money To Survive

• Your son has expressed interest in an overseas education, but you worry that you might not have enough money to sustain his tuition fees and living expenses. • Your dad has fallen ill, and although you want him to get the best treatment possible, the medical expenses are way out of your budget and capacity. • You want to take your family on a well-deserved holiday, but there is no way that you can do that because you have overcommitted on your liabilities. When any of the above or something similar happens, • Do you feel less deserving as a parent? • Do you feel that you are betraying the trust of your family members?

• Do you feel somewhat useless because you are unable to help fulfil the needs and dreams of your family? Notice how I used the word “feel”. I am NOT in any way stating or implying that you are less deserving, betraying the trust of your family or useless, but you know what I mean. The feeling of being UNABLE to give assurance, confidence and certainty to your family; it’s a terrible feeling that you would rather NOT have. And that’s the greater and better reason to want to become rich. You don’t want to just become rich because you want beautiful houses, fast and expensive cars, designer bags, exquisite jewellery and Rolex watches for yourself,

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You want to grow rich because you want to BE and GIVE the BEST to your family and loved ones.

Money gives you the power to decide for your loved ones The frail old man was lying on his bed, breathless. His family, children and in-laws were all at his bedside, wondering what to do. He needed urgent medical attention of a specialised kind. Yet, nobody dared to say a word. As the old man began giving his final farewell advice to his children and in-laws, his children, being of moderate means, prayed for his well-being. Nobody said a word.

In the midst of all the silence, a man’s voice rang out from the group. “This can’t go on,” the old man’s son-in-law said. “He needs the best medical attention.” With that, the decision was made. The old man’s son-inlaw is an entrepreneur who has made it through hard work, determination and foresight. And having achieved a reasonable level of success, the son-in-law was able to make the call together with his wife to put his father-in-law through specialist treatment. Today, this father-in-law is still alive and kicking, thanks to the decision his son-in-law and wife made 10 years earlier. G

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Chapter 2 Why Decide To Have More Money In Your Wallet, Bank Accounts And Under Your Mattress When You Just Need Some Money To Survive

The money that one earns is not about high-living, fast cars and beautiful women; instead, it is about taking care of your loved ones, and taking care of them well.

Exercising The Power Of Choice For Society At Large To most of us, exercising the power of choice for yourself and your loved ones will probably constitute being the BEST that any of us would become. There is nothing more noble, respectable and honourable than being able to provide the BEST for yourself and your loved ones, and for most of us, being able to do that should and must become our aim and pursuit in life. But beyond that, the ability to do good, to assist the less fortunate members of society and to support causes close to our hearts should be the next best thing we should be striving for. Because

at the end of it all, money can only buy that much enjoyment for us and our families, since: • The difference between fine wine and very fine wine is almost indistinguishable to the untrained tongue. • Staying in a big house is great and wonderful but staying in too big a house becomes a burden. • Having a car means convenience, but having a fast car won’t make much of a difference since you can’t drive fast on Singapore roads. • Getting to go for high-tea every now and then is fun, but going for it every day is detrimental to your health and wellbeing. Chapter 2

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Why Decide To Have More Money In Your Wallet, Bank Accounts And Under Your Mattress When You Just Need Some Money To Survive S T Y L E

I think, as again (since you are a smart reader), you get what I mean. Beyond a certain level of comfort, the additional returns you get from what you are enjoying become less, and past another threshold the returns become negative. And that’s when helping others, supporting your pet causes and doing your bit for society become such a worthy venture because there is a greater meaning to all the money that you have grown. And that’s when you not just become rich – which is a physical state of having lots of money – you become wealthy – which is a spiritual state of having more than just money. And you won’t be alone in this.  Bill Gates does it.

 Warren Buffet does it.  George Soros does it.  Sim Wong Hoo does it.  Ron Sim does it.  You can do it. So to grow rich, you need to have one, or perhaps many compelling reasons. The following exercise will help you identify the 3 reasons why you want to become rich for yourself, and 3 reasons why you want to become rich for your family. (At the moment, we’ll just concentrate on just you and your family.)

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Chapter 2 Why Decide To Have More Money In Your Wallet, Bank Accounts And Under Your Mattress When You Just Need Some Money To Survive

Remember, having more reasons to make it rich means that:  You are more motivated to do it.  You are more likely to do it.  You will do it. So, have FUN!

I Want To Grow Rich For My _____ So That… E.g. 1 2 3

E.g.

1 2 3

Intention To Grow Rich I want to grow rich for myself so that I want to grow rich for myself so that I want to grow rich for myself so that I want to grow rich for myself so that Intention To Grow Rich I want to grow rich for my I want to for I want to for I want to for

Loved Ones wife

Personal Reason I can travel around the world when I retire.

65 Reason so that I can take her on a holiday around the world.

grow rich my grow rich my grow rich my

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Why Decide To Have More Money In Your Wallet, Bank Accounts And Under Your Mattress When You Just Need Some Money To Survive S T Y L E

Do you want to make more money? If you want to be rich, where do you start?

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