In our world today, money is something that you no longer can escape from. Everything that you need…you’ll need money. Food, vacation, daily necessities, entertainments, etc….all of these, you will need money to buy them.
For myself, I am actually looking into investing my money in certain areas right now. I’m planning to diversify a little – maybe a bit in mutual funds, a bit in stock, and when I have enough money, put into real estate. The latter is less volatile but has bigger risk. So…it really depends on your financial capability and how big a risk are you willing to take.
Well, in the end, the most important thing is…do you actually have the money to start buying or start investing?
For the younger generation (20s and 30s), spending your money on something you really like is quite normal. For guys, gadgets and for girls, clothes, cosmetics, etc etc. I used to be like a typical young man…spending a lot on gadgets, games, food and entertainment. I used to spend like 5k in 3 months…on such things (my salary is not much, fyi).
But recently, I’ve changed. I no longer spend so much on gadgets and food. I feel most of those stuff are “nice-to-have” and not “need-to-have“. With 5k…there are a lot of things that I could do. I can buy a lower-end blue chip stock in Kuala Lumpur Stock Exchange. I can deposit the 5k into a Fixed Deposit…or even put them into the mutual funds. There are so many things that you can do with 5k…and all of them will lead to making you 5k multiply. True, it’s not something that you can see overnight and it’ll most probably need some time to grow..and at times it might gain negative progress. However, it is still better than using your 5k on purchasing a liability.
So, how much have you save this month? I am sure all of you have your own ambitions, your own dreams…and everyone wants to see their current money grow. But I can seriously tell you……..spending majority of your money on short-term happiness will never help your money to grow. 🙂
I’ve learnt this, and I hope you do too.
Alvin Lim - The Thinker 
19 comments
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June 16, 2007 at 11:35 pm
Michel
Wow, I wish I was just like you when it comes to money! You just changed like that? Over night?
I’m the spender, no saver what so ever, sadly. But my motto is “Enjoy life, you might not be here tomorrow” and to shop and spend are to enjoy life…to me 🙂 Got an amount of money in stock though (my father made me)
June 16, 2007 at 11:40 pm
Alvin
Of course, the process took me longer than just “overnight”. I have big dreams…and I must admit I’m quite an ambitious person. My dream is not to be rich, but to be able to have my own business and have enough money to expand it.
That’s why I feel that, all those spendings will not bring me anywhere close to my goals/dreams. And that is also why, I feel I need to change. 🙂
Yea, we might not be here tomorrow. But why think tat way? Shouldn’t we think that we only live once…if we don’t achieve our dreams this term…we will never get a second chance 🙂
June 17, 2007 at 12:08 am
Eaglevibes
Yes, its very true spending money nowdays its so simple earning them back is abit hard. Well i always have this policy i will spend quater of the amount i make and it has been that way from the time i was having rm500 and till now more then 6 figures.
One’s finance must be well maintained and not to get influence by all the things that life can offer that will hurt your wallet,better yet some of the people that i know will not even think twice to borrow from people just to satisfy their thirst for spending. earn wisely and spend precisely, thats what make the world goes around.
June 17, 2007 at 12:13 am
Alvin
Yeap. And when you have the so-called “extra money”, then you can proceed with whatever “nice-to-have”s that you wanted to buy. Do beware though…for the list of “nice-to-have”s is a never-ending one. 🙂
We will never be satisfied 😛
Thanks for the comment again Eaglevibes.
June 17, 2007 at 12:18 am
Michel
Well, I guess our dreams and goals aren’t the same, that’s why you save and I spend 🙂
You sound very ambitious and that’s a really good thing to be, I’m ambitious in another way. I’m working as a dancer and don’t want no buisness…and then I have to admit that I was born “lucky” 😀
Have a nice evening!
June 17, 2007 at 12:26 am
Alvin
Michel, thanks again for the comment. 😀
“Lucky” ? hmm…kinda subjective eh? LOL.
Yeap, each and everyone of us have different set of dreams n goals. The main thing is, once we’ve realized what we want in life…we should work hard towards that direction and never look back.
I’ve found my direction (or so I hope). And I’m sure you’ve found yours too.
p/s… I do spend too…but not that much. Trying to control myself…. *staying away from the Nintendo WIIs on the shelves*…get that thing away from my sight~~ Ah well..i might just end up buying one ONCE i have enough “extra money” 😉
June 17, 2007 at 12:54 am
Michel
Of course it’s subjective, very much so, but we did talk about money, didn’t we? 😉 I’m not making that much being a dancer but that’s my passion and I don’t have to work if I don’t want to, that’s what it is.
So what are you doing for a living (to reach your goal)?
June 17, 2007 at 5:14 am
Gabriel
You’re right 🙂 and the macroeconomy just wouldn’t work if nobody saved anything, huge quantities of money would have to be imported continuously putting future at risk (sound familiar?)
Best regards
June 17, 2007 at 10:53 am
Alvin
Michel : I’m working in the IT field which don’t really pay well…and I realized that a daily 9-5 job will not bring me the things I want…nowhere close to be honest. That’s why there are certain things that I need to start to look at … Fortunately, I’m only 25 this year..plenty of time for me to have a few “test run”s. 🙂
Gabriel : Thanks for the comment. Ah…importing money continuously is not really useful eh? Well, some of my friends keep telling me that they are spending their money, to help boost the nation’s economy. LOL. I think they’re just trying to comfort themselves of being such a spendthrift.
June 18, 2007 at 9:52 am
cirnelle
Hi Alvin. My first visit to your blog and you happen to post a reminder to reassess my financials. Thanks for that. But I find saving and investing more difficult than spending (okay, that was a stupid statement). For some reason, despite saying no to quite a few “don’t-need-to-have” things, my bank account is still as flat as a dead man’s EKG.
June 18, 2007 at 10:02 am
Alvin
Hi Cirnelle,
Thanks for visiting my blog. We do have some similarities since i too, find that spending is a lot easier than saving/investing especially with those rectangular things inside our wallet/purse (aka credit cards).
Empty bank account…hmm, yeap mine is quite empty as well despite the fact that I’m trying hard to save every now and then. i guess everyone has their own commitments – family, education, loans, etc. But there’ll be a time when you are able to break even and start earning more than the amount your commitments are forcing u to pay. And at that time, please be sure not to get carried away into buying some “nice-to-have”s…and i’m sure you’ll do just fine. 😀
June 18, 2007 at 7:41 pm
Angie Tan
Hahahaa…
No big revelation here. Alvin, you’ve got a long way to go. Good to hear that you’re thinking about your future financials.
When I speak to my friends in the finance industry, they tell you the awful truth that in the future, even RM1mil may not get you very far.
Anyway, my advise to you youngsters out there… do the following:
1. Set aside some $$$ for the future.
2. Get a life and medical insurance. (btw, its tax deductible)
3. Pay as little tax as possible. (by getting deductions)
4. Invest a little – if you’re cautious, can start of small with mutual funds or fixed deposits (where you can’t get your hands on your disposal income too easily)
5. Remember to also reward yourself… (don’t be a stinge-muffin)
Just be wise about your disposal income. We’re very lucky in M’sia, because we have EPF, in other countries, you have to manage your retirement fund on your own, i.e. the company is not obliged to pay to some employee fund for your retirement… 😉
spend wisely!!!
June 18, 2007 at 7:50 pm
Alvin
Thanks for your comment there Angie. Yeap, those are pretty good (yet simple) guidelines for youngsters. We need to start somewhere no matter what. Unless you’re from a super rich family…or you have millions of dollars at your disposal… taking a step at a time is always the best option for you.
Insurance is always the first thing you should consider. 🙂
tax…yea…try to pay as little as possible…..kinda waste if u don fully utilize the benefits given to u.
June 20, 2007 at 1:07 am
zewt
i realised that as i earn more… i actually saved less. then i did some self observation… and found out why. will probably blog about it soon.
very smart of you to put your money into KLSE… but then… be careful… the market is just a giant legalise casino… to me at least.
June 20, 2007 at 10:44 am
Alvin
When you earn more..u tend to look into more things n commitments like cars/properties/entertainment stuff, etc. Things that you wouldn’t have looked at them when you are earning not-so-much.
Nope. I din put my money into KLSE. Too risky for the small amount of money that i m holding. 🙂 My advice is to only venture into KLSE if u hv extra cash.
Else, put ur money in FD or mutual funds. Minimize your risk.
KLSE is quite volatile now. So beware.
June 21, 2007 at 12:20 pm
writeitoutplease
I love spending money on “short-term happiness” as well. But I have a switch: If I want to start saving money, I just do it. If I’m not focus on trying to store money, I start spending it. But I have a question for this blog in combination with the “Keep the Pendulum swinging” blog: What if I’ve found my direction in life and have a career that I definitely want to pursue, but it’s one that makes next to nothing a year?
June 21, 2007 at 1:22 pm
Alvin
Thanks for your comment writeitoutplease.
There’s no definite answer I can give you in regards to your question. The answer lies with what you really want in your life.
Try reading motivational book like “Rich dad, poor dad” by Robert Kiyosaki.
I do believe in one thing – no matter what you do…as long as you have passions in it (and you have a business mind), you can make your so-called “direction” successful…both in terms of job satisfaction and financially.
Many people think that they cannot earn by doing what they like to do. Well, you never know. 10 years ago, you cannot earn by writing blog, you cannot earn by playing computer games, etc…but now you can.
It all depends on how you want to make it happen.
p/s…. remember, you only live once. Do you want to work like a slave for other ppl…trying to earn some $$ to survive and maybe regret later when you r old for not giving it a try in your ‘dream job’….. or you prefer to lead a normal life (can survive) but doing something that you will not feel bored at all?
June 24, 2007 at 1:33 pm
TH Lim
Many years from now, the same question will be asked over and over again and there is no definite answer to it. Here, I can only offer my views. I have summariezed the situation into 4 simple combinations : –
1. Fantastic job, fantastic pay
2. Lousy job, good pay
3. Fantastic job, lousy pay
4. Lousy job, lousy pay
For situation (1) and (4), it is a no brainer.
For (2), you get the money and make youself happy with you if you can’t let go the temptation of “I make more money than you”.
For (3), you get the enjoyment 1st hand and you don’t have to pay for it. In other words, you can save your money for other necessities because you already fulfilled your “wants”.
For me, I began with (3) and making my way to (1). I switched job every 6 months or so, if I have to, to go where I want to go. I do not live in a vaccum. Even after having said this, I have bills to pay and therefore, I have exercised caution while moving from (3) to (1). For me, the journey from (3) to (1) is a never ending journey.
June 25, 2007 at 6:59 pm
Alvin
Fantastic job n fantastic pay….quite subjective actually. Human beings are greedy by nature. There will never be something called “fantastic pay”. The more you are paid, the higher your expenses will be…. and the cycle goes on and on and on.
Fantastic job can change as well, as we grow older and obtain more experiences. A so-called dream job of 3 years ago might become a very boring job today.
I guess that’s why TH mentioned that the journey from (3) to (1) is a never ending one. Or worse, the mission to reach (1) from (4)….is a never ending process.