“You must gain control over your money or the lack of it will forever control you.” —Dave Ramsey
OK, if you want to get rich in Malaysia and Singapore, a lot of us believe that, you need to know ‘who’ in Malaysia and know ‘how’ in Singapore.
Knowing ‘who’ is an easy option in Malaysia. It depends how well you are connected. By getting a multi-billion project, you are on your fast lane to be a millionaire.
Knowing ‘how’ in Singapore is a tougher version as there is no short cut.
As for me, it is easy provided you are well prepared and stick to your plan, there are only 4 rules to riches no matter where you are.
#1 Make more money
- Get a good education that pays well, that’s is the only option for poor families. Luckily Malaysia and Singapore higher education is still quite affordable.
- Learn new skills besides your normal job, this adds value to your career
- Work hard and professionally
- Side hustle to increase your monthly income
- Take calculated risk
#2 Spend less money
- Keep your monthly fixed expenses low
- Live below your means
- Don’t overspend with credit card unless you pay diligently every month and you are on a mission to get points to redeem a business class air ticket
- Be prudently frugal and selectively extravagant. If you think the item you want is essential, buy it. Separate out need from want. Wanting and needing something is totally different. If you can’t buy it with cash, you can’t afford it except when you are buying a house
- Marry someone you love and Marry ONCE. You can try to explode many other options in life but not your marriage!
- Always buy a second hand car. If you need a brand new one, make sure you can pay with cash
- Buying a house is very expensive and needs lifetime commitment ( the other thing is your marriage), think thrice before make your purchase
- Get a term life insurance and medical card because sickness can dent a big hole in your pocket unless you die straight before getting sick! (It is possible!! )
#3 Invest the rest and let money works for you
- Have a written and proper investing plan
- Allocate your asset
- Keep investing expenses low
- Minimize your taxes
- Don’t be influenced by stock rumors and stories, stay focused!
- Make your monthly investment automated and invest every fortnight or monthly
- Monitor your savings rate and invest at least 30-50% of your take home income
- If you fail to plan you plan to fail. Set a yearly investment target and FIRE date!
#4 Don’t lose your money
- Good investing is boring and lonely, stick to your plan
- Getting rich is a slow process, there is no legitimate ‘Get Rich Fast!’ schemes in Malaysia or Singapore
- Spend some times and fees to learn before you invest
- Stay the course and don’t panic sell your holdings during market sell off
- The first decade after retirement is important, put up your back up plans in case markets works against you
Dr Goh, your advice is like gold! and you giving out for free!
But for a little humor:
So boring, Dr Goh… I heard people or friend say these:
1) Join whole life insurance company – sell whole life insurance and recruit your whole family and all your friends to help you sell… what a great pyramid scheme.
2) Join a direct sales – you don’t have to believe in the products, and once again, recruit your whole family and all your friends to help you sell… what a great pyramid scheme.
3) Give up University – Bill Gates and Mark Zuckerberg become Billionaire. I can do the same. “Get a good education that pays well”, are you kidding? I can out smart many others.
4) Real Estate – use OPM,”Other People Money” Come on.. easy… it will be quick on full cash on cash return with full leverage.
5) Toto, Da Ma Cai, and Magnum is the way to go! One time 4 number, 1 to 100 bonus, if I put RM100 each Mon, Wed, Friday, and Double on Sunday, it will be good return.
6) Leverage with on a short vacation to Genting Highland. Big or Small, Black or Red, Black Jack, Roulette….way to go.
7) I can spent it first, the credit card bill will come later. I can afford the minimum payment.
Dear Nasi Lemak,
Thank you for your comment. Boring is the key to success and riches. Haha!