Tip 207: Save first, enjoy later

The story of capitalism has seen many enjoy great material comfort and luxury, only to lose it within a day.















I watched The Oprah Winfrey Show which showcased a TV anchorman who lived a celebrity life only to suddenly lose his job after 26 years when his TV station closed down abruptly. The next month, the anchorman had 0 income, but 2 mortgages to pay off and a lot of other installment plans such as holiday hotel timeshare plans, 24 month fitness gym subscription, kids' university fees, insurance plans, regular savings investment plans and many others. From a life of cocktail parties every other night, he had to resort to search for a job instantly and decided to take a 80% pay cut to be a part timer at a pet shop.















He had to surrender many of his investment plans and incur losses, sell off assets at a loss and resort to rent a home and car instead. All the years of hard work to build his wealth results to nothing when he incurs great loss when selling his assets and investments abruptly.















Unlike Asians, many do not keep large savings for rainy days. The solution: save 1 year of income before committing to any new mortgage or large ticket expense.















As I look back, I can understand the temptations to enjoy or over invest beyond our means. The sales person who want get you to spend on gym expenses, will sell you a 24 month plan and share with you the discounts you may enjoy. Yet, you may later find yourself moving to another city or country and not utilizing the membership after all. Similarly, insurance agents or investment brokers may give various incentives that may tempt customers to invest beyond their means.















What is the optimum path to manage money to live a good life? God first, people second, then money, then things. Delay our craving on things till we manage money well for a good sustainable future in today's volatile fast changing world. After a while, we may realize things can matter very little.














(Photos show Haruka a little unhappy to pose with a Black Pete (Zwarte Piet, Sinterklaas's helper) during the Dutch Christmas event Sinterklaas feast at the Hollandse Club, at a playground at the Harbour Front mall, along the Christmas lights at Orchard Road and a Christmas party at a home of a Japanese Christian of the church we are joining now in Singapore).