Appear Rich or Die Trying

There are 200-300 individuals made bankrupts every MONTH. The Insolvency and Public Trustee Office (IPTO) tracks these sobering statistics in their website.

6 to 7 individuals are made bankrupt every day.

Think about it.

The pursuit of materialism at what cost?
Our consumerist culture that defines Singapore makes those who are not financially aware think that keeping up with the Joneses or Lims, Muthus and Alis is the way to SHOW that we have MADE IT in Singapore Inc. That we are somebody not just a no-body.

Who made it so? Who said that "Making it" or being successful in Singapore has to be measured in material terms? Why is it that we tend to value possessions and trinkets and we tend to devalue human relationships and being kind to your fellow human being?

My friends sms'd me during the Christmas holiday season to complain that no-one gave up their seats for their children who are 2 years old. I sms'd back to them saying that Singapore has become a dog-eat-dog society where we try to "get rich or die trying" and being gracious and giving is a lesser priority.

For those who don't get rich, they want to appear rich and hence leverage themselves to the hilt in order to own that car, 50-inch LCD television or that branded lifestyle. Consumerism fueled by consumer credit is a recipe for financial disaster.

Looking good only lasts a moment. Being made a bankrupt can ruin your entire life.

Only a few will achieve financial freedom
The path to financial freedom is known. It is not a secret. Virtually all personal finance books tell you to:

1. Work hard at your job/business
2. Live within your means
3. Save and invest

All of them tell you to manage your debt and to make clearing your debt a priority. Many teach you to differentiate between spending and saving. In deciding if every dollar you earn will be used to spend or to invest. Compound interest is your friend if you invest but it can be your worst enemy if you take on credit to spend on consumption.

Why are there 200-300 individuals each day who learn not the lessons that are already available in the public domain for the price of a library membership? Not all who are made bankrupt made so due solely to their own spending or lifestyles. Some were unfortunate enough to act as guarantors in loans or scholarships or bonds and ended up being played out by the person being guaranteed. Did you know that the parties to the bond or agreement can sue you for the monies or bond should the person under the bond/agreement not be able to fulfil it?

While many of you want to achieve financial freedom, some of you would have succeeded if you avoid bankruptcy. If you are some of those who still owe some consumer credit, do take heed from the advice given by IPTO on financial awareness. It may save you a good deal of grief in the near future.

Appear poor but get rich
My own personal philosophy towards financial freedom is to appear poor but to get rich by living within my means, saving and investing and not spending a lot on consumption. My wife sometimes complains because I can wear the same old polo shirts and hardly wear new stuff. I try to be always neat and presentable but am not too bothered that I don't spot any jewellery nor own a branded watch. I think the most expensive thing I own in my warddrobe is a suit that was given to me by my father.

You have to decide what is important to you. To look rich or to be financially free.

Being rich is measured by networth and not by the size of your house/car/wardrobe.

Be well and prosper.