Conversation With A Millionaire

Every now and then, one gets an opportunity to speak to a millionaire. Afterall, the number of millionaires in Singapore are increasing each year.

As part of the Chinese New Year visitation process, we make it a point to visit our relatives every year.

This year, I got the chance to meet a rich relative who had just upgraded his house.

The house was stunning and it was everything that one could wish for in a dream home. A stunningly good view, central location, spacious and with really nice furniture and paintings.

The wind was blowing in my face as I stood at the balcony observing the wonderful view while the rich uncle sat down there giving us a brief tour of the various sights that were in front of us.

The thoughts that ran through my head was this: "How long more before I can give my family such a life?"

The rich uncle was living alone with his wife as his children had all grown up and left home to set up their own families.

I wish I will be able to replicate his success while my child is still young. But how much time must I sacrifice in return?

Yet, there was no opportunity for me to ask him how he achieved his success. He was too busy talking to other relatives. I also wasn't very close to him so I did not dare probe him about it less I appeared over-intrusive into his personal affairs.

The conversation just went about things like renovation works, the scenery that we were enjoying and of course about children.

There is a certain aura that accompanies successful men. And I felt that aura. It is not something boastful. It is something I call a "gentle and quiet confidence". Just being in the presence of somebody rich, you can feel this aura that surrounds the person. The way he talks, the way he carries himself, the way he eats...

And all I could do was observe. I observed as much as I could and this was my unspoken conversation with a millionaire. I paid attention to what were his likes and hobbies. I caught a glimpse of his passion for certain things. And I got a clearer picture of the rich in Singapore.

I am sure I could have learnt a lot more if I had just asked.

Financial Freedom Thoughts

Sometime ago, I wrote a post about James Sun. He is a young guy who made his millions from an initial $5000 investment in eBay and other stocks like Intel, etc.

Today, at the age of 32, he has accomplished so much more than I have accomplished in my entire life.

This got me thinking about the journey that I am taking and it makes me wonder whether I will actually achieve it.

Being more aware of my mortality these days, I must admit that I could pass on before any of my dreams have been accomplished. And all will be left of me is this blog.

Of course, it is my hope that this blog will live on long after I do to spur people on to achieving financial freedom, abandoning the rat race and truly contemplating about their purpose in life. When one is caught up in the rat race, it is sometimes impossible to think of one's higher calling in life.

I am listing down ten of my dreams that I hope to accomplish. It is my wish that I can accomplish all these before I die but if I don't, hopefully somebody out there will be inspired by this list of mine and go on to accomplish great things in life.

So here are my ten big dreams:

TEN DREAMS OF MY LIFETIME

1. To Achieve Financial Freedom (Passive income greater than expenditure)

2. To Travel the World

3. To live behind a business of lasting impact and help to people

4. To live in a big house by the lake with lots of books

5. To drive a nice car (BMW 5 series)

6. To play the piano

7. To study overseas in a good university

8. To write a book

9. To build a good stamp collection/art collection

10. To start a charity organisation

How long will I take to achieve my dreams? Do I go about achieving them simultaneously or should I priorities and focus on one big dream at a time? Will I ever achieve all these dreams in my lifetime?

Chinese New Year Thoughts

So Chinese New Year is here again.

I have been doing the usual visiting of relatives, giving out of hongbaos (close to $1000 already) and of course...lots of eating.

However, I kind of sense that every CNY is the same. We get together, catch up, eat and then leave. It has become more of a routine thing per se compared to genuine interest in each other's lives.

Even the giving of the red packet becomes more of a tradition than anything else.

Universal Studios Singapore

Singapore is becoming a more exciting place with the partial opening of the Universal Studios soon!

It will be opened from 5 pm to 9 pm from 14 Feb 2010 to 21 Feb 2010 for the public to take a sneak peek at what is inside.

Sale of the tickets (costing $10) will begin on 12 Feb. There will be no sale of same day tickets available at the front gate (don't ask me why).

From what I know, when it is officially opened, weekday passes would cost $66 while weekend pass will costs $72. So the current $10 admission fee is a STEAL if you ask me.

There will be roller coaster rides, movie themed attractions and lots more! So fun. No need to go overseas to sit rollercoaster anymore =)

There are height restrictions for certain of the rides though. If you are above 125cm, you will be able to enjoy most of the rides.

Valentine's Day Ideas That Worked for Me

Valentine's Day this year unfortunately (or fortunately) coincides with Chinese New Year.



As I am married, I no longer celebrate this special occasion. (Yes, the death of romance in marriage)



But I used to recall the days when I would be wondering what to get my girlfriend for V-Day.



I found that this simple formula always works for me. I am not very good at gifts actually. But what I did was so simple and so easy. Nothing fanciful needed. So here is a step by step formula for the perfect Valentine's Day.



Step #1 - Order Flowers



Just order that bouquet of flowers. Yes, it is expensive but it is the bare minimum. I used to get my flowers either from City Hall or Jurong Point. You need to make sure you order beforehand though I am pretty sure that they have enough supplies to entertain walk-in customers. Bring a large paper bag if you are embarrassed to be seen with a large bouquet of flowers.



Step #2 - Write a Well Thought Out Card



This is KEY. Don't just buy a card and write silly stuff like "Happy V Day, I love you". Instead, think about what you would really like to say to her. Thank her for all the things she has done for you in the past year. Recall your favorite memories with her. The card should be like a letter if possible. It should include huge paragraphs that she can read and re-read again. It needs to be well-thought out and not just a few sentences. Think of it as writing a 500 word essay on why you want to spend the rest of your life with her. Remember that the grader is your girlfriend. I really cannot emphasize how important a well written card or letter is. In fact, I would think that it is more important than the flowers. But you still need to have the flowers.



Step #3 - The Gift



If your girlfriend or wife has been easy on you, she might have hinted to you what she already wanted for V-day. But if you simply have no idea, go for this: Perfume. I always buy perfume because it is the easiest to chose and it is classy. Of course it will cost you around $70 to $100 but it will be money well spent. You will be the one taking in the scent afterall =)



Step #4 - The Meal



Her favorite eating place or somewhere with good ambience. Simple as that.



Conclusion



Just follow the 4 steps and you should do just fine. If anything goes wrong, don't blame me. I am just offering some suggestions. It is what I used to do for my girlfriend (who is now my wife). So it worked for me at least.

Automatic Millionaire By David Bach

I was at the library the other day and was browsing through the Automatic Millionaire by David Bach. Here is the one key lesson that I learnt from reading his book.

Forget about The Budget

David Bach started out as a financial planner and he tells the story of how this average-looking couple in their fifties walked into his office one day. To his amazement, he discovered that they had actually close to $2 million in networth and were ready for retirement even though they were just in their early fifties. What the rest of the book talks about is how normal people can be like the couple and become millionaires - AUTOMATICALLY.

The thing is to forget about budgeting as it does not work. Rather, the principle is to pay yourself first. And the BEST way to pay yourself first is to automate the process such that a certain percentage of your income goes into some savings or investment instrument automatically. You can then spend the rest of your money without worries.

I find this a much more useful approach compared to budgeting. Afterall, I am very lousy at budgeting and simply cannot keep to my budgets. It is better to just pay yourself first and spend the rest of your money without having to worry about a budget. It is just framing the problem in another way if you ask me.

The method does not make you a millionaire overnight but it should make you a millionaire one day as long as you keep setting aside a sum of money every month. (Ideally, I think the amount should be around $300 to $500 per month based on 10% returns). If the returns are not doing well, I think you should adjust the figure accordingly.

Apple Tree Story

This brings me to the apple tree story which I have heard some other people talking about. We should all aim to have multiple sources of income such that we do not over rely on only our earned income. The way to do that is to grow more apple trees. Each apple tree is a money generating tree such that once you have enough apple trees, you can safely retire.

Apple trees can be bonds, REITs, dividend paying stocks, rental property, options and even trading income or businesses.

Combine PAY YOURSELF FIRST and the APPLE TREE.

If one combines both approaches and automate your savings while investing your savings into apple trees and re-investing whatever income you get from the apple trees, I think you will not have a problem retiring when you reach the retirement age in Singapore. This is just my 2 cents thought. Feel free to expand and share your strategies.

Chinese New Year Greetings

A Most Happy Chinese New Year in advance to all readers!

It seemed like just yesterday that I was wishing everyone a prosperous Chinese New Year and it seems like the new year is upon us again.

Chinese New Year is always a time of visiting, good food and good company for me. It is more of a family tradition than a CHINESE tradition per se. I am quite certain that each family celebrates Chinese New Year very differently. Can't wait to eat all the bak kwa and stuff.

This event is also special because it is also the time when Resorts World Sentosa will be opening the first casino in Singapore. After so many years of planning and building, it seems like the first casino will finally open its doors on CNY.

Zodiac Cycles

Here is a list of the various zodiac cycles to mark out on your calendars:

•Tiger : February 14, 2010 - February 02, 2011
•Rabbit : February 03, 2011 - January 22, 2012
•Dragon : January 23, 2012 - February 09, 2013
•Snake : February 10, 2013 - January 30, 2014
•Horse : January 31, 2014 - February 18, 2015
•Sheep : February 19, 2015 - February 07, 2016
•Monkey : February 08, 2016 - January 27, 2017
•Rooster : January 28, 2017 - February 18, 2018
•Dog : February 19, 2018 - February 04, 2019
•Pig : February 05, 2019 - January 24, 2020
•Rat : January 25, 2020 - February 11, 2021
•Ox : February 12, 2021 - January 31, 2022