Currently Reading...
Image by .nele via Flickr

Alice was not a bright student. She barely made it through high school. Without any certificate or diploma qualification, all she can earn is $1000 a month by helping out in a law firm. She is asked to perform very simple and routine tasks, such as photocopying documents and other errands of the company. Simply said, her low IQ doesn’t allow her to perform any complicated task.

She is slow. Some people would even see her as a stupid person. If she needs financial advice, what would you tell her?

When come to personal finance, someone like Alice in this case is not expected to make wonder out of her money. You can take many hours explaining to her about mutual fund, but she just can’t get a clue about this complex investment. No financial planner wants to serve her since there is really a great barrier in communication.

Forget about telling her how to invest in real estate, shares, unit trusts or commodity. She just won’t understand what you are talking about.

However, Alice is not helpless. Her uncle is a very wealthy person. He gave Alice a set of rules as guidance for her to manage her money. Alice is stupid enough that she just obeys all the rules. 30 years later, Alice is wealthier than all her siblings who are more intelligent (higher IQ).

If you are stupid, follow these rules

Here are the rules her uncle told her since she started working 30 years ago:

1. When you get your salary, save half of it. You can only spend the other half.
2. Put the money you save in a bank saving account.
3. Don’t withdraw the money no matter what happens, until the day you retire.
4. Don’t listen to anyone who wants you to withdraw your money in the bank to invest in something that you don’t understand.

In fact, there are many smart people having trouble with snowballing debts. They are smart enough to spend money on all kind of stuff. But not stupid enough to save and follow the stupid rules of saving money.

When you spend some time to think about it, stupid people has the advantage when it comes to saving money. Here is why stupid people can save more:

  • They only know simple mathematic operations – plus & minus
  • They follow the rules strictly. Smart people filter the stuff they don’t like.
  • They keep it simple when managing their money.

If you are smart, but not rich, think twice. Are you really smart?

Read this article in Malay language: Menyimpan Cara “Dungu”


Personal finance author and trainer

    24 replies to "Save money the stupid way"

    • […] KCLAU gives interesting tips to Save money the stupid way […]

    • […] KCLau presents Save money the stupid way […]

    • […] Artikel asli dalam bahasa Inggeris:  Save Money the Stupid Way […]

    • May 1031 Exchange Carnival…

      Welcome to the May 6, 2009 edition of 1031 exchange.

      Deposit Accounts presents The FDIC Is Running Out of Money: Is Your Money Safe? posted at Deposit Accounts.

      Patricia Turner presents ETF FAQs: Common Questions About ETF Investing | ETFdb poste…

    • […] presents Save money the stupid way posted at KCLau#8217;s Money Tips, saying, Simple ways to save […]

    • […] Clyde hasn’t bought any lottery ticket but he is much richer then Bonnie, even though he save money the stupid way. This is the story of Bonnie and […]

    • 1031 Exchange Carnival – April 1, 2008…

      Welcome to the March 29, 2009 edition of 1031 exchange.

      KCLau presents Save money the stupid way posted at KCLau’s Money Tips, saying, “Simple ways to save money”

      Diego Cervantes presents The Free Online Tax Filing Toolbox: 25 S…

    • […] presents Save money the stupid way posted at KCLau’s Money Tips, saying, “Simple ways to save […]


      Bankruptcy & Debt Carnival #30- March 30th 2009- Now Online!…

      Welcome To The 30th Bankruptcy & Debt Carnival!

      March 30th 2009

      *Posts presented according to subject*
      We’re Back – FINALLY! The technical problems seem to have been fixed..this is a big carnival because we need to catch up – so here we …

    • Brook

      What you are trying to tell is very true indeed! Nice Post!

    • Millionaire Mind and Making Money Blog Carnival No. 13…

      Welcome to this weeks edition of the Millionaire Mind and Making Money Blog Carnival. This week I present a selection of some of the best articles from my fellow finance, money making and investment bloggers. Thank you for all of the great submissions….

    • […] presents Save money the stupid way posted at KCLau’s Money Tips, saying, “Simple ways to save […]

    • Jason Unger

      Sometimes it’s the simplest things that have the biggest impact.

      For example, automating your savings, investing and bill pay has a huge reward for only a little time commitment. When you make that kind of change, you feel the positive effects without any more effort.

    • Pimp Your Finances

      Carnival of Twenty Something Finances – Mustache Edition!…

      In some ways, improving your finances is a lot like growing a mustache.
      It starts with a plan, and isn’t something that happens overnight. You have to work hard at it, make sacrifices, and always keep your goals in mind.
      It takes patience, and re…

    • […] presents Save money the stupid way posted at KCLau’s Money Tips, saying, “Simple ways to save […]

    • TStrump

      It goes to show you, personal finance doesn’t have to be rocket science.
      Find an approach you feel comfortable with.


      Save money the stupid way…

      Simple ways to save money…


      Save money the stupid way…

      Simple ways to save money…

    • yan

      Great post. It’s not easy to be both smart and rich. Agree with you, the smarts has a lot of stuff to consider, to filter…

    • mtsen

      Oh … all along what I have been promoting are the stupid stuff …

      • KCLau


        you are humorous ..
        your stuff is for the smart people.

    • LOKE

      Everyone of us knows the principles of saving first and spending later and delayed gratification. But in reality, not many people follow them… I think Warren Buffett is one of the experts applying the principles successfully…

    • Kevin

      Another that, I have bought your E-book of

      It is so useful and meaningful to me.

      But I have got some understanding problem in this e-book, do you mind make some tutorial to me ?

    • Kevin

      Hi, Mr Lau.

      Good post about telling us the rule of Alice obeys.

      I will take note of my notebook, it look simple but action are more strictly.

      What do you think ?

Leave a Reply

Your email address will not be published.