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 doesnâ€™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 canâ€™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 wonâ€™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. Donâ€™t withdraw the money no matter what happens, until the day you retire.
4. Donâ€™t listen to anyone who wants you to withdraw your money in the bank to invest in something that you donâ€™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 â€“ plus & minus
- They follow the rules strictly. Smart people filter the stuff they donâ€™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”