There is this handsome guy, which most of us know, named Will Smith. In case you don’t know – he’s an actor. Can you remember which films he acted in? One is I-Robot. I’m sure there are a lot of films that he acted in which you would have seen. This guy says, which I think is very true,

“Too many people spend money they haven’t earned to buy things they don’t want and to impress people they don’t like.”

Andrew Chia, a local bestselling financial author (his authored the bestseller Money Secrets and Money Lessons) shared some money lessons with the live audience on one of our regular webinars.

Wow, that sounds very sad, doesn’t it? Trying to impress people that you don’t like. It really sounds like a futile exercise. His first statement is also very true. “Too many people spend money they haven’t earned.” Can you imagine how indebted people are today? If you talk about Malaysians, statistics show that every single day forty-one people go bankrupt simply because most of the time they overspend on their credit cards and personal loans. How do they spend it? Research says that most of the time it is spending and shopping at all the giant megamalls.

“Buying things that they don’t want.” Wow. “What are you telling me, Andrew? That sounds silly, doesn’t it? Buying things that you don’t want.” But that is what they actually do. I have friends who actually buy clothes, brand new trousers, and take them home. The plastic wrapper remains unopened for many years until they grow obese, and the trousers that they bought doesn’t fit them anymore. That is very wasteful of money, and people actually go bankrupt because of that.

That’s very silly. “To impress people that they don’t like.” Well, if our friends, and our relatives, or loved ones like us so much, they will not be bothered whether we drive in a big car or a small car, and we have an iPad or not have an iPad, will they? They will like us anyway. What is the point of trying to impress people that we don’t like?

So, instead of doing these silly things, which eventually cause us to be unsuccessful financially, let us always remember to put priority on saving for our financial freedom fund. People say money makes money. Well, that is only true to a certain extent. You need some capital to buy properties, stocks, and something else, don’t you?

Bill Gates became the richest man in the world even though he had no money to start with. Because he had to borrow some money from his father before he could become a billionaire, “money actually makes money” is correct to a certain extent. So, we have to save our money to build for our financial future.

Besides money, the other thing we need to invest on is knowledge. Other people fail because they do not realize that knowledge is a priority. They should prioritize improving their financial knowledge. Just having money is not enough.

For Premium Webinar Members, you can watch the full session here:

AndrewChiaMoneyLessons


KCLau
KCLau

Personal finance author and trainer

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