We might have seen some people suddenly acquire a substantial amount of wealth in a short time. They might suddenly inherited great wealth from their passed away ancestors, or hit a lottery, or get a great contribution from Uncle Lim (Genting Casino). But they became poor again in a few years time. Some of them even became poorer than before they got rich! How can this be?! It is because having a lot of money is not necessary rich. It is what we do with the money that determine how rich we are.

When Ken hit the lottery of RM1 million in year 2005, he bought a BMW 7-series car with 20% down payment. He also bought a house with market value of RM1 million with 20% down payment. He quited his day job, and upgraded his lifestyle. He dine at luxurious hotel. He change his girlfriend every two weeks. Forgetting that the million he got is just a plain of luck, he finally went broke again early this year. He was unable to pay the installment for the bungalow mortgage and the BMW car loan. You might have heard such story many times.

Giving you a lot of money will not make you rich. If Ken have the proper money management skill, it will be a different story.


KCLau
KCLau

Personal finance author and trainer

    9 replies to "Money won’t make you rich"

    • Ernesto

      I believe to keep up with the Joneses also means trying to compete or be on par with your neighbours, friends or foes. If one of your neighbours bought a bmw, the next day you would book one.

    • Adventures In Money Making

      In California, a study showed that over 90% lottery winners are WORSE off after 5 years than before!!!!!

    • kclau

      @ Relax, you are right! When people don’t know how to manage their money, it will make them poor even if he gets a lot of money.

    • Relax

      Ken sounds really silly to me.

      I think poor people tend to catch more money,
      while rich people catch more assets.

      Maybe Steve Jobs is damn smart to get shares and assets and throw away his income willingly.

    • kclau

      I see.. if it means ‘kiasu’, why “Jones” is known as that kind of person? Any famous Jones that started the story?
      Thanks for your input.

    • LifeOfAbundance

      It’s a figure of speech. I think is what u guys refer as ‘kiasu’ 😛
      What he has, u want too, better and more expensive, more ‘sek chui’

    • kclau

      Hi, I have heard a lot about the Jones. If not mistaken, Jones refer to those spendthrift. May I know what is the history that made the Jones as reference?

    • LifeOfAbundance

      It’s a sad fact that ppl like to keep up with the Jones. Schools don’t teach u how to accumulate wealth. Is it any wonder why only a portion of the population are rich. That’s how it is…lol

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