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Friday, 4 March 2016

Only know how to earn; don't know how to spend

I met up with Andy from TACOMOB for brunch yesterday, and he mentioned the above phrase that I must steal with pride!

(My mind starts to veer into another direction) 

You know how we Singaporeans were brainwashed since young that to earn more, we must study hard and work hard?

OK, maybe NOT parents who are land owners. They won't do that to their children since that's not how they got to be land owners in the first place...

Look around.

Observe the land owners and shepherds that you have come into contact with.

There's a common red thread linking all of them isn't it?

They all know HOW to spend money well!   

P.S.   Something to think about on this wonderful day. See? Once STI broke 2700, its now above 2800 in just 2 days. OK, still early days as STI must close above 2800 for the week for this countertrend rally to have legs.


  1. Replies
    1. CW,

      Since 2000 onwards, this 5-7 years cycle thingy is getting more and more frequent...

      I missed the 1980 to 2000 buy and hold 20 years bull run :(

      How nice if we can have another 20 years bull run once again during my lifetime?

      I'm not holding my breath...

      You have lived through the 1971 Bretton Woods reset.

      I think I may have to live through another "reset" in my lifetime...

      Oh well, living is winning :)

      Fingers crossed.

    2. SMK,

      Possible. Never say never ;)

      If the China National People's Congress comes out with more pumping money into the economy, and Draghi doesn't disappoint like in last Dec 15, we may get another "feel good" boost ;)

      All is forgiven; all is forgotten.

      Boy! Last night's NFP currencies were wild! Down 100 points; up 100 points - all in less than 30 minutes.

    3. lol i don't trade currencies.

      I was waiting for 27XX, now it is 28XX, I wait some more.
      mean time, pick up some short term kopi lui gains.

    4. SMK,

      Ah! An equity specialist like CW ;)

      What a short squeeze in STI!


    5. https://www.google.com.sg/webhp?q=define+specialist

      specialist yes, as in concentrating.

      but no expert or guru. ;)

      side note, just looking at the bond yields, usd value, us equities, and both china and sg indexes while an eye on the upcoming 'events', give me a very 'special' feeling inside too. -_-

    6. SMK,

      I take that back. You do use inter-market analysis!

      You just don't trade them ;)

      That makes you less of a panda or koala bear than CW.

      That means minus points in cuteness and adorability; but you gain bonus points in flexibility and agility :)

      Its a matter of WHEN right?

      Patience. Meantime we just sit down and drink kopi. Especially when the kopi is free :)

    7. just to point out, when I say I don't trade currencies or I specialise in equities, all these come with a time frame. when does it end? or change for me? I don't know. I don't see an instruments suitable for me to short term trade currencies.

      I do invest in currencies though. not telling which ones ;)

      I also hope that bonds will finally be suitable for me to invest in, one day. hopefully they choose to be so when I am fully retired, that will be the best timing.

    8. SMK,

      Since I also "invest" in currencies - not just trade them - I know what your mean.

      My net worth is also not 100% denominated in SGD ;)

      Bond investors have been given a new lease of life with negative interest rates!

      There is only so much more capital gains to be squeezed when interest rates are zero bound.

      Now that we have negative rates... What do you know!? More capital gains are possible even after a 30 years plus bull market for bond investors ;)

      Shorting bonds in anticipation of increased rates have been a widow making trade :(


      We are now in the realm of voodoo economics...

      In central bankers we trust?

    9. Depends on what deals they cut with US. They may have to explore other alternatives. Japan cut a very special deal.

    10. SMK,

      Now I'll watch to see what the ECB will do this week.

      Why would I put money in a bank when I have to pay them?

      Surely the money will flow somewhere where its welcomed.

      Follow the money flows ;)

  2. Replies
    1. coconut,

      Let's see tonight's Non-Farm Payroll ;)

  3. Hi SMOL,

    Haha, nice meeting with fellow bloggers :)

    I'm more scared of the 'know how to spend, don't know how to earn' type! haha!

    1. LP,

      Those types "eat oil" heavy heavy.

      Come to think of it, they are called communists or socialists!

  4. Smol,

    Which is more difficult? Earn or spend. Ask me how to earn a million...erh ask me how to spend 1 million ... Let's go have fun baby.

    Those who know how to earn dun know how to spend are real people, I can already think of a few. But they are minority. Now u think of people like LP scare of ... Know how to spend dun know how to earn.. A lot right

    1. Sillyinvestor,

      I'll explain in another post why knowing HOW to spend money wisely is not a skill everyone intuitively knows - even the so-called financially literates ones ;)

      Half the battle is won by earning more. But no savings is also no good.

      5000 years of Chinese wisdom - 开源节流。

      First earn more; then save more ;)

  5. Hi SMOL,

    It's funny but as I grow older, I don't spend so much money. In my younger days I spend way too much so I guess I'm now balanced! Haha

    1. Joyce,

      I'm balanced too!

      Tapping my index finger on my cheek.



  6. I am reminded of this phrase that goes something along this line "money itself does not offer you value, it is what you spend it on that gives value."

    1. Rainbow lady,

      You're the closest to my intentions ;)

      Hoarding money is one thing.

      Being frugal is another thing.

      If I am a woman, I'll never marry a "giam siap" man. I'll rather have a man who is willing to spend money on me ;)

    2. Hi SMOL,

      Your advice is right!
      There's a worse type - willing to spend money on himself but not willing to spend money on his lady.

  7. In our tiny speck of existence in this universe, we are gifted with a single limited resource that is the most valuable - time. Many have spent their time and converted it into money. Maybe some of them now realize they have no time to spend money? Ha!

    1. Kevin,

      Yes. Money lost can be earned back.

      Time lost...

      That's why when men suddenly discover their "mortality", we can see anecdotal evidence of them engaging in high risk activities:

      1. Buy fast cars and driving like wild mustangs.

      2. Having affairs with women at similar age as their daughters.

      3. Conservative with money their whole life, suddenly take BIG all-in bets on equities, properties, new fangled private startups they don't understand, etc... (They not exactly need the money do they? It's the need to feel alive?)

      If I 80 and starting to ogle at 18 year old mei-meis, I think that's me panicking that since I can't bring it with me, better spend it all first!


    2. Haha yes indeed! Let me quote something I once read -

      "Your time is limited, perishable, irreplaceable and unlike money, cannot be saved."


      Everything in moderation will do for me, thank you. If you need help in splurging your money one day, I'm always available, OK?

    3. Kevin,

      Ahem. I know you are a handsome man...

      But I don't do men.

      I prefer the gentle touch and the soft embrace of a beautiful woman ;)

      I'm flattered.

      (Next time don't anyhow offer to help other men spend their money. Got "price" to be paid one. LOL!)

  8. Hi Jared morning,

    The S'porean philosopher who eat "Kan Tang" meet the Ang Moh philosopher who eat "char kway teow!"

    It must be fun. How I wish I am there!

    My dad when still alive hate "Giam Siamp" people esp man who were Giam! ok.. he was poor yet not "Giam".

    I had met many ultra rich clients before n known to be super "Giam"

    The myth of the richer u r the more stingy u r has lots of truth in itself.

    Yet, it's not all true!

    My ex bigger shareholder boss always pay or always first to take out wallet during dinner, drinks, and even today when we meet as friends etc. The smaller shareholder boss of the two always let others pay! Although as he age, he becomes more generous. I prefer to pay for both of them when I meet them, as an act of gratitude.

    It's not the amount u spend, but the amount u spend relative to ur wealth!

    It's not the amount u spend, but to who? Urself only? or the needy, elderly u respect or the close ones u love?

    Sometimes I was wondering, the more u spend on "correct" channel, somehow the "more" u will earn! And more importantly, the more happy u r!

    So I strongly go against the notion of
    "Only know how to earn; don't know how to spend"

    1. Rolf,

      Ah! You've made my next follow up post a lot easier ;)

      Yes, I've observed those who know how to "spend" well are those who are more "successful" and happier in life.

      Its a bit like the law of increasing returns before the "prosperity charlatans" got hold of it and twisted its original meaning for their own gains.

      P.S. Idiot. Say I eat kan tang... Before I can take offense, I remembered I do like french fries, hash browns, mash potatoes, potato chips. Hey! I do eat kan tang!

      The only downside is I'll "german gas" quite a bit afterwards. Or was it because of Coke?


    2. lol at the highest level, those who spend get it back in full plus more.

      at the lowest level, those who spend only spend.

      at the mid level, those who spend may get some back, whether they get more back depends on how much they spend and what they do with the money they don't spend.

      (all above in monetary terms - i still a bit more 'science stream' lol)

    3. SMK,

      Small money no spend; big money no come ;)

      US is interesting. If I make a campaign donation, and if my candidate wins, well, time to collect!

  9. But have to be smart not to donate to Jeb Bush! lol....

    1. Rolf,

      The landed class would hedge their bets by "supporting" a couple of candidates.

      If all their candidates fail, well, time to emigrate!

      Don't need to look far. Many tycoons have fled to the "safety" of Singapore when their political "kawan kawan" have been booted out of office.


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