In this information age we’re living in, we’re exposed to a lot of different products. The marketing guys have been cracking their head on how to make us spend, spend and spend. And some people go on to say that if we don’t spend, nobody is going to save the economy. So, SPEND ! Funnily, the same people who told us to spend, ended up saving a lot of money for themselves.

Anyway, it’s obvious that spending is wayyyy easier than saving nowadays. That’s the habit that has been instilled by the big corporations of the world. And that’s the habit which might pull us down if we’re not careful enough.

Some of us spend like there’s no tomorrow. We have ZERO savings and we never plan for the future. For some, they would say “tomorrow might not come, so why worry so much?”. But sad to tell you the truth, tomorrow will most likely come whether you like it or not. And tomorrow might even bring some nasty surprises for you – road accidents, theft, robbery, hefty medical bills, just to name a few.

Faced with all these nasty surprises of today, what would you do? Remember that they will get worse tomorrow, if you don’t solve them now. This is where all those money you’ve saved up come into the picture. There are times when we just need money to pay for urgent things like this. For example, if your son is down with fever (touch wood), and he’s not covered by any medical insurance, and you’re very poor. What can you do? Borrow money from a friend to pay for your son’s medical fee? Isn’t that pathetic? We’re talking about few hundreds, and you can’t even afford that!

Another example, I was accompanying my dad to see a doctor the other day. A couple looked very worried and sad when they came out from the doctor’s room. The girl was sick and the doctor told them to undergo an operation in the nearby specialist hospital. But they did not have the money and they were not covered by insurance. What would you do, if you were in that position?

Some of you might say “such unfortunate thing will never happen to me”, but how sure are you? We can’t predict the future. We can only learn to save for the future, just in case shit happens and we have the means to overcome them. So start planning and saving for your future. Think long-term. Do you really need to get that new car? Do you really need to spend so much on this dress? And, can you survive if one day, you’re being hit by a very serious illness (touch wood)? Can your dependents survive as well?

Think about it.

I’m quite a calculative and thrifty person – even though I’m the only one in the family who is not from banking or accounting background. When I mean calculative and thrifty, I don’t mean calculating every single cent or chasing after people just because they owe me 20 cent. What I mean is, I tend to save money more than spending them. Oh, and I tend to brainwash myself into not buying something I really wanted.

There are times when I would spend months just to decide whether I should buy a particular item – the more expensive it is, the longer I will take. For example, the new laptop that I bought took me a whole 6 months to think about it – how much do I need to pay every month, do I really need it, what are the things I want to use it for, is there any cheaper option, bla bla bla. Yes, that is the type of person I am (but funnily, I don’t mind spending money on my family).

Sometimes, my parents feel both happy and sad after seeing me like this. Happy because I’m a financially conscious person and know how to manage my money well …sad because I’m reluctant to buy something which I really wanted (I don’t really have many WANTs).

Then one day, my dad told me a story about his friend. This friend of his is a very nice guy but just like me, he is also a pretty thrifty person. He would only spend when there’s really a need to do so. Otherwise, he would normally convince himself that he did not need it. In case you’re wondering, he’s actually quite rich. Few years ago, this guy was admitted to hospital due to cancer. Fortunately, he has recovered but the experience has completely changed his life. Nowadays, he still manage his money wisely but he is willing to buy the things that he wants.

After sharing with me that story, my dad said that it is good to spend wisely and even better if I don’t have too many WANTs (a lot of young people nowadays have too many WANTs that their credit cards could not accommodate). But life is short, and we should pamper ourselves once in a while by buying the things that we want. And there’s no need to justify every single thing. If you want something, can afford it and it won’t jeopardize your financial condition, then just buy it. Just be sure to utilize and cherish that thing after that.

Thinking about the story my dad told me and the advice he gave me, I feel that it is true. Life is short and unpredictable. If we don’t pamper ourselves now, when do we plan to do that?

Save for the future, but also use some money to pamper yourselves. We only live once after all.

p/s….Well, I’m not asking you to become like those people who have unlimited WANTs though….those are pretty unhealthy habits.

I went to back to my hometown in Johor to visit my grandmother and other relatives over the weekend. It’s really good to be home. And while spending my time with my relatives (young n old), I thought of this short story and want to share it with you all.

Once upon a time, there was this young merchant who has been regarded as a genius by his relatives and friends. At a young age of 20, he already has its own business and led a comfortable life. Although he’s considered pretty rich by many, he has never look down on his relatives and friends. That’s why many of them love n respect him.

One day, he decided to be more adventurous. He decided to move out from this small town and expand his business in the big city 5 hours drive away.

When he was in the big city, his business did well and he instantly became a popular figure among his new friends. But as the saying goes, good things don’t last forever. Few years later, his business failed and he was declared bankrupt. He was forced to sell his properties. But what hurt him most was that all of his so-called good friends have disappeared.

Left without a choice, he went back to his hometown, back to his relatives and old friends. He was surprised when the people there started to offer help to him (provide temporary accommodation, food, money) even though all of them realized he’s penniless. He was deeply touched.

He asked one of his old friends “Why are you still helping me? I got nothing to offer you now that I am penniless.”

His friend replied “Who cares about your money? We’re friends, remember? So don’t be so calculative!”

I’m not sure if this story helps you but this is actually what I’ve realized during my trip back to Johor.

In big cities like Kuala Lumpur, most people look at your properties – houses, cars, money, phones, etc. If you wear a cheapskate t-shirt into the LV shop, you will most probably be ignored. People just don’t care who YOU are. They only care what you HAVE. It’s a very realistic world.

On the other hand, in smaller towns where people know each other well, it’s all about YOU. They will respect and treat you well if you are nice to them. If you’re an asshole, you will still be treated like an asshole even if you’re wearing a Rolex or driving a BMW. What people care is the relationship you’ve built over the years with them.

Heck, even one of the electricians who I know quite well in PJ told me exactly the same thing! Oh, he’s from a small town as well.

Conclusion? Actually the things that you have outside (what you wear, what you drive, etc) are not as important as what you have inside (your personality, your past deeds, your kindness, etc). So if you think you can use money to buy respect…well, maybe it can work in big cities, but it hardly work in small towns (except against few greedy folks).

p/s…. good and true friends are hard to come by. These people are those who will still stand by you even if you’re in a difficult time…..irregardless of where you are. They will not ignore you even if you are penniless. If you have friends like this, always cherish them.

People take things for granted, especially the good things. They prefer to sit idling around (besides playing Facebook or watching Youtube) and get their monthly salary, than to improve themselves or look for other jobs which they can learn more. They prefer to stay in one place comfortably and assume that this comfortable place will be there for them forever.

But little do they know that nothing last forever in this world, including the good and nice things that they are enjoying now.

For example, one of my sister’s friend has been working for this small company for 10 years. He’s one of the founders, and his job is basically leading the subordinates. When asked about his future plans, he would reply “I’ve been working here for 10 years now, where else can I go? I guess I’ll just receive my monthly salary in this comfortable place until my retirement”. 6 months after he said that line, he was retrenched.

Another example, a story I’ve read from a book. There was this pretty lady who was looking for a rich husband and few years ago, she finally got her wish fulfilled. Her husband was a business owner and earned 5 figures salary every month. All she has to do was to go shopping (her kids were sent to the childcare centers). But thing took a drastic change one day, her husband got a stroke and was paralyzed. It was a big blow and a life changing incident for her. After all, she has been relying on her husband (and her husband only) all these years. But she has no choice. She has to take over the business without any business knowledge, and tried to survive by doing everything by herself. Fortunately, her husband’s condition improved few years later and she is now faring a lot better than before. It was a big change, but she took up the challenge bravely.

I believe many of you might have heard of stories such as the 2 above especially after the recession hit in 2008 and 2009 – former CEO driving a cab, a 50-year-old house wife of a former millionaire begging for a job which only pays 2k per month, a CEO who thought his products were so great that he refused to improvise and believed clients would still flock over to buy the products for many years to come…only to have his business closed down a year later due to lack of sales, etc.

The thing is, incidents like this do happen quite often in our world. Well, even if you try to live on a hill for 10 years, things around you will still change even if you don’t. The serenity and peacefulness of the forest area surrounding the hill that you once enjoyed could’ve been gone, replaced by…erm….. a motor way… a highway…or maybe a nuclear test site.

Maybe that is why the motivational gurus or career and business experts always tell people not to get too comfortable with the things they have now. I know it’s good to appreciate what you have. In fact, that is what I’ve been telling people to do. However, being appreciative and grateful are not the same as being too comfortable. If you think that every good thing will remain as they are now few years down the road, then perhaps it’s time to change your mindset. And in this case, being stubborn certainly does not help.

And don’t you worry too much. Good things can still be there forever, if you are willing to make the efforts to retain them. Improve yourselves, work harder and smarter, etc. That is what I’m going to do to keep the good things I have now, and I believe everyone should do the same too.

P/S …. Actually, this assumption that “good things will last foever” has been one of the main factors behind the fall of some of mankind’s greatest empires. Many leaders of the past always thought that their empire would remain the strongest in years to come WITHOUT any improvement. History has proved them wrong. Ahem, I think I’ve watched too much Discovery channel.

In 2009, there will be a lot of people with negative thinking. Morale will be at record low. People will begin to feel hopeless as their world comes crumbling down due to retrenchments and bankruptcy.

But is it really that hopeless? Maybe it is, but we shouldn’t let that bring us down and ruin our 2009.

Very meaningful quote from Henry Ford

In my opinion, now is already too late for any ‘fixes’. If anyone tells you they are trying to implement some fixes to improve their business, it’s a lie. I would say that it’s not a fix to improve their business, but a fix to survive. Retrenchments, pay cuts or any cost cutting measures are not meant for ‘improving business’. Quite the contrary. These things are done so that a business can still survive.

That is why I think there are 2 things which every person and every business should do in 2009.

• Survive
• Prepare

The first point is to survive. If we’re not able to survive this cruel 2009 (and probably 2010), then any preparations or improvements will mean nothing. For example, you will need a job and the salary to survive. If you’re jobless now, your priority should not be to improve yourselves or to go for trainings….it should be how you can survive for the next few months. It’s either you get a full time job, or you get a part time job or earn some side income. The objective here is the only and only “to survive”.

The second point comes after you’ve ensured you can survive. It is to prepare yourselves in terms of finance and knowledge. Lead a frugal life and keep as much money as you possible can, and put it as a reserve somewhere. Invest them if you want but never spend it on your WANTs even though there are plenty of promotions and sales this year. You will need that fund to push you to another level once the economy recovers. As for the knowledge, try to improve your skills and exposures by attending trainings, self-studying, doing freelance, networking, etc. The people you know and the skills you’ve acquired now will be very important when the economy recovers. In fact, these might actually be the deciding factor to see whether you are prepared for the next level, or not.

To be honest, most people will spend their time in 2009 and 2010 doing the first thing. These people are actually those who are slightly motivated. Those who are less motivated will just sit there complaining and do nothing. So by doing the first and then the second, you are actually putting yourselves or your business in a very good position to challenge for the top spot when the economy recovers (when companies are hiring again, and when people are willing to spend their money again).

Those are the 2 things that I would advise people to do, and also the things which I myself will do. Because the last thing I want is to miss out on this golden opportunity to make myself known to other people. I don’t think I want to enter the newly recovered economy as a nobody.

Hope it helps.

P/S…….Feel free to check out this useful article from Seth Godin – Slack.