It’s pretty wild that throughout the varied permutations of time, one thing doesn’t seem to change. Its medium and mode of transfer has seen different phases, but money maintains its hold on us. This strange relationship we have with the ability to purchase has barely evolved.
Might even go so far as to say that it has taken two steps backwards. The most common associations with the term are power and greed. These two concepts continue to power our economies and way of living; where profit maximisation of any nature is priority.
This has led to devising ways to accomplish faster and cheaper to beat out the competition on the manufacturing side, and us buying faster and cheaper from a consumer angle. Both fronts fuel operations that heavily compromise in the name of productivity, and result in a lot of harm. Think Fast Fashion, Food and the models that “sustain” them.
As Former New Zealand Prime Minister Jacinda Ardern states, "Economic growth accompanied by worsening social outcomes is not success. It is failure."
It doesn’t help that we also treat people with money differently—even if they weren’t the ones who earned it. Why does the knowledge that someone belongs to generational wealth change the way you regard them?
Just gander at the insipid shows on Netflix. If there ever was a reality tv competition on how much charitable work an individual can do, viewers will probably still choose the documentary on billionaire lifestyles. So the blame isn’t even on the algorithm when it only churns what has proven to earn the most eyeballs.
What Scottish economist and philosopher Adam Smith penned three centuries ago still stands today, where The Wealth of Nations is not measured by gold but the living standards of the whole population: “Every man is rich or poor according to degree in which he can afford to enjoy the necessaries, conveniences, and amusements of human life.”
It could boil down to our perception of money, as a predominantly inherent misconception of what it can bring. You think it’s an obvious statement, but it doesn’t change the fact that you hanker after a big house and nice things. Ultimately, you believe that’s what will make you happy, and money is the means to achieve it.
I’m doing it for my family, you may argue. Earning a living wage is one thing; think long and hard about what a child truly needs to feel loved and fulfilled. The richer they come, often the more unhappy they are. Any deviance is likely an inherited mindset.
It’s like what comedian Jimmy Carr coins as ‘Life Dysmorphia’. We’re living in a great era (Singaporean households didn’t have ensuite bathrooms merely 60 years ago), but we still think our lives are could be better.
We continue somehow convinced that if we’re not happy now, we will be when we get there. When the truth is if you’re not satisfied right this moment, you’ll never be no matter the size of your bank account.
It’s that time of year again: graduation season—when the air is thick with anticipation and the promise of new beginnings. New university graduates step into the next phase of their lives, and the “so...now what?” feeling tingles. A realisation that the complexities of life after college starts to settle. Are there a lot of decisions to make? Absolutely. Is it exciting? Without a doubt. Is it scary? It can certainly be daunting. It is the threshold of a new chapter, filled with endless possibilities and uncharted territories.
I remember leaning into that feeling myself when I first graduated. One’s transition into the working world marks, for many, as the start of independent financial decision-making and one’s financial journey. Prior to this, financial decisions were likely made for us, but when the first paycheck comes in and decisions about why you should consider getting a credit card, the specifics of shifting from your parents’ health insurance, and how to best utilise your savings come into play. Suddenly, (for the responsible adult, that is), with the concept of financial self-empowerment, comes considerations about setting up retirement savings to managing debt and starting your investment journey.
Fast-forward to today, I’ve been in a cradle-to-grave, womb-to-tomb sort of business for the past nine years as a financial planner and business owner. One of the ancillary- but-meaningful parts of my career is the unique vantage point from having different client conversations across different demographics. That has given me a valuable perspective on wealth, success and the financial habits that shape our lives. I get to be next to my clients in my age group; to witness and grow alongside their dreams and aspirations as I build my own. At the same time, I work with successful business owners and professionals in their 40s and 50s—a glimpse of what sustained success looks like and the pathways they took to achieve it. These interactions have not only broadened my understanding of financial planning but have also enriched my ability to empathise with diverse life experiences and ambitions. I don’t want to be preachy—and I do think financial advice and planning need to be catered to the individual, because humans are complex—all of us bringing our own set of lived experiences, opinions, idiosyncrasies into our worldview on money. But I thought I would share three consolidated musings, which come from some of the commonly asked questions and my lived experiences, on building wealth from scratch.
Money is a lot about psychology and the behaviour attached to it. It can be daunting, but you don’t need a CFP to build wealth. In fact, having a degree in finance or financial planning is moot if knowledge isn’t applied. Start with being very real with who you are, where you are at, what your goals are and how you’re going to take action towards those goals. It could be about having that conversation about what money means to you, and if the pursuit of wealth is actually important. You could be a fashion writer or an industrial engineer with zero interest in anything finances-related. Or you could be an investment banker with a CFA who is well-versed in corporate finance but with no time to look at your own. As long you have a goal and decide to retire by 55, even if financial planning isn’t the most top of mind, you’ll want to have that real talk about what you need to be doing constantly to reach your goals. The earlier we realise that we are responsible for ourselves, and that we are ultimately in a primary capitalist (and meritocratic, thankfully) society, then the sooner and better off we will be.
You don’t strictly need a financial planner because if you’re meticulous and naturally good with these sort of things, you should be fine. But sometimes, having another—a good financial planner who understands you as a person, who asks the right questions—to be a sounding board for ideas and provide qualified advice really can help. You are not worse off from not having engaged one. But if you can be better off, why not?
Most people who do nothing wrong will do nothing. Financial planning can be a somewhat un-fun conversation but it is a foundational core tenet of our life if we want to see good long-run quality-of- life outcomes.
We don’t choose the hand we are dealt in life, and some people have more opportunities than others. But it’s not a competition and we owe it to ourselves to decide how we want to play the game.
I often tell younger clients that a large determinant of where wealth will come from (assuming it wasn’t inherited), is the jobs they take and/or the things they build. The early years after graduation, our career choices, entrepreneurial endeavours, and even the skills we develop can have a profound impact on our financial future, much more so than whatever investment opportunities we take. Sure, interest compounds over time, but a good financial plan should also look at career progression. Making it a point to change jobs with a 25 per cent pay increment every four years, with an employee share options programme or starting a side hustle that creates an additional stream of income and a potential multiplier effect has a much larger effect on one’s financial future than trying to trade a SGD5,000 portfolio of savings to achieve 10 per cent per year.
We should still set a budget and put funds aside for these things, but the focus in the earlier years should be placing ourselves in positions where we are in the right rooms, to build the right skills and to capitalise on the opportunities with trusted individuals. From a risk planning perspective, it makes complete sense to protect one’s ability to earn their income adequately through the use of insurance. Leverage doesn’t just come from banks; it also comes with the influence and positive long- run positions we put ourselves in.
There is a Chinese proverb that states that “wealth does not pass three generations”. Another version of this saying, of Scottish origin, is “shirtsleeves to shirtsleeves in three generations.” These proverbs reflect the idea that wealth gained by one generation can be lost by the third generation. In essence, the first generation works hard to create wealth (from “shirtsleeves” or manual labour) and the second generation benefits from and manages this wealth. But by the third generation, that wealth is often squandered and they end up back in “shirtsleeves” or having to work hard all over again.
Increasingly, though, one effective solution to this problem is the use of life insurance and trust structures as tools for generational wealth transfer. Families can create a legacy that multiplies generational wealth in cost- effective ways. Tools and structures which were once accessible by the ultra-wealthy, are also now increasingly democratised. Education and financial awareness are rising, along with the availability of qualified professional advice. And trust structures can be utilised to manage and protect family assets, providing clear guidelines on how the wealth should be handled and distributed. By combining life insurance with well-designed trust structures, families can mitigate the risks of the third generation falling back into financial hardship, thus breaking the cycle and ensuring that the wealth created endures.
Yet, why doesn’t everyone for whom it makes sense to do this, do this? From my professional standpoint, such issues can now be easily solved, but again, most people who do nothing wrong, do nothing, and that is what’s probably wrong. The perceived idea that these things are complex (they can be), coupled with the technicalities of it all possibly bore most people into inaction; again characteristic of the human condition.
In the end, one’s journey in building wealth is but one part of it. Preserving wealth also requires a commitment to proactive planning and a willingness to utilise available resources. One can build from scratch but keeping it and building from strength to strength is where true financial wisdom and discipline come into play.
As a financial planner of eight years, I have had thousands of conversations with my clients about their money. Today, as one who specialises in working with two main segments; professionals and business owners, I meet people from a wide range of industries—from tech, to law, to finance (both traditional and de-fi), to family business owners at various stages of their empire-building. This rich myriad of individuals has provided me with a profound insight into the various ways people think and manage their money.
While giving professional advice on a range of topics from insurance to wealth and investment planning, I also get to observe the fascinating interplay firsthand on how different people have different proclivities in their habits and approach on money management.
I’ve absorbed the learnings into one large mental tapestry, and have of late turned some of these thoughts inward to reflect on ideas associated with what money means to me, what it means to be wealthy, and what the Holy Grail of one’s financial and life journey should be. After all, money, in its essence, is a powerful force that intertwines with our lives, shaping our choices, dreams, and ultimately, our future. But it's the way we perceive and interact with money that truly determines its impact on our lives.
Growing up, I thought a lot about money. My family wasn’t poor, so I never had some rag-to-riches inspirational story. But we were far from wealthy as well, and we had times where I could sense that times weren’t so good. My parents are traditional so we didn’t talk too much about these things back then, but the awareness that things weren’t rosy came to light at various moments.
There was the time that for my 21st birthday, my mum showed me a set of papers over lunch. It was for an investment plan she’d made on my behalf, as a gift for my future.
Seemed like such an adulting thing to do. I signed for the papers and she helped me put them away in a cabinet at home. I didn’t think too much about it and put it away in my head as well. About a year later, though, my mum came back to me and sheepishly told me she needed to liquidate. I didn’t ask much further and said I understood.
Then there was the time that I got a spot for an exchange programme to Norway, but my family’s financial circumstances led to me pulling out. I said I understood. When I found out later on that finances were thin because my mum was the sole breadwinner supporting the family, I really did understand.
Money is the underlying currency of everything. It wasn't just the material possessions it could buy; rather, it was the potential it held to provide security and open doors to opportunities.
As I embarked on my journey as a financial planner, I realised that my personality traits, circumstances and background played a significant role in shaping my relationship with money—an awareness I bring to understanding my clients better today as well.
In hindsight, those formative years also created a sense of wanting more. It wasn’t a desperate hunger, nor greed, but I would describe it as an innate curiosity to see how people lived, behaved when there was an abundance of money, or when there was a lack. It then gave rise to a calling for me to make a difference as a financial planner. The ideas around personal finance, financial planning and money intrigued me. And I found myself resolved to work hard to never be of lack of it. Still, I always knew that money is means to an end.
So what is the end? What is the Holy Grail of financial planning and self actualisation?
If I were to define it from a financial planner’s lens—be it wealthy or not, it's the delicate equilibrium between living a fulfilling present and securing a prosperous future. It's the art of juggling dreams, goals and practicality with finesse, like a seasoned tightrope walker crossing the chasm of financial uncertainty.
To achieve this balance, we must first understand that the holy grail is not a one-size-fits-all solution. It's a bespoke quest, tailored to the unique circumstances, aspirations and challenges of each individual. It requires deep introspection, an honest assessment of priorities, and a willingness to make informed decisions. That is why I love what I do—embarking on journeys with my clients to guide and grow with them.
The Holy Grail demands a solid foundation built on financial literacy. It's about understanding the language of money, deciphering the intricacies of fisical responsibility, and demystifying the enigma of compound interest. Or at least, proceeding with action to take advantage of said enigma. Without action, the path to financial success remains just that—a path. Traveling the path to the Grail sometimes warrants a good companion—like a trusted financial planner!
The Holy Grail is also not just about numbers and spreadsheets. It's about aligning our financial choices with our values and passions. It's about pursuing a career or starting a business that brings fulfillment, investing in experiences that create cherished memories, and giving back to causes that resonate with our souls. It's the recognition that true wealth extends beyond material possessions and embraces the richness of a purposeful life.
The quest for the Holy Grail necessitates perseverance and self-control. It demands that we resist the pull of rapid gratification, exercise patience in the face of market turbulence, and maintain our long-term goals. It's a marathon, not a sprint, and the only ones who can endure the difficulties and stick to their financial strategy will find the magnificent prize at the conclusion of the journey.
Throughout the journey, one can expect to encounter various trials and tribulations, testing our character and resolve. Only those of unwavering faith and concerted action will be deemed worthy to behold the Holy Grail. There is much to be learned then, in the quest itself for a fulfilling present and the security of a prosperous future.
The financial landscape is ever-changing, with new technologies, economic shifts, and unforeseen circumstances. Getting to the Holy Grail requires us to remain agile, to adapt our strategies as needed, and to seize opportunities that arise along the way. Flexibility is the key that unlocks the door to continued financial growth and resilience.
So, my fellow treasure seekers, as we’re all on our paths to hunt for this Holy Grail, the road beckons us with promises of a life well-lived, of dreams realised and of a secure future. The true value lies in the quest not just in the destination but in the journey itself. It's in the knowledge gained, the lessons learned, and the growth that accompanies our pursuit of financial mastery.
May we have the courage to stay the course, arming ourselves with knowledge, discipline, adaptability and a steadfast determination to strike that perfect balance. But don’t forget to pause and appreciate the moments along the way!
