My personal experience in managing my own money

Zaobao's CEO forum

Although I earn a high salary as a chief executive officer, I spend my money carefully.

I give a monthly allowance to my wife to take care of the food and other household expenses. I spend carefully on my entertainment, clothing and other personal expenses. If I am not using the company car, I prefer to take a bus or MRT, rather than call a taxi.

I think carefully, before I buy appliances, furniture or other household needs. I keep things for several years and will not replace them unless they break down. When I travel on holiday, I will fly economy class and stay in modestly priced hotels. I do not want to be extravagrant.

My wife share my same values and avoid spending extravagrantly. But, she likes to wear nice clothes and to look pretty. Once a while, she will pamper herself.

I make a large monthly contribution to the Community Chest of Singapore to help the needy.

I have a lot of savings each month. I invest most of my savings in a large, well diversified investment fund managed by NTUC Income. I invest for the long term, i.e 10 years or longer. During the past few years, the fund achieved a very attractive rate of return of more than 15% per annum.

Previously, when I invested on my own in shares, I did not make much gain. Some of my shares made money, but others lose money. On the whole, I do make a small gain, but it was not spectacular. I learned that it is better to let the professional fund manager make the decison for me. They have more time to monitor the investments in the fund.

I live in my own house and own two other properties on rental. I bought my properties at a high price, so they do not make any profit for me. They earn a modest return on the rental.

People who buy property at a low price can make a big capital gain. But, in my case, I am not so lucky with my property investments.

If I were to earn a much lower salary, I will certainly have a monthly budget and make sure that at least 15 percent of my salary is saved for the future. I will be even more careful with my monthly spending. I wish to advise all young people to have a similar approach towards their spending and savings. Do not be extravagrant. Be frugal.

I have three children. Two are working. My youngest is still in university. I encourage them to follow my financial habit and be frugal.

I have taken an investment-linked policy and invested a lump sum for each of my three children. I prefer to give them some of my assets now, so that they can have some money that now belong to them. This will give them a sense of financial well being and independence. So far, they have been careful, and allowed the savings to accumulate and earn a good return. They have not taken out the money to spend.