Sounds like a pretty prudent guy, kudos to him! Plus he has the drive to start his own business, which not many people do. Thumbs up too!
The Straits Times
Nov 20, 2011
Better to invest than save every cent
Gym owner tries to emulate investors' good habits of being humble and prudent
By Joyce Teo
Personal trainer Keith Tan Siang Leong, 26, began saving diligently in 2009 because he wanted to start his own business.
'I know that businesses may run into cash-flow problems so I didn't dare to spend much,' he says.
He started operating Aileron Wellness gym at Amara Sanctuary Resort in Sentosa in March, after investing $100,000 for a half-share in the business.
He roped in two other partners, whom he got to know only fairly recently. His friends were not keen to join him; they were wary about the risks of starting a business.
'I wanted to move up from earning by the hour. I didn't want to be just a trainer,' says Mr Tan.
That means he is still training clients while learning the ropes of running a business and busy getting certifications so he can train instructors.
A typical day may see him training clients at the Conrad Hotel gym in the morning, at the Aileron Wellness in the afternoon and back at the Conrad in the evening.
Q: Are you a spender or saver?
Before I started my business, I made it a point to save most of my money.
But now I'm more of a spender, though I will try my best to buy only what is needed. I try to save 30 per cent of my income and invest 15 per cent of it. The rest goes to spending. I spend mostly on fitness equipment and courses as well as trips to get my certifications.
Q: How much do you charge to your credit cards every month?
I have one credit card. I try to charge as little as I can. Some months, I do not use it at all.
Last month, I charged $4,000 to my card because I bought air tickets to Bangkok and paid for my hotel stay there as well as fitness equipment.
Q: What financial planning have you done for yourself?
I have a $100,000 whole life policy. I have attended seminars on wealth management. My investments are in mutual funds and stocks. I also keep some cash in a savings account.
Investing is better than just saving every cent. I think the most important thing to do is to educate yourself on investment by reading a wide range of books and starting small.
I speak to people who are knowledgeable about investing as often as possible and try to emulate their good habits like being humble and prudent when it comes to investing.
Q: Moneywise, what were your growing-up years like?
I developed a fitness craze during my national service days and worked as a personal trainer when I was doing my banking and finance degree at the Singapore Institute of Management. In this field, you can make a five-digit sum a month if you are hard-working.
I live with my parents and an elder sister. My mum does administrative work and my dad is with the Singapore Armed Forces. My mum is the one who always tells us to work hard, save as much as you can and prepare for a rainy day.
Q: How did you get interested in investing?
I read a book on technical analysis when I was 21 and became interested in the stock market.
I then invested about $4,000 in a few stocks, including Yangzijiang Shipbuilding. I have since bought and sold about 20 counters.
Q: What property do you own?
I just bought a four-room flat in Tampines for $568,000 with my girlfriend. It is a Design, Build and Sell Scheme development called Central 8. We bought it because it is near both my parents' place and her parents'.
Q: What's the most extravagant thing you have bought?
My flat.
Q: What's your retirement plan?
I guess the best retirement plan would be knowing how to invest, what to invest in and when to invest. I hope to be financially independent before the age of 35 and think I would need about $3,000 a month in my golden years.
Q: Home is now...
My parents' five-room flat in Tampines.
Q: I drive...
I sometimes drive the family car, a black Honda CRV.
joyceteo@sph.com.sg
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WORST AND BEST BETS
Q: What is your worst investment to date?
It was some mutual funds that didn't perform very well.
I invested $15,000 in them in 2007. I sold them late last year at a 30 per cent loss.
I was influenced by the people around me at that time. It was a case of not putting enough thought and research before I bought them.
Q: And your best?
I bought Genting shares in 2008-2009 for 99 cents at first, and much less later on. The lowest price I got in was at 58 cents. I sold them for around $1.20 last year.
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