Me & My Money Series (Sunday Times)

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d.o.g made a good point about keeping quiet when making profit.

I remember a millionaire curry puff seller shared with a newspaper reporter how many curry puffs he sold a day, and after the article was published, he got slapped by IRS with tax evasion... Ouch!

Want to cheat; cannot boast.

Having said that, if my A&P budget limited, using the media (including social media) can be a good way to reach out to potential customers.

Media get to fill their blank pages or airtime, and you get to "plug" your producs and services. I scratch your back; you scratch mine.
Just google singapore man of leisure
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Kopikat Wrote:One reviewer estimated the restaurant is aro' 60-seater

Yup, missed that. So his numbers are possible:

60pax/turn * $15/pax * 2 turns/hour * 12 hours/day * 30 days/month
= $648,000/month

Of course, taking into account the complaints of slow service he might only get 1 turn/hour, which cuts revenue by 50% to $324k/month. And if he is only 80% full then he is down to $259k/month which still makes the $20-25k monthly profit possible. I'd say it's tough though given what I see among the listed F&B operators and the private F&B business people that I know.

Note that he has only been making this money since April, which is about 7-8 months. Whether he can keep it up for several years is a different matter. If he can, then he's really made it (assuming he doesn't blow the money on fast cars or the casinos). If not, well, he'll just be another business failure statistic.
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Perhaps the interviewees in this column still fail to get it - a car is NOT an investment, yet many claim it is their "worst investment". Also, I would not really consider endowment policies an investment, but more of a savings plan.

As for his home, I do agree that a 3-room flat is small considering he has 2 children, but to recycle his home equity into a $1 million house seems rather risky. He bought his place for $150,000 (fully paid-up), is planning to sell it for $300,000 and will inject another $200,000 in and take a 50% loan. So you end up with (yet) another loan (of $500,000 - a large sum indeed), and you still do not fully own a home (therefore, you do not enjoy the cash gains on the profit from your first property). Doesn't sound prudent to me but that's my personal opinion. Views, please? Huh

The Straits Times
Dec 18, 2011
Avid saver keeps his money safe

Boss of office interior design firm goes for insurance and shuns the stock market

By Joyce Teo

Conserving cash is a big part of Mr Tay Kyqo Kiat's life. He started saving when he was in Primary 1 and his savings have allowed him to buy his first car, pay for a wedding in Paris and start his own business. Soon, his savings will allow him to upgrade to a bigger home.

Four years ago, he set up an office interior design firm, Plus Advant. It was a one-man show in the first year. He then ploughed back the money he made into the business and roped in three partners, who are smaller shareholders.

He has invested $100,000 in the firm, which now employs 10 people and is profitable. It is based in a 7,000 sq ft space in Ubi.

Mr Tay, 33, says he was forced into the interior design industry as there were no construction jobs for him when he graduated from Singapore Polytechnic with a diploma in construction back in 1997. He started off doing computer-aided design work for an interior design firm before trying his hand at marketing interior design services.

Of Plus Advant, he says: 'My grand plan is to get it listed in 15 years.'

But for now, he and his wife Esther Lim, 34, are focusing on getting a private apartment in the next few months. They now live in a three-room HDB flat in Bedok.

His wife is a financial controller. Their son Memphis is two and their daughter Heidi is six months old.

Q: Are you a spender or saver?

My wife makes sure we save our money. I don't buy much for myself but I will happily spend on my kids and my wife.

In Singapore, you need quite a lot of money to have a good life.

It is important to save because you never know when you will urgently need funds. One needs to be frugal but that doesn't mean you need to save on everything. There are always good deals out there.

I charge about $1,500 on average every month to my credit cards. I have six of them, all from the same bank.

They are all linked to a Giro account, hence late payments are a thing of the past.

Q: What financial planning have you done for yourself?

My wife and I believe in insurance. We have $500,000 worth of policies, including a 10-year $50,000 endowment policy for our first kid's education.

I plan to invest in properties in the future when I have spare cash.

Q: Moneywise, what were your growing-up years like?

I grew up in a family of four.

My dad was an iron worker in a shipyard before he became a subcontractor. My mum was a cashier at a supermart.

Life was tough. At one stage, we were living in a small flat in Balam Road with my grandma and my uncle's family of six. Things got better when my dad's business grew and my mum was promoted to be a store manager. We moved to a five-room flat in Eunos when I was six.

We had very little money because my parents had to set aside money to pay for the flat. I had a piggy bank when I was in Primary 1 and every day, I would save half my pocket money. Since then, saving money has been a part of my life.

Q: How did you get interested in investing?

I bought my first endowment policy back in 1998 after I was introduced to it during my army days. We do need some form of investment to prepare for our retirement.

But I don't have an interest in the stock market and I am not good at investing my money. I'd rather save and buy endowment policies for now.

Q: What property do you own?

A fully paid 700 sq ft three-room HDB flat in Bedok that we bought for $150,000 in 2006.

We plan to sell it by June next year and upgrade to a $1 million private apartment in the east.

We were preparing to buy early this year but decided to wait for a better time. We will get a 50 per cent loan as we can sell our Bedok flat for about $300,000 and we have saved about $200,000.

Q: What's the most extravagant thing you have bought?

This would certainly be our wedding celebration in Paris and our honeymoon in Europe in 2005.

We spent $30,000 on the wedding photography package and solemnisation as well as a 14-day tour of Europe. It wiped out our savings then but it was once in a lifetime.

Q: What's your retirement plan?

I would like to retire to a country with more greenery. I think it would be nice to be able to manage a vineyard.

No doubt Singapore is a nice place, but I would like to go back to nature in my retirement years.

Q: Home is now...

The three-room flat.

Q: I drive...

A grey Honda Odyssey.

joyceteo@sph.com.sg

----------------------------------------------------------

WORST AND BEST BETS

Q: What is your best investment to date?


My business, as it is profitable. It will still do okay in bad times because people will move offices to take advantage of cheap rents, though they may spend less on renovations.

Q: What is your worst investment to date?

I would say it was my first car.

I was overjoyed when I got my driving licence back in 2000. So, I poured all my savings into a Honda Civic that cost me $82,000.

I drove it for five years and sold it for just $30,000.

Hence, I would say I lost about $10,000 a year, which wasn't that bad.

But car repairs cost me $20,000 in those five years because of my poor driving skills.

I should have bought an old car and avoided 'kissing' the backs of other people's cars or the trash bin, which would have saved me at least half of the repair costs.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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A depreciating "asset"(car) will never be an investment. As for any debt(so called good or bad debt), just remember you are borrowing from your "future earnings". And no one in this world can guaranteed their "future earnings". You need "Good Luck" or "May GOD Bless you."

It's quite rare that people who run their own businesses are not interested in investing in stocks. But he wants or aims to list his company in 15 years time. Isn't it shows he still interested in the stock market in a way? Strange?
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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hi music whiz,
He has 2 infants..who would soon need their own space as they grow older, especially they are of the opposite gender. A 500k loan is indeed slightly risky but i guess he's been a responsible dad and want his kids to grow up in a nice environment? (and maybe their parents to move in together as well?) And hey, he's got a financial controller as a wife to help finance it! Smile
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Just a thought, life in S'pore is getting more and more expensive, especially for the past 5 years.
The moment you step out of the house, it all about $$.

From daily basic expenses like transportation, meals, kids education etc to big ticket items like medical bill, housing (Great price leasing from HDB)
looks like this place which used to be called 富地 (blessed land) are getting worse day by day.
Soon, it will be a land for the rich, but not for middle to low incomer.

The more we need to strike it rich/achieve financial freedom if we do not want to be trapped in this situation.

Just my 2 cents
Cheers!
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(18-12-2011, 04:55 PM)weijian Wrote: hi music whiz,
He has 2 infants..who would soon need their own space as they grow older, especially they are of the opposite gender. A 500k loan is indeed slightly risky but i guess he's been a responsible dad and want his kids to grow up in a nice environment? (and maybe their parents to move in together as well?) And hey, he's got a financial controller as a wife to help finance it! Smile

Hi Weijian,

Not disputing the fact that they need a larger space since they have 2 kids. I have one kid myself and am living in a 4-room flat, and I also think assuming I have another kid I'd like more space. But then again a $1 million flat seems very expensive considering they have to borrow $500,000.

Granted, the wife is an FC who may be earning 5-digits stable monthly income, but from my experience those with such a large loan can hardly pay it down as so much of the repayment is for servicing the interest (especially in the initial years, notwithstanding the ultra-low interest rates now).

Perhaps a more prudent (and cheaper) option may be a spacious 5-room flat costing about $550,000 (where they can pay down $300,000 and take up a $250,000 loan), or even a cheaper older condo which costs $700,000 to $800,000 (reducing the loan to $300,000). Sorry but I guess I am from the camp which believes that one should clear off debt as early as possible! Tongue
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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".....We plan to sell it by June next year and upgrade to a $1 million private apartment in the east.

We were preparing to buy early this year but decided to wait for a better time......"

It is good that he decided to wait. Private property market should have some correction by June next year. But I am not sure if a 3 room flat at Bedok can still fetch $300k by then.
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Not sure what the utility of this interview is - it simply seems to show that she is a carefree SPENDER, rather than how she actually made her money. I believe this column should dish out more pertinent personal finance advice rather than I spent $60,000 per month (which is more than what most people earn in a year!) or that "I can just swipe my card when I see something I like". Seems to convey a very lackadaisical attitude to spending and that credit is fine - but these are immensely wealthy people with probably hundreds of millions in assets, thus a $300,000 is a drop in the ocean to them. Confused The one good thing about this interview is, however, her willingness to do CHARITY (which I applaud!).

But for average Singaporeans, I think they would do with more useful advice rather than all this.

Opinions? Huh

The Straits Times
Dec 25, 2011
A golden start to investing

From jewellery to real estate and insurance, this investor's aim is to ensure fast turnaround

By Joyce Teo

Indonesian businesswoman Conny Ngadiman, 42, wants a fast turnaround when it comes to her investments.

She entered the Singapore property market in 2005 and has made some money from her investments.

But she also experienced her worst investment after selling off a property quickly. She considers it a lesson learnt.

Ms Ngadiman is married to Mr Sioe Ronaldi Sundoro, 47. They have three sons.

She is based in Singapore with her sons and set up interior design and renovation firm 02 Heaven this year as it is an area she is interested in.

Q: Are you a spender or saver?

I spend about $60,000 a month. A lot of it goes towards paying the premiums for my insurance policies and the rest is for business expansion and family expenses like groceries.

Q: How much do you charge to your credit cards every month?

I have 10 credit cards, including four from United Overseas Bank and one from Citibank.

I enjoy collecting platinum credit cards and have never been late in paying my bills.

I just swipe my card when I see something I like. Last month, I bought five items, including a pair of Gucci shoes, a Louis Vuitton bag and a Bottega Veneta bag.

But I do not need so many bags or clothes. I will give away the bags to my friends.

Q: What financial planning have you done for yourself?

I invested in properties in Singapore but not any more. I do not want to pay the seller's stamp duty, which is very high.

I like insurance. If I do not put my money in insurance, I will just spend on shopping. I have many policies, which will provide me with a good payout for my retirement years.

I also buy policies for my children. For example, I have one short-term endowment policy for each child's education. They offer coverage of $225,000 to $450,000 and I pay between $2,000 and $4,000 a month in premiums for the policies.

Q: Moneywise, what were your growing-up years like?

I have two older brothers and one younger brother. My parents used to be in the coffee-trading business but are now retired.

We were the only ones in the kampung to have a car.

I like to save money and bought my first gold bar when I was nine years old.

My parents like to buy gold and they would keep it in the house.

Q: How did you get interested in investing?

My first investment was in a jewellery shop in Indonesia. It was made together with my husband.

It gave me my first pot of gold. From there, I started to grow my business empire by branching out into property investments.

Then I went on to set up branches of my jewellery shop.

We have since closed the branches. We decided to do that after we were robbed at gunpoint. Now we have just one jewellery shop in Indonesia, which my husband is running. His family is in the gold-trading and bird's nest-farming business.

Q: What properties do you own?

I co-own several properties with my husband. They are mostly in Indonesia. They include nine townhouses, the upcoming Okuta Loft in Bali and a few pieces of land - of which the biggest plot is 4ha - that are worth about $1 million in total.

My first Singapore property purchase was a unit at Gardenvista in Dunearn Road. I bought it in 2005 for nearly $700,000.

Q: What's the most extravagant thing you have bought?

My black Mercedes-Benz R300, which cost $306,888.

There was a roadshow in Ngee Ann City and the saleswoman said I could buy the car. I thought it was a joke because I have tried many times to buy a car in Singapore but the dealers could not sell one to me because I do not have a driving licence here.

Anyway, I needed to give her only my credit card for the $10,000 deposit, so I thought, why not?

Surprisingly, my application was approved and I was given a year to convert my licence. So I bought it even though I prefer a BMW.

Q: What's your retirement plan?

I plan to embark on a charitable programme to help needy children with the profits from my upcoming hotel project in Bali, Okuta Loft.

Q: Home is now....

A 1,751 sq ft Pearl Bank apartment, which I bought for $1.65 million in July. It is in a convenient location off Outram Road.

Q: I drive....

My black Mercedes-Benz R300.

joyceteo@sph.com.sg

--------------------------------
WORST AND BEST BETS

Q: What's your worst investment to date?


My worst investment was my Tanglin View condominium, which I sold in 2009 at a loss of about $400,000.

I paid $1.5 million for the unit back in 2007-08.

My agent called me when I was in a hospital in Indonesia attending to my son.

I was so busy that I told him if he could get about $850,000 for me without any viewings, he should just sell it. I later realised it was worth $1.2 million.

Q: And your best?

This was another property, Vida in District 9. I sold it this year for a profit of $500,000.

I paid $1.8 million for it in early 2009. Once I stepped into the apartment, I had already made money from it.

My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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Wow... a gold bar is about 65+k sgd in today's terms. To save that amount, I think I need to go to a school like ACS and rob a few classes worth of possessions! No wonder some Indonesians are so wealthy; to begin with, they are simply better savers.
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