Not very sure what his gold bullion company is doing - but how did he trade gold bullion till he's almost a millionaire?
Also, just curious as to why all the successful and up-and-coming people all have to "reward" themselves with a (brand-new) BMW? Just to show that they have made it at the top? It's something I probably cannot understand.
To top it all off, it seems he is planning to upgrade his residence at a time when housing prices are at an all-time high. Surely his executive masionette (a two-storey apartment) is large enough for his family with three kids?
*Please visit the website for the full interview. This is just a snippet.
The Straits Times
www.straitstimes.com
Published on Jul 22, 2012
ME & MY MONEY
Debtor's appetite for risk pays off
Once mired in credit card debt, former policeman turns fortunes around with grit and acumen
By Joyce Teo
Getting his first credit card was the start of a slide into financial disaster that left businessman Simon Goh Chee Kin scratching around trying to rebuild his life.
Mr Goh, 34, who now runs two security companies while also working as a property agent and gold trader, began his descent into his personal fiscal black hole when just 21.
Like many youngsters who suddenly find themselves with a credit card and the promise of all that 'free' money, his spending hit overdrive.
He even applied for four more cards and continued to spend and chalked up debts. Then there was a renovation loan when he got married at 23.
About two years later, Mr Goh, then a policeman, had less than $10 in his wallet and tens of thousand of dollars in debt. No wonder he did not dare appear at his family's reunion dinner.
'I could not face my family and had exhausted the kindness of friends and could not borrow money any more,' he recalls.
'My mum later had to borrow from relatives and friends to help me tide through the tough times.'
But risk is clearly in Mr Goh's blood. He left the police force after 11 years to try his hand at land banking sales as he wanted to 'reach for the sky'.
'Life was difficult. My $2,400 (police) pay was gone the day after I got paid. I wondered how people get to live in condos,' he says.
But the land banking job did not work out so Mr Goh combed the classified ads and landed a security supervisor job at $2,000 a month. He eventually worked his way to a manager's position.
Mr Goh and his wife Sophia Low then sold their HDB flat in Punggol in 2009 - after the five-year minimum occupation period - to clear his $50,000 credit card debt and pay off relatives and friends.
They moved in with her grandmother. They had bought the flat for $196,000 and sold it for $358,000.
Mr Goh left his security job after three years to be a property agent and a gold bullion trader. 'With my limited tertiary education, I would head nowhere unless I could smell opportunities to make it in the business world.'
A diploma holder, he set up Valiant Security Services and Valiant Network around the end of last year.
His wife helps him with his gold bullion trading business. They have two daughters, aged six and eight, and a son, seven months old.
Q: Are you a spender or saver?
I am a spender. Spending will oil the wheels of the economy and bring about greater growth opportunities in all business sectors.
I am a risk-taker and believe that money will beget more money. Where my security business is concerned, I am always willing to spend to build a strong base. I will not cut corners as this will impact the long-term success of my companies and affect their reputation.
To me, an organisation's brand equity is of paramount importance and should not be compromised.
My wife is the saver and controls the purse strings at home. I would also consult with her on major business ventures. She is my Minister of Finance.
Q: How much do you charge to your credit cards every month?
My credit cards were all cancelled except for one. Now, I usually use debit cards and I no longer have any credit card debt.
In a month, I normally chalk up about $3,000.
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Q: What property do you own?
My wife and I own a 1,700 sq ft executive maisonette in Teck Whye Lane. We bought it in 2009 for $385,000 and it is now worth $550,000.
Q: What are the extravagant things you have bought?
Last year, I bought myself a brand new BMW 523i series (Highline model) for $240,000 to reward myself. Each time I get into it, I feel a sense of pride, that I have done well after all those years of hard work. This car also inspires me to work harder and do greater things in life.
When my wife gave birth to a son last December, I surprised her with a $11,000 Rolex watch. It is my way of expressing my gratitude and love to her for standing by me all these years.
Q: What's your retirement plan?
I am still young and will continue to work and grow my business.
Q: Home is now...
The executive maisonette. I am in the midst of looking for a suitable home to upgrade.
Q: I drive...
A black BMW 523i series.
joyceteo@sph.com.sg
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BEST AND WORST BETS
Q: What's your worst investment to date?
In 2009, when I ventured into land banking sales, I invested $30,000 in a plot of land in Canada and lost all of it.
My advice is that one should never invest in anything unfamiliar.
I got taken in by the sleek marketing. The firm had remortgaged the land out to banks and then used the money to buy more land. When it ran into financial crisis, it couldn't develop the land.
I also invested $10,000 in getting a degree, only to realise that it was a scam.
When I signed up, the school here sent me a letter with Australia's RMIT University letterhead.
But I found out later that it did not get RMIT to certify the course here.
I have always wanted to upgrade myself as I do not have a degree.
But I also tell myself that to be successful, you don't need a degree. To have a degree means you have to work for people.
So for me, I employ people with degrees to work for me.
Q: And your best investment to date?
I have since made close to a million from trading in gold bullion.
I started by buying 100g for about $7,000 in late 2009. I was a trader and would use my commissions to buy more.
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