On most days, I am my client’s financial advisor – The one who manages their investment portfolio, advises on their insurance portfolio, plans for their kids’ education, their retirement and the one who assists with their businesses’ risks and crafting of employee benefits.
On some days, though, my clients have been my best teachers – some of them taught how not to follow their own financial footsteps while others taught me some of the most empowering beliefs about money and business. Because our attitude towards money will become our reality.
#1 Money is important, and it has nothing to do with happiness.
I know so many people who would tell me in a blink that happiness is more important than having money. I agree that happiness is important but it is not more important than money because they are not items to be compared and they are not entirely correlated. After all, not all who are rich are happy and not all who are happy are rich. It is probably a lot more complicated.
But trouble boils when people go around with the story of ‘happiness is more important’ and shelf money management away entirely. Because when we do not give attention to money, when we do not treat it seriously, we will never achieve a satisfying situation with it.
So perhaps the simpler way is to really view money & happiness independently. We can all choose to be happy but we should also accept the importance of money. Because when we only start planning when money becomes important, it is usually far too late.
#2 It all happens for a reason, and it has got nothing to do with luck
Horrible boss, no job prospect, no time, no independence, no guidance, no money. One of my clients was in that exact (horrible) situation but he created his own opportunity and luck. Back then, the company he was working for had no intention of developing his area of business – but he continued to network and build ties in China. 2 years in, once he was ready, he came back to Singapore and started his own business – thriving and well, with a partnership with his previous firm.
At the end of the day, it all happens for a reason and it has got nothing to do with luck. Personal and financial success is a result of determination and self-awareness.
#3 The rich get richer, the poor can get richer too
What most of us are more familiar with is that ‘the rich get richer and the poor get poorer’. On one hand, I fully understand how that came about. On the other hand, I know it does not have to be this way.
Having the belief that ‘the rich get richer and the poor get poorer’ is pretty disempowering – it results in inaction because one may start believing that limited ‘resources’ limits one’s opportunities. People who are in sticky financial situations may not do anything about their situation because they do not believe that things will change. Or they may always be doing the same thing because of the the fear of change/loss (greater loss aversion).
But drawing reference to #2, resources go beyond external factors. Sometimes, you have to create your own resources and luck. Sometimes, you have to take a risk, change a job, change your mindset – The rich get richer but the poor can get richer too. Richer, relative to a previous situation.
Because sometimes, it’s all about baby steps
CFP, representing Financial Alliance 