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Good article about being rich rather than appearing rich.

But does this apply to Singapore as well? I think those who are driving Mercs and BMWs truly ARE rich!

http://www.investmentu.com/2013/January/...-rich.html

Happy Reading!

So true... "If you want to be rich, you have to stop acting rich… and start living like a real millionaire."

i am in my thirties. no inherited monies. i have 2 condos purchased 10years ago, a healthy sum in the bank and a seven figure investment portfolio. i drive a 8 year plus lexus fully paid.
some of my clothes are picked from people who throw them away. i use a happy feet penguin wallet which comes from buying colgate foc. i use a solar powered casio watch bought from cash converter. i cut my hair $3.50 at bedok block 85.
my staff buys vegetable rice costing $2.30 everyday for me.
my only big expenditure is a >100 year old car plate S_ _ which i spent a six figure to acquire 6years ago which led to a big fight between my wife and I.

i just live simply though i can afford more than what i use now.

just sharing.

(25-01-2013, 02:54 PM)paullow Wrote: [ -> ]i am in my thirties. no inherited monies. i have 2 condos purchased 10years ago, a healthy sum in the bank and a seven figure investment portfolio. i drive a 8 year plus lexus fully paid.
some of my clothes are picked from people who throw them away. i use a happy feet penguin wallet which comes from buying colgate foc. i use a solar powered casio watch bought from cash converter. i cut my hair $3.50 at bedok block 85.
my staff buys vegetable rice costing $2.30 everyday for me.
my only big expenditure is a >100 year old car plate S_ _ which i spent a six figure to acquire 6years ago which led to a big fight between my wife and I.

i just live simply though i can afford more than what i use now.

just sharing.

hi there, you are my idol, you achieved so much without inherited money. Do you run your own business and was very successful when you were in your twenties? To purchase 2 condos 10 years ago is very very impressive

(25-01-2013, 02:37 PM)FFNow Wrote: [ -> ]So true... "If you want to be rich, you have to stop acting rich… and start living like a real millionaire."

Concepts are similar to this book called Millionaire mind. Loved it.

Some personal observations. The picture is really quite nuanced in SG. There are many kinds of rich. And i think nowadays in SG, to reach the lower rungs of rich has to be at least 3M SGD in net worth excluding current home. 1M just not enough. My guess is at least 60K give or take 10K such people.

The description of the frugal, camry driving, minimal branded goods etc millionaire is usually because they got rich through savings, working smart and hard and investing in appreciating assets. Usually hit 1M networth mid/late 40s. So their spending patterns fixed already and will not change even if they get richer in late 40s or 50s. This is very true and i experience it myself in terms of fixed spendign patterns.

Another group are the flashy rich. They either got rich young due to business or hot shot career in banking, sales, govt or some are 2nd/3rd generation? Drive sports car/BMWs, branded goods, business class travel etc.

Interesting things is that both groups could have same net worth but differ very much in flashiness. I would say in SG, if you achieved 3M networth and are <35... probably will be the flashy millionaire. If in 40s or 50s (like those i just saw at a PB outlook dinner recently), then will be the frugal millionaire type.

Another obvious factor is net worth. I think if one is above average rich (read at least 20M networth), then even being flashy does not affect the numbers much. If your passive income exceeds 1M safely, seriously driving a sports car, having a merc, spending $120K a year on travel and food, $50-80K on bags, does not really dent the pocket. Whats more if the household has active income on top of that 1+M.

So i would say, for SG (and that probably is higher than most of the world except tokyo, nyc and zurich)..

1-2M net worth - Upper middle class
3-5M net worth - Rich but be careful on how you spend which is the majority situation.
5-20M - Average rich but got more and more leeway in flashiness
20M and 100M - Above Avg rich ... can be flashy without much hurt unless you lust after private jets and sports teams
>100M - only know a few such people. Actually daily life is like the tier below but you hear snippets like art collections worth 5M, private jet holidays etc......

yes. own biz. with some good luck of coz.

(25-01-2013, 03:20 PM)paullow Wrote: [ -> ]yes. own biz. with some good luck of coz.

Admire your courage in starting your own business and taking on business risk. You have reaped the rewards of that now.

For me, being a salaried employee means I am still climbing towards that million $ dream. (Not quite there yet! Haha)

(25-01-2013, 02:54 PM)paullow Wrote: [ -> ]i am in my thirties. no inherited monies. i have 2 condos purchased 10years ago, a healthy sum in the bank and a seven figure investment portfolio. i drive a 8 year plus lexus fully paid.
some of my clothes are picked from people who throw them away. i use a happy feet penguin wallet which comes from buying colgate foc. i use a solar powered casio watch bought from cash converter. i cut my hair $3.50 at bedok block 85.
my staff buys vegetable rice costing $2.30 everyday for me.
my only big expenditure is a >100 year old car plate S_ _ which i spent a six figure to acquire 6years ago which led to a big fight between my wife and I.

i just live simply though i can afford more than what i use now.

just sharing.

Hi Paul, u are more frugal than me!

I try to live frugal and way below my means not because i want to deprive myself but because i find some things just too wasteful. And interestingly it is selective. So for example, i am ok with bus class travel but not for my kids and not for <3 hour flights. I am ok to spend $300 on a meal , but spend only $10 haircut. I wear $10 t-shirts but am cool with 5 digit watches..... so its like some things i see the value, others i just cannot.

Paul, Did you reach your wealth through gradual appreciation and dividends from business? And are you mid/late 30s?

Another factor i realize is how the wealth was acquired. If via sale of business or some windfall type... then the tendency to up spending is higher. if via slow accumulation... then the spending patterns totally do not change.

(25-01-2013, 03:28 PM)greypiggi Wrote: [ -> ]Another factor i realize is how the wealth was acquired. If via sale of business or some windfall type... then the tendency to up spending is higher. if via slow accumulation... then the spending patterns totally do not change.

I don't fully agree, I think it is a characteristic of one's upbringing and character too. If you are prudent but somehow chanced upon a windfall, you would continue to be prudent in allocating capital. If you have a gambling/showy streak, then even "slow accumulation" through higher salary/bonus may see you spending more than you earn consistently.

(25-01-2013, 03:28 PM)greypiggi Wrote: [ -> ]

(25-01-2013, 02:54 PM)paullow Wrote: [ -> ]i am in my thirties. no inherited monies. i have 2 condos purchased 10years ago, a healthy sum in the bank and a seven figure investment portfolio. i drive a 8 year plus lexus fully paid.
some of my clothes are picked from people who throw them away. i use a happy feet penguin wallet which comes from buying colgate foc. i use a solar powered casio watch bought from cash converter. i cut my hair $3.50 at bedok block 85.
my staff buys vegetable rice costing $2.30 everyday for me.
my only big expenditure is a >100 year old car plate S_ _ which i spent a six figure to acquire 6years ago which led to a big fight between my wife and I.

i just live simply though i can afford more than what i use now.

just sharing.

Hi Paul, u are more frugal than me!

I try to live frugal and way below my means not because i want to deprive myself but because i find some things just too wasteful. And interestingly it is selective. So for example, i am ok with bus class travel but not for my kids and not for <3 hour flights. I am ok to spend $300 on a meal , but spend only $10 haircut. I wear $10 t-shirts but am cool with 5 digit watches..... so its like some things i see the value, others i just cannot.

Paul, Did you reach your wealth through gradual appreciation and dividends from business? And are you mid/late 30s?

Another factor i realize is how the wealth was acquired. If via sale of business or some windfall type... then the tendency to up spending is higher. if via slow accumulation... then the spending patterns totally do not change.

Yes, somewhere mid thirties....

My accumulation was through building up my biz first, then rapidly channel funds in a few thoroughly undervalued stocks to build passive income.

(i hope my wife will not read this)

once i felt that i know how to create money from money and i am very unlikely to exhaust my money, i gave my wife a credit card and ask her to buy what she likes.

somehow i dun see her buying LV, PRADA etc. think she's as frugal as i am.