During the last couple of days, I visited the house of one my very wealthy clients. He bought a waterfront bungalow at Sentosa Cove and invited me and my family over for a house warming/ Chinese New Year get-to together. I must say that the bungalows there are really beautiful and amazing but I think its crazy to pay $1,300 per square foot for a 99-year leasehold property. My friend purchased a 12,000 square foot house (with a berth and yaucht attached) for a cool $14 million +. This friend of mine makes his millions as the head of investment for a financial MNC powerhouse. He makes hundreds of millions of dollars for his company, so I guess paying him a $5m annual bonus is no big deal to them.
What I found even more amazing was that there were four luxurious cars in the driveway. He drove a black Lamborghini and bought his five a BMW 7-series. When I asked what the other two cars were for, he said that he bought his 21-year old son (studying engineering in NUS) a Mercedes Benz S-Class and his 19-year old daughter (studying in a local poly) a BMW 5-series. After chatting with him for a while, I found out that his two kids carried thousand dollar handphones and would not be caught dead eating at hawker centres. At first, I thought that his kids were damn lucky to be born in such a rich family and to have such a generous father.
However, after chatting with my wife on the way back and thinking about it for a while, it dawned on me that the two kids were in fact damn sway (colloquial term for ‘unlucky’) as their dad had just set them up for a life of debt and misery. First of all, it costs about $3,500+ a month to maintain those cars (petrol + insurance + roadtax + install) and each time you send it in for repairs, the bill will easily come to $3000-$4000. Because of the lifestyle they are used to, they will only feel comfortable spending $30+ on a meal at a restaurant.
Now, the dad does not own his own business. He just happens to work for an MNC, so he certainly cannot pass his job and his huge income to his two kids. And he certainly is not going to give them an allowance after they graduate, find a job and get married. At the rate the father is spending his money, his dough won’t last very long past his retirement.
So, his kids will have to graduate and find a job like anyone else. When they get a first job, how much can they get paid? Even if he has an honors degree from NUS, the most he can hope to get is $2,500/month. With a diploma, his sis can probably only get a job for $1,800. Once they drive that BM or that S-Class, do you think they will ever drive a Toyota? Unlikely. So they will probably use up their entire salary just to pay to maintain their cars (which is a liability by the way) and run up their credit cards to the max just to finance their restaurant meals, handphone meals and Prada/ Hugo Boss fashion wear. Before they reach 25, my prediction is that they will probably be heavily in debt and untterly misrable. So on second thoughts, I think they are really unlucky… What do you think?
Adam,
Yeah very unlucky indeed… Unless they
realize that soon, not even God can cave them..
If I had friends like these two kids I’d surely
try to talk to them and make them realize
this fact.
I know it’s not easy but I’m doing it anyway.
It’s sad to see people plunge into the Grand
Canyon like that. Knowing the hardship and
difficulties they would face in future makes
me feel uneasy.
Anyway, good luck to them in their future
undertakings. Adam, why don’t you persuade
them to join your programs.
But their parents might get offended ho?
As if they’re not successful enough hehe….
Bye for now…. Have a nice day!
Cheers,
SaM
I strongly agree with you Adam. If my dad was that rich, I wouldn’t want him to buy me these luxurious stuffs to make me “poor”. Since their dad is so rich, I think he should invest some money for them to live in any poor country to change their perspectives towards life. They’re so used to the lifestyle in the palace when they may be unaware of how the commoners are living out there.
Adam, you said it right. I have seen friends and relatives whom father passed hundreds thousand to them when they are in their 20s.. they lived in private houses and have nice car etc.. But now at their 40s, they found themselves difficult to survive on their own. Their fathers, who are now retired, did not pass to them a business that they can build on.
Especially those whose parents made their money from MNCs they worked for. They definitely can not pass their earning capability to their children because the company is not theirs.
For this reason, I’m building my Internet Marketing business part-time while I hold my day job as a senior executive in a MNC. I’m earning quite a lot too. But I told my 11 and 10 year old kids that ‘daddy is holding the job to pay for the family’s bills and working hard at night to build a business that I can pass to you’. Day job is to pay my bills, night time part-time job is to Build My Dream. And my dream is a business for my family. I wrote article regarding part-time entrepreneurship – http://www.entrepreneur2b.com.
I guess no one has the right to really judge them… unless u are successful enough to!!
lots of my friends has always say things like : look at that person driving a bmw must be a gift from his dad.. so what?? and my friend will always reply: i will never want my dad to spend on me like this … but when he receive his ang boa during the CNY he complains his dad gave him a small A.B so what does it means … same goes to those giving A.B i guess u and your spouse will say things like :ayia no need to boa so big lah .. u mean people like (“this”) can judge them??
If others can afford whatever they are having now and is living happily, that is the best for them. Whatever will happen in the future, who knows?
Who can gurantee that if you save / earn a lot of $$$ now, you will sure get to spend it or find it enough to spend for the future?
Everyone has a different starting point in life, somewhere, somehow and who knows their kids might already started in investing their savings with their father’s guidance on investment. With the profits made, the kids might not even need to find a job to earn a living in the first place.
Dear Adam,
Perhaps your super rich client is merely flaunting his wealth on the surface level. With his earning capacity, he might very well have millions of dollars stashed away elsewhere which he would tell anybody.
Being in the business of growing wealth myself, I understand the importance of constant saving and wealth growth through compounded interest, and though I agree that his children enjoy their privileged lifestyle through good fortune rather than hard work, it is too much of a stretch to label them as unlucky because of that.
After all, they did not choose to be born into wealth, and even then, we cannot go as far as to think that all their future successes are only because they were born with money.
I think it’s hard to generalize.
They would be unlucky if their dad never taught them how to make and grow their money.
However, they would be considered lucky if their dad teach them how he make his money and they, inturn, make their own money like their dad. In addition, if their dad leave behind his fortune or start his own money making business, then that would be another story.
From the look of it, I would think that their dad’s fortune would be ten times what he had spent on his bungalow or cars. However, if that is not true, what you predict may just come true!
Oh my …. I enjoy this article a lot. 🙂
What can I say … there’s always 2 sides of every story .. the good the bad. The happy the sad. And this one too … but to me material wealth doesn’t mean anything unless it’s rooted on self wealth.
Are they lucky or unlucky … guess during the tough times, we will really know the answer to that question.
OK, there are several ways to look at this, you could earn a fortune and be frugal and hardly spend anyhting and then save loads of money, but for what… you have to enjoy the wealth to some extent or it is pointless having it, I had a friend who saved all his live, hardly spent a thing, never even bought a dvd player because all good films will be on TV eventually (he really was that tight) when he retired he was a wealthy person, but he has become that used to saving and not enjoyuing his money that even in his retiremtn he wouldnt spend his savings becasuse he didnt know how long he had to live and so didnt know how long his money had to last him, becasue of his frugal ways he had never married or had kids, all his girlfriends left him because of his manic saving, when he died he had no one to leave the money to and he left over $1,000,000 to the governemnt…. yes he saved more than he spent as you seem to suggest but he was never happy and never got to enjoy spending any of it. Your friend may have done his kids a favour, maybe because they are so used to their luxury lifestyle they weill realise that they have to either get high paying jobs or run their own business, it may give them the drive and ambition to make somehting of their lives.
I came from a very average working class background but my father went without in order to send me to private schools, here I mixed with kids of very rich families and the main thing this taught me was ambition, I now live in a nice house and enjoy life, does this make me wrong???? my daughter will hopefully grow up and never even think about living in a small 2 bedroom flat because it is not in her mindset, other kids from poor familes who never spend money will grow up and never expect more than a small 2 bedroom flat because that is all they have ever known…
Hope you see my point, your friend could live in a modest house and drive a modest car, but if that were the case, would he have had the drive and ambition to be in the job he is know, would his kids be going to Uni or would they now be doing some mundane job becasue they think that is the norm.
Luck .. maybe
Rich ? HELL YEAH!!
What i think is that,no matter how much money.You gotta put or insert some hunger.exe on to your kids..Cuz.. i think that without this hunger.exe running through anyone’s mind.. no one gonna stand up and fighting to have money.exe running 24/7.If it were me.. if i had such a car.. and $$ . I would be even more intrested to have more money because i am always damn ambitious..Maybe due to my past..And i would probly live my life as normal and at the same time , find ways to substain AND improve my life..For me i think men aint suppose to be happy with that they have.They should aim for more.That’s how improvement came in i guess.And no matter if their rich or poor.If no Hunger.exe is insert.. they still stay poor . I seen rich become poor(they think their parent will support them) . And poor become more poor (they think govt will support them).So what’s the difference? The only thing is the process in your brainware.It’s the same thing , just different words.
I think they’re lucky………, at least they have tasted the luxury once in their life. I believe that the the father has fully paid the cars.. and if not…, i guess the father has enough money to be inherited to their children.
I dunt mind to be in that position 🙂 hehehe
Nowdays there are many rich family who are wise and clever enough to earn for their living.
Regards,
Han
Hi Adam..
No doubt becoming rich is the dream of almost every human being. But, I think there will come a time when the rich don’t feel any value for the money anymore. They have got everything that they want. To them perhaps, money is just another item to waste to feed their greed, ego or those other negative terms that English dictionary told us.
However, those that able to wake up from their so call ‘richness shock’ start creating foundation and help those that in need. They feel satisfy for making other feel good from the money that they spent to help them with their need. I think this is naturally come from every human beings.
Anyway, I am not rich yet. So, don’t really know what the rich people think and how they plan their money to spend. Maybe, you can help me to promote my website and invite those that want to buy offshore investment e-book product to visit my website –> http://www.onlineinvest.biz and thanks.
I agree with Kleer in some sense. The kids did not choose to be born into wealth. They will have to have the sense of how they can live in such luxury and not live by blindly, meaning know the value of money.
Me and my 2 brothers used to live in “good life” not as wealthy as these people but considerably good, where I will drive my dad merz to poly and to work after graduated from Poly, holding a Engineering Assistant job. My brother is only 2 years my junior(the other is 10yrs my junior so no impact, let’s not talk about him).
My dad business somehow did not work out and he has to live in debts(from business and squandering by the bro) but I do not take things for granted, I know the value of money compared to my bro. He will spent the life he used to spent with his pathetic salary.
Now that all of us are in the work force, I had a career switch after working 10yrs in MNC. I now helped people to planned their financial well being, knowing the importance of financial security.
To conclude, what the family brings us or provide us is our luck to be born into such family but we individual has to know the VALUE OF MONEY.
Perhaps you have to pass on your own book or the book by Robert Kiyosaki to his son and daughter teaching about financial intelligence before it is too late.
I have many friends from middle class families who cannot sustain the wealthy living once their parents retired because of the failure of passing the income sources to the second generation.
From this aspect, running a business of your own and is able to pass it on to your descendents seem to be another advantage to own your business!!!
Good luck to your friend.
Damen
Hi Adam,
I met something similar with this case too.I got one brother-in-law,who is also working as a senior executive in a MNC. Who is so wealthy that he can just bring all the nieces and nephews to bowling and karaoke and spent $2000+ w/o feeling any pain.His children are living at a very high standard lifestyle too.They do not use things with no BRAND.
2days ago,when I was talking with one of my niece ( 10 yrs old ),regding the pricing of her pair of jeans? She told me she bought it at $ 39.90 and her sis ( 12 yrs old ) is $ 49.90, I told her that is expensive. What she answered,really give me a shock! She told me that my bro-in-law bought her daughter’s ( 7 yrs old ) a small handbag for chinese new year already costs more than $90+. So how can her jeans consider expensive? But problem is her father is just a taxi-driver. She always tell me how she wish to be born in rich family,like my bro-in-law 🙁 I told her never compare her living standard with others,unless her father can earn the same amount. I do not know whether am I doing the RIGHT thing by telling her this too 🙁
Although my bro-in-law always used to buy BRANDED products for all the nieces and nephews,but I do not think is an healthy way to do so. Now all children refuse the things that their parents buy for them. We are all low income families, how can we afford to buy BRANDED products?
Do I think they are lucky?
I honestly can’t tell.
I agree that they may get a difficult time adhusting to the “real world”, but at the same time, their father is showing them that making money is possible. He is in a position where he can offer them strong guidance that will encourage them to success.
The story tells too little to judge whether or not they are unlucky. And the future is unknown, so no one can really tell how it will end.
Love, care, and respect has more to do with the outcome than money. If he and his wife are always on the road on business trips and have hardly any time for their children, the children will probably more likely learn to rely more on money for happiness, and that will ruin them.
If the parents are loving and caring and supportive of their children, the children will have a good chance of succeeding knowing that money isn’t all there is. They will automatically strive for success themselves if supported to become successful. And dad’s wealth shows them that it’s doable and that they can have and do it too.
Money alone does not determine a child’s success in the future.
Is very unlucky for the kids as they can’t survive on their own once their financial gets cut off one day. Is not they are unlucky, there are many more whose parent pamper their kids with expensive gadgets and big allowance.
Dear Sir, You are perfectly correct in your assessment of their impending plight.
They may end up in poverty, going by their present lifestyle. They may however learn late and still adjust, but at a price.
No parents would want to bring harm to their children. Some times they just did not realize what they did are harmful in the long run.
Therefore, Adam if I am you, I will find the opportunity to talk to the father, to let him understand the consequences behind.
I understand that he is your client, and in doing so might hurt your income, but I believed if you can save the future of 2 bright young kids, and perhaps prevent a family suffering after the father retired, isn’t it worth all the risk in the world?
Cheers!
Albert Lee
Well… to me i think that they r very lucky… They get to experience the feeling that other kids can hardly ever have. For the fact that u said its dangerous for their future bcoz they would not be able to pay for their cars’s maintenance fees and everything. I would like to say that its actually not a big problem… The reason is bcoz as u mentioned earlier that their dad is so damn rich. Hence, its obviously is so stupid to let his own kids graduate n work for others with a pathetic salary. As their dad is so rich and smart. I believe that their father would actually save a certain amount of money for their kids to run a business or do some investments in the future… Therefore, their dad will only have to teach them a few lessons in investments… It won’t be so hard as their dad have a huge sum of capital… Starting a business in the future for them will not be a big problem. In that sense, they will be able to earn more money as well in the future to pay for all their luxurious goods… No one knows if his kids can actually maximise the capital and earn more money than their dad as u know business and investments are different from a constantly salary jobs…
Hi Adam,
I am neutral on whether the children are lucky or not. Only time can tell. Results will speak for themselves and people around will pass judgement or views. As parents, it is important to instil the right values of money to our children. Whether we are living in high luxury or average, we must learn to live comfortably at any particular social level. Money is only a means to something material for comfortable living at an expected standard of living that each of us wants. And this expectation is different for everyone. Being prudence in spending and not overly stingy is the right mix and balance.
Cheers!
Henry
i guess when you a making miliions of money,you will surely have desire to spend,and of course for the benefit of your family,like buying them cars to help them to school.but how they lucky in the future depends on each individual itself.If they are winners like Mr Adam Khoo,then i’m sure they can continue their luxurious lifestyle.If thay unlucky then they will find everything difficult later on.
Dear Adam,
We can never truly know if they are lucky until time passes. However, I do feel that their father is really stretching their personal income a bit. Well, if he has enough cash then good for them.
PS-On a side note, I realised that my Internet Business is hitting 2 digits figure this month! I set this goal only like 4 months ago! Now I am aiming to hit 3 digits profit monthly ! Thank you very much!
Hallo Adam,
From my point of view, I think the two children are definitely lucky to be in a wealthy family. Generally, rich people know their sum. Hence, with regards to this wealthy family, the head of the family, wealthy Dad, is first an investment head of a financial MNC company. This very big clue already tells us that this Dad clearly knows his sum. So I would not worry about his children in the future and I dare to say that his children are already set for life to be financially independent from their loving dad.
Adam,
I agree wholeheartedly. Rich Dad has passed on his affluent lifestyle without teaching his offspring how to maintain that lifestyle. If they are not just spoiled and self indulgent, they may be able to learn how to acquire and maintain the lifestyle through their own efforts that they have come to know. If they had never tasted this kind of luxury, they may have never believed that it was possible.This may give them more incentive to search for a way to create that lifestyle again. Or…they will have to learn to live at an adjusted income and have only memories of what they have experienced and be discontented with their lot in life. Just because a person is “poor” doesn’t mean that they will aspire to a luxurious lifestyle or be able to acquire it. That is up to the individual, their talents, drive to succeed and their own enterprise.
Hi guys,
I’m not Singaporean. I’m from Vietnam, so you won’t be surprised to know I was born in a poor (or very poor) family. When my mother fed me with her milk, she got only plain rice to eat with salt. When I was a kid I always had to buy plain meal without meat so I could get it at cheapest price. Otherwise, I won’t have 2 meals at school.
Actually, I don’t care the kids Adam mentioned are lucky or not. I only feel that I and my younger brother were lucky. Being children of poor family, God (or the situation) gave us the gift of gratitude. We always treasure and gratify whatever we have. What we experienced can be seen as the worst for many Singaporean, so no matter how bad situation we’re in, we’re still positive. I wonder whether the kids Adam mentioned above have the courage to continue to their lives if they suddenly loose everything and don’t even have 3 proper meals per day. I can’t tell for them, but for my bro and me, not a problem.
Totally opposite of us is our younger sister; she is 10-year younger than me. When she became a teen, my family started to do well. Her pocket money everyday was more than enough for me to spend in one week if I was at her age. She had everything she wants. She’s also good/caring sis, a good daughter and an excellent student. Everything seems so right for her. However, she always lives a miserable life (she creates it herself). She keeps a blog but I hardly dare to read because the moment I read it I feel down immediately. I set my goal to master NLP and will find a proper way to help her.
Finally, I don’t agree with anyone who thinks that poor kids will grow up accept a 2-room flat. The truth is 70% wealthy people today were rooted from poor family. I grew up in a super-small flat (1 kitchen, 1 living room, 1 bedroom) where five of us stay happily together. However, I have a dream that none of my wealthy friends dare to dream. That’s to build a hundreds of million business empire in the righteous way so that no one will never ever dare to look down on me. Please be sure that I’m not just dreaming, I’m working on it everyday. Every single day I work, I’m coming closer and closer to it.
Regards,
Kenny
I agree that money alone will not determine a child’s success.
The family is bringing in a $5,000,000 bonus a year, and I would hope that the father is putting a good chunk away in investments, as he is in an investment firm. It sounds as if the children have some aspirations, as they are in higher learning. Whether they need high paying jobs or not is going to depend on whether the family money is going to be available to them. $1,000,000 invested and paying out 25% a year may be a decent sum to live on. The father may have his money in investments that are supplying him with the income to pay for the material goods purchased. Ideally, that is the way to pay for your expenses. Not from your job, but from your investments, money earning money. Then you could retire and never worry about finances. Buy assets which will produce an income for you. You do not need to be GREEDY to be rich/wealthy. Those that have that attitude, will fail at being successful and wealthy. If you think rich people are greedy, you have the wrong mindset. Life is about accomplishing, so that you are not bored. Too many people have had riches, and have turned to drugs to feel good, if only temporarily. John Belushi is a prime example of a hugely successful comedian, but never found true happiness in life. So, money is not everything. How a child is raised has an enormous impact on how they will grow and their views on money. Spoiled children will be unhappy, unless they think for themselves.
Hi Adam,
Lucky or unlucky.. I guess it’s still too early too tell.. Cos it all depends on what other plans their father has for himself and for his family..
Nonetheless, I guess being born in an extremely wealthy family may not be as fantastic as it seems.
Cos many ppl who are born in wealthy families simply lose their drive and hunger as they are used to being spoon fed all their lives.
Nonetheless, alot depends on the individual himself as I have rich friends who are extremely driven as well.
As for myself, I’m thankful that my family is not well to do and I have to support myself through University. Cos it’s bcos of it that force me to be constantly on the lookout for sources of income although I’m still a student.
And bcos of that, I chanced upon Secrets of Self Made Millionaires and went on to start my own online business. All of which would not have happened if I wasn’t forced to do so due to circumstances.
I thank God for all that he has provided for me, and I’m optimistic of the future.
Regards,
Calvin
The kids have no idea how the world works. Daddy is doing them a huge injustice by NOT teaching them how to make their own money. It doesn’t matter if the kids use their own money to buy cars, clothes or whatever. By not teaching your children the value of a making a dollar for yourself, Daddy is setting himself up for continued payments and allowances to kids for years to come. The kids have this figured out, and will not stop after they graduate. Next it will be bigger cars and their first homes. If you take the kids money away they wouldn’t have any skills in order to build it back. They will ALWAYS NEED Daddy’s money. Adam, you need to slap this guy on the head to let him know what he’s actually doing to his kids.
I think they are lucky to be rich. His father has all the means to make his children learn to fish. But his father need to inspire them more. His father can give them the network they need, the skill of investing and this will let his children to maintain or surpass his father wealth.
That how I felt although I never been so rich. Just humbly investing my technician pay check since my first day at work. Currently holding at 330K. My target is to hit a million before 45 latest.
I am hungry and did not have much pride since the day I receive my paycheck. I want my pride and time back after 45. Slow mover compare to Adam Khoo. I invest in Good Books like(Secret of self made Millionaire) and many stocks and investment book. I never belief in photostating good book as I want my daugther to take interest in the book I read.
Hi Adam,
Well, I would say that the two kids are indeed lucky to be born in a pretty wealthy family. If I were the father, I would not shower them with such an extreme luxuries. Kids are easily spoiled, right?! I would only let them spend on necessary items, spare or save those $$$ on raining days. I’d rather let them know or teach them that money is not easily to earn. But, I don’t mind spoiling them once awhile if I feel want to, but not to frequent. So, that by then, they’ll be able to stand on their own.
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Dear Mentor Adam
I absolutely agree with your matured views.There is an old saying which goes like this ” If you dont value the importance of hard earned money then in the long run it wont value you.I appreciate the love of the parents towards their kids by providing them with all the luxuries but the parents are not realizing that they are unconciously spoiling them and making them lazy because the kids directly go into a complacent mode because they know that they have 24 hours ATM backing behind them to provide them with whatever they want,so now the kids start taking life too easy and i would blame the parents for that.In my view the right way would be to dicipline the kids right from young age so that they earn their own living and become independent and stand on their own legs,but at the same time the parents should give them the feeling of full moral support,that they are always there to back them up in times of turbulance.If the parents have this strategy then the kids would come out with fliying colours in life because they now know the true value of hard work and money and would become more confident and successful and buy their own Mercedes and BMW s and in turn pass on this value of hard work and dicipline and produce more millionaires like ADAM KHOO, the right way and Nothing in this world would do more pride and happiness to the parents but to watch their kids showing up on the front page of the Rich and Famous and that does not happen if parents make thier kids Lazy and complacent in their early stages of life.Do you agree with me mentor. In fact on the TV show in north america The Big Idea by Donny on CNBC,the grand parents of the second richest man in the world,the great Mr Warren Buffet were invited to reveal to the world that they dont enjoy any share in the Will and inheritance of thier Grand father,exept the full expenses to cover the full tution fees and all related expenses needed for them to graduate from any university they wish to and at that interview the Grand parents showed no hard feelings towards thier grand father the great but infact were happy
with no regrets towards thier grand father.This is how Warren Buffets are created and here Mr Warren Buffet sets an example to the whole world on how the kids should be brought up so that they know the real value of life.Warren Buffet is the greatest example to the mankind in terms of following Ethics and principles.All parents should learn from the great man and stop making thier kids lazy by providing them with all luxuries before they start budding.The reason why the western world produces more billionaires is because of work ethics,values and principles and earning wealth the hard way and becoming independent in early stages of life.I am basically from asia ( india ) but i have myself learnt a lot from north america and truly respect thier culture.If anybody disagree to my views they are welcome to contradict
Cheers!
Jumaani [ Found Real Success just by following SSMM ]
Adam, this is what EVERY parent and kid in the USA needs to hear! We are turning our kids into spoiled rich brats as witnessed by Paris and Nicky Hilton, Brittany Spears, Lindsey Lohan, etc. Are these the role models we want our kids to chose? Hell no! If I had kids I would have them study YOU and your success!
I echo some of views posted above.
Given the type of lifestyle you decribed your client, it is definitely in the top 10% of income earners. With that kind of money, it is difficult not to spend it. Afterall, if the father work for an investement bank, he probably have most of his weath invested while spent only the minimal. The minimal is already beyond majority of us – luxury; lifetsyle etc.
It is shallow to pass judgement about the family and the kids with a simple article. For all we know, the father might be teaching his kids to “see the world” differently and “immerse” in high profile network – not many ppl have such opportunities.
Hi Adam and fans of Adam Khoo
Yes, those two kids which you mention may be consider lucky to a lot of unlucky people out there as being have the blessing of able to born into a silver spoon family.
I think that given the kind of resource and ability of what a father can provide for the kid is not wrong nor deseireable. Howerver i hope by taping into your relation with him, you need to do your friend a big favour by passing the following message to him to make light on a certain life issue.
Upbringing,enviroment, guideiance and experience will all serve as a pivotal belief to attune them to attach a certain meaning in their given reality.This may inostensibly creating a false sense of thinking that life will the way it is and it will also will be like this in many more years to come . And the most scary part is the ignorance that has embed in them on not knowing how it come about.
All those kind of enjoyiment of luxury material thing and opulent lifestyles is not what those kid attain it by themselves. They had to realise that it is achieve by a third party ( Which is their father) whereby the fate of him to able to churn out those lifestlye for them in a consistent manner is out of their control.
Those young kid really need to realise that they should appreciate and feel grateful ford what their father could provide for them. Learn to be more empatthy with their peers whoim are less well off and start to share on what they could. At he same time, they also must learn the impotance concept of control your mind and design your life destiny . and not be overly rely on their father.
Bernard Gan
Look at this response! You have hit on one of the social problems of our time! Tracy summed it up well when she said the kids wear no “brand” clothes. I KNOW those kids are in trouble and they are not alone. People are getting into debt to participate in this facade, and the whole world seems to wish for our look…..environmentally, North America is a disaster (and pig) and this self centered ignorance is basically at the root of that problem….
I quite agree with you 100% that these two children are indeed unlucky. But since their father is your friend, why don’t you talk some sense into him. who knows, you might be able to make a difference in their lives.
Titilayo Ajumobi.
As a father of 4 daughters, i`m glad that i battled to support
my family because they grew up with wisdom and a good philosophy
on life. They are now all fairly comfortable and doing great things
voluntary with childrens programs which costs they cover out of their
own pocket. My youngest , still at school seems to be followng their
lead. Me, i`m so chuffed with my life and my kids are just great.
Dear Adam,
This is very interesting. Do you know how much wealth they have? If they have 20 years of wealth (based on current expenses), I think it is OK to spend like what he does. After all, money is for us to spend. Who knows, he might have been teaching his children how to manage wealth and the children might be really independent? I prefer not to prejudge him at this point. But, I certainly say that they are lucky.
They are exactly the kinds of kids discussed in the Book “The Millionaire Next Door.” Referring to high incomers’ kids who have not learned to be good money managers, because they’ve not had to. The book is for the most part about the invisible millionaire, whose net worth is in assets, not liabilities. Assets by the “Rich Dad” definition, which bring in a net positive cash flow. High incomers often spend their poptential wealth away on depreciating items (liabilities such as cars, expensive homes, vacations, etc. which generate a negative cash flow or do not increase their net cashflow). The invisible millionaire is precisely invisible for that reason – buying businesses and property and spending their money on investments. Many high incomers who are not in business for themselves tend to spend and bleed their money at a tremendous rate on toys and flashy stuff, which don’t help in accumulating wealth. And many of their kids get used to that lifestyle and are not prepared to succeed for themselves.
Anyway, those kids are lucky if they learn about money management, which may be unlikely in their case. You know the saying – luck is where *preparedness* meets opportunity.
I totally agree with your view. Teaching the children to live such a lifestyle is not a show of love. On the contrary, your friend is destroying his children’s lives.
I cannot say I am successful yet, but I am moving towards the direction that I want myself to go. I am plotting the life maps and explaining to my son why I am taking path that I choose.
I would like to complete one of your sentence if you don’t mind (too bad – I am doing it now even if you mind). Your friend can never pass the high pay job to his children – that I agree. But even if your friend’s source of wealth is from a business that he owns and can pass on to his children, it is carzy that he is teaching his children to spend money like there is no tomorrow.
There are more than enough examples around us that proves how extravagant descendents can bankkrupt a business passed down by their father or grandfather. It would be a nightmare to the company and shareholders if the person running it is spending money like crazy.
Hi Adam!
Well, I don’t think the kids are lucky with that kind of lifestyle unless it can last long. Why don’t you advice your client? Guess as a dad, he just wants to give the best to his children, not knowing that nothing is everlasting. Its going to be very sad if one day he lost his job.
Good luck to him!
Hey guys,
Man, I really enjoyed myself reading ALL your comments till this point where I get to post my OWN thoughts.
Now, I am an engineer by profession and I am going to fulfil the stereotype of engineers as being logical with numbers, so please allow me to share my thoughts with you in an analytical manner.
First and foremost, who’s fault is it that those kids are borned into a rich family? No one can answer that.
Secondly, who’s truly knows that particular family so well to know that
(a) their father might have come from a very poor background and now that he is most willing NOT TO let his children walk through his path again.
(b) their children might have borned with abundance in wealth and IQ (assuming that their IQ are higher than average since they are now in tertiary education) but poorly endowed in terms of health, looks, height?
(c) their father DID NOT guide them or teach them the SECRETS TO GROW YOUR MONEY, aka “The Rich Getting Richer and The Poor Getting Poorer”
Thirdly, a lot of you have pointed out correcly that it is the HUNGER that allows a person to be driven for success.
So may I ask, “Is it really important that you must be borned poor or taught a lesson or two how does it feel to be poor and down BEFORE you can rise to the very top and be a millionaire/billionaire/trillionaire?” Think about it. =)
Last but not least, EVERYTHING can be changed with HUNGER, be it your looks, your height, your health, your wealth or even your IQ! DESIRE IS KEY!!
But among all, which do you think is the easiest to modify?
To me as an engineer, wealth is the easiest attribute to modify, it just a matter to figures. A lot of you may disagree, but sadly it is the truth.
These so-called magical numbers if taught correctly by their RICH DAD on how to multiply WITHOUT EVEN putting in any effort, this is how the Rich keeps on getting Richer and thus the future of the two ‘unlucky’ children is secured.
Now, before any of you jump to any conclusion as to whether I am rich or poor, good-looking or bad-looking, tall or short, fat or slim, smart or stupid, I am glad to say that I am AVERAGE in ALL aspects.
Did I need to go through hardship to appreciate the value of money? Hell NO! remember, DESIRE IS KEY!!
Am I judging the children or their Rich Dad or anyone of you? No.
Am I for or against Adam’s philosophies? Neither. But one of my beliefs coincides with Adam’s which is, financial independence is very very very important because I have witnessed with my very own eyes how the rich have ruled over the poor simply because of $$$.
So I welcome any comments from anyone, be it good or bad, but with explanation and with politeness, one attribute I think regardless of any of the above attributes, can be cultivated independently. =)
Thank you Adam, for setting up this channel for us all to share our thoughts with you and each other, independently.
Best wishes for all,
Edwin Lee
Hi Adam
I pity your friend’s children and at the same envy them as well… Y is it so? If I were to be as rich as what my dad could provide for me, I would want to make my life useful and able to generate income from businesses and enhancing my education for my future. I have read alot of messages from different walks of life and everyone has a different version, agreeing and not agreeing to certain issues… Its called perception. If I were to have a rich dad as what U have mentioned, being his kid, I would have spent without giving much of a thought as well but if my dad n I were to be wise enough, we would have picked up skills and experiences to generate more income if the family continues to live lavishly w/o fear of debt and poverty…
There is actually nothing wrong about spending cause that is what a basic human needs… No point saving lots of money and earning lots of them but not spending to make your life comfortable… Yet spending wisely and knowing when to spend is the main issue of concern… If someone would ask me to buy myself a armani xchange clothes or boss outfit, I will consider getting one or 2 pieces bcos of comfort and self-groom presentation… Changing the whole wardrobe with armani clothes will be insane. I would rather get a nice piece of diamond jewellries for my loved ones or getting something useful for kids n family, helping others with that same amount of cash spent on the entire wardrobe. Reason being simple, I want my loved ones to enjoy the fruits of my hardwork but at the same time be prepared to stand by my side when in the days of dim light… One thing I have to agree with U, Adam that no one is guaranteed of success in his life at all times but working ourselves and improving constantly, searching and getting better income will definitely generate a higher chance of survival and success. As what your book has mentioned, budget yourself and spend within your means after setting aside the saving amount for rainy days…
I was born in a wealthy family when my grandfather and father run a seafood import and export business, staying in a big bungalow… I was young and after a decade, the family gone into bankruptcy and my dad run away from the family, debtors and creditors… Everyone avoided us and I was from cloud 9 to hell no 9 throughout my schooling age.
When I came out to work, I was making quite a huge sum of mthly salary and started spending as if there is no tomorrow… I was later been told to leave my post due to my injury after resting for a year… Holding a simple diploma, I started my own little business and after a few years, the business is not doing well enough to pay off my expenditure and it gone busted.
Then I began to evaluate myself and started working again… Now, I picked up alot of things along my line of work, re-educate myself and spend within my budget… Life is getting alittle better and thru’ many years of hardship, things finally pay off a little better… I continues to work hard and look for better opportunities…
Therefore, I agree to the fact that having the desire to succeed + hunger + education (knowledge) + life learning experience + maturity of approach + smart & hardwork = HIGHER CHANCE of SUCCESS!!!
Wish you guys all the luck in your endeavours, Happy New Year!!
Well done Adam,
Whether intentionally done or not, you have created an open-ended piece of article which gave so much room for discussion! You first presented the hard facts and coupled with some “WHAT-IFs”.
I’m sure the family in question, is smart enough to at least have something going, as in some plans to sustain the wealth in the family. Yes, looking at the otherside of the coin, there would always be execptions. But alas, this story is still a good one that provides lots of discussion.
We see lots of glamour on the outside of the rich, but the rich won’t tell you what is going on in the background. Remember people, always think what drives the engine and what goes on behind. Go a step further to think about the pains in putting that engine together. Go somemore steps further………(let your mind do the walking now)….enjoy!
Adam, i guess the kids father will surely invest money in any profit making businesses or make them sure they maintain the same lifestyle after completion of their education, as the kids father who is working for an MNC with great sal and rank, i think he had already made some good investments and great future ahead for his kids, your view of thinking is one side and my view is on other side, anyways lets hope your client’s kids will surely have the same life ever..
Hi Adam,
Your folks have an adage that says “give an hungry man a fish to eat and he would come back for more but teach him how to fish then he would never be hungry again” . Unfortunately, your client has failed to teach his kids how to make money but how to spend it alone. The fortune one fails to multiply will continue to diminish and finally fade out. Adam, you could be only one that understands “cash flow” that they will ever come across before they finally hit the dead end, so chip in one or two words and let’s hope they listen to you.
Dear Adam
Well I would say they are lucky at the moment… time would tell..
However it would be smarter if the kids start learning to create wealth or the dad accumulate wealth /having multi sources of income (passive) rather than relying on 1 active income as a Head of Investmt unit. The active income is there so as the dad still holds the post. Can any one define wealth? in Robert kiyosaki’s words – wealth is the # of days you can survive without working actively (a job) while maintaining the current lifestyle. If a person has $5M based on monthly expenses of $10K it would last probably only 41 years!! At the same time, dun forget that the amount of money we have wld shrink with time & inflation rate. Think about it again.. Money will come & go easily if we didn’t do our financial planning properly.
Create wealth thru various sources such as stocks & shares (which can zero out if the market is down); invest in real estate would be a better choice…the value of which will always appreciate with time; or build a web business (http://www.buildit.sitesell.com/Rosalind1.html) or network marketing http://passion.sitesell.com/Rosalind1.html
Hi Adam,
Good try! But I think there is a tiny flaw in the logic your wife and you came up with. This is how I see it …
Your friend is the head of investment in a financial powerhouse. Assuming his monthly pay check is just a miserable 1.6M (3 months bonus made up 5M … I know they don’t calculate bonus that way in the financial sector, but let’s stick with this assumption to facilitate calculation) and he only gets to work for another 10 years. A quick calculation reveals that he will worth (1.6 X 12 X 10 + 5 X 10) 242M at the end of 10 years. I know I have ignored his huge living expenses for the 10 years (again, for the sake of facilitating calculation); but then again, I also try not to take into consideration the chances that he might have a little savings with some Swiss banks and the fact that he being the head of investment might unintentionally put a little of his own money in the funds (that is making hundreds of millions for the company) he is managing. Never mind about his other assets such as the “waterfront†and the 4 second hand cars (yet again, to facilitates calculation), let’s assume that his 2 kids are only left with 242M when your friend is no longer around.
Regardless of the fact that their dad, your friend, is an ace fund manager of a financial powerhouse, and assuming that his 2 kids know nothing about investment and are complete moron thinking that the local banks are the safest place to put their money, and assuming that the local banks only pay out 1% of annual interest, that would translate to 2.42M (or 1.21 each) of cash per annual. I have no idea how much you’re getting a year, but I know of someone, an NUS graduate pathetically working as a translator, only draws about 50K a year, and I am quite sure he will agree that 1.21M a year should be able to afford anybody a very decent living … especially in Singapore (or at least as far as the goddam GST doesn’t go up any further) – never mind about whether the NUS engineer gets his honours or his sis manages to complete her diploma. And oh, they still have their 242M in the banks, remember.
So, I really cannot be sure if they are lucky kids, but I think their luck is at least slightly better than that lousy translator I know, and to say that they are unlucky might be a little far fetch. I heard Bill Gates worth more than 40B (he is also an employee of a public owned powerhouse), and if your friend’s kids is unlucky, his kids would be a real disaster.
On a side note (and in a sense), I wouldn’t really consider your friend, who is hypothetically making 1.6M a month and driving black Lamborghini, wealthy. I have a friend who is making around 2K (gross), spending more than half that money on proteins and consistently losing money in Mahjong, but driving a white, ah bengz (colloquial term for ‘cool’) Honda civics paying by installments. Now that is wealthy and lucky living. 🙂
Hi
Part of me agrees with you that Yes these kids (Plus parents ) are a tad superficial and will “crash and burn” eventually.
Cause like you said its all about image. Very superficial (fancy not having the joy of chicken and chips and a milk shake in an eatery with your kids).
If I had the joy of developing that type of money I would be setting up something for my children.
However I would also be encouraging part time jobs (eg: Mcdonalds the local Mall clothing store) Just to learn the appreciation and value of the $.
(Remember children start off as children not young teenagers so you do have influence! )
As for the cars well.
i would encourage me children to do well at Uni plus save what they can at their part time jobs and I would match their price for their new car.
If they only manage to save about $1000 bucks (when they might have had the oportunity to save heaps more) they get another $1000 from mum and dad. thats it.
If they saved over $4000 they can get $4000 from mum and dad $8000 car isnt bad!
Nothing wrong with Toyota it does exactly the same thing as a BMW!