Best piece of advice to all Singaporeans with car fetish (from Joshua Kennon):

“One of the things that is most emotionally painful for me to watch (filling me with a mixture of loathing, contempt, pity and sorrow simultaneously) is to see well-meaning parents give their child a depreciating asset such as a car or a motorcycle without the child or the parent having any notable savings or investments.

Why?  I know based upon human behavior and psychology that it is perpetuating a horrible mis-education from one generation to the next that will keep the next younger offspring in poverty.  They will come to expect that you work hard for your money and then you use that money to buy toys and gadgets that are soon worth nothing.  Then, you have to work more to afford more.  It’s a vicious cycle that puts you at the mercy of the economy and employers because you can’t get off the consumption treadmill without losing everything you have.”

I was once on the receiving end of the same situation. Thankfully, at that time I was just inducted into the wonderful world of investing and my years of learning about opportunity cost kicked in to save me from a stupid decision.

While I didn’t exactly put that sum of money to its best use (read: I bought an ILP. Stupidest thing ever.), the spirit of the decision was right. And 6 years on, I can honestly say that getting into that spirit; getting to that way of thinking has helped me tremendously.

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