Thursday 2 October 2008

Adam Khoo

A Blog Post by Singapore's Youngest Millionaire Adam Khoo

Some of you may already know that I travel around the region pretty frequently, having to visit and conduct seminars at my offices in Malaysia, Indonesia, Thailand and Su Zhou(China).

I am in the airport almost every other week, so I get to bump into many people who have attended my seminars or have read my books.

Recently, someone came upto me on a plane to KL and looked rather shocked. He asked, 'How come a millionaire like you is travelling economy?' My reply was, 'That's why I am a millionaire.' He still looked pretty confused. This, again confirms that greatest lie ever told about wealth(which I wrote about in my latest book 'Secrets of Self Made Millionaires'). Many people have been brainwashed to think that millionaires have to wear Gucci, Hugo Boss, Rolex etc. (I shop at G2000 by the way) and sit on first class in air travel. This is why so many people never become rich because the moment they earn more money, they think that it is only natural that they spend more, putting them back to square one.

The truth is that most self-made millionaires(not those lucky who inherited money) are frugal and only spend on what is necessaryand of value. That is why they are able to accumulate and multiply their wealth so much faster. Over the last 7 years, I have saved about 80% of my income while today I save only about 60% (because I have my wife, motherin law, 2 maids, 2 kids, etc. to support). Still, it is way above most people who save 10% of their income (if they are lucky). I refuse to buy a first class ticket or to buy a $300 shirt because I think that it is a complete waste of money. However, I happily pay $1,300 to send my 2-year old daughter to Julia Gabriel Speech and Drama without thinking twice.

When I joined the YEO(Young Entrepreneur's Organization) a few years back (YEO is an exclusive club open to those who are under 40 and make over $1m a year in their own business) I discovered that those who were self-made, thought like me. Many of them with net worths well over $5m, travelled ecomony class and some even drove Toyota 's and Nissans. I noticed that it was only those who never had to work hard to build their own wealth (there were also a few ministers' and tycoons' sons in the club) who spent like there was no tomorrow. Somehow, when you did not have to build everything from scratch, you do not really value money. This is precisely the reason why a family's wealth (no matter how much) rarely lasts past the third generation. Thank god, my rich dad(oh no, I sound like Kiyosaki) foresaw this terrible possibility and refused to give me a cent to start my business.

Then some people ask me, 'What is the point in making so much money if you don't enjoy it?' The thing is that I don't really find happiness in buying branded clothes, jewelry or sitting first class. Even if buying something makes me happy, it is only for a while. It does not last. Material happiness never lasts, it just give you a quick fix. After a while you feel lousy again and have to buy the next thing which you think will make you happy. I always think that if you need material things to make you happy, then you live a pretty sad and unfulfilled life.
Instead, what makes ME happy is when I see my children laughing and playing and learning so fast. What makes me happy is when I see my companies and trainers reaching more and more people every year in so many more countries. What makes me really happy is when I read all the emails about how my books and seminars have touched and inspired someone's life. What makes me really happy is reading all your wonderful posts about how this BLOG is inspiring you. This happiness makes me feel really good for a long time, much much more than what a Rolex would do for me.

I think the point I want to put across is that happiness must come from doing your life's work(be in teaching, building homes, designing, trading, winning tournaments, etc.) and the money that comes is only a by-product.If you hate what you are doing and rely on the money you earn to make you happy by buying stuff, then I think that you are living a life no better than a prostitute.
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p.s - I got this in my mail recently. Never heard of him before this. I checked out his website & other related articles. Everyone of them spoke positvely about him. He makes a lot of sense & whats more, all his fundas sound simple enough to follow.
What say???????????????????
For more information on Adam Khoo, click here

34 comments:

  1. Thanks for sharing this, its so very true! Gonna forward this one. And btw, the second part of the Mysore post is up :P

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  2. Oh, this is great. Gosh, I just love sane people -- I wish we had more people like him.

    By the way he has the same laptop as I do, is that a good omen :-D

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  3. All I can say is thanks for sharing your insight. Have a good day.

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  4. absolutely amazing! I am glad u posted this.. am forwarding this to my friends too :D :D

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  5. Great thoughts!! I will start saving 80% once I get my first million...:D till then it will be un-inhibited capitalism for me.

    Even after having a job for four years, my bank account could make a beggar cry!!

    Hmm, time for some introspection i guess.

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  6. Lovely post. It will come handy to show to my sons, nephews and nieces who would not look at any shop other than the big brands. Now since they have grown up they have started insisting that we elders should also wear clothes and accessaries from famous brands.
    Yesterday i read a 'thought for today' in the newspaper which said "take care of your small expenses 'cause it is the small holes which are responsible for drowning a big ship."

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  7. I loved this post and I am goping to fwd this to my family. He is so right and sane.Ihave heard the same from many first generation millionaires.Thanks for putting it.

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  8. shalom: Welcome!!!!
    Going now to chk it out:-D.

    agnes: Ofcourse it is!!! It means u r already half-way there:-D

    sukku: U r welcome:-D!!!!

    winnie: Oh yes it is, and it touches all of us in some way.

    abraham: U r telling the story of all our lives:-D.
    Ofcourse THIS is a wake-up call for all of us. Ever hrd of "palla thulli, peru vellam" funda...try it:-D, its easier than u thk!!!

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  9. sensible article. it is good to see affirmation of what we agree with once in a while in print. thanks!

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  10. Hi, are you there ?? There is tag waiting for you on my blog. I had left a comment on your earlier post also.

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  11. somehow i disagree.. i don believe in savin too much .. i don think it is not wrong to have materialistic pleasures..yes i agree strongly n believe that it is important to value small pleasures .. ofcourse they are most imp to me..they do gimme happiness more than material.. but def goin in an economy class wen ur a millionaire is stinginess and the rest is just an explanation for it..

    live life to the fullest once! work hard to get the luxury ofcourse!...

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  12. balvinder singh: u r so right!!!
    Yes I got the Tag & will be putting it up next:-)

    renu: I'm glad u liked it!!!

    lan: Hmmm...know exactly wht u mean:-).

    sansmerci: Hehe...aaah the voice of the young & fearless!!!!
    Agree with u...the comfort & the 'feel good' exp when v spend money is something else:-D but Adam Khoo is just saying tht millions whittle away to nothing if v focus too much on show & extravagence.
    I guess all of us pass thru this stage b4 we wisen up;-P.

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  13. I guess what the heck if I am a millionaire, should be able to indulge in some of the little pleasures in life as Sansmerci said otherwise it would be pointless earning all that money and it would also serve as motivation to make more money....correct me if I am wrong...

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  14. Yes I agree to what he says - but only partly. I really see no harm in wearing branded clothes or spending on yourself - if that is what makes you happy. Besides, if one can afford it (by afford I mean that they save even while they spend on such stuff) then what is the harm? Every person has their own desires in life and after working hard for it, if they do not indulge a bit here and there then what's the point? Just by remaining frugal one doesn't become happy and rich. I believe in Kiyosaki more who says that you should first plan how much you want to spend, then make a plan how you can earn it and not the other way round.

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  15. Well if you have the money...why don't you flaunt it...like they say ...you shouldn't hoard money...the more you circulate it...the more you would have...

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  16. all i can say is that this was a must read for me and the likes!
    and true, materialistic happiness doesnt last, which btw is surely going to slip out of my mind the very next time i go to a mall .. sigh

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  17. sukku: I dont thk he meant to say tht we have to hoard money...
    "I refuse to buy a first class ticket or to buy a $300 shirt because I think that it is a complete waste of money. However, I happily pay $1,300 to send my 2-year old daughter to Julia Gabriel Speech and Drama without thinking twice."

    Take another eg. A person X is rich but careful with money.....I'm sure he'll decide to vacation in Switzerland instead of Ooty...but he may opt for economy class rather than First class instead choosing to spend the money to good food & sight-seeing trips.
    Get my point???????

    "you shouldn't hoard money...the more you circulate it...the more you would have..."
    This funda I didnt quite get:-P

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  18. deeplydip: "Just by remaining frugal one doesn't become happy and rich."
    Good point but again as I mentioned to sukku I dont thk he meant to say tht we have to hoard money...
    "I refuse to buy a first class ticket or to buy a $300 shirt because I think that it is a complete waste of money. However, I happily pay $1,300 to send my 2-year old daughter to Julia Gabriel Speech and Drama without thinking twice."

    But I do to a certain extent agree with wht u have written "I believe in Kiyosaki more who says that you should first plan how much you want to spend, then make a plan how you can earn it and not the other way round."

    Indulgence, all of us do at some point or the other....some of us partial to branded clothes, so splurge there, some others love to have good food, many others like to be seen at IN places...there is nothing wrong with any of these as long as u know ur limits & dont exceed it.
    Adam Khoo just stresses tht "many people never become rich because the moment they earn more money, they think that it is only natural that they spend more, putting them back to square one."

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  19. Ish: Heehee...invest a set amount in Mashreq Millionaire or NBD, the rest u can blow without feeling any guilt:-D.
    And as a bonus u can even win the Grand Prize...but there's a trick to it...read carefully....dont go put 10k in one go & then wait for ever to win(like my husband does:-S). Every month put a minimum amount into the draw..show them u r consistent...believe me u'll DEFINITELY win in 24 months time.
    B4 u ask..I'm not practicing wht I preach:-(...the husband doesnt believe in my funda:-S.....U do it...believe me it will work...shhhh dont tell anybody!!!!

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  20. If only everybody stops spending by holding their brakes especially millionaires....what would happen to the common man or the economy...that's what I meant by hoarding...there is less to circulate and naturally less to go around...so please don't get me wrong...

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  21. Actually moderastion is the key everywhere, be it spending or saving:)

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  22. oh i dint know that.. i hear abt the Mashreq Millionaire all the time on FM but never quite found out.. but there has to eb a beginning someday!

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  23. funny but just yesterday i did a post on how money can buy happiness :) must confess that i only partly agree with the guy. Its all very well to save up for future contingencies. But not 60-70% of the income. Cmon. Life is too short. One must enjoy. And its not about wearing an expensive shirt all the time. But once in a while there`s no harm in splurging. or is there?

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  24. renu: u r spot on but how many of us have the will to practice it:-D

    ish: Go for it.....i have a gut feeling u'll win:-o

    piper: U knw wht...I read it & I was smiling all thru...coz even I was aware of the similarity or shd i say contrast in our posts.
    Ofcourse I agree with u.....Adam Khoo just is trying to tell us tht millions wont remain for long if we keep splurging all the while. I'm sure even he has a few branded shirts in his wardrobe.:-D

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  25. that was an interesting read ...and bits of it worth practising

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  26. suma: oh yes it is......:-))
    Thanks for visiting!!!!!

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  27. Well I agree that the hapiness is in doing some good work, having a good family time and being a good person at heart, but that does not mean materiastic things do not give you hapiness. May be most of the self-made millinaires do not represent the avg. human beings and that's why they are milliniares. So let's leave them alone. Trust me, Yes there is a pleasure in traveling in business class as it is much more comfortable, a mercedes is a pure luxury and hence it is ofcourse better than avg. car, gucci/muvado change your personality totally and change the outlook of people looking at you, all these things do matter to most men on earth and there is nothing wrong in having a desire and actually spending for if you affoard it. Trust your instincts and inner voice :-)

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  28. milind: U know what??? I do agree with u...about the mercedes & the change of personality u undergo when u own one:-D
    "there is nothing wrong in having a desire and actually spending for if you affoard it."
    I dont Adam Khoo is disuading u from spending. He just means to say that DONT FORGET the fact that ur money is going to dwindle if u keep spending on branded & luxury stuff.
    Thank U for visitng:-D

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  29. wow, thanks for sharing! really inspiring ^^

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  30. well said........
    as an artist i derive enormous happiness by painting, making murals and sculptures.
    yu will understand if yu look me up on :

    chandrasart.blogspot.com

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  31. Howdy

    It is my first time here. I just wanted to say hi!

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  32. pretty cool stuff here thank you!!!!!!!

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