Talking about wealth...

Creating Wealth…!!

Way back then…(1960s)

When I was young, I stood open mouthed and wide eyed – admiring in sheer amazement and envy of my friend's new Raleigh bicycle. He took all the admirations in his stride, as he cycled the symbol of wealth around our village. One thing admirable about him – he let his friends tried out his bicycle or even carried us around one at a time as a pillion rider.
Being wealthy in those days – meant you can afford a brand new Raleigh bike for your child. My friend’s parents were wealthy. They had wide expanse of padi-fields, many acres of rubber plantation, and also a tractor which they rented out to other farmers in the village.

Way back then, creating wealth was by means of tending to the soils, toiling the land, and landing good catch from rivers and canals. Creating wealth was harvesting what you grew, barter trading eggs from your poultry farm for coconuts and vegetables with your neighbors. Creating wealth was buying a pair of goats, raised them until they reproduced. Upgrading you keep from goats to cows, and from selling of cows came a source of wealth! Creating wealth was also a matter of saving any surplus in cents and ringgit notes by depositing them into ‘piggy banks’ made from bamboo trunks.

Way back then, I myself was enterprising and participated in wealth creation. I bought ice blocks from a ‘Nyonya shop’ in the nearest town – hacked them into smaller blocks, placed them in gunny sacks filled with saw-dust. Those ice blocks were products which I carried around the village on my father’s old bike – advertising them with my high pitch screams “Air batuuuuuuu……air batuuuuuuuuu!!!”.
Normally I made a net profit of one ringgit per day, but reached as high as three Ringgit during fasting months!

Creating wealth – way back then was through sheer hard work.

Back then….(1980s)

When I graduated and started to earn salary – I did not waste much time before buying a house. My thought was, instead of paying rental just as well I pay the banks for my loan installments. My first purchase was a two bedroom compact house on a plot measuring 14’ by 65’ in Taman Melawati. Small, yet we were proud and happy owners. My first enterprising move – I negotiated with the seller to elevate the price so that I could get a 100% bank loan. As part of the negotiation, I agreed to pay for any incremental difference of property gain tax which he had to pay! That house bought for RM60k was sold two years later at RM73K. I made my first profit – and we moved to a rental and bigger house. The profit from the house sale was deposited into ASN! That was my early exposure to equity and unit trusts. Great lessons!

When our first child was born ( Adlil ), I shared with LiL my vision of buying a house each time we get a child. Six children later, I am pleased to say – I kept to my vision!!!

Later, a friend introduced me to ‘Futures trading’ of the palm oil commodity. That was an expensive lessons for me! I lost my ASN savings….and lots more. No more commodity futures for me!!! And not for my next generations either!!!

Then the same friend convinced me that investing in the stock market were safer. I was gullible – so I did. It was ok until one day when Saddam decided to attack Iran! I saw my capital shrunk and kept shrinking. When it hit 50% loss – I exited. I have stayed away from stock market since then…..!!

One day, my wife came home telling me about a get rich quick scheme which her office colleagues have invested and made lots of easy money. What ever remained from the stock market, I placed with one guy called ‘Pak Man Telo’. A few months later – his business went bust and I lost everything!!

The only investment which has seen my money grow year after year has been the real estate investment.

These days…

In Malaysia!
Creating wealth in Malaysia in recent years – means joining politics and getting into the right circle. Just to show that life is not all unfair, there are a few people who made it through honest effort of sheer hard work. Read about two of them here.

In U-ay-E!
Creating wealth means being lucky in winning the millionaire prize during the monthly National Bond draw!
For those with strong hearts, creating wealth in U-ay-E is about gritting one’s teeth, closing one’s eyes and splash money to invest in Real Estates!!
Many have got it right!!! The only flaw in that system is that – you need to be wealthy first in order to create more wealth.
To the less than wealthy average person like me – we can talk all day and admire with envy all night, listening to stories of how others have made it!
But – there is one millionaire in U-ay-E for every sixty people! Read here about it, and be inspired!!

Sometimes, I long for the good ole days…..when a ‘ice cream potong’ was all the indulgence I need to make me so so so happy!