There’s a quite informative and definitely entertaining “edutainment” show on CNBC (Starhub cable channel 15) every Saturday night. It’s called “The Millionaire Inside“.
Tonight, the show hosted 4 guests who had these pointers on “how you can also be a millionaire”:
- Pay yourself first. Put away a sum of money, say 10% or more, every single month to an interest-bearing tax-free account (i.e. any good savings account).
- Don’t rent a place to stay. Own your home. It’s better to pay for a mortgage than to make your landlord rich.
- Invest in property, especially during a property slump. Apparently one of the gurus – Barbara Corcoran – said the US is currently experiencing a property slump. So it’s time to invest there now (well, if you are living there…)
- Invest in stocks of well managed and well known companies that are “on sale”. The self-made millionaire stock expert Phil Town did not elaborate much on how to identify stocks that are “on sale”, except to say that sometimes when big funds sell out certain stocks, their prices will nosedive. I suppose you gotta identify stocks that are selling at below their actual values. Easy?
- Be an entrepreneur. Start on the side part-time, build up your business, and then take the plunge when ready.
What is not expressly mentioned in the show is that it takes money to make money. How are you going to make the downpayment of your house (in Singapore, you have to put at least 10% down), buy shares, start a business, or even pay yourself when you have little or no income?
First things first. You gotta find a job that pays well. Then you find ways to grow your money. Get your priorities right.