SINGAPORE – Should success be rated based on the amount of money you have?
The majority of Singaporeans who took part in a recent survey did not think so, but about 40 per cent of them still felt that wealth equals success.
As a result of such a stereotype, those who worship money more often end up stressed and unhappy when they feel they are still far from achieving their financial goals, such as accumulating more than $1 million.
Ironically, the regional “Rethink Healthy” survey by insurer AIA is not even focused on financial matters but on how people can improve their lifestyles so that they can live healthier for longer.
The survey also covered China, Thailand and Malaysia, but only those polled in Singapore linked personal well-being to financial success.
As a result, AIA noted that “many in Singapore continue to feel pressured by the expectation of equating personal worth with wealth”.
To make matters worse, those who hold this view are at risk of making financial mistakes, because they tend to believe they know better than others and are doing the right things.
For instance, 63 per cent of them do not believe in seeking advice from financial experts, and 72 per cent would actually dismiss verified and accurate information as fake news.
This explains why many people continue to lose their savings to investment scams, as they probably think they can make more money than others.
Instances of stereotypical thinking are also seen regularly on social media whenever there are new reports on how some Singaporeans are building up large CPF balances or when they receive high monthly payouts from CPF LIFE.
Those people would dismiss such reports as fake news or government propaganda, when the reality is that many prudent Singaporeans will top up their CPF accounts after learning to plan for a higher retirement income.
If you are stressed over money while you are still working, imagine how difficult it can be when you no longer have an income.
This is why all of us need to consider having a solid backup plan like CPF LIFE, which can provide a good and stable income for life, because it is certainly not easy to plan for a decent retirement income on your own.
Here are three findings from the survey and what you should learn from them.
Being a high-income earner does not mean one is wealthy.
There have been many cases of high-income earners going bankrupt after overspending or taking on excessive debt to support businesses that ultimately failed.
In a stark reminder that no amount of money is enough if you spend like there is no tomorrow, the High Court heard a divorce case recently involving a top executive who drew a monthly salary of over $88,000.
When the court combed through his assets, he was found to have only about $13,000 in savings in his bank accounts. This sum was certainly not enough to pay for an outstanding personal debt of over $300,000.
He could not accumulate any savings because he needed at least $50,000 for his own monthly expenses, while his former wife and children needed another $30,000 every month.
What this means is that you won’t know whether people are wealthy just by looking at their lifestyles or the type of car they drive.
Someone driving a big car might have bought it with a huge loan, which is still outstanding.
In contrast, those who drive small cars could well be cash-rich, simply because they are prudent enough not to spend $100,000 to $300,000 more on a bigger car.
All of us would be poorer if we started to rate a person’s success based on wealth alone, because it would mean that the group of foreign criminals recently jailed for money laundering would be regarded as highly successful for amassing wealth of over $3 billion.
Instead, these crooks faced public condemnation for flaunting their ill-gotten gains by buying multiple luxurious properties and expensive cars.
Indeed, the ones who are truly successful and deserve admiration are the hardworking law enforcers who work tirelessly to prevent criminals from abusing Singapore’s financial system.
Finally, legendary American entrepreneur and philanthropist Andrew Carnegie believed that rich people cannot be described as successful if they kept everything to themselves only.
He famously said the “noblest possible use of wealth” would be to help lower-income workers who are keen to improve their life skills, such as by contributing to their “enlightenment and the joys of the mind”.
Many seniors are less well off than their children, perhaps because the older generation was less savvy about planning for their own retirement.
Many people in China believe it is the children’s duty to ensure their parents are well taken care of, with the AIA survey noting that those who do not support their parents financially are usually branded “ungrateful”.
While Asian culture leans heavily on filial piety, there is no denying that financial pressure is heavier on the sandwiched class – adults who have to take care of their parents and children.
To make matters worse, a past survey by AIA Singapore found that many parents here tend to sell themselves short by prioritising their children’s expenses, leaving little for themselves.
This probably explains why many parents in their 70s or 80s end up having not enough money to even take care of themselves.
Instead of counting on the next generation for your retirement and blaming them for failing to support you, first prioritise planning for yourself so that you can be financially independent.
Doing so means you will not have to rely on others, and can even provide some assistance to your children if they encounter cash-flow problems.
When it comes to staying fit, the prevalent thinking in Malaysia suggests that it requires “big financial investment” to do so.
This is because many young people do not mind signing up for gym membership or paying substantial sign-up fees to take part in high-impact fitness activities.
Many people also spend top dollar on health supplements and special diets to boost their intensive training.
While there is nothing wrong with spending money to make yourself feel better, you should never use cost as a reason to stop you from leading a healthier life.
For a start, having a balanced diet, reducing salt and sugar and eating in moderation can go a long way towards improving your health.
Of course, it is never too late to plan for free and regular outdoor activities for yourself, such as brisk walking or jogging along park connectors near your home.
All of us have read stories on how seniors in certain countries such as Japan can still work in their late 80s and 90s because they have led a healthy and active lifestyle all their lives.
They certainly do not need to spend on fitness activities or a special diet because they have been eating healthier meals from a young age.
Finally, having enough money is important, but the most valuable thing in life should not be our wealth because life is certainly better when we are always happy and healthy for as long as we live.
After all, the happiest people often do not have everything, but they always make the best of what they have.
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