zahrein Blog

                               Don’t become an ex-millionaire

It’s so sad and tragic. After years and years of saving money and careful frugal living, you see all your money disappear in a flash. Just because of one error in judgment - unfortunately in this case, a fatal error - you are now facing a bleak and uncertain future.

One day you are a millionaire and the next, you’ve joined the ex-millionaire club.

Whatever you do folks, make sure that this NEVER happens to you. This is not a case of having loved and lost. This is a case of losing and losing. Hard as it may read, but it is better not to have the big money than to have it, and then lose it all. After all, you never really lose what you never had.

So let’s us look at the three reasons why many folks have been relegated to becoming ex-millionaires. In the hope that it will not happen to you.

1. Starting a business

Starting a business is perhaps the number one reason why a lot of millionaires are now ex-millionaires. Particularly those who have never been in business before.

I realized the temptations are there. You have the cash. Why not earn more returns from your money by starting a business. After all, if the business really takes off, your money will shoot to the heavens.

But think again and again. Then think one more time. First question - what do you know about running a business? If you cannot even answer this question, then case closed. Keep your hard earned money in your pocket.

As mentioned in the book “Millionaires are from a different Planet!”, 80 percent of business close up shop in the first year alone. After five years, only five percent of business will remain open. Now, that’s a mighty high rate of failure. In short, business is already very, very risky. Don’t make it any worse by opening up shop if you don’t know anything about the business.

As a side interest, check out the list of business yours truly have been offered - property development, importing furniture, Network 21, insurance agent, music shop, CD recording, music studio, managing a rock band, Amway, Cosway, internet MLMs, car repair and best of all, cow breeding! While I’m sure the businesses can make money, what I know about them is as much as I know about the sex habit of earthworms - nothing. So thank you very much, think I’ll keep my money this time around.

2. Inappropriate investments

Making inappropriate investments is another culprit. Someone comes around saying why be happy with 12% return from ASB when you can make 30% (or more!) in … (fill in the blanks). The “investment” can be futures, options, currency trading, commodities, properties, time-sharing, gold, silver, opals and the latest - internet ventures.

If you love yourself and your family, take my advice - keep the cheque book and shut the door. All the above - while it can make a lot of money for some selected professionals - will only drain your bank account like a vacuum cleaner on a jihad.

Folks, any investment that is too good to be true, is exactly that - not true. For starters, no one is gonna broadcast on any investment that can provide a return of 30% plus per year. They’ll be too busy trying to keep it to themselves!

3. Buying expensive toys

After years of living from hand to mouth, coming into some big money can drive folks wild to the nth degree. I’m sure you have read reports on some of the big spending Felda settlers. In one extreme case, after getting the money for their land, two sixty plus year olds went out and bought themselves super bikes!

Many others went on a similar buying spree for themselves and their children - gleaming new Protons, big huge bungalows including swimming pools, home theatre systems, gold chains a foot long and just as thick, and any other expensive toys you can think of.

All these wild spending will only take them to one lonely club - the ex-millionaires club. What is worse is that it led them to the ultimate poorhouse - no land, no money.

These are just but three reasons why some folks become ex-millionaires. Now that you are forewarned, make sure you do not join the list.

Stay a millionaire. It’s much, much better. For starters, you have more money!

      Simple ways to cut your electric bill

We often take our electric bill for granted. And as time goes by, as sure as the sun will rise tomorrow, the bills will creep up. Sadly, even when we see it going up, we just shrug our shoulders and accept that it is the cost of living and maintaining our house.

But it ain’t necessarily so. I have discovered that I can cut down at least twenty percent of my electric bills by making some simple changes. It does not take much doing but it saved me a lot of money. Some of the things you can do to save on your electric bills are listed below.

Use fluorescent bulbs

Use fluorescent light bulbs instead of incandescent bulbs. They are more efficient and longer lasting. My electric bills have dropped some RM40 per month since I changed to fluorescent bulbs.

Use energy efficient light bulbs

I realized that saving energy is not a big thing in this country. But these energy efficient bulbs - while being just as bright - can reduce your electric bills in the long run. The manufacturers claim the savings to be over 25%. And that’s some big money right there.

Use low wattage light bulbs

For areas that do not need very bright lights and illumination, use low wattage bulbs as they are cheaper to run. Of course, you should also ensure that you do not fix a high watt bulb into a low wattage fixture. For example, putting in a 100 watt bulb into a 60 watt fixture is triple doo-doo. Not only it wastes energy and money, but you also run the chance of damaging the fixture. Banyak rugi loh…

Switch off lights when not in use

Maybe obvious. But guess who is guilty of this? That’s right. Yours truly. I often leave lights on even when going out of the room on the basis that I may return in a short while. But often time, I come back two hours later. An expensive two hours, I may add.

Not anymore though. I now switch off ALL electric appliances if I’m going out of a room. After all, if it can reduce my bills and save me money, why not? Heck, I’ll switch off anything if I can save money by doing so!

Don’t set the temperature of your air-conditioner too low

Of course the whole idea of having an air-conditioner is too keep a cool comfortable temperature. But that does not mean that you have to set the temperature down to Arctic conditions. Other than freezing you to death, it is also very expensive. Choose a comfortable temperature setting - say 24 degrees Celsius - and stick with it.

You should know that each degree lower drains your wallet.

Use ceiling fans instead of air-conditioners

Ceiling fans are very effective while being a lot cheaper to run. So whenever it is not too hot, switch on the fans instead of the air-con.

And according to Consumer Reports in the US, by turning both the air-con and the ceiling fan on, you will also save money. For example, set the air-con at 25 degrees and the fan will reduce the temp by a further two degrees. In other words, the room now is a comfortable 23 degrees.

Don’t set the temperature of your refrigerator and freezer too low

You can turn up the temperature of the fridge and freezer by a couple of degrees and your food will remain as fresh as ever. But your electric bills will go down. You win both ways!

Of course, do check the owner’s manual as to the recommended setting.

And if you want more…

If you like to find out more ways to reduce your expenses, check out the book 1001 Ways to Cut Your Expenses” by Jonathan D. Pond. Needless to say, it is full of ideas in which you can save money. Even some far-out ideas that no one will think of in a thousand years. Examples - ask for a modest tombstone or even more drastic, to be cremated instead of being buried! Nothing will top that!