In the past 3 decades, Asia witness the rise of
the middle income families. Due to a booming economy, massive job creation and
raising salary levels, the major Asia economies created a burgeoning middle class.
These middle-income earners had stable careers, high spending power and plenty
of disposable income.
These gave rise to a mushrooming commerce of
premium lifestyle products and services to supplement the insatiable demand and
appetite of these middle-income earners. Everything from soap, coffee, bread,
noodles have all gone “artisan” and “premium”! In Singapore, a local coffee
would cost about $0.80 to $1.00. Coffees sold at these “artisanal” lifestyle
coffee joints cost anywhere from $4.50 to $7.00 a cup!
The fast food generation demands instant
gratification, with the disposable income they have, they want the advertised
lifestyle now. These middle-income earners today are spoilt for choice and
indulge in lifestyle products and services, simply because they can afford it!
In the Asian culture, well meaning parents have
always thought their children to spend only what they can afford and save their
extra for a rainy day. The truth is, these middle-income earners are doing
precisely what their parents thought them. They are saving up some money for
emergencies, while spending within their means.
As their income rise, they raise their living
standards to match their income. Instead of raising their savings rate, they
raise their expenses in an effort to show they have made it. While they have a
fair amount of savings, they are oblivious to the fact that the buying power of
their money is constantly being eroded through inflation.
The Asian education system in general has also
neglected to teach this fast food generation the management of their personal
finances. The importance of maintaining a prudent lifestyle, constantly
increasing savings, putting those hard earned savings to work for through
investment and reinvesting the profits to achieve compounding returns have
little emphasis in the secular education system.
True financial freedom can only be found through
hard work and delayed gratification. If you are prepared to do the hard
investment work now, the hard investment work will pay you back for years to
come.
T. Harv Eker in his book, Secrets of the
Millionaire Mind best summed up this concept in a quote:
“If you are willing to do only what is easy, life
will be hard.
But if you are will to do what’s hard, life will
be easy.”
Do you really need to upgrade to that new
property now? Do you really need a new car? Do you really need do that
renovation now? Do you really need that $6 cup of coffee?
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