In my 20 year career as a financial adviser I've come across two types of people when it comes to money management; those who spend what they have, and often more than they have, and those frugal folks who always seem to be able to squirrel something away at the end of each month.
A very typical scenario is the corporate expat - housing, schooling, insurance, business class trips back home, car and more all covered. Fat, low tax salaries should mean these are my wealthiest clients, but more often than not they aren't. Wow, these guys can spend it. I usually highlight to these guys that whilst it is great to have a brilliant photo album at the end of their overseas experience an empty bank account is not so alluring.
My wealthiest clients are without fail those who experience capital evens. The sale of a house (eg in Dubai in 2007 one client realized £2m on the sale of a Palm Island property), or the sale of a business.
Next on the list though are not all big earners, they are frugal spenders and good savers.
Boring some might say, but that tends to be the big spenders. The ones that start to have a problem at 55 when they realize they have no pension, can't afford inflated insurance costs and still won't change their ways.
Perhaps a balance in life is the way forward, live in the moment but keep an eye on the future.
Mark Paine
Meyado
www. Meyado.com.sg
About Me
- Mark Paine
- I joined Meyado Private Wealth Management as an international financial adviser in 1993. I have lived and worked in the USA, Europe, the Middle East and currently reside in Singapore in South East Asia where I am Managing Director of Meyado Pte. I am a qualified Financial Representative in Singapore under the MAS Financial Advisers Act as well as holding UK FSA CFP and FPC examinations and a BSc in Business and Law from the University of Hertfordshire in the UK. You can contact me at markpaine@meyado.com
