He is currently one of the world’s most successful investors:

Spending: If you buy things you don’t need, you’ll soon sell things you need.

Savings: Don’t save what is left after spending; spend what is left after saving.

Hard work: All hard work brings profit; but mere talk leads only to poverty.

Laziness: A sleeping lobster is carried away by the water current.

Earnings: Never depend on a single source of income.

Borrowings: The borrower becomes the lender’s slave.

Accounting: It’s no use carrying an umbrella, if your shoes are leaking.

Auditing: Beware of little expenses; a small leak can sink a large ship.

Risk-taking: Never test the depth of the river with both feet.

Investment: Don’t put all your eggs in one basket.

These quotes may come to us as common sense, but when it comes to making financial decision, most people rely more on their “feeling” than their “thinking”. If you win $100,000 in a lucky draw,  would you invest it somewhere? Most people would have no problem taking additional risk on other people’s money, but the same group of people will think twice about doing the same to their own hard earned money. From this findings, it provides another reason why it makes sense to consult people who knows better before we decide what’s good for us.

1. A survey revealed that Singaporeans are risk adverse and most of them do not feel sufficiently informed to make financial decisions. Some of the survey findings:

• 42% feel that financial planning for retirement is “too complicated”
• 43% cited a guaranteed rate of return as the most important factor when considering savings and investments
• 61% have taken steps to ensure adequate post-retirement income, but 61% are worried their savings will be insufficient

2. Banks are getting more stringent in extending loans. About 25 percent of car loan applications have been rejected. For those who have secured loans, they managed to get only 80 to 90 percent of financing on their cars’ purchase price.

3. Spas, travel agencies and personal trainers are collecting data on the 50-plus crowd and offering special deals on everything from massages to European vacations to muscle conditioning. This segment cares about their well-being and has the spending power to act on it. Spending by seniors here is projected to hit S$16.4 billion by 2015. By 2030, one million Singaporeans will be over 65, triple the current number.

Studies has been conducted to study the psychological effect of making a profit or loss in an investment for an average person. If a person makes an investment of $10,000 and made a loss of $5,000, the intensity of the experience is TWICE of if the same person makes a gain of $5,000. That’s pain vs pleasure at the ratio of 2:1. To me, that makes sense of why most people associate investment with pain instead of opportunity.