KT managed to become a single-digit millionaire (in net worth) in her late forties, but hers was a rough journey. When her father passed away unexpectedly, KT was still a teenager – but she already had to provide for both her mother and brother. Here’s what she learned on the road to financial recovery, and eventually freedom:
From financially stable to near-impoverished in a single day
KJ was just finishing Secondary school when her father passed away. She says she still remembers how quickly her family’s situation unravelled:
“I remember coming home and sensing something was wrong, because the front door was locked and all the lights were off. Usually my mum would be at home. And even before I opened the door, I just had this feeling – like a premonition – that something in my life had changed for the worst.
Before I could go in my neighbour rushed out and told me my dad had a stroke, and my mum and brother were at the hospital with him.”
KT says what struck her was the numbness and odd sense of normalcy, as she and her mother made plans to take turns looking after her father. But less than a day later, her father passed away, and the seriousness of the situation sunk in.
A second blow due to her father’s lack of savings
KT says her father worked on sales commissions; and actually his income was “quite above average.” But despite this, he had almost no savings.
“There was $12.67 in his bank account, I remember the number so clearly,” KT says, “And I was wondering how we were going to survive. There wasn’t much in his CPF either, and my mother hadn’t worked since I was born.”
KT says the only saving grace was that the family had no mortgage. They lived in a single-storey landed home, which had been inherited from her late grandfather. She says:
“My dad was not financially responsible, but I give thanks to God that my grandpa was. If it wasn’t for his gift, if we still had to pay a mortgage, I think we wouldn’t have made it through those years.”
KT says this was an early lesson, which she has kept with her when making her will:
“Due to my experience, I would rather leave behind tangible assets than just cash. I want my house to be part of my legacy for this reason – if I sell it and pass down the money, I don’t know if the person I nominate will be responsible with it.
I like the symbolism of it also, by leaving a tangible home I can literally provide shelter from the storms.”
Her second lesson was that:
“Even if you’re not the breadwinner of your family, even if you’re young, practice saving. Make it a habit. And while I hope you never go through what my family did, remember the worst can happen. You may be as old as 60 or as young as 20 when, all of a sudden, the responsibility falls on your shoulders.
You don’t know what tomorrow holds, whatever your age.”
The art of picking the right jobs
KT’s first mistake, upon becoming the family’s breadwinner, was to look for the job with the highest pay – but without concern for other factors like travel time, or the ability to make claims.
“I lived in Pasir Ris but I took a job at Choa Chu Kang. It was a small shop, and I wasn’t reimbursed for costs like travel. The time spent travelling also meant I couldn’t do a second job. I only survived for less than a year, then I had to change jobs.
That was when I grew smarter, and I started to value other perks as well; such as whether there was a transport allowance, and whether there was room to do another part-time job.”
KT says one of her best jobs was at a packing facility for electronics:
“Even now after so many years, I still think that was the best one. It was in an air-con building, very comfortable. Every day you just stand there and put things into boxes. We could even chit-chat while working, and I made many friends there.
The best part was that overtime was rare, so I could work at other places. And when there was overtime, we would get paid more so it made up for it anyway!”
KT’s other job was also a “godsend,” and thanks to her former classmate.
“She was my good friend since Secondary One, and her family knew about my situation. So her dad would hire me to help with admin work, like filing, as my second job. Truthfully I think he didn’t need me, he was just helping; so I always felt a bit guilty.”
Sadly, the packing job ended about a few years later, when the company moved its business to Hong Kong. But by then, KT had time in the workforce, and knew how to pick her jobs with care. She says:
“A lesson they need to teach in schools is how to pick your job. It’s not just about who pays you the most. It can give you a big head start in working life, if you have an employer who provides things like workers’ insurance, transport fare, or flexible timing.”
KT worked several more jobs over the course of her life, but she was always careful to ensure her job didn’t fully occupy here or stifle her self-development:
“I went back to studying, because I could see how important a diploma was. By then my mother had also rejoined the work force, and when my brother went for NS he stopped asking for an allowance, even though we would have been happy to still give it.
But the most important factor was that I kept time for study and other opportunities. If you only work at one job, and that one job takes 100 per cent of your time and effort, then quite likely you’ll be stuck there your whole life.”
Learning to accept “necessary losses”
KT says her financial situation improved rapidly, when she cultivated her financial literacy. In between work, KT would read investment books or speak to friends who were financial professionals. She says that: “In those days things were very inconvenient, I used to have a science calculator where I learned to manually program the charts.”
But over time, she went from learning basics such as budgeting, to actively trading in stocks and Forex.
She says there were two key lessons here.
The first was the acceptance of loss:
“I don’t think anyone in this world who trades or invests has ever avoided failure. I believe the chances of making a mistake at some point are 100 per cent. Throughout the learning process, I often lost money – and it was twice as painful for me because my experiences have made me very ‘kiasee.’ I am a very risk-averse person by nature and nurture.
But I accepted those losses as learning experiences, and didn’t quit because of it. Losing is okay, provided the loss is a tolerable amount, and you learn from it.”
KT says that, even today, she allocated around five per cent of her portfolio to knowingly high-risk investments. Some of these include assets like crypto, and even land investments such as overseas plantations.
“They are not investments that I consider safe, and I am ready for loss. I have seen more than one scam. But because I am disciplined and limit my exposure, I know I can’t lose more than I can manage.”
The second lesson was to be “thick-skinned” about asking for help:
“I bugged my finance friends all the time, I still do,” KT says, “People say aren’t you shameless, always inviting them for coffee so you can get free consultations. No, not at all. If you’re interested in something, if it’s related to your financial advancement or well-being, then you better be thick-skinned.”
KT says an important realisation was that:
“You should always pester someone who is really good at what they do, because it’s more likely to be free! Most people love to talk about what they’re good at, and they will give you better knowledge than many of the seminars or courses you have to pay for.”
Rules at one stage of life are wrong at another, and vice versa
KT says that, having managed family finances since 16, she’s learned the “right thing to do” is never immutable. Rather, it changes based on where you are in life.
“In my first lower-paying jobs, it was important to be humble and quiet,” KT says, “In my job now, if I am humble and quiet, I will get fired or go nowhere.
When I was managing my family finances at 16, I hoped my brother would never want to go to university. Where would the money come from?
When I was 30, if he hadn’t been interested in university, I would have forced him to enrol myself.”
This also means that financial goals need to change:
“Money needs are not static, so I don’t like formulas that say you need a certain percentage of your income to retire, or a certain rate of return is required,” KT says, “Chances are they are true now, they may not be true later. So planning your financial goals is an ongoing process, and you need to be flexible.
The more stubborn you are, the more life will punish you. And in financial markets, persistence is not always a virtue.”
For more stories of personal experiences and struggles, among Singapore’s increasingly sandwiched single-digit millionaires, follow us for updates.
