The 3Room HDB flat I'm staying in cost roughly $20,000SGD 30/40years ago
One master bedroom can hold 2 adults and 1 kid.. (My mum was a single parent and only my Mum and a older sister stayed in the house)
If Master bedroom occupied, there's still 1 room left.. what can be done with it instead? This should be a question I should asked my Mum 10years ago..
How to turn a liabilities into Asset?
My Mum used to earn as much as $20k per month while she was a insurance agent but she had the wrong mindset which prevented her from making more/saving enough money, her health deteriorated and she couldn't keep up with her work then she became a cleaner and earn roughly $300 per month instead..
My mum started becoming poor when she thinks she is poor, the main cause of poverty or financial struggle is fear and ignorance, self-inflicted fear and ignorance that keeps people trapped, the fear of not having enough money, the fear of not paying the bills.. She was trapped in the cycle think if she don't work she won't have enough, and she didn't think of finding a better job as she's afraid if she left her stable cleaning job the spot might be given to someone else and if she wants to go back they wouldn't hire her anymore..
In the 15years I stayed in that house that particular room was vacant and it acted like a storeroom to keep her "news paper, empty cans". My mum instead thinking she's poor or struggling financially could have rented out the room for 5-10years and earn back the cost of the whole house.
Thank God she PAID it one in one go when she still had the ability many years ago before becoming a cleaner (lesser liabilities).
Thinking back actually last time we don't need the financial assistance, all we needed was to rent out a room and collect monthly rental.. (Besides the house we stay in is located at a very prime location)
Reminder to self, next time when I have children remember to teach them how to differentiate Asset and Liability (the difference is An asset puts money in your pocket, A liability take money out of your pocket). Let them know the difference between a "Need" and "Want" as early as possible.
And learn that instead of borrowing money from banks, friends or insurance companies.. Let money work for us, not we work for money..
From this I learned that we should pay off our liabilities as soon as we have the ability and many times the one that is limiting yourself from earning more money is our inability to look at the bigger picture.
Another lesson that I learn from my Mum and myself was "To gain better things sometimes we need to let go of the older things that we are holding on to"..
Our spare room became a mess after my Mum stored all the recycled items inside and left with no space to walk, that room if emptied out could have rented out.. In the same manner I first started investing in stocks 5years ago, from $Golden Agri-Res(E5H) to stocks like $Dutech(CZ4) and eventually investing in $AEM(AWX) and $SGX(S68) one lesson that I learned was holding on to a stock I shouldnt hoping it goes back up to what it was when I first bought and kept falling deeper and deeper.. Instead should have look at better alternatives to earn back the loss
Now I became a better investor and also became better in managing my own finance all because I see what my mother didn't see and I did what my mother did not do..