Do not pass GO, do not collect $200.

I often get revelations with regards to making money and the stock market. This is actually quite strange since neither am I making money nor am I invested in the stock market. Thus with my zero track record, let me begin with dispensing financial advice.

A couple of weeks ago, during the early days of my internship, I was scouring the net for interesting news articles to pass the daily grueling 9 hours. I happen to chance upon a news article on Yahoo! which states that people will get rich not by the amount they earn but by the amount they save. It was interesting as it offered the age-old wisdom of saving and it also mentioned that H.I.Ps(high income people) would not get rich as they get too caught up with their lifestyle and incur much debt.

For example, although bankers will earn a fair bit, pretty soon they will splash their cash on luxury goods, BMWs, district 6 condominums and the works. I was even more surprised when I overheard my friends discussing this article, apparently I am not the only person with too much free time in the office.

Just yesterday, I was playing monopoly, some one on one action. I was really excited because I thought my strategy was superior and I would definitely be able to win. After studying finance for 2 years in university, I would definitely be able to beat that arts graduate, I mean hello, my money sense is outstanding. Sufficient to say, 45 minutes later, with a combination of luck and skill, I lost miserably.

My strategy involved conserving money to build hotels and buying properties to break my competitors monoploy. Her strategy was to buy every site she landed on and build hotels at every turn regardless of the upcoming opportunities.

I lost out because her money made money whereas mine did not. For example, although the hotels were a costly financial burden, she managed to make 20% back for every round as I would land in her property. On the other hand, I was unable to extract any additional income from my savings.

Putting the two above stories together, saving money is not enough to get you rich. You need to grab the opportunities that will provide additional income in order to make it even if your investments pose a considerable financial burden. I know this sounds suspiciously like Kiyosaki who basically gives useless advice. More importantly, the question to ask is what can generate income?

There is no definite answer but you have to keep your eyes open. In the past, our parents used to invest in real estate and become landlords. They would pay the down payment regardless of their financial situation and pay off the instalments very slowly. In recent times, everyone looks to the stock market which can earn you an average of 9% annually. Although take note the recent boom has made people and probably you unrealistic about returns.

What more is there? Some people start a side business like a lan shop, spa, internet forum etc. Others allow professionals to invest for them in a variety of things. Every person would have a different situation and thus a different way to generate income. One thing is certain though, committing financially to investments would be the way to go. Keep a lookout for those investment vehicles.

Sorry for the boring post but I hate losing in monopoly, I will flip table flip chair if I lose again, beware the next better player.