How to not lose money

I’m not sure about you but I’m really glad that I’m living in this digital age. Because, you can find information easily. If you could go back in time to 1940s and tell people that you can get any sort of information in this small device called the phone, they will tell you that you are crazy.

Then again, I guess we could say we really are crazy. “Funny Cats Compilation” is still one of the most watched video. Why watch cats playing with balls when you have answers to the secrets of this universe? I don’t know. (Anyway, I’m one of those crazy people)

Recently, I was chatting with my friends about how to earn more money. I guess this is still a heavily discussed topic in Singapore. Getting a PhD or doing part-time was some of the answers thrown on the table. Curious, I went to google and found out that there are ALOT of answers and suggestions. But why is only 1% of the world so rich even though we have the same amount of information now? Is there something that we missed out? I heard of some people who use financial excel cheat sheet to guide their financial decisions. Reading the quotes of the Legendary Value Investor Warren Buffet, this is what I discovered. (This is not new :P)



I realised that the rich might earn a lot of money. I also realised that they STAY rich because they remember rule 1. It is all about reducing risk and not losing money. I was fortunate to be able to talk to many rich people. They have one thing in common. They either manage risks or they OUTSOURCE their risks.

Bad things happen sometimes, at times we least expect it. There are many risks that we underestimate at great cost. We might know the risk of high interest loans. We might know the risk of investing in the stock market. There is one risk that we greatly underestimate. That is the risk of human capital.



Warren Buffet’s good friend Bill Gates mentioned this. Yes. Have you had the lives of your loved ones being robbed away by a illness or an accident? Life isn’t fair. People face risks such as premature death, disability or critical illness and often face serious financial repercussion. You could be earning 50% ROI on your investment. But do you want to use your hard earn money to pay for your medical fees or bills? Do you want to use your capital to pay for your medical bills? One way not to lose money is to prepare for unforeseen events like these.

Life insurance makes it possible to cushion such financial disaster.

An insurance policy is a promise from the Insurance company to the Insured. It is a contract binding the insurance company and yourself. They will promise a sum of money if something happens to you that might rob you of the ability to work. Given a choice, would you want to use your hard earn money to solve your problems or you would want to use other people’s money? I would choose the latter.

Ask any doctors, they may have saved someone’s life. But he or she might be financial ruined now. Firstly, he might be in debt to the hospital because medical treatment is expensive. I hope that you realised that medical inflation has been on the rise since……. forever.

Secondly. Ever asked yourself if a person is able to work after a stroke? Maybe? Maybe not? Can he still stand the same pressure as before? If he or she is not working, who will continue to pay for his daily meals, rent or living expenses? His savings? His investment returns? His parents? Or if you are his good friend, will it be you?



There are only two rules why someone is not rich. Number 1, he didn’t earn enough money or generate enough returns. Number 2, he lost more money than he earn. Most website will talk about number 1 and how to generate more money. What is absent from our sights is often number two. There are very little websites that talk about how NOT to lose money.

In journey with money, we believe strongly in the 2 rules. While it is important to look at investment, it is also vital to look into insurance. Outsource your risk. Use other people’s money. This is how to not lose money. In the future, we will look specifically into what kind of risk to outsource. This can be done via prudent financial planning (singapore).

Learn more about the Financial Planner.


Bonus: A video to appreciate the sacrifice of our silent heroes. Why wait until something happen before appreciating others? Why wait until it is too late?
PS: You don’t need to understand the words to feel the video.

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