Personal Money Tips

It has been a while since I posted something due to a very hectic schedule. Last night to relax, I switched on and caught a portion of Indecent Proposal. It is 1993 movie, just that I’ve never had the chance to watch it. Starring Robert Redford and Demi Moore, it is about a rich businessman making an Indecent proposal of having a one night stand in exchange for 1 million dollars. The plot?

Childhood sweethearts David and Diana Murphy (Harrelson and Moore) a married couple, travel to Las Vegas, hoping to win enough money to finance David’s fantasy real estate project.

Initially winning and off course then losing all of their savings, they met billionaire John Gage (Redford). John becomes smitten with Diana and offers David one million dollars to spend a night with her. David and Diana decide to accept the offer, and a contract is signed.

Although he had hoped to forget the whole incident, David grows increasingly insecure about his relationship with Diana, consumed with a fear that she remains involved with Gage. Because of this tension on their relationship, David and Diana separate. You can get the full detail else where.

When the film was shown, it drew many critics and sometimes funny discussion about the things people would do for money. For example, would you kill someone you don’t know, sleep with someone etc. In the real world, there are a few reports of similar plots. But I find the value people place on money is far more than it really should. I mean, sure you wanted a dream house, but to pimp your wife? And that the wife would agree to such an arrangement in the first place. High class prostitution I call it. Second, a person like John Gage can have (almost) anyone he chooses, yet he choose another man’s wife!

The bible in 1 Tim 6:9 says, But people who long to be rich fall into temptation and are trapped by many foolish and harmful desires that plunge them into ruin and destruction.

Nothing wrong with having money, even lots of it, as I’ve always maintained. Don’t let money drive you to foolish and harmful desires.

    “There comes a time in everyone’s life when
    they realize they have to plan for their
    financial future. Those who realize this at
    an early age are well set for a life of
    stability and financial freedom.”

            * Mark W. Miller *

Someone sent me this quote today. I like the first part that basically says the time will come for everyone to realize the need to plan for their financial future, but just because you start early, it doesn’t mean you will be set for financial stability or financial freedom. Why? There are plenty of examples to show. Let’s forget about rock stars, actors and professional sportsmen that earned big bucks and then lose it all. They might not be the best educated about their finances, and sometimes have bad advisors around them. Even those in business have their share of bad luck.

Look at Charles Michael Schwab. Started out as a stake driver for Andrew Carnegie’s steelworks and eventually ran the second largest steel company. Together with JP Morgan, he arranged one of the biggest business deal ever at that time. A company worth US 1 billion in the early 1900s. A multimillionaire industrialist, Charles Schwab died a bankrupt.  His high living and the stock market crash of 1929 eventually wipe him out his fortune. At his death, he was over US$ 300,000 in debt. But had he lived a few more years, his fortune might have been restored. A case of bad timing?

On the other hand, financier JP Morgan did well. Starting of as an accountant, along the way he build his personal wealth. Along the way, he acquired and/or financed many interest including shipping interests, coal mines, insurance, and communications industries. JP Morgan even provided financial backing for the U.S. government itself! Imagine backing an 1895 government bond issue of $62 million dollars, and in 1901 he secured a $50 million dollar American issue for the British war loan. He remain America’s foremost financier throughout his life. Today, his name is recognized as one of the top and most powerful financial institutions around the world.

Perhaps the quote have some truth in it.

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