An article by GenX @ http://www.GenXGenYGenZ.com
In my previous, now defunct main blog GenXGenYGenZ.blogspot.com (google deleted it because they said it was generated by a non-human and now it’s online again but it does not belongs to me!!!) I had several articles that are now lost forever. One of them was about burning away our children’s future inheritance and another about my son burning my money away by flying to and fro from USA twice a year and as such I decided that I should get my wife a black caviar Chanel handbag before all my children burn away all my money.
Today, I shall republish the article on Spending Children Future Inheritance here again.
Because of global peace (no World War III) for more than half a century, many of the Generation X are able to accumulate wealth that has continuously grown over time because of a phenomenon called INFLATION. If the world had stuck with Gold as a form of money instead of printing endless paper money which comes from the same source as toilet paper, many people would never see their wealth accumulate in an exponential rate during their lifetime or become millionaires.
Most people prior to Generation X in Malaysia worked hard for their money and actually only needed money for food and a roof over their heads as there was nothing much to do after sunset (that’s why the older generations produced children every other year because they relied on nature whereby breast-feeding was a natural form of contraceptive). Owning a car was a luxury then and taking public transport and “beca” (rickshaw) was the norm. And for these people, asking them to go have a drink at Starbucks today is a big no no and they would most probably vomit blood if they found out they just consumed a non-alcoholic drink which cost more than RM20. But these older people who have saved their money and invested wisely are by today’s standards considered rich where their stocks would probably be worth more than 100 times their initial capital and their properties worth much much more.
But, the sad thing is, many in Generation X and older generation, do not know how to spend their accumulated wealth while they are still alive and leave it to their children or grandchildren to burn away after they are 6 feet under. Later, observing from the spirit realm how their offspring are enjoying and having fun burning their inheritance on material stuff, the dead only realize what a fool they had been and I bet they wished that they can dig themselves out of their graves and cut short their offspring’s happiness.
In my previous article I started off by telling a true story of a rich developer friend about what his teenager son said; and, I shall now repeat it here as this is how Spending Children Future Inheritance came to my realization.
One day a rich developer was vetting the Final Contract Sum of his condominium project and was looking worried when it came to the Variation Orders (VO) claims.
Son: Dad, you look stressed out, what’s wrong?
Rich Man: I am studying our Condo Project Final Contract Sum where my contractor has made many VO claims. They are claiming quite a substantial amount on VO.
Son: What is VO?
Rich Man: It is called Variation Orders. When I first signed a contract for our condo project, both the contractor and myself agreed on a particular sum that the contractor complete the project on an agreed scheduled time frame based on specifications outline in the contract. This sum is called the Contract Sum. During the construction period, the specification may change. Usually I will change the specification of materials used to a cheaper one during construction to that stated in the Contract, and as such I will get a Negative VO and the Final Contract Sum will decrease, which means we get to make more money from the project.
Son: Yeah, dad you are really smart. We should have more Negative VOs.
Rich Man: However, sometimes beyond my control I will be billed for Positive VO, which means we have to fork out more money and therefore the Final Contract Sum increases. For this Condo Project, I wanted to save some money on consultancy fees and therefore engaged some new consultants which I have never worked with and these jokers missed out many items in the contract which are required to complete the project. And as such, the contractor had a field day making tons of Positive VOs!!! I am now having a headache trying to justify the claims so that I can go back to the contractor and negotiate with them.
Son: In that case dad, you better not simply spend away my money and make sure you cut down the Positive VO claims as much as you can!!!
When I heard the above story about 5 to 8 years ago, it hit me what the rich developer was trying to imply. He and I agreed that whatever we saved and don’t burn away in our short time on planet earth eventually belongs to our children and as such it was not wrong for the son to say that his dad was burning his money in advance!
Like I started off in this article, many of us from the older generations work hard and practiced spend thrift ways and would only burn away money on necessities. If one does not gamble or spend unnecessarily on things like cars and china dolls or other temporary happiness factors, AND invest wisely and not go for quick rich schemes, the probability of one living and owning a terrace house in Klang Valley’s prime locations would most likely die a ringgit-millionaire today.
On the other hand, some GenXs born in the later years (including myself) and GenYs are exposed to easy credit designed in the Western World and brainwashed by advertisements into thinking that we find happiness by burning away money on gadgets, holidays, expensive restaurants, owning a particular car, etc.
I suggest you click on links below and read my articles to understand where I am coming from and a little more about today’s human unlimited wants for temporary happiness i.e. shiok sendiri.
Anyway, the older generations and the “smarter” ones that do not burn money on material stuff find joy in seeing their wealth/money grow from day to day (applies to stingy people too). Some of these people would say that they want to leave some wealth for their future generations so that they can have a better life. This is a very reasonable behavior because our basic instinct is to protect our offspring.
In today’s world, our economy has been engineered by the western world where growth comes from spending and more spending and designed in such a way that inflation is inevitable, whatever cash we leave for our future generations would eventually be worthless with time if not burned away (however, this is not the case for land or other similar wealth preservation assets – that is, as long as the world does not experience another world war or is invaded by aliens or attacked by Godzilla).
Now, besides your future generations burning up your hard earned money, the fact is the third and subsequent generations would not even appreciate your generosity or even thank you for it. Don’t believe me? When was the last time you went to your great-great grandfather’s grave to thank him for enabling you to be born into this world? And for those of you who married late in life, your grandchildren which you seldom bonded with would most likely also not appreciate your kindness because to them it’s their dad (your son) who gave them protection and happiness.
And here is a fact that one seldom talks about. Your child only has half of your blood. Your grandchildren a quarter of your blood and your great grandchildren one eight of your blood in their veins. In other words, by the 3rd generation, you are leaving your money to other people’s blood line i.e. your blood is the minority running in your grandchildren where three other people’s blood summed up is the majority.
SPENDING CHILDREN FUTURE INHERITANCE
So the question comes to – why not stop being stingy or a scrooge and burn away some of our money (i.e. your children’s future inheritance) together with our loved ones including our parents and children? With this action of spending your children’s future inheritance, everyone gets to share and experience some temporary happiness right this moment while we are still alive and kicking especially when one has reached the level of “Chiak Bui Liow” (and thus not having to worry about retirement funds to survive). To learn more on definitions used in my article, please click here.
Like I have repeated over and over again in my articles (especially at my deleted blog named Ringgit Wise Fool), what we treasure most when we are old and useless (because our legs are weak) are happy memories. Seeing our wealth growing by the day is no longer a priority because we eventually accept the fact that we cannot take our money with us to our graves (in my case, since I am a Taoist, I have instructed my wife to burn stacks off hell notes where each note shall have no less than nine zeroes after the first digit and also several huge bungalows, fancy sports cars and plentiful of beautiful playmates – oops, I mean maids) and I have pointed out in the above paragraphs that your future generations would not give a damn about you.
In my previous article titled, I mentioned that before I had my first million, I would only buy my wife Guess handbags. She had to suffer in silence for many years before I bought her a Louis Vuitton handbag. Then sometime in 2012 while I was napping, she mentioned something about wanting black caviar so I say okay not knowing that she meant she wanted a Chanel Jumbo Black Caviar Handbag!!! Who would have thought that people would name their handbags after food!!? When I found out how much a Chanel handbag cost, I was like no way am I wasting more than RM10K on a stupid handbag which does not benefit me in anyway but only giving my wife temporary happiness. But that changed sometime during the 4th quarter of 2012 when I got pissed off with my eldest son for booking his air ticket last minute to fly back from USA as he wanted to wait and confirm the date of his last exam to maximize his stay in KL instead of booking the air ticket months ahead whereby he would have gotten a ticket at a much lower price. That is when I realized my eldest son who was flying to and from USA twice a year, while he was doing his undergraduate in a TOP 10 USA Engineering Uni, was burning more money than what a Chanel handbag cost; and a Chanel handbag can last for years.
So I thought to myself, why the heck should I deprive my darling wife (whom I love more than anyone on earth) from experiencing the joy of owning a Chanel handbag? I might as well spend away my children’s inheritance on my beautiful wife who have shared the bittersweet of life with me instead of having my son(s) spending my money by buying a handbag for his wife when I go to the next world or worst still investing on his girlfriend who may eventually be someone else’s wife and that would definitely freak me out in my grave. So when we were in Hong Kong/Macau for a holiday in late 2012, I surprised my wife by taking her to the Chanel Store in Hong Kong and allowed her to purchase her first Chanel Black Caviar handbag and she chose a Limited Edition handbag (they call it seasonal but limited edition sounds nicer, hahaha). There is a reason why I bought the Chanel handbag for my wife in HK – it is so that every time both of us see this particular bag, it will bring back memories of us holidaying with our children in Hong Kong.
My eldest son graduated in May 2013 and I flew to USA to become a slave by carrying his luggage and 2 guitars. Then while back here in Malaysia, at the very last minute he decided to attend an Ivy League Uni in USA for his Masters degree and it will cost me a fortune! But, then again he is the one who is burning his future inheritance away and he can’t blame me if he gets pennies in the event I don’t have much money left for him; and, moreover his blood consist 100% of my wife and my blood only. And later I found out that he has assisted me to burn up my money faster by buying another 2 new guitars since he left for the North East USA in August 2013!!!
After my son obtained his Masters Degree in Engineering from the Ivy League Uni in 2014, he applied to a World’s Top 50 Medical School in Australia to pursue a Doctor of Medicine (M.D.) degree; and he got accepted into the program. I tell you, this eldest son of mine is damn freaking smart, by going to Medical School, he gets to continue enjoying life without needing to work for another 4 years! In 2016, he will be in his second year of Medical School. Looking from another angle, my son is not really spending my money away on his education but actually spending his future inheritance for a good cause.
I am sure that you know one or two people who inherited lots of money from his scrooge dad and now are having the time of his/her life; whereas he/she was always complaining about his dad not loving him/her when he was alive. Do you want to be in that situation where your child feels that he/she is deprived of your love (by you not buying him/her the latest gadget or a car or taking them for holidays or to nice restaurants or whatever) while you are alive and they happily go burn your hard earned money with someone else after you die and not being grateful to you?
After I stopped being a salaryman because of my eyes, I had a lot of time to think about life and came to realize that life is short and there is no such thing as long term happiness. Every one of us will eventually experience some kind of illness and maybe suffer a bit before we die, e.g. cannot shit because our bowel can no longer function or cannot eat because we don’t have any teeth left in our mouth. Only the truly blessed ones are free from illnesses and get to die in their sleep without experiencing any pain while being happy in dreamland. I truly think that me getting glaucoma and being almost half blind is actually a blessing in disguise as now I get to spend more time with my children whereas I only see them on Sundays when I was working. And best of all I now practice spending my children’s inheritance to gather as much good times as I can have with my children so that I have endless happy memories for my old age; because, I know for a fact that my grandchildren’s off springs would not appreciate me or give a damn about me.
The action of spending your children’s inheritance only applies when it does not eat into your retirement fund which is required for you to survive until the day you die. It is about your wealth that you are unable to bring with you to the grave, i.e. “chiak bui liow“, and optimizing your wealth while you still have the time on planet earth by gaining as much fond memories for your old age instead of having your future generations burning your hard earned money and you missing out on the good times with them.
And if you have no children and leaving behind your assets to your nieces or nephews, I guess you better go happily spend your money as much as you can while you are alive instead of handing it to someone else’s children whose children will never visit your grave. And for those of you who plan to leave all your assets to charity after you die, let me tell you that you should do it now (as such, ensuring that the money is well spent on those intended for instead of leaving it to someone else to manage your hard earned money) and earn some good karma points because you ain’t going to get any karma points after you die.
And two of my readers mentioned in LYN that they were influenced by my previous article on Spending Children Future Inheritance…. one now takes his children overseas for holidays (to have fond memories later in life) whereas another is living a more relaxed and pleasurable life by spending his money on China Dolls (instead of his children having the fun burning his money when he is no longer around), hahahahahaha.
As for the GenY, I guess you should start saving/invest your hard earned money instead of being in debt by opting for 0% installment plans or other forms of easy credit (more importantly don’t go shopping online but go for FREE window shopping at the malls and also go for cheaper coffee instead of going to Starbucks) so that you too will have the luxury to spend your children’s future inheritance later on in your life.
And coming back to Prada, Louis Vuitton, Dior and Chanel classic timeless handbags, the prices keep increasing just like Rolex watches because of the phenomenon called inflation, like I mentioned earlier. So if you get a classic piece (i.e. non seasonal model or limited edition), the probability of the same classic model being sold in 10 years time at the same store you bought yours is very high. And in a decade’s time, the same classic handbag you bought may cost twice as much and it will bring a smile to your face knowing that you bought yours for less than half the price, it’s like you get a 50% discount and we know these classic pieces are never sold at discounted prices (same thing applies to Rolex watches).
An article by GenX
Click here to read my article Burning your Fixed Deposit and Earning FREE Gold Bars – a soon to be best seller fiction e-novel 🙂