Wealthy and wise

When Montanee "Jo" Tantisook went bankrupt years ago, she had only Bt3 in her pocket. She did everything she could to get through the crisis. She logged on to banking and financial websites and read as many books as she could, but all the information she found was in English.

So she decided to write a pocketbook in Thai with the aim of educating young readers, in the hope that they wouldn't make the mistakes that she did. Her book is "Ngern Ruang Yai Tee Rong Rian Mai Kei Sorn" (Money: The big subject which was never taught in school).

"Education and school didn't make me smarter when it comes to spending," says Jo. "In school I was taught to be economical, but never told 'how'."

Money myths

It starts with one's attitude. "There is nothing in the world to solve your money problems if you don't change your concept of money," says Jo.

Many people have the wrong concept about money. Some say money is hard to find and being rich comes from merits in one's past life. They are wrong, she says.

"Money is easy to find but hard to manage. And being rich is a result of moneymaking skills and management. If other people can be rich, so can you."

Most Thai women, says Jo, believe that men are smarter at managing money, so they let their men control and manage all the expenses - and that shouldn't be so.

"It's best to manage it together. If you let just one person take care of the money alone, if he dies, you won't be able to do it on your own."

Making a lot of money won't necessarily make you rich. Spending it wisely, knowing its value and investing wisely, will.

If you spend more than you earn, you'll go bankrupt. If you have Bt100 and spend it all, you'll be poor. If you spend Bt90, you'll be middle class. If you spend Bt70-80, you'll be rich. And if you spend Bt50, you'll be a millionaire.

Wise saving and investment

Some people don't have money in the bank even though they've worked hard for many years.

"Why are some people richer than you are, even though you earn more than them? Think about it."

Jo suggests you should save 20 per cent of your income - 10 per cent for your long-term financial security and 10 per cent for emergency expenditures. When you make this a habit, you can then start trying to save another 10 per cent for investment.

"When you invest, don't expect too much profit in return. It'll make you greedy and want to invest more until you've got nothing left. Full investment without thoroughly thinking it through is more like gambling and you'll soon go bankrupt," she says.

Before you make an investment with anyone, be prepared for losses. And don't trust any business partner who says he knows how to develop a good business with big profits.

"You must make sure you can manage your money and business and always have a proper business plan," she says.

Loans

Jo doesn't back the idea of loans. And she doesn't agree with the government that poverty problems can be solved by lending money to the poor.

"It'll make people end up with more debts. Thai people will be financially secure if the government builds them careers and teaches them to manage money."

Many people have the habit of overspending because they can buy now and pay later by using a credit card. Some have three or four credit cards and they borrow the money from another creditor to pay off the cards. And that makes them heavily indebted.

"I was like them once. I used to buy everything I wanted. But now I buy what I need. I try to save money and pay off the loans," she says.

"Try to negotiate with the creditors on how much you can pay back. You should spend only 25 per cent of your income on your debts."

When you are in debt, you have to pay and there is no way you can get away with it. Jo recommends that you first cancel all your credit cards and start clearing the card with the least amount of debts.

After that, don't borrow again and you will be free.

"Our spending can be compared to our stomach size. The more you eat, the bigger your stomach gets. And your desires will continue without limits."

By Kwanjai Buttana