Life in the fast lane was normal for Wendy Kwek. As a successful sales consultant, she made big bucks - earning up to $250,000 in a six-month period. She also spent big, splashing out on big-ticket items like a spanking new, red BMW and renting a condominium apartment in Choa Chu Kang.
Her splurges included jetting to 10 countries in two years, staying at five-star hotels and dropping $2,000 a pop on Gucci bags without batting an eyelid. But her enchanted life took a drastic turn when she was fired at the age of 29 by her company over salary disputes.
With her income down to zero, and outstanding car and home loans to pay, Wendy went broke equally fast. In four months, she chalked up debts totalling some $100,000. The bus became her mode of transport (her car was re-possessed), and she had to move back to her parents' place.
Now 36, Wendy, a business administration graduate from the National University of Singapore, said: "I lived a flashy lifestyle because that was my perception of success. I thought that having a business degree meant my career was secure, but what you learn in school is about managing someone else's business. It's a different ball game when you're managing your own money, for real. You're not logical when you see a beautiful handbag."
And when it rains, it pours. To her utter dismay, her marriage broke down at the same time. She recalls: "Even my so-called friends fell by the wayside. It was the most stressful time in my life."
Not to mention her fear and distress of waking up in the morning to more bills and reminders to pay up.
Climbing out of money misery
Wendy admits that her financial problems were caused by not saving enough. For every dollar made, she'd spend $1.20. "I was rich in liabilities but poor in assets," she says.
Her struggle out of her money trap was a torturous process because she soon had to learn many hard lessons.
Yet Wendy did this - and fast. She cleared all her debts in six months. Instead of wallowing in self-pity, the go-getter looked at ways to stop her financial bleeding. Her first step was simple: She acknowledged that she was broke and had mismanaged her money. She says of her struggle: "For things to change, I had to change myself."
Then she set about tackling the debt that carried the highest interest rates - her credit cards - by taking a $15,000 loan from her family and selling off her mutual funds for another $15,000. She explains: "Credit card debts are killers. I cleared them first because they charge 24 per cent interest a year." The next few debts she checked off were her renovation, car and mortgage loans.
Wendy also took stock of her spending. Before making a purchase, she would give herself three days to decide.
Often, she ended up not buying the item. She puts it this way: "The problem is that many women tend to buy on emotional impulse. When your emotions are high, your intelligence is low."
She cut up her credit cards, sold off her car, moved in with her parents, and even terminated things she took for granted, like her cable TV and Internet services.
Meanwhile, her nasty brush with being fired made her determined not to work for anyone. So, with additional help from her parents, she attended self-improvement seminars on how to be a successful entrepreneur. Talks by the Singapore Women Congress and Action Community for Entrepreneurship also exposed her to successful women, like Elim Chew, owner of fashion chain 77th Street, who shared their mistakes and how they bounced back from misfortune.
Making the first million
Inspired by her new "education", Wendy decided to start her first company, Executive Directions, organising motivational seminars, even while she was clearing her debts in 2001. With just $52, she placed a three-line newspaper advertisement to recruit marketers for inspirational talks organised by other companies. The first seminar was a hit - some 4,000 people attended - and she has not looked back since. So far, the talks have been given by renowned motivational speakers like Anthony Robbins and Rich Dad, Poor Dad author, Robert Kiyosaki.
After three years, she says her company made more than $1 million. Today, she is raking in "millions" (she declined to specify how much) and has expanded to include seven different businesses in six years, including a fine-dining restaurant and an events company.
As for herself, this pint-sized dynamo is back to some of her old habits - she's bought a red BMW and lives in a rented three-bedroom apartment at International Plaza. The difference this time is that she's fully paid up for her car in cash (it's also 10 years old, not brand new), and renting out the other two rooms at home. She has also parked her excess cash in investments like shares and insurance, which are "long-term vehicles to multiply my wealth".
She considers education to be one of the best investments a woman can make - she reckons that she has forked out more than $100,000 on motivational courses and books over the last six years. Too much money, some would say. But she explains confidently: "If you think that education is expensive, try ignorance."
She knows now that when she was enjoying the high life seven years ago, money was a tool for instant gratification. If she wanted something, she would "splurge without thinking twice". But ever since her financial anguish, she says she "respects each dollar I make". And while her life has come full circle, she's learned enough to know not to repeat her mistakes. She explains: "I think I still deserve a good life but my mindset is different now."
Money experts say
Track your money ins and outs
"Make a balance sheet for your own personal finance. Tally up your annual income and outgoings. These include rent, bills, mortgage, insurance policies, taxes, transport and shopping, which will give you a clear first snapshot of your financial situation. If your outgoings exceed your income, you need to cut down. If it's the reverse, that's good and you can set aside this extra to invest for the future." -Tan Su Shan, 39, managing director for Singapore at Citigroup Private Bank
Start small, start now
"It is never too early to start investing for your retirement. Financial preparedness will give you the freedom to choose the lifestyle you desire when you retire. So start small and start now. The longer you wait, the larger the commitment on you. You can start from as low as $100 a month, so there is no reason to delay it till later." -Wendy Lim, 36, head of HSBC's retail bank
Rely on yourself
"Doing your own research rather than relying on hearsay gives you the extra confidence to invest your money. Even if the bets turn out wrong, at least you learn from your mistakes. And don't follow trends blindly. A trend is your friend only when it doesn't bend. So unless you can see the turning points, you can get burnt without knowing it.
-Thio Chin Loo, 38, senior currency analyst BNP Paribas
