Money Talks Podcast: How I Made It - Property mogul Ismail Gafoor on making and spending money
A fast food meal should be small change for any CEO. But to PropNex boss Ismail Gafoor, every spending decision is about value. He tells Andrea Heng about his relationship with money in a special two-part series on the Money Talks podcast.
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In this special two-part series, Andrea Heng asks Singapore’s money makers about their relationship with money.
Real estate mogul Ismail Gafoor shares how his childhood shaped his attitude towards money, the number one financial rule he and his wife live by, and why it took years for him to finally enjoy spending money on himself.
Here's an excerpt from the conversation:
Andrea Heng:
It's important for any couple to be on the same page to make sure that finances are on track. What's the one thing that you and your wife have in common when it comes to a financial habit?
Ismail Gafoor:
We have come to an agreement, we will not lend money to anyone ... It (has been) a source of friendships and relationships being broken.
But we say that we can give money to people who are in need and we just bless them with the expectations (of) not receiving it back. But if (we) receive it back, we take it as a blessing. This was even during our earlier days, before we became entrepreneurs.
Money can be the root of the problem ... Because of money, and you feel so attached to money ... your emotions go all over (and) friendships can be ruined.
So this is one agreement that we had, whether it is for my friends or her friends. If (either of us) ever decide to give, we don't need to consult each other if it is within our range of pocket money - for them to help themselves and the family for a week's meal ... no problem. If somebody wants to ask (for) X amount of thousand dollars, we don't have the right to give unless both of us (have) discussed and we think it's okay, then we can. So that's one part of it.
The next part here is this - we never overstretch ourselves beyond our means.
I always felt in order to create wealth ... it's very difficult to save money. But if you commit to (the) right asset class - while we are working harder, the property too (will) keep appreciating with inflation.
Andrea:
I wish I had (this advice) when I was in my younger years!
Ismail:
I just want to say it's never too late. Because a lot of people disqualify themselves (and say) that, "Maybe I should have done it in the past, and now it's not the right time." I would strongly suggest to anyone (that) it really doesn't matter where you are right now.
But pause a moment ... to reorganise. As far as financials, start with a health check. And what is the next step you want to take? And you'll be able to save a fair amount of money, but if you only know where (and what) to cut.
For example, some of us may be paying a monthly mortgage on our property that could be on a higher interest level. And by just taking a proactive approach ... speaking to few other mortgage lenders (or) your own bank, to say that, "Hey, I've been your loyal supporter over the last five years, and I'm paying a much higher interest rate than the new people that you are trying to bring on board. Can I have that similar treatment?" The bank will give it to you. And if the bank doesn't want to give it to you - and there's no reason why the bank won't - you shift to another bank, then you become their new darling.
But you saved money. And it can boost a couple of hundreds or thousands depending on the amount of the loan. This is only one aspect. But when we just pause the moment and look at all our finances, be it a mobile plan ... and our (spending) habits. And if you just reorganise a bit, (you) can have some savings.
