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工程技术，地产投资，信仰家园，时尚生活
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Me & My Money Series (Sunday Times)
The kind of overcoming adversity story that we all love. Nothing much to say once again with regards to investments but seems like the brink of bankruptcy really made him turn into a completely different person.
Spa boss' million-dollar lesson
Business failure taught him to value money and appreciate people around him
In 2005, Mr Felix Liau and his wife were facing debts of close to $1 million as his spa business that he had set up with four other partners went into the red.
Mr Liau, now 48, who was the managing director of the company, said: "I was too ambitious and grew the business too quickly. When we decided to fold the business, I had to deal with customers who had signed up for our spa packages, loans for the equipment, bank overdrafts, employees' salaries and supplies."
His wife Sophia Chong, 38, was also helping out in the business. Mr Liau recalled how the third day of the Chinese New Year in 2005, which coincided with Valentine's Day, was one of his life's lowest points.
The stress was immense as the couple had mortgage payments, debt from the failed business and more bills to pay with the arrival of their first child. "But I never considered that episode financial embarrassment," he said. "What is wrong with having debt when the money was used for a business?
"In fact, I needed that downfall to know the value of money and appreciate the people around me."
Most of the $1 million debt was in the form of spa packages that customers had paid for in advance.
"The first thing we did was to run to the bank and try to negotiate terms of payment," Mr Liau said.
He also redeemed all his insurance policies which had a cash value of $20,000, emptied his savings and borrowed some money from his family and friends.
But that business failure did not deter him from re-entering the business world. He and his wife started a spa business again that same year in July. They honoured the packages signed by their customers. Instead of running the business themselves, they found a franchisee, thus earning a fee from the revenue.
Another opportunity came knocking in October that same year which allowed the couple to manufacture spa products such as oils, body scrubs and masks. The franchisee is the sole distributor of their spa products.
With some customers waiving the remaining spa sessions from the prepaid packages, as a goodwill gesture of support, their debt was finally cleared in 2009.
Mr Liau also does freelance landscaping and interior designing to supplement his income. He brings home about $12,500 a month.
He has two daughters, Rui Ni, six, and Rui En, nine.
Q: Are you a spender or a saver?
I'm a saver but I'll spend on things that are of value to my family and me such as educational and adventure-type holidays. Other than that, we usually eat at home rather than at expensive restaurants.
I limit myself to $10 a day on food, down from $50 previously, and carry a big water bottle around so I don't have to spend on drinks.
Q: How much do you charge to your credit cards every month?
I've a UOB credit card for my personal spending, and I don't charge more than $300 a month to it. My family also has an OCBC credit card which is used to buy groceries for the cashback benefits.
My wife and I prefer to pay for big-ticket items through Nets or cash, including our family trips.
Q: What financial planning have you done for yourself?
I have been attending seminars and workshops on how to manage one's money and make it work for you.
But my investments are in these main areas - the spa business and manufacturing as well as property.
Q: Moneywise, what were your growing up years like?
My parents had always taught me to live frugally and save money. Unfortunately, their advice fell on deaf ears.
I didn't know the true value of money in my younger days so I'd splurge on branded apparel, dine at expensive restaurants and buy things I didn't need like furniture.
Even after I was married, I continued these bad spending habits until my elder daughter was born.
Q: How did you get interested in investing?
We believed that buying property was akin to forced savings.
Q: What property do you own?
On top of the four-room Housing Board flat, we bought a three-bedder unit at Changi Rise in 2003 which is rented out so the rental income covers the mortgage repayments.
After our debts were cleared in 2009, we invested in a 1,087 sq ft industrial unit in Ubi in 2010 for a few hundred thousand dollars. The unit is leased out.
As for overseas properties, we have two condo units in Iskandar Malaysia which we bought in 2012 that are not completed yet. We also bought an apartment in Kuala Lumpur, Malaysia, and a two-room apartment in Melbourne, Australia.
My daughters may use the Australian home if they study there in future. While we have made downpayments for these three overseas properties, the monthly mortgage repayments will kick in some time only in 2016.
Q: What's your retirement plan?
Both my wife and I can be considered to have retired from our jobs but not from our life as we spend a lot of quality time with our children.
We continue to run a business and I take on freelance jobs because we love it, not because we have to. Ultimately, I hope to stay in Iskandar and enjoy life as a gardener.
Q: Home is now...
A four-room simplified HDB flat in Simei. This is the smallest among the range of four-room public housing offerings.
Q: I drive...
A second-hand Volkswagen Touran which is good enough to ferry my family around. I'll purchase only second-hand cars.
WORST AND BEST BETS
Q: What is your worst investment to date?
I'd have to say it was an investment-linked insurance policy. It's the kind of product where an agent promises to monitor it for you but honestly, I believe he is more focused on his commission than my interest.
I lost about $11,000 which was drawn from my Central Provident Fund for a policy which I held from 2003 to 2010.
Q: What is your best investment to date?
If you're referring to best investment for my personal development, it would have to be the investment seminars and workshops which I have been attending.
Money-wise, I'll have to say it's my revamped spa business under a new model and branded under the Bali Tangi name. I've always believed that every business, if managed well, can be sold for a much higher return. The revenue from spa products, royalties, licensing of trademarks and management fees crossed $1 million last year.
rjscully@sph.com.sg
Spa boss' million-dollar lesson
Business failure taught him to value money and appreciate people around him
In 2005, Mr Felix Liau and his wife were facing debts of close to $1 million as his spa business that he had set up with four other partners went into the red.
Mr Liau, now 48, who was the managing director of the company, said: "I was too ambitious and grew the business too quickly. When we decided to fold the business, I had to deal with customers who had signed up for our spa packages, loans for the equipment, bank overdrafts, employees' salaries and supplies."
His wife Sophia Chong, 38, was also helping out in the business. Mr Liau recalled how the third day of the Chinese New Year in 2005, which coincided with Valentine's Day, was one of his life's lowest points.
The stress was immense as the couple had mortgage payments, debt from the failed business and more bills to pay with the arrival of their first child. "But I never considered that episode financial embarrassment," he said. "What is wrong with having debt when the money was used for a business?
"In fact, I needed that downfall to know the value of money and appreciate the people around me."
Most of the $1 million debt was in the form of spa packages that customers had paid for in advance.
"The first thing we did was to run to the bank and try to negotiate terms of payment," Mr Liau said.
He also redeemed all his insurance policies which had a cash value of $20,000, emptied his savings and borrowed some money from his family and friends.
But that business failure did not deter him from re-entering the business world. He and his wife started a spa business again that same year in July. They honoured the packages signed by their customers. Instead of running the business themselves, they found a franchisee, thus earning a fee from the revenue.
Another opportunity came knocking in October that same year which allowed the couple to manufacture spa products such as oils, body scrubs and masks. The franchisee is the sole distributor of their spa products.
With some customers waiving the remaining spa sessions from the prepaid packages, as a goodwill gesture of support, their debt was finally cleared in 2009.
Mr Liau also does freelance landscaping and interior designing to supplement his income. He brings home about $12,500 a month.
He has two daughters, Rui Ni, six, and Rui En, nine.
Q: Are you a spender or a saver?
I'm a saver but I'll spend on things that are of value to my family and me such as educational and adventure-type holidays. Other than that, we usually eat at home rather than at expensive restaurants.
I limit myself to $10 a day on food, down from $50 previously, and carry a big water bottle around so I don't have to spend on drinks.
Q: How much do you charge to your credit cards every month?
I've a UOB credit card for my personal spending, and I don't charge more than $300 a month to it. My family also has an OCBC credit card which is used to buy groceries for the cashback benefits.
My wife and I prefer to pay for big-ticket items through Nets or cash, including our family trips.
Q: What financial planning have you done for yourself?
I have been attending seminars and workshops on how to manage one's money and make it work for you.
But my investments are in these main areas - the spa business and manufacturing as well as property.
Q: Moneywise, what were your growing up years like?
My parents had always taught me to live frugally and save money. Unfortunately, their advice fell on deaf ears.
I didn't know the true value of money in my younger days so I'd splurge on branded apparel, dine at expensive restaurants and buy things I didn't need like furniture.
Even after I was married, I continued these bad spending habits until my elder daughter was born.
Q: How did you get interested in investing?
We believed that buying property was akin to forced savings.
Q: What property do you own?
On top of the four-room Housing Board flat, we bought a three-bedder unit at Changi Rise in 2003 which is rented out so the rental income covers the mortgage repayments.
After our debts were cleared in 2009, we invested in a 1,087 sq ft industrial unit in Ubi in 2010 for a few hundred thousand dollars. The unit is leased out.
As for overseas properties, we have two condo units in Iskandar Malaysia which we bought in 2012 that are not completed yet. We also bought an apartment in Kuala Lumpur, Malaysia, and a two-room apartment in Melbourne, Australia.
My daughters may use the Australian home if they study there in future. While we have made downpayments for these three overseas properties, the monthly mortgage repayments will kick in some time only in 2016.
Q: What's your retirement plan?
Both my wife and I can be considered to have retired from our jobs but not from our life as we spend a lot of quality time with our children.
We continue to run a business and I take on freelance jobs because we love it, not because we have to. Ultimately, I hope to stay in Iskandar and enjoy life as a gardener.
Q: Home is now...
A four-room simplified HDB flat in Simei. This is the smallest among the range of four-room public housing offerings.
Q: I drive...
A second-hand Volkswagen Touran which is good enough to ferry my family around. I'll purchase only second-hand cars.
WORST AND BEST BETS
Q: What is your worst investment to date?
I'd have to say it was an investment-linked insurance policy. It's the kind of product where an agent promises to monitor it for you but honestly, I believe he is more focused on his commission than my interest.
I lost about $11,000 which was drawn from my Central Provident Fund for a policy which I held from 2003 to 2010.
Q: What is your best investment to date?
If you're referring to best investment for my personal development, it would have to be the investment seminars and workshops which I have been attending.
Money-wise, I'll have to say it's my revamped spa business under a new model and branded under the Bali Tangi name. I've always believed that every business, if managed well, can be sold for a much higher return. The revenue from spa products, royalties, licensing of trademarks and management fees crossed $1 million last year.
rjscully@sph.com.sg
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