The Tale of Two Cousins- Mala and Singa

This is probably an apt illustration of my earlier post, comparing cash versus cashflow, and how financial prudency impacts one's abilities to manage their finances.

Once upon a time in the vibrant Southeast Asia, there were two cousins named Mala and Singa.  Despite their similar upbringing and close family ties, their financial journeys took remarkably different paths.

Mala, the older of the two, had inherited large number of properties, massive acres of land and abundant cash from his ancestors.  This made Mala the envy of many, as his potential for future success and growth seemed limitless, with the abundance of resources that he owned.  It almost seemed like Mala would no longer need to work for a day in his life, as the resources he owned will be able to last him a lifetime.  This, inevitably made Mala a tad too comfortable with his current status and thus less prudent in managing his finances.

On the other side, Singa, the younger cousin, started off with very little in terms of inheritance.  The number of properties, land and cash he received through inheritance is only a small fraction compared to his cousin Mala.  Although Singa did not have the abundance of resources like Mala, but he compensated for his lack by adopting a cautious and strategic approach to financial management, and worked hard to accumulate whatever resources he could in the early years.  Singa understood the importance of making wise investments, diversifying his income streams, delayed gratification and saving for rainy days.

However, as time went on, it became evident that Mala's lack of prudency in his financial management, subpar investments and a lack of careful planning gradually led to a negative cash flow that slowly but steadily eroded his once ample cash reserves.  Despite the wealth at his disposal, Mala struggled with a gradually diminishing mountain of wealth, which subsequently requires him to divest part of his properties and land.  On the flip side, Singa's efforts bore fruit.  Prudent management and shrewd investments resulted in a positive cash flow that grew stronger with each passing year, and his wealth compounded.

As the years rolled on, the cousins' financial situations diverged even further.  Mala found himself grappling with growing debts and a diminished cash reserve.  The negative cash flow led to unnecessary stress and a growing sense of urgency.  Although he had the resources to thrive, but a lack of effective management held him back.  Meanwhile, Singa's well-managed finances and investments continued to flourish.  His positive cash flow allowed for diverse investments in various sectors.  His reputation as a successful investor grew stronger, attracting more successful investors and businesses who wishes to cooperate with him. Singa's success was a testament to the power of careful planning, disciplined financial practices, and the importance of positive cash flow.

As time progresses, the two cousins couldn't help but notice each other's situations.  Mala began to realize the importance of effective financial management and wise investments.  He started to implement changes in his finances, seeking ways to diversify his income streams, and gradually, attract other investors and businesses to cooperate, all of which could rejuvenate his cash reserves.

Conversely, Singa appreciated the significance of his hard work and perseverance in his early days.  He remained vigilant, ensuring that his current successes were not taken for granted.  He continued to innovate, adapt, and make the most of its limited resources.

The tale of Mala and Singa served as a powerful lesson to me about the importance of financial management, investments, and the need for a balanced approach to wealth.  It taught me that even with great resources, poor decisions could lead to a decline, and even with limited resources, careful planning could lead to prosperity.  Most importantly, positive cash flow and diversified income sources is an important part in one's personal financial management (this video says it better than I do, but will this difference last?  This video illustrates it well!).  Barista FIRE, here I come...! 


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