Businessman and investor...at 18

The idea of just leaving money in passive investments in hopes of it growing cuts no ice with teen entrepreneur Wong Li Hong.

The Year 6 Raffles Institution student feels his money should work hard for him. This led him to start an online business with pal Lemuel Low, 18, early this year.

Their site, WhatsNext.sg, aims to be a one-stop guide outlining what locals and tourists can do in Singapore.

"Lemuel and I noticed the lack of real guides for events and service providers in Singapore, as opposed to the large number of business directories which feature shop addresses but little else," says Li Hong, 18.

They put $1,000 into the project at first. It took a year to set up before they launched the online platform that allows two-way communication between shop owners and users. They have now invested about $3,000 in total.

Instead of asking their parents for extra money, Li Hong and Lemuel dug into their savings to ensure they were responsible for the project.

Li Hong gets $450 a month as pocket money and said that it was more than enough to cover his expenses - mainly food, transport, half his monthly mobile phone bill and books.

His allowance also covers new gadgets, such as computers or mobile phones.

The site makes money through advertisements and recently broke even.

Li Hong's parents, who are in their 50s, run their own businesses in real estate, food and beverage, and packaging. His 20-year-old brother is studying overseas.

He said his entrepreneurial spirit grew and was influenced by his parents, who started a business together over 20 years ago.

They were conscious about not wanting him to follow in their footsteps and hoped he would take on a less risky career path such as being a lawyer.

But he developed a keen interest in running his own business as he got interested in what they were doing throughout his growing-up years.

The teenager added that his parents have been supportive of his venture.

Q: Are you a spender or saver?

Rather than following a rigid budget, I believe in being flexible but always making sensible purchases.

I believe that good businessmen should be both wise spenders and savers.

Q: How much do you charge to your debit or credit cards every month?

I own two debit cards, one for personal expenditure and the other for the joint account which I have with my friend for our business.

I use my cards whenever possible because the online records make it easy to log my monthly spending. I typically charge $200 to my personal card every month.

Q: What do you invest in?

I have invested in gold since 2010, when I was looking for a first alternative outlet for my savings.

This was largely influenced by my parents who advised me against leaving my savings in the bank. But instead of speculating in the commodity, they told me to keep it for a longer term.

I invested an initial $250 through an account my parents set up for me and have gradually added to that amount since. I've about $2,000 in gold now.

Even though gold prices have fallen recently, I view this as a long-term investment and will continue this in the future.

Today, I invest mainly in my own business.

Q: Moneywise, what have your growing-up years been like?

I developed an outlook on money management under my parents' influence.

When I was eight or nine, I used to spend all my pocket money at the toy shop near my old house. I wasn't conscious of my spending and thought that whatever money they gave me could be spent.

It was around that time that they made me keep track of all my purchases and jot down what I spent in a book.

Despite their belief in the virtue of saving, my parents never dictated how my allowance ought to be spent.

After I turned 12, my parents also made it clear that I would not be getting anything above my monthly allowance.

They pay for my school fees and holidays. Other expenses come out of my own pocket.

That taught me, albeit by force, that if I wanted more to spend, I needed to earn it on my own.

Q: How did you get interested in investing?

I believe in two types of investment - investment in passive income sources, and investment in personal projects which we build ourselves.

The former is only a method for financing the latter, which has always been far more appealing to me.

I have always been fascinated by functional systems - from cars to computers to well-crafted novels.

Successful businesses are the most fascinating of systems because they function by interacting with humans and interpreting their behaviour.

I thus developed a passion for investing in and building personal businesses, which has largely shaped my path since.

Q: What's the most extravagant thing you have bought?

Extravagance lies not in price but in value, so that would have to be the suit I had tailored last year for about $1,000.

Q: Home is now...

A four-room condominium unit in the Keppel Bay area where I live with my family.

rjscully@sph.com.sg

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