http://www.straitstimes.com/archive/...happy-20120909
You don't need a car to be happy
Karl Chong became a millionaire after selling his group buying site to Groupon
Published on Sep 09, 2012
Entrepreneur Karl Chong considers property a conservative investment. There is a sentimental attraction too: "I really liked Monopoly as a kid and the idea of owning something that people lived in." -- ST PHOTO: LIM SIN THAI
By Joyce Teo
Selling the shopping website Beeconomic to discount deal site Groupon in late 2010 may have landed entrepreneur Karl Chong a hefty gain, but he reckons the money is not the most important thing.
Mr Chong, 31, who co-founded Beeconomic with his brother less than a year before the sale to the American firm, says he likes the process of making money more than the money itself.
He has been tight-lipped about the sale price of Beeconomic although it has been reported as being US$24 million (S$30 million).
Now the chief executive of Groupon Singapore, Mr Chong notes: "Money can buy a tonne of toys but what's important is knowing the level of happiness that you can achieve from buying such materialistic objects.
"I am a big believer in living holistically. You don't necessarily need that expensive sports car or that watch to live a happy life.
"What makes me happy at Groupon is that we are building an awesome company and growing the people that I have."
Mr Chong was six weeks away from graduating with a master's degree in finance at Insead when he quit his studies.
"I didn't want to wait a single day to set up Beeconomic," he says.
Beeconomic was a Groupon- clone start-up.
Beeconomic has now become a case study at Insead and Mr Chong goes to the campus and other local universities to talk about his entrepreneurial journey.
"I want people to know what I did was very achievable. You just need to fight hard," he says.
"I was literally knocking on doors and getting rejected. You need to pick yourself up and have a strong belief in the product that you're trying to promote."
He believes that there is no shortcut to success, yet he has always wanted to be an entrepreneur because he wanted to "take control of my destiny and be in a position to enjoy my life".
Mr Chong, an Australian who worked as an investment banker for five years in New York, is married to Ms Megan Lucas-Chong, an American who was an art museum educator in New York. They have no children.
Q: Are you a spender or saver?
I spend my income on things that make my family and me happy, but I'm aggressive at growing my capital through building businesses and investing in a mix of safe and risky assets.
I spend mostly on travelling and ensuring my parents live a relaxing and fulfilling life. I take care of their insurance and travel needs, for instance.
For now, my wife and I want to visit a new country or city every month. In the past three months, we have been to three different countries.
Q: How much do you charge to your credit cards every month?
A credit card is a necessary tool at times, especially during travel.
It is important to manage your charges, however, so that you don't accumulate debt and end up paying a lot more in interest fees.
Debt is an inevitable outcome for many people; it is more important to oversee and manage the debt well and not over-extend yourself.
Q: What financial planning have you done for yourself?
I spend the income that I generate from my job but I have invested the capital that I have built - the proceeds from the sale of Beeconomic.
From my investment banking days, I learnt some nerdy spreadsheet skills. So I now keep a spreadsheet that lays out the split in my investments between conservative and risky asset classes and the returns generated.
I set aside about half of my capital for property investments, 30 per cent for starting new businesses, 10per cent for shares, commodities, structured products and derivatives in Singapore, and the remaining 10 per cent in a US-denominated cash account.
I consider property a conservative investment. I saw how my parents could build wealth from property investments, and I really liked Monopoly as a kid and the idea of owning something that people lived in.
Q: Moneywise, what were your growing-up years like?
My younger brother Christopher, who co-founded Beeconomic with me, is completing his law degree.
My father John Chong was one of the founders of The Singapore Monitor, a daily tabloid that closed in 1985, while my mum, Kim, was a magazine journalist.
They have a rags-to-riches story. They migrated from Singapore to Australia as journalists and lived pay cheque to pay cheque.
They saved up enough money to set up their printing business in Sydney and worked extremely hard seven days a week.
They also saved enough to buy more property and to provide a private education for my brother and me.
They always taught my brother and me how to do more with less and to appreciate that money doesn't grow on trees - you need to work hard for it.
Q: How did you get interested in investing?
I bought my first shares when I was 14, using my parents' account.
I would read the financial news to get stock tips.
I was greatly inspired by my grandfather, who was an investor.
He was an accountant and he introduced me to investing in shares. I thought the idea of owning a part of a company was cool.
For my first investment, I bought $1,000 worth of Colonial State Bank shares. It then got acquired and I made $300.
When you are a kid, it was like: Oh my God. It was awesome and it became a bit of an addiction.
I then went from shares to trading oil derivatives when I was in high school.
Q: What properties do you own?
I bought a residential apartment in New York City with two bedrooms and a study when I was 28. It cost me slightly more than a million and it is now being rented out at a 3per cent yield.
I also recently bought a commercial property in Chicago as I know the US market well.
It is a carefree asset that nets me a yield in the realm of 8 per cent to 10 per cent.
Q: What's the most extravagant thing you have bought?
I pay for cool experiences. And the best was my wedding last September in Brooklyn Botanic Gardens, New York. The wedding reception for 120 guests cost me US$60,000. It included an open bar.
Q: What's your retirement plan?
My plan is to build a national brand of high-end retirement homes when I'm still young and then live in one of them when I'm old.
Q: Home is now...
A rented two-bedder at Reflections at Keppel Bay here.
Q: I take...
Cabs and the MRT.
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Originally Posted by kane
