THE benefits of insurance were brought home in distressing circumstances for Mari Yamada when her mum suffered a stroke and was bedridden for 18 years.

Ms Yamada, 56, a conference interpreter and entrepreneur, was 31 at the time and the experience had a major impact on her.

'Buying proper insurance helps,' she told The Sunday Times. 'Thankfully, my parents purchased illness policies and my mum could rely on my father's teaching pension even after he died. If not for the insurance and pension, my sister and I would have become bankrupt from the medical bills.'

It is easy to see how medical bills can cripple a family - Ms Yamada's mother spent the last six years of her life in a nursing home at the cost of $4,500 a month.

So it is no wonder that insurance is a central component of Ms Yamada's financial plan.

Not only is she insured on her life, she also has a hospitalisation and illness plan as well as a travel policy to cover her numerous overseas trips.

Married to Australian businessman Peter Hollings, 59, Ms Yamada has a 31-year-old son and two grandchildren.

She spends several days a month at conferences doing interpretations and gets paid US$1,000 (S$1,466) a day.

Besides her job as an interpreter, she is also a director of Singapore fashion house Irene's Creation and its photography arm I-Gallery. The relationship developed in 2005 after her son took up a wedding package with the boutique.

Ms Yamada has invested a six-figure sum in Irene's Creation and she aims to expand the firm's revenue from the Japanese market from 50 per cent to 80 per cent.

Her role at Irene's Creation is reminiscent of her first foray into entrepreneurship - an English language tuition centre in Japan - as both businesses involve interacting with people and understanding their needs.

Ms Yamada says she never thought of running a business, but when her father asked her to house-sit his 6,000 sq ft home in Gifu city, near Nagoya, Japan, in 1982, her entrepreneurial mind went in overdrive.

Educated in Australia and the United States, she decided to use her overseas experiences and language skills to help her countrymen get a better grasp of the English language.

After pumping $20,000 into renovations, she converted the house into an English language tuition centre that also provided advice to those planning to go overseas for their college education and needed to pass the language examinations.

Q What are your money habits?

A As a Christian, I believe we are stewards of God's gifts - so the money we have is not ours but is meant to be used responsibly.

If you are rich but your money doesn't have any value or meaning, it doesn't mean that you are rich. Unless you put value to the money you have and have a purpose in using it, money doesn't become anything beneficial.

In the past, I would buy a financial product when the seller appeared desperate for a sale, without giving too much consideration about the long term.

Now, I'm careful in planning what I buy. I look for a cause before I spend, such as committing $2,000 a month to sponsoring the educational needs of children in Japan and other parts of Asia. I come from a generation that believes in sharing.

Q What financial planning have you done for yourself?

A I invest primarily in properties and businesses. I have some ready cash in a fixed deposit that is rolled over monthly.

When it accumulates to $10,000, I try to channel it somewhere such as to a unit trust or to the church as an offering, so that I don't see it. When it's gone for a good cause, I don't miss it.

When I have $200,000, I will consider a property investment.

Real estate accounts for about 70 per cent of my investments while business investments make up 20 per cent and the rest is invested in funds that have achieved 10 per cent annual returns.

Q What about insurance planning?

A My life is insured for half a million dollars. I also have hospitalisation and critical illness cover as well as a travel policy. My annual premiums come up to $5,000.

Q What are your property investments?

A I have a 3,500 sq ft double storey, four-bedroom landed property in Yokohama on a hillside. This is rented out.

Recently, I bought a one-bedroom apartment near Tokyo Tower. The price went up by 25 per cent in just two months.

In the heritage district of Nijo Castle in Kyoto, I purchased a 700 sq ft, 100-year-old 'machiya' architecture style house - traditional townhouses - with three tatami rooms.

I kept the original facade and spent about $100,000 on renovations to make it tastefully modern inside. Now, it's worth about double the original price.

Q Moneywise, what were your growing- up years like?

A When I was 10, my family moved to the US for about three years as my father taught genetics at a university there. Mum was a housewife.

We were not wealthy but my father always supported his two brothers who were pastors.

I was taught the value of money from a young age - my sister and I were each given an allowance of just one dollar a month.

Q What has been a bad investment?

A I find buying furniture a bad investment because I have moved so many times.

So far, I have lived in about 40 places in five countries due to family and work commitments. They include Japan, the US, Singapore, Malaysia and Australia.

Each time I move I have to dispose of the furniture as it is so expensive to ship.

Q Your best investment to date?

A My investment in Irene's Creation. I have seen it grow threefold from my original investment.

I like the fact that it is a people business and we are involved in relating and understanding people's needs, be it for an attire or a portrait. I also see huge growth potential in the market.

Many Japanese couples like getting married in Singapore. They would come straight to our shop from the airport to get their gown and tuxedo for the wedding the next day. We also coordinate special photo shoots on location for them.

Q And your home now is...?

A When I'm in Singapore, I stay at a 1,700 sq ft company apartment at Emerald Hill.

I have homes in Japan and Australia.

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'I'm careful in planning what I buy. I look for a cause before I spend, such as committing $2,000 a month to sponsor the educational needs of children in Japan and other parts of Asia.'
Ms Yamada