Saturday, July 09, 2005
BluEScrubs Financial Times
The Car In Front Is Toyota
This is not going to be easy. It might not even flow so easily to satiate your high taste for reading material. I might even hurt a few people by writing this but I feel that it’s my responsibility to part with little knowledge I have about financial independence. I write this because I care.
I am not an economist, neither am I a clone of Azizi Ali, or remotely related to Robert Kiyosaki, but one thing I know is you will struggle financially if you live in KL with a pay of RM1200 a month. It’s a fact.
(Sidetracking - The currency is Ringgit not Dollars, I get extremely confused when people talk in dollars when they refer to the money spent in Malaysia, is that just pure ignorance and arrogance = ignorarrogance or do they have wacky brains to convert to dollars as easy as cracking peanuts?)
If you’re in your mid 20s, with that kind of pay and a girlfriend, you will suffer horrendously, that is for sure. (If this is beginning to sound a bit personal, maybe it is)
Now you need a car, everybody needs a car. You tell me you need a car to go to work. You need the work to pay for the car. So we have a viscious cycle there.
You’re saying to me this is precipitated from you wanting an accommodation which is cheaper by RM100, but that equates to living further away from work, such that you need a car.
Now the minute you buy a car, the value goes down almost exponentially. At the end of each month, you’ll be at least RM200 worse off than before. Not to mention the fuel money you’ll incur for the distance at the price of paying a lower rent? Have you done your calculation properly?
Now if I were you, what I’d do is to be harsh on myself and pay myself some money instead of giving it all to other people. Say an X amount a month. They say 10% of your pay, but I'd say more, heck it's your money! Be strict and do this every month without fail. Put that in a separate account where you won’t touch it at all. After all it’s your money, why pay the blimming car loan people first?
Get to a value enough for a house downpayment. I don’t want to know how you do it but do it. It’s painful it’s not something you’d enjoy but this is what you have to do.
Once you have that, get a house near your work place where you wouldn’t need a car. Rent out the rest of the rooms, get house mates. Immediately you’ll ease the loan payment that you’d be paying. Aiyo missed out the getting the loan bit but you know the works, getting loan after the downpayment and all, provided you keep the job for loan purposes. I don't do editing, there are people getting paid to do that.
This way wouldn’t you be building equity already and getting paid for having a house, and walking to work! Isn’t it great? Great exercise too?! Ye laa I hear you say senang la you cakap macam tu, you get paid in pounds. Hello, siapa suruh malas belajar kecik kecik? Siapa suruh terjun alor time orang lain baca buku, siapa suruh pusing BMX time orang lain baca sifir? huh huh huh?
Ok lets not get carried away. It’s not easy I know. Loans are out there, but there are good loans and bad loans. Loans for big kenduri- bad, for a Tissot watch- bad, for a spanking brand new car- bad (but a lot of people take it). The only good loan I know is when a loan will actually be paid back on itself. A loan from a big sister for a house downpayment – negotiable, subject to an approval but better than for a brand new Kelisa. You only need to get from A to B for crying out loud.
This is a bit advance but I believe everybody needs to have a business. Your job is not your business. It’s your career maybe, something you are a slave to, something where you work for the money. But your business is where you make the money work for you. By this I mean looking after the money you’ve earned is your business.
Make buying your house a business. Make doing your financial planning your business, make making sure your money is not wasted unnecessarily your business, make investing it somewhere else your business. Make making more money your business. You will not make any more money unless you invest it and that is your business. Be an accountant, be a manager for your own business. But remember, buying a new car it’s not a business. Big NOT.
It sounds vague and a bit of a waffle but I can only give the scaffolding, it’s up to you to build the building whichever way you want it. Make financial independence a target in life or forever be a slave to money.
Doctors don’t get paid much everybody knows that unless you’ve reached a certain level of expertise and mind you that path is full of ‘onak duri’. Pain you know study sampai ke tua. But like Howard Hughes, you want to be buying TWA while flying a flight. Be one step ahead of other people. Do business while ‘enjoying’ your career. Hahahahah (serious now)
Unless you suddenly woke up with a voice like Frank Sinatra or the Lotto flashed your lucky numbers tomorrow, I am afraid, this is what you’re going to have to consider.
Talk cock lah you and talk big also, like bagus bagus je, you say to me. I dare you do it and see cock or not. Then if you want to thank me in 10 years time, I only want a hug. Thanks.
This is not going to be easy. It might not even flow so easily to satiate your high taste for reading material. I might even hurt a few people by writing this but I feel that it’s my responsibility to part with little knowledge I have about financial independence. I write this because I care.
I am not an economist, neither am I a clone of Azizi Ali, or remotely related to Robert Kiyosaki, but one thing I know is you will struggle financially if you live in KL with a pay of RM1200 a month. It’s a fact.
(Sidetracking - The currency is Ringgit not Dollars, I get extremely confused when people talk in dollars when they refer to the money spent in Malaysia, is that just pure ignorance and arrogance = ignorarrogance or do they have wacky brains to convert to dollars as easy as cracking peanuts?)
If you’re in your mid 20s, with that kind of pay and a girlfriend, you will suffer horrendously, that is for sure. (If this is beginning to sound a bit personal, maybe it is)
Now you need a car, everybody needs a car. You tell me you need a car to go to work. You need the work to pay for the car. So we have a viscious cycle there.
You’re saying to me this is precipitated from you wanting an accommodation which is cheaper by RM100, but that equates to living further away from work, such that you need a car.
Now the minute you buy a car, the value goes down almost exponentially. At the end of each month, you’ll be at least RM200 worse off than before. Not to mention the fuel money you’ll incur for the distance at the price of paying a lower rent? Have you done your calculation properly?
Now if I were you, what I’d do is to be harsh on myself and pay myself some money instead of giving it all to other people. Say an X amount a month. They say 10% of your pay, but I'd say more, heck it's your money! Be strict and do this every month without fail. Put that in a separate account where you won’t touch it at all. After all it’s your money, why pay the blimming car loan people first?
Get to a value enough for a house downpayment. I don’t want to know how you do it but do it. It’s painful it’s not something you’d enjoy but this is what you have to do.
Once you have that, get a house near your work place where you wouldn’t need a car. Rent out the rest of the rooms, get house mates. Immediately you’ll ease the loan payment that you’d be paying. Aiyo missed out the getting the loan bit but you know the works, getting loan after the downpayment and all, provided you keep the job for loan purposes. I don't do editing, there are people getting paid to do that.
This way wouldn’t you be building equity already and getting paid for having a house, and walking to work! Isn’t it great? Great exercise too?! Ye laa I hear you say senang la you cakap macam tu, you get paid in pounds. Hello, siapa suruh malas belajar kecik kecik? Siapa suruh terjun alor time orang lain baca buku, siapa suruh pusing BMX time orang lain baca sifir? huh huh huh?
Ok lets not get carried away. It’s not easy I know. Loans are out there, but there are good loans and bad loans. Loans for big kenduri- bad, for a Tissot watch- bad, for a spanking brand new car- bad (but a lot of people take it). The only good loan I know is when a loan will actually be paid back on itself. A loan from a big sister for a house downpayment – negotiable, subject to an approval but better than for a brand new Kelisa. You only need to get from A to B for crying out loud.
This is a bit advance but I believe everybody needs to have a business. Your job is not your business. It’s your career maybe, something you are a slave to, something where you work for the money. But your business is where you make the money work for you. By this I mean looking after the money you’ve earned is your business.
Make buying your house a business. Make doing your financial planning your business, make making sure your money is not wasted unnecessarily your business, make investing it somewhere else your business. Make making more money your business. You will not make any more money unless you invest it and that is your business. Be an accountant, be a manager for your own business. But remember, buying a new car it’s not a business. Big NOT.
It sounds vague and a bit of a waffle but I can only give the scaffolding, it’s up to you to build the building whichever way you want it. Make financial independence a target in life or forever be a slave to money.
Doctors don’t get paid much everybody knows that unless you’ve reached a certain level of expertise and mind you that path is full of ‘onak duri’. Pain you know study sampai ke tua. But like Howard Hughes, you want to be buying TWA while flying a flight. Be one step ahead of other people. Do business while ‘enjoying’ your career. Hahahahah (serious now)
Unless you suddenly woke up with a voice like Frank Sinatra or the Lotto flashed your lucky numbers tomorrow, I am afraid, this is what you’re going to have to consider.
Talk cock lah you and talk big also, like bagus bagus je, you say to me. I dare you do it and see cock or not. Then if you want to thank me in 10 years time, I only want a hug. Thanks.
