I'm just to share something to you guys (and ladies).
I'm 22, turning 23 soon (I don't realized I'm that old).
I'm a college dropout, and been working at Singapore since then.
During the times I worked at Singapore for 1 year and 9 months, my average income per month was like SGD 2300 (MYR 5000 ++). My total income worked for that short period was around MYR 120K. Just imagine, I'm just a youngster without any senses of managing my own money, hence I spent all the money, of course. (clubbing, eat, drink, entertainment, transportation (Singapore cab is not cheap), room rental at Singapore)
I got shocked when I make some simple calculation. I didn't know how much is my income until Inland Revenue Authority of Singapore (IRAS) send me my yearly income statement (reported by my company). I'm kind of regret of spending it all. But of course, I got to pay house's internet, fixed line, electricity, water, mum's insurance and giving mum's monthly expenses. The total amount I need to pay on time is around MYR 1.5K to MYR 2K.
After I've resigned from the previous job at Singapore, I'm still staying at Singapore for a while more (looking for job and relax at the same time). But eventually I came back to Malaysia and worked for some bank. I suppose to work for that bank for a year because I've signed the contract with the bank, but I break the contract and pay them MYR 2550 due to I've worked for only 6 to 8 weeks.
Since resigned from the bank, I'm not working for few months too until last year September, I went back to Singapore for work.
But just a few days ago when I got home from the saloon, my mum started a conversation with me. She said: "For the past 1 year and 9 months working at Singapore, I didn't not buy any car nor house. Spending all the money without any saving blah blah blah blah... No matter how smart you are, no matter how great is your thinking, you're still nothing when you didn't work out with your plan blah blah blah blah"
Then I sit straight and looked back at my mum and said: "Mum, can you please put down the newspaper and listen to me first?"
She was quite nervous yet calm, after putting her newspaper aside, she asked: "What is it?"
I started my talk. "Do you have any ideas of what am I thinking exactly, seriously? Do you know the reason why I didn't want to buy any car at the moment? (As my mum keep nagging on me, asked me to buy my own car to work. As currently my car (loaned by my brother) was spoilt - for sale at ZTH too. So my mum had to fetch me everyday)
My talks continued with: "Do you have any ideas of what's going now? Do you have any idea how much money I have to pay every month? Do you really know how to calculate? Did you ever think?
For example: If I am going to buy a car, that's what we call liabilities. It's not going to generate any money for me, but it depreciate every year, every month, everyday, every single minute. It cost more than what the banker calculate for you.
If I am going to buy a used 2nd generation Toyota Vios, it would cost me around MYR 55-60K (KL, Selangor) or MYR 60-70K (Johore).
So let's do some basic calculation:
Price of the used 2nd generation Toyota Vios: MYR 65K.
Down-payment: MYR 5K.
Bank loan: MYR 60K.
Make the interest rate at 4% per year.
So MYR 60K x 4% year, that's MYR 2400 per year.
If I wanted to pay my car loan with the maximum years I could get, that's 9 years.
So please use that MYR 2400 x 9 years (as interest for car loan is fixed).
And you will get MYR 21600, now that's the interest of your MYR 60K for 9 years.
Total up together, MYR 81600 divides 108 months (9 years).
Every month I need to pay MYR 755.55.
Seems to be a great deal? No, it's not.
Paying the car loan of MYR 755.55 from average salary of MYR 5-7K seems acceptable.
But please do not forget that you also need to pay for road tax, car insurance, petrol, toll fee, servicing fee and so on.
According to my friends who worked as Salesman for automotive, the value of car depreciate at least MYR 5K per year. But of course, depending on the car brand, model, CC, years, mileage etc.
So I told my mum, since our house already have 4 cars, I think it's more than enough. If taking me to the checkpoint everyday is a pain for you, I would rather wake up earlier and took the bus. I do not want to follow the footstep of all my brothers, paying a car loan every month end up there's no money in the wallet. I prefer assets more than liabilities.
My eldest brother recently purchased a house which cost him MYR 330K. Let's do another simple calculation. The Basic Lending Rate (BLR) for housing loan currently is at 4%. If my brother take up the loan of MYR 300K with BLR 4% per year, and loan up to 30 years. Hmm..
MYR 300K x 4% year: That's MYR 12K per year.
Now MYR 12K per year x 30 years: That's MYR 360K of interest for 30 years!
Please note that MYR 360K is only for the interest, please add up the principal MYR 300K of your housing loan. Which end up the total you need to pay back is MYR 660K.
So MYR 660K divides by 360 months (30 years): MYR 1833.33 per month.
But sorry, for 30 years? I didn't dare to think of paying any loan when I'm 60 years old.
After explained so much to my mum, I asked her: "So do you know the reason why I didn't make any purchase right now? If tomorrow someone from our family need cash MYR 10K to MYR 30K, are you able to fork out for me? Or any of our family member (I only have 2 elder brothers by the way) could fork it out?
My mum tears started to rolling down her cheek, she replied: "Do you think it's easy for a women like me to raise up 3 kids alone? Do you think I wanted to have such a poor life?"
I smiled and said: "Mum, I'm not saying raising us alone is easy, that's why we wanted you to enjoy your life now. So do not worry about anything. All you need to do is enjoy life. Comparing to your income which is at 13 years ago, MYR 1.5-2K per month for a family of 4 (3 kids studying), is struggling. Now all your kids have grown up, what is it you need to worry? I seriously feels that our household income are better now. (of course, 2 sons currently working at oversea, soon will be 3 sons together working oversea).
The life is not going to be easy for us, I hope everyone read more, learn more, explore more in our daily life.
Let's say, if you're a youngster (doesn't matter whether you're a college dropout or SPM holder), do spend your money wisely. Do not spend your MYR 50K for your new Honda Civic FD2 as down-payment, use it to get assets instead (house, shop, businesses).
My dear brother (from ZTH), if you're reading this, you could actually pay up your 30 years housing loan in just 5 years. But of course, you have to behave yourself. Do not go for drink every month!
Okay, time to go bath and work.
Rushing for 9.30AM buses to Singapore (I'm not longer staying there because need to save up!)
I'm 22, turning 23 soon (I don't realized I'm that old).
I'm a college dropout, and been working at Singapore since then.
During the times I worked at Singapore for 1 year and 9 months, my average income per month was like SGD 2300 (MYR 5000 ++). My total income worked for that short period was around MYR 120K. Just imagine, I'm just a youngster without any senses of managing my own money, hence I spent all the money, of course. (clubbing, eat, drink, entertainment, transportation (Singapore cab is not cheap), room rental at Singapore)
I got shocked when I make some simple calculation. I didn't know how much is my income until Inland Revenue Authority of Singapore (IRAS) send me my yearly income statement (reported by my company). I'm kind of regret of spending it all. But of course, I got to pay house's internet, fixed line, electricity, water, mum's insurance and giving mum's monthly expenses. The total amount I need to pay on time is around MYR 1.5K to MYR 2K.
After I've resigned from the previous job at Singapore, I'm still staying at Singapore for a while more (looking for job and relax at the same time). But eventually I came back to Malaysia and worked for some bank. I suppose to work for that bank for a year because I've signed the contract with the bank, but I break the contract and pay them MYR 2550 due to I've worked for only 6 to 8 weeks.
Since resigned from the bank, I'm not working for few months too until last year September, I went back to Singapore for work.
But just a few days ago when I got home from the saloon, my mum started a conversation with me. She said: "For the past 1 year and 9 months working at Singapore, I didn't not buy any car nor house. Spending all the money without any saving blah blah blah blah... No matter how smart you are, no matter how great is your thinking, you're still nothing when you didn't work out with your plan blah blah blah blah"
Then I sit straight and looked back at my mum and said: "Mum, can you please put down the newspaper and listen to me first?"
She was quite nervous yet calm, after putting her newspaper aside, she asked: "What is it?"
I started my talk. "Do you have any ideas of what am I thinking exactly, seriously? Do you know the reason why I didn't want to buy any car at the moment? (As my mum keep nagging on me, asked me to buy my own car to work. As currently my car (loaned by my brother) was spoilt - for sale at ZTH too.
So my mum had to fetch me everyday)My talks continued with: "Do you have any ideas of what's going now? Do you have any idea how much money I have to pay every month? Do you really know how to calculate? Did you ever think?
For example: If I am going to buy a car, that's what we call liabilities. It's not going to generate any money for me, but it depreciate every year, every month, everyday, every single minute. It cost more than what the banker calculate for you.
If I am going to buy a used 2nd generation Toyota Vios, it would cost me around MYR 55-60K (KL, Selangor) or MYR 60-70K (Johore).
So let's do some basic calculation:
Price of the used 2nd generation Toyota Vios: MYR 65K.
Down-payment: MYR 5K.
Bank loan: MYR 60K.
Make the interest rate at 4% per year.
So MYR 60K x 4% year, that's MYR 2400 per year.
If I wanted to pay my car loan with the maximum years I could get, that's 9 years.
So please use that MYR 2400 x 9 years (as interest for car loan is fixed).
And you will get MYR 21600, now that's the interest of your MYR 60K for 9 years.
Total up together, MYR 81600 divides 108 months (9 years).
Every month I need to pay MYR 755.55.
Seems to be a great deal? No, it's not.
Paying the car loan of MYR 755.55 from average salary of MYR 5-7K seems acceptable.
But please do not forget that you also need to pay for road tax, car insurance, petrol, toll fee, servicing fee and so on.
According to my friends who worked as Salesman for automotive, the value of car depreciate at least MYR 5K per year. But of course, depending on the car brand, model, CC, years, mileage etc.
So I told my mum, since our house already have 4 cars, I think it's more than enough. If taking me to the checkpoint everyday is a pain for you, I would rather wake up earlier and took the bus. I do not want to follow the footstep of all my brothers, paying a car loan every month end up there's no money in the wallet. I prefer assets more than liabilities.
My eldest brother recently purchased a house which cost him MYR 330K. Let's do another simple calculation. The Basic Lending Rate (BLR) for housing loan currently is at 4%. If my brother take up the loan of MYR 300K with BLR 4% per year, and loan up to 30 years. Hmm..
MYR 300K x 4% year: That's MYR 12K per year.
Now MYR 12K per year x 30 years: That's MYR 360K of interest for 30 years!
Please note that MYR 360K is only for the interest, please add up the principal MYR 300K of your housing loan. Which end up the total you need to pay back is MYR 660K.
So MYR 660K divides by 360 months (30 years): MYR 1833.33 per month.
But sorry, for 30 years? I didn't dare to think of paying any loan when I'm 60 years old.
After explained so much to my mum, I asked her: "So do you know the reason why I didn't make any purchase right now? If tomorrow someone from our family need cash MYR 10K to MYR 30K, are you able to fork out for me? Or any of our family member (I only have 2 elder brothers by the way) could fork it out?
My mum tears started to rolling down her cheek, she replied: "Do you think it's easy for a women like me to raise up 3 kids alone? Do you think I wanted to have such a poor life?"
I smiled and said: "Mum, I'm not saying raising us alone is easy, that's why we wanted you to enjoy your life now. So do not worry about anything. All you need to do is enjoy life. Comparing to your income which is at 13 years ago, MYR 1.5-2K per month for a family of 4 (3 kids studying), is struggling. Now all your kids have grown up, what is it you need to worry? I seriously feels that our household income are better now. (of course, 2 sons currently working at oversea, soon will be 3 sons together working oversea).
The life is not going to be easy for us, I hope everyone read more, learn more, explore more in our daily life.
Let's say, if you're a youngster (doesn't matter whether you're a college dropout or SPM holder), do spend your money wisely. Do not spend your MYR 50K for your new Honda Civic FD2 as down-payment, use it to get assets instead (house, shop, businesses).
My dear brother (from ZTH), if you're reading this, you could actually pay up your 30 years housing loan in just 5 years. But of course, you have to behave yourself. Do not go for drink every month!
Okay, time to go bath and work.
Rushing for 9.30AM buses to Singapore (I'm not longer staying there because need to save up!)
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