Unfortunately this so called "method of saving" doesnt not make sense.

Many have pointed out there is a lot of assumption and very specific condition that is unable to apply to the general public.

I'm pretty sure my boss's son can save 90% of his salary as well, cause everything is either charged to the company or daddykasi. Can we do the same?

Oh and those that say "Buy with cash blah blah"... really? When say a car loan is 0.98% and the FD is 4.1%? Even after calculating the EIR it still doesnt make sense not to take the loan.

Volvo 0.90%

go shop around, dont always look at Proton and Toyota

This post has been edited by MeToo: Jul 24 2018, 02:35 PM

Buy what car also lose money.

Its just a matter of cost of ownership.

If we are fine with the $ spent on a volvo, i dont see why not. Afterall, life is priceless.

Huh?

Inflation hits everything.

Low income u send to govt school free.

High income u send ot international school, 50k a year, ingflation 5% a year.

Inflation affects EVERYONE. Cause it lowers the value of money, u have little or more money you still get hit the same.

dont be silly.

if u earn 50k and spend liek someone who earns 5k.

then whats the point of earning 50k? abit bodo right.

or u think money in the bank can take to the grave?

Thats not the point here, one poster claim inflation doesnt affect the poor, while I say inflation hits everyone.

Whether the rich makes smart investment (or lose their pants) is a different issue.

So u earn 1k, u life a pauper's lifestyle.

Then u earn 5k, u continue to live the above said lifestyle.

One day you managed ot earn 20k, but u still live the 1k's lifestyle?

Really? That's your advice?

The affect or impact of inflation on an individual differs.

Personally I think Painting a broadstroke saying rich dont get impacted is kinda simplistic way of lookign at things. There are a myriad of factors that have to be taken into acocunt.

For example, Say if inflation hits certain services, assets, or goods which the rich uses, then the impact on them would be greater.

Money is not yours unless you spend it. If you dont spend money then the money have NO VALUE at all.



I love it how everytime people talk about "rich" everyone wants to bring in the billionaries and use them as comparison.

So your definition of rich is Li Ka Shing and Buffett? Then everyone else is poor?

Cause pls understand there is a certain base amount you can spend before more money becomes irrelevant. So pls dont bring in Billionaires into the equation unless you want to bring the discussion to a different level.

Now, going back to spending habits, sure if you earn 50k and spend 10k, you will have more "savings". You will not be "rich". Cause if all you EVER do is spend 10k a month, regardless of how much you save its useless and pointless, you ever will spend 10k a month. How can you be "rich"?

Money in the bank that you NEVER use does not make u rich.

Anyone who insist on bringing in billionaires. See my above response.

Sure they spend "below" thier means, thats still a few gazillion times more then what you are spending. Understood?

Edit : Reading millionaire next door? Why bother? I might as well work hard to be one myself... oh wait I am....
Pls wake up, a million or 2 these days aint nothing. You still live in a terrace house while driving a proton japanese car (sorry forgot my wife upgraded recently)

This post has been edited by MeToo: Jul 24 2018, 05:31 PM

you been claiming.

"keep money in the bank, save, dont spend, you will be RICH".

Money in the bank can be used ot generate more money that you never use? Really? Thats a good plan?

What nonsense is that, whats the pooint of having figures printed on a piece of paper.

You feel rich? You feel good? You enjoy it? Nope... you dont enjoy it, you continue to scrounge like a pauper. Maybe after you expired your kids can finalyl take the money out and live an enjoyable life.

As for financially savvy or not, well, perhaps I'm not, but I would like to think I'm doing ok for myself. I live an enjoyable life and still managed to retain a 7 digit nett worth... not rich, but certainly not living like a "rich pauper"

Ok, I give up trying to dispute your way of thinking, you live life the way you like.

But, pls do not leave money in the bank, thats the worse way to "grow your wealth" as you put it. Money in the bank will always lose its value over time, the bank interest will never keep up with inflation. As to where to grow your money, I'm sure you have your own ideas.

What I'm preaching is, upgrade your lifestyle as your income grows. DOnt be a penny pincher and live liek a pauper. When you have 500k cash , do you buy a 500k car? Not really... but go buy a 200k car, splurge a bit. Dont go buy a proton and think you are rich rich rich. It doesnt work that way. For all you know, you might die tmr.

Oh and wait until 70? U sure you can live until then?

The way you answer, I'm pretty sure you still have a low income. None of my peers (whom let say fulfills the minimum /k earning of 20k+, usually multiples of) thinks that way.

Once you gets to a certain income level and/or networth, then we talk again.

Edit : Actually I wanted to summarie it and just say "spoken like a poorfag" but realised this is not /k

This post has been edited by MeToo: Jul 24 2018, 06:31 PM

Sir, i'm aghast at your financial literacy. I thought i was pretty bad, but your ineptness put me to shame...

To think that putting your cash in FD will "grow your money and outstrip inflation" is ... wow... i dont even know what to say.

I do hope you are so proud as to not having higher aspiration to move up... its good to have discipline over money. But your POV will change as your income levels increase. Maybe your first 100k will nto change you, maybe your first 500k wont, but probably by the time you have 1,000,000 cahs in the bank, you might think differently.

Having a kid myself, i hope you put aside some cash for her education/degree.

Myself I'm saving right now to the point when she's 18, I'll have about 1M in cash ready for her education needs. I have a feeling this will not be sufficient to cover everything and would need to be supplemented by some extra money lying around. But atleast I have a base to work with.

The savings partly comes from an insurance investment plan (a form of forced saving which literally gives crap returns), and a property allocated for this use, to be sold when the cash is needed.

This post has been edited by MeToo: Jul 25 2018, 10:34 AM

Ya I saw that and gave up.

So many tried to point this out to him, but his ignorance knows no bounds.

Personally I think people with 5k in bank worry less about inflation affecting their savings compared to those with 500k in the bank. I'm pretty sure I never thought about inflation when i first entered the job market. Now.. I monitor this and that, how to balance my portfolio, how to squeeze every single extra basis point of profit from my investment etc.. sigh

Lets address this.

1. If your kid manages to get accepted into Harvard, but were unable to secure any scholarship. Would you tell them, sorry life sucks settled with UM instead? Perhaps some might, but I'm of the opinion i shall give her the chance.

2. You are right, an ordinary degree is no longer a guaranteed career path. But without a degree, statistically is even worse, do you agree?

3. Non degree holder is thriving better then ordinary degree holder. Statistic disagree with you on this. Sure we all heard of the rags to riches story, "mr XYZ who managed to be a millionaire with just his SPM". What are the percentaged of these people making it? Did you hear of the other 99% which is currently in the B40 range cause they only have a SPM?

4. Industry is fast changing etc etc, sure everything is fast changing. Are you trying to say that those without a degree will adapt better then those with higher education? If there is any relation, i would say uneducated ones are the ones being left behind.

Infact you see fresh grads in LYN complaining that they are getting RM3k a month as starting salary, do you want your children to go thru this? Cause I know that if you have a decent education (i.e. ivy league uni) you start off at a much higher level and would be better positioned to have a fast track thru your career. Ofcourse there is no "guarantees" in life, but in general those who are better equiped with the right tools does a better job than those that starts with nothing.

Let me leave you with this. It might not be right, or morally acceptable, but today's capitalistic world is harsh

Actually none of your complaints deal with whether these kids have a degree/education.

its more a matter of attitude. Attidude does not differentiate between poor or rich. Its inherent in that person, and how his environment molds him.

There is no guarantee a poor guy with no degree is more hardworking then a rich guy with a prestigious degree. It might be the other way around.

SO pls, to compare apple to apple.

If there is 2 guy, A & B. Both are hardworking, smart, pro-active, responsible etc etc etc. All things being equal. But, one only have an SPM while the other guy is a Cambridge grad. Who do you think has a better head start and would likely be able to climb higher in life?