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 What's your monthly expenses

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cherroy
post Jul 25 2018, 11:13 AM

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QUOTE(MeToo @ Jul 25 2018, 10:26 AM)
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.
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My view,
If 1M is not enough for the education cost, then might as well drop the idea.

Kids need to learn how to gather education fund themselves, it is process of growing up.
If the kid indeed brilliant in study, there are various scholarship and channels to fund the education nowadays, may not need as much as that.

I am not a fan of "using money to push the kid education" theory.
In fact, it may actually spoil the kid, especially if the kid is just ordinary or lesser than ordinary.

Nowadays, getting a ordinary degree is no longer a career path guaranteed, which in return may "trap" themselves in career path.

In fact, nowadays, many non-degree holder are thriving better than ordinary degree holders.
Kid need to go along their interest and exhibit their own strength and constant learning.

Industries are changing fast nowadays, now we are also talking about financial sector total revamp, HK already comes out with virtual banking, whereby the bank has no physical branch to serve customer anymore, but only through online channel. So previous ordinary banker also need to know how online banking works nowadays.

Those thrive or success in their career, generally are not because of their degree, but constantly learning and improve themselves instead of due to previously throwing money at ordinary education.

Just my personal opinion.
cherroy
post Jul 25 2018, 11:53 AM

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QUOTE(MeToo @ Jul 25 2018, 11:25 AM)
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

user posted image
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1) As said, if the kid is indeed brilliant, no problem to spend big.
But if the kid can enroll into Harvard, it should be no problem to get some scholarship, funding required, no need to spend as big.

2) Without a degree, the kid may need to work hard and may willing to accept anything in their path, instead of mindset I have a xyz degree, I won't do this do that or tell me to do this job as degree holder, no way or too little salary as degree holder.

3) B40 may not have a degree due to no rich FAMA to support them in the first place. Even those degree holder is jobless, they won't become B40 due to rich FAMA. Nowadays you have money, you have a degree already.

4) The point is degree has nothing to do with this. We are not talking of total uneducated, we are talking using money to push the kid to get a degree instead finish school with SPM or diploma.
In fact, the jobless stat is higher with an ordinary degree than ordinary a skillman.

Fundamentally, we are not comparing total uneducated vs degree holder.
I am more towards discussion whether to support the kid to go for an ordinary degree by spending big money, or just let the kid finish their diploma or Vokansional school at cheaper version or let the kid build up their path according to their strength.
cherroy
post Jul 27 2018, 03:30 PM

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Cut down car installment - by getting a lesser car, easily can save a few hundred buck per month, not to mention cheaper car insurance as well.

Revisit insurance - if wife is not working, life insurance may not be needed except those CI type and medical. Many do overbought insurance or bought unnecessary insurance. Even having the max medical insurance, there are scopes that insurance does not cover, that one needs to pay by your own money. Typically dental, outpatient type of treatment.

Phone landline can cut down as prepaid HP is much cheaper than landline, pay TV can be cut down as well since nowadays Internet got lot of stuff to watch already. Newspaper is needless if have internet, subscribe online news also cheaper.

Trim down a bit here and there, easily squeeze a few K out, one year 20~30K then can make investment that generate passive income.

Active income saved reinvest + passive income compounded, over 10-15years, it will be significant.
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