Wrong.

If you put your money in the bank in a fixed deposit at an interest rate of 4% per annum then that's it. After 1 year you get 4%.

But what if you lent your money to someone else in the same way as Grab?

For example, you give RM1,000 to Guy A for one month and you tell him he needs to pay you back RM1040, and he needs to pay you back daily through installments.

By the middle of the month Guy A would have paid you back RM500 at least. You can then take this RM500 and lend it to Guy B.

But this time you lend the money to Guy B for half a month and you tell him he needs to pay you back RM520, and he needs to pay you back daily through installments.

At the end of the month, how much did you earn from your capital of RM1,000? RM40 or RM60?

Now scale it up. Le't say you have RM100,000 and you lend it to 100 guys so each of them gets RM1,000. And everyday they pay you back a total of RM3,347. You can take this money everyday and lend it to more guys.

Of course Grab is not doing this right now, because they are still beta testing it and only some drivers can apply for this cash advance. But what happens when they open it for everyone?

But even if this scheme is not open to all drivers for now, Grab can take all that money they collect back from drivers daily and reinvest it somewhere else.

This post has been edited by JohnL77: Aug 13 2018, 01:55 AM

I thought a forex trader would understand time value of money..... Ah boy, ah boy....

Hopefully everything goes smoothly for Ah Boy once he graduates from his training account.






Not like this.



This post has been edited by JohnL77: Aug 13 2018, 01:59 AM

"Didi added that it was currently developing a real-name passenger registration system for its app, expected to launch by the end of this year.

This will be linked to an in-app social credit rating system for passengers."

Wow.

Next time wanna get married maybe your in laws will check your Didi account social rating.


Why are we teaching forex expert about time value of money?

This post has been edited by JohnL77: Aug 13 2018, 12:05 PM

Ok, I try to give Goodboy92 one last lesson.

Let's use moose's example of having to repair your car.

Let's say you need to repair your car for RM600. What are you options?

1. Pay cash RM600.

2. Pay using credit card.

3. Take cash advance from Grab.

For this example, we assume that the day you repair your car is the 1st day of your credit card billing cycle. That means you have 50 days to settle this RM600 with your credit card company. That is because your billing cycle is 30 days, then after you get your bill, you are given another 20 days from the date of the bill to settle the bill. You know what is 50 days? It's 7 weeks. That's 1 week extra compared to what Grab gives you.

So let's say 1, you pay cash RM600 to repair your car, then that money is gone. Pay liao.

But what if 2, you use credit card to pay? For this example we assume that you actually have RM600 cash to pay for this repair. So if you have the cash, why want to use credit card? Because you can actually take that RM600 and put it in a 1 month FD or invest it somewhere else. You won't earn much from 1 month FD, but it's still better than paying interest to someone else.

Very important to note, if you settle your credit card bill on time, you don't pay any interest. Free 50 days credit for you.


If you take option 3, you immediately start paying Grab back daily. Which is why I ask in previous example, do you really have that RM600 for 6 weeks? You see, there's a big difference between the credit terms given by Grab vs credit card.

Ah Boy, you can go read up on, "time value of money." If you don't want.. ¯\_(ツ)_/¯ But if you ever take a loan, or even credit card, it's good to know this.

Certain parts ok KL.. Up to 65km for RM65, and no incentive from Grab...

4th option - borrow from real ah long and kena pukul when you don't pay.

If you have cash and you have credit card, you can be wise and use your credit card to earn some money.

0% installment plans using credit cards are great.

If you are buying a big ticket item like an aircond or fridge, and you have the cash, you can choose to use a 0% installment plan then you invest that cash. Instead of paying interest to the CC company, you earn from investing your cash.

Of course, stores like Lazada are smart. If you want to use their 0% installment plan, you cannot use any promo code. So you need to do the math. If the discount from the promo code is bigger than the amount you can earn from investing your cash, then just pay for the item in full. But nowadays Lazada rarely got promo code, so....

This post has been edited by JohnL77: Aug 13 2018, 01:41 PM

Even if it is 38km for RM45, it is not worth it to go queue there like an idiot. All KLIA trips are sohai except for those rare cases when you get Surge on a KLIA trip. But that's like winning the lottery.

Economy.

No need to worry about certain areas being too cheap anymore. Now ALL areas too cheap. Go to KLIA for RM45, queue for 4 hours, get another RM45.

KLIA is best for guys who don't want to go home to their nagging wives.

Ye la.. That's the problem.. Other e-hailing spoil price so Grab has to lower their price also. If not, hopefully KLIA fare can go back to RM90 like last time...

Dafuq..

When want to open "KFC"?

I thought you damn expert punya rider...

Next BUSINESS day. Saturday and Sunday Grab staff not working to calculate your incentives.

That's gross. Minus 20% commission and it's only 80 sen/km.

I see. Thanks for the info. Next time I'll try on AA first then only SD. Thanks.

Later the EPF contribution also they didn't pay....

RM11 for 6.5km is still not really "high fare" lol.