If household income exceeding RM5k can ka? hahahahah

Sounds like a good deal to me.

Looks like he did a good job.

Yes and Yes.

Take note that this rule is GOOD for both you and the bank. In fact, the bank's being awfully generous by allowing 1/3 of income as a gauge for paying ability. The rule of thumb is that ALL your debts should not exceed 25% (credit card+car+mortgate/rent+insurance) of your monthly income. There is an article on MSN Money on budgeting with the 60/40 rule. Basically your 60% is for expenses (debts, expenses and taxes), and 40% is for savings/investment/emergency/entertainment.

At any time your debt load is more than 1/3 of your income, you are seriously in a lot trouble. If you take 1/3 on car and then another 1/3 on a house, you're only left with 1/3 for food, taxes, emergency, etc. Think about it properly.


edit: oh btw, when I say "income" i mean disposable income. Meaning if you get paid RM3k take away the 11% EPF, you're only left with RM2.67k. If you take 1/3 of RM3k, it's RM1k, but after you deduct that RM1k loan payment, you're only left with RM1.67k. If anyone wants some financial planning consulting, let me know. I charge a nominal fee only.

Well... you were probably "forgot" some details when you fill out your other commitments when applying for the loan. Or you increased your source of income (meaning salary + side income). Or the bank simply has a higher risk appetite.

*see above on the 60/40 rule

This post has been edited by spanker: Apr 30 2009, 05:58 PM

Despite having said that the definition of "rich" is off topic, it is inevitable that the conversation will flow this way again.

Actually, it makes you a "used to be rich". Dreamer's definition of "rich" is just BS.

Depends on whether you view the property as a home or as investment. And lets not forget, investments means there's always a chance of making losses (and yes, people DO make losses in property 'investments'). So if you don't have an appetite for "investments", then don't view property as an investment. And having a lot of investments does not mean you are rich.

The latter's definition is more accurate. The word "rich" has never taken into account the affluency of that person tomorrow (i.e. no time statute). If you have a million bucks today, and you spend it all today, you are still rich today. And depending what you spent it on, you can still be rich tomorrow even if you don't have a million bux anymore. If you gambled it all away (or you got robbed) then you cease to be rich.

dreamer's definition of "rich" means financially stable. It has nothing to do with being rich, merely being financially independent. And anyone investment savvy person can tell you your RM x is not worth RM x tomorrow. So any notion of retiring early always has a big pinch of wishful thinking.

Really? What happens if you faint tomorrow and then you're diagnosed with a rare cancer which can only be treated overseas and it's gonna cost you RM500k?

Will you still be rich then?

I had to take an IQ test during an interview. Got an IQ score of 151 (I was kinda shocked myself, I was expecting something around 120-130)

No need to guess whether they offered me a job or not. hahahaha

edit: IQ level is not an indicator of your success. There are many other factors involved, like social intelligence, humility, etc. Things that a good upbringing gives.

This post has been edited by spanker: May 14 2009, 09:54 AM

how does one measure EQ?

Hmm... Lim Kit Siang's blog says that more than 55% of m'sians earn less than RM3000/mth (Statistics Dept) and only 5.6% of m'sians earn more than RM10,000 a month. I think the "statistics" reflected in this thread is not very accurate

This post has been edited by spanker: Oct 21 2009, 05:17 PM

Well... considering people who do not earn enough to pay taxes (less than Rm24k/annum) do get counted into the statistics, plus the sample size are much larger, I'm inclined to believe the inaccurate statistics there is more accurate than in the inaccurate statistics here

I doubt many people who avoid years and years of taxes can continue avoiding it when they start to buy their own house, etc etc. They'd be in the system already.

I'm actually OUTSIDE of the 56% of people who earn below RM3k/mth, if you catch my drift