Is this for real a true experience of someone how he manages or plans his financial or merely make out a story to lure investor for participating ???? but interesting to read though, does this reflect you in anyway ???
Wealth Sharing Talk
Alex (not his real name) graduated in 1993. He managed to get a job with a MNC two months upon graduation. When he got his first salary, he booked a RM80,000 car. Six months later, he purchased a house for RM270,000.00. In late 1995, he married his long time sweetheart Jenny (not her real name). He spent about RM 30,000 on his wedding.
Due to cash constraints, he spent his honeymoon at a neighboring country (Thailand) where he used his credit cards to cover the expenses, about RM10000 in total. The following year, he got a promotion and his salary increased to about RM4,000 (including claims). Up to now he was paying the minimum payment only on all his monthly credit card balances.
One day in a shopping mall, he was approached by a credit card sales person with a balance transfer offer. He was told that he could transfer all his balances to this bank and have a lower interest rate for a period of two years. On top of that he would be given a gold card of that particular bank. He took up the offer as he thought he could save on the interest charges.
In 1998, Alex and Jenny had a baby boy. Jenny was being seen by a specialist at a private hospital. They also decided that she would quit her RM1800 job to be a full time housewife. Alex paid close to RM10000 in total for the medical bills for the duration of the pregnancy and delivery (via a caesarean). Alex utilized his new gold credit card for this.
From now onwards, Alex’s expenditure was more than 90% of his salary. Hardly anything was left for savings. In 2002, Alex got a job offer which was paying him about RM6000. He took the offer. He had a daughter in the same year. Again, the medical cost was close to RM10000 which he paid by credit card.
In 2003 he enrolled his son in kindergarten which cost him RM250 monthly. The next year, Alex lost his job due to the company’s decision to downsize. He was caught unaware without any savings. He survived by utilizing all his credit cards to their maximum limits. He only found a job eight months later and was offered half of his last drawn salary!
Today, Alex earns RM3200 from his day job and teaches tuition at night seven days a week just to make ends meet, including paying back his credit cards outstanding balances (which are standing at about RM43,000). Lack of financial intelligence coupled with a failure to plan has transformed Alex from a bright graduate into a depressed, disillusioned and de-motivated father and husband.
Wealth Sharing Talk
Alex (not his real name) graduated in 1993. He managed to get a job with a MNC two months upon graduation. When he got his first salary, he booked a RM80,000 car. Six months later, he purchased a house for RM270,000.00. In late 1995, he married his long time sweetheart Jenny (not her real name). He spent about RM 30,000 on his wedding.
Due to cash constraints, he spent his honeymoon at a neighboring country (Thailand) where he used his credit cards to cover the expenses, about RM10000 in total. The following year, he got a promotion and his salary increased to about RM4,000 (including claims). Up to now he was paying the minimum payment only on all his monthly credit card balances.
One day in a shopping mall, he was approached by a credit card sales person with a balance transfer offer. He was told that he could transfer all his balances to this bank and have a lower interest rate for a period of two years. On top of that he would be given a gold card of that particular bank. He took up the offer as he thought he could save on the interest charges.
In 1998, Alex and Jenny had a baby boy. Jenny was being seen by a specialist at a private hospital. They also decided that she would quit her RM1800 job to be a full time housewife. Alex paid close to RM10000 in total for the medical bills for the duration of the pregnancy and delivery (via a caesarean). Alex utilized his new gold credit card for this.
From now onwards, Alex’s expenditure was more than 90% of his salary. Hardly anything was left for savings. In 2002, Alex got a job offer which was paying him about RM6000. He took the offer. He had a daughter in the same year. Again, the medical cost was close to RM10000 which he paid by credit card.
In 2003 he enrolled his son in kindergarten which cost him RM250 monthly. The next year, Alex lost his job due to the company’s decision to downsize. He was caught unaware without any savings. He survived by utilizing all his credit cards to their maximum limits. He only found a job eight months later and was offered half of his last drawn salary!
Today, Alex earns RM3200 from his day job and teaches tuition at night seven days a week just to make ends meet, including paying back his credit cards outstanding balances (which are standing at about RM43,000). Lack of financial intelligence coupled with a failure to plan has transformed Alex from a bright graduate into a depressed, disillusioned and de-motivated father and husband.
