Eddy is a fresh graduate who earns RM1800 per month. Right before graduation, he
bought a new Toyota Vios with minimum down payment. After paying the hire purchase
installment, he is left with RM1000 for all other expenses. He rented a room in Kuala
Lumpur that costs RM300 per month. Without proper budgeting, he pays for all other
expenses with his credit card whenever possible, such as petrol, fine dining, and some
other consumer spending.
Just within a few months, he had reached the maximum credit limit of his first credit card.
Not enough still, he applied more credit cards from other financial institutions. Another
six months down the road, he can no longer afford to pay the credit card minimum
payment. Finally, he lost everything. This is a typical story of a financial idiot.
Let’s look at the net worth chart of a financial idiot.
Net worth chart of a financial idiot
This chart shows an idiot digging a never ending debt hole. Until the day he is too broke
to even declare bankruptcy, he will be buried in the deep pile of debt shit. There is no
other way to help this guy unless he is willing to delay gratification, cut a lot of expenses,
and work hard to save!
Are you one of them????
This is how he Idiot's cash flow looks like. Don't be one of them... ok? :P
Top Money Tips for Malaysian by KC Lau