Financial Issues

Why borrow from loan sharks ?

Posted on May 30, 2009. Filed under: Financial Issues | Tags: , , |

If those people have a choice, they would not want to borrow money from those Ah long’s (loan sharks).

They need money urgently and the banks are not lending them because they do not have the right criteria to qualify for loans.

Those banks would need collateral’s like a house or land tittles in order to secure a loan.

In the present day , it is easy to apply for a credit card and the banks literary send you one even if you do not apply for it.

Credit cards are a very good source of income for those banks because of the hidden costs (late payments fee’s, annual fee’s)and 18% interest P.A .This would make those banks the officially sanctioned licensed ‘Ah Long’s ‘

Where can they go or turn to ,if they want to borrow money ?

If the banks do not want to lend them because they do not have any collateral’s , they could go to those pawn shops or money lenders if they have gold ornaments to act as a deposit.

They could seek out their friends or relatives but there is a limit on how much those friends and relatives can lend . Moreover for some people to let others know about their financial predicaments is shameful (No face).

It is when they do not have any collateral’s , or gold ornaments, or willing friends or relatives ,they will seek the services of those Ah Long’s.

Since it is an unsecured loan , the Ah Long’s can charge very high interests for their loans.

Those who want to borrow money to tight over a situation can be from any levels of the society.

It could be from the rich to the very poor in the society. The majority of borrowers are from the middle class as the poor are too poor and those Ah Long’s will not lend to them.

In Malaysia, you can see the Ah Long’s hanging their banners or posters advertising their services with only their contact numbers and no address as it is illegal to lend money without a license.

They have migrated from sticking their name cards on telephone poles and walls of buildings.

There are many reasons why people want to borrow money from those Ah Long’s.

Some are die hard gamblers who lose their bets and need to repay their winners.Some businessmen need money to cover their postdated cheques which are due.Some need the money for emergencies due to sickness or accidents.

If you are a die hard gambler, it is difficult to kick the habit and you are at the mercies of those Ah Long’s.

For those businessmen , it would be better to arrange with those debtors to settle those cheques which are due.

Borrowing from those Ah Long’s will only increase your cost . Those business debtors are understanding as they do not want to be harsh and will allow you more time to pay up.

You will save a lot from those high interest charged by those Ah long’s.
If you borrow from those Ah Long’s to pay your debtors, you are only stupid.

Those who borrow from those Ah Long’s because of an emergency, make sure that you can pay them back. Otherwise , you will be hounded and your life would be like hell.

There is another way you can borrow from the banks if you have those credit cards. If you need a short term loan , you can always use the cash advance facility and if you want to max out your card, you can go to those companies that will arrange the loan from the banks and you can pay back by installments in two or three years time.

Those companies will swipe your card for electrical goods but you get cash after paying for the bank commissions and their agent’s commissions. it can be a one time upfront 18% to 20% flat for the three years loan. it is not expensive and better than Ah Long’s.

Live within your means and cut your clothes according to your size. I rather be poor and happy than to appear rich but with mountain of debts.

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You only live once.

Posted on May 11, 2009. Filed under: Financial Issues | Tags: , , |

Whether you are rich or poor , you are only given 24/7 and you have only one life. Some lucky people may have nine life’s.

Saviour every moment of your life because what is past will never come back again and you will not have a second bite of the cherry.

What is the meaning of life ?

If you have money in the bank and do not know how to use it to your advantage ?

You become a money making machine and only knows how to make more of it. When you die , others will will reap what you sow.

What is the purpose of life ?

He had no children or relatives and his money went to the state.

I have seen and read about those poor and homeless beggars who have lots of money in the bank accounts or they bury it under the ground.

It seems like their sole existence was merely to gather as much as they can like those hardworking ants or squirrels who slogs everyday and store their food or money for the winter . They were born gatherers and nothing more.

Money may not buy you happiness but it can gives you the comforts in life.

A poor – rich man in Korea had US$100,000 lifesaving’s in the bank but died of cancer before he could spend it.

Nobody knows how long we can live or whether we will be able to see another tomorrow .

Life and death is not in our hands. This very night the Angel of death may pay us a visit and it will be the end or the beginning of the end.

When he died , his only possession was a cart, a wristwatch and a quilt. That was all his worldly possessions .

He lived a very quiet and simple life, collecting junks for a living and slept in his cart. His wants were simple and any excess money was deposited into the bank.

With those money in the bank , he could be able to afford to buy a simple house and have a roof over his head. Yet he did neither and only loved to see his money grow in the bank.

Money is their God and they become the slave to money. They will horde and save and are unwilling to spend on themselves or give away some to charities.

Some people are just spendthrift who spends like no tomorrow ,while some are just misers like Ebeneezer, counting their money every night.

God has a purpose for everyone of us and it is up to us to discover what is the meaning and purpose in life.

Have you discovered your purpose in life yet ?

Do you understand what life is all about ?

It is never too late to seek the answer from God.

“Ask and you shall be given .”

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Pleasure Now Or Pleasure Later ?

Posted on July 30, 2008. Filed under: Financial Issues | Tags: , , , |

There are two school of thoughts of how you should live life and be successful. You were either born into one or you were shaped by your circumstances.

We are told that if you want to be successful and rich in life, we will have to suffer now and scrooge every penny to invest and make more money. We need to make great sacrifices and give up instant gratifications inorder to enjoy more in the future.

Your one dollar now may be worth 20K if you invest it right after 20 years. That is if you are still alive. All those financial consultants will tell you to manage your finances and you will be a millionaire in 20 or 30 years even if you are a lowly office worker.

Look around us and we can see you are either a slave to money or money is your servant. The majority of us are slaves to money , for we want to enjoy first and pay later and we sell our souls to the devil and fall into all sorts of debt traps set by the banks .

Money is always short for this group. The plastic money make it more easier for this group to realize their objective. Spending more than they have and incurring big debts in the process.

Those who want pleasure now or instant gratifications will say that life is short and you do not know how long you will live. You should enjoy while you can and let tomorrow take care of itself.

If you work all your life and keep your money to invest in more land and buildings , what good is it to you except to your children who may fret them away since they do not want to work .Why would they want to work when they have everything they needed?

Today’s generations will not accept the ethics of their forefathers who slaved without knowing how to enjoy their labours. They were just like the ants who worked till they die of old age. All their life, they only know how to work and make more money .

If your parents have build up the foundations, then you will have no problems as the rich will get richer . Like Bill Gates, he does not have to work . When he wakes up , his value will increase by US$20 millions or more . They have more money that they can account for . Such is the disparities between the very rich and the millions of poor people like us who has to slogged 24 hours to earn the meager income just to survive on this planet.

Everyone of us is given only one life and you should have a balance between enjoyment and working . Some people are meant to be rich or fated ,while many can only dream about their riches .

If you are planning to get rich , I wish you all the best. As for me , I may not be rich by this world’s standards but I am happy and contented to be where I am .

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How To Start Living Frugally !

Posted on June 9, 2008. Filed under: Financial Issues | Tags: , , , |

We have no choice with the present circumstances of everything going up .The government of Malaysia recently announced a very steep increase of petrol prices by 41% and diesel by 63%.

Everywhere in other countries, petrol prices are rising like there is no tomorrow. One day the speculative bubble will burst but until then every one of us will have to suffer because of those rich people who made tons of money out of our sufferings.

In Malaysia, not only petrol price has shot through the roof, the power producers have joined the bandwagon by increasing their power tariff.
The worldwide future petrol prices are still rising and nobody knows where and when it will stop. This has cause hardship to millions in the world.

The world prices of petrol has risen because of speculations and not because there is a shortage. With the rising prices, those oil-producing nations are not complaining as they reap bountifully.

Those oil-producing nations could afford to subsidize their oil prices for their citizens while those non-producing countries will have to bear with the steep prices.

Malaysia is an oil-exporting nation but our government tells us that they cannot afford to subsidize the price of oil. We are told that the price may even rise to Rm$4.00 per liter. Then many people will have to eat dirt to survive.

Some of us will have to downsize our cars to those smaller fuel-efficient models and some may even have to ride on two wheels. Others may even have to use leg power like bicycles or powered by batteries. They don’t pay any tolls, petrol, road tax or insurance.

This will have a great bearing and affect on the other sectors of the economy because the cost of transportation will be up and will be pass on to the consumers.

Food prices and all essential goods will have to rise in tandem .Many poor people will have to tighten their belts and those middle class will become poorer.

In Malaysia, we have to pay the income tax, service tax , tolls, traffic summons, parking summons, charities to the police ( when you break the traffic laws),all kinds of business license to the state and the federal govt., assessment tax, toilet tax and whatnots.

Many people will now have to budget their expenses and give up some of the luxuries and minimize the wastage and make efficient use of their resources.

Each of us will have to count our pennies and stretch it as far as it can go. We all will have to go back to the basics like when we live in the 60’s.

We will have to get rid of all that electronic gizmo’s as they consume electricity .Maybe, we should downsize it to a plain and cheap T.V, and a radio for our amusements.

Some may have to give up cable T.V (In Malaysia -Astro), DVD’ player and save on renting or buying those video and musical disc.

We may have to use the minimum lighting or up the temperature of the air-con or simply sweat it out in the heat.

We have to switch off all standby equipments as they too can consume power. Use more energy saving efficient lights, which are brighter, and use less power. Re orientate our body clock to sleep early and hence use less power.

During the daytime, we should not switch on any lights but only use the natural lights. Go sit under the coconut tree to do your readings or do your homework. You do not need the light and the fan because there is the natural light and cool breeze.

Use the barest minimum lightings at night. It is more romantic anyway.
Do not use the washing machine; use the old fashion way to wash clothes.

Eat more raw veggie and save on cooking gas and it is more healthy this way as cooking can kill off those vitamins.

Stay healthy and exercise regularly because when you are sick, you may need to see a doctor which can cost you $$$$ and time.

Try gardening, plant your own veggies, and rear your own chickens. You can get free eggs and meat on your table.

Gardening is a very good exercise and can make you healthy and make you lose weight. It is better than becoming a couch potato.

No more paying for others. We all will have to go Dutch and only pay for our own drinks. Cut down your trips to the kopitiam(watering hole) and make your own drinks at home.

Cut down on smoking, alcohol, movies and other non-essential services and goods.

Stop buying the newspapers as you can read them online.
Ride bicycles for short distances.

Eat more at home than outside, .You can cook simple meals and it is cheaper and more tasty.

Take your bath and do not use soap or body shampoo’s. If you must , dilute the body shampoo into 2 or 3 bottles and use sparingly.

Cut down on your blogging ,save electricity and turned off your pc when not in used.

Do not use toilet paper , use plain soap and water.

Brush your teeth only once a day and save on your toothpaste.

Cut down on your ‘Ang pows”(Red packets , cash in red envelope)and  try not to go to weddings, funerals , births. Act like you have  forgotten about it..LOL!

Be more frugal. Eat well, stay well and spend less!!!

If you have any tips , please share it with us.

Thanks to ;-

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Love Marriage And Money

Posted on December 23, 2007. Filed under: Financial Issues | Tags: , , , |

Now that you are married, how will you deal with your finances? Should you have your own a/c or a joint a/c?

Prudent say, you should have your own secret a/c and a joint a/c. In life, nothing is guaranteed. You do not know if your marriage will last the distance till death separate you apart or you could be sleeping on the streets with just your clothes on your back one day.

After paying the bills and putting money away for retirement, any left over or balance will go into your private a/c .This is your insurance money should anything happen to you or your marriage.

Women can be good financial managers and there are cases where the wife squirrels some nest eggs without the husband’s knowledge.

You cannot depend on the men to save. A marriage is like a business partnership .What he earns is not all his but 50% of his is yours by right as his partner. It is alright to take half his money.Some women take more than that .

Whatever you brought along before marriage is solely yours and for the children, should you leave this world suddenly. Transferring to the man would be a grave mistake.

Most women should say,” What is yours is mine and what is mine is all mine. “ LOL! Power to the women!

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EU Tells Mastercard To Scrap Illegal Fees

Posted on December 20, 2007. Filed under: Financial Issues | Tags: , , , |

This is a landmark decision. Shoppers could save billions of pounds after some credit card transaction fees were ruled illegal. The European Commission ‘s decision to ban Mastercard from charging customers for using its cards abroad.

Mastercard, which also runs Maestro, charges retailers an international interchange fee of between 0.4 and 1.2 per cent for each transaction.
Those banks are charging the retailers a 2.5 % to 3.5 % for all transactions through the credit cards. Most of those business outlets would mark up their sale price because of this cost to the bank.

Those businesses that did not mark up their prices told their customers to pay more, 2.5 % of the bank charges if they want to charge to their cards. The banks then charge the credit card holders 1.5 % per month.

Then there are the late payment charge, the annual fees and sometimes the computer glitch which can charge you more in interest. Those banks can change the terms anytime they wish.

Whether you use a credit card or not, you are paying more when you buy from those large establishments who marked up their goods. If you are a card holder, you are paying double 1.5% + 2.5% for your purchases excluding those late payment charges every month and annual fees which you may not qualify to waive. Some banks have set new terms for a free waiver. HSBC classic card, need to spend RM2K and gold RM4K  in 12 months to qualify for the free waiver . Other banks may need 6 or 12 transactions for a waiver. This is not as harsh as HSBC.

Some banks like Standard Chartered have set new terms, no free 20 interest days unless you pay in full for your retail purchases in that month.. You will be charged interest the moment it is entered into your statement if you only pay the minimum at the end of the month. I hope not all the banks will follow Standard Chartered. S&C has also up their late payment charges by 100%, minimum Rm10.00 or 1 %. Previously, it was only Rm5.00. This will drive S & C credit card holders to other banks…Other banks have not announced their schemes yet.

All those new fees and terms are unfair and arbitrary. We will all have to go back to using cash.

Credit and thanks to;

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Pay Your Credit Card Bills On Time..

Posted on December 16, 2007. Filed under: Financial Issues | Tags: , , |

The government recently recommended to the banks to give incentive to those who pay their credit card bills on time. I have received a circular from Standard Chartered bank . If you pay up before the due date on each month for 12 months, your interest would be reduced from 18% PA to 15% PA.

For every 1K you owed, you would be charged only Rm12..50 per month instead of Rm15.00. This is upon the condition that you do not miss paying your bills late. If you managed to pay only 10 months on time and late for one or two months, then you only get a reduction of 1%.

However, if you are late, you will be charged a minimum fee of Rm10.00 up from Rm5.00. How many of us pay on time every month?

You will have to strive to pay on time every month to get a lower interest charged or you will have to pay more in fines. Darned! The banks on one hand give but take back from others in the other hand. Will they make more money from this scheme? I think it will make more money for them ..LOL!

We were told to pay up early to get the incentive but the banks have added their punishments for those who pay late. It has increased the penalty by 100%!!!

Not only that , Standard & Chartered have changed the 20 day free interest of retail purchase . If you want to enjoy the 20 day free interest, you will have to pay in full at the end of the month all your retail purchases.. If you only pay the minimum, you will be charged interest the moment it is entered into your account.

So instead of encouraging us to pay in time , it has taken this opportunity to squeeze your balls.Oh! Well! This bank card will have to be terminated. Hope other banks don’t follow this route.

Where is the fairness??? This is daylight robbery!


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It Is In Your Genes .

Posted on December 16, 2007. Filed under: Financial Issues | Tags: , , , |

Whether you are a miser or a generous fella is all because of your genes. You are a miser because you don’t have the generous genes. When people say that you are a miser, you cannot help it because it is in your genes..LOL! Being generous is by nature which means a person who is generous is born generous .He has got the generous genes.

Can a miser be generous? It is only possible if there is an earth shattering event that occurs in his life which will change him from a miser to a generous guy. We assume that generosity is the result of abundance, wealth or their culture.

There are those who have plenty but they are not generous. They are hoarders or have the rat complex. They hoard everything whether they are useful or not. They clutter their homes and kitchen and nothing is thrown away. You can see a lot of the foodstuff that is past their shelf life and still adorning their shelves or in their fridge.

They are those who are free loaders who will drink and eat a lot when some generous soul foots the bills. If it is their own money, they will eat or drink the minimum.

If you sow plenty, you will reap plenty. Give and you shall be given.

Those who were altruistic had greater social success because good deeds were likely to be reciprocated. Most religion preaches this and the law of the universe applies too.

If you are not generous, blame it on your genes. With today’s sky rocketing cost of living, it is every man for himself. Every penny counts and people will be stingier than ever.

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To Rent Or To Buy ?

Posted on November 29, 2007. Filed under: Financial Issues | Tags: , , |

Experts tell us it is better to rent than to buy a property. Which is better? I have seen my friends who bought are better than those who rent. Firstly, they have their own permanent place and no one can force them out. They do not have to be like nomads shifting from place to place.

Those renters have to pay a higher rent as the rental has shot up through the roof. If you are renting a place which is almost like paying the monthly installments, would it not be wiser to buy a property than renting. For in the end, if you bought it, it will be yours.

Prices of properties are now sky high. It is quite insane .It is like  a bubble and waiting to collapse. A shop house in the 70’s selling for 45K’s is now worth around 400K’s.This has brought a big windfall to the owner. Those who bought in the 70’s and 80’s have reaped big dividends. They have let their money worked for them.

There will be more and more people populating this earth but land cannot grow and it will be limited. Demand will surely outstripped supply and those lands will become more valuable and appreciate in value. We have seen it happened.

Is buying not a smarter choice? Provided you have the means and could afford to pay the installments. For those who cannot afford, the obvious answer is renting is the only choice.

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Money Can’t Buy Me Love.

Posted on November 25, 2007. Filed under: Financial Issues | Tags: , , , |

Do you grumble everyday about money? The cost of living is rising with petrol up and this will cause many things to go up because of the transportation cost. Food will also be more expensive or you get a smaller amount.

Everything seems to be going up except your salary. Even if they go up, it will still be lacking behind the cost of living and inflation. Your $$$ seems to be shrinking. You get fewer goods and less petrol or you have to pay more for the same amount.

In marriage, there are three main issues, money, sex and power. Money conflicts affect our daily life. Most of us are just average wage earner and we have to juggle and stretch our money to survive.

We have to save and plan for the rainy days. Many today do not have savings for old age because of the sky rocketing living expenses and the servicing of the many loans.

Many are living on borrowed money .Spending today and paying tomorrow. We have pawned our souls to the devils (banks and financial institutions) and become their slaves.

Some of us could be earning a few thousands and yet they are still having financial problems. The poor who earns little can still survive on their meager incomes. The problem is not about having enough cash but in the usage. You need to live according to your income. Cut your clothes according to your size .If you live beyond your means, you will be heading for bankruptcy and ruins.

Many young graduates are bankrupt because they don’t know how to handle money and spend like they is no tomorrow. They follow with the Jones and buy a new car, house and all sorts of gizmo’s all on credit. They fall into the debt trap set by those banks who give them credit cards and loans and they cannot get out.

There are two types of people. The first type, money is their servant while the second type is; they are a servant to money. The first type will be rich as money will work for them .They buy properties and houses and rent them out to make money. The second type will rent those houses and money becomes their masters.

Whether you will be rich or poor will depend on your attitude towards money.

Some people will think it is better to enjoy now because no one knows what happens in the future.

You could be dead and if you don’t enjoy now, you won’t be able to enjoy when you are dead. What is the meaning of life? You work like a robot or machine and somebody spends your money.

Another group thinks money is for rainy days. We don’t know what will happen in the future and we must save some in case they maybe needed. We are still being told to save for our children’s education. Right now, there is a govt. body which gives loans to every eligible student .

Another group thinks that money is for sharing or to give some to the less fortunate ones. Do good unto others and you will reap what you sow. It may not be money but could be health or success.

When you are married, you may have different attitudes towards money and you need to compromise. Do not think and do unilaterally but get a consensus with your partner before you spend your money.

A marriage is like a partnership in a business. You both have equal rights and pull the same weight.

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