Update: PTPTN in CCRIS

5:25 AM

I recently posted on PTPTN & CCRIS. The latest news is PTPTN loans will not be entered into CCRIS after some input from the Cabinet. It is a welcome relief to some but this is a wake up call.
Personally, I have had no experience with PTPTN but I have heard a lot of negative comments regarding PTPTN. I won't comment any further about PTPTN as it can get political.

The "wake up call" I am referring to is regarding newly employed graduates from all fields. Throughout my short life span I have seen all kind of people trapped in debt and pensioners with inadequate savings to last through their remaining years.

When I was a houseman, I didn't get my pay until the 3rd month...in one lump sum. What would a kampung guy who has never seen that much money in his account do? Splurge it on all sort of luxury stuff of course! The first thing was a flat screen TV! I already applied for a credit card back then. At the back of my mind was, "swipe je dulu, duit ade dalam account. Sure tak kene interest".





Sure enough, no interest was charged but I spent almost RM 7,000 in a month! Fortunately I quickly realized my faults after that. Some are not so fortunate. The same cycle continue month after month. Now that I have become a bit older and wiser, I have a few things to share with newly grads, especially new HOs.

1. Save for your retirement from your 1st pay check
Yes you are still young and have a looong way to go. No, your EPF will not be enough. Most people think their EPF will be able to sustain their life after retirement. I quote from Azizi Ali's excellent book Retire Rich;  
"At the end of 2004, 90.7% of EPF contributors had less than RM60,000 in their account"

Assuming that you retire at the age of 60 with an average lifespan of 80 years, will RM 60,000 last 20 years, taking into consideration the inflation rate. RM 10 may get a nice juicy Burger Bakar today, but in 10 years you might just get the bread for that money. So, always set aside a portion for savings.

2. Start investing NOW
Start reading and learning on all modes of investment. But remember, DO NOT part with your money without fully understanding your mode of investment. There are hundreds of SCAMS out there. Be EXTRA careful. Property is great investment but make sure you know it well. Don't just tibai. I once invested in a property in Shah Alam, just because people say it was cheap and others are buying it. It was a great price to pay. There was no tenant for close to a year and had negative cash flow. Even with a tenant, the cash flow was just RM 50. So DON'T invest just because others are doing it.

3. Don't get into debt
If you need a car, get a car that can get you from A to B. No need to get expensive cars and modify it. I had colleagues who bought high end cars but at the end of the month always end up short of cash. Protons or Peroduas aren't that bad. If you are up to it, get a 2nd hand car. It can be risky though. My 2nd hand car broke down after only 2 weeks of use with repairs costing RM 2000. However, the dealer covered all the costs because of a warranty.

This topic may be boring for some but I can't emphasize enough. There are just to many youngsters out there in too much debt. I am not a specialist in this field but I share what I can.

More sizzling stories after this....

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2 comments

  1. try this!

    http://power.akpk.org.my/

    it is an online portal teaches you the very basic of financial management.

    and you will get a proper certificate after completing the modules!

    ReplyDelete

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