Today we have a reader, Wan Rahim who would like to share his ups and lows of his financial. He was glad that he could express his hurt feeling, the regrets which still playing in his mind, whenever he thought of how he have wrongly managed his money. Sadly, the time cannot be reversed.
His Story
Lows
1. I failed to make some savings.
For your information, I am also one of the UTM alumni just like you. Cheers. During university, I was fortunate to be one of the full scholarship recipients. However, I was not practicing what have been told by my parents to save and set aside some money before spending. All the money was gone and slipped away so easily.
2. Car is a symbol of richness.
When I was chosen to join government job, my first instinct was to impress my friends. So bad. I was thinking of driving a better car made me feel a sense of superiority. So I bought a car that totally out of my affordability. I did not consider the other expenses to take care of a car. What I concerned was all about the monthly commitment for installment.
Luckily at that time, I was single and no liability for the property. My salary was only going to my parents, siblings, daily expenditure, zakat/charity as well takaful. No savings at all. I really suffered every time my car was needed to do major services, road tax, and insurance. Therefore to cope with it, I was persuaded to apply for a credit card. It was really a bad experience.
I have wrongly managed the usage of credit card. Only committed to settling the minimum payment. So the outstanding balance was growing tremendously. I was lucky finally I have made a full settlement of credit card after two years. Thanks to marriage life. It has made me more manageable and my life was back on track.
Ups
1. I am very grateful that in 2016, my life has changed dramatically.
I have learned a lot on financial management via radio, blogs, and finally books. It has been a long time since I managed to read books completely. The year 2017 turns my life with flying colors. Till now, proudly to say that I have accomplished to read six financial management books including KC Lau Financial Tips book.
As I am educating myself I came to realise that financial management plays a big part of my life now. Whenever I found a bookstore, first thing across my mind is to find a new book on financial management. Seriously. Now I can easily to save and set aside 15% of monthly salary goes to savings. 5% for investment. At the same time, I am serving two loan instalments – two terrace houses (1 rented, 1 for my parents).
2. Every day, I repeatedly tell my kids to save their pocket money first before spending. I am very hopeful the children will do the right thing.
Your Feedback
We hope that this story can be a lesson to other readers and should you have your own story, you can either comment below or send us yours to kclau@kclau.com.
4 replies to "What Were My Financial Mistakes When I was Younger?"
I am lucky to found your blog during my study time, before I start my working life.
Now I can avoid all these financial trap and achieve financial freedom sooner than expected.
Thank you KCLau.
Dear LifeIsHot, there is not much difference between government servants and non-government servants in financial management.
I was a government servant too, the housing loan interest rate is low, probably 2-3%, but it requires you to fully settle it before quitting government service, and you will tend to buy a more expensive house in view of the low interest rate, hence huge amount of installment to be paid monthly.
As we know, big amount of installment is hazardous to our monthly cash flow, subsequently reduce our ability to save and invest. House and car are necessities, but not fancy house and branded car.
He is government servant, sure have lots of privilege on buying house.
I want to hear story from non-government servant, it will be more feeling of consensus to me.
totally agreed. fallacy of a branded car as a status symbol learn when we can least afford. learn from past mistakes avoid falling into the money trap