There will be some interesting stories shared by readers from time to time. This one catch my attention and I think it wold benefit you as well. Here is the email from Eidil.

As a a teenager who is on his way to grow up become a man, I live a simple life here in Penang, with a moderate income for just only RM1k plus. I have a big dream of becoming not just a succesful man but I want my self to become a millionaire and maybe a succesful entepreneur or businessman. With nowadays economy, we can not predict anything because we hardly get to know what is going to happen on the next day. However for me, I like to plan anything that I do and follow on schedule. It helps my life to be organize with anything I do.

When it comes about money, some of my friends will call me “kedekut”. Haha.. probably I am. It is easy to say for them who do not have any responsibility towards family and any other commitments. This is because some of them come from a rich family and some of them do not have any family’s debt that have being pass over to their shoulder.

Usually people around my age, around 20s, when they start to work, they will be thinking of buying a new luxury car, find a nice girlfriend, go for holidays and they are thinking about enjoy! enjoy! and enjoy! But not for me, I do not have such life because I’ve been summoned to save whatever i have including money for any emergency for my family.

All of my friends always say to me ” get a life man..” Haha.. that is true because as you might see, what kind of life can I have when I need to save all I got for my saving. It doesn’t matter how much do I earn, I need to save because I do not have any saving which is left for me by my family, not like my friends.

So I’ve being thinking and saving. What did I mean by thinking and saving? Thinking, I’ve being thinking about my life. Why can’t I enjoy like others? Why I can not even change my old motorcyle? Why I can not have such a beautiful lady as my girlfriend? It tooks me about more than a year of thinking about this. As time goes by, I keep seeing that all of my friends are very happy with their life until that moment come.

The moment of changing the attitude. It is all started on one fine day when I “lepak” at a coffe stall with my friends and suddenly one of my friend just arrived. He ordered one milo ice and suddenly he asked 4 of us,”hey have you guys heard about the ASB-loan?”. He explain to us about how we can fill up our ASB book with RM200k and i was excited about it. He recommended us to do it at Maybank because he worked there.

So after that day, one week later, I took my annual leave and went to the bank because I can not stand anymore and just keep dreaming to become the owner of the RM200k. WOW!! Haha.. So on my leave day, I went to Maybank and ask about this ASB loan and they explain to me on everything about it. Unfortunately, I forgot to bring my ASB book, so I need to return back home to get my book and come again to the bank. Well, you know what? Without I noticing that my saving for two years were almost more than RM15k inside the ASB book.

So I decided to do the maximum of the ASB loan which is RM200k for 25 years in just ONE DAY!! Wow!! haha.. By paying to the bank lump sum of the payment for one year, after this I don’t have to worried anymore. So, on that evening, I told my friends about this good news and ask them have you all did it? All of them say NO and they got ask me where do I got my money to pay for the ASB loan? You know the answer, from my saving. I didn’t realize that while I’ve been thinking about my life for the past 2 years, at the same time I already save more than my friends that spend their money for their “enjoyable” lifestyle.

So after a few months, 2 of my friends did the ASB loan, but not like me, they paid it monthly and they did it for only RM50k, compare to me which is RM200k. Because of the saving power, I am now one step further than my friends. Now, I can concentrate on buying gold with my monthly salary while my friends used their salalry to pay the ASB loan.
Again, I am one step ahead from them. However, I still got my friends who ask their “rich papa” to pay for their ASB loan and become equal to me, for me that is nothing because that is his luck. Good for him but for me, I am proud of myself because i am using my own saving money to earn something more big.

So, what I’m trying to say here to fellow readers.. You can enjoy but after you have gain more than you spend. That is my principe. When the time you have money, then everything will come on the spot by itself including girls. Hihihi…

I know some of us might feel unfair for example… I heard a lot from my non-Bumi friends said that Malay are lucky because you have the ASB, Tabung Haji and a lot facilities for the Malay. But, let me tell you Malay also sometimes jealous to the non-Bumi because they hold the power of industry for example in Penang itself. From my point of view, there is no point to keep on blaming and jealous to each other because you know why? We live in the same country here, so we should work hard and build up together our own economy and gain more money by sharing whatever we have.

All the jealousy and envy, for me that is the old minded thinking. I think for me, as an individual, I love to see where all of us sitting down and discussing on how we can gain more money and improve our economy, no matter what race you are, what skin color you have… But, for me when it comes to money, I think everybody have the right on it.

So, lets imrove our economy and money power together.Wrok together and build wealth together for our own future and generations. REMEMBER: Save early cause you can gain more for your compounded power. Ignore others and keep saving and you will satisfied when you see it grows.

Thank you KC for giving me this opportunity to share my story and opinion.

Thank you,

So, if you are a bumiputra in Malaysia, have you taken the loan for ASB investment? Did you have more than RM15k savings when you are 20 years old? Please share your thoughts in the comment section below.


Personal finance author and trainer

    13 replies to "Email from a reader: Save enough to get started with maximum ASB loan"

    • […] parents and only have RM120 monthly commitment for my bike. I had no other investment except some 2k plus in my ASB account. Long story short, I managed to save enough and married my sweetheart in just 2 years of […]

    • Mac

      Hi all,

      May I know is it wise borrowing money to invest? In ASB loan case, the profit margin is very low (<4%, assuming average ASB dividen 8.5% and BLR-1.7% is 4.9%). I am bumi and always keep thinking that this loan is not worth it due to low margin of profit. If the BLR shoot up to 8%, it will eat up entire ASB profit. Am I right?

      Dear KCLau,

      IF you are bumi, would you take the ASB loan?


      • KCLau

        Hi Mac, since you technically didn’t fork out any money to invest in ASB using the bank financing, it means that you are getting “infinite return”.
        Your concern is valid – what if BLR increase and you no longer able to make a profit? If that happens, I think you can just sell all your ASB unit and pay off the loan.
        If I am a bumi, I would definitely take the ASB loan.

    • Ma

      Dear readers, I totally agree that young people should aspire this story. Alhamdulillah at 30now, I too hv maxed my Asb but not via loan; I made my own target to save most of what I earn to make this dream come true. Maybe eidil or kclau can give input on further future investment portfolios for low to moderate risk investors?

    • Yik

      Congrats Eidil for finding your way towards financial freedom. Also quite astonishing that you can save RM15k in 2 years with salary of RM1k monthly! You must be really kedekut haha. As saying goes, “where there is a will, there is a way”, you have saved enough to pay the ASB loan for a year. Congrats again.
      Regardless of race or religion, I think one can still achieve financial freedom if they persevere and be patient.
      I have a Chinese friend who has a Sarawakian Bumiputra girlfriend. His gf opens an ASB account for him to get ASB loan and he max out the loan limit Rm200k+. By the way he is a doctor and he is still driving a 1990 Nissan Sunny. See the similarities in people who is pursuing financial freedom.
      As for me, I’m a Chinese who works with governement, just started working for almost 2 years. As government servant you can get a personal loan with low interest rate (4% plus). I max out the loan limit (around RM250k) and gets a 60% salary reduction from MBSB. I can put everything in AmDynamic Bond fund which yields around 8-10% annually, which is enough to cover your monthly payment. However I’ve chosen to live with remaining 40% of my salary, this includes giving some to my parents. I’ll let the dividend from Amdynamic bond fund compounds itself to become a giant snowball. I’m 26, staying with parents, driving a 13k car I paid upfront with cash I save during studies.
      Considers me lucky to work in government sector. Other way I can think of is to refinance one’s house and get the money to put in safe investment vehicles. Or directly involves in properties, which I may try in the future. Good luck to all in pursuing financial freedom. Cheers!

    • eidil

      Dear all,

      LUCK. Luck is what we believe in, but for me, i don’t believe in luck. Sorry for saying this but it just won’t work for me.However, i do believe in GOD. For me, people who is depends on luck will keep on complaining for the rest of his life.
      “i don’t have any good luck” “i am not lucky as you are” ” you are lucky because your parents are rich. not like mind”.

      Like Robert Kiyosaki said, to be rich, don’t let your emossion get over your brain. Think logically, i know this is not easy but you have to try. For example, let say you always dream to have a Honda Civic car. You start saving for your car and when it is enough, you want to buy the car. But, try do this, before you purchase on anything, try to make a brain storming on the thing that you want to buy.

      Example, car is only a transportation medium for you(unless you are a marketing or sales person, then car is an asset for you), to get you anywhere you want with more easy compare to motorcycle. Plus, after you buy this new Honda Civic, you realized that you only left about Rm1k or Rm2k in your saving account compare to previous where you have RM100k over. So, don’t you feel is just like a waste after all these years you try to save untill RM100k then just for one day, it is gone replace by a new car which is will becoming a second hand car right after the next day you bought it.

      You can buy that car if you have RM150k and the car is RM100k, so you still have extra RM50k in your saving. So, with this method, you won’t feel such a big lost.On the other hand, you can also buy a simple car first and use the balance to invest and maybe do some business to multiply your earning.

      You see, if you can think logically on anything, you will know that everything is happening around you is not because of LUCK. People who depends on luck will keep whining and blaming ( become emossional) his luck, and he just won’t get to anywhere. But people who think logic,he would say ” okay, i don’t have enough money, so what shiuld i do?”, ” okay, i have RM100k in my saving, now what should i do?” “okay,i already have RM500k, what else i can do to become a millionaire??”

      Keep asking this kind of questions in your mind, and then try to slot in into your life routine. Like me, i laways find new investment or anything new that i can make money on it.

      Again i don’t believe in LUCK, but i Believe in GOD, and i believe all of us here do. Just like how i know KC through his blog here. How i know this blog is because since last year, i’ve been looking a lot of information on how to manage my financial and how to make more money. So through my searching on the internet, then i found KC’s blog and start to follow hima and get any newsletter from him. Is that consider LUCK? I don’t think so. It is all come to me after i do my searching on the web and ofcourse don’t forget our Creator, GOD. If i don’t do my searching, can i know this blog? Can suddenly KC sent to me any newletter to my email? I don’t think so.

      However, like we Asian, most of us believe in GOD. Here, we need to go back to the basic. Ask from GOD, He knows better than us . He heard all of us. For me, i believe if we do good to people, we will get the same. Just like in Islam and Quran, stated that, if you do any donation for those who are need, then GOD will return to us 9 times better than what we give to others. I belive, all religion thaught their followers the same.

      Even though we live in this new modern world, but we should not forget on what we believes. We are all the same, nothing differentiate us, we are all been given brain to think and use that as our first investment to get other invetsments.

      For me, in searching for wealth, work hard untill the end, don’t give up and let GOD decide and give the prosperities to us.

      May GOD bless all of us


      • hariz

        i feel so sad when i read your story..i know about asb loan since 2008.. at that time the BLR rate is the lowest (if not mistaken)..i have cash 6k in hand..that time was thinking to buy crap laptop worth 1k and extra 5k invest in asb loan (100k) super brand new power laptop that cost 4k..hye guess what end up bought the 4k laptop m sony experia.. now what is my xperia n laptop value?? how dumb!!

        now i have extra cash in hand and planning to make asb loan b4 blr increase again,,it already increase last year first half, althouh many ppl said blr will stay with the current market condition..i jz dont want to miss the boat anymore.
        but one things that bother me..i planning to make with maybank, but there is rumour that asb loan islamic will be available again soon. may i know from which bank u made asb loan?which type?

    • eidil

      Hye all,

      Dear mohd : Thanks for your comments. I let the dividend pay for me… because i’ve made it as my retirement saving .. 😉

      Dear Edwin : Thanks for your comments. Please don’t get me wrong on this.., what i mean here is.., no matter what race you are in Malaysia, we still need each other. Try not to blame and depends on your luck, because i as a Muslim, in our religious, we’ve been thaught that each people has their own luck, it just you can’t descover it yet or you don’t want to discover it for your goodness.

      Sometimes people not doing well in their studies previously during school time, but they still become succes infact more succesful compare to the best student in their classroom. You see, each people are given their own specialities by god. Actually all we in this world, we don’t have any luck, but we build our own luck. How? By study hard, through meeting many friends, we make friends, humble, always search for opportunities, try to get high paying job and many more.

      Ok now, let say i am still a bumiputera in this country, but i don’t have saving in my ASB account, can i make the RM200k ASB loan for just in a day? No isn’t it?

      What i’m trying to say here is, always try to serch for any medium that you can earn more and give more to you. Benefit them, just like Public Mutual Fund. A lot of my non-bumi friends invest in Public Mutual, and the return is good. FYI, for the last year report 2011, i just go through it and got one of the fund give you 17% return for that year. So, you can use this as ne of your money medium. This also consider as opportunity for all of us.

      For example, you want to invest in gold, but you just don’t know where to start, go and find your luck or rather to call it opportunity where you need to know the agent, build relationship with them, and if things getting better, they might be willing to share with you other types of investment that may be you never heard before.

      Any way, this is good!! I like this kind of discussion where we can share anything for our benefit and give info for others as well.

      Thank you all and best regards from me,

    • Edwin

      Hi Eidil,

      You had your success at saving money at a relatively young age which most of us do not. For that I commend on your success. I know it is not easy to see things 10 steps ahead and you’ve endured all mocks and fun of your friends while they enjoy and you didn’t. And now you are already 10 steps ahead. But in your special case of ASB loan of RM200k, not everyone have the same kind of privilege. I have a best friend who is exactly like you, gone through the same and I am one of the guys who said ‘enjoy! Enjoy! Enjoy!’ but because he is a non-bumi as much as he saved due to family debt and all, he will never be RM200k richer like you in a day. What I’m trying to say is that some have different luck. I’m happy you had yours and shared it with the world. On the other hand, I feel sorry for him because the amount of hardwork he put in, he won’t be where you are and can tell the world about it. Regardless congratulation.

    • mohd

      Dear eidil,
      Do you pay monthly or let the dividend pay for you?

    • eidil

      Dear KC,

      Thanks for upload my story. For all readers, please give comments on this.

      • wilz

        Dear KC,
        Thanks for the article.

        Dear Eidil,
        We need more youngsters like you. Keep it up!

        Some little advises from my personal experiences is, when ever we have any increment or any extra income, increase our savings first, instead of increasing the fund for entertainment.

        we might unable to see any fruitful result in the short term, but as in long term, it worth the effort.

        meantime, we should also balance our life, dont be too crucial to ourself and save whatever income we had. take out a little bit from our income, save for a period of time and pamper yourself, eg: a short trip.


        • eidil

          Dear all,

          Dear Wilz, thanks for your comment on my story.

          Yes i agree with you. Sometimes we need to pay ourself but, however, saving come first then the balance, depends on you, how you are going to manage it.

          Short trip is a good idea!! hahaha…. after all.. money is not everything. But i believe, in this modern world, MOney Can Buy Happiness… Any one agree with me? 😉

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