Another Personal Finance tutorial by GenX @ http://www.GenXGenYGenZ.com

Update April 2019

Below are two screenshots taken from RHB Website in April 2019 which is damn misleading (or maybe a more appropriate word is irresponsible)  giving the impression that is is okay to be in debt if you have no money to go holidaying!!! And the joke is RHB is own by the government indirectly as the major shareholder is EPF!

15% interest rate Bros & Sis! I tell you, your credit card interest rate may be even lower if you pay off your debt sooner.

I tell you, Personal Loan is the fastest way to being poor. The moment you sign on the dotted line you are already poorer by the same amount of the personal loan amount PLUS interest!

Unfortunately our government (previous BN and current PH) don’t give a damn and have not taken steps to educated the Rakyat on the detrimental effects of Personal Loans. Yes, politician talk this and that but no actions to help the Rakyat by educating them.

If the Education Minister really wants to help the Rakyat, instead of implementing black socks and shoes, he should instruct that Personal Finance subjects be taught in secondary schools.

I tell you, all those so called Finance Websites that recommend Personal Loans are parasites as they make money promoting Personal Loans by the banks. On one hand they try to teach you how to save money but on the other hand they are enticing you to sign up for Personal Loans.

I have mentioned in my article titled Be Prepared For Tomorrow So That You Can Sleep Soundly (click here to read it) that the secret to being rich is not how much you earn but how much you save.

Whatever it is, do not apply for Personal Loans. If you are in debt, suspend your credit card accounts and go find ways to increase your income, e.g. be a part-time  Grab Driver (no kidding) or a part time waiter.

If you are really in the shit hole of debt, DO NOT opt for Personal Loan to pay of you credit cards’ debts but instead seek help from AKPK.

The contents below is to educate you so that you won’t be fooled by the banks and tricked into the shit hole of debt.

Below contents were published in February 2018

For years I have been telling you guys that you should avoid loans with upfront interest and I have produced several articles on it.

Basically most, if not all of my articles is about not paying a sen of interest to the banks. I keep reiterating this over and over again – Do Not Be A Slave To The Bank. Instead I teach you guys about compound interest where if you constantly save money and deposit it into FD, by depositing a mere RM300 a month, you will have RMxxx,xxx.xx in 20 years time!!! If you have not taken my FREE Fixed Deposit Tutorial 2018 – it is to your own benefit that you click here now and read it.

If you follow the principles that I have kept repeating over the years, i.e. no debt so that you are not paying a sen in interest to anybody and depositing regularly into FD for your retirement and together with your EPF savings, you will have a comfortable retirement. Of course you will remain financially challenged if you constantly burn your money on non-essential stuff like holidays, fashion, gadgets, up sizing to a bigger home when you should be down sizing as you are near to retirement age and eating at Korean, Japanese and Western restaurants instead of One Ton Mee at the road side, hahahaha.

If you still do not comprehend the above, go talk to a rags to riches old man and I bet he will be more than happy to share with you how poor he was and how he saved and saved every penny. And if you observe carefully, you will see him pay for everything in cash and he will never ever buy a cup of exorbitantly priced Starbucks coffee. But the sad part is, he doesn’t know how to spend his children’s future inheritance, hahaha.

Anyway, recently I published my thoughts on how one can save 20% of his/her PTPTN Loan by utilizing 0% Balance Transfer Plan. For years, I will only teach you guys how to utilize 0% Balance Transfer and never ever asked any of you to sign up for any Balance Transfer Plans that impose 0.01% or more upfront interest!!!

However, it has come to my attention that some of you still do not comprehend that so called “low” interest rate offered with Personal Loans and/or Balance Transfer Plans with upfront interest makes you poorer instantly!!!

Below is a comment recently at my Facebook:

In respect to the above comment by one of my Followers, here are my comments:

• Firstly, if one is to go with 3 years BT Plan, it means that person is tight on cash.
• The person who opts for the 3 years BT Plan will be instantly poorer where he/she will immediately make the bank richer with the upfront interest.
• PTPTN interest rate is freaking low 1% to 3% on reducing balance.
• 36 months is a very long time. To start off with, this person is already tight on cash. What if the person suddenly cannot settle his/her credit card Statement Date in Full? He/she will then be imposed 18% interest!!!
• Therefore, if one cannot settle his/her PTPTN loan in full to save 20% by utilizing 0% BT Plan where he already has the cash in his savings, he/she should just repay his PTPTN loan via Direct Debit and save 10% which is basically risk free from being imposed additional interest up to 18% with credit cards.
• Khiang Ko Ho, Mien Keh Khiang.

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