Malaysians, by and large, are very pessimistic lot. They see everything as half empty instead of half full. The paradox is that with such uninspired view of life, they choose to ignore or to half ass the plan for their retirement. Maybe just maybe, they have such a uninspired outlook of life they need to drown their sorrows with splurges that they never need.
Lets start:
1: No plan
I am utterly dismayed that so many of Malaysians have absolutely no plans for the future. Their route is always the same; get a job, save, buy a car, buy a house, get married and live until you die of old age. They never seem to be able to plan for any emergency ( lay-off, death, sickness). When this emergency happens, they tap the easiest ( and also costliest) credit they know. which is the credit card. Stupid is it not? Then they spiral out of control into a mountain of debt.
Even more astounding is the fact that they have absolutely abysmal knowledge of how to grow their money to beat the inflation that is inevitable. They do know on a very basic level-buy property and rent lor, become "millionaire landlord" mah, buy stock wait for goreng. I cant seem to facepalm myself enough when i hear these two statements. Utter stupidity when you consider these "millionaire landlord" are bleeding their finances every month by buying a property so high in price that their bank installments are higher than the rent itself. No positive cash-flow. ( factor in the maintenance, sinking fund and income tax, it would be even worse.)
2: Not wanting help
Malaysians in general do not seem to want help in their finances. Yes, they know that they are in debt, but they will not seek help until it is too late; and even after bankruptcy, they still do not want help!.
Example would be how many people are "investing" or i call gambling in the stock market instead of utilizing the mutual funds that are available out there. These fund managers devoted their life to understanding the stock market and are fully qualified to make investment decisions with at least some form of fundamental analysis and/or technical analysis.
But what do Malaysians do? Invest in the stock market based on tips they get from their neighbours' cousin brother who works in MOF that overheard the pantry lady talking to her nephew's wife that xxx stock will rise soon.
I mean really? Give you an analogy. Assume that you have cancer. Instead of going to the doctor, you decide to read a few books on how to perform surgery, and after hearing about some guy in africa who performed the surgery and survived, you decide to do it yourself.
With a butcher knife.
3: Health care dichotomy
This is more of a grey area but Malaysians seem to underestimate the impact of their health on their long term finances. They either buy insurance that under protects them in terms of emergency and during their old age. How much money you need to survive now, I guarantee you that by the time you hit retirement, with your income gone and you need MORE money for medication, you will suffer.
Maybe Malaysians found the fountain of youth so that is why they are not worried about insurance.
Lets start:
1: No plan
I am utterly dismayed that so many of Malaysians have absolutely no plans for the future. Their route is always the same; get a job, save, buy a car, buy a house, get married and live until you die of old age. They never seem to be able to plan for any emergency ( lay-off, death, sickness). When this emergency happens, they tap the easiest ( and also costliest) credit they know. which is the credit card. Stupid is it not? Then they spiral out of control into a mountain of debt.
Even more astounding is the fact that they have absolutely abysmal knowledge of how to grow their money to beat the inflation that is inevitable. They do know on a very basic level-buy property and rent lor, become "millionaire landlord" mah, buy stock wait for goreng. I cant seem to facepalm myself enough when i hear these two statements. Utter stupidity when you consider these "millionaire landlord" are bleeding their finances every month by buying a property so high in price that their bank installments are higher than the rent itself. No positive cash-flow. ( factor in the maintenance, sinking fund and income tax, it would be even worse.)
2: Not wanting help
Malaysians in general do not seem to want help in their finances. Yes, they know that they are in debt, but they will not seek help until it is too late; and even after bankruptcy, they still do not want help!.
Example would be how many people are "investing" or i call gambling in the stock market instead of utilizing the mutual funds that are available out there. These fund managers devoted their life to understanding the stock market and are fully qualified to make investment decisions with at least some form of fundamental analysis and/or technical analysis.
But what do Malaysians do? Invest in the stock market based on tips they get from their neighbours' cousin brother who works in MOF that overheard the pantry lady talking to her nephew's wife that xxx stock will rise soon.
I mean really? Give you an analogy. Assume that you have cancer. Instead of going to the doctor, you decide to read a few books on how to perform surgery, and after hearing about some guy in africa who performed the surgery and survived, you decide to do it yourself.
With a butcher knife.
3: Health care dichotomy
This is more of a grey area but Malaysians seem to underestimate the impact of their health on their long term finances. They either buy insurance that under protects them in terms of emergency and during their old age. How much money you need to survive now, I guarantee you that by the time you hit retirement, with your income gone and you need MORE money for medication, you will suffer.
Maybe Malaysians found the fountain of youth so that is why they are not worried about insurance.
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