Wealth Building, Retire Early, Personel Money, Financial Planning, Saving Tips
Recently, I pay much concern about inflation as being ROBBER of wealth. Inflation steal your wealth silently and naturally without your concern. Inflation being your biggest enemy on your pathway to get rich slowly.
Price of goods increase double in 12 year times with inflation rate of 6% per year. In other words, your purchasing power decrease half with the same amount of money.
Inflation is our biggest enemy in building wealth. If you neglect the existence of inflation, you definitely end up being poor or middle. If you still wonder what inflation is, you may refer to my previous post.
Inflation is wealth stealer. It steal your money silently and unconsciously. You might not aware of your decreasing purchase power in one or two year times but it make a large different in long term, let say 10 years. 10 years ago, 1 plate of mee in my hometown sold for RM1.30. Now the same plate of mee sold for RM2.30. Nearly double! Price of goods doubled every 12 years with inflation rate 6% per years.
PTPTN (Perbadanan Tabung Pengajian Tinggi Nasional) is a government loan to all Malaysian that wish to forward tertiary education. I had loan RM21k from PTPTN with RM3500 each semester. Honestly, PTPTN ease my life a lot during uni times although the loan for each semester is just BARELY enough. I have to bare with KL entertainment lifestyle. I’m not going into detail how you spend the money.
Recently, I had checked the PTPTN website to get some information of repayment. Sadly, the admin fee aka interest charge stated is still 3%. Isn’t the admin fee had adjusted to 1% start from January 2009 which postpone from June 2008 already? ..!..
Inflation is the biggest enemy for those who do consistent savings. Inflation make our money less value and thus decrease our buying power. You can buy less thing with RM5 today compare to ten years ago. Using daily consuming food as example, we can have two plates of mee with RM5 ten years ago but today we can buy less than two plates. This is inflation!
