Wealth Building, Retire Early, Personel Money, Financial Planning, Saving Tips
All the time we are talking about inflation. All things is getting more expensive. Is that really all things getting expensive? I don’t see IT gadgets become more expensive. I don’t see books getting expensive. I don’t see cloths become expensive. I ONLY see food become more expensive! Do you agree?
Inflation is our wealth silent killer. Inflation effect our buying power. We never can eat roti canai with 60cents, kopi with 70cents, a economic rice with rm2.50, petrol with rm1.80 and etc. All you can get is roti canai with rm1, economic rice with rm3.50, petrol with rm2 plus (most probably within this year). If you ever dare to neglect inflation, definitely you will regret for not knowing it when you are old.
Although the salary increase gradually for the past ten years from RM1000++ to RM2000++ now but the buying power isn’t increase at all. We are actually in the same place, buying same thing with bigger amount which compensate the increase in salary.
20 cents per kilogram price increase for sugar means what? It means 20 cents increase in each glass of “Teh O” panas also. This is too ridiculous. I drink Teh O Panas from RM1 to Rm1.40 in this 2 years. It is almost 50% increase in inflation. New sugar price being RM1.65 in Peninsular Malaysia and RM1.75 in Sabah and Sarawak.
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? ..!..
