Money Slave to Money Master by Andrew Lau - HTML preview

Chapter 2: Debts and I

My Working Life

I graduated from university and soon got a job. I was working in my University College (upgraded from college status) as an officer of Student Services Division. In fact, that is my first encounter with debts. I was bonded for 1 year as part of the repayment scheme for taking a loan for my final year studies. Yes! I got in debt even before I start working. Luckily, it was a 0% interest loan.

Part of my salary will be deducted to pay off the loan. I continued to work there for another year and financially, I was doing fine. I had no debts after the 1st year, accommodation was provided because I was the hostel warden.

I had no car so I don't have to pay for car loan and petrol. In fact, I was financially sound that I changed my mobile phone every 6 months! (FYI, I only buy 2nd hand mobile phones)

I had a total savings of about RM12,000 in my bank account the day I left Nilai for another job in Petaling Jaya! That is when my expenses increase and debts started to appear in my life.

Although I had been offered a nice paycheck for my new job, which I was excited about it, my expenses also increased. Now, I had to pay for rent, transportation to go to work, food are more expensive now, I had to buy new working attire and such.

I was still doing quite well before I got myself a car - Perodua Myvi 1.3 EZi

My First Car

It was about a year before I bought my first car. I carpooled with my housemate and luckily his office is about 200 metres from my office.

Sometimes, I had to take taxi because my working hours is crazy. (FYI, I was in event management) So, owning my own car would be a good idea as I can travel around easily.

My monthly salary was about RM2,700 (gross) at that time. I was looking for a decent car that is not expensive. Ultimately, I chose Perodua Myvi because I used to ride in my housemate's Perodua Myvi. It is a spacious car with good review.

Oh, let me get it straight. The car didn't get me into debts; the car loan is the culprit. I went to the Sales Office and talk to the salesman. I told him my objective - cheap and nice. Then he showed me this promotion from one of the local banks. It is a "Step Up" plan.

Step Up Plan

A plan where you pay less at the beginning of the tenure and it gets more and more expensive as you go.

Of course I was so happy because it fulfills my objective - CHEAP! During that time, my con