Back in 2002, an ex-colleague had some good news to tell me. He said, “This is the final month I’m paying for my car installment of RM400++.” Three months later he said. “You know, though I’ve already finished paying my car installment, by the end of the month I don’t have savings left. What happened to my extra RM400++??” This story is very true to most people.
Some people have problems keeping more than RM300 in their wallet and prefer to keep a maximum of RM50 at all times. Reason being… “If I have money in my wallet, I’ll spend it.” Some people refused to have credit cards coz’ they know they’ll go overboard with it. This is all part of human greed to spend whatever extra money we have, instead of thinking of investing for the future.
Back to the issue on having no savings eventhough we’ve finished paying installments. I too have credit card installments on two items (for 12 months) and one item (for 6 months) which for two of the items my last payment is January 2006. I may or may not have the same problem as my ex-colleague above, and I’m not staying around to find out.
My own personal opinion is to create a debt account. My ex-colleague also have this ‘debt account’. We call it debt account, for the reason that eventhough we’ve finished paying our debts, we will still deduct the same amount of money from our income, but instead of paying debtors, we chuck it into an account we will have difficult access to. I have an account to which the bank is obscure. Not that the bank is lousy, but it’s difficult for me to go to that bank on any normal day. UOB Bank is one of that to me, but I’ve opened an account in another bank.
Open an account. Tell them you don’t need anything else other than the account book and strictly no ATM card! Using whatever bank you’re currently using, especially those that have online transfer thingy, every month, just deduct from your salary online transfer it to that bank. I’ve yet to start, but I will this February.
Anyway, for those who have been looking so forward to being out of debt, fine, just give yourself the RM400 for the month directly after debt settlement. Then, the month after, start putting it into a debt account. In one year (believe me one year moves fast!), you’ll get RM4,800 in the bank. Good to buy something needful like a PDA Phone. :P Kidding! Anyway, if we’re discipline enough, we can use that debt account to start another debt (haha!!) by using it as a downpayment for another car or whatever you think is needful but not a wantful (luxury items). Good luck to you, and to me too. Hey, look at it this way, if you could live while in real debt, you can surely still live in virtual debt. :D