Tuesday, May 20, 2008

Cash, Card or Loan

Question.
Are you a cash, card or loan person?


I'm not talking about nasi katok or teh tarik that's worth few dollars, nor Toyota, Honda or BMW and even a house that will cost you an arm or a leg.

I'm talking about.... erm... few hundreds to few thousands items such as... maybe mobile phone, computers, laptops or even a sliming package.

I'm more of a cash person, or sometimes card.
I feel super insecure when it comes to money and spending money from the "future" is never my kinda thang.

If I want something, I will save ... and save... and save... until I have enough (sometimes even extra) or, I gave up the thought of owning it. I put in a lot of considerations the items cost more than what I classified it as "Expensive", be it a bag, a watch or perfume...

(Wait a minute... all my watches cost less than $20 and my only so-call "branded" one is a gift from the fat guy. And as for perfumes, I really do think I stink that's why all my perfumes were gifts given too. Not proud of it but yeah...)



But once a friend shared me this "theory" that had never once hit my brain.

I was asking him why do people prefer loaning stuffs. Mobile phone they loan for 3 years, laptop loan for another 2 years, furniture, car parts, all those ki-li-ka-lak.... Why not save enough and buy it? I mean, I do think its better that way because there won't be any worries if overspend or something happen and the money allocated for paying loans need to be use. Loan money to pay for loan again?

And he told me this.

"With the same amount of money plus a little bit of interest, the person can enjoy all those things he wants simultaneously.

How long do you need to save if you want a home theater system, laptop, then a new mobile phone? Let's say a year for both of them, you have to wait one year in order to get them. But for those people who loans, they can happily enjoy their gadgets while paying for it. So why wait?

Different people has different perspective."


Well.. True that.

While I have to kasian-kasian save money from not eating what I feel like eating, tahan myself from not buying cloths and shoes, others are living lives like tycoons!

I'm just too sensitive when it comes to Vitamin M.

I remember that time when I was about to buy my car, I even made an Excel sheet having formulas calculating "If I pay this much for down payment, then loan the rest for n year, then the interest I am paying is _______".

Kiasu, but effective.

Some people thought of what they can afford in a month but care less for the extra money they paying, and these are the people I don't understand. They think "$300 a month. Hmm... Ok, I can deal with it", and not... "OMG! I'm paying extra $3k just for the interest a year!".

o_O ?

Sometimes I really wonder how can these people afford all those things that seems so far away from me when we're earning almost the same wages, some even less than me! I often look at them enviously. Why they can go makan-angin just like that and I susah-susah go KK also feel payah?

Is it their method of financing?
Or is it just me being too uptight with money?

I don't know. But one thing I know is that I will not change my spending habits, even if I can only touch and feel other's punya Gucci bag or Burberry wallet and keep bugging them telling me stories about their exotic trip. I feel proud of being a scrooge because mama taught me

"SAVE FOR A RAINY DAY"


I'd heard scary stories from friends about people who borrowed money just to buy branded stuffs to feel good about themselves, but couldn't even come up with the money when their parent was sick. How pathetic can that be? This is what I call "extreme cases".

There are families who manage to survive with few hundred dollars of income and also people who earn thousands yet had their cars towed to the car yard.

Come on lah, money is never enough for all of us.
It is just how we plan ahead and finance our money that keeps us safe and moving on.

Of course, how you want to spend your money is none of my business. So don't go spamming my comment box or tagboard telling me off just because you "ter-rasa".

18 comments:

Anonymous said...

Money issues are base on each individual person's prospective of 'How I would like to live my life?' (With or without a safety net - Extra Money). You may be a 'scrooge' but others may want to lavish their lives with the many material things available. In the end of the day, as long as they are not spending / borrowing money from you, I doubt this should be of any problem to your bank account.

Nonnie King said...

Anonymous : You're right =)

JaMiLLa said...

I had been thinking this LOAN program too!

Enjoy laptop together paying it? Or save for laptop money first? Tapi I felt "BU GAN XIN" let bank earn the interest which is almost half of d laptop amount.

Remember papa told me his principle, "Spending anything that you can afford it, not you want to afford it." Thats depend on our MONEY ABILITY!

I'm Choonie. said...

I never count my money, not that I don't care. I spend only for things that I need. If I am buying any extra things, it has to be in my affordable range. Have to think many many times before I buy. Even now, I want a Hush Puppies leather shoe but RM180 is just too much. I never buy a pair of shoe at that price.
I like to use my credit card too but not to buy with future money. I know I have the money in the bank but paying with credit card will gain me points and I can exchange it for other gifts. I like the feeling of taking the things first and pay later. But when I receive the bank statement, I dare not look at the sum. Thank goodness I sign-up for autopayment.

My principle is don't borrow from others to buy things that you don't need. Always spend wisely. Don't count your money in the bank. Your money should be uncountable. :P

CiliQueen said...

It depends on the mindset..and maybe even the way you were brought up...if you know hardships..then you will know how hard it is to earn $$$ and you will spend wisely..unless you were born with sliver spoon-neh ;))

effy said...

I think i'm more of a cash person because i don't have a card and i'm not entitled to loan yet. Haha. Of course maybe for a car or a house then yes i'll probably go for it.

Anonymous said...

Haha~
I love your sarcasm.

Anonymous said...

Jamilla,

Apply SCB Credit Card to use their 0% installment plan to purchase a laptop. its worth

Nonnie King said...

Xiang : HAHAHHAA!Yes, Bu-gan-xin is always the keyword stopping me from "getting stuffs while enjoying it".

And, I love your papa's principle.
Very useful.

Choonie : Sadly, my bank book shows the balance in figures and I can count the digits in it. *sniffs*

Apalah.. POSITIVE NONNIE! STAY POSITIVE!

I use my c/card to pay bills and utilities to gain points too.
=D

Must refrain myself from impulse buying while having c.card in my wallet.

Ciliqueen : Yeah... neh... I'm born with wooden chopsticks.

Nonnie King said...

Effy : Great minds think alike. =p

Anonymous @ 1.07am : Hahahha. Some people find it offensive.

Anonymous @ 8.02am : You work in that bank? Just kidding.

anakbrunei said...

Nonnie if everyone thinks like you financing companies will go out of business hahah! While I agree with your mama's principles (my mama also is a foochow wat! hahah), I believe a sensible balanced approach to financing and financial planning is sensible.

I've hit rock-bottom before due to poor financial planning and the buy now pay later attitude. Thankfully I've been able to bounce back and get my finances back in order again.

With a family to feed, hitting rock-bottom is that much more painful... trust me, I know this too well...

uglyfatchick (Chicky) said...

Cash, cause I don't have card and no need to loan yet. I don't think I'll get a card, but if I do, It'll just be for the points or benefits and I must confirm that I have the money in my bank first, so that I don't have to pay interest. :p

But I'm really lousy at saving and I've been spending a lot also. Bad habit.

Nonnie King said...

Reeds : Foochow Rocks! Glad to hear that you have bounce back from rock-bottom and get your finances back in order.

Very soon it will be my turn.

All my money waving bye-bye soon for me in one go.... Sigh.

Chicky Christina : And.. I guess its better for you to stay that way. Don't get any card if you can't control.

Drifting Cloud said...

Well nowadays with those attracting loan available, 0% installment ( they still charge a 3% service charge initially on the first month, so not really 0%), a lot of ppl did sign up for a lot of loan and ended up paying endlessly and left with nothing in the pocket.
But I guess ppl have to learn to judge properly before signing up. For example, what are the chances you would still use the same mobile phone after 3 years? But yet you sign up a 5 years installment plan?
I did sign up for installment plan for my laptop and tv. But gonna to finish paying soon. Next planning to get one KENWOOD Mixer under the installment plan as well. HEEEE

Anonymous said...

no for me to say this, but i think you have colleague who explain to u the joy of LOAN .. somewhere in your past blog.. but still whatever method it is .. spend wisely is the key ..:P

JaMiLLa said...

anonymous
Thanks for ur suggestion. I heard about this 0% instalment plan but never dare to ask the detail. Im still a no-credit-card person. Will think about that when I got one in the future.

AH? Reeda is also half of FooChow?? Now only I know ah. No wonder he answered my replies in Chinese. Ada Chinese blood ah! Sorry ah my satellite is not big enough, always receive late news ah.

Anonymous said...

I'm a saver, while my other half will spend beyond his means..the difference? He's always broke, while I can afford to treat myself to holidays and things when I want to..it pays to be a saver and not a spender, in my books :)

Patricia said...

Well, I do spend alot.. But I always bear in mind to save no matter it's just a 50 or 100.. Coz like ur mama said we have to save for rainy days.. Especailly when it comes to being sick.. Finacial issue on health are really a big problem to those who are not rich..