Tea with FunShine: Easy Loans.

Here is another thoughtful guest blog from FunShine:

First World Problem - Easy Loan

Received a phone call from a local bank.

They are offering loans at 0% interest rate. I was puzzled. 0%?

Have a bit of time and entertained the call. I asked what are the hidden charges, he added, there is a small admin fee.

I asked how much? He shared it's only $138. I did the maths and it's only 1+% quite cheap.

I asked when is the repayment period? He shared that it is 6 months.

I asked further, so what is the interest rate if people default? He shared that it is 25%.

I thank him for the call. And put down the phone.
With the information, I was thinking, I can take the money and roll it in the stock market. 

However, 6 months is too risky. No point take on this risk. If I am wrong, the interest rate is 25% and will wiped out my earning.

Thinking a bit deeper, I go, how many people honestly got such loan for their wants items?

For friends that have been reading about my life, you should know that I am a very prudent person and try to live a frugal life, just that God has blessed me with many things.

I am puzzled when people need to take a wedding loan, renovation loan, kid education loan and it goes on and on. (AK says "A happy marriage is worth waiting for.")

The only loan that I will take is a housing loan. If not I will take a loan and have my assets backed it up such that if I default, my assets will be gone but I do not need to stress about the repayment.

At the age of 36 and having worked for the past 11 years in social services, you have seen many cases where people made many interesting financial decisions.

I really hope that in Secondary school there is a subject that teaches the youth how to manage their money. As what I find lacking is financial literacy.
I have friends that are middle income and draws a good salary but are living from pay cheque to pay cheque. These are intelligent people but their money management skill is unique. (Read AK's e-book: "Don't depend on wage increases."

Got a bit of time so decided to write on this. Meanwhile, I am happy for that local bank, as I am vested in it. I am trying to collect all the three local bank stocks.

I am just left with DBS. Still waiting for a good enter price.

Have a good day and watch over your income and spending when you can.

First World Problem - Easy Loan

Read more guest blogs from FunShine: here.

Financially free AK should be ashamed of himself!

Recently, I met up with three friends for dinner and over after dinner drinks, I recounted a story.

An ex-school mate of mine upon finding out that I was largely unemployed said that I should be ashamed of myself. 

This was even after I told him that I was not being a burden to society by being jobless and that I was financially free.




"That doesn't mean you shouldn't be ashamed of yourself. 

"You are still young and can still contribute to society. 

"You have wasted a good education which was actually partially paid for by the country."

Wow!!! 

That was something, wasn't it? 

Some serious stuff there to think about.




One of my three friends I told the story to promptly said:

"He is just jealous lah! What's there to be ashamed of? 

"Don't have to work and still have money coming in. 

"Just spend money. Spending money is also contributing to society."




Er, he forgot something. 

Earlier in the same evening, he said:

"Wah, AK. Actually, it is very hard to make money from you."

Yes, AK doesn't spend much money and is very careful when it comes to spending money. 

AK is not like David Gan. (See related post number 1.)

A new past time for me.

So, I guess, 

AK doesn't contribute to society much that way.

Cham. 

Like that, how?




Related posts:
1. To be richer, do not indulge...
2. AK on early retirement.
3. Work because you want to...