How did AK's student go from zero to hero?

Some know that AK was a teacher and continued teaching as a private tutor on and off for many years. Tutoring was one of AK's jobs for a few years when he was holding on to 3 jobs in his younger days, working 7 days a week. 

Looking back, it does seem unbelievable but it really did happen. 

Some might think that AK was really money grabbing. Well, in a way, I suppose. 

However, I really did enjoy teaching and, so, tutoring didn't feel like much of a chore for me. I even tutored 2 students for free for 2 years before they took their PSLE because their families could not afford the fees. So, it wasn't all for the money, I guess.

Anyway, some time back, I met up with one student who decided to help out in his father's business selling t-shirts. It is a difficult business. More and more people buy cheaper and more fashionable clothing online these days. It is one of those businesses that are badly affected by the online shopping trend. AK told him so.

Maybe, it is due to filial piety and some other reasons which the student would not say, he decided to continue helping his father. However, he did say that he was worried about his own finances because he was not paid a lot and he would like to buy a 2 room HDB flat when he turns 35 a few years later.

I asked him how much was his take home pay and found out that it was $1,500. 

I asked him how much was he saving and found out that he saved next to nothing.

I told him he was not going to be able to buy even a tile at that rate and he nodded, eyes reddened.

What could AK do? 

Nag lor, as usual.

Recently, I met up with the student again and he felt better about himself.  

What happened? 

Apparently, he paid attention to AK's nagging.

1. He quit smoking. Well done! AK told him he was burning away money literally now and in the future by smoking. He still had a deep throaty cough that wouldn't go away. That is worrisome.

2. He no longer buys Starbucks coffee or Gong Cha bubble tea. Well done! Do you believe me when I say those drinks are bad for our physical and financial health.

3. He has been stashing away a minimum of $500 a month in savings. Well done!

Although he felt better about himself, he was still feeling inadequate with a savings rate of $500 a month. It was obvious to me that his self esteem was still low. That's not good.

So, I told him earnestly that for someone who was taking home only $1,500 a month, saving $500 a month meant a 33% savings rate. Compared to someone who took home $5,000 a month and saving $500, all else being equal, he was doing a phenomenal job. 

That cheered him up.

Always keep the big picture in mind and if we can only take baby steps in the beginning, take them. Don't forget. Every step brings us closer to our goal. Every bit adds up.

All of us have different circumstances. Doing the best we can and doing better over time is what should matter to us and I was so happy when I heard his parting words:

"I will try to be a better person and do better each day. Thank you."

Don't want to be a zero? Well, all of us can be a hero. We just have to zero in on the right things.

If AK's student can do it, so can you!

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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.