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What can RM100 so?  Unlimited rides? More, actually.

What can RM100 so? Unlimited rides? More, actually.

I think many people love our new Transport Minister Anthony Loke because of this statement, “Unlimited monthly public transportation pass to come on board early 2019, says Loke.” That article was in TheEdgeMarkets.com.  No, not just those who are taking the public transport today. It will also include those driving to work whose office are a couple of hundred metres from the LRT / MRT / KTM etc and is today losing so much of their cells due to traffic jam stress. Seriously, did you know that Stress kills Cells? Even brain cells! Click to read what Scientic American publication has to say.  I take the MRT once every week these days and frankly, when I do not have much appointments here and there, MRT is okay for me! So, what can this RM100 public transportation pass do? Let’s look at the potential for property market first shall we? This is more for the Greater KL property market yeah.

Property market with RM100 Unlimited Transport Pass (UTP).  Instead of spending a typical RM600 per month for petrol, toll and parking, it’s a RM500 savings! Did you know that if we put all this RM500 into the mortgage payment, we can afford to buy a home which is RM100,000 more? Technically, it’s possible for one to move up from renting a place or a room to owning an affordable property. It is totally possible from owning to upgrading. In other words, if one wants to stay more comfortably at a bigger place for example, that’s possible. Last but not least, from upgrading to investing! (yes, a second property). When it comes to owning a second property, that’s a whole new exciting story!

Okay, what happens if one is not driving then? A typical daily budget for public transport should be lower than RM10 per day. (Just to and fro home to office and not when one goes for shopping, eating etc and needs to pay more)  We assume it to be RM8 per day, that’s RM8 x 30 days = RM240.  In other words, one could easily have another RM100 every month which could be spent on something else! It could even be into a unit trust which could transform into lots of money. Take a look at some simple calculation of putting in just RM100 per month for 5 years. Over RM7k is very good money yeah. It could be spent whichever way one wants it or just continue doing the same thing for the next 30 years, the money would have tripled. RM100 x 12 months x for 30 years is RM36,000. Compounding interests would make the figure to be higher than RM100,000. That’s the power of a small RM100.

Before everyone thinks all the money MUST be invested, well why not we spend it? We could become a happy consumer too. There’s really no end to the things that we wanted to buy anyway and this RM100 per month will come in handy. This will provide a multiplier effect to the retail sector which is good. Then the employees in the retail sector would earn more money and well, buy even more properties. Haha. Anyway, do remember that not spending for petrol, toll and parking does not mean one is not buying a car yeah. Malaysians love to have a car. It gives convenience when they need them. Maybe in the future, we may forget cars. For now, unlikely. By the way, most Singaporeans would love to own a car too if the price and associated costs could have been lower. Not everyone loves to carry two shopping bags to take the MRT and standing for the next 40 minutes yeah. We have not even started with what happens when they have a baby. Taking the MRT with a baby or kids? Frankly, it’s not that friendly yeah unless it’s not the usual rush hour. Waiting for that RM100 plan to be executed soonest possible. Maybe if YB Anthony saw this article, he will implement this faster? It’s good for the economy!

written on 1 Aug 2018

Next suggested article:  How to invest when we are used to spending since young? Parents, take note.

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