We have a degree. We have a good job. We saved money. We bought a new Segment B Japanese car. There’s the Vios, City, Mazda 2 and the Almera. We drove it to a friend’s party. How likely will all our friends be swarming over that car and congratulate us that we have finally ‘arrived…’? Well, it’s unlikely but assuming everyone in the party are surrounding the car and give us the thumbs up and congratulating us as if we have won an international award, we better wake up and understand that we are mixing with the wrong crowd? Some senior managers earn more than the price of the segment B car every month. I repeat. Every month.
Why did we buy that car then? It saves lots of petrol? 🙂 It’s problem free? Haha. It’s the best car we could afford at the moment? Actually, that last reason is the actual reason. We want to buy the best we could afford at the moment. The reason is because most of our peers may not yet be at our level; a Japanese branded segment B car. They may still be stuck with a national brand. They may still be driving an old car etc. So, we are one or a few steps ahead. Well, if that’s really the reason then allow me to provide a better choice of being ahead? Get a property, even if it’s an affordable one below RM300k. Stay in it, save on rental and start planning for an upgrade in the next 5-10 years. Continue to get rental from that first property after we have gotten the upgrade.
By the way, will our friends be impressed with our sub-RM300k affordable property? Probably not because they may be staying in a much better equipped condo for a higher rental. They have the style. We have just an affordable apartment. Should we then be impressed with their RENTED condominium then? Well, how about just visiting them, enjoy the facilities, say some nice words and continue to be their friends. They are not impressed with our apartment lah, why are we impressed with their rented condominium? Life’s like that. Do we enjoy the seaside better when we are in the Maldives versus the sandy beaches of Pulau Perhentian? We may FEEL much BETTER because we needed to pay more to go to Maldives. By the way, this is how much a RM200k property may become 30 years later. Briefly, it’s hedging against inflation. If we absolutely MUST have a new car, base Viva starts from RM23k and base Saga starts from RM28k. Happy understanding the difference yeah.
written on 10 March 2019
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