Personal finance issue? This is a never ending statement regardless of the government of the day. 😛 . “Cost of living is increasing.” As a Malaysian, I could not deny this fact. When I was way younger, a bowl of noodle was RM2.20 and in some out of city places, it’s RM1.80. I know because I cycled to buy noodles for my late grandmother every morning a long time ago. Those were the days when a 9 year old is trusted enough to cycle to go and buy noodles by himself. RM5 was enough for two packets. Today, RM5 is usually not enough for even one.
However, for those who are earning more than the typical Malaysians, there are choices, really. I wanted to get a Mocca Latte Ice because it was a hot day a few days ago. There were two choices. Either at Library Cafe or Krispy Kreme. One was at RM13 and another was only at RM11. Guess which I chose? Well, I did ask the barista, ‘is your mocca latte’ better than the one over there?’ He told me that he would make mine better than the one over there. He added one extra shot of coffee for FREE. Haha. Choices plus a bit of persuasion. It works, most of the time.
Anyway, while I was waiting, I saw a RM9 cola in the fridge shelf. Take a look at the image. The bottom hald would be the usual Coca-Cola which is world famous. Another one is a brand that I have never heard of but from the packaging and the price, I would believe it to be a premium brand. So, which one do you think people would choose? Well, if I am alone, I would take the usual but if I happen to be with someone I wanted to impress, I would try out the RM9 Cola instead. Oh yeah, if I am alone, I would venture into the supermarket next door instead because a can of Coca-Cola would not exceed RM2.
If we think on a longer term basis, these choices do not only exist for beverages but for many things that we intend to buy. When we continue to make choices where we are spending more, then of course we have less in the end. In fact, bankruptcy among Malaysians are rising. Earlier article here: 16,000 Malaysians go bankrupt every year .
Okay, this applies for even properties! There are lots of expensive branded and new properties but there are also many cheaper alternatives which are less favoured perhaps because it’s old, it’s further away and there’s no mall in the vicinity. For those areas everyone loves, is already fully valued, just like blue chip stocks. The key is to know what are good enough but not many people wanted it yet. Choices, choices and choices. Happy choosing yeah.
Next suggested article: Okay, we do not wish to own a car. What about property then?