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Managing ‘bad’ expenses and good debts, my way.

I think anyone who is reading this knows that even for debts, there are two kinds of debts. The good one and the bad one. Bad debts, everyone would immediately think of credit cards, car repayments (the bigger the worse) and whatever stuffs which you buy because you believe it gives you pleasure and ‘face’ or status in front of all your friends. One radio deejay said recently that bad debt may also be caused when one bought more than what is needed. For example, if you would like running, then just ONE (1) running shoe is enough. Anything extra meant that you have incurred ‘bad’ extra expenses. When you buy too many of these extra, it will accumulate into your credit card bad debts. Agree?
As my wife and I are expecting our second baby and we wanted to have space for my parents, I exchanged my Persona for an Exora. A close friend asked me why wouldn’t I buy a Livina or Avanza. I smiled and said Exora fits what I was looking for. She said that I am too stingy. I do not wish to comment on the overall value of these three cars especially the SIZE or the turbo engine but I told her the following. The savings from Persona vs City and today, Exora vs Livina has easily enabled me to have the following: 15 watches, from Casio to Swatches to Alba to Ellesse and last year, a Tissot. I have 15 pairs of shoes from brands such as Camel to Obermain to Larrie to Bonia and many more. I also spend between RM500 – RM1,000 per year on books and magazines. In terms of shirts and pants, I do have British Hindia, Dockers, Calvin Klein etc. Well, I seriously believe all these make me look better. Haha.
Actually, I feel that everyone has their own love but to pay way too much for a car which has no better value except for the so called ‘brand’ and ‘status’? Sorry, I do not need those. I love watches because of its design, because I can wear a different one every now and then and I feel nostalgic when I look back at those watches I bought in UK, in Switzerland, in Hong Kong etc. I love shoes because I do not believe in one shoe for every single occasion. I also love the feeling of deciding or matching my shoes to what I would be wearing. That’s the same for my clothing as well. Books and magazines would help me to improve myself tremendously.
So, yes, these are considered extra which should be categorised as BAD debts except that all these were accumulated over the past 17 years of working. Thus, one shoe or one shirt or even one watch per year is really nowhere near the ‘bad debt’ level of trying to pay more for a ‘better’ car. Agree or disagree? It’s okay, everyone has their own thinking and should do just fine as long as we do not overspend every month. Cheers.
written on 11 Apr 2015
Next suggested article: Property Investment and the decisions we can make or delay

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0 Responses

  1. You should put safety as the priority in buying a car and not the price. I think this should be educated to Malaysians. Local car manufacturer should place more focus in building a quality (safety) into the cars. Money can always earned, but you only have one life.

    1. I agree. Lyn, please check the safety in some Japanese brands vs perodua vs proton vs European brands. I hope people follow your advice. Exora is already 4 star rated. Has abs n ebd. Many cars sold today still use drum brakes n without abs n ebd. Cheers.

    2. You should think affordability is another factor in buying a car as well, of course, everyone would prefer to buy the best one if it could afford, i think you should also look at thing at both side rather than one yourself. every car has its own market.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


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