I can finally empathise with those who resorted to borrowing from loan sharks. I used to think nothing is that bad, but I realise now they have probably exhausted all means and need urgent cash to tide over, which is why they had to go through this method. And banks and finance companies normally turn a blind eye when people need urgent cash. Of course, not all are for honourable intentions, like paying off loans. Most just need the cash to gamble and splurge on lottery.
Having said that, some loan sharks think they are doing a service by lending money to people who are really in need, and when banks and authorized money lenders refused to. However, when people default on payment, they, too, refuse to give them some leeway. At least the most the banks can do is to hound and harass you, charge you and then declare you a bankrupt. Loan sharks will paint your house and chase you everywhere.
But at times, circumstances happen that perhaps someone just happen to need cash in very difficult times. So can people not be a bit more compassionate? Why is it when you do not really need the cash, everyone starts loaning you without you asking, but when you really really need some quick cash to tide over, everybody turn their backs on you and still try squeezing water out of a stone?
If the person really has no money to pay, does it help matters to keep chasing for payment? How would you know the person has not tried every ways and means to source for funds? At times one really need the cash at that point in time, after that things will be smoother, but yet no one could help.
Recently I am trying to consolidate whatever finances I still have left and planning how to split accounts. So I researched on the kinds of plans banks offer. And I realize how much of a blood-sucker banks can be! When we need our money to grow and put it into a savings account, the interest is so pathetic, about 1.5% or so. Yet when someone defaults on bank loans, immediately they have to pay 24% on top of the principal amount. In other words, we are making more loss than profits!
Anyway, I was trying to see which bank is best to open another savings account. I used to have a Save-As-You-Earn account, then after maturity, I closed that and put whatever money I had into a fixed deposit. After that, due to the attractive interest rates of insurance savings and endowment plans, I closed the Fixed Deposit account and put all the money in endowment plans, plus a bit more.
It is true that one should always cultivate the habit of saving. Banks recommend at least ten percent, but for me, it used to be twenty percent, then ever since I got a raise, I try to save half. There were times when I contemplated surrendering the endowment plans and just withdraw all the cash altogether, especially when I was trying to invest. But a good thing I did not, otherwise I would lose much more.
I could have drawn out the cash and used it for investment instead of taking a bank loan, but in the end, I decided against it. So even though I lost quite badly, I still have assets in tact. Out of sight, out of mind, then I will not be able to touch it and use it. Now that I have to start building up all over again, I need to be more vigilant in my savings plan.
Thus, besides the insurance plans I already have, I plan to split my savings up further. So, whatever take home pay I have, after the deduction for insurance(s) and household allowances (which is now more since I need to pay back my mum) which can easily take up to half my pay, I plan to open another savings account and split half of whatever remaining into it. Which means one for expenditure and one for purely savings.
That means I have only a quarter of my pay to survive on from now on, to include food, transport, entertainment and miscellaneous. And it is not as if I am even earning that much in the first place! But what else can I do? I need to build up whatever I have lost in the fastest way possible. I have already spent the number of years trying to build up a comfortable sum, and lost it all in a wimp of stupidity. So now in order to build up again, I have to save more each month in order to make up for all the years down the drain.
But I will survive. I do not need to spend that much on myself. It has come to a stage where I already have whatever I needed and wanted (save for real big expenses like a house and car), so I do not really need anymore things. And since I am still single, it will be much easier to save as compared to those who are planning to start a family.
So after some calculations, I realize I can still have a relatively comfortable life. What are those things I spend on? Food and transport, a bit of entertainment here and there, enrichment courses (not too expensive ones), mobile bills (which I recently downgraded into a less expensive plan), travel, school fees. I just have to stop buying books, CDs, clothes, shoes, snacks and cosmetics. Time to be more disciplined!
Having said that, some loan sharks think they are doing a service by lending money to people who are really in need, and when banks and authorized money lenders refused to. However, when people default on payment, they, too, refuse to give them some leeway. At least the most the banks can do is to hound and harass you, charge you and then declare you a bankrupt. Loan sharks will paint your house and chase you everywhere.
But at times, circumstances happen that perhaps someone just happen to need cash in very difficult times. So can people not be a bit more compassionate? Why is it when you do not really need the cash, everyone starts loaning you without you asking, but when you really really need some quick cash to tide over, everybody turn their backs on you and still try squeezing water out of a stone?
If the person really has no money to pay, does it help matters to keep chasing for payment? How would you know the person has not tried every ways and means to source for funds? At times one really need the cash at that point in time, after that things will be smoother, but yet no one could help.
Recently I am trying to consolidate whatever finances I still have left and planning how to split accounts. So I researched on the kinds of plans banks offer. And I realize how much of a blood-sucker banks can be! When we need our money to grow and put it into a savings account, the interest is so pathetic, about 1.5% or so. Yet when someone defaults on bank loans, immediately they have to pay 24% on top of the principal amount. In other words, we are making more loss than profits!
Anyway, I was trying to see which bank is best to open another savings account. I used to have a Save-As-You-Earn account, then after maturity, I closed that and put whatever money I had into a fixed deposit. After that, due to the attractive interest rates of insurance savings and endowment plans, I closed the Fixed Deposit account and put all the money in endowment plans, plus a bit more.
It is true that one should always cultivate the habit of saving. Banks recommend at least ten percent, but for me, it used to be twenty percent, then ever since I got a raise, I try to save half. There were times when I contemplated surrendering the endowment plans and just withdraw all the cash altogether, especially when I was trying to invest. But a good thing I did not, otherwise I would lose much more.
I could have drawn out the cash and used it for investment instead of taking a bank loan, but in the end, I decided against it. So even though I lost quite badly, I still have assets in tact. Out of sight, out of mind, then I will not be able to touch it and use it. Now that I have to start building up all over again, I need to be more vigilant in my savings plan.
Thus, besides the insurance plans I already have, I plan to split my savings up further. So, whatever take home pay I have, after the deduction for insurance(s) and household allowances (which is now more since I need to pay back my mum) which can easily take up to half my pay, I plan to open another savings account and split half of whatever remaining into it. Which means one for expenditure and one for purely savings.
That means I have only a quarter of my pay to survive on from now on, to include food, transport, entertainment and miscellaneous. And it is not as if I am even earning that much in the first place! But what else can I do? I need to build up whatever I have lost in the fastest way possible. I have already spent the number of years trying to build up a comfortable sum, and lost it all in a wimp of stupidity. So now in order to build up again, I have to save more each month in order to make up for all the years down the drain.
But I will survive. I do not need to spend that much on myself. It has come to a stage where I already have whatever I needed and wanted (save for real big expenses like a house and car), so I do not really need anymore things. And since I am still single, it will be much easier to save as compared to those who are planning to start a family.
So after some calculations, I realize I can still have a relatively comfortable life. What are those things I spend on? Food and transport, a bit of entertainment here and there, enrichment courses (not too expensive ones), mobile bills (which I recently downgraded into a less expensive plan), travel, school fees. I just have to stop buying books, CDs, clothes, shoes, snacks and cosmetics. Time to be more disciplined!
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