Wednesday, November 12, 2008

Financial Freedom, Lifestyle and Loan Sharks

Financial Freedom, Lifestyle and Loan Sharks

According to recent newspaper reports those borrowers who approach loan sharks are no longer confined to gamblers who are heavily in debt. Nowadays more and more professionals are going to them to get financial assistance. They are doctors, lawyers and even company chief executive officers. As reported in the paper, they are desperate and they have no choice and they are fully aware of the consequences. They are hit by the financial meltdown.

The root of their problems is their lifestyle habit. The rich people work hard and they think long term. They invest their money to earn passive income. While the poor people use their hard-earned money to invest in their current lifestyle, because they think short term. The habit of managing money is more important than the amount of money that you have.

As long as they follow these tips they will never need to approach loan sharks or “Ah Long”, popularly known in Malaysia and Singapore.

* Save or pay yourself first 10% of your income for your retirement and children’s education fund.

* Do not spend more than what you earn by using your credit cards. Inadvertently you are building up debts that you can't settle later.

* Have a budget and always adhere to it. Your budget will cover your daily essential expenses as well as your monthly housing loan, insurance premiums and others.

* Always set aside an amount to cover three to six months’ expenses just in case you are out of work. This is your emergency fund.

You can’t live without money, but money is not everything in your life. Your life is made up of your health, your family, your relationship with others, and most importantly, your happiness.


  1. I like your last sentence, very agree with you ^^


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