To Spend or Save?

I was at my uncle’s house the other day and we were debating why his bro in law who lives in a FELDA settlement has the ability to pay almost everything in cash compared to him. Among others, this in law of his has a 10 acre plot filled with palm oil trees that has the ability to rake in a 5 figure monthly income.

Apart from that, together with a small group of settlers, they have managed to run some small businesses/joint venture in the field of transportation and trading goods which allows them to enjoy a passive income. Currently their land is fully owned, they do not have debts and have a very large house to accommodate all 12 family members comfortably.

My uncle on the other hand has 3 houses on his plate but all have a mortgage with the banks. The current rental income is not even sufficient to pay off the monthly installments due to an outskirt location, low amount of down payment, BLR going up and many other reasons. On top of that, he also has to pay for 4 cars that the family his using.

Of course, you just cannot compare apple to apple of these 2 real life cases due to inflation in the city being higher that that of rural areas and even a trip to the office might include passing through 3 tollbooths over 1 landed highway, 1 elevated highway and 1 underground tunnel that is supposed to be ‘smart’ .. haha!

And in the rural areas, i.e. in this case the FELDA settlement, its quite impossible that you pass by a ‘TESCO’, ‘ALAMANDA’,’Dunkin Donuts’, McD Drivethru or even a ‘7E’ on the way home from the ‘office’. That too does in a way ‘suck up’ our available spendable cash in hand. What’s more, not many shops or food outlets in the settlement accepts a ‘Mastercard’, ‘Visa’ or ‘Diners’ , so, there is surely nothing to worry at the end of the month regarding a statement from the credit card companies.

So, is it an issue of habit OR environment OR the human lust for material possessions ?

One Response to “To Spend or Save?”
  1. zaki blogjer says:

    I totally agree with you bro. It’s not fair to make a comparison between this 2 people. I do agree on that Felda settlement manage to rake 5 figure monthly, but how many of them manage to do that, and how long they’ll be able to sustain that amount? Furthermore their income is not stable, with the palm oil price fluctuating whenever it wants.

    On your another uncle, he should invest property the smart way. Consider many factors, primarily location before buy it. Cheap property doesn’t meant it is profitable

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