Afraid that I will mismanage my salary

[marsch]

For context, I never had more than minimum wage salary before after spm, but after I finish my current study, my expected salary is around 8.5K to 10K depending on how much i work that month. The problem is i need to buy a car when i start working, and also i gotta pay my loans to the bank and my parents which both in total is 3K. The loans is to pay for my study I’m currently taking. My parents pay the other half of the fee. I know that buying a super cheap car is the best way, but i might wanna buy another car in the future to “upgrade” my lifestyle. So I’m looking to buy a not so expensive car within my salary range but not too cheap that i will have the feeling to buy a new one. My main concern is I’m afraid i will mismanage my unexpected jump in salary and spend my money on unnecessary things. So how should i manage my finances?

 

[pablob]

@marsch Put it in a long term FD. Now u cant take it out. Done.

 

[finalsaut]

@marsch When I got my 1st salary, the 1st thing I do is save the money to build my emergency fund. Sit down with your parents that you need to save 1st and treat them during the next raya.

 

[abeazishar]

@marsch OP are you a fresh graduate? If so, does this around 8.5k to 10k salary is an actual job offer or just based on your own market research?

 

[marsch]

@abeazishar A conditional job offer, as long as I finish my study and don’t do anything stupid. Signed the bond and everything. Also the company and other similar companies desperately need fresh workers especially after covid. I guess you could guess which industry this is from what I told you

 

[isaac1995]

@marsch Damn pilot earns that much ?

 

[marsch]

@isaac1995 Yes for a Second Officer. But still, Malaysian pilots are way underpaid compared to Middle Eastern pilots. A friend of mine who works at FlyDubai showed his payslip for January and he earned over RM300K, including bonuses ofc. Definitely a very high paying job but you gotta invest a lot of money in the beginning.

 

[daramantus]

@marsch this will be very difficult. if you mix around with colleagues that spend a lot, it's a lot of will power and discipline to not do the same.

like comes the time to eat they will go to nice fancy place because you guys are in a foreign city, why not try?

good luck

 

[ampersandman]

@marsch but still congrats OP! fly high!

 

[madbird]

@marsch Paying your parents that much for what reason? If they're not fit for work sure. Otherwise, that's too much.

 

[marsch]

@madbird Sorry I forgot to mention the important part. My study costed a lot of money, so we took a bank loan to pay around 60% and my parents paid the remaining. So in total for the bank and my parents ill be paying back around 3k

 

[finalsaut]

@marsch Tell your parents that you will be paying the bank 1st then them.

 

[marsch]

@finalsaut This is a problem too, I’m not from a super rich family. My parents pretty much used majority of their retirement money to pay my course fees. Many parts of those money are considered as also my sibling’s part of my parents’ will when they die one day. So i feel there’s a sense of urgency to pay of their money first before the bank. I know the interest will be high, but that’s the best thing that i could think of rn

 

[finalsaut]

@marsch Then fix a small amount like rm 100 or so for monthly payment. After the settlement of your other debts, then pay them.

 

[madbird]

@finalsaut Im sorry op but this is your best course of action. Whilst it's complicated, this is the best course of action with best leniency. Life will always find a way to corner you but always pick your wins and losses where you can

 

[lynnie7]

@marsch How long do you want to have the loan? What is the interest rate? I would suggest you plan how to finish the (any loan) loan since they have high interest rate.

 

[marsch]

@lynnie7 It’s a big loan, 550k. 60% loaned by bank. 15 years of payment towards the bank.

 

[sunstarmoon]

@marsch Managing one’s finances well is actually closely related to character development- learning to be disciplined, to be hardworking, learning to be patient, not to let our emotions rule, etc. For example in share market investing the great taboos are fear and greed. If you live and run your life wisely, your finances will also do well. If you stay immature and undisciplined, as the proverb goes: “a fool and his money are soon…”

 

[lynq]

@marsch Congrats on making it through.

Read psychology of money by morgan housel. I hope what he talks about buying the car can give you perspective. And even just financial planning in general.

Now focus on savings and paying off your debt. This will probably be the best way for you to avoid unnecessary spending.

If anything covid has taught us, it is be ready for rainy days. And rainy days can be very long.

My spouse and myself are in mid and late 30s. The feeling of being debt free is priceless. And yes, our cars are paid off, our house in klang valley is paid off. And yes, if i buy a car again, i can buy it fully cash, no issue.

 

[marsch]

@lynq Thank you for your advice. I’ll take a look at that book when I have a chance. Your comments about preparing for rainy days also is very wise. I saw many pilots need to sell their car due to having a high salary, high commitment lifestyle. I’ll try to follow your advice to pursue financial freedom