Rawat Hutang-Puitang sambil Melabur

A lot of people when they are in debt with other people, and cannot afford to pay back the loan would prefer to avoid paying the debt. Their intention was to only pay back the debt once they can afford to do so. They hope the future income would get better. Once their income has improved only then they would pay back their loan either to relatives or friends. In reality, most of them never pay their debt even their income has improved. There is always something else to pay rather than settling their debt. They never improve their life. Worst, their income may never improve at all!

This is a common scenario or poor mind set. This type of people has a miss-conception of pay to themselves first before paying their loans. As a Muslim, it is a top priority to settle your debt to the people who give you the loans as promised and sooner than later. Allah already told in Al-Quran that those who work out to pay their debts will be given the assistance (or given the path) to find rezeki (income). Al-Quran did not said that you must settle all your debt at once. But, your effort to settle your debt no matter how difficult your life is will ensure that the path to generate more income become easier. Once you work hard to settle your debt, there are many new opportunities emerge in your life without you foreseen them!

The key here is if things is beyond your control, Reschedule Your Liabilities.

You will only make your life worst by ignoring or running away from your debt. Imagine if a bank has more and more people not paying their debt. Less liquidity is available to provide loans to other people or businesses for productive economy activities. The community cannot grow or worst business will drop. Over-time jobs are getting less and less, and slowly, jobs are lost. Meanwhile, the whole community is slowly dying. I have seen this scenario in front of my own eyes in a small town in Boston, USA in 1994.

It is important to treat your debt. Ignoring and do nothing will only make it worst. The details of the debt rescheduling is taught in my short course class. A case study of a true story will be shown. The result is impressive.

I recommend to read THE RICHEST MAN IN BABYLON for further inspiration and understanding. However, the book was written in King's James English style. It is not easy to understand for readers who don't have sufficient English language skills. Sometimes, the message is easily misled and misunderstood. For Malay readers, I already translated the book into Malay language. The translated EBook is sold for RM20 per part. I divided the book into two parts for easier understanding. I also provide my own analysis based on current events or modern financial world. You should email me if you want the pdf copy.

Knowledge Preparation Very Important

Most people when they are in financial difficulty would think that they don't have enough money. Actually, they don't have enough knowledge how financial system works. Without knowledge preparation, opportunities in front of them are wasted. To make the situation worst, even if the wealth is in their hands it is easily wasted.

Below is an evidence of a sad story which always occur in the society although the situation may be different. You can read further about this family and the mother stupidity here.

She should have entered as many financial classes as possible before spending any money. Before she involved in any business (especially not controlled by her in this case) she MUST buy a house for her family to live in. Then, the balance should be separated for a long term investment, short term investment and then only then for any business. Any investment to be done MUST be based on sound principles. Or else, one can easily be trapped in a Quick Rich Scheme.

It is not easy to start a business especially if one have never involved in a business before. Even a highly educated people fail in many businesses.

Here is another sad story. Although the quantum is less, it is still hard earned money.

You can read the details in here.

The gist is you should always be prepared for the future by continuously learning about financial world and human tricks to cheat.

Experience is the Best Teacher - You should learn and improvise from other people's past mistakes

I was given an interesting link regarding personal financial planning. The summary is people made mistakes by not learning the art of personal financial planning as early as possible. The author categorized the mistakes in these areas:

1. Saving and Spending Mistakes

2. Debt Mistakes

3. Lifestyle Mistakes

4. Income and Career Mistakes

5. Financial Planning Mistakes

6. Other Mistakes

You can read about it from the link below:

http://fitzvillafuerte.com/20-financial-mistakes-that-30-year-olds-regret-the-most.html

My favourite mistakes people always did was number:
#13 I regret not learning about investments early.
Money is not the problem. It is the mentality of disbelieve that investments for the future are important is the main problem. In order to do that you need to evaluate your lifestyle objectively. This is one of the fundamental technique I teach in my investment seminar.

#8 I wish I didn’t ignore the reality of inflation.
Many people ignore this reality in their early life. By the time they realize their life didn't get any better even though they get salary increment, it is almost too late for them. They can recover from their mistakes provided they are willing to learn new tricks.

#16 I regret going into debt for a wedding.
You have to watch Seniman Bujang Lapok to understand this if you have not married yet. It is still not too late. There are so many stupid people spending for their wedding beyond their means. The sad part is there are many young people getting married using their parents' money. They should have their own funds to get married if they are really good children.


My main concern as a self taught financial trainer is why those mistakes happened? The scary part is the mistakes also happen to educated people regardless they are engineers, administrators, accountants, religious people and many more. I don't have the statistic but I have seen many cases in front of my eyes the mistakes done by these people. Even I have done some of the mistakes.

The main conclusion I can made was ARROGANT. Many people with higher education will always taught they have a lot of knowledge. Hence, they can do whatever they want. When we were young, we are too ARROGANT to ask successful people how they achieved it. We taught we want to achieve it based on our own merits.

Some people may not be arrogant. But, they are simply too shy to ask where the old Malay people always said "Malu bertanya Sesat Jalan"!

You, your friends and relatives should come to our personal financial planning and property investment to be held at UTM KL on 21 June 2014 before it is too late.