Thursday, September 15, 2011

A casual conversation over ciggy break

I just had a casual conversation with a colleague about 30 minutes ago....The conversation goes like this...

Me: Eh bro, heard that your wife's pregnant...Betul kah?

Mr T: Yeah man....(muka blank jer)

Me: So congrats la daddy-to-be

Mr T: Thanks man, but I have some worries lah...

Me: Worry pasal apa?

Mr T: Having kids nowadays means money.

Me: True...true...

Mr T: How's your kid?

Me: She's in playschool now...

Mr T: How much eh the fees?

Me: Quite a lot if you ask me. But we always have options, whether to send it to Taska or the more expensive private ones...

Mr T: I think I better start thinking of doing some savings plan for the kid lah...

Me: You should bro, and you better start now.

Mr T: I need someone to guide me a wee bit. Coz, saving money in the bank's savings account doesn't give a good return...

Me: Well, again....we have options...we have FDs, ASWs or unit trust. But if you have RM20k-RM50k now, we can start investing in shares or IPOs. Hehehehe

Mr T: hahahaha...but seriously, i need to start something lah...

Me: You do.....and I can help you a bit in making those decisions...

Before we end our 'short' conversation, we finished up 3 sticks of cigarettes (I know, I will quit next month!!). I briefed him on the options that he has especially in investing in unit trust and he seems to be interested. I told him to take his time and talk about it with his wife and make the right decision for him and his family...

I did highlight the importance of saving money and put it in a place where it can give you better returns in the future. I try not to be too technical but I did mention that the value of a RM10 now won't be the same as the value of RM10 in 5 years time.

So to be honest, we can't tell people what to do with their lives, but what we can do it show that there are a lot of ways that we can generate passive income just by saving a small portion of our income.

I hope to write about compounding and education fund later when I get back from dive trip. Hehehe

Have a good holiday everyone!!





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