A Personal Finance Blog for Malaysian: Being poor, is expensive.

Thursday, August 27, 2015

Being poor, is expensive.

Large % of Malaysian are not rich, in fact, based on data from EPF, most Malaysian are considered poor, relatively speaking in term of real purchasing power.

In any country, being poor is expensive. Why?

Poor people then to have lower credit score, pay higher interest than rich people.

Poor people also buy 'lower price' things, which is sub standard, therefore effectively more expensive.

Check goods in "Kedai 1Malaysia", look into the content and ingredients, the price tag might be lower but the quality and quantity might not be there.

Poor people may buy small pack, with limited resources, than buying the larger package which is more economical.

Transportation is not cheap in Malaysia. Whether to own a car or take public transport, poor people pay more in long term than rich people.

Education probably is the only way to get out from 'being poor', working adults may go back to school, read more and learn more in order to improve their 'worthiness' to get better job and better pay. However, only when one get financial education can achieve highest quality of life else you just get better pay and spend even more and end up being poor again.