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| No Future-lah |
When money shrinks, you get less value.
When money shrinks ever so quickly, you lose more even more quickly.
That is the situation in Malaysia.
Let us get back to conventional wisdom of:
Y=C+S+I
where:
Y stands for Income;
C for Consumption
S for Savings
I for Investment
When January ringgits are more valuable than December ringgits, what do you do?
Savings is actually out of the picture as the phenomena that hit Brazil a long time ago is now also happening in Malaysia.
In the past, when a Brazilian gets his pay packet, he immediately exchanges them for USD or yen. If he doesn't, he keeps sufficient spending money for consumption but all else he converts into can food and other non-perishable foods.
This will go on until the Brazilian currency gets traction above the runaway inflation menace.
In Malaysia, the way the government is pending as if there is no tomorrow akin to Chicken Little spending as if the sky will fell the next moment has contributed to this malaise.
Privatisation has turned into piratisation and such dirty money is floating in the local commerce system.
Macam mana,tuan?
To save yourself, there is now only this formula.
Y=C+I
where:
Y stands for Income;
C for consumption
I for investment
There is no savings. (All will be
telan bulat-bulat by inflation!)
Investment should be in bold gold, assets and reits.
Buy a property to stave off the inflation. At least you get value from inflated capitalization gains!
If, not, go on a holiday abroad before it becomes too expensive for you to do so!
Then, keep some money to pay credit cards by spending the next month's money in advance by 20 days!
What a way to manage your funds.
Isn't it fun?
