If you pay your PTPTN loan too early, you are more likely to end up losing more money than your 20% discount. Good debts will make you rich.

When I first graduated, I always thought of paying off my loan in one lump sum because PTPTN offers a whopping 20% discount if I pay off my loan early. But when I did the math, it is a HORRIBLE idea.

Timestamps:
0:00 My story
0:35 Types of debts
1:25 Why you should not pay your PTPTN loan early
3:15 PTPTN's Interest rate is 1%, Inflation 4%
4:01 When you should pay your loans early
4:22 Don't be afraid of debts, WATCH THIS PART!

💲Stashaway Referral - Beat Fixed Deposits today with StashAway Simple
[ Ссылка ]

🔍Our Website/BLOGS - Official Ringgit2Dollar website
[ Ссылка ]

---------------------------------------------------------------------------------------------------------------------
Podcast
🎧 Spotify: [ Ссылка ]

⚡️ WATCH MORE VIDEOS⚡️ :

👓 Top 5 US Brokerages: [ Ссылка ]
👓 How to save money: [ Ссылка ]
👓 7 Different types of investments: [ Ссылка ]

Follow my social media for more stock talks for free!
🚀 Instagram: [ Ссылка ]
🚀 Twitter: [ Ссылка ]

Books I would suggest to read:
📚 The Intelligent Investor
📚 The 4-Hour Work Week
📚 One Up on Wall Street

💰 My brokerage account: Tradestation Global - Interactive Brokers

For more business enquiries

✉️ andrew@ringgit2dollar.com

You see in this world there are good debts and bad debts, good debts make you wealthier, bad debts make you go poor and debt free with no knowledge are for donkeys.

Bad debts are basically your credit card debt paying 18% per annum and if you have any credit card debt. Pay that off immediately

Good debts are is like your PTPTN who charges you 1% per annum, even the inflation rate is higher than that, come on bro.

And we reach debt free where a lot of Malaysians like to watch Dave Ramsay would wanna be Debt Free. Being debt free is not wrong especially if you are nearing retirement but if you are during your 20s and 30s. It is completely stupid, it is how your money works for you.

Other than that, that 1% interest if it bothers you so much. It is less than inflation, in Malaysia inflation is about 3 or 4 percent a year but that number can go higher in certain sectors such as the medical sector.

With that one percent interest rate the PTPTN is charging you, they only collect like 5000 bucks or so from you on interest which is why I don’t mind paying it late cause I know that 5000 bucks 20 years from now is worth way less than me having it today.

My conclusion is if you are disciplined with your money and you can invest them into something that gives you 8% a year like an index fund, it is probably the better option.

But a counter argument is that some people might not have a stable income and maybe will have a better peace of mind paying of that loan and not worrying about them. If you are one of them, then paying off the loan doesn’t sound so stupid.

But I really don’t get it why so many people wanna be debt free, debts are used by the rich and to leverage yourself. If you take a look at the rich people around you, they all have one thing in common.

They all have a lot of investment property and they all take loans to leverage that. The idea of the rich is this,

The rich take on debt to generate returns. If your debt doesn’t generate a return, then you are on the wrong boat. I really appreciate if you guys can give me a thumbs up for this video and subscribe to my channel for more contents like this,

_______________________________________________________________________________________

🔴 DISCLAIMER! This video is not investment advice and before you purchase a stock, always do your due diligence and consult your financial advisor to which I am not. We will not be liable for any loss or damage in the contents provided.

If you wish to support this channel once again, do hit the like and subscribe button for the Youtube algorithm.

#debts #ptptn #loans

свернуть