Even if you have a job to sustain your financial needs, would it not be great to buy something that you want without causing a huge dent in your personal finances? Your personal savings from your job can then be utilized for investing to further reach our goals of having a financial freedom in the future.
Here is an example on where I used my side hustles or side income to provide comfort, safety and obtain a more economical way of moving around as an OFW here in Malaysia.
Late last year, I finally decided to replace my aging 1997 Proton Wira car that I usually used to drive from my rented house here in Malaysia to the company. This is partly because the maintenance cost keep popping up more recently as compared last time and I think it will be more costly in the future if major repairs will come (which is to be expected) since the car is very old already.
There was a case also when we travelled to Kuala Lumpur for a stroll and the car overheated. It caused a lot of stress during that time. The car got repaired but you will always have the same worries that when you travel far, the car will break down again.
Sample 1997 Proton Wira Car in Malaysia.
Just to give you a background why I used a car and not commute to work as we usually do in the Philippines.
It is more economical to get your own car when you work here in Malaysia. My location is far from the city and is one of the provinces. There are public buses that circles the town, but the numbers are limited and they only make their rounds at a specific time. Buses starts there routine at 9:30am in my place so I can’t depend on them as my work starts at 8:00am. There are no tricycles roaming around as well as most people have a motor or drive their car here, for the gasoline is very cheap as well.
Sample public bus transit in Kuala Lumpur City of Malaysia.
When I was new here, most of OFWs working in my company travel in groups but we somehow have difficulty sustaining this as well, since there are times, we need to do overtime work so we can’t wait for everyone else to go home together especially when we have individual projects that we are rushing to complete there’s a time you really need to stay late at work.
You can go to work by grab or taxi but when you calculate the cost and convenience, its more economical to still use your own car. As I mentioned gasoline is very cheap and it costs only around 30 php per liter, unlike in Philippines where gas prices can go 2-3 times as high. The new cars consume twice as less fuel as compared to a 1997 car so you can factor in this as well when you decide to get a new one. Previously I do fill my car tank twice a week but now I do once every 2 weeks if the distance travelled is just going to work.
I still like my old car as it still serves its purpose and its 100% ROI already as I used it for my personal needs for almost 10 years now. But maintenance as I mentioned is getting higher every now and then. I have to say goodbye to it already.
You need to consider pro’s and con’s and which is better in the long term, you can apply this concept to any type of expenses you will need to incur in the future as well.
So that’s why I considered buying this new car.
Local cars in Malaysia are cheaper as compared to branded cars that are available in Philippines. Actually its almost half the price. These cars also come in different sizes so you can select smaller and cheaper versions. From my personal observation of staying long time here, more than 98% of people here have cars (with the “s”). People tend to change more frequently also as you can trade in your old car for a new one. Every 1-2 years a new model comes out as well so there are plenty to chose from.
For estimation, you can buy a brand new local car here for as much as 500,000 php only (including a 5-7 years amortization) while in Philippines its counter part costs more than 1Million. I guess tax subsidies played a major role on the price difference.
It is a fact also that since these cars are government subsidized and incentivized, the monthly amortization can go as low as 12,000 php per month. There are cheaper versions as well where monthly amortization for locals can go below 5,000 pesos only so a new hire employee with no finance issues can get a new car, even machine operator levels. What a great government!
For foreigners by the way it is required to pay 20-30% of the total car value, so be sure to prepare enough finance when you plan to buy a new car.
As I mentioned here in my vlogs, due to my side incomes last year I was able to earn as much as 6 digits per month during the peak crypto time frame of August to December as I did have significant gains in my Crypto games (trading and promotions) partly as well. So, I have the financial capacity to pay for it and decided to replace my aging car.
But then again, I decided to not pay it full. I am still doing a monthly amortization as I feel more convenient having cash on hand for now, for future investments and opportunities.
I still have my old car, thinking to sell or use as an emergency car in the future.
Here’s a sample picture of my current car.
I hope you like our blogpost for today.
Hope it motivate you as well to start doing side hustles or side income. If you don’t know how to start, you can check my Patreon channel for Stock investing here or Money Earners Patreon channel if you want to do online business similar to what I am currently doing.
I get motivated also when I see more people doing what I am doing as well, trying to find ways to achieve financial freedom, one at a time.