FOR many of us, living debt-free is a dream that unfortunately may feel far from reality.

Many of us are tied to loans and in fact, in March, it was reported that housing loans account for 60.5% of all family debts in the country, followed by auto loans (13.2%) and personal loans (12.6%).

One Malaysian has managed to achieve a debt-free life at the age of 50 and took to the Facebook group, Muflis Bankrupt di Malaysia to share how he succeeded at it.

The man who currently takes home a salary of RM5,000 shared that his initial paycheck was a modest sum of RM950.

At the age of 22, he made a decision to purchase a RM42,000 house and furnished it with a mattress, a semi-automatic washing machine, a single-door refrigerator, and a pre-installed single wardrobe that cost RM45.

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“For my transportation, I had a motorcycle and when my first child was born, I bought a second-hand Iswara,” shared the man, adding that he was grateful to his understanding wife who was not a demanding woman.

“I told my wife, if a piece of furniture costs RM1,000, we should save RM100 each month. In 10 months, we’d have enough to buy it. And if we were desperate, we could dip into our savings to buy the furniture.”

After using the Iswara for eight years, the man bought a Proton Persona with a downpayment of RM20,000 which was split with his wife.

The monthly payment for the car loan was just RM315 but the man shared that he would pay more whenever it was possible. Thanks to his efforts, the loan was cleared in just over seven years.

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$!Pix for visual purpose/Freepik

In 2014, he reached a big milestone by buying a house near Bukit Beruntung for RM80,000.

Despite the rumours about the area, the man stood by his decision and took a 24-year loan to keep the payments low.

But he then had an idea, “If I could pay off a car worth over RM100,000 in nine years, why couldn’t I do the same with my house?”

After years of saving, he finally paid all his debts at the age of 50 just as he planned.

“My friends change their cars frequently. They get new motorcycles but I turn a blind eye to it.

“My principle now, after being debt-free, is simple. If you have the money, buy; if not, do not borrow. Use what you have.”

The man also happily shared that the house he purchased is now worth over RM400,000 and that he also advises his children to save money and purchase ordinary cars even if they can afford better ones.

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