"KUALA LUMPUR: Prime Minister Datuk Seri Abdullah Ahmad Badawi on Wednesday announced the new price for petrol is RM2.70 a litre, effective midnight tonight 04 June 2008

He announced that the price of petrol would be increased by 78sen and diesel by RM1.

The 40% increase in petrol price is part of the new fuel subsidy plan the Prime Minister announced at 5pm Wednesday.

The price of diesel goes up to RM2.58 from RM1.58."

Well this will be the biggest headline for year 2008.

Now lets do a quick math. An average m’sian will consume at least 100 litres per week. Currently our petrol is residing at RM1.98, so per week will cost RM198. With the new price increment it will now cost RM270 per week. This actually transalate an extra expenses of ~RM300 per month. So is RM300 a lot? Well for some ppl its equivalent to their monthly expenses for food (RM10 x 30days).

To bring this further, an average income for msian would be RM3K. Just for the sake of petrol, it will cost RM1K and if we include the montly car installment i.e RM500, 50% of the earned income is gone!

So What's Next?

With the price increase of this finite commodity, transportation sector will be heavily affected. This will trigger a spiraling effect on consumer goods and foods. Your spending power will suddenly become lesser as your rate of earned income had been way surpass by the exponential rate of the economics. Put another way there will be inflation and the standard of living will go down. Now the difficulty level of the "rat race" had been upgraded and the journey to wealth is obviously even tougher!

So What's Next?

You will see 95% will be complaining.
You will see them start to Protest.
You will see them start to Boycott.
You will see them in anger.
You will see them in fear.
You will see them disappointed.
You will see them helpless.
You will see them played the role of “victim”

So What's Next?

As time pass, they will start to accept the fact and there’s nothing much they can do about it and businesses as usual.

So What's Next?

Few years down the road, the same headline will re-occur and the ‘So What's Next?’ be repeated.

So What's Next?

STOP being a victim! If what you are doing currently doesn’t improve your financial situation, isn't it time to improvise your strategy?

So What's Next?

Ever wonder why most house have a back door? Obviously it is for the case of emergency. If all the while you only have a single stream of income, it's time to build your "back door". It definitely required time to create additional streams of income but let's not create excuses of not having one! You are not to be blame of not having one now, but few years down the road and you still don't have any.... who's to blame?

Cheers!