MONEY MASTER

In less than 24 hours, we will be entering the year 2014 and so it is time again for us to reflect on the annual financial goal and how we are doing in terms of achieving the financial goal. I have posted my financial resolution for the year 2013 , in the beginning of the year and for the year 2013, I have set a rather cautious outlook on the global equities - thus, I'm targeting about 10% equities growth and true enough my total local equity growth is about slightly more than 10%, which is within my financial goal target, and in fact it is in almost in line with the local stocks growth. There are some increase in other area especially cash allocation for local equities and the growth in oversea stocks portfolio. Existing housing loan is reduced periodically, while I've finally settled the education loan, PTPTN in order to enjoy the 20% discount . A major purchased done through the end of the year, in which I'm hoping to have it finalized within the first quarter in 201...

Well, like it or not....2014 is the year for increased expended....a 15% increase in electricity bill, increase in tolls, LRT, sugar etc... It is probably one of those time when the Rakyat asked the question....what about my salary? I think this story best sum up how Malaysians feel about 2014... A bit of laughter and humor on this is good...after all, whether we like it or not, 2014 is going to be a year where your expenses go up even though you try to tighten your belt.     Posted with Blogsy

The last few post from the blog mentioned that you have been warned regarding the Malaysia's electricity tariff hike and with just about half month to go before 2014 when the thing happens, let us figure out ways to save money. While doing so, I come across the article from The Star and the article is really suitable for the current situation that is faced by most Malaysians. The article is about the unconventional money savers and talk about cutting cost - by all means which include unconventional method. The article is as follows:- FUEL prices are up. Electricity tariffs are rising. In a nutshell, the cost of living is being elevated. Many of us, in our attempts to be frugal, will tighten our belts. Naturally, there are many ways of doing this. The following are some obvious, though not necessarily conventional methods to cut down your costs. Unplug According to ABC.com, certain home appliances and electronics will continue to use power even when they’re swit...

We have been talking about GST for a while now and with the implementation set to be in 2015, a lot of Malaysians are starting to worry about the impact that it has upon the country. While the Goods and Service Tax (GST) has a lot of positive wealth impact that was lauded by a lot of experts in the economy, common folks in Malaysia still worry about the negative impacts on the livelihood and affordability of the Rakyat. Before we move to talk about the pros and cons of GST, what is GST in the first place? GST is a consumption tax that is imposed on goods and services at every stage of the supply chain, which typically begins at the manufacturing stage and ends at the retail stage. GST is based on the “valued-added” concept to avoid duplication in tax collected. Here is a simple scenario of how the implementation of GST will look like, assuming we take the 10% tax rate. A) Let's say we take a manufacturer of dairy product. The manufacturer of dairy product will have...

So, how many of you have a medical insurance?  Probably it doesn't mean much to you when you are young but looking at the statistic above, I think there is every reasons for us to start planning while we are young.  We are thankful that medical fees inflation is second to the college tuition and fees but it's still at a big figure....a forecast of 607% increase in comparison to 1978. Well, you probably argue that it's in so many years...but you may compare the increase in medical fees to the average income. The increase of the medical cost is way more than the increase of household income. The data shown until year 2010.  Well, for those of you who have no clue about medical insurance, here is a simple explanation of it. Medical Insurance functions as a form of protection to cover unforeseen expenses arising from illness, injury or accidents – which can be very expensive, especially if hospitalisation and / or surgery is required.  ...

ELECTRICITY TARIFF HIKE...YOU HAVE BEEN WARNED! Well, if you have not heard the news, then it's time to tune into it...because beginning in January 2014, electricity tariff in the country will rise by around 15%.  It is not a standard increase...but the average is about 15%. In the Peninsular Malaysia, the increase is about 14.86% while it is about 17% for Sabah and Labuan.  In Peninsular Malaysia, the rate will be about 38.53sen/kWh from the current average rate of about 33.54sen/kWh while Sabah and Labuan will seen an increase from 29.52 sen per kWh to 34.52sen per kWh. The Sarawak state will not be affected by the rate though, as the electricity supply in the state is operated by state-run company, Sarawak Energy. Of course, not all is bad news as those who use below 300kWh a month will not be affected. So, if your monthly electric bill is about RM77, you will not be affected. So, try to stay below this and you will be okay.  check out the...

Whether you are one of those who are struggling with monthly bills like myself or a debt-free Malaysian, here are 10 simple & realistic ways to help you SAVE MONEY.  1) GOODBYE TO YOUR TV SUBSCRIPTION We know that many of you have Astro at home, and it really help you to feel so much more convenient but maybe it's time to say goodbye to your TV subscription.  GOODBYE TO TV! Instead of making Ananda Krishnan (2nd richest in South East Asia, estimated wealth of US$11.7 billion) even richer, it is time to consider saving a little bit more for yourself. Most of the favourite tv series and movies could be watched online nowadays.And maybe, just maybe it's time to stay away from your TV and develop a healthier lifestyle at the same time. Thus, saying goodbye to your TV subscription is first on the list to start saving more money. This will help you save about RM120 to RM200 .

We all know the importance of owning properties and how the Malaysian government tried to set certain rules and regulations to prevent an overpriced of the properties in the country.  Well, here's the news for those of you who do not know....the new trend: a growing number of individuals and groups organizing bulk purchases of properties from developers. Bulk buying is basically an activity that allows few or many property investors to invest in a single development as a group. Most of the time when in bulk purchase, there will be additional benefits that won't be available should these individuals invest individually.  GROUP PURCHASE OF PROPERTY Whether it's a good strategy or not, it's up to your preference but here are some of the pros and cons in group purchase of property... The Pros: Normally, when you buy in bulk, you will be given discounts and additional benefits...a simple logic deduction: A lot of developers love and encourage group ...

I've read an interesting article on The Star not too long ago regarding what happens when you show-off with expensive things, but can't afford it and of course it makes sense that the consequences of showing off with expensive things which you cannot afford is debt; and in some of the more severe cases one might actually declared a bankrupt because of this. I am sharing the following article to raise awareness among the youngsters who are not having good sense of financial management ; but at the same time placing too much importance on appearing "rich" rather than really rich in net worth although the article applies to almost everyone.   The article is as follows:- Placing too much importance on appearing rich can affect one’s net worth. One may want to delay self-gratification in order to build a strong financial foundation I ONCE asked someone who looked like a million dollars on the outside but was totally broke, this question:“Is your self-worth destroy...

It is so coincidence that just the other day I was chatting with a friend regarding financial management in the family and then yesterday The Star posted something similar to this - Money Can't Buy Me Love , which talks about financial management or planning in a family that should start as earlier as possible to prevent financial struggles. I found that the article is really interesting given that I agree with most of the points and the fact that there are many relationship which fall apart due to the mismanagement of the family finances. The article is as follows:- Indeed, love is a many-splendored thing. When we are passionately in love, nothing really matters in the world. But when the romance settles and financial issues start to pile up, can love be thrown out of the window? MONEY certainly can’t buy us love but it can to some extent, prevent financial struggles. I have seen many relationships fall apart due to mismanagement of family finances. Arguments about mo...

As the Bank Negara Malaysa (BNM), the Malaysia Central Bank trying to tighten the borrowing rule, I’ve been read­ing a lot of arti­cles lately about ways to get out of debt, and I’m not impressed at most of the articles that I've read. It's not that the articles are bad, I just don't really agree with most of the articles. I know that most of the articles will advice on repaying debt as soon as possible and have more savings and stuff like that, which I don't really agree as we are not optimizing the money well enough. Having said so, I don't really mean that we should go and buy lots of stuff and then finally go into bankruptcy. In my opinion, one should really have the balance between debt and cash, in order to fully optimized the money to improve the lifestyle. In fact, a lot of affluent people have certain level of debts that they are comfortable with. To begin with, there are two kinds of debt, often called “good” debt and “bad” debt. Good debt is the ...

Tibet and Nepal trade culture between the Buddhism and Hinduism and are home to many unique instruments of meditation and relaxation. However, it is not easy to get or collect these unique instruments of meditation and relaxation especially from these two nations; but Silver Sky Imports provided the services that one would easily love it because by using the service from Silver Sky Imports, one can buy these instruments of mediation and relaxation directly from the web, without having the need to fly over to Tibet and Nepal and still risk disappointment of not getting what he or she wants.

Apple Inc. (AAPL) unveiled two new iPhones, including a cheaper $99 version in bright colors and an updated high-end device, in a strategy shift by Chief Executive Officer Tim Cook to reach a broader range of customers around the world.  AIMING AT BROADER MARKET? The product introductions underline how Apple, which was a trailblazer when it debuted the iPhone in 2007, is increasingly following the strategy of other smartphone makers that offer handsets in different colors and prices. Until now, Apple only released one new iPhone model every year. As competing devices running Google Inc.’s Android software gain in popularity in the $280 billion smartphone market, Apple is expanding its iPhone lineup to reach more customers. Well, if you think the announcement could help Apple's stock rebound, think again....apparently, according to analysts, there is lack of excitement and surprises of the announcement, given that most of the information has already been leaked...

I guess every Malaysians should already know by now that the petrol price will go up by 20 cents, two days after the whole nation celebrated a subdue Independence Day. Malaysian celebrated the country's 56th Independence Day on the 31st August this year and the announcement of the petrol price hike by 20 cents was made by the Prime Minister on the 2nd of the September. While the subdue Independence Day celebration clearly shows that the government is running out of fund, not many of us would have imagine that the government would increase the price of the RON95 petrol by 20 cents, and clearly this move brought criticism from almost every one. And while it is hard to swallow, everyone will have to accept the fact that the petrol price will go up by 10% no matter what. There is an economic story behind the hike, although the "hike of the petrol price" should be more referred to as the reduction of the petrol subsidy - because that is actually part of the subsidy rat...

If you are following, the Malaysian Prime Minister, Datuk Seri Najib Tun Razak has announced the increase of petrol price.  Price for RON95 petrol and diesel will be raised by 20 sen per liter from midnight. While 20 sen probably doesn't send an alarming response, an increase of 10% in the petrol should be alarming.  The move is aimed at reducing the fiscal deficit, thus saving RM1.1bil per year for the Government, said Prime Minister Datuk Seri Najib Tun Razak. Najib said despite the increase, the government would still be subsidising 63 sen for RON 95 petrol. "The subsidy rationalisation will be carried out in many stages. The first is that the price of RON95 and diesel will be increased by 20 sen per litre from 12.01am Tuesday," Najib told a press conference after chairing a meeting of the Fiscal Policy Committee (FPC) on Monday. There have been talk of ways the government would do to help the lower income group in Malaysia but all of that ...

This post continue from the past 3 post about the credit card:- Credit Card - Friend or Foe (Part 1) Credit Card - Friend or Foe (Part 2) Credit Card - Friend or Foe (Part 3) While part 1 and part 2 mentioned mostly on the pros of the credit card, part 3 talks about the con of using credit card in which I will talk about it in this part. Aside from high interest and a lot of hidden charges, swiping credit card actually give one the false sense of affordability when it comes to buying "wants" products rather than than the necessities. What are the things that we can consider as "wants"? These are the things like the hot gadgets that just released to the market, like the Apple iPhone and iPad, the latest Samsung S4 and many more. These "wants" products are usually not cheap, especially in Malaysia which can cost almost a month of salary, but there is one feature in credit card, in which I mentioned in Part 2 as the pros, if used wisely - the easy ...

I read about an article on Mr. Money Mustache and how he retired at 30 and it was actually an inspiring article to me, and I'm pretty sure that most of us can learn from him. Inspiring in the sense that I aim to retired by 30 before I started to join the workforce, and unfortunately at 30 now, I still don't feel comfortable retiring. There are few reasons that I don't feel comfortable; the first being not accumulated enough invest able cash and investment assets in which can generates the amount of cash that I need to have my current lifestyle. Another reason is I'm still aiming for property and still paying for my property; in which will increase my expenses. So, I look into the advice of Mr. Money Mustache and learn something; though I cannot emulate him 100%, I'm sure there are some key learning from him. The article is as follows:- Meet Mr. Money Mustache. Hundreds of thousands of readers follow his bold advice on his self-titled blog — and for good rea...

Recently I've just fully settled the PTPTN (Perbadanan Tabung Pendidikan Tinggi Nasional) - the education loan in Malaysia to enjoy the 20% discount that was tabled by the Prime Minister of Malaysia last October on Budget 2013. The 20% discount still valid until this October. There are few reasons I settled the PTPTN loan, the main reason definitely to enjoy the 20% discount, although some might argue that if the Opposition take over, we might get it waive 100%, in which I will not want to go to that. In my opinion and my second reason to settle the loan, I would think that we should repay the institution what we have borrowed, so that our children will continue to have the benefit of getting low interest loan for education; which again many will argue we should be getting education for free - again, I will not go into that. Well, for those who intended to enjoy the 20% discount and to settle the PTPTN loan once and for all, the following is the step by step on how to do s...

How Asian customers think?   So, if you are thinking of ways to save money, here is a video made by Jin. Check it out...   Posted with Blogsy

Here is the thing that we encounter most often...."income not enough?" A lot of people have criticize the Gen-Y for not knowing how to appreciate the jobs that they have or the opportunities given....it is true to a certain extend but what Gen-Y is complaining have its' valid points...ask most of the Gen-Y and they will tell you that their current companies are no good, income not enough etc.   Well, let us do some simple calculations shall we? Here is a simple calculation.... The average rate for a rented apartment in the Klang Valley costs between RM800 – RM1000 per month depending on location. Car loan repayments are somewhere between RM600 to RM1000 a month, while monthly fuel expenditure is RM 250 – 300 a month; exlcuding tolls. Food tallies up to about RM800, if you eat out everyday three times a day, averaging at RM10 per meal. Add other costs like cigarettes, entertainment, internet and telephone bills and all of that rounds off to about RM3000 – RM3500...

Previously on Universal Rule of Personal Financial Management:- #1 - Spend Less Than You Earn #2 - Earn More #3 - Never Depend On Single Income   The rule of personal financial management #4 is more on the mistake that most people made when deciding on the insurance premium that suit them, and most of the time people either over-insure themselves or pay an excessive premium for insurance because they do not know how to optimize their money. For example, consider two insurance products for a person at age 35: term insurance for RM500,000 will cost RM1,625 per annum, whereas a whole life policy will cost RM14,225 per annum. We have to understand that the idea of getting insurance cover to protect our loved ones from financial hardship in case of an untoward event; which is the reason why we should go for the lowest possible premium and then investing the difference between the two premiums to optimize our money. Many have chosen the wrong premium mainly due to g...