MONEY MASTER

As we all read it from the news everywhere that the household debt in Malaysia is on the rise and the household debt has been going from 66.7% in 2009 to 74.6% end of 2010. What this is actually telling us is that for every RM1,000 that we earn, RM746 is used to serve loan ( source ). While I have been thinking of promoting debt or loan in this blog, but finally kill the idea of doing that as I know there are many people who cannot control once they stepped into the world of debt - even a financial pro. Below is the story of How a Financial Pro Lost His House . I find that this article can serve as a reminder to us that excessive leveraging has its danger as well. ONE night a few years ago, when the value of our home had collapsed, our debt was out of control and my financial planning business was shaky, I went to take out the trash. There was this enormous window that looked right in on the kitchen table, and through it I could see my wife, Cori, and our four children eating dinner. I...

The followings are the key take away from the Malaysia Budget for the Year 2012 which was tabled by the Malaysia Prime Minister, Dato Seri Najib Tun Razak last Friday in the Parliament. - The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation” - Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil - In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment - GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption - In 2011, the economy is forecast to grow by 5-5.5% - Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP - In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6% - Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for manag...

"Price is what you pay. Value is what you get." This is one of the famous Warren Buffett's quote that I like most. In fact, this has become one of my motto whenever I do shopping, be it in the stocks exchange, or in my day to day shopping routine like groceries, buying clothes or investing in transportation mode and expensive gadgets. Ok. Why do I think this quote relates to the blog until I put it as the Quote of the Day? Well, let just say I just want to remind myself that price is only something that I will need to pay and it is the value that I should look into on something that I wanted to invest, be it stocks or clothes or food or many other more. So, in other words, this quote can apply to almost everything in our daily life. Let me give an example over here. Hmm....let me see, well, I have few pairs of sport shoes, different brands and price range as well. I usually will get a pair of shoes made locally, price range about RM60-RM70. Here is what value and the less...