hi guys, im a student, working part time. Earning about 1.3k basic with allowance from my parents, about rm500 per month . Cars, tolls, petrol is all provided by my parents (card) so basicly. i have like 1.8k to spend every month.

so its a total of 1.8k per month

my usuall spending would usually be

food: rm100-150 per week, which makes it Rm500 on average
hobby: i dont usually spend on hobby, but since i recently got a job, and some extra money. i started to spend some. like enhancing my car, poker games(which i always lose) , and thats about it. most of my exoenses is on my food. Er.. i dont have the amount. but this month(september) i spend about rm700 on my car...i already stop spending on my car. waste of money. Anyways. .. this are my usual expenses.

if i dont spend on my car. i would spend like 800 out of my 1.8k ..

So guys, every month. i if i manage to save up 1k. what should i do with this 1k?

1. study abt invetment.
2. make sure u hv insurance.
3. is ur education fund support by ur parent?

since, u still a student and u can safe RM1000 monthly. Assume u r not going to use the money near future.

1. RM200 in bank as emergency fund.
2. RM300 in bond funds
3. RM500 in equity funds or stock.

u must read/study/analize/research abt the UT and stock before enter it.

Or, if u plan to use the money near future, just let it in FD.

1) i have studied abit about investment, infact i had attended a seminar by t harv earlier this year
2) i think my dad bought insurance for me d. im not sure. but why is it important?
3) equity fund or stock, hmmm.. why not gold? or others..

yea.. thanks for the advice. im not researching on how and what to invest on. Thankss

IMO insurance is only necessary for protection and is not an investment. If you are just starting out in your career, the only insurance you would probably need is a medical insurance aka medical card to cover your medical and hospitalisation expenses. Life insurance is only important if you have dependents who are relying on your income. This is to help them cushion the blow in the event of your sudden death. So if your parents are financially independent and you don't have a spouse or child, life insurance is not so important. If your dad has bought you insurance, then just find out what kind of insurance it is and determine if you need further insurance base on your needs.

Whoa.. U are earning part-time $1.3K basic /month AND your parents are taking care of your cars, tools, petrol?
Nice...

What to do with the $1K?
Go have fun lar since investing isnt your cuppa + with BoP (bank of parents) juicing U up.
I'd definitely do that if i was in your shoes.. then maybe later (much MUCH later after the booze, women and food gets too much or samey samey), regret/feel a bit uneasy for "leveraging" on BoP rather than stand on my own 2 feet even though i can afford to).
Life's too short to worry

Your mileage may vary

u must be hv very good parent taking care of u. thanks to them.

let say if u hv enough money but don have insurnce. u need to spend ur money for ur medical expenses. u can safe ur hard earn money if u hv insurance.
check with ur father wat type of insurance u hv. get an insurance agent, ask him plan for u. dont buy insurance for retruns. insurance is for healthy. its shud be cover all the all the expenses include disability. life policy or medical card shud be enough.

ya, gold, good too. but dont put all the money in gold, very risky. just allocate 10-20% in gold. buy from banks is better and more safe..

everybody should hv unit trust/stock in their investment portfolio.

Hye all,

My household detail

* Married since March 2011 , no child yet
* Me & Wife - 26 years old , live near Putrajaya
* Me - Executive Engineering, GLC Company , RM2800 net
* Wife - Corporate Finance Executive, Public Listed Company, RM2700 net
* Me - Graduated from oversea university, bought a car there and bring back (no loan for car) and also no PTPTN loan ( fuuuhhh )

Me monthly :

Toll : RM100
Petrol : RM150 ( 20 minute , Honda )
Lunch : RM110 ( Menu 1Malaysia - RM5 lunch daily )
Installment : RM200 (AOWA Set Total RM4k)
Phone : RM170 (RM50 basic + RM70 3G + Wife RM30)
Unifi : RM150
Electric : RM150 ( Aircond + Induction Cooker + Waterheater )
Rent : RM350 ( of RM650 )
Parent : RM200
Entertainment : RM200
Groceries : RM200
Insurance : RM250 ( With investment plan )
Tabung Haji : RM200

Total Expenses : RM 2477

Balance : RM323

Wife monthly :

Toll : RM128
Petrol : RM160 ( 25 minute , Viva )
Lunch : RM110
Installment : RM500 (Loan 10k with dad because left previous company)
Car loan :RM500
PTPTN : RM250
Rent : RM300 ( of RM650 )
Parent : RM150
Facial :RM100
Entertainment : RM200
Groceries : RM200
BSN : RM200

Total Expenses : RM 2697

Balance : RM102

-------------------------------------------
Total Balance of us : RM 425


Side Income:

Web site -
www.loveina.net
www.tahusemua.com

Still don't bring any profit (promotion problem). Any advise ?

Summary

1. I do think that i am underpaid. Thinking to find job that are good in salary but work office hour only.
2. My expense is above average, but i cannot escape from this modern lifestyle.
3. My side income not working as per plan. Need more knowledge in web marketing.

Problem

1. Want to start buy a house around Putrajaya (Bangi, Kajang..). But there are no decent house within RM250k below around here. Any advise ?
(With 4% loan interest will be pay by company, i do think it will cushion my burden)
2. Starting to save for investment, any advise with current limited salary balance ? Currently saving in Tabung Haji. Last year rate 5.5% ( in positive side, already deducted 2.5% for zakat )

This post has been edited by bilboblue: Sep 27 2011, 04:12 PM

You and your wife's expenses are very high. If I were you my first action plan would be to reduce expenses. You want higher pay but you want a 9-5 job. Unless you have a special skill that is in high demand, that is unlikely to happen in the near future. This is what I would do:

1. As you are renting, move to a house nearer to your workplace or your wife's workplace whichever is cheaper. Sell off one car (the one with the installment) and share with your wife the other. If staying near your work place is cheaper, she can send you to work and drive to work after that or you can take a bus or walk. Save RM800

2. Cut out the entertainment. RM400 for both of you is excessive. Perhaps RM100 per person. Save RM200

3. Cut out the 3G. You already have Unifi or cut out the Unifi and utilise the 3G. Save RM70/150

4. Groceries RM400 and eat out another RM220. That is a total of RM620. Way to much. It can be reduced to RM400 per month. Just cook at home more. Save RM220

5. What is AOWA set? If you have to pay installment for a 4K purchase you shouldn't buy it in the first place. Save the 4K and then buy.

6. Utilities is very high especially when both work. My household of 2 only uses RM30-35 per month of electricity and RM6 of water. You should target below RM80. Use energy savings bulb and switch of unused lights, appliances. Save RM70

Total saved is about RM1400.00. Since you are a bumiputra, you should save most if not all your money in ASB which is giving 8-10% return per annum. You can easily save RM1800 to RM2200 per month in your ASB. In two years you can afford to put a downpayment on a property of RM300K-RM350K and with low interest rate of 4% (and I think your company can even give you a 100% loan) you have a distinct advantage as your monthly for a 30 years loan is less than RM1000 per month. You can also have a child then.

This post has been edited by cynthusc: Sep 27 2011, 10:09 PM

How big is the house? where is the location? Think whether you can rent out the extra rooms in your house to other tenant to cover the loan. Sooner or later you might need a bigger place too. However if it's not a hotspot where every one want to rent then see whether by that time it appreciated if it is you can just sell of anytime. 2% penalty though. which suppose to be around 20k +-

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Added on September 27, 2011, 10:22 pm+1

This post has been edited by kidmad: Sep 27 2011, 10:22 PM

This post has been edited by bilboblue: Sep 27 2011, 10:51 PM

nowadays is really hard..i have a friend a degree holder but worth only 1.2k...he is working in sabah..

From your comments, i assume that you are only concerned by the fact that you are paying HIGH INTEREST on mortgage.
- Not that you cannot afford to pay monthly installment
- Not that you want to make other investment
- Not to make savings
- BUT = To get away from paying huge interest

High Interest on Mortgage
What you pointed out is TRUE! The interest of 500k loan for 30 years tenure is 380k.
- Given BLR = 6.6 and your mortgage is blr-2.4, which makes it 4.2% annually)
- Current bank lock-in period is 3 years for early settlement and 5 years for refinancing (3% penalty)

But do you realize how many people out there paying these kind of interest? Everyone!
Do you think that all these people haven't give it a thought? But why?

Property Market
Property price will not go down. All my projects 20x70 all above 600k.
My team over the years are covering projects further and further away from klang valley.
Take area in in Kajang, Sri Petaling, Seri Kembangan, Nilai. Still 20x70 got 400k.
Whereas, most of my sub-sale loan above 1mil.
All client top-up due to the fact <MV.

We are transitioning from developing country to developed country.
Property price go up (Singapore).
Slowly even FD rates will be reduced (Singapore).
Banks will charge you for depositing $$ in (Japan).
My own pools of investor thinks that investing in UK is better. True.
Half of my real estate agents are selling foreign properties (loan under OCBC and Maybank).

Proposed Solution
1. Do not sell off your house.
2. Want to buy house, buy under-construction (near proposed MRT station).
3. Saving interest on mortgage - use flexi home loan.

Let's ponder this deeply, you are looking forward to other smarter way so that you can get away from paying huge interest.
But is selling the house is the smart move? Yes less interest because less value. The amount of interest you pay is corresponding to the value and yes it worthwhile because the value will only increase. Unless the MV in the area is below par. Rawang, Sepang, etc.

Flexi home loan = 1 home loan account + 1 flexi account.
Interest Rate = Amount of Outstanding Loan - Total $$$ in flexi account.

Example:
1st year
Total deposit payment = 29k
From there = 20k is to interest and 9k to principal
Thus 2nd year Outstanding balance is 500k-9k.
First few years mostly go to interest. Harsh fact. All banks. Same thing.

However with flexi. Say you got 100k for 30 years in flexi.
Interest rate = (500-100) x 4.2% [You save 185k in 30 years]
How much have you save?
Don't have 100k? Just save more every month.
Your monthly deposit = 2.5, if you save 500/monthly for 1st year only already saved 14k.

Finally, bank charge you annually 4.2% on mortgage. If you got $$ will you deposit in flexi account @ into FD (with 3.5 interest)?
Flexi account = your current account (got ATM, cheque book, monthly statement) but if offset your loan interest.
Again is selling you house is a smart move?
People in working class only thinks about saving $$$.
Not making more $$$.

House = asset if it yields return through rental @ investment
House = liability if you live in it

This post has been edited by Gyokumen_Koushu: Oct 7 2011, 06:24 PM

Hi All,

Need Some advise here...

I have a personal loan which I pay Rm1030 monthly. 5yrs to go...

I also have ASB loan, monthly installment is RM 1150. Start jan 2011, will get dividen jan next year...

So, the question is what is the best move for me either after get the dividen, withdraw it and pay my PL or just keep the dividen inside ASB to get more on 2013?

thanks...

hye..greeting all

just wanna ask opinion from u all...

i just got work early this year~so i plan to save/invest my salary since i dont have any liability(is it the correct term?)..no car loan..no personal loan...etc..just my give some for my parent only...then the rest im free to use...

i have read sooo many topic relating about this~make me ..
so here the thing i have read

1.asb
1.1 --> make asb loan then what?
2.buy gold
3.save by myself
4.stock
5.invest in bussines


can someone pls advice me which one is simple n less headache to understand....nvrmind if the profit is not high...as long as it profit



errr.....hope all of u can understand my explaination@situation@question~

thnx in advance

This post has been edited by da drummer: Sep 30 2011, 12:29 AM

Hi Drummer, congratulations on starting work!

In so far as investment is concern, you feel pening because people all say that a certain type of investment is better then others. This is because people invest in instruments that they are familiar with. I myself invest in property mostly but have very little investments in stocks and gold because I am not familiar with those investments and therefore consider them risky. My advise to you would be to first start a savings plan by putting away an emergency fund (about 6 months salary) to cope with any emergencies you might have. After that, save 20-30% of your income in ASB (which is capital guaranteed) to the maximum of RM200K. While doing that you should read up on investments and research on the different risks involve in each investment. Once you are more confident in the investment you like then you can take out part of your savings in ASB to invest in the instrument of your choice. So it is important to learn on the different type of investments, the risk involve, your own risk appetite and financial goals.

Anyone got any tips on financial management if work in singapore?
Coz it might be slightly different from msia. I am from msia but just started working 3 months in sg. plan to be here maybe 3-5 years at least, or who knows for good?

hye..a big thnx for ur reply..yeah...i agree with u...im not familiat with those investment..haha..so i just play safe...do what i am sure...now mayb i will save in asb n at the same time learn about the other investment..he2...

Hi JonYeap. Im living in SG as well. May I know your job and where do you live in sg?

hi, i am staying near jurong east mrt station.
i just started 3 months. working in a shipyard as safety engineer.
nice meeting u too... wat bout u?

As a safety engineer, I guess that your salary could be lucrative.