Why you are digging old topic? By the way, I hope you are not an insurance agent trying hard to promote your products here.

Lol.. I din notice the date, sorry ya, emm.. I was suggest you only =)

Here is my expenses. Hope you guys can advice me for better.

Income

Net Salary : RM6200
Rental Income : RM1000

Expenses

Car Loan : RM1150
Housing Loan : RM800 (rent out) + RM1000 (joint-name)
Phone Bill : RM138
Credit Card : RM2000 (0% BT & EPP for renovation) - after May will deduct RM800
Insurance : RM300
Food : RM1000
Parking : Claim office
Petrol : Claim office

Cash

Savings : RM14000
Balance in stock account can withdraw : RM10000
UT : RM5000

Only give to parent once a year RM10,000.

This post has been edited by adreina: Mar 6 2012, 02:58 PM

wahlau ur expenses is 6400...ideal emergency fund should be 6 months. that means u need about 38000 cash which is liquidated.btw, u have a job that pays well and ur commitment is very heavy

Income: $7,200
+Net Salary : RM6200
+Rental Income : RM1000

Life Expenses: $6,421.33; 89% of Income
Car Loan : RM1150
+Home Loan: RM1000 (joint-name)
+Phone Bill : RM138
+Credit Card : RM2000 (0% BT & EPP for renovation) - after May will deduct RM800
+Insurance : RM300
+Food : RM1000
Parking : Claim office
Petrol : Claim office
+Parents averaged pm: $833.33 (Only give to parent once a year RM10,000.)

Monthly Investments: $800; 11% of Income
Rental Income Housing Loan : RM800 (rent out)

Analysis / Opinion
That's 100% ish of your Income's cash flow / usage above.
89% spent, 11% invested/saved for now until "....May will deduct RM800"
That's a heckuva lot of expenses %, even including rental income.

FYI - personally, i think we should save at least 20% of net SALARY (preferably >30%) and 100% of all investment returns. Thus, there's at least some balance of $ for "living now" + $ invested into assets (generating $) for "future living"

When the $800 is freed up, i'd suggest socking it away for "Emergency Fund" (3mths living expenses minimum or up to 1 yr IMHO)
Once U've built your "Emergency Fund" or at the very least 3mths' average living expenses, then i'd suggest channeling some to "Investment Assets"

Use the time to pickup on Asset Allocation, Classes of Assets, Value Investing, Value & Dollar Cost Averaging, etc.
Then plan out a "game plan" for yr retirement, children's schooling, etc (goals & bucket list ).

-------------
Invest able / Investments Assets $29,000
Savings : RM14000
Balance in stock account can withdraw : RM10000 <-- U mean CASH in yr trading/investing a/c OR stock value? If stock value, i'd suggest U do NOT think of it as "withdrawable" anytime
UT : RM5000 <-- again, similar with stocks if this value is UTs bought but not cash allocated to UTs, i'd suggest U do NOT think of it as "withdrawable" anytime

-------------
Just a thought - no right / wrong.
Each of us have different priorities in life - heheh, i read some forumer spending high % of income on Coach, LV, cars, etc.

This post has been edited by wongmunkeong: Mar 6 2012, 04:48 PM

Thanks for the comment.

The Balance in stock account can withdraw RM10000 is cash in trading account. Stock Value that I hold did not included.

By end of this year should be alright as the BT and EPP end.

This post has been edited by adreina: Mar 6 2012, 04:56 PM

Ass-U-me-ing U are talking about Fixed Deposit:
a. At the end of the FD tenure, U GET your interest AND if U wish, can auto-renew capital + interest for another term based on the prevailing rates
Note - some banks may not allow auto-renew, some may only allow capital to be auto-renewed term, etc, saw some variations before.

b. U can withdraw your $ anytime for FD BUT U dont get a cent of interest (usually)

c. If U put in again, reboot lar - ie. new tenure & terms %

d. What kind of Q is "Can i put in $1.5K for 3 mths tenure or i need to put in RM500 each month?"
It depends on:
+How much $ U have to put in now, and future
+Whether the bank U want to lend $ to has FD that accepts $500 for 1 month tenure or $1.5K for 3 months tenure - each bank has a minimum amount based on the tenure U want to FD to the bank.

Again... U do know what Fixed Deposit is right? All the above is relating to FD - not "general investment accounts", binatang apa tu i tak tau

Hope the above helps rather than more

lol that was my 2010's post. thins have changed. i postponed my plan to continue my study maybe to next year as i will get married at the end of this year.

Let's revise my expenses in 2010:


This post has been edited by mnhma: Mar 7 2012, 11:57 AM

Good job in revising your expenses!

I got a relative whose debts is over RM300k (due to credit card & personal loans), monthly income only RM10k... the debts is unmanageable ,the "hole" is getting bigger.

Yes, they don't have loan management / knowledge.

Any solution or guidence?

OR if you think that this is a business for you / your expertise, pls PM me for contact. They are looking for solution (beside looking for loan shark lah)

TQ

Hello guys. Been following this thread and felt that I need to get some comments/opinions/ideas. Is a total stranger to finance related matters. Age 30 years old. Thank you.

Salary: RM6,600 (Net: RM5,450)

Monthly expenditure. Total: RM2,830
Car loan: RM750 (ending in 2 years)
Education loan :RM400 (ending in 25 years)
Phone: RM30
Petrol: RM150
Meal: RM300
Life Insurance: RM200
Parents: RM800
Miscellaneous: RM200
Credit Card: Fully paid

Savings: RM80,000
Savings account: RM30,000
FD: RM50,000

This post has been edited by Kurt Cobain: Mar 8 2012, 10:59 AM

Monthly Net Income: $5,450

Monthly Expenses: $2,380; 43.75% of net income
Assumed Savings: $5,450 -$2,380 = $3,070; 56.25% (and this is excluding EPF and bonus savings!)

Investable / Invested Assets
Fixed Income type: $80K
Biz Equity type: ??
Real Estate type: ??
Commodities / Metals / Alternative type: ??

In my humble opinion:
1. Whoa.. 56% of yr monthly net income saved & invested!
Dude, you're on your way to financial freedom within 6 years to 13 years, taking into account your Investable / Investment Assets shared.


2. Keep on keeping-on with yr $ management. U are one of the few (can count on 2 hands' fingers) that i've seen that is spending less than 50% of your net income.

3. Your investable assets / invested assets seem to be all "Fixed Income" type only
Long term - U will generally lose to inflation.
Short term - great opportunity due to buying power
Bottom-line: I'd suggest a bit more balanced Asset Allocation
Note - i'm ass-U-me-ing that what U shared is all U are holding k. If U are holding stocks/equity funds, a biz or two + properties & REITs, then whoa... I wish i was as tuned-in as U in my 30s

This post has been edited by wongmunkeong: Mar 8 2012, 01:06 PM

Just wanna know, any comments from experts here. This year gonna be 30 years old... Leading normal lifestyle...

Monthly Salary
RM2,300 (Net Salary : RM 1,981.25)

Expenses
Food : RM 350.00
HP Bill : RM 100.00
Petrol : Claimed from company
Credit Card : No debt
Miscellaneous : RM100.00

Saving + Investment
Saving A/C : RM 7,400.00
Fixed Deposit : RM 20,600.00
PNB : RM 31,450.00
UT : RM 28,000.00

Every month got DDI for RM500.00

Anything to recommend?

Thanks...

This post has been edited by kabal82: Mar 8 2012, 01:28 PM

Monthly Net Salary: $1,981.25

Monthly Expenses: $550; 27.76% of net salary

Monthly investments: $1,431.25; 72.24% of net salary!!
+DDI: $500; 25.24% of net salary
+Savings: $931.25 ($1,981.25 - $550 -$500);

Investable / Investment Assets: $87,450
+Fixed Income type (Savings + FD): $28,000; 32% of Investable / Investment Assets
+Biz Equity type (PNB + UT assuming all equity funds): $59,450; 68% of Investable / Investment Assets

-----------
In my humble opinion:
1. How do U save 72.24% of yr net salary, when yr net salary isn't like $20K or $30K?!
2. How did U accumulate $87K+ within 5yrs+, at $2K-ish net salary?
3. U'd be financially free 3 to 11yrs if U keep on going like that (excluding inflation)


Dude - U gotta share with us what's yr secret in expenses control + investing.
I'm ass-U-me-ing U live in Klang Valley lar, else heheh.
PS:
I baka - i didnt notice "Sarawak" on yr tag/from hehe
Still - what U've done is nothing to sneeze at, especially the accumulation and growth of investable / investment assets

This post has been edited by wongmunkeong: Mar 8 2012, 01:54 PM

Thank you Sir for your kind words and analysis

You are right. I only have these Fixed Income only with no property investment/stock/equity (which led me to post here as rather concern on my status). I exclude bonus because I consider it as can be used for those one time buys like watches/travels etc.

By asset allocation, it means I should try looking outside FD right? I have been considering alot about buying a property for investment/renting purposes. Will need to read up more on this topic.

Can you please elaborate briefly the term 'financial freedom'? Does it mean no debts/loan?

I am looking at the numbers at the excel screenshot and will ask again when I am in doubt.

Again, thank you so much for your time

Wei..no "Sir" "Sir" pls. The Queen of England hasn't Knighted me... yet
Heheh, if i dont include bonus as my net income savings, i'd be only doing 30%+/- (including bonus 46%+/-, NOT even near yours). Yours is great at 56%+ and excluding bonus!

-------
Spot on - Asset Allocation, as in look into moving some resources (from Fixed Incomes like FD and savings) into Biz Equities (stocks, equity funds, businesses) and Real Estate Equities (Properties and REITs). Gold, commodities, and other "alternatives" should be secondary only, IMHO.

The main reason for Asset Allocation is to have assets in 3 distinct types of classes, which does NOT react the same to economic news/cycles.
Note though, some times different asset classes look like reacting the same way to a major problem (eg 2008 Nov to 2009 Mar) - both Biz & Real Estate equities plunged. However, bonds went up and thus, even though 2 of the 3 asset classes held fell, if one just held a simple 1/3 of each, one can use the 1/3 in Fixed Income to buy cheap equities and make a killing in end 2010 and 2011

A simpler way of thinking about the concept of Asset Allocation is:
Assigning players of a football game.
Players = your $/resources.
Football game = Goal to achieve Financial freedom
+IF U assign all 11 players as defense & goalie, U think can win/score? NEAR invincible defense (can still lose) but cannot score at all to win
+IF U assign all to mid-field, maybe can score a bit, may be can defend a bit
+IF U assign 3 attackers + 4 midfielders + 3 defense (+1 goalie), U have a good chance of scoring + covering defense / supplying opportunities to score + good chance of defending
Thus, attackers = Biz Equities
midfielders = Real Estate Equities
defense = Bonds & FD, with final defense/goalie = Cash

-------
Financial Freedom means different things to different folks (eg. free time, choice, etc.)
I took the most literal meaning - having assets that can generate $ >= expenses, without working 8hrs a day
eg. Working an average of 1hr to 2hrs a day to maintain/manage these assets, is to me, acceptable though may not be acceptable to some.

simple eg.
Having $1.6M in FD which gives 3%pa = $48K interest pa.
while annual expenses = $35K

OR better eg.
Having
$533,333 in FD & Bonds averaging 4%pa: $21,333pa
$533,333 in Properties & REITs averaging rental/dividend yield 6%pa: $31,999.98pa
$533,333 in stocks & equity funds averaging capital gains/dividend returns of 8%pa: $42,666.64pa
= $94K+pa on average VS annual expenses of $35K
Note:
Stocks' & equity funds' returns can swing wildly, from experience +70% to -50% in a year (excluding the crazy 1997-1998 -80%), though long term 10yrs average is approximately 8%pa compounded. Thus, if one is thinking of "Why not plonk everything into Biz Equities?", one may not last long enough to see the 8%pa returns (ie. starved to death already).
--------

No probs - glad to be of help rather than causing more

This post has been edited by wongmunkeong: Mar 8 2012, 03:32 PM

hi wong, can u share the excel sheet calculation? or izzit need fees? hehhe thanx

Aiya - free lar, self made
I shared a whole boat load of Excels somewhere in here (Personal Finance) or other topics/threads like Fund Investment Corner earlier. All in one ZIP file.

Attached in a ZIP file is just the "Net Savings to Financial Freedom" Excel as requested.
Please note
a. it DOESNT take into account of INFLATION %pa yar
b. Pls change the values in YELLOW cells to your ascertained numbers / % / variables
c. err... U can also change the savings % rate hehe though not in yellow
The Excel sheet was just to prove that if one were to save at least 30% of net salary, one can reach financial freedom less than 20 years with 8%pa compounded (thus Asset Allocation plays a major role too).
Spending Less/Savings + investing properly = DOUBLE TURBO BOOST!

This post has been edited by wongmunkeong: Mar 8 2012, 04:36 PM


Attached File(s)
 30_percent_net_savings.zip ( 5.6k ) Number of downloads: 90

thanks wong will start to play will it. hopefully after april start a new book

Thanks a lot bro. I understand what your explanation well