er... ""FD, in my humble opinion, IS WORTH IT for HOLDING idle cash or while U are building up an amount for some investment." is self explanatory i think.
-------

as for:
"...That is, unless U have a better option, called "Flexi Mortgage" hehe."
Well, IMHO, instead of plonking my cash in any savings or FDs, better to plonk into my Flexi Mortgage as my mortgage is 4.4%pa daily rest - ie. whatever amount of extra $ i have placed in my Flexi Mortgage is considered capital repayment, thus i dont get charged 4.4%pa for that additional capital repaid amount, thus in effect "saving me" 4.4%pa. No FD gives me that % and also flexibility to take out (re-draw).

If U are confused with the above, please search for flexi mortgage in this topic - i think i gave some detailed examples. Sorry - i'm too donkey lazy to repeat here

This post has been edited by wongmunkeong: Mar 18 2012, 09:12 PM

It's ok, thanks for the explanation.

KUALA LUMPUR (Mar 19): The completion of property developments under the low deposit incentive schemes, coupled with Bank Negara Malaysia’s (BNM) changes in bank loan computations from gross to net income, may result in higher rates of defaults, according to industry observers. Read more at Rising Property Defaults Expected!

First of all I think it is great that you are taking the first step towards gaining your financial life back. It's never too late. I grew up in a relatively well off family but due to personal tragedies I had to start fending for myself since I was 20. Because I had a very comfortable life before, it was difficult for me to differentiate between my wants and my needs. Here are some tips and suggestions:-

1. Totally remove Astro. It not only saves you money, it will help prevent you from being influenced by commercials to buy, buy and buy more. Take up another more beneficial and cheaper hobby like reading books ( you can borrow from the library or friends)
2. Take stock of what you have and sell it off. Clothes that you haven't worn for a year, memorabilia like football collection etc. Sell it off. No point keeping stuff when your financial situation is dire.
3. Learn to cook. Get a cheap secondhand cookbook or ask your mom to teach you to cook simple dishes. You will be able to reduce your food bill by half. Eg. Cooking a spaghetti for 6 individual meals cost less than RM25 but a plate of spaghetti outside cost RM25.
4. No entertainment until all your debts are paid. Don't you think that entertaining yourself since 24 is enough? You want to be a husband and a father? You need to manage yourself first before you can manage a household.
5. Create a budget. My suggestion for the next 1 year:
AKPK - RM200
Insurance - RM150 (if you don't have dependents, life insurance should not be taken. Just take a medical card)
Utilities - RM40 (stop wasting energy - My house of two people only use RM40 per month on water and electricity)
Food - RM400
Transport - RM50
Phone Bill - RM30 (prepaid)
When you get your salary, Take out the above cash as per the budget and put in envelops designated for the respective purposes.

Balance - RM1710 (To be automatically withdrawn from your account so that you have no chance to spend it)
- Put away RM700 in an interest bearing account that does not have an ATM. Give the passbook to your GF or mother or father etc
with clear instructions not to give it to you unless a real emergency occurs (and a football kit is not an emergency) - This will be your
emergency fund.
- Put RM1010 towards your debt. Until you pay off all your debt and build a good credit, how can you plan to buy a home and
marry? You want to save RM15K and then marry? If you don't get out of debt first, marriage should be the last thing on your mind.

Your goal should be; in running order : Stop buying crap, clear what you owe, build a 6 month's emergency fund for emergencies and then save for a wedding.

Ooo.. even more power = prepaid mobile WITH "SUPER LONG LIFE PLAN"
eg. for my mum who hardly uses mobile, Digi prepaid $50 then sign up for "Super long life" plan (or something to that effect) which cost $30-ish but i dont need to reload for 1year! heheh
Yes - i'm a skint flint coz my mum's house has fixed line and she hardly goes kai kai & use mobile to call out (we usually call her)

This post has been edited by wongmunkeong: Mar 20 2012, 05:17 PM

Seem like everyone here are finding a best way to save money and savings by investing in various programs.

Well if anyone here got RM35,000 (sound to much huh?!) to spend in investing, would you be interested if i said you can get 15% - 19% return (sound to good to be true huh?!) annually for 4 - 7 years of investing?

This is really good investment and if any of you interested in this, pm me i explain more. Infact i will show you how this things gonna work and how can you get your capital (Rm35000) back within 7 years (Rm70000). It`s mean double your capital just only in 7 years.

Contact me if any of you interested.

er.. that's 10.409%pa compounded only not near 15% - 19%, based on $35K principal, 7 years locked-in and end value $70K.

If U meant 15%-19% simple calculations, how did U get that?
($70K/$35K) - 1 = 100%

BTW, why so shy to share here ar if it's a good investment? At least the gist or structure of it lar if too convoluted to go into details. I'm sure if it's worthwhile, lots of interested parties

Bro munkeong,

Mind to share how u derived the 10.409% compounded ?



This post has been edited by stupidbump: Mar 21 2012, 10:35 AM

Excel

Hello! Need some guidelines on what to do with my money.

I'm currently making RM1900 to RM2100 a month, depending on amount of OT. Below are my spendings:

Petrol - RM200
Food - RM400
Parking - RM60
Toll - RM176

Total = RM836

Those are the fixed spendings each month, and whatever's left I use for occasional entertainment, which varies around 100-200 each weekends.

I'm currently not in debt, no house/car/education loan. I have 2k+ in savings currently. I have zero knowledge in investments.

Where should I start?

got it!

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Added on March 21, 2012, 10:57 amBro Mun Keong,

Why is it not the simple calculation of

[(70000-35000)/35000]/7 x 100 = 14.2857% p.a if its not stated 'compounded' ?

This post has been edited by stupidbump: Mar 21 2012, 11:05 AM

Net Income: $1,900 (assumed lower just in case / prudent)
Total Necessities: $836; 44% of net income
Fun/Feel good: $600 (assumes $150 per weekend *4weekends per month); 31.58% of net income
Savings for Buffer & Investing = 100% - (44% +31.58%) = 24.42%

In my simplistic opinion:
1. Nice start - no debts & 24.42% of net income's savings per month
2. Continue to manage your $ as per now OR even better, aim for >=30% savings on net income (excluding EPF)
3. Accumulate $ in Savings A/C, FD and Bonds/Bond funds to cover at least 3 months' average expenses, preferably >=6 months average expenses IF U are the sole breadwinner OR it's hard to move jobs in your area
4. While doing (3.), learn about
a. Asset Allocation and asset classes. From here, U will be able to pickup the basic concepts of risk management VS returns + types of investments' pros/cons/expected returns
b. Value investing, dollar cost averaging, value cost averaging - from here U'd be able to pickup on WHY and HOW to buy/sell/hold
c. Draw up your own cohesive money management + investment plans based on all the above
5. Execute, track, re-plan if necessary (ie. changes in life or yearly/3 years goals not hit)
6. Keep learning - and repeat 4c to 6

---

Added on March 21, 2012, 11:21 amin my simple logic, it's more realistic to know the %pa compounded (or CAGR Compounded Annual Growth Rate) as it's comparable "head to head" so to speak, with cost of investments (eg opportunity cost of not paying down mortgage of 4.4%pa compounded) OR other options like FD 3.3%pa, etc.

Simple calculation U stated does NOT take time-value of $ into consideration, thus unrealistic / incomparable %

eg. U can get a 100% returns in 7 years, thus simple average is 14.29%
HOWEVER, if U factor time into it, thus compounded pa, it is just 10.409%

IF U use 14.29% to compare against another opportunity which states 11%pa compounded, U may blur-ly go for the 14.29% purely on bigger number of %, though it's actually lower (10.409%pa) than 11%pa returns.

This post has been edited by wongmunkeong: Mar 21 2012, 11:21 AM

Thanks! I'll aim for 30% savings on net income!

All the best !
I am also aiming the same objectives as yours .. but in the midst of eliminating the outstanding debts that I have with the banks ..

Hi,

After following this thread for a week or so, i think I should no longer only think, I should post something here and do it.




My plan is when my pay comes in, will throw RM300 into my savings account. RM200 into another saving account which I can withdraw during emergency, any balance during end of the month, goes into savings.

Planning to change my 20 yr old car to a 5yr +- vios by end of this year.
Upon changing car, I should be able to have RM300++ extra to finance into it ($250 from TV and saving of $50 from petrol).

My forecast on spendings by end 2012 early 2013


Wondering should I just leave my monthly savings in account or dump it in those monthly FD thing to generate a little bit more interest



This post has been edited by NoiZy: Mar 23 2012, 10:13 AM

I was wondering what type / sort of car you are planning to purchase that hits up to RM700 per month for the hire purchase loan repayment ? No possibility of your current job for salary adjustment ?

I should be getting an increment soon, unsure of amount, so just assume increment RM100.
By next year, will fight for a bigger piece, so total nett salary should be $2,800

Car am planning to buy 2nd hand Vios. Actually the RM700 I just pluck out of the sky. But I believe I want to pay back more if possible.

This post has been edited by izzudrecoba: Mar 21 2012, 05:44 PM

Halo. i'm K'.

Im 21 this year. for my past 20 years life, i doesnt care about having money or not,. i feel comfortable for what im doing and never think about the future plan. day after day just go on with my routine, study, aiming for passing colour in examination.
in the year 2010, i met a friend. he got a degree, a nice job in eggineering sect. but he quit that all because he said it a boring life and. he regret for not enjoying life in his student life. Maybe i will also exprience the same thing if i dont knew him 2 years ago. just thinking about study and didnt realize all the fun thing and chance around me.
now i'm still study but make time for outside activities, sosialing with others and extra2... I also start open my ASB, doing some part time works and get learning busnis.. money cant buy everything, but everything buy with money.

BTW,
For Sabah and Sarawak who concern about their health status, i sell a health care product base on stem cell. just pm me.

Turning 24 this year and entered the workforce somewhere in May of last year. Here's the breakdown of my monthly ins and outs;

Salary + Allowances: RM2,500 on average (nett)

Makan: RM500 (inclusive of eating out with the GF during weekends)
Insurance premium: RM200
Parents: RM500 (refused to accept it at first, but I believe its my obligation as the eldest son, seeing as they put me thru my entire life and university)
Phone: RM60
Supplements: RM130
Entertainment: RM200
Transport: RM80 (take public transportation to work on weekdays)
Petrol: RM100 (take the car out on weekends)

So after taking into account the expenses, I've got roundabouts RM730 left. No financial obligations at the moment in time, staying with my parents, using the car they got for me when I was in college. Its not as high as I like, but that'd do for now I guess, until I get a bigger paycheck.

What I have stored as what I consider as my personal wealth is;
1. Savings: RM1.8k
2. FD: RM12k on a 3 month rollover
RM5.1k with a one month maturity (to credit back int + principal into my savings upon maturity - I generally keep this as emergency funds, but if I don't need to dive into them I'll throw them back into a 1 month FD again.)
3. No credit card debt. Firm believer of spending only when I have cash in hand.

Rule of thumb when managing my funds are;
1. Excess cash for the month along with my 1 mth FD int + principal will be thrown back into a 1 month FD.
2. Keep my savings at least around RM2.5k for the month ahead.

Personal goals? Well, I plan to do a little Euro trip in 2015. Need about RM16-18k for that. Lolz. And to get a decent apartment and get ready to settle down by 30. Achievable? Hope so. More advice from the sifu's here would be awesome. Mum has adviced me to dabble in shares, but I'm waiting for the right time to start. Maybe in the next downturn perhaps? where cash is king and stocks are cheap. Haha.