Bro, if i may suggest, concentrate on your studies + perhaps take up some part time work in areas that are linked with your studies.
At this phase in life, your greatest investment is yourself.

NOTHING is for sure in the world - except for death (even taxes can be manipulated for the gungho ppl). FD? Nope - currency fluctuations & inflation hits FDs.

This post has been edited by wongmunkeong: Jun 10 2011, 04:33 PM

Bro +Newbie+, if U can get the details such as the discounts % or amount, your amount still owed and how many years/months to go VS Cash Builder info, i think all these can be boiled down easily. Hell, U may even decide to go do REITs instead of Cash Builder (if it's investment you're after, not storage & insurance)

Bro, just a thought - the ENTIRE game is to have much more cash flow in VS cash flow out, thus, if U do ignore income & expenses & just focus on investments & debts...

Again, if i mis-read your intentions about income & expenses, my apologies yar, i havent had my cuppa coffee yet this morning

Yeah, that bro might as well point to super wizard traders and investors in Forex, Options, Futures & Stocks instead of that article

Bottom line: There is no perfect vehicle for all situations.

Aiya, bro Dreamer - i'm ass-U-me-ing fler is semi-sighted lar, totally blind = main tikam sahaja. NEARLY as good as "investing" in 4D & lotteries.
eg. Like comparing me VS Michael Shoemaker (dunno how to spell his surname, sorry) in driving any vehicles >=200 horsies

This post has been edited by wongmunkeong: Jun 20 2011, 04:16 PM

beers and mobilephones are nothing compared to...
5. Car - buy secondhand, make good and keep in good maintenance
A "fake asset" - cost nearly as much as a property (some cars cost even more than medium properties) and yet depreciates + need to be constantly "fed" (maintenance, repairs, etc.) even if unused.

Anyone here wanna argue that it's generally better to buy a new car VS making good back an existing old car (if nothing wrong with the chassis lar) and keep on maintaining? I got the spreadsheets waiting for U + i'm in the auto-industry

This post has been edited by wongmunkeong: Jul 27 2011, 04:34 PM

Hi bro. Just to clarify b4 calculating ar:
1. Yr company provides a company car
2. U want to buy a car as a toy with a downpayment of RM20K & max 3 years loan
3. U have the downpayment cash in hand
OR
U going to get it via a personal loan?

well, IMHO, if it's just a simple car U want, U can cash & carry with your $20K a 2ndhand local car + have left over to ensure the brakes, engine, etc. works fine. Maintenance also cheaper - any ahbeng or ali workshop can repair and maintain. LIFEstyle

If lifeSTYLE - heheh - the sky's (and debts) the limit


Just an opinion ar - your $, your life, your choice. Checkout them prices here to get an idea
http://www.motortrader.com.my/

No car, no GF
OR
No fast car, no fast women

beware of what U wish for bro Both the fast car & fast women can drain U dry

BTW, buying is just one cost - the maintenance, repairs, insurance, road tax, operating expenses, etc. is a WHOLE other game

This post has been edited by wongmunkeong: Aug 16 2011, 01:48 PM

Cars, even if left in the parking lot, will need maintenance & repairs leh bro
eg.
tyres' rubber get too hard and brittle after 2 yrs+
engine oil wears down due to chemicals in the oil whether used or not

Weekend orgasms? i like your expression. Well, for 3 years' Hire Purchase with a $20K downpayment, i think U can get quite a ride. Unfortunately, i'm unsure how much "pain" U want to endure for that 3years' loan. Best to check with that motortrader website - i think they've got a built-in calculator too for what U want to calculate after U find a fast ride.

G' luck with the fast car (and faster women )

Sorry to read that U seem to be in a deep hole with your credit card + personal loan debts

Ok, i'd suggest as action 1: STOP DIGGING THE HOLE DEEPER
BTW, if U dont mind my stupid Q - how/why did U get a personal loan of $20K + credit card outstanding $11K?

The rest, is to surgically get rid of things that are bleeding U. Thus, just an opinion:
2. If your home loan is paying for a house that is TOO big, sell that or rent it out.
Heck, if you're living in it, rent out some rooms lar

3. Your VIOS - sell it and get a simple SECONDHAND cheap proton or perodua.
Much much cheaper than a new VIVA even with proper repairs. A car which ANY mechanic can maintain & repair is best - thus you're not locked and suckered into "ori service centres only".

4. Eat home or tah pau from home more, eat out much less.

5. Entertainment? Watch grass grow or read online/books

Generally above = LIFEstyle, not your current lifeSTYLE

6. Take all the extra savings generated from and go kill off your debts.
It may take U 3 to 5 years but hey, better than being in a deep hole and waking up with cold sweat worrying right? Been there before, not a comfy place . Personally, i prefer a good sleep AND waking up richer VS waking up poorer (due to debts' compounded interest daily)

This post has been edited by wongmunkeong: Aug 18 2011, 12:57 PM

Er.. yeah, go ahead and pay later. Hopefully can fully payoff within a month.
Else it's another fun now, pain later

U deserve it - go for it! (note the dripping sarcasm)

This post has been edited by wongmunkeong: Aug 18 2011, 12:59 PM

Heheh - personally i cant afford to take personal loans. Only the rich can afford those rates
Thus, my apologies, no experience other than it's at least 7%pa effective rate of interest (those that offered me lar), most ranging from 8%pa to 15%pa effective rate of interest.

This post has been edited by wongmunkeong: Aug 18 2011, 02:22 PM

You're doing well not spending like a newbie who just started getting $.

If i may suggest:
1. Focus on money management (see below COPY & PASTE)

2. Then learn and move into coverage (insurance)
At a minimum, U may need some health/medical coverage and perhaps disability insurance.
If U have ppl that are economically dependent on U OR worry about 36 dread diseases (major illness), then pls buy death & disease insurance as well
a. I'd suggest checking up with your HR on what and how much is currently covered by your employer
b. Buy term or whole-life insurance(s) to cover what is uncovered or not enough by your employer.
Term insurance gives the best amount of coverage per ringgit. Of course some will say (mostly agents) that whatever $ U put into term is "gone/burned", ie. no savings factor. Please check it out whether the savings factor is worth the incredibly high cost of insurance/investment-linked. Personally, i'd buy term and invest the difference - a HUGE difference per annum, like 4 times the amount


3. Then move into investments proper
Personally, i dont consider FD as an investment but as a storage for ammunition ($)
See the copy & pasted below on general investment and the ZIP file in an old post.

House - i'd suggest U save up at least 20% of down payment AND buy up to a size where the monthly mortgage is <=20% of your net income.
Reason: It's so much better to live in a home rather than to be eaten alive by one that is an oversized monster
U can always upgrade to another house as your income grows & rentout the old house right?

If U need further clarification after going through these, please feel free to ask


Money Management
COPY & PASTED from previous posting
May i suggest these ratios (massage it to your own requirements):
50% for necessities (like rental, groceries, clothes -not fun clothes ar). If U can reduce this, then go ahead and increase the % below to hit a total of 100%

10% for savings to build buffer fund. Once buffer reaches 6mths or more (you're choice here) of average monthly expenses, pour this amount into investing

10% for savings to invest.
Plan out an Asset Allocation big pix kinda thing first.
No idea? Then just do a simple
34% Equity excluding REITs / exProperties
33% Bonds
33% Properties/REITs
Once U've the big pix plan, then U should filter out what to buy & when to buy these Assets.
Please take a look at the ZIP file i shared earlier on example of Asset Allocation, methodologies, etc. - it's in the PowerPoint file.
http://forum.lowyat.net/topic/1577849/+413 Post #414 i think
Try to do it with a Big Pix (Strategical or Vision)
Then plans to achieve the Big Pix (Tactical)
Then the methods to execute each plan (Operational)
Every ENTRY reasons must have one or more EXIT rules

10% for feel good (charity, boys night out, that changgih Android GingerBread thinggy, fun clothes, fun food, gifting, etc.)

10% for education (pay off your PTPTN using this? or accumulate to further your formal education / street smarts via books/courses)

10% for saving to spend in future big ticket items like hm.. LED TV, new 2nd hand-car, downpayment on a home, etc.


Want something EVEN simpler?
Save 30% of your net salary
Sock away 15% into buffer growing as per above
Sock away 15% into investments
That's it - do whatever U wish with the other 70%

---

Added on August 22, 2011, 12:48 pmBeing prepared to take the opportunities that arises is the name of the game.
Thus, U may want to learn, prepare, set your triggers & goals first. When opportunity arises, then U'll know what to do AND have the $ to do it.
Personally, i wouldnt suggest LEARNING & PLANNING ONLY when U want to get into any investments. It should be done way before - like knowing where's the fire exit BEFORE a fire, not searching for it when there's a fire

This post has been edited by wongmunkeong: Aug 22 2011, 12:48 PM

er.. i think i've miscommunicated badly somewhere somehow.

The simple method: Saving 30%, Spending 70%
The saving of 30% here, i suggested that:
1. 15% be savings to grow your emergency buffer fund
ie. $ to help U get out of trouble when kaka hits the fan like sudden major car repairs or roof blown off by storm.
Once U've accumulated about 6mth's to 1yr's living expenses for emergency buffer funds (held in FD, savings and maybe bonds), channel the additional monthly incoming $ to Investments, thus making it a total of 30% to investments eventually.

2. another 15% to investments
NOT to buy gadgets and stuff. That comes from the 70% U spend


The other $ management method i mentioned has 10% as "feel good" budget.
Note that feel good = whatever makes U feel good, be it alcohol abuse, women, wine, gadgets, vacations
OR
even (shock & horrors) DONATIONS or taking parents & siblings out for a good time.


Low to low medium risk appetite?
If i were that, i'd do mostly Bonds / bond funds + REITs and dividend focused investing (80%)
& a bit of stocks/equity (excluding REITs) funds (20%)

This post has been edited by wongmunkeong: Aug 22 2011, 03:02 PM

it may take 1 year, it may take SEVERAL years.
The main idea is to develop a habit of spending LESS THAN U EARN.
Much less if possible, in order to build up assets that can generate MORE THAN U NEED in the future.
Comprehende?

Dude - if U can accumulate 6mths to 1yr's living expenses as an emergency buffer WITHIN 1 YEAR, U are one heckuva saver OR struck lottery/windfall

Hm, personally, i dont think of FD as investment but more of temporary storage while waiting for mega sale (stocks / equity funds / REITs / Properties). I mean, FD gives U what now 3.4%pa VS inflation of 4%pa to 8%pa. To me, that's called getting cooked slowly and dying without knowing what happened.
Mind U, i'm not against FD - it's just for different usage to me.

This post has been edited by wongmunkeong: Aug 22 2011, 03:32 PM

Bro - i think you're looking at RM800/mth too much
I'm talking about forming a habit to pay yourself first - ie. put aside 30% of your net income for your future self, not DEPENDENT on whether your GF presses U for $ or not

And when did i say FD isnt good or Bonds also not good? It depends on your expectations / risk appetite + how U use each vehicle

Nevermind.... i mustabinspeakity Mehican

This post has been edited by wongmunkeong: Aug 22 2011, 04:36 PM

er.. Nels, your "balance" of $112.60 is about 22% of your $500 salary already.
What's stopping U from saving 30%-35% ar?

Other than the obvious h/p bills of $126 which is taking a ridiculously huge % from your net salary.
U doing sales, marketing or brand comm - where U have to spend on mobile time?
If not, it's your choice

Next, apa tu "etc $162"? U may be able to save from there too.
However, the most obvious seems to be your mobile bills lor.

This post has been edited by wongmunkeong: Aug 22 2011, 06:05 PM

Not a seafood here though i think these books may help:

1. The Seven Habits of Highly Effective People by Stephen Covey
These 7 habits form the basis of a good life - in financial, health, spiritual and relationship.
Bottomline: Continuous improvement

2. Secrets of the Millionaire Mind by T Harv Eker
The secret is in the thinking or BEING a millionaire, then DOING what a millionaire does with his time & money and GETTING a millionaire's results
Bottomline: Money management + thinking like or being a millonaire = more important than just doing what a millionaire does (business, investing, taxation).

3. Cashflow Quadrant by Robert Kiyosaki
The differences in cash flow for employees, specialists/professionals (self employed), business owners & investors.
Bottomline: It's better to be on the business owners and investors quadrant - even if I'm currently an employee, I can have a few fingers or a foot in these two quadrants.

4. How to Make $1,000,000 in the Stock Market Automatically by Robert Lichello
This book has 2 main formulas, TwinVest and AIM, which uses fluctuations of the market to make money, logically. These formula are based mostly on consistency and Value Averaging to win more and lose less.
Bottomline: Don't fight the fluctuations of the market, use them as we do not know how high is high and how low is low - unless you've a crystal ball (may I borrow for awhile? ;P)

5. The TRENDadvisor Guide to Breakthrough Profits: A Proven System for Building Wealth in the Financial Markets (Wiley Trading) by Chuck Dukas, T. Parker Gallagher, and Ralph Acampora
Since investing and trading is a "human" activity, one can use Trend analysis to gauge the general market, sector, stock, mutual funds, etc.
Bottomline: The book sells you the idea that trend analysis, in and by itself, is a "killer application" but trend analysis as part of a two or three factor trigger works best - eg. Sell Rules: Trailing Stop Loss & Trend, Target Profit taking % & Trend, etc.

Read any good books lately? By the way, I deem the first two books as soooooo OMPH! that I buy several copies of them during book sales and give them to my team members and close friends. Wait lar - when I'm a multi-millionaire in POUND STERLING terms, then I'll buy and give them away to all friends & acquaintances ;P

This post has been edited by wongmunkeong: Aug 23 2011, 11:50 AM

From my previous checks (2009), SSPN returns are historically about 1year's FD tenure or slightly better.

Aw.. shucks, i'm glad U found them spreadsheets& powerpoint useful.
The data was gotten from them booklets from colleges like Sunway & SEGI in 2009. I didn't capture the UK & US costs because i know i cant afford to send my child there WHILE having enough for retirement . Base material rotten/thrown out liao - sorry.