A good test indeed on you how to be resistance and perseverance .

hmmm
ok say now salary say about rm13k

so take home is how much? say 10k

the epf is already having a saving rm3500 per month (+ employer contribution) rite?
so retirement got quite a good sum


now balance 10K.

Pay House loans : rm2.5K
Investment prop under construction: rm1k
Children n food/other expenses : rm2.5k

Ok not extra money per month rm4K

what is good to do?

better dump into either the housing loans?

Yes, but you have to calculate any fees charged by bank for withdrawal... e.g. some banks will charge certain amount if you withdraw the excess payment, e.g. RM25 per withdrawal.

So assuming your prop loan interest rate is 4.4%, AND it is daily rest calculation, then I think it is better to put extra funds into the loan account because every RM1000 you put in 'saves' you RM3.67 per month, vs earning FD of RM2.54 per month (assuming 3.05% rate, monthly FD). I use this method

However, you need to consider the RM25 charge, so if you're putting in more or think you will not touch the funds for a bit longer, then it's worth it to reduce the home loan using this method but yet still have liquid funds, e.g.

Scenario 1: RM50000 excess funds put in saves RM183 per month vs RM127 earned via FD. The difference is already more than RM25 which is what you have to pay should you need to take out any portion of the RM50k

Scenario 2: RM10000 excess funds put in for 3 months, difference per month is RM36.67-RM25.41 = RM11.26, over 3 months it's RM33.78, again it's more than the RM25 withdrawal fee.

the rm25 is just like a cost of dinner ...small amout to pay if emercency need money

true... so in terms of maximizing $$ then it's better to put into housing loan to reduce the interest charged.. RM25 is small pizza only

Oh, first time knowing this .

But I am no clue in property investment, maybe the most I will buy a house for my own staying but not for investment purpose. Anyway, thanks for sharing .

Seems like you guys can help people financial. I want to share my financial too if you guys can give opinion.

gross salary = Rm2200
net salary = rm1958

commitment

Dad's car loan (sharing with siblings) = RM100
give parents = RM100
Unifi = RM149
Phone bill (Celcom) = RM113 (contract end in July)
PTPTN = RM100 (around 2k left)
Personal loan = RM183 (4.5 years)
Astro = RM50
Parking fee = RM70
Part time degree = RM1500/semester (3 months)

Total = RM865


I drive to work and my office is only 8 mins from my house. Usually my car's petrol I put RM70 can last for 1.5 week. I can only managed to save RM500 per month. But at the end of the month I ended up to use my savings to cover expenses like food/ petrol/ cigarettes until pay day.

My personal loan is killing me actually. Regret for applying it. Sigh...

Basically, i have no savings, no car, no property, have ASB but not active.

Still good can save RM865 per month out of RM2.2k. So your next step is setup an emergency fund with a size of your 6-month spending of up to RM8k (assuming your monthly spending is RM1.3k), that could take you another 9 months to build that with savings of RM865/month.

Once you setup an emergency in 9-month, you may need to save another few more months up to RM3k for investment such as ASB, property, equities in order to growth your wealth further, or you could at least save to buy a car or property (for staying purpose) after having an emergency fund.

so i dump in my extra rm4 k into the housing loan monthly... one yr i will pay rm48k and 5 yrs already pay extra rm240K

pretty good as the money is safe there

i wanted to share out my financial situation too. hope can get few advices.

salary = 2000 after minus sosco and epf

car loan = rm510
house rent + parking = rm115+65
car petrol = rm80
utilities = rm80
parents = rm200

balance = rm950

only manage to save rm200 per month if nothing special case such as going back hometown.
maybe will go back hometown once a month. the toll charges will be rm32 + rm40 petrol for two ways.

maybe i should find a part time job for weekends.

y balance 950 become can only save 200? where the rest go?

I think he also needs to eat, buy clothes, maybe some movies now and then.... don't think RM750 is a lot to spend for 1 month these days....

you are right. maybe around rm600-rm700 for food. if makan maggi for any 7 days in that month, food expenses maybe only rm500-rm600.

Ok, I was hesitant to comment on the initial post, but anyway, from the listing you gave, I think we can clearly see that car is eating up a significant chunk of your income...

RM510 + RM65 + RM80 = RM655 which is 32% of your take home pay.

House Rent seems very low and reasonable, I'm guessing you're renting a room so nothing much to do there.

Hate to say this but the car is really a huge expense, but I guess you're on car loan and maybe hard to do anything about it without suffering significant loss (what car and how long more loan?), but if there is a way to review that expenditure, maybe worth thinking....

The other thing is maybe work out a budget and try to be disciplined in that to try and increase savings from RM200 to more.

e.g. let's say budget RM150 spending money per week, and if you can track down to detailed categories even better, e.g. how much spent on food, entertainment, clothing, etc... but this is easier said that done because I also struggle with keeping track of spending

"salary = 2000 after minus sosco and epf
car loan = rm510
house rent + parking = rm115+65
car petrol = rm80
utilities = rm80
parents = rm200
balance = rm950"

This post has been edited by poolcarpet: Feb 26 2013, 12:06 PM

don't sacrifice your health by consuming instant noodles everyday or so frequently.

you can have healthy and afforable food aka prepare own meal, no fast food, restaurant food.

btw, where is your hometown, since you go back alone, why dont you take bus or train? driving is very costly if you travel alone.

im sharing room with my ex-classmate. just graduated. potong saga. borrow 35k.7 years loan. i also keep tracking, but keep lost track. in the midweek, one or two days missing.

ipoh my hometown, travel from penang. wanted to take bus/train. but when go back, no car to use for visit friend/hang out.

is the interest rate about 3.2%? that works out to RM510 per month for 7 years...

can't do much for the car since you've already committed 7 yrs loan, unless willing to sell (suffer loss) and drive an older car without loan. keep the car as long as you can, maintain it well and don't tie yourself down with another car loan in the future. then you'll have more flexibility in saving/investing.

for budgeting, it may be easier to set weekly budgets first, e.g. as i've said RM150 per week. once you've finished that, no more... so you'll be very careful with the spending early in the week, and towards weekend maybe even end up with cash surplus which you can save



This post has been edited by poolcarpet: Feb 26 2013, 01:15 PM

Have you consider using penang rapid to go to work? Convenient and cheap wor...

If you can increase to RM 400 savings a month would be very commendable already and start to invest (4,800 a year). Later with yearly increment, you will have more income for property investment etc.

y penang u need parking so expensive? Im from penang also

should have bought a motor instead. rice already become porridge.

live in apartment. kira cheap already. my friend one rm100. @_@