Basically your cash flow strap with three main exp namely loan and insurance. I wonder how can you afford / get three loan @ 50% of your gross income?

I would suggest the following:-
1. Get another car that costs less than 1K per month - Saving of RM439 per month. Get a more economical car like a Myvi will cost you less than RM800 per month. Why add a bike if you have a car loan unless you plan to sell the car and get a bike.
2. Your son's insurance is pretty high. Is that an education plan or just a medical card?
3. Instead of a landline perhaps you can get a family plan attach to your current mobile plan. You can limit the credit to RM30 per month for the home phone.
4. I notice you have two house loans. Is any of the houses bringing in any income or is income from that property already included in the RM6775?

1. Not for time being as the car still new. As for the bike I am looking @ 2nd hand bike that cost RM1500 - RM2000 (within my budget) which i planning to buy cash so no additional loan here. Then I get to remove the toll, parking and lesser fuel.
2. Medical (RM183.30) + Education (RM485.80). The edu. Insurance I only need to pay 10 years. Have 8 more years to go.
3. The reason I still maintain the landline is because my company pay for the broadband and also home alarm system require landline. of cause @ time we use the landline to make local calls.
4. Both house did not bring income. My parents staying in the 2nd house. I have 2 years and 9 month to settle the 2nd house loan.

This post has been edited by spiderman@lyn: Mar 31 2011, 04:37 PM

Hmm...well IMO the car cost the most and is not an investment but a liability. Even if you seldom use the car, the value drops each year and you have to pay road tax and insurance. Maintenance for a high cost car is also higher. Having a bike may save you some money but replacing the car would save you more in the long run. You are paying RM1.4K++ every month but the value drops by about 15% every year (depending on the type of vehicle). A bike also comes with increase risk. Statistically it is more dangerous to ride a bike then a car in Malaysia. Now that you are a father, this should be a consideration. Assuming you are the primary income earner, your well being is very important for your family.

The medical for your son is really high. I pay RM650 per year for my daughter and although the coverage is not luxurious i.e. the RM400 per night room but the RM200 per night room which I think is reasonable. How much is the estimated return for your son's education plan? I am currently paying RM300 per month and the estimated return when she reaches 18 is about RM70-80K (depending on the returns). I have also purchased an apartment to be redeemed for her education which is currently valued at approximately RM140K with an initial investment of RM20K. The apartment is currently being rented out so it is paying for itself without any additional payment from me. I hope to be able to have at least RM200K for her tertiary education. The idea is that perhaps you should explore other investment vehicles for education savings because the insurance alone may not be sufficient.

Don't forget your own retirement as well. I am not sure how old you are but if you are in your 30s, you should start putting away the $$ for retirement.

Best Regards

This post has been edited by cynthusc: Apr 1 2011, 12:44 PM

at your situation, I dont advice you to get bike...bike are definitely higher risk of getting yourself killed in an event of accident (touch wood), its ok if you are still single and young, but you already have dependents.

instead, try not to get insurance instead for a year or 2( the risk is definitely lower than getting a bike and die) than you can resume getting insurance 2 years later. imagine how much money you can save everymonth without having to pay for insurance.

This post has been edited by ah_suknat: Apr 1 2011, 04:44 PM

You can giv a try on unit trust... or gold a/c. The return r far more better than FD and saving a/c

Appreciate for the feedback, concern and suggestion.

Here the medical insurance breakdown:
Powerlink = RM100,000
Total and permanent disability = RM100,000
HealthCoverPlus = RM150,000
SecureCoverPlus = RM2,200
MediCover = RM300.00

I will try to talk to my insurance agent to bring it down perhaps about the range you paying.

Education Plan
Estimated return when he reaches 18 is about RM110-RM131.

---

Added on April 2, 2011, 10:02 pmIs that possible to hold the policy for 2 years and continue?


This post has been edited by spiderman@lyn: Apr 2 2011, 10:02 PM

i'm 26 this year... Would require some advice on my financial management

INCOME:
Salary : RM 3890 (before tax,epf deduction)

LIABILITIES:
Food: RM600
Small room rental: RM 340
Utilities bills: RM 50
Phone: RM 50
Transportation: RM100
Insurance: RM 150
Parents: RM 500
Study Loan Repayment :RM 500
TOTAL : RM2290

I'm planning to get a car soon which I think it'll be a quite a burden for me.
I expect there'll be at least additional 1k liabilities.

What can i do for better cash flow?

looks good on the savings. if u ultimately need a car, get a cheap 2nd hand, kancil etc. that is if u don mind driving it. use the balance for investment

This post has been edited by kucingfight: Apr 3 2011, 04:36 PM

the portion for the food is quite high, don't mind asking is this for yourself which include breakfast, lunch and dinner? as for the car, if you just want to use to bring you from point A to B then i agree with kucingfight. once you get your emergency fund and investment stabilized then you think about better car besides bring you from point A to B.

get cheaper car like local cars, monthly payment will be somewhere around rm500

Household income after minus EPF is RM4200.

Apartment rental is RM650 and car installment is RM395.

Is it okie for me to spend RM650 for the rental and RM395 for car installment if based on the household income?

not quite so "ultimately" need a car.
my staying place and work place are within walking distance to LRT stations.
Car basically is just for social needs.

yup, actually 600 for food is just a estimation only. Normally i dont spend more than 20 for my meals each day.
Only occasionally i went to have some drinks and dinner at better restaurants with my friends.

That's my initial planning for the car as well. Monthly installment <=600 + fuel + parking , will be less than 1k , i think

dont forget insurance and road tax, toll, and regular car service

I wonder how others survive with lower income and yet still able own a car...

Personal loans, perhaps

they can..but with little or no savings at all

I bought my car few years back when my pay was RM1600. totally a mistake i admit. But i was quick to moved to higher paying jobs, perform well and get bigger raise. I also have side income. But luckily now the loan is over.

really is little or no savings lo. Plus I was studying part-time degree at that time.

help me about my financial ,
going to work in June. fresh grad with 2.5k. after minus epf left 2225

assume
Parents 300
Petrol and toll 264
Food 500
Rental 165
Phone bill 80
Etc 100
PTPTN RM50(can pay RM50 everymonth ah? better than not paying anything)
Insurance i duno how much..lets say about RM150 per month ?

Total 1609 ...

So 2225-1609lleft 616.

Is this even possible ? how can i save up to 1k per month ? OT ? usually ppl 1 week OT how many days?

This post has been edited by sheahann: Apr 7 2011, 11:56 PM

what type of transport u using? no installment payment?