Investment is using money making more money without money...you don’t have investment...

Different type investment/return has different type of risk. The higher you go the lucrative you have, in other way the more money you loss.
im 31 year gold... also hv 30year of loan.

Investment is to fight inflation what your money value for tomorrow purchase. You understand my meaning by comparing keeping money in saving account for 30 year.

If you want to buy a big house, then u needs money to pay for or your children education fee may not the same next 20year.

So you must save/invest in order to have thing you want tomorrow.

Hi WintersuN,
You are rich in knowledge only you didnt discover...
I start from FD,later UT, then Shares..now aim settle my 30year house loan asap to buy another bigger house.   my wet dream

Continue upgrade your FD and UT, once your reach certain of limit you thinking to invest somewhere your money for a greater return.

Save the money..you not know what you want to spend maybe you use the money for early retirement or children education.

You dont know when the next financial Tsunami come or WE out of jobs. then how to pay the debts for 30 years.

prepare the umbrella early not until the rain come.

Nice to know you.

I try to used expenses = salary - saving. Every month I struggle to control my expenses.
Ever month my $$$$ will go FD, UT or Stock.

Definitely I will go stock. I will check which the best to invest for long term.
Before I go stock, my saving just goes FD or UT. After 2 year of learning and monitoring I got guts to go stock. I must have time to read financial statement and business understanding.

Goreng stock sure higher return but must monitor every day, which are cyclical stock.
My preference is blue-chip stock and dividend like REITS and Telco.
The famous Warren Buffet Quote:
1st rules never lose money
2nd rules not forget the 1st rule.

I allocated my Saving
1 month in FD
10 month in UT bond
16 month in stock
My investment can paid 1/2 my hosing loan immediately. I don’t have car loan, fancy Hand phone , internet broadband overseas holiday, or laptop(my PC still tip top condition 9 year) and spending of unnecessarily.

My aim to settlen my house loan with 5 - 10 years. Wet Dream buy another condo.

Investment is like doing a job really. If you put in the effort to be really good in it...you can get rich.

Well, look at this way. If you are good in your job and took the effort to get recognised, you skills will be in demand and then you could demand higher and higher salary. And if good enough, start your own business and make millions from then on.

Investment to operate at the same way. You start small, learn the tricks and manage your risks well, and you will do well.

Point is, treat investment like your job. Excel in it and put in the effort, and you will do will either way.

I'm also striving to acheive that!  What i set for myself, and always told myself, to maximise ALL zones of 'attacks', minimise ALL zones of 'defenses' while i'm still young...And I'm still learning, meanwhile only able to achieve 3x increased in monthly 'gain' compared to previous salary..
But still, it's not easy to achieve, it takes very high risk for you to do that, and also it's at expense on u urself, ur loved ones, ur family!

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. 

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. 

1. 2.8% is not low. It is what the bankers want you to think. After you convert this 2.8% to APR, it's probably around 5.2% pa (in contrast homeloans are about 4.xx% APR at the moment).
2. If you need to lower the installment per month before you feel comfortable it's probably the wrong choice.
3. ZERO installments mean EVEN more money for investments. And you need to get returns MORE THAN 5.2% in order to 'benefit' from the 'low' 2.8%

If you do not understand why 2.8% flat rate (car loan rate) is actually higher, read page 13-8 and 13-12 of this PDF
http://www.ibbm.org.my/pdf/Chap13_amend%20...05%20060205.pdf

If too hard to understand (it was for me), just remember car loan is more expensive that what you think. It's never a good idea to take a 9 year loan for any car, it's financial madness.

What car and price btw?

The IBBM pdf explains it all, also do check out your own car hire purchase documents. In one of the documentation (normally the carbon copy one), you will see details of the loan, total amount, and most important of all the APR. That is the true cost of that loan... not the simple flat rate interest.

Very simple scenario you can imagine, if you have RM100,000 and you want to buy a car - they are offering flat rate interest of 2.5%. Sounds like a good deal, instead of paying cash for the car, take the loan and with the RM100k, put in FD earning 3.05% interest. In the end you make money still cause car loan only 2.5% but FD 3.05%, right?

Wrong. If you calculate properly (remember you need to withdraw the loan installment amount from the 100k FD every month to repay the car loan) you will see that you actually lose money so how can that be? It's because the interest rate quoted is not the same (like talking mm vs cm) and the 2.5% is actually about 4.5% APR which is more than the FD 3.05%. (Again, IBBM pdf has all the explanation and details, but for simple quick calculation, flat rate x 1.85 would give you the rough APR.)

Go check out your own car hire purchase documents and you will see. Here's an example... flat rate 4.4% but in actual fact it's actually APR 8.19%

Not sure if i understand it correctly. Example they offer flat rate interest of 2.5% means they will charge me 2.5% every year of my RM100,000 loan?

Then APR is calculate in total after loan is settle, how much i pay in interest compare to my loan amount?

Is my understand correct?

I don't understand what you said lah.

To be more precise, Effective Rate > Flat Rate is due to time value of money.

I have posted a simple illustration below in my previous thread to explain the difference between flat rate and effective rate .

Never trust the bank's marketing pitch

sorry if it's confusing.... just a comparison,

let's say you take RM90k loan for 7 yrs:

1. Scenario 1 - buying a RM100k car, 90% loan at 2.5% flat rate - key in the values into the calculator here:
http://www.autoworld.com.my/v2/tools/loan_payment.asp

and you'll get RM1258.93 per month installment
2. Scenario 2 - buying a RM100k property, 90% loan but at 4.68% APR - key in the values into the calculator here:
http://www.simedarbyproperty.com/home_loan_calculator.aspx

and you'll also get RM1258.56 per month installment.

Notice how in both scenarios we are taking RM90k loan, over 7 years, and monthly installment is almost similar?

If you follow the formula in page 13-12 of the IBBM pdf, you'll work out that 2.5% flat rate is equivalent to 4.68% APR.

That 4.68% is the true cost of the car loan at 2.5% flat rate, that's what I'm trying to say.

Time value of money make it like that. That's mean RM1 today is worth more than RM1 tomorrow.

Sorry man, I'm not a banker no idea Maybe it's easier for most people to understand if it's shown as flat rate. Also looks better from bank's point of view, as most people will think 2.5% is 'lower' than 4% APR for example...

If you use APR method, it's actually interest charged on reducing balance, e.g. 100k loan at 2.5% for 7 years, in the 7th year your loan amount would be must less than 100k, probably RM15k (just simply tembak a value) - yet you are still 'charged' 2.5% of 100k for that final year.

It's just different way of looking at interest, in the end you still pay same amount of interest as you can see/calculate from the car/house loan example above. (calculate payment per month x total months, both same).

And just did some googling and found HLB offering car loan based on BLR!

http://savemoney.my/mach-by-hong-leong-ban...ntrol-car-loan/

"VARIABLE RATE at 6.6% p.a. is approximately 3.5%-3.7% p.a. after converting to FLAT RATE."

Rental very expensive: try to find wangsa maju rental to rm400-rm200.
food:  breafast rm3( roti rm0.60x2, nasi lemak/bihun ta pau rm3). I been thru eating roti rm0.60 for 8year.
------>lunch rm6-8.
------>dinnerrm6-8.

I join Tzu Chi and Soka Gakai , or my CompanySocialResposibility i get free food for the voluntariy task i do. Save money and occupy my time for every weekend. no kidding  . Example Merdeka 2007 performance, training every weekend for 2 month - i save money weekend meal.

I dont hv car until now- take train& bus to work.  Stay at Gombak near to Putra Tmn Melati walking distance 5min.

Insurance: try to take life insurance onli much cheaper compare investment link insurance. Ask your agen can reduce coverage.

Utilities: rm100 very expesinve for single ppl. when i was single my Utlities(water & elect) is arnd rm 25 per month.No broadbrand, Prepaid line rm30 per month. Hp is  Nokia3100 i bought 2004 until 2008 stolen. No laptop also.

The time my salary is only rm2300.
I able to send back home rm600 per month. And save rm 100-300 for my oversea trip like Cambodia, Vietnam, Indonesia, Si Padan, clim mt KK, all island. Spend my backpack trip less than rm1.2k.

My 1st bonus i invest in UT, never take out for spending.

Find extra job like UT during weekend- out with my frienz. Earn $$$  when yam cha.

Cut botak hair, can save the cost cutting hair. Go to Q-Cut only rm16. Last time only rm10.

I dont drink Paparich, OldTown or etc juz bring own big water bottle where ever i go.

Hi, I have 16k saving (currently parked in funds) and it's my 3rd year working after graduation.

I'm still thinking of getting a car. Kindly advise.

I currently have
2.7k (salary) - 800 (personal) - 800 (family) = 1100 saving per month

*sub-urb.
*personality: conservative, auto-car.

I use credit card v rebate at this moment . Maybank American Express v RM 50 rebate for every RM 1000 (capped) spend. It's mean 5%. Since I'm going to use to buy groceries, petrol , outside food, I assume is 5% rebate.
But I have to be very discipline to clear all in a month without any outstanding. Each time I swipe the card, I put the cash in a coin box together v the receipt. At the end month, the total money in the coin box is slightly more compare to the actual amount I have to pay (due to rebate). The extra I put in another box. This is how I save by spending.

Please bear in mind not all merchant accept American Express... Hehe:)

in future parents need to fark out money to buy properties for children.
My potential cousin's husband got new house from his dad worth RM700k liao.