true... the guy took his time to share his experiences that it is possible to make savings; don't pour cold water as if it is not a possible thing to do... of course not everybody can do "drastic" savings; otherwise he needn't tell his story.

Save 2k per month + year-end bonus for 6 years = 150k.

He could safely buy a apt costing less than 150k, without any bank loans and without using all the reserves/savings. Apt usually takes 3 years to complete after signing up. Put 10% as down payment; then pay in cash for the progressive payments over the 3 years... Just an example of the virtual of having savings.

150k in FD x 3.5% interest = 5250 per year. The savings would grow easier over time once it got started and achieved sufficient volume.

This post has been edited by j.passing.by: Apr 7 2013, 07:06 PM

Good for you... the expenses could be different in marriage life versus the bachelor years, especially if the spouse is not working... if you extrapolate the monthly savings till year 26 to be a millionaire, you're not answering Gary's question on marriage... maybe you planning to be a lifelong bachelor or maybe thinking of marriage only after being truly wealthy but old... thus the extrapolation till year 26 can be a pipe dream.

Making big savings in early working life (before hitting 30s) is good suggestion though... but when one is young and just discover the joys of having a paying job vs. being a poor student... savings is never easy but still doable, especially after settling down into the career after the initial 3-4 years.. thus making big savings from age 26-32 years old feasible; and getting married only after age 32... men are lucky and don't have the old spinster badge attached...

Maybe for the girls, get married before 24 and only have babies after 28; once married, no need to spend too much on cosmetics, clothes, etc. Make savings, not babies. LOL.

Do you know that a wedding registration is almost free? You just need 2 friends as saksi...

The grandeur is the wedding dinner... subsidised by ang pows.

One of the worse wasteful spending is having a wall-size portrait photo of the couple... normally hang above the bed in the bedroom... so only the couple get to see it after the wedding day... could you imagine facing the same wedding photo day after day. Another wasteful spending is hiring a video photographer... see video only once, nobody wants to see it again... don't dream that the grandchildren would be interested!

RM5+ per head is comparably low to RM2000+ per table...
1,000 heads = rm5,000... other things can still cut; wedding cards can be printed on cheap paper unlike the embossed cards by Chinese friends.

Pls try to give ideas, not make assumptions of anonymous posters... did not know there were "research" on something that can be gained by personal experience, like some wasteful research done by survey company for a government on why margarine is gaining more popularity than butter, when any housewife knows that soft margarine is easier to spread on the bread... anyway, I mentioned "video photographer", not the traditional wedding photos.

Suze Orman would give you a "F".

You have no idea about personal financing - no clarity on your net income, no info on savings (if any), no background info - your age, family, etc, how long you have to settle the loans, does not know how much is your monthly expenses, and how much you have leftover each month. And yet here you are, seeking advices without giving the info...

Please sit down and think over your monthly expenses and whether your income can cover them. You may think you are earning enough... but it is never enough if you spend more than what you earn. I have a feeling that you are spending over your limits each month and charging your every indulgence to your credit card.

The advice is basic... settle the loans as soon as possible, settle those bearing the highest interest first, and those that do not have penalty fees when they are settled in advance ie. credit cards. Cut the plastic cards, if you can't control and limit the charges to them.

i'm not with any banks, so the below answer could be incorrect...

First, you need to understand how the interest is calculated.

Secondly, you need to check whether there is any penalty on early settlement on the 'balance conversion'. There is usually a 'product disclosure sheet' explaining all the terms and conditions of the 'balance conversion' and how the fees and charges are calculated.

As for credit card balance, my monthly statement has all the details on charges and fees listed on the reverse side of it; which I believed is standard for all banks in Malaysia.

The interest is calculated on daily rest basis; ie. number of days the amount is outstanding / number of days in a year X the interest rate.

Since each line of transaction is calculated separately, am not really sure how the payment will be apportioned to each debt. Most likely, a fix (monthly) amount will be deducted first for the 'balance conversion', and the balance of the payment goes to the credit card debt.

In view of the interest calculation on a daily rest basis, it would be better to pay more each month than putting the extra money aside for a full final payment.

You could make it simpler like holding onto the RM1k first and pay it together with your usual payment the following month (before the 5th.)

Cheers.

PS. I paid my credit card the full amount every month. On the reverse side of my statement, it is stated "The interest free period of 20 days is only for retail transactions and only granted if you have paid the previous month's outstanding amount in full". In other words, a credit card to me is 'free' credit/money to use first, not an auto personal loan...

Incidentally, someone from the bank called me last week, to offer me a special low rate on cash withdrawal... no paperwork, no document, no need signature... just say yes over the phone, and she will deposit 12k into my current account. It will be debited monthly into my card over 24 months... less than rm600/mth...