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 Personal financial management, V2

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sidanos
post Nov 20 2012, 11:39 AM

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Joined: Jul 2008
From: Selangor
Hi Master Sifus,

I would like to seek your advice on my future plan.
I have extra 500 savings every month.
I would be finishing my car loan early next year where it would give me extra of RM580. ( total monthly savings = RM 1080)

I currently have a ASB loan of 100k which is paid with the dividen earned ( about RM7200 annually ).
Should I increase my ASB loan to max 200k( another 600/mth) or purchase an apartment for investment?

I have no experience in property investment but since I would have extra funds for investment, I have already shortlisted a few
apartments that will cost me around RM 800 to service the loan.

Other than this, I also have a takaful savings plan, >10k in mutual funds.


Thanks in advance icon_rolleyes.gif
sidanos
post Mar 13 2013, 10:08 AM

Getting Started
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Junior Member
200 posts

Joined: Jul 2008
From: Selangor
Hi guys,

Want to ask a question.
I will get my bonus hopefully by nxt month, expected arnd 5k.
I have debt of cc = 8k
Personal loan = 12k @ 4% p.a.

Which one should I use the bonus money to pay 1st, cc or PL?
Also, I have some investment in ASB, is it better to withdraw the ASB and clear some of my loan?

Thanks in advance.
sidanos
post Mar 13 2013, 10:33 AM

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Junior Member
200 posts

Joined: Jul 2008
From: Selangor
QUOTE(poolcarpet @ Mar 13 2013, 10:24 AM)
I think there are two school of thoughts on debt repayment.....

1. Pay off the one with highest interest rate
2. Pay off the smaller amount

#1 is very calculative, and aim to reduce the cost of loan
#2 is more human emotions side, as you clear the loan you feel more positive and be encouraged even more to clear the rest

Personal loan 4% pa, should be around 7.xx % effective
CC interest should be around 18% pa?

If so, then you should pay off the CC as soon as possible, and control future spending with the CC. Never carry any CC balances because that is the most expensive form of 'loan'. Once that is settled, tackle the PL.

For ASB, no idea not familiar with that - if you are getting returns higher than the PL/CC (which I doubt so) then NOT a good idea to withdraw to pay off the loan. It's as simple as working out which will give you more 'returns'. If you do withdraw from ASB, then you must be disciplined NOT to take on another PL/CC balance, otherwise it's an endless cycle sad.gif
*
Thanks for the reply.
I'm cutting down the usage of my CC's. Already cancelled 2 of them.
Another 2 more to go. Really need discipline not to use my CC to buy stuff.
Now I just keep them in my drawer, only have 1 with me in case of emergency and filling up petrol.
The PL was a mistake, should have not taken it. sweat.gif
Now learning to take better care of my finances, and gained alot of knowledge from this thread.
Keep it up guys, you are helping alot of people. thumbup.gif
sidanos
post Mar 13 2013, 10:54 AM

Getting Started
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Junior Member
200 posts

Joined: Jul 2008
From: Selangor
Agreed. Last time when I got my first cc, limit was at 5k. Mentality that time was that I have extra 5k in hand.
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