About the house, it is not under DIBS. Its under bank package where the interest during construction will be capitalized during construction period.

On the return on property, yup, it is negative now. It is a landed actually and the yield for landed not as good as condo. Now the value is plus minus RM100K above the purchase price. The value still does mean anything CF wise coz it is just a paper gain.

About the food, I'm have under weight issue. My weight is just 48KG. So, need to consume food at above average level. Will figure out how to replace current consumption with cheaper replacement.

About the car, still have to keep coz I still need to use it occasionally for work purpose. Not feasible to use only one car in future coz different working hours most probably. I work in the Bank and she works in hospital.

About CC installment, will get penalty for early settlement if not mistaken. Will continue to pay it monthly coz as long I pay on time lump sum every month, it is interest free.

So, I guest I need to focus to buck up my savings first.

And the next question is....

Should I:

1) Stop investing first and solely focus on bulking up my savings until it reaches certain limit; or
2) Do investment and savings on 30/70 basis with favor towards savings; or
3) Do investment and savings on 50/50 basis.

And I guess the best place to do saving is through ASB2. Right?

If you can access to ASB2, then just go all in once you have some backup funds for your living (minimum 3 months of your monthly expenses, ideally 12 months).

IMO you should save first. Save up to 12 months worth of expenses or salary before investment. Do it with ASB as it is pretty liquid.

Tips for food to bulk up. Eat frequently and cook. Did you know with just RM15 you can cook a whole chicken with rice and plenty of vegetables? Enough for 2 meals. Wet market and online recipes are your friend.

A good article to share , The Millionaire Next Door >

- Millionaires live frugally.
- They drive used cars.
- They buy their (used) car, instead of leasing one.
- They live in “less house” than they can afford, especially while they’re growing their wealth. Most of their neighbors are non-millionaires.
- More than half never received even $1 as an inheritance.
- Almost half never received any money for college tuition from their family.
- Nine out of 10 millionaires never received even $1 worth of ownership in a family business.
- Self-made millionaires have frugal spouses. The authors told one particularly compelling story about a husband who, -- after reviewing his net worth, announced to his wife that they were officially millionaires. The wife nods, then goes back to clipping coupons.
- Millionaires own their own business. Some have full-time jobs plus side businesses, while others are full-time business owners. “Self-employed people make up less than 20 percent of the workers in America but account for two-thirds of the millionaires,” the book says.
- They tend to own “boring,” unglamorous businesses – the type that wouldn’t create interesting cocktail party conversation. The book says: “We are welding contractors, auctioneers, rice farmers, owners of mobile-home parks, pest controllers, coin and stamp dealers, and paving contractors.”
- The one area in which they generously spend money is on their children’s education.
And, of course, my favorite observation:

The majority of self-made millionaires budget and track every penny. They know how much they spend on groceries, gas, and every other household line-item.

The authors say:

“Planning and controlling consumption are key factors underlying wealth accumulation … Operating a household without a budget is akin to operating a business without a plan, without goals, and without direction.”

INFO,
http://budgeting.about.com/od/Why_Budget/a...ake-Budgets.htm

i can't stress how great this book is guys.
really inspires me to save and keeps me aligned and motivated.
the audiobook is available on youtube: http://www.youtube.com/watch?v=SuDhNYUKqX0

ya lor >

WOOT, the video so LONG. 

Sharing Article ONLY >

Five Quickest ways to save money,
1) Cutting back

The first step to save money is to reduce your expenses. Before you begin, look at where your money is going and figure out where you can cut back. For example, if you spend RM800 a month to rent an apartment, you can cut down or even eliminate this expenditure by either moving back in with your parent’s or look for a roommate to share the rent.

There are limitless ways to save money. The key is not to starve yourself suddenly and completely (going cold turkey) but to reduce your spending gradually.


2) Increase your income

You’re out of cash. What do you do? In addition to reducing your expenses, you need to boost your income. After all, no matter how good a money saver you are, a bit more is always useful.

To increase your salary, think about doing a job that pays well. To look for the highest paying jobs in Malaysia.

However, if you are not planning to look for a new job, you can always start discussing with your boss on your performance and target with the aim of getting an increment.

Other ways to increase your income is to consider working part-time, such as writing freelance, starting a blog and teaching tuition classes. Choosing the right part-time job to do depends on your preference and expertise.

If you are into scrapbooking, you can even advertise your service on Facebook for free to get some extra income. The world is your oyster when it comes to making a few bucks.
3) Make money from trash

We’ve said it before and we’re gonna say it again, sometimes just cutting your spending is not enough. To take it a step further, you can consider making some money by selling unused items. There are forums, Facebook groups and websites that cater to swapping and selling pre-loved items.

Money is a strong motivation to finally start on that spring cleaning you’ve been putting off. If you find your closet bursting at the seams to accommodate all your clothes, go through them and sell whatever you don’t want to wear anymore (provided they are still in good condition).

Every extra ringgit brings you one step closer to your goal, so get creative!
4) Get rewarded every time you spend

Saving money doesn’t mean living the life of a monk. You can still indulge once in a while. There is no harm in dining out on special occasions, or pamper yourself with retail therapy. The key is to know how to get the most out of your money and finding the best deal.

One of the ways to shop at a discounted price is to shop online. Most items are cheaper online as the operational cost for an online shop is much lower than a physical shop. Furthermore, you can get into the habit of clipping virtual coupons.

Some of the well-known e-commerce websites offer voucher codes with discount. Instead of scouring the Internet for these vouchers, you can keep updated on the latest deals and vouchers through website like iPrice.my. All voucher codes are updated daily on the site to ensure that you don’t miss any opportunities to save some money.

Another way to get rewarded for spending is by using your credit card. Pay attention to the rewards and discounts offered by your card. You can easily earn cashback and reward points by shopping at the designated shops.
5) Magic of compounding interest

After cutting back and boosting your income, leaving all your money in a tin box under your bed is not going to do you any good. Make your effort in being frugal and smart with your money count by getting some help from compounding interest.

Some of the ways you can save money and earn interest on it are:

1) Fixed deposit account – A convenient and risk-free alternative to bonds, fixed deposits are the go-to investment for people who wants relatively low-risk investment vehicle or saving method with higher interest rates.

2) Unit trust fund – Investing in unit trust funds is relatively low-risk as a fund manager will be appointed to ensure the investor’s portfolio is diversified.

Sometimes a goal can spur these quick money saving moves, such as saving for a holiday or buying a home. However, there’s a pretty good chance that once you make these changes, you won’t ever go back to your old ways.

Just like people who want to lose weight learn to eat better and exercise more, with these money saving methods, you may just learn how to manage your money like a pro.

INFO,

http://www.imoney.my/articles/quickest-ways-to-save-money

Sharing Article ONLY >

Five Quickest ways to save money,
1) Cutting back

The first step to save money is to reduce your expenses. ...

Very often we hear people say putting money in FD is useless because of inflation that will eat you up alive

Yesterday I was talking to my elder brother, who has retired and has tonnes of money in FD. He is a very risk aversed guy, so the bulk of his money is in FD. I asked him the above question.

He told me FD is not actually that bad. Those who say FD cannot cover inflation is not entirely accurate. He said that income doesn't equal to expense. So if your FD principal is big enough, you can still beat inflation in absolute amount. I run a simple scenario on his theory :

FD - 3.5%, Inflation - 3.5%, Putting FD is worse off ?

He has FD for eg. RM1.2m as principal. Each year he makes RM42k = RM3.5k pm

His expense is for eg. RM2k pm = RM24k pa. So, he still has RM1.5k left over to roll into FD. While the price of goods increases every year, his income also increases. Repeat it over 20 years, he still has positive RM3.5k yearly or ~RM300 pm extra to cover his inflated expenses. And his FD principal has grown into RM1.46m

So, the trick is to have a FD principal that is large enough, and it still can cover inflation. Comparing % may be just the trick of financial planners who try to convince you to buy their products 

Sharing Article ONLY >

Five Quickest ways to save money,
1) Cutting back

The first step to save money is to reduce your expenses. Before you begin, look at where your money is going and figure out where you can cut back. For example, if you spend RM800 a month to rent an apartment, you can cut down or even eliminate this expenditure by either moving back in with your parent’s or look for a roommate to share the rent.

There are limitless ways to save money. The key is not to starve yourself suddenly and completely (going cold turkey) but to reduce your spending gradually.


2) Increase your income

You’re out of cash. What do you do? In addition to reducing your expenses, you need to boost your income. After all, no matter how good a money saver you are, a bit more is always useful.

To increase your salary, think about doing a job that pays well. To look for the highest paying jobs in Malaysia.

However, if you are not planning to look for a new job, you can always start discussing with your boss on your performance and target with the aim of getting an increment.

Other ways to increase your income is to consider working part-time, such as writing freelance, starting a blog and teaching tuition classes. Choosing the right part-time job to do depends on your preference and expertise.

If you are into scrapbooking, you can even advertise your service on Facebook for free to get some extra income. The world is your oyster when it comes to making a few bucks.
3) Make money from trash

We’ve said it before and we’re gonna say it again, sometimes just cutting your spending is not enough. To take it a step further, you can consider making some money by selling unused items. There are forums, Facebook groups and websites that cater to swapping and selling pre-loved items.

Money is a strong motivation to finally start on that spring cleaning you’ve been putting off. If you find your closet bursting at the seams to accommodate all your clothes, go through them and sell whatever you don’t want to wear anymore (provided they are still in good condition).

Every extra ringgit brings you one step closer to your goal, so get creative!
4) Get rewarded every time you spend

Saving money doesn’t mean living the life of a monk. You can still indulge once in a while. There is no harm in dining out on special occasions, or pamper yourself with retail therapy. The key is to know how to get the most out of your money and finding the best deal.

One of the ways to shop at a discounted price is to shop online. Most items are cheaper online as the operational cost for an online shop is much lower than a physical shop. Furthermore, you can get into the habit of clipping virtual coupons.

Some of the well-known e-commerce websites offer voucher codes with discount. Instead of scouring the Internet for these vouchers, you can keep updated on the latest deals and vouchers through website like iPrice.my. All voucher codes are updated daily on the site to ensure that you don’t miss any opportunities to save some money.

Another way to get rewarded for spending is by using your credit card. Pay attention to the rewards and discounts offered by your card. You can easily earn cashback and reward points by shopping at the designated shops.
5) Magic of compounding interest

After cutting back and boosting your income, leaving all your money in a tin box under your bed is not going to do you any good. Make your effort in being frugal and smart with your money count by getting some help from compounding interest.

Some of the ways you can save money and earn interest on it are:

1) Fixed deposit account – A convenient and risk-free alternative to bonds, fixed deposits are the go-to investment for people who wants relatively low-risk investment vehicle or saving method with higher interest rates.

2) Unit trust fund – Investing in unit trust funds is relatively low-risk as a fund manager will be appointed to ensure the investor’s portfolio is diversified.

Sometimes a goal can spur these quick money saving moves, such as saving for a holiday or buying a home. However, there’s a pretty good chance that once you make these changes, you won’t ever go back to your old ways.

Just like people who want to lose weight learn to eat better and exercise more, with these money saving methods, you may just learn how to manage your money like a pro.

INFO,

http://www.imoney.my/articles/quickest-ways-to-save-money

Very often we hear people say putting money in FD is useless because of inflation that will eat you up alive

Yesterday I was talking to my elder brother, who has retired and has tonnes of money in FD. He is a very risk aversed guy, so the bulk of his money is in FD. I asked him the above question.

He told me FD is not actually that bad. Those who say FD cannot cover inflation is not entirely accurate. He said that income doesn't equal to expense. So if your FD principal is big enough, you can still beat inflation in absolute amount. I run a simple scenario on his theory :

FD - 3.5%, Inflation - 3.5%, Putting FD is worse off ?

He has FD for eg. RM1.2m as principal. Each year he makes RM42k = RM3.5k pm

His expense is for eg. RM2k pm = RM24k pa. So, he still has RM1.5k left over to roll into FD. While the price of goods increases every year, his income also increases. Repeat it over 20 years, he still has positive RM3.5k yearly or ~RM300 pm extra to cover his inflated expenses. And his FD principal has grown into RM1.46m

So, the trick is to have a FD principal that is large enough, and it still can cover inflation. Comparing % may be just the trick of financial planners who try to convince you to buy their products 

Very often we hear people say putting money in FD is useless because of inflation that will eat you up alive

Yesterday I was talking to my elder brother, who has retired and has tonnes of money in FD. He is a very risk aversed guy, so the bulk of his money is in FD. I asked him the above question.

He told me FD is not actually that bad. Those who say FD cannot cover inflation is not entirely accurate. He said that income doesn't equal to expense. So if your FD principal is big enough, you can still beat inflation in absolute amount. I run a simple scenario on his theory :

FD - 3.5%, Inflation - 3.5%, Putting FD is worse off ?

He has FD for eg. RM1.2m as principal. Each year he makes RM42k = RM3.5k pm

His expense is for eg. RM2k pm = RM24k pa. So, he still has RM1.5k left over to roll into FD. While the price of goods increases every year, his income also increases. Repeat it over 20 years, he still has positive RM3.5k yearly or ~RM300 pm extra to cover his inflated expenses. And his FD principal has grown into RM1.46m

So, the trick is to have a FD principal that is large enough, and it still can cover inflation. Comparing % may be just the trick of financial planners who try to convince you to buy their products 

Agree in principle.
However, if the same $1.2M was asset allocated to equities & fixed income, say 50% 50%,
and a long term CAGR of say 7%pa (prudent enough?)
with the same spending pattern,
your bro would be able to reinvest even more, thus grow even more (long term lar - dont say crash next year )

Personally - for my retirement, i'm aiming to spend 50% of my investment & trading generated income, reinvest the other 50%.
Technically, i should be able to spend 3%pa to 4%pa of my total assets in investments & trading, reinvesting 3%pa to 4%pa - leaving something behind for future generations + rebuilding/healing of our planet

Just a thought 

Works fine in other countries... malaysia true inflation is more than 3.5% so effectively as long as his real return is -% he still rugi.

Yes truly get what you mean if the capital is big... even 0.5% of real return on RM 2 mil = RM10k

Well it is sufficient to support his life style but that doesn't mean he is beating the inflation. best china-man style is to see how much your average wan tan mee price has gone up.

Don't get me wrong, I am conservative as well when it comes to $.

Didn't know he is in that retirement stage, he should be able to use more then considering that the monthly usage is based on retaining the principal money. With a certain reduction of that principal amount (assuming he is not gonna leave any to his children) he can live a comfortable life.

Inflation worst hit product I suspect must be property. He already retired and has a house fully paid. He even has holiday homes in cameron highlands and UK. So he is not buying any more properties. I think a well planned retired people worry about housing last. So the biggest expense is taken care of

Second biggest spending is cars. The price is quite stable over the last 15 years. And I think car price may come down if FTA is really put into reality. So, this one is also quite taken care of. Furthermore, retired people may not change car as often. So the 2nd biggest expense is also taken care of.

Education for children is another big expenses. But his children has gone through that and has been working for quite sometime.

Then it would be other expenses like food, clothing, holidays, household which I think the prices increase close to the inflation rates. Or for holidays, it is actually cheaper as competition between the airlines is fierce.

So, I think for retired people, FD is still one of the safer bet. But for young people, FD is damn hard to beat inflation unless he has a very big sum in FD