Hi guys, I'm going to start my working life soon.
Any tips and tricks do I need to know for a healthy financial health from the start?

For example, I don't know if I invest more into EPF or use it to put into other investments.

General or specific advises are needed.

1. Always spend less than what you earn.
2. Save min 50% of your pay and then only start spending.
3. Do not let life style inflation get to your head
4. Do not let peer pressure get to you.
5. Maximise tax relief so you pay less tax
-every tax you don't pay is a RM you get to keep.
6. Use proper cash back credit cards. Don't get conned by bank ads.

Read this guy blog. He may be writing in terms of Singapore context but it's still applicable to us Malaysian. He have lots of articles for those starting out (you can see his must read articles on your right side)
ASSI
I read his blogs as I invest in SG.

Regarding putting money into EPF, ask yourself
1) can you earn 6% risk free money on your own?
- the only risk we have is devaluation of our RM and financial health of our Malaysian govt
2) Do you prefer govt to work for you or you work alone?

For me personally, I won't put more than RM6k/year (max amount for income tax). RM6k is including those compulsory deductions. Should the amount does not exceed RM6k, I will topup to make it RM6k

This post has been edited by Ramjade: Feb 16 2018, 11:13 PM

Thanks bro..
To maximise the tax exemption, PRS 3k, and Up to 6k EPF.
anymore tips ka, on income tax and savings..

you mention that you won't put more than 6k/year in epf. Can we opt not to contribute epf after the amount reach 6k in a year?

The RM6k is if your compulsory contribution does not reach RM6k. If compulsory contribution > RM6k, you cannot do anything also.

Any way to save on lunch meals?

Yes. Pack your own lunch. I always pack wholemeal sandwiches to work as it's more filling than rice.
- wholemeal massimo bread (yellow plastic)
- scramble eggs/tuna/sardine
- plenty of lettuce/cucumber
- coconut oil + extra virgin olive oil.
Check and see if your company provide free food, if yes, eat those instead.

I'm here earlier then you, but you have matured faster than me hahaha..

Do you prepare it everyday before?

The morning G before or else scared cannot tahan.

Know what you want. Set your goal to it. Research and do homework. Always.

This post has been edited by Ramjade: Feb 21 2018, 09:23 AM

What's G?
Yaya I haven't work so dint have much to move around laa

Ignore. Typo. Never let lifestyle/peer pressure inflation gets to you. Know what is the difference between needs and wants.
Learn how to get things for cheap as every dollar save (eg. Bundle clothing/preloved clothes are value for money. RM1, you can buy good condition (looks exactly like new/in store)
branded clothes which easily cost RMXXX) = a dollar available for investing.

This post has been edited by Ramjade: Feb 21 2018, 10:25 AM

hi guys,
I'm earning slightly less than 2.5k a month =( I'm already contributing 2k to my household expense,thankfully my sibling bears d bulk of our family expenses - tht leaves my sibling with a really heavy burden. I'd like to help out pay off some expenses.
Not wanting to risk job changes now, wad can I do with RM500 a month?

Net Income: RM6,400.00 (Excluding freelance income)

Expenses (Food, Car Park, Petrol, etc): RM1,850.00

Rental: RM900.00
Hire Purchase: RM600.00 (3 Yrs left)
Debt (In total clos to RM11k): RM440.00
Internet (Myself and Parent): RM400.00
Phone (Myself and Wife): RM400.00, next year onward will be RM120.00 after contract ended
Utilities: RM150.00
Entertainment (VOD/MOD): RM70.00

Monthly savings roughly RM1,500.00 - RM1,600.00 and I plan to get life/medical insurance for myself and my wife soon budgeting RM400.00 to RM500.00 monthly.

Currently don't have savings but plan to purchase house in year 2020 with maximum monthly repayment RM1800.00.

Hope to see some feedback how could I manage my finance better.

This post has been edited by Leon||: Mar 1 2018, 12:28 PM

Mayb you could provide more info before forummer give their valueble comments, such as :

What you have + what you owe
Do you have emergency fund
Are you adequately insured
What is your risk apetite etc

hrmm.....
- I owe RM500 monthly to PTPTN
- RM400 a month (eating out for lunch, breakfast and dinner i eat at home)
- RM200 on petrol ( spend about RM50 a week on petrol)
- RM300+ on my insurance premium monthly, its just the bare minimum though (due to my medical condition, i have loading)
- about 700 a month for an investment plan I purchased from Allianz.

- have a joint property with my sibling and parent (but its in quite a not so demanded area, so it's hard to sell/rent out)
- living in a self-owned terrace house.

I earn 2.5 k a month with no EPF benefits =( adn Ive been working 4-5 years =(. Its an industry I din get my degree in , so I still need to invest my time to learn industry-related stuff. That puts part-time jobs out of the picture I guess

My risk appetite is probably low to medium.

After all this deducted, I have about RM500 or so to spare.So I'm seeking advice from forummers on how I can use this monthly spared cash to grow my income.

Do you have more info regarding the Allianz Investment Plan? Is it a saving plan or something?

Just curious why RM500 monthly to PTPTN.
I knew someone borrowed ~RM80k (Engineering field) but only pay around RM400 monthly @ 20 years.
Yours must be pay extra and very sure not medical/law field since the pay is only RM2.5k

I never knew company can opt not to pay EPF. Anything to do about it?

And yes, please review your investment plan again.
It may be a little overpriced and I don't think they can give much returns since it contains much charges.
How about the monthly for joint property loan?

If low risk, try to get ASNB. RM500 monthly is a good amount actually.

I see that you have left out the RM700 investment plan, so you have savings of 50% out of your salary. Good...

Maybe review the investment plan, and group it together with the other RM500 as monthly savings for consideration.

Ideally, one should have some long term objectives as well as short term objectives. Then split the savings accordingly to the objectives.

Not every ringgit we earn need to be in "investments" to gain returns.


Having a personal debt means that you are living beyond your means/income; that whatever income you are having is just adequate for the monthly expenses, and you might have to resort to loans to tie you over if there is any extraordinary unforeseeable expenditure.

I’m saying this because what you wrote was contradictory: “monthly savings RM 1,500 – RM 1,600” and “currently don’t have savings…”

Maybe you meant to say that there is some balance from the monthly income every month… but by year end, these monthly balances are used up for some other expenses.

Health/medical insurance: you need to be clear whether you really need to have any insurance. There is no formula or average statistic on how much one must be insured, so don’t follow blindly or believe that “personal finances” must involve medical insurance just because you have read it somewhere or maybe it was popular opinion that one must set aside some budget for insurance.

Buying a house: this is a big ticket item, if not the biggest purchase in our lives; and we cannot be too hasty in making it happen. Make a monthly budget, and see how much you can save for a number of years first.

If the intended housing loan is about 1,800, I would target at least 2 times the amount to save every month for at least 3 years to be sure I can service the loan easily… that I am not living beyond my means every year.

One should have some savings just in case of retrenchment, so that the monthly loan payments can still be paid promptly.

-----------

If the nearly 11k debt is on credit card, don’t pay the minimal but the max that you can afford to. Paying more every month will reduce the interest charges.

If it is a personal loan with a fixed monthly repayment, carry on… not much one can save by changing the loan.

This post has been edited by j.passing.by: Mar 1 2018, 03:02 PM

its a savings plan..pay rm700 for 20 years,then the plan starts giving back money after 20 years...i bought it coz i no epf.

actually i graduated from a degree in biotech..coz of my medical condition,i got hired at an IT firm.
d monthly installment is estimate coz i havent checked with my statements..i oni know d sum is arnd there

Wad do you advise? I can't quit my job and don't intend to break down relations with my employers wor.I'm like stuck in a rut.

Hrmm yeah I shud have thot of that..I'll call d agent up..but wad charges do u mean?

its already been paid in full,but its not in a great location - so no rental yield or wadeva yield from there at all.


where to buy ASNB?its alwiz sold out rite?

Now that you mention..I dont feel so bad about my financial situation haha..

My short term goal is to get more returns so I can offload some hsehold burden from my sibling. My sibling used to earn alot from working in O&G and then retrenchment happened,and now works for a fraction of the pay previously. Due to not-so-good economic senses, she took out a loan for us to reno hse and now is stuck servicing a big fat loan. So I sorta feel I should help out too.

Thanks for the feedback. To elaborate further, I have just recently cleared some bad debt with ridiculously high interest hence there are no savings in the past.

Monthly savings of RM1,500 to RM1,600 will be starting by this month.

The debt was restructured by AKPK in the past and I have withdraw from DMP and managing by myself for debt balance of 11k since the interest remain the same except for 1 CC balance of 2k reflected to 18%.

I do plan to sign up with health/medical insurance since I am the who only one who feed the family and my wife is foreigner, perhaps by end of this year.

For housing, kinda tired to paying rental and that is why I decided to save some savings to purchase a house. This depend on my freelance income as well as the bonus from company accumulated in 3 yrs time.

Don't see I could reduce more on the monthly expenses and I believe I should look for more passive income.

This post has been edited by Leon||: Mar 1 2018, 03:44 PM