i would recommend you to look into ASNB as a beginner to investing. you can easily invest the amount that you save every month into ASNB, but of course there is also risk however is very minimal compared to other investment options out there

Passive income refers to dividends or interests or profits earn from passive investments such as stocks, unit trusts, EPF or fixed deposits.

It is quite impossible, in the short term, to get an adequate and sizeable amount of dividend from these passive investments since it takes many, many years of savings to build up a big enough principal or capital to generate the dividend.

Say if you need 1k of passive income every month, and the dividend is about 10%, the capital will have to be 120k to get the income of 12k in a year.

And this dividend of 10% is an assumption. Statistically, the best possible return from equities and unit trust funds is about 8%... and this is the best. To be on the cautious side, it is wiser to use 6% and the capital is set at 200k to generate the passive income of 12k per annum.

To get higher returns with limited capital, it will be either riskier investments with active trading (trading forex, bitcoin or in stocks) or small businesses with active participation (pasar malam stall, burger stand, etc).

Or get a better job with higher pay… which requires no capital, and needless to say, don’t have to build up any capital from any savings.

=============

To Curious,

To help your sister, it would be easier to give her a few hundred or half of the monthly leftover of RM500. Keep the other half as savings for a rainy day or any short term needs that you wish to have.

Get a better job that commensurate with your qualifications… as it is currently, you are at welfare level and qualify for BR1M.


==========

To Leon,

Well, you need to rethink your expenses and lifestyle. Earning more do not means we need to spend more. My first job’s pay was lower than Curious, and when I reached your level of income, I managed to keep the expenditure in check and was saving not less than 50% every month.

The first thing you should do is pay the credit card in full every month.

Then take one step at a time on other things…

Paying rm900 rent is not comparable to a housing loan of an equivalent amount as you would then be a house owner with other yearly expenses and maintenance cost.

Make a monthly budget and see how much you can save in the next 2-3 years… review and adjust every several months or so.

Make the savings… make it happen… else the plan is just a pipe dream.

I alwiz simple mindedly tot that passive income is a short term thing.
U mentioned about short,mid and long term goals - is there somewhere I can read more about it..maybe get some guidelines
ah then can u point me in d direction of investing the RM500 to get returns in maybe a few years time?

How old are you?

If you are age between 20-30, i will suggest you start invest in PRS, Private Retirement Scheme. Under PRS Youth incentive, if you are aged 20-30 you are entitled 1k incentive from government (one-off).

https://www.ppa.my/prs-youth/prs-youth-incentive/

One platform you can explore is Fundsupermart? , join LYN Fundsupermart thread for more information.

In the mean time, you can do the following simultaneously :

-build an emergency fund of 3-6 month of your monthly salary park at somewhere liquid, ie FD or Money Market Fund.
-Calculate your total networth & track your monthly expenses by using excel.
-Do your homework on various investment vehicle be it stock, UT, properties, gold etc

Good luck and all the best

ah i missed d age limit .am 32 years of age.
wads money market fund?

How do i go about that?

Just google "networth template" i believe you can find lots of excel template available.

https://www.google.com/search?q=networth+te...chrome&ie=UTF-8

Regarding Money market fund,

https://www.fundsupermart.com.my/main/fundi...t-Fund-MYOSKMMF

Rule of thumb, invest in what you understand.

Passive income can be short term of several years too.

But as said the percentage of interest or return is low… and together with your low capital, the return in ringgit may not be significant enough to make any difference to you.

Say, you put rm500 into FD (of 4%) every month from this month until Dec, the total savings is rm5,000. The total interest earn would be around rm92.

The total interest earn of rm92 may not be significant enough to make any difference to the total savings… after taking the trouble to putting rm500 every month into the FD.

You could also add another rm10 to the monthly savings, and the total savings at the end of the year would be the same; and you would also have saved the trouble of going to the bank, or if eFD, using the internet to go online.

Similarly, if you go into a unit trust fund for a higher return, is the higher return worth the trouble?

It has risk with no guarantee on the return; while with FD, the return is guarantee as stated on the FD certificate.

You could add another rm20 to the rm500 (by easily cutting down on some food or drinks), and the total amount at the end of year would be more or less the same as if you have invested into the UT fund every month.

And more important, you have arrived at the same amount without facing any risk at all, and the trouble of doing any reading/research on which fund to buy and how to purchase it!

On the other hand, if the financial goal is long term (of several decades), then putting the monthly savings into a financial vehicle that gives returns – no matter how low the returns are – can make a significant difference to the final total amount. Because ‘compounding interest’ takes a long time to work its magic.

==========

So, back to your situation and question “… point me in d direction of investing the RM500 to get returns in maybe a few years time?”

Put it into fixed deposit. No risk, no worries, no fees.

==========

- PRS scheme: there is upfront service charges, and exit penalty if withdraw too early. Not for short term.

- EPF: no upfront fee or charges, but can only withdraw at age 55/60. Good for long term.

- UT funds: Upfront service charges, no guarantees – in a few years time, the total amount can be more and can also be less than what you can get from FD.

If you want to know more about unit trust funds, see the Fundsupermart and Public Mutual threads.

Guys. Seeking your advice. Say I have a large sum of money which I will need to use only in a month’s time, where is the best place to put the money into temporarily that will gain the most interest?

i think FD? some banks do offer 1-3 months FD with good interest

Thanks. Mind sharing which bank offers the best rate for one month placement?

while waiting for responses...
you can check this tread for some added info or ask there........

Fixed Deposit Rates In Malaysia V. No.15, Strictly for FD Discussion Only
https://forum.lowyat.net/topic/4154481

Let's say I have 40k loan ptptn for 15 years, so reach month around 230..
And I am able to pay more then 230, but I calculated I could earn way more then 1% ..
So I'll pay using auto debit for the 10%?

How to count when is the limit, after how many months of payment, 20% will be more financially sound

This post has been edited by woonsc: Mar 26 2018, 11:21 PM

hey guys I need some advice how to plan my finance smarter(or more responsibly)...

brief overview.
after company help me pay epf socso and tax, monthly net in bank acc is slightly above 10k

expenditure
rent 1k (currently renting bachelor pad w friend, when stay at home, this money go to parents)
basic expenditure 1k (food, petrol, touch n go)
phone, internet, laptop etc paid by company
irresponsible expenditure 2k (impulse belanja meal, drinking nights 2-4 times a month) which I should reduce

I have no urge for oversea travels as work travel already take a huge toll on me, no debt (hand-me-down car from family, no house, no overdue cc bills) , no gf expenditure, no insurance commitment, no prs etc. <- very dumb, cuz I just did my tax fillings and quite sakit hati at all the tax relief I can't claim.

how do I responsibly plan my expenditures? I usually just dump my end of month leftover moneys to random (safer) stocks my friends recommend and let it seat there (to date maybe 6x monthly income seating in stock value), I view it more like liquid cash when I need it I can cash it out to use (most likely for down payment of first house or wedding fund), if stock market crashed, its my extra money leftover at end of month so it has never impacted my lifestyle.

however, I think I should have more fixed commitments instead of only investing with month end leftover
(for example, I should buy a house, what kind of house? buy to rent? what price should I go for, how big a loan should I take? max? buy multiple cheap unit or 1 big unit?, what monthly schemes should I spend on?)

created a dupe acc for privacy.

This post has been edited by megumiisbestgirl: Apr 29 2018, 10:17 AM

while waiting for responses, you may want to try this for added info....

Getting Started

It is never too late to start taking control of your money matters.
Get started by thinking about how you manage your money everyday and what goals you have for the future that will cost money, e.g. further education, a wedding, your retirement. Financial Tools can help you with basic money management, like setting a budget, working out how much you need for your goals and how to go about achieving them.
MoneySENSE guides can help you assess insurance products for your healthcare and also to protect your loved ones. We can help you understand debt and how to manage it. You will also find information to help you build up some basic investment know-how as well as guides on common financial products. Get started by clicking on Financial Tools now.
http://www.moneysense.gov.sg/Getting-Started.aspx

on this....
"... just dump my end of month leftover moneys to random (safer) stocks my friends recommend and let it seat there (to date maybe 6x monthly income seating in stock value), I view it more like liquid cash when I need it I can cash it out to use (most likely for down payment of first house or wedding fund), if stock market crashed, its my extra money leftover at end of month so it has never impacted my lifestyle. "

if the stock market crashed...your asset in the stock market will be reduced by maybe 30~40% and stayed there for many months......thus your presumed 6x monthly income will be left with maybe 3~4x income,,,,,
will it impact your lifestyle?....maybe, maybe not....depends on the type of work you do and how the company perceive the worthiness of your contribution .....for history has show that during market crashes.....some industies will be impacted the most...some may close and some will have not much impact at all.
it may impact your investment profile too....for during that time you may "chickened" out and pulled the money out of the stock market by wanting to wait for a better opportunity to reenter the markets later....
it may impact your lifestyle too...having commited to housing loan repayment at at level commited while the market was good....if lagi worst if the job earning was good and available only for/during the good times.

read and understand the moneysense site......i liked to read it over and over again when i am free......hope you liked it too.

This post has been edited by MUM: Apr 29 2018, 10:51 AM

Hi everyone.. need some advice please.

I am 35, single, gov staff..

Income:

Gross income salary rm6500
House rental rm600

Expenses :

- house rental - rm550
- food - rm800 (eat out alot)
- fuel n tng - rm600 (travel 80km daily)
- personal loan - 500
- housing loan - 600
- parents - 500
- misc - 1000

Saving :

Hmm.. not much just around rm10k..
I can save around 2000-3000 per month, but usually doesnt last long coz i love to travel abroad..

I just signed up for investment in ut via ddi, rm300 per month. But kinda regret it, so im planning to terminate it after a year.

I am worried now coz at my age, i dont have enough saving, i only have 1 asset (only a flat), been using same car since 10yrs ago. I really want to buy a decent house, a new car, generate passive income thru investment. And I plan to settle my PL asap. I want to maintain my monthly saving of rm2-3k, then how am i going to buy a house or car?

Please advise.

This post has been edited by ann41: Jul 14 2018, 03:21 PM

Not an expert, but IF you really wanted to save 2k.....
Pay this 2k to another a/c first thing after each pay check....

use the balance to pay....(2750)
- house rental - rm550
- fuel n tng - rm600 (travel 80km daily)
- personal loan - 500
- housing loan - 600
- parents - 500

then use whatever balance for
Food, misc.....(reduce, cut down, eliminates if necessary)

then use whatever still balance every month to dump into that saving of your......

what you think?....

How long have you bought the flat, if able to sell it and use the money to settle existing home loan and use the balance as part of down payment b for new home, can consider.....

Of course, less travelling abroad instead take vacation locally and save more will expedite the process

This post has been edited by ehwee: Jul 14 2018, 03:57 PM

Love travelling aboard.
That's your first mistake. Try restricting yourself from travelling abroad and see how much extra can you save.

Looks like you don't know what you are buying.
Investment is something which you need to be ready. If you not ready or regret or cannot sleep because of your investment, it means
1) amount you put in is too big
2) you are making losses
Sometimes the best investment is the simplest. Try going for simple and decent returns like amanah saham fixed price fund. Every year more or less get min 6% and your capital is kind of guaranteed. Don't go for the variable price fund.
With all investment, always know what you are investing into. Invest in books and knowledge.

If you don't have enough saving, what's stopping you from saving more rather than travelling abroad? If your car keepnbrraking down, then yes can think of changing. If not, just use the same car. A car is to keep you from point A to B. Nothing more. The moment you drive the car out of the shop, the price decreases.

Settle one a time first. Recommend you settle the PL first. I don't know what you took up for personal loan first. But I hope for your sake it's not for going on holiday, buying the latest tech.

Remember, you can't gave everything. You need to sacrifice something to get something.

I sacrifice overseas holidays and I choose to live frugally so that I can sleep better knowing that my bank account is fat enough to last me through difficult times. The choice is yours. One needs discipline if you want to have more money. Giving in to temptation will just slow you down.

Thats what i do.. i transfer 2k immediately to asb. If i still have balance towards the next paycheck, i keep the balance in tabung haji.

It just that i am worried i save less if i commit to another house or car loan. Of coz i need to make more money but currently not into business.

Bought it about 2yrs ago. Im planning to sell it coz i dont make money out of it. Have to wait for another year due to 3yr lock in period. If i settled both pl n hl, i can have extra rm1100.

I stop buying cheap flight ticket since last year, coz i have travelled to all my bucket list countries. Priceless experience but pricey. Phewww..