Im 34 this year

i'm thinking,

RM100k of savings into FD that follows promo (4.4% best rate now)

RM10k of savings into FD tat dont follow promo (eFD can withdraw anytime)

Rest goes to EPF

So the 10k that dont follow promo is first emergency

2nd emergency is the RM100k

My retirement plan.

My main purpose is to park here 😅

Straight forward saving plan.. 0% investment allocated.
Super low risk I will categorized as.

i'm thinking,

RM100k of savings into FD that follows promo (4.4% best rate now)

RM10k of savings into FD tat dont follow promo

Rest goes to EPF

My main purpose so far is to park in this thread 😳

Consider OCBC 365 savings account which can hit 4.1% if you fulfil 3 criteria (not hard to hit assuming you have accounts in multiple banks and apply for a BigPay card). eFD is useless compared to this product, for most consumers.

Dear all,

Good day to all, grateful to come across this thread, and I am committed to learn from all of you with regards to personal finance management.

The first topic/question that comes to my mind as followings:
Understanding that it is highly advisable to pay more in the monthly housing loan repayment, in order to shorten the loan tenure and reduce the interests over time, for example if the monthly installment is RM2,000, it helps a great deal by paying RM2,500 or higher (given that the loan is a flexi-loan).

However, on the other hand, should we be paying RM500 more to reduce the loan amounts, or invest the RM500 somewhere else?

I understand that the rule of thumb is to calculate the potential gains/cost-savings by weighing the options, and go for the option that provide the higher yield, the question here is more towards what are the other options that we will have other than paying more to reduce the loan on a monthly basis.

Thank you in advance for the advice, grateful for that.

Yes! If you can earn more than your interest rate, don't pay extra to your loan.

Thank you friend for your kind comment and response.

I will have to do a calculation on the savings for paying extra to the loan, and the potential yields for any investment intend to make.
Do you have any other suggestions?

First I will also have to learn how the amount of extra payment to loan will reduce the interested at what amount.

Buying high dividend stocks such as Maybank which provide 6-7% annually. Reits also able to give out better yield compare to your housing interest. Not forget to mentioned, there are certain risks compare to reduce your loan for lower interests. Just my cent.

agree with your statement. outside there is quite a number of good dividend/stocks that can give a return better than FD. but many only see the "zero" risk side and forgo the opportunity cost.

hi there, why don't you use the RM10k to buy ASB funds like ASM Wawasan?

I'm following that thread now. It's ridiculous

Cause it is very limited units available.....

Yes it is getting harder to get now. To get 10k worth of units might take days.

Guys, I have just started working not for long, and I am particularly concerned with my CCRIS for future plannings. I heard that credit card statements do affect my debt service ratio and I am afraid it would bring a negative impact to my future loan applications

Say my monthly income 3k, but my credit card oustanding monthly is about 2-4k, and according to DSR calculation, my DSR is ~67% to >100% is that right? I am able to service it on time every monthly

As long as you do not have any late payments on your credit card with all 0s, I think you should be fine. Most importantly you need to pay up your outstanding every month.

Lower down ur expenses/change your lifestyle. Ur expenses is way more than what u earn.

May I know what is the 2 to 4k outstanding every month? Issit an installment on item u bought?

Never spend future money! What I mean is to spend according to ur mean. Have 3k in bank? Spend 3k max. The lesser the better.

U said u just start working right? So now ur main priority is to build your emergency fund. 6 month of expenses is the best. How to get the expenses amount u ask?

By budgeting, keep track of ur expenses! From there multiply it by 6 (given if there's no ammendment needed for ur expenses). If your expenses is too high then find places where u can cut the expenses like bubble tea, hotpot, branded clothing/shoes, big cars, fancy restaurant etc.

When keeping track of ur expenses, track everything if u can. Even the teh o ais u bought from mamak stall.

Now u just started ur work life and already into cc debt which is quite bad. But luckily u r still young, got time to amend it and the amount is not too big yet.

This post has been edited by neverfap: Sep 30 2019, 11:48 AM

Forget about CCRIS, just ensure you pay all bills on time. As for DSR, DSR during loan application that matters. Having some carryover / unpaid CC is ok but the best is to get it clear asap or convert it to monthly repayment. Good payment record is the best.

Need some advices here.

I'm planning on buying a house next year. The property that caught my fancy is about RM900k, so the monthly instalment should be around RM4.5k. I used mbb's mortgage loan calculator and found that if I pay RM10k per month, I will be able to settle the loan in 9.5 years. Is it worth doing so?

Some of you might recommend me to invest the money somewhere else, but I am not sure whether I should do so as my current take-home pay is still sufficient to support my expenses after paying RM10k monthly. I'm pretty sure that the figure will be consistent for the next 5 years, but can't guarantee anything after that. That's why I would like to settle the housing loan as soon as possible.

yes, normally people would advise you to extend the loan duration and use the extra money to do other investment as the h/l interest rate is considerably low.
but is it worth to settle the loan in 9.5 yrs in your point of view?
YES, only you know your self better and just do what ever pleased you more and make have a better peace of mind....

btw, you can consider full flexi package....whereby the duration is example 25 yrs, but if you have extra money you can dump more into it to settle it faster, but you can also have the option to take out the extra money for other uses when the time comes too.

I can't imagine working for 35 years continuously just to pay a mortgage loan. I prefer to settle the loan ASAP so that I can stop worrying about what to do if my business closes down one day in the future.

Says I pay 10k per month while the monthly instalment is just 4.5k. If I go for conventional mortgage loan, can settle in 9.5 years. Can full-flexi loan reduce the period to that 9.5 years also?

full flexi got more flexibility than conventional.....

https://www.iproperty.com.my/guides/compari...exi-home-loans/
https://www.imoney.my/articles/understanding-home-loan
https://www.propertyguru.com.my/property-gu...difference-3529


This post has been edited by MUM: Oct 2 2019, 02:11 AM