Full flexi reduces the interest that you pay, similar like a conventional mortgage loan where you make an advance payment to reduce the loan principal amount,

The only difference is that you are able to withdraw the amount anytime, without any fees involved.

I always thought that basic loan allows borrowers to make advance payments but it seems that I was wrong. Thank you for the help.

I don't foresee the need to withdraw the advance payment at the moment... TBH I prefer the type of loan that enables me to settle the loan within the shortest time possible.

Hi all,

I'd like to seek advise from you guys. To. See if I miss any major areas in planning for my finances.

I'm 32, married with a kid.

My monthly pay is 10.6k

My expenses are :

1. House 2.5k
2. Car 1: 1.3k wife use
3. Car 2 : 400 own use
4. Insurance 1k for the 3 of us
5. Household : 500
6. Utilities : 100 +20
7. TM: 147
8. Digi : 53
9. House 2: 800 ( will dispose by year end)
10. Epf 1166
11. Pcb : 1.3k
12. Kid daycare 350
13. Petrol : 350

Wife earning 2k per month but I am letting her use it for her own

By year end, I am expected to receive 100k from the sale of the house, and by March next year expected 30k bonus.

My question is that, what is the better use for the 100k?

1. Use the 100k to pay off all the car loan?
This will free up around 2.5k of monthly cash flow
1.3k +400+800 (disposal of House)

2. Keep the 100k, put in ASB, earn 6k per year

3. Sell off expensive car, get a cheaper one. But have to bear the loss of selling while under loan. Currently hrv, planning either city or myvi or persona

I'm not a very good investor, very bad at it.

Any advise?

Dump the 100k into the house loan if you do not have any use for the money. Car loan amount is fixed so there is no point in settling it early.

Or you can dump into asb as the interest earned in asb is higher than the mortgage interest.

Just keep the car. No point changing if the car does not give you any issue.

I would put 100k into ASB, at the moment, I think it is the better ROI.
And don't have to sell HRV, its a nice car and dont have to bear the loss when sell

I'll take that into account. Perhaps I'm too into looking at my cash flow to overlook what the 100k may yield

excluding your wife part of RM 2k......
with your current pay and expenses....
you only have RM 614 balance....
by end of the year you will have RM 614 + RM 800 (after dispose house) = RM 1400 balance....
try use that RM 30k bonus in March for emergency back up fund.
try NOT to get into another debt like car loan unless your current car incur frequent serious repairs cost and downtime.

since you can managed and had been managing to live with RM614 balance cashflow, and since it will go up by another RM 800.....
I think your cashflow problem would we ok

since your will have RM30k as emergency fund, put that RM100k in to ASB to help grow your asset at abt 6% pa
as (unknown to the year balance of car loan duration), most interest amount had already been charged and added into your repayment,....thus not much "untung" if you were to repay them in full now
in the meantime,....have you and your wife take up SSPN for your kid?....got tax relief for both you and yr wife

This post has been edited by MUM: Oct 4 2019, 05:47 PM

Let me give a highly alternative option : consider learning to invest your money overseas.

For example, into SG REITs and into HK Equities. ...

Post like that must give a bit more detail/pointer right =)

I'm wondering, for the 2.5k house loan, have you thought of refinancing?

Sure,... look at these threads :-

1) SG REITs.
2) SGX Counters.

Look at the reasons for this initiative, and if the reasons suit your investment objectives and risk appetite, read further from there. Branch to other related threads or ask questions inside the respective threads.

We have to help ourselves.

All,
Need your help/advice.

I'm single 24 with monthly pay of 3.7k + OT = 4.1k. These are rough estimation of my expenses

Expenses:
1. Rent + bills: 280
2. Car: 990 + another 7years
3. Foods & stuff: 300
4. Celcom: 68
5. Pcb : 130

Investment:
6. Epf: 396
7. Gold: 100
8. Stashaway: 500
9. P2P (planning): 200
10. ASB (planning to use saving): 14k
11. Fundsupermart (planning): 300

Just starting to invest this mid-year. Made a bad decision on buying car
Can help?

how much emergency fund do you have?

I think 14k?

if he is a bumi, then should he be better get a ASB loan?
if he is not a Bumi,...14k easy to get ?

14k easy to get? U mean like getting the open fixed priced fund?

Ya, if bumi then take loan. But his commitment damn high now becoz of the car. 1/4 of his salary went to car...

and yet he is planning to put another 1500 of his pay into investment

Wanna suggest him to sell car and get cheaper one
Based on his salary he should only afford a car no more than 45k.
This is Malaysia's standard due to high car prices or else it should be even lower.

Anyway, he already bought it. Can't do anything about it I guess. Unless he willing to sell haha.

As for his investment, I think go to asb still ok since he can withdraw it anytime he want and can still earn the super high interest.

This post has been edited by neverfap: Oct 7 2019, 07:56 PM

Hi everyone...just wondering am i heading the right direction for financial management


My salary are 5k after deductions.

Expenses

1.) House = 1.9k
2.) Family = 800
3) Food and Etc = 1000
4.) Petrol = 250
5.) Maxis = 104
6.) Healthcare = 220
7.) Online Courses = 185

Investment

1. Fixed Deposits = 63k

FYI...my savings atm is below 5k...as i keep on pumping money into FD.

Should i let go of the car? Been thinking about it.