Sep 16 2014, 07:21 PM
QUOTE(j.passing.by @ Sep 16 2014, 04:34 PM)
First thing you should know is there is no financial sifu or resident advisor here, just posters sharing their experiences and opinions – so don’t take all suggestions given as the gospel truth or expect any financial formula that will ensure success in whatever objectives you’re searching for.
Second thing you should be aware, is this poster (me) likes to use ‘you’ in his sentences. Don’t take them too personally; as most of the time the ‘you’ is NOT directed at you personally. But also the general readers/browsers/lurkers, as this is an open forum... no point addressing issues that are specific to you, as you are not paying me anything; and it’s more fun (and easier to bullshit) to just simply share whether opinions/ideas that crosses my mind.
Third, as you can see, I have too much time... so here goes...
Are you a smart consumer? If you think you are, then you already answered your own question on whether you’re on the right track on money matters.
For example, purchasing a medical card that cost RM150 monthly. How do we, as a smart consumer, know whether it was a value purchased or not? Do you spend the 150 after doing some shopping/research, or because it was recommended, or because a friend has the same thing?
In the case of car insurance, where you can get optional coverage on the windshield for, let’s say, RM60/year.
A smart consumer before getting this optional coverage would find out the cost of the windshield, let’s say about rm180. Then he/she will try to estimate whether it is worthwhile or not.
I wouldn’t off-hand say it will be worthwhile or not because everyone’s situation is different. He/she may be living near a quarry where there’s lot of lorries carrying small stones, or his/her house is in a plantation area with unpaved roads, plus lorries carrying palm fruits that frequently send flying a seed or two onto the cars following behind.
Or he/she may be living in a neighbourhood, where it is unheard of, of car owners replacing their windshields – even for drivers with many years of driving experience.
And even for that motorist living near a quarry, he/she may not think it worthwhile to have the optional coverage; as he/she maybe not that fussy – a small chip on the windshield, never mind, la... no need replacement; or he/she feels that the cost of the replacement is not a worrisome amount to be fret about... no big deal la, just pay out of the pocket as and when it is needed to do so.
On other matters, you seemed to be doing fine... emergency fund nearly touching 6 months of gross salary, just barely the minimum...
Savings per month 500-800... maybe you should try putting money aside into separate ‘envelopes’.
One envelope for travel, one envelope for gifts/festive season expenditure, one for long term (retirement), one for special purpose (like opening a small business – that dessert shop which you edited).
This way, you would know how much exactly you are really saving each month, after deducting those set aside for specific expenses.
As for investments, I biased towards unit trusts/mutual funds, read those threads for more info... I would suggest only invest those savings you aside for the long term ie. retirement.
Thanks for the advice. I think best i segregate the saving to few envelopes as u mentioned..I should cut down more on travelling..aikhz always get so tempted to travel as AA always got promotions. hahaha thanks ya at least i know i'm moving on right track without much debts in hand.Second thing you should be aware, is this poster (me) likes to use ‘you’ in his sentences. Don’t take them too personally; as most of the time the ‘you’ is NOT directed at you personally. But also the general readers/browsers/lurkers, as this is an open forum... no point addressing issues that are specific to you, as you are not paying me anything; and it’s more fun (and easier to bullshit) to just simply share whether opinions/ideas that crosses my mind.
Third, as you can see, I have too much time... so here goes...
Are you a smart consumer? If you think you are, then you already answered your own question on whether you’re on the right track on money matters.
For example, purchasing a medical card that cost RM150 monthly. How do we, as a smart consumer, know whether it was a value purchased or not? Do you spend the 150 after doing some shopping/research, or because it was recommended, or because a friend has the same thing?
In the case of car insurance, where you can get optional coverage on the windshield for, let’s say, RM60/year.
A smart consumer before getting this optional coverage would find out the cost of the windshield, let’s say about rm180. Then he/she will try to estimate whether it is worthwhile or not.
I wouldn’t off-hand say it will be worthwhile or not because everyone’s situation is different. He/she may be living near a quarry where there’s lot of lorries carrying small stones, or his/her house is in a plantation area with unpaved roads, plus lorries carrying palm fruits that frequently send flying a seed or two onto the cars following behind.
Or he/she may be living in a neighbourhood, where it is unheard of, of car owners replacing their windshields – even for drivers with many years of driving experience.
And even for that motorist living near a quarry, he/she may not think it worthwhile to have the optional coverage; as he/she maybe not that fussy – a small chip on the windshield, never mind, la... no need replacement; or he/she feels that the cost of the replacement is not a worrisome amount to be fret about... no big deal la, just pay out of the pocket as and when it is needed to do so.
On other matters, you seemed to be doing fine... emergency fund nearly touching 6 months of gross salary, just barely the minimum...
Savings per month 500-800... maybe you should try putting money aside into separate ‘envelopes’.
One envelope for travel, one envelope for gifts/festive season expenditure, one for long term (retirement), one for special purpose (like opening a small business – that dessert shop which you edited).
This way, you would know how much exactly you are really saving each month, after deducting those set aside for specific expenses.
As for investments, I biased towards unit trusts/mutual funds, read those threads for more info... I would suggest only invest those savings you aside for the long term ie. retirement.
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