Welcome Guest ( Log In | Register )

117 Pages « < 2 3 4 5 6 > » Bottom

Outline · [ Standard ] · Linear+

 Personal Financial Management V3, It's all about managing your $$$

views
     
Kellermann
post Mar 16 2014, 08:33 AM

New Member
*
Junior Member
5 posts

Joined: Sep 2010


QUOTE(alex_cyw1985 @ Mar 14 2014, 06:08 PM)
What do you mean by ez payment?  the insurance charge to your credit card only, make sure you fully settle it every month, what is the debt you mean???
*
ez payment - I mean the insurance company charge credit card total amount (12months) but the company charge us per month.(It is like buying electrical appliances at SenQ / Tesco / etc). That doesn't count as debt? Many people here advise not to buy things such as hp using this mode of payment...it is considered as debt....or it doesn't apply for insurance???
Skidd Chung
post Mar 16 2014, 10:33 AM

Casual
***
Junior Member
456 posts

Joined: May 2010


QUOTE(Kellermann @ Mar 16 2014, 08:33 AM)
ez payment - I mean the insurance company charge credit card total amount (12months) but the company charge us per month.(It is like buying electrical appliances at SenQ / Tesco / etc). That doesn't count as debt? Many people here advise not to buy things such as hp using this mode of payment...it is considered as debt....or it doesn't apply for insurance???
*
It is considered a debt.

Actually there is no reason for you to do this unless you are trying to earn more points for your credit card.

You can still pay your insurance monthly.

Insurance do this to past the risk of debt to the banks instead. Since they won't earn anything extra if you paid late or don't pay at all. So by letting you charge an entire year of payments in advance, they more or less done their job for the entire year.

Banks stand to earn interest from you if you pay late.

In the end, unless the points were worth it, you are actually putting yourself at greater risk.

You can't cancel you insurance if you can't afford it 3 months down the road. Instead you owe the banks now. And the interests will compound the more you don't pay.
alien9
post Mar 25 2014, 12:28 AM

These stars mean nothing
*******
Senior Member
3,030 posts

Joined: Dec 2009
From: Jelatek / Wangsa Maju


Hi sifu and all members. I didn't managed to read anything yet but I will start soon as I'm in the midst of UAT for my company's app.

A short info about me:
» Click to show Spoiler - click again to hide... «


Situation:
1. Will be getting married thus we need to find a new home (either rent of purchase). My thought would be find one nearby our working place as it will cut a lot of travel time and fuel cost. Problem being is that my soon to be wife would not want some maid to be looking after our child (if we are lucky and we are hoping to get a child as normal as a parent would get). So, what we can do is find one nearby Taman Melati and send the child to her mother to look after thus travelling everyday from Taman Melati to TTDI.

2. Car. I don't have car and I want to buy one. Suggest either we need to find a 2nd hand car or purchase a new one that wouldn't put much burden on our financial capability. My current thought is to not buy a first hand car which usually cost somewhere around RM 600++ per month for a 9 years instalment, instead just buy a 2nd hand car and pay RM400++ for 5 years.

3. Investment and paying PTPTN. Since both of us are working in private sector, we need to have pension scheme, investment, savings etc. I have one in mind which is investing is DANA EKUITI PRIMA FUND under ETIKA. It's a Protection + Investment + Savings plan. And we do need to pay our PTPTN too.

I will start reading and hopefully will get some insight myself on my current situation but I really appreciate inputs from sifus. thumbup.gif

This post has been edited by alien9: Mar 25 2014, 12:28 AM
morning06
post Mar 25 2014, 04:18 AM

Enthusiast
*****
Senior Member
869 posts

Joined: Mar 2006
From: @wherealltherichlurks


QUOTE(alien9 @ Mar 25 2014, 12:28 AM)
Hi sifu and all members. I didn't managed to read anything yet but I will start soon as I'm in the midst of UAT for my company's app.

A short info about me:
» Click to show Spoiler - click again to hide... «


Situation:
1. Will be getting married thus we need to find a new home (either rent of purchase). My thought would be find one nearby our working place as it will cut a lot of travel time and fuel cost. Problem being is that my soon to be wife would not want some maid to be looking after our child (if we are lucky and we are hoping to get a child as normal as a parent would get). So, what we can do is find one nearby Taman Melati and send the child to her mother to look after thus travelling everyday from Taman Melati to TTDI.

2. Car. I don't have car and I want to buy one. Suggest either we need to find a 2nd hand car or purchase a new one that wouldn't put much burden on our financial capability. My current thought is to not buy a first hand car which usually cost somewhere around RM 600++ per month for a 9 years instalment, instead just buy a 2nd hand car and pay RM400++ for 5 years.

3. Investment and paying PTPTN. Since both of us are working in private sector, we need to have pension scheme, investment, savings etc. I have one in mind which is investing is DANA EKUITI PRIMA FUND under ETIKA. It's a Protection + Investment + Savings plan. And we do need to pay our PTPTN too.

I will start reading and hopefully will get some insight myself on my current situation but I really appreciate inputs from sifus.  thumbup.gif
*
Hello,
Not very experience, still learning. I would like to hear what others have to say too but here's my .2c:

Since you're travelling with bike, i guess PA is good to keep. But for Hospital Income, the insurance company will pay allowance when one is admitted right? If yes i probably won't bundle it with my PA. You can get a normal PA policy for as low as RM1xx p.a.

If your company provide you with medical card, you can opt not to buy at the moment BUT i would strongly advice you to get at least a basic term medical card; dont take up bundle of investment + protection + saving. Get pure protection for insurance, FD for short-term savings and since you're bumi, you can always opt for ASB for investment fund. If you're looking for EPF alternative for retirement, check out Private Retirement Scheme (PRS), you can get more info in the forum or fundsupermart.com

Consider life insurance only if you have dependent. And again only buy pure protection, try not to bundle up with savings and investment.

If you plan to buy a car, can you afford a housing loan? With your combined income, you'll probably eligible for somewhere between RM500k-600k housing loan; just a rough estimation; no experience here. And you need to put some effort if you're serious about 2nd hand car; common issues with 2nd car is the maintenance fee which will cost you in long run.

So basically here's a summary of my view:
- Get only pure insurance for protection; you can cut down on insurance expenses. Forget about fancy perks and bundle!
- Short term savings, FD; Minimum to no-effort Investment, ASB; Retirement Fund, EPF and PRS
- If car is not a necessary, den that is your answer ;otherwise
- In your case, since you're getting married i think getting a home first is a better choice

And this is my view notworthy.gif
Btw you have good savings! rclxms.gif

This post has been edited by morning06: Mar 25 2014, 04:28 AM
alien9
post Mar 25 2014, 09:19 AM

These stars mean nothing
*******
Senior Member
3,030 posts

Joined: Dec 2009
From: Jelatek / Wangsa Maju


QUOTE(morning06 @ Mar 25 2014, 04:18 AM)
Hello,
Not very experience, still learning. I would like to hear what others have to say too but here's my .2c:

Since you're travelling with bike, i guess PA is good to keep. But for Hospital Income, the insurance company will pay allowance when one is admitted right? If yes i probably won't bundle it with my PA. You can get a normal PA policy for as low as RM1xx p.a.

I dont know about "insurance company will pay allowance when one admitted". But what I do know is that my company is a startup company and they don't provide any medical benefits or some sort thus I need at least the Hospital Income Plan to cover me.

If your company provide you with medical card, you can opt not to buy at the moment BUT i would strongly advice you to get at least a basic term medical card; dont take up bundle of investment + protection + saving. Get pure protection for insurance, FD for short-term savings and since you're bumi, you can always opt for ASB for investment fund. If you're looking for EPF alternative for retirement, check out Private Retirement Scheme (PRS), you can get more info in the forum or fundsupermart.com

My insurance currently will pay RM 400 if I'm warded more than 6 hours a day but they won't pay my medical bill so I will look into the medical card thing. I do plan to take long term ASB financing for RM200K OR two ASB financing under my name and my fiancée for our retirement purposes but I once heard that it will affect my loan capability no?

Consider life insurance only if you have dependent. And again only buy pure protection, try not to bundle up with savings and investment.

If you plan to buy a car, can you afford a housing loan? With your combined income, you'll probably eligible for somewhere between RM500k-600k housing loan; just a rough estimation; no experience here. And you need to put some effort if you're serious about 2nd hand car; common issues with 2nd car is the maintenance fee which will cost you in long run.

Here's the problem. I need to have a car, rent a house and make housing loan. These 3 things are the biggest commitment that I think will be included in my financial. I would love to buy a house straight away but I dont want to commute long hours to our working place.

So basically here's a summary of my view:
- Get only pure insurance for protection; you can cut down on insurance expenses. Forget about fancy perks and bundle!
- Short term savings, FD; Minimum to no-effort Investment, ASB; Retirement Fund, EPF and PRS
- If car is not a necessary, den that is your answer ;otherwise
- In your case, since you're getting married i think getting a home first is a better choice

And this is my view  notworthy.gif
Btw you have good savings!  rclxms.gif

Thanks a lot for your insight. I really appreciate it.  notworthy.gif
*
morning06
post Mar 25 2014, 03:41 PM

Enthusiast
*****
Senior Member
869 posts

Joined: Mar 2006
From: @wherealltherichlurks


There you said it yourself, you will be paid RM400 if you're warded means the rider pay you when you're admitted smile.gif

So the hospital income, it depends on your need. If you want to cut down the premium expenses i would recommend switching to a basic medical card which will cover your medical fee and get a PA without the hospital income rider.

As of the ASB financing, i have 0 experience so can't comment.

Your current insurance
PA+Income Rider = RM768/year; cover accident and pay you income when you're admitted
TOTAL = RM768 ; RM64/month

Here is a estimated insurance charges (not agent so just an estimation)
Basic Standalone Medical Card: RM800/yr ,available from as low as RM400/year at your current age (premium increases on age category, nrmally every 5 years); cover your medical expenses
Basic PA = RM150/yr
TOTAL = RM950/yr ; RM80/mo
*If there is a need of Life Insurance, get a quote for term life from agent.

OR If you wanna follow the norm, you can always get investment linked bundle insurance (not recommended as of my self preferences)
Investment-linked bundle est. premium (common quote) = RM2400/yr ;and you get a bundle of medical, life, PA, investment/savings whistling.gif
TOTAl = RM2,400/yr ; RM200/month

Since you need a car den try to get one within your mean for now. Second hand car is good if you can get a good deal. Try don't spend so much for a car (liabilities), a local car is not that bad for starting brows.gif

So you are planning to buy a house at Tmn Melati, at the same time rent a house near your working place? If you can get a good house deal den should be no problem but your savings will take a big hit if any left.

Your current saving/month
RM1200
+ RM140 (RM7/day at 20 working days est.) Motor fuel since you're using car now
+ RM64 ;your old insurance
TOTAL = ~RM1404

Est. new expenses
Personal
(A) Basic Insurance OR (B) Investment Linked Bundle
TOTAL = (A)RM80/mo (B)RM200/mo
* you can always get a lower quote on (B) from agent, if you insist to bundle smile.gif

Personal/Share; halve the amount if share
Housing loan repayment for a RM300k property = RM1200/mo
Car installment = RM500/mo
Car fuel = RM250/mo ;lower since you renting near your workplace i assume
Rental = RM500/mo < can rent a house/unit within your working area at this price?
TOTAL = RM2600/mo ; halved at RM1300/mo

A basic calculation, might have missed out some of the detail or over est. some of the cost. Base on this est., you're going to be tight if you plan on getting a car, rent a house and buy a house at the same time now. Wait for the more experienced sifus to reply coz i have no experience tongue.gif

notworthy.gif

This post has been edited by morning06: Mar 25 2014, 03:50 PM
alien9
post Mar 26 2014, 12:43 PM

These stars mean nothing
*******
Senior Member
3,030 posts

Joined: Dec 2009
From: Jelatek / Wangsa Maju


QUOTE(morning06 @ Mar 25 2014, 03:41 PM)
There you said it yourself, you will be paid RM400 if you're warded means the rider pay you when you're admitted  smile.gif

So the hospital income, it depends on your need. If you want to cut down the premium expenses i would recommend switching to a basic medical card which will cover your medical fee and get a PA without the hospital income rider.

I guess I need to make a few adjustment to my Hospital Income Plan. This is my EHIP which I paid RM54 per month. PA Rider is just an add-on on top of my EHIP and I don't quite remember what it does (will check on it later). I'm taking the EHIP just to cover my family as I don't want them to be burden by my commitment later on if there's something happened to me that makes me unable to work.


As of the ASB financing, i have 0 experience so can't comment.

Your current insurance
PA+Income Rider = RM768/year; cover accident and pay you income when you're admitted
TOTAL = RM768 ; RM64/month

Here is a estimated insurance charges (not agent so just an estimation)
Basic Standalone Medical Card: RM800/yr ,available from as low as RM400/year at your current age (premium increases on age category, nrmally every 5 years); cover your medical expenses
Basic PA = RM150/yr
TOTAL = RM950/yr ; RM80/mo
*If there is a need of Life Insurance, get a quote for term life from agent.

OR If you wanna follow the norm, you can always get investment linked bundle insurance (not recommended as of my self preferences)
Investment-linked bundle est. premium (common quote) = RM2400/yr ;and you get a bundle of medical, life, PA, investment/savings  whistling.gif
TOTAl = RM2,400/yr ; RM200/month

Okay, I will look into it. Will check my PA and EHIP plan accordingly and see what I can come up with that. Obviously I need a medical card.

Since you need a car den try to get one within your mean for now. Second hand car is good if you can get a good deal. Try don't spend so much for a car (liabilities), a local car is not that bad for starting  brows.gif

So you are planning to buy a house at Tmn Melati, at the same time rent a house near your working place? If you can get a good house deal den should be no problem but your savings will take a big hit if any left.

My current plan is either:
1. Rent a house nearby our office thus will reduce commuting hour and expenses.
2. Buy a house near Taman Melati and commute from there. No rent, own house, nearby to my in-law if my soon to be wife will pregnant, still commuting by bike for RM 6 per day.

I guess no 2 would be wiser eh?


Your current saving/month
RM1200
+ RM140 (RM7/day at 20 working days est.) Motor fuel since you're using car now
+ RM64 ;your old insurance
TOTAL = ~RM1404

Est. new expenses
Personal
(A) Basic Insurance OR (B) Investment Linked Bundle
TOTAL = (A)RM80/mo (B)RM200/mo
* you can always get a lower quote on (B) from agent, if you insist to bundle  smile.gif

Personal/Share; halve the amount if share
Housing loan repayment for a RM300k property = RM1200/mo
Car installment = RM500/mo
Car fuel = RM250/mo ;lower since you renting near your workplace i assume
Rental = RM500/mo < can rent a house/unit within your working area at this price?
TOTAL = RM2600/mo ; halved at RM1300/mo

A basic calculation, might have missed out some of the detail or over est. some of the cost. Base on this est., you're going to be tight if you plan on getting a car, rent a house and buy a house at the same time now. Wait for the more experienced sifus to reply coz i have no experience  tongue.gif

notworthy.gif

According to your number here, I make some adjustment:
Housing loan repayment for 300K property = RM 1200/mo
2nd Hand Car instalment (for 5 years) = RM 500/mo
Motorcycle Loan (for another 4years 3 month) = RM 250 (including insurance).
Basic insurance x 2 (wife and me) = RM 160
PTPTN = RM 300
TOTAL = RM 2410 which is  46% of our take home pay.

Is this good or bad?

*
morning06
post Mar 26 2014, 01:10 PM

Enthusiast
*****
Senior Member
869 posts

Joined: Mar 2006
From: @wherealltherichlurks


If you're worry about your dependent in cases where you can no longer work (Total and Permanent Disability,TPD) den a life insurance (health) and PA (accident) is more appropriate to pay for you and their expenses for 'n'-years/months depending on your plan. Rider is just a luxury that you pay more for EXTRA insurance benefit, of course like i said if you find it useful den it's for you. If your goal is to cover you and your family expenses in cases of TPD; being not able to work anymore, Life insurance is better than the hospital income rider.

Yes, medical card is the minimum in insurance.

For house, it's better to decide with your family; coz it's a big commitment. Different people different view on this, there are people who prefer renting a room instead and buy property to generate rental income. There are also people who will get a home first; which for your case since you'll be living with your new family. No right or wrong, so you'll have to discuss with your family and make the call yourself.

The calculation is base on property @RM300k, can you find any at that price range? If not den you'll have to review. Calculation haven't include any Life insurance (to meet your basic need which you said you do not wish to burden your family in cases where you can't work anymore) And if you still can save 46% from your combined income that will be a good figure. But you'll have to take note of some not-so-frequent expenses like emergency, car maintenance, repair etc. etc. and more importantly, you have to plan for your child since you'll be having one soon. Can the remaining amount pay for your child expenses hmm.gif ? If not den you're in big trouble...

notworthy.gif

This post has been edited by morning06: Mar 26 2014, 01:12 PM
Skidd Chung
post Mar 26 2014, 10:43 PM

Casual
***
Junior Member
456 posts

Joined: May 2010


Just want to add, try not to spend too much on your wedding. And don't take loans/debts for weddings.

Remember that it is just a 1 day event. Although it is a very important day, most married couples forget their wedding day after the 1st year. Reason being you will be dead tired on that day and probably glad the day is over.

As a married couple you still have the rest of your lives ahead, so don't spend your entire savings on a 1 day event when more life responsibilities are coming your way. House purchases needs a minimum of 10% down payments or fees. Don't forget minor renovations and furniture.

Car loans also need a down payments and don't forget future expenses for maintenance and servicing. Your fuel costs will go up as well.

Don't take the ASB loan first until you figure out the other loans you planning to take. Because if you max your ASB loan, it might affect your credit limit for other loan applications like housing loan and car loans.
morning06
post Mar 27 2014, 05:43 AM

Enthusiast
*****
Senior Member
869 posts

Joined: Mar 2006
From: @wherealltherichlurks


QUOTE(Skidd Chung @ Mar 26 2014, 10:43 PM)
Just want to add, try not to spend too much on your wedding. And don't take loans/debts for weddings.

Remember that it is just a 1 day event. Although it is a very important day, most married couples forget their wedding day after the 1st year. Reason being you will be dead tired on that day and probably glad the day is over.

As a married couple you still have the rest of your lives ahead, so don't spend your entire savings on a 1 day event when more life responsibilities are coming your way. House purchases needs a minimum of 10% down payments or fees. Don't forget minor renovations and furniture.

Car loans also need a down payments and don't forget future expenses for maintenance and servicing. Your fuel costs will go up as well.

Don't take the ASB loan first until you figure out the other loans you planning to take. Because if you max your ASB loan, it might affect your credit limit for other loan applications like housing loan and car loans.
*
Sometimes its the parents that's demanding on the wedding lol

Housing 10% dp for new property, prepare an additional 10% for legal and stamping fees for existing ready to move in property. Additional/luxury renovation and furniture can always sort out later if tight on budget, get the basic ;bed, shower etc.

And yeah, plan ahead of your commitment so your loan application doesn't get stuck. Get a banker to help you out with a exact calculation smile.gif
alien9
post Mar 27 2014, 09:16 AM

These stars mean nothing
*******
Senior Member
3,030 posts

Joined: Dec 2009
From: Jelatek / Wangsa Maju


QUOTE(morning06 @ Mar 26 2014, 01:10 PM)
If you're worry about your dependent in cases where you can no longer work (Total and Permanent Disability,TPD) den a life insurance (health) and PA (accident) is more appropriate to pay for you and their expenses for 'n'-years/months depending on your plan. Rider is just a luxury that you pay more for EXTRA insurance benefit, of course like i said if you find it useful den it's for you. If your goal is to cover you and your family expenses in cases of TPD; being not able to work anymore, Life insurance is better than the hospital income rider.

Yes, medical card is the minimum in insurance.

For house, it's better to decide with your family; coz it's a big commitment. Different people different view on this, there are people who prefer renting a room instead and buy property to generate rental income. There are also people who will get a home first; which for your case since you'll be living with your new family. No right or wrong, so you'll have to discuss with your family and make the call yourself.

The calculation is base on property @RM300k, can you find any at that price range? If not den you'll have to review. Calculation haven't include any Life insurance (to meet your basic need which you said you do not wish to burden your family in cases where you can't work anymore) And if you still can save 46% from your combined income that will be a good figure. But you'll have to take note of some not-so-frequent expenses like emergency, car maintenance, repair etc. etc. and more importantly, you have to plan for your child since you'll be having one soon. Can the remaining amount pay for your child expenses  hmm.gif ? If not den you're in big trouble...

notworthy.gif
*
How much does the safe range percentage for loan if you don't mind me asking? Is 46% of our combine take away pay is considered a lot for a normal people?
alien9
post Mar 27 2014, 09:20 AM

These stars mean nothing
*******
Senior Member
3,030 posts

Joined: Dec 2009
From: Jelatek / Wangsa Maju


QUOTE(Skidd Chung @ Mar 26 2014, 10:43 PM)
Just want to add, try not to spend too much on your wedding. And don't take loans/debts for weddings.

Remember that it is just a 1 day event. Although it is a very important day, most married couples forget their wedding day after the 1st year. Reason being you will be dead tired on that day and probably glad the day is over.

As a married couple you still have the rest of your lives ahead, so don't spend your entire savings on a 1 day event when more life responsibilities are coming your way. House purchases needs a minimum of 10% down payments or fees. Don't forget minor renovations and furniture.

Car loans also need a down payments and don't forget future expenses for maintenance and servicing. Your fuel costs will go up as well.

Don't take the ASB loan first until you figure out the other loans you planning to take. Because if you max your ASB loan, it might affect your credit limit for other loan applications like housing loan and car loans.
*
Thanks for your response. My current budget for the wedding is RM 10K where we just make 1 wedding instead of normal 2 and the number of guests are 400ish instead of normal 1K for Malay wedding. We tried to reduce the wedding cost as much as we can.

What I'm happy with my wedding is that both of us and our family understand the importance of living the day after the wedding thus all of us decided that the wedding will be simple thumbup.gif

Skidd Chung
post Mar 27 2014, 04:57 PM

Casual
***
Junior Member
456 posts

Joined: May 2010


QUOTE(alien9 @ Mar 27 2014, 09:20 AM)
Thanks for your response. My current budget for the wedding is RM 10K where we just make 1 wedding instead of normal 2 and the number of guests are 400ish instead of normal 1K for Malay wedding. We tried to reduce the wedding cost as much as we can.

What I'm happy with my wedding is that both of us and our family understand the importance of living the day after the wedding thus all of us decided that the wedding will be simple  thumbup.gif
*
You have a very good understanding family. rclxms.gif

td00164306
post Mar 27 2014, 07:01 PM

Getting Started
**
Junior Member
287 posts

Joined: Nov 2007


QUOTE(alien9 @ Mar 26 2014, 12:43 PM)
*
I would advise you to postpone your hire purchase and insurance until you have settled your shelter. 46% of loan apportioned to your combined income is indeed risky to me. Here is why:

1. Since you just saved enough for wedding and new house, I assume you don't have much money left after that.

2. If one of you lose your job, the another one is not making enough to cover all the expenses.

3. Insurance is more useful when you have kid. Essentially nothing has change after your marriage until you have children, why bother to buy insurance at this point of time?

4. Your priority is beef up your backup fund. Keep at least 4 ~ 6 months of expenses before looking into car and insurance. Ideally 12 months of expenses if you want to have children.

Just my 2 cents.

This post has been edited by td00164306: Mar 27 2014, 07:01 PM
alien9
post Mar 27 2014, 09:59 PM

These stars mean nothing
*******
Senior Member
3,030 posts

Joined: Dec 2009
From: Jelatek / Wangsa Maju


QUOTE(td00164306 @ Mar 27 2014, 07:01 PM)
I would advise you to postpone your hire purchase and insurance until you have settled your shelter. 46% of loan apportioned to your combined income is indeed risky to me. Here is why:

1. Since you just saved enough for wedding and new house, I assume you don't have much money left after that.

That is correct. We do need to furnished our house but we do have some money for the necessity equipment

2. If one of you lose your job, the another one is not making enough to cover all the expenses.

3. Insurance is more useful when you have kid. Essentially nothing has change after your marriage until you have children, why bother to buy insurance at this point of time?

Both of us are going to work riding bike. I really think that it is a must to at least have a basic medical and insurance no? I don't think that those are too expensive right? (according to the numbers given by Morning06.

4. Your priority is beef up your backup fund. Keep at least 4 ~ 6 months of expenses before looking into car and insurance. Ideally 12 months of expenses if you want to have children.

Will definitely save money for backup fund. Is it 4-6 months of expenses or 4-6 months of our wages?

Just my 2 cents.
*
cynthusc
post Apr 2 2014, 03:41 PM

On my way
****
Junior Member
500 posts

Joined: Nov 2006
QUOTE(alien9 @ Mar 25 2014, 12:28 AM)
Hi sifu and all members. I didn't managed to read anything yet but I will start soon as I'm in the midst of UAT for my company's app.

A short info about me:
» Click to show Spoiler - click again to hide... «


Situation:
1. Will be getting married thus we need to find a new home (either rent of purchase). My thought would be find one nearby our working place as it will cut a lot of travel time and fuel cost. Problem being is that my soon to be wife would not want some maid to be looking after our child (if we are lucky and we are hoping to get a child as normal as a parent would get). So, what we can do is find one nearby Taman Melati and send the child to her mother to look after thus travelling everyday from Taman Melati to TTDI.

2. Car. I don't have car and I want to buy one. Suggest either we need to find a 2nd hand car or purchase a new one that wouldn't put much burden on our financial capability. My current thought is to not buy a first hand car which usually cost somewhere around RM 600++ per month for a 9 years instalment, instead just buy a 2nd hand car and pay RM400++ for 5 years.

3. Investment and paying PTPTN. Since both of us are working in private sector, we need to have pension scheme, investment, savings etc. I have one in mind which is investing is DANA EKUITI PRIMA FUND under ETIKA. It's a Protection + Investment + Savings plan. And we do need to pay our PTPTN too.

I will start reading and hopefully will get some insight myself on my current situation but I really appreciate inputs from sifus.  thumbup.gif
*
My advice:-

Take home pay for both H & W is RM5200.00

1) Since you are a newly wed and young, I suggest don't have kids first for the first year. Having kids to early puts a strain on both your finances and marriage.
2) Don't buy a car unless you have kids. Move nearer to TTDI. Look at Flora Damansara Apartment. Look at Block E,F or H which is medium cost. You can buy a bumi unit quite cheaply at about RM160K for 800sq feet. Auction units can be cheaper. From Flora Damansara it is just a 10 minute bike ride to TTDI using the Pencala link. Since its your starter home, don't worry as in 5-6 years time you will be able to buy a better place.
3) Get a medical card for both. There are some plans that are RM600-RM700 per year.
4) Calculate all your debt and determine its interest rate. If it is low like 3-4% per annum, then pay it slowly.

Suggested budget
1) RM2500 (ASB savings. Don't take ASB loan, your return on that is much lower. If you just pay monthly into your ASB you are getting 7-8% per annum in return)
2) RM800 for accommodation (rental or bank repayments)
3) RM250 for bike repayment
4) RM200 for petrol for bike
5) RM110 for medical card for both
6) RM500 for Food and other necessities
7) RM150 for tel and utilities
8) RM690 PTPTN loan (if your monthly is lower or higher adjust accordingly with your contributions to ASB)

In one year you would be able to save RM30,000.00 + interest. In one year you would be more prepared to have kids or in one year you will have the downpayment for the apartment. The point is don't try to do everything at once. If you buy car, buy apartment and have a kid all at once, you will find yourself financially strapped and will start resorting to credit cards and personal loans. Choose one goal and go for it. Take a short break and then the next goal.

If you and your wife's salary increases by 10% every year and you put most if not all into your ASB, in 3 years time you will have RM100,000.

jasmineh2y
post Apr 2 2014, 05:02 PM

Nothing
******
Senior Member
1,100 posts

Joined: Dec 2006
good thread
bearbear
post Apr 2 2014, 05:52 PM

You'll Never Walk Alone!~!~
********
All Stars
10,058 posts

Joined: Dec 2004
From: Sheffield


QUOTE(cynthusc @ Apr 2 2014, 03:41 PM)
My advice:-

Take home pay for both H & W is RM5200.00

1) Since you are a newly wed and young, I suggest don't have kids first for the first year. Having kids to early puts a strain on both your finances and marriage.
2) Don't buy a car unless you have kids. Move nearer to TTDI.  Look at Flora Damansara Apartment. Look at Block E,F or H which is medium cost.  You can buy a bumi unit quite cheaply at about RM160K for 800sq feet. Auction units can be cheaper. From Flora Damansara it is just a 10 minute bike ride to TTDI using the Pencala link. Since its your starter home, don't worry as in 5-6 years time you will be able to buy a better place.
3) Get a medical card for both. There are some plans that are RM600-RM700 per year.
4) Calculate all your debt and determine its interest rate. If it is low like 3-4% per annum, then pay it slowly.

Suggested budget
1) RM2500 (ASB savings. Don't take ASB loan, your return on that is much lower.  If you just pay monthly into your ASB you are getting 7-8% per annum in return)
2) RM800 for accommodation (rental or bank repayments)
3) RM250 for bike repayment
4) RM200 for petrol for bike
5) RM110 for medical card for both
6) RM500 for Food and other necessities
7) RM150 for tel and utilities
8) RM690 PTPTN loan (if your monthly is lower or higher adjust accordingly with your contributions to ASB)

In one year you would be able to save RM30,000.00 + interest. In one year you would be more prepared to have kids or in one year you will have the downpayment for the apartment. The point is don't try to do everything at once. If you buy car, buy apartment and have a kid all at once, you will find yourself financially strapped and will start resorting to credit cards and personal loans.  Choose one goal and go for it. Take a short break and then the next goal.

If you and your wife's salary increases by 10% every year and you put most if not all into your ASB, in 3 years time you will have RM100,000.
*
would he not be better off taking ASB loan to fully utilize his quota?

Example if his nett return is 3% after deducting his 'cost' (loan interest and what not), 3% of 100k is 3k better than him not getting anything while saving up to fulfill his quota.

td00164306
post Apr 2 2014, 07:47 PM

Getting Started
**
Junior Member
287 posts

Joined: Nov 2007


QUOTE(alien9 @ Mar 27 2014, 09:59 PM)

*
Insurance is more useful when you have dependants. In your case, I don't think your wife is consider a dependant to you, since she works and can self-sustain (this has been the way all these while, isn't it?). If riding a bike to work is the deciding factor to getting an insurance policy, then it should have been done much earlier. I am not sure about the price but if it fits in your budget well, you can still go-ahead. My point is this is not something essential yet; however this is very subjective.

I personally prefer to use monthly expenses as a unit of measurement for my backup fund because essentially this is the amount that I expect to spend.

There is no fixed formula of "comfortable loan amount approportioned to your combined monthly income". Let say, me and my wife have combined income of 250k ringgit a year and a combined liquid asset of 500k, we can afford to loan even up to 70~80%, since we will still left with adequote money.

In your case, your combine monthly income is only about 5000 with minimal amount of saving now. Loan up to 46% of that amount essentially leave you with less than RM 2500 per month. Taking into consideration of your daily necessities, how much you have left to put in the piggy bank? To me the priority is really:

1. Save up the contigency fund as fast as possible.
2. Get an insurance.
3. Then only buy a car.
td00164306
post Apr 2 2014, 08:17 PM

Getting Started
**
Junior Member
287 posts

Joined: Nov 2007


QUOTE(turbopips @ Mar 2 2014, 01:28 PM)
Hi Wong Mun Keong and all financial gurus,

I was posted overseas for a few years, came back and got married not long ago.
I find difficult to save money, can’t imagine if have children.  sweat.gif
Give wife RM1.1k extra pocket money to spend on her personal stuff and she already starts complaining too little?
Appreciate your comment if I had been planning my financial properly especially monthly expenses?

Income after tax – RM12k

Expenditures (Family)
Food & Entertainment          2500
Wife xtra pocket money  1100
House (loan, condo fees etc) 3000
Car (Loan, Petrol, maintenance)  2000
Insurance (family)              700
Utilities + phone bills                400
Money to both side parents        1000
Total            10700

Savings RM1300 – Many other incidental cost + vacation + investments

Net wealth
Property (after minus debt) – 50%
Investments          -  45% (52% mainly EPF+ PRS/Funds, 18% KLSE, 30% Foreign equities)
Cash in bank          -    5% (40% local, 60% foreign currency savings)

I did not withdraw my money back to Malaysia, therefore the cash overseas still occupy 60% of my cash in hand.
Not much money in the banks anyway and besides, MYR is weak now so keeping foreign currency is better diversification (I think).

Thank you
*
If this is not a show-off attempt, then very obvious your are not planning your financial matters properly and I am in doubt of someone who repatriated back and commanding a moderate level of nett monthly salary of 12,000 actually lacks this very basic stuff in his financial management.

Anyway, a more luxury end of lifestyle is always in conflict of interest with your saving account. You can get more saving by trimming your food and entertainment fees, switching to a cheaper car and if essential, reduce your wife pocket money.

To be honest if your wife is not working then your monthly family income is only RM 12,000. It is probably just slightly more than enough to live comfortably in Klang Valley. You need to watch your spending; or; beef up your income.

117 Pages « < 2 3 4 5 6 > » Top
 

Change to:
| Lo-Fi Version
0.0257sec    0.37    6 queries    GZIP Disabled
Time is now: 29th March 2024 - 10:17 AM