wild_card_my

On a personal view, I am for paying debts early.
Cash flow is a dirty word for normal consumers to get deeply in debts, my opinion only.



This post has been edited by magika: Dec 3 2014, 10:59 AM

You are assuming the people to advise to settle loan early are "old". the concept is old and time tested wisdom, this does not mean the people who support it are "old".

it is more conservative and less risky compared to the "new way of thinking" to leverage everything. it depends on a person's risk appetite.

I would still maintain the total cost of interest vs. the total income in one's lifetime concept in viewing the action of the 'enterprising man'.

If he is a trader or sole-proprietor running a business, whether part-time or full-time, he would looking at his income and liability as a whole.

When he took a longer or longest possible tenure he can get in a housing loan, it is not because he will have better use of his available funds. It could be that the interest rate on the housing loan is the least costly compare to other means of finance such a business or personal loan.

He is still applying the 'pay the least cost of interest' concept.

Lastly, I think the phrase "pay off loans as early as possible" is too general.

As in the previous post on house hunting and the adjustable variables, the best loan and tenure has been determined. In the fairy tale of John, John should commit to taking the same loan and installment as he had earlier planned (whether it is a flexi loan or not).

anyone work under bank and make personal loan

i go bank rakyat to apply personal loan but there said need to go to kobank first to make approval 1st..

which bank provider better personal loan can share?

This post has been edited by kintsuchi: Dec 22 2014, 09:14 AM

Try Bank Islam, ~6% with certain T&C.

This post has been edited by supersound: Dec 22 2014, 04:38 PM

Bank islam, i presume this is for those of the Islamic Faith only?

Or is it like Islamic Unit trust in which all regardless of background can apply?

This you don't ask me, as that's the only bank that offering lowest interest. Last year even lower, at 3.5%.

clearly there is still some misunderstanding about islamic banking system and islamic banks eg bank islam
they are open to everyone.they are known as islamic banks its following islamic principles(no interest,profit sharing etc etc)

yea.. but bank rakyat need to go tru kobank(koperasibank) for pp that work under bank to apply loan

any one know bank that not use kobank

Hi Sifu,

I want to start with saying that I hate commitment a lot. It is really soul depleting to serve that loan every month. But I really come here to seek advice what I should do next. Hope I can get some from there. Here's my financial status:

income: 3.3k
bonus: at least 1 month, usually 3 months in total.
cash in hand: ~30K
Expenses: ~1.2K (Rent, utilities, transport, entertainment)
Liability: ~1.3K (3 more years)
variable expenses: depends (flying back to hometown, oversea travel, gadget etc)

so ended up my cashflow in a month is only rm300-400, depends on my impulses of buying stuff here and there. I am planning to save up more to buy a renting property, but seing my position now, it will be both difficult and risky. It's soul depleting when you see your fresh grad friend from rich family bought a V-spec Honda Jazz getting ladies around. Ladies like it ready-made.

What should I do now? use that 30k to buy some public mutual? save somemore to get a renting property? i'm stuck here.

similar response as per post#7 of
https://forum.lowyat.net/topic/3470405/+0#entry72504474

First of all, put at least 3 months of your savings away as emergency funds, in your case at least RM 10k. This money should not be invested at all or put inside close to zero risk types of investment. Preferably, put it somewhere you can easily withdraw if something happens to you or you are unemployed.

The rest RM 20k should be invested but this would highly dependant upon what you want to achieve. You said you hate commitments in serving loans but these things are a necessity when it comes to buying property. Rather, the advantage of investing in property is the fact you can use someone else's money to generate income but in return you are stuck on that continuous financial commitment plus the risk of property market going down and interest rates going up.

If you are planning to invest on property in the future, best would be to just put your money in FD, while waiting that you accumulate enough money to invest in property. Another option would be to put that money on low risk unit trust investments such as money market or bonds though be informed that most does not outperform FD, mainly due to the annual management fee and the sales charge. If you can swallow some risk of delaying your property investment which the potential of accelerating your property investment, you can opt for dividend or income fund as these funds have lower risk than equity funds but give decent returns.

If you prefer not get stuck on commitments, you can either invest your money in unit trust (REIT's included), stocks or ETF. Unit trust are not just limited to Public Mutual and there are a lot of funds out there that outperform Public Mutual funds. You can either go for Institutional Unit Trust Advisors (IUTA) or check out online unit trust platforms like fundsupermart.com or eunittrust.com.
If you want to go for stocks, you need to have patience, time and effort to learn about the market. Go for blue chip stocks (high market capitalization stocks) first as these stocks are less likely to lose to much of it's value and give decent returns for the long term. If you are busy daily or prefer not to spend to much time on investing, either just go for unit trust or ETF. ETF have lower sales and management fees than unit trust but with potentially lower return (highly dependant on the unit trust you choose). ETF are mostly horrible for short-term investment unless you are an active investor who constantly took the effort to time the market.

The questions of how long you wanted to invest, your risk tolerance, how much you want to commit your time to learn on investing and your financial objectives are important as this allows people to advise you better on what investment vehicles you should opt for. I would also advise to put a small portion of your savings (probably like RM 100 per month) to investment that focus on your retirement/long term as a good retirement is the kind of financial goals that is best plan early.





And of course, all of this are opinions not rules.

This post has been edited by eternity4life: Jan 15 2015, 12:44 PM

Hi, i just come out with a survey on financial planning yesterday..

Please check through the link here: -

Financial Planning and Management Survey

Thank you.

Done too.

Looking fwd for small-middle income financial plan

My situation:

income: 2700
car hp: 300 - 2nd car
utilities: 120
petrol: 350 - use cc
ptptn: 350
insurance: 100
loan: 730
cash in hand: 7k - for emergency
wife money: didnt touch any cuz her salary also ciput. she pay her personal loan & daily expenses

balance: 750 for everyday expenses. barely able to save.
father to be soon, expect emergency fund will be used up

what to do meh

Rake some part time.. earn extra income.

start doing resume, and hunt for a better paying job.

Had thought bout it. But this near time...still can't.
Live in parent house, take care of my too old father and wife (now 8mnths preggo) <-Cant migrate to other state for now
So, for meantime i should not always out...even for part time job.

Resume already sent out several months ago, to several co.
Current cmpny really well, but rates here still sh!++y low.

Do online business at home..

Teach ur wife to do also...

well, that is life.. if dun want to do, then have to live life that way again.

no pain no gain man.

Maybe you can try to uncover your special skills and use it for generating part time income.

For instance, if you are good in teaching, you might as well do some part-time tuition to rake some extra income..

Thanks for the advice, will consider which is possible with my situation.
My freelance project stuck halfway since it require intense study, exams & waiting for results

Time is gold & education is investment

Income: nil