Personal Financial Management V3

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

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Byyyz	Jan 24 2015, 06:09 PM Return to original view \| Post #1
Getting Started Junior Member 187 posts Joined: Mar 2014	Not sure is this the right place to ask, do appreciate the help and reply of everyone around here. Thanks in advance!!! I'm a diploma student with zero financial knowledge with a very minimum commitment. Having 5 digits in the bank account which I'm able to pay for everything without being dependent to parents. Currently having just PTPTN loan only, which I'm not too concern about it as I'll be able to pay it off when I graduate in my degree (graduate in 2017). Taking into consideration currently working 4-6 jobs (part time jobs & online businesses)at a same time to pursue my diploma, take home income ranging from 4.5k to 6.5k per month. Income may vary due to availability of jobs, but has not be less than 4.5k I've allocated emergency fund of 3 months, currently with no commitment of vehicle & insurance (since it won't protect me, might as well make use of the money rather than spend it). Due to lack of knowledge in finance, I took the initiative to search some reading materials to get better picture of financial planning & investment. Hence, not doing any investment currently, cash is sitting in the bank. Which I'd regretted I never start early enough to manage my finance. If you guys are in my situation, what path will you take to fully utilize the cash to generate more cash and/or allocate it for better cash flow? And also, is it advisable to invest with current economy situation? Note: I'm not good in math and finance, so I'll need some time to learn from the basics before making any investment.
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Byyyz	Jan 28 2015, 01:42 AM Return to original view \| Post #2
Getting Started Junior Member 187 posts Joined: Mar 2014	» Click to show Spoiler - click again to hide... « QUOTE(yklooi @ Jan 24 2015, 06:55 PM) Unknown to your risk appetite (which is very personal and subjective)....try reading these links first before you decide. Why do you invest? Investing is not about picking the top-performing asset or the highest ranking fund. The purpose of investing is to make your money work for you. This requires investors to make informed, important and conscious decisions. Here are the questions that you must ask yourself before investing: https://www.kenangainvestors.com.my/KIB/KIB...vestingFAQ.aspx However, before you jump in and start investing your hard-earned money, there are several important things that you would need to know about yourself first. •How much do you really need? (Future Planning) •How much risk can you take? (Risk Level) •How long are you willing to wait before you see profits? (Time Horizon) http://www.fundsupermart.com.my/main/schoo...d.svdo?PageID=1 if the risk appetite is ok try PRS.....govt giving youth incentives... PRS Youth Incentive RM500 PRS Youth Incentive is an initiative by the government to encourage young individuals to start saving early for retirement.... April 23, 2014 http://www.fundsupermart.com.my/main/resea...?articleNo=4558 Have a read of these and its links for better understanding while waiting for more value able responses. QUOTE(polarzbearz @ Jan 24 2015, 06:58 PM) 1. Emergency Savings, best is to have 6 months worth but 3 months is OK too. No problems there. In fact you're having it while studying is already . I only had mine after graduation 2. Letting money sitting in the bank is fine, just place it in Fixed Deposits while you are learning on investments (Unit Trust, Property, Stocks, etc). 3. Learn more about the investments - understand them, then only proceed. It's never too late, I bet I'm older than you and I just started recently - the key point is as long as you are started, it's ok. 4. Once you understood more about investments and your own risk profile/risk appetite vs potential gains, then proceed to invest. Personally (currently) I'm investing max 10% of my savings, which I may increase over time when I felt more comfortable. Here's some articles to get you started: http://www.thesimpledollar.com/when-should-i-invest/ http://www.fundsupermart.com.my/main/schoo...alPlanning.svdo http://www.investopedia.com/university/beg...r/beginner2.asp http://www.moneysense.gov.sg/~/media/Money...tureEnglish.pdf And lastly, although this is not investment, I believe there are a few good points / takeaways from budgeting (which I believe you already fully practice or semi practice it as evidenced from your esavings) http://www.youneedabudget.com/method QUOTE(supersound @ Jan 24 2015, 07:06 PM) With rm4.5k, you need to put in rm500-700 for EPF, looks like you are self employed. PTPTN loan best is settle it fast since you have the money. Then you got extra money to save after that. Is wise that you never buy any insurance as it does not protects you when you need them. Balance of the money you should keep in the FD or buy ASM type of fund that charging you 0%, not those funds that charging you. Suggest to keep rm50000 in online FD, balance on hard paper FD that gives better interest. Online FD will be serve as your daily expenses and emergency fund. Make sure you have a FD matured every month. Thanks for shedding some light, will do all the reading and do some extra homework about it. Thanks again.
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Byyyz	Jan 28 2015, 01:52 AM Return to original view \| Post #3
Getting Started Junior Member 187 posts Joined: Mar 2014	QUOTE(eternity4life @ Jan 28 2015, 12:45 AM) Hi, I would like to understand the reason and your perspective on why you said insurance will not protect you? Did you have experience of bad claims before? Or currently you feel you don't have that much commitment hence insurance is not important for the time being? As someone who is working in the financial planning industry (not insurance agency etc2), wealth management is prioritize by the order of wealth protection, then wealth accumulation, wealth conservation and lastly wealth distribution. Insurance is considered as one of the main financial products for wealth protection. The reason to this is because if you are diagnosed with one of the 36 CI, you cannot work which stops a large(if not all) part of your income. You would also be faced with a huge medical fees to undergo medical treatment. Insurance acts as an income replacement while you recover. Medical expenses are one the most likely incident that would eat up all our savings hence the reason one of the main causes of people gone into bankruptcy(base on AKPK) was making loans to pay for medical expenses. There's no point of accumulating wealth if it's all going to go down the drain paying for hospital bills hence the reason financial planners focus on this first especially for the mass affluent. Even if you feel that insurance is not important for the time being, I would advice on at least buying a medical card for yourself. Good luck with your financial management. All the best. Thank you first for replying my post with informative suggestion, never knew that it is so crucial to own a medical card or insurance before. Once I Googled, saw a husband paid 1.7M for his wife from his savings due to not purchasing a medical card or insurance. I've made my mind and looking for medical coverage for myself. Btw, is medical card same with insurance? First time buyer with no experience, can you shed some light regarding medical card or insurance for a college student to take? As there are many aspects to be take into consideration and I do not wish to mislead by some (minority, not majority) insurance agent that would misled the information just for the sake to hit quota. Thanks again sir.
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