Hi forumers,

I have concerns about my personal finances that I would like to share with u all

My salary = Rm 4100 gross + other benefits
Net pay = Rm 3560

I have a cc that has long overdue about 1.5 years ago and the outstanding amount
Currently is at Rm 8.6k

I wanted to buy a property few months back. I went to bank Negara to print out my
Ccriss report to my amazement, the cc is not in the ccris. I decided not to move with the purchase then
Thought of a better investment.

Now I believe I found the property that I want. I only have 10k in hand right now after discounts
I would need to pay 10k as the down payment for the property.

My concern is should the credit report be updated and show in the ccris. How should I manage this?
If I pay the cc I won't have enough money for the down payment

I'm 25 btw

Good planning mr Wong.

@the rest: TBH I think we should save a portion but please do spend the rest. I feel no point living life if you save save save and you retire richer but sadder.

Hypothetical scenario:
A normal guy in KL making 4k a mth. He spend 3k and save 1k.
B saver guy in KL making 4k a mth. He spend 2k and save 2k. Drastic change to lifestyle compared to A. Saves 12k more a year.

Saver guy B
20-30 yrs old stay at home, weekend no go watch movie and date
30-40 yrs old small/no wedding, everyday homecook to send kids to SRK
40-50 yrs old change new local car (e.g. protong to protong), everyday homecook to send kids to SK
50-60 yrs old spend on TAR college for kids, wear cheap shirt cos uncle age de
Retirement = kids start to earn RM 2.5k/mth PV, EPF and extra income from UT (from 12k more/year money) not significantly better than normal guy A.

Normal guy A *Rmbr 1k extra spend makes a lot of difference at 4k/mth income level
20-30 yrs old weekend out watch movie and date, sex with nice young girl in love with him
30-40 yrs old small wedding, bring kids out once in a while, wife happy got wedding- heard wife B complain cos no wedding
40-50 yrs old change new CKD car (safe and comfortable), kids turning out normal and happy cos got holiday when young
50-60 yrs old spend on kids go to local govt uni, wear clean shirt
Retirement = kids start to earn RM 2.5k/mth PV, same EPF and some saving.

I dunno la. Please dont kill your life (which is worth more) by oversaving.

My 2 cnts.

You suffer like hell

go makan in soup kitchen to survive with 1k..

U dont have a BIG ENOUGH REASON to be a multi-millionaire (unless U born with a silver/platinum spoon) U need something bigger than self.

a. some folks die die MUST change car every 5 years else.. die
even if go into slavery... i mean debts

b. some folks die die MUST eat at 5 star restaurants IN hotels every week at least
even if they make ONLY $8K net /mth

c. some folks die die dont want to die in slavery
AND finds beauty in simplicity + serving a greater cause / burning desire bigger than self
AND likes the freedom of choice

who U think is the stupid one?
depends on yr lifeSTYLE or LIFEstyle "indoctrination" & personal reality right?
no right/wrong - just that every choice has it's payoff and cost. 

well... like everything in this world, there's a limit. we can't have EVERYBODY flocking government hospital and people not buying insurance and not going to private hospital... then government can't sustain the healthcare bill... price increase... everybody lose...

yes thankfully, with government hospital and also semi-private like ukm/um we managed the bill for 2 rounds of chemo for my dad. otherwise... ya, we wouldn't be able to afford it cause my dad ain't got insurance...

yes, about the reducing expenses thing, we can't have no spending as well... something needs to drive the economy... HAHA  anyway, yes i do spend very little, but you know, just saying... so i encourage my friends who make money than me to continue spending 

so yes, i still think medical insurance is necessary... because i don't want me to burden others like how my dad sort of became a burden... and well, when one is sick, one deserve some privacy and comfort after all...

BUT seriously, did you check with your employer? do you work in a big-ish company and check with HR about your benefits? like actual hospitalisation benefits...

also... when you are at the point of being approach by an agent, and seriously considering to get one, just drop by the forum insurance thread to get some input.

erm... medication? electricity? beds? everything cost money.

what sort of logic is this...

when you use something, you spend... thus expenses... of course they are sunk cost, but you use, you spend... no use... no spend...

medication from stock? when you restock no need to pay?

really... apa logic???

No this is obviously wrong. the more people use it, the more govt must buy. many things have more than 1 year expiry, some even 5 years. you dont use it, no need to throw. No need to buy further = save money .

That's when you make judgement calls, based on statistics and past history of supply and demand, and adjust your inventory accordingly.

Keyword: inventory management, and there's software to help you.

Regular posters != Knowledgeable posters.

I am surprised for this kind of reasoning from people who seem to be regular in finance, business and investment forum.  

first it is obvious you lack the understanding of what makes up a total health care cost. otherwise you wouldnt have shot back asking whether people sick or not govt still must pay drs' /nurses' salary, so , cost is the same.

There are many more to it other than just salaries. you dont use it, govt pay much less for it.

To argue that if you dont use it, it will go to waste is to say people do not know how to plan.
Think in a bigger context, not just for you one person.

Even if you still cannot fathom the complexity of health care  costs, at least you should know that
govt hospital is not half kosong and goyang kaki.

They are full to the brim, a situation that your "one more or one less patient wont make a difference" is untenable.
"One" is figuratively speaking, in case you come back and ask me one extra patient cost how much extra huh.....

Same experience here.
and that is why most folks are just getting along OR in deep kaka.
Same with managing $ - most of them will say "no $ to manage, manage what?"

Instead of thinking of managing $ then will have $
Just like health & excercise/eating properly - which comes first? Be, Do then only GET mar..
gave up trying to preach - now just help beating down extreme / dangerous BS or when someone's light finally  blinks on, then only i guide.

Yes, and no. Gross salary as based on their EF form. Most of them are salary earners and I prefer it that way. I like to keep things simple, for the time being at least, I do not factor in their investment income. Also Malaysians really do not like to pay directly for a financial planner, they prefer to deal with commission earners (hah!!!), so any complications would just drive them away. My current share of clients are mainly working in the O&G industry and other middle-to-higher management, and with salaries ranging from 80k to 200k a year, even they find it worth it because:

1. I talk about them about their CURRENT insurance policies as it is, break down the cost of insurance VS premiums paid, the commissions/cut earned by the insurance company, and ALWAYS end up telling them that they are overpaying their policies due to the fact that a large sum of the premium paid goes into their insurance cash-out investments, the same premium that has already been reduced by 25% in the first 2 years.

So I suggest them to reduce their insurance premium WITHOUT reducing their coverage and it can be done, their agents dont like that though. I can only do this because I am being paid as a professional, but the same thing applies when I am being asked to propose to them an insurance policy: Match the coverage to what the client needs, but ALWAYS minimize the policy cost by zero-ing the amount that goes into the investment portion.

2. The mortgages and SPA has a lot of terms and clauses, each bank and lawyers with different drafting format, sometimes the agreements and LO are in very difficult to understand Malay law jargons. Sure, the interest rates, tenure, type of mortgages, changes in rates due to late payments, etc. have to be scrutinized. And I need to decide whether to recommend refinancing with cash-out (purely to reduce interest rates) or without cash-out, and if the rates are better, are they worth the refinancing due to the entry costs of refinancing; and if with cash-out, for what reasons? Do they have access to reinvest into better investment vehicles, one that can give much higher value than the cost of the loan (loan interest plus opportunity cost on the costs of refinancing)? For the Malays its easy, there is ASB but then again there is 200k unit limit, so without that what else? I tell them as I see fit.

I always present my findings in a detailed manner. And I don't force them to listen to me, as it is their own decision. But by taking a fee, I would not be biased in my findings. I don't have to upsell my products. I.e have you noticed most insurance agents are ALWAYS looking to sell their high-end policies?

This is a simple 1 minute illustration that I made about reducing spending on insurance premiums. You can get the same LIFE/DISABILITY and MEDICAL protection but at different premium costs. All it takes is a planner who doesn't have all his basket in one business. Do ask for clarifications:

p/s This is the same paper I used earlier, the sambal went over to the other side.