I always put aside rm400 of my salary into my joint account (joint between me & my fiance).She also doing the same thing,contributing another rm400 into the saving.. We've been practicing it since 1999...heheh. We now have more than RM75k in our saving. We planning to use it for our wedding, buying our house and other stuff .

This post has been edited by Civil: Jan 3 2007, 08:41 PM

i suggest only put a certain amount,something like money for 2 month of your normal spending pattern in your saving account that use for autodebit credit card fees.if any unauthorise transaction happen,you will not facing that great lost.

however,it really not a good idea using you major saving or major current account for the autopay credit card purpose.

the time to monitor the minor account and to transfer money to the minor account from the major account somehow makes itself useless. The same time can be spent to transfer the money from your major account to the credit card account.
just my 2 sen.

please do not rely on EPF for your future financial needs. there has been so many foul ups at this GLC that the future of the funds in it is in question. The RM 1.5m money that was taken out recently serves to highlight that other people ( read govt servants ) will not give 2 hoots about spending OPM ( other peoples money ) and if the money really lesap / suffer loss in the KLSE or elsewhere, they will simply wash their hands, declare a loss and reduce the dividend to you and me. That's it. No other action. You may get back your full sum when you turn 55 but inflation has already taken a big bite out of it.

This is really something that i am planning to do all these while. But it is so hard to persuade my gf to join me. We have been together for more than 6 years and the topic of marriage never came into our conversations. But recently i had forced myself to make at least 10% of my income as force savings. No matter what happens, i want this savings so that 1 day i have enough money to married my gf. I cannot rely on my family, as now i m helping them clearing their debts.

Btw, again i know i m out of topic, but let me share my opinion of financial management.

I personally like the excelsheet a lot and started using it last year when my colleague send it to me, but it only help us to break down the money we spent every month and how much is the balance for us to make it as savings. (Basically, it help us to micro-manage our own money).

I heard the financial planning "guru" from some radio stations or movie show (I forgot) said this:-
- 10% of income must go to savings,
- 10% for insurance,
- 25% goes to housing loan (if you have a house),
- 15% for car loan,
- 20% for makan & etc,
- remaining 20% goes to parents or something things like entertainment & etc.

Sigh, how many person here can follow this methods? I m the first person who can't follow.

You won't be getting/using 100% of your salary as roughly 11% are deducted first for EPF and SOSCO contribution. You left only 89% of your salary to spend for the above items.

If you pay 15% of your income on car and 25% on house (total =- 40%), you are on your way to financial ruin. You just need to lose your job for a few months to be bankrupt.

In general, try NOT to pay for car and house at the same time. Pay of the car first before your buy a house.?


You need to add in tax also.

Dreamer

That info i got it from the TV programme, and i m not following that method but i just follow the method of 10% of my income goes to savings. But, if you see 15% for car of your income? Actually, it is telling us that it is not advicable for anyone to get a car unless your monthly income is more than 6K per month.

I think doesn't make any sense, but that's just a piece of info that i got from the TV show lar. Not to ask anyone to follow also ... keekee ...

That's why it's a good idea to try and take out as much of it as possible before they fxxx it up for you!

Buying a home is a good place to start IMHO... through there you can make claims to withdraw your EPF funds and put it to good use...

Crap I'm one of those ppl with 50% loan

What am I gonna do?

This post has been edited by aaronpang: Jan 6 2007, 01:06 AM

Did the programme give any salary figure as an example? Let say your salary is RM 3k, 15% is roughly RM450; far less than our normal monthly repayment figure which is normally RM600 to RM800; depending on your amount loan, HP interest and years of repayment.

This post has been edited by David83: Jan 6 2007, 01:05 AM

IMO - nonsensical if someone insists on following that percentage

assuming you earn say RM 3k
RM 300 - 10% of income must go to savings,
RM 300 - 10% for insurance,
RM 750 - 25% goes to housing loan (if you have a house),
RM 450 - 15% for car loan,
RM 600 - 20% for makan & etc,
RM 600 - remaining 20% goes to parents or something things like entertainment & etc.

now let's say now you're earning RM 6k
RM 600 - 10% of income must go to savings,
RM 600 - 10% for insurance,
RM 1500 - 25% goes to housing loan (if you have a house),
RM 900 - 15% for car loan,
RM 1200 - 20% for makan & etc,
RM 1200 - remaining 20% goes to parents or something things like entertainment & etc.

the % shouldn't be fixed IMO. cos if you follow that rule, you're forever saving only 10%.

RM 1200 per month for food is ridiculous too. in fact the more you earn, your savings should be even more than 10%. your housing loand / car loan / food doesn't necessarily need to increase proportionately with your salary increment.

The ultimate goal is to keep your income as far ahead away from your expenses.

Wow. That leaves around RM452 (excluding family expenses) for you to spend. You really, really need to cut your mobile phone usage and find a way to decrease your payment to tolls. You really need that. Other than that, try to decrease your transportation need, stop going out unnecessarily (it's really tempting, I know that personally). Another way to solve your problem is to find a second job, part-time job to solve short-term financial crisis.

I will provide more detailed explainations after this, Don't have time for that.

This post has been edited by theinvestor: Jan 6 2007, 10:42 AM

Actually, the example is based on income 5K and above. That's the reason why she mentioned, those who earning 3K+ are not advicable to get a brand new car. ... unless u get a kancil or something like that.

But let's don't argue about something that we are not sure. And i do believe everyone have their own method of savings as long as that method suits ur current condition the best. Simply because each person have their own commitments and etc. There isn't any method that can suits everyone, we just have to adjust ourself. Deal?

hi jootat,

personally i think its okay if your gf didn't follow your idea of sharing account for saving, furthermore you are not planning to getting married yet right? Deducting 10% of your income as force saving is a good choice. I think as time goes by she will see your effort and will start save her money too!

Personally, i do not have the habits on saving money... Borrow money from relatives for education, so need to return them once working...so basically first 3 years working are just to pay off debts. And not forgot to mentioned my credit card debts that a stack. Use credit card every middle of the month for meal cox no more cash.

Previous income 2.6k.. cant save but still can survive.. have a little debts with credit card... Then i manage to clear it off early last year, but once the credit card being cleared, my hand itchy..go n swipe again...no practice clear it cut it send back to bank

Though previous 2.6k cannot save but manage to survive, so current salary 3.5k supose to have another 900 more to save...but still the same..cant manage to save..but the situation get worst....

The mroe i earn the more i spend

see, that's the thing. you need to MAINTAIN, not increase. expenditures aren't meant to scale according to increasing income.

Trying very hard on that....now clearing all my debts and start to learn how to save..

i think the reason behind lacking $$$ to save might be due to debts.

the over-usage leads to debt, subsequently earned $$$ need to be used for debt settlement.

again, best is do a checklist on how you spend your $$$.

it is entire possible to have leftover sum after all fixed costs are taken into account, then use 50% of the leftover to settle debt and another 50% to be in savings.

it's risky to go without savings, any time some "sway sway" things happen like lost handphone, car breakdown and other mishaps could really turn everything topsy-turvy.

Ya..u r right... the most stupid things i ever did i to supp a card to my brother..firstly though covenient for him to pump petrol...who knoes...turn into a tragedy! nightmare!

Actually nothing much on my expenses...

Meal : 300
Phone : 75
Petrol + toll : 300
car loan : 650
mum : 200
Insurance : 135
Fitness First : 175
relative debts : 200
the rest go into credit card n personal loan.......

Every month, 28th get salary...3rd finish..sad sad sad

hrm. your expenditures looks fine - it's just the CC and Personal Loan part that needs work on.