Let's keep growing our nest egg!
Friday, February 27, 2009
Let's keep growing our nest egg!
Wednesday, February 25, 2009
Have you got your rebate? If not, act quick before 31 Mar 2009.
Updated on 20th March 2009: The Malaysian private vehicle owner cash rebate of RM625 will be extended till 14 April 2009. You can read the news here.
Sunday, February 22, 2009
I had been frequently checking on KWSP website since early January this year for the 2008 dividend announcement. I had also been checking on local newspapers on the announcement as well. Tonight, a local tv news said that KWSP will announce its 2008 dividend by next month. I was a bit disappointed as for last year, KWSP announced its 2007 dividend on 31 Jan 2008.
I believe most of us, the EPF contributors are waiting impatiently for the dividend announcement. At a total contribution of 23% from our monthly wages, it's quite a huge sum of $$$ isn't it? Let's hope and pray for the best.
Updated on 17 Mar 2009: See related post EPF @ KWSP - 4.50% Dividend Rate For 2008
Friday, February 20, 2009
Personally I believe managing finances in a marriage is very much like running a business. Just that, it's a life-long business with 2 main business partners, the husband and the wife. From my readings and observations, there are 3 main different styles of money management in a marriage:
1) The husband is the CFO
This is very common especially in eastern regions. Husbands are regarded as the head of the family and thus automatically carry the CFO title. He brings money home, plans all the spending, investment and makes all financial decisions. This style is usually practised when the husband is the sole bread winner in the family.
2) The wife is the CFO
There are women who are really good at managing finances. Even there are man who brings home money and give all his money to his stay-at-home wife. He also give full authority to his wife to do all financial decisions.
3) Both husband and wife are CFOs
When both husband an wife are working and bringing home money, it's fair that both contribute to the CFO positions. Both must list down all financial related matters (spending plan, loan repayments, investments, savings, insurance, retirement planning, children education funds, etc) and divide their tasks accordingly. Both are given authority on their agreed tasks and are responsible for their tasks. Even better when both agree to discuss before making their financial decisions.
Other than the above, there's another money management style in a marriage, which I find more creative is:
4) Husband and wife take turn to be the CFO
It might sound funny or impossible. But, I think it's creative and fun. Even CFO in a company also has renewal term right? If a partner can't prove that he or she can manage the finances well, it's time to pass the cheque books to the other partner. Perhaps, one might not know aware that he or she is good at managing finances until he or she is given the opportunity. It is good to practise to allow 1 or 2 years or 5 years for each partner to take turn to be the CFO.
So, who's the CFO in your marriage? Be it you or your partner or both of you together, make sure that both of you do not let money become an issue in your marriage.
Wednesday, February 18, 2009
Tuesday, February 17, 2009
Based on the table above, by using Dollar-Cost-Averaging method to spread the investment of RM6k over 6 months (with RM1k invested on 1st day of the month), the total unit accumulate is slightly more than One-Lump-Sum investment of RM6k. Of course there are other factor involved. If the market price keep increasing, then the total unit accumulated will be slightly less. And again, no one can time the market. So, we are trying our best not to miss the opportunity to invest when the unit price is lower.
Monday, February 16, 2009
Saturday, February 14, 2009
Thursday, February 12, 2009
Last Saturday afternoon, another different guy from the same local bank call me again and asking me the same questions and still want me to take up his personal loan idea. When I was about to hang up the call, he asked me whether I wish to use the personal loan to settle my credit card outstanding amount. I told him 'I don't have outstanding with my credit cards. I settle full payment every month'. He seemed a bit surprised and then say goodbye to me.
I am quite annoyed by the officers from the same bank calling me to introduce personal loan. If they wish to introduce other bank products such as insurance, investment or other saving products, I can understand their purposes. But, not for personal loan. It's not wise to encourage someone to take up personal loan. It's just like digging a hole for them, and asking them to put their legs into the hole. They must find ways to get out from the hole, else their whole body might ended up in the hole.
Monday, February 9, 2009
Since there's no formal financial education classes, parents and family play a very important role as a training ground to prepare a child to manage their future financial matter. Perhaps you think that it is hard to have moneytalk with your young kids, but do you know that what you're practicing everyday, indirectly giving them a strong message which directly shape their financial mind?
Thus, I listed below 8 simple practices to cultivate a young saver as below:
1) Bring your kids to the ATM or Bank whenever you do transactions. Share with them the function of banks. Their curiosity nature will result in questions they ask about banking institution. Such as 'Why there're money in the ATM?' Do explain to them in a simple way but
always provide real explanations.
2) Bring them along when you settle your monthly electricity/water/telephone bills. This will show them the monthly commitment they need to prepare when they start their own family or live on their own in the future
3) Give them pocket money or daily/weekly/monthly allowance when they started to know the value of money. The most suitable time is when they started their kindergarten years. Do not give more than enough.
5) Open a saving account for them at local banks. Encourage them to bank-in their savings or cash gifts (angpaos or duit raya) collected during festive season into their saving account. Perhaps can motivate them by adding some interest every time you bank-in the saving for them.
6) Establish short term and long term saving plans for them. Short term saving plan could be buying that computer game. Long term saving could be saving for their tertiary education.
7) Bring your kids and your grocery shopping list along for your weekly shopping. Invite them to write what they need in your grocery shopping list. Teach them to compare prices before do the final purchase.
8) Most importantly, show by example. Do not lavish yourself with an expensive shoe cost RM500 while saying 'NO" to your kid when she requested you to buy her a barbie doll set of RM9.90
Thursday, February 5, 2009
I read an interesting article on MSN and find it worth to share the 9 smart tips which can protect us, the online banking users:
1. When logging on to a bank Web site, a user should look closely at the site's URL to make sure it matches the bank's name. A more secure URL will begin with "https://" and be followed by the bank name. Make sure the bank's padlock is displayed in a corner of the site before you log on.
2. Log on to banks only from a secure computer. Never log on from a public computer in a hotel or cafe, and be careful when logging on to unknown networks with a laptop.
3. If you get a warning e-mail, call your bank -- don't click on any provided links.
4. If your computer is acting strangely -- for instance, reacting slowly or getting pop-ups -- avoid using it for online banking until you can get it checked out.
5. Keep anti-virus and anti-spyware software up to date.
6. Install and maintain a firewall.
7. Never respond to any e-mail that requests personal information.
8. Be leery of fly-by-night, Internet-only banks with high interest rates on savings or checking accounts. Make sure the bank is FDIC-certified and is insured.
9. And, most importantly, use a different user name and password for each financial account. The password should be complex, with numbers and symbols, and changed regularly.
Still, there are no guarantees.
Tuesday, February 3, 2009
Money can be a very sensitive issue. It has proven records in breaking marriage, family and relationship. So, If I feel my lending does not brings any benefit to the borrower, I will just tell him 'Sorry, I don't have extra $$$'. In most cases, the borrow won't dare to question me back and requesting for the second time. If the borrower deserve my lending, then I will pass him the $$$. Deserve meaning he needs the $$$ for emergency and not just simply want to get financial sympathy. If he didn't pay back, then I just consider I donate the $$$ to him.
It's just too hard to remind borrowers especially closed friends and relatives to pay back our $$$.
Do you lend your money to friends and families?
Monday, February 2, 2009
But, unfortunately many of those in credit card debts find it hard to get out. They'll be happy just to settle the minimum payment. Some even try to get more cards and keep swiping their plastic cash. With the current outstanding interest rate of 18% per annum or 1.5% per month, it really take a lot of effort to settle a credit card debt. According to an article by Agensi Kaunseling Dan Pengurusan Kredit (AKPK), for someone with an outstanding balance of RM1,000 and decided to only pay the minimum of 5% or RM50 whichever is greater, the amount of interest charged to his card in the first month is about RM14.25 only. This might not sound a lot but if he continues this payment pattern, it’ll take 2 years for him to fully settle the initial balance of RM1,000. The total interest incurred would amount to about RM173.00. If the outstanding balance is RM10K – it will take more than 7 years to repay and the total interest incurred would come up to RM3,740! The calculation above is with condition where there's no add-on to the present balance. Sound scary isn't it?
It's really not wise to involve credit card debts in your life!
Sunday, February 1, 2009
It's going to be a tough decision for most employers but it's tougher for those affected employees. How are they going to survive without their pay cheques? How about their monthly house or car installment? And the kids? How long can the current saving last? Where to find a new job? It's going to be a hard time for these employees.
And of course these job cuts will directly affect the nationwide economy and world economy as a whole.Without job and income, with controlled and tight spending, there will be less business transactions conducted.with less cash circulating in business market, how can the global economy crisis recover?
Let's pray that these affected employees will find a new job very soon and there will be less job cuts.