Ramadhan menjelma semula. Di harap para pembaca semua sudah siap sedia melalui bulan yang penuh dengan keberkatan ini. Marilah kita sama-sama mempergandakan ibadah kita dalam bulan Ramadhan ini.
Di samping menjalani keseronokan ibadah puasa, mesti masing-masing juga teringin untuk menikmati juadah-juadah menarik ketika berbuka. Dalam bulan ini juga lah, semua menu-menu yang jarang kita jumpa bersedia di depan mata. Harap-harap para pembaca tidak terlalu mengikutkan nafsu dan lebih berhati-hati ketika berbelanja untuk berbuka.
Jika yang berminat untuk sekali-sekala berbuka ala bufet, di sini saya senaraikan restoran-restoran dan hotel yang menawarkan bufet berbuka di Ramadhan tahun ini. Tetapi disebabkan kesuntukan waktu, saya cuma dapat senaraikan di kawasan Johor dahulu. Senarai negeri-negeri lain menyusul kemudian ya.
Monday, 1 August 2011
Sunday, 5 June 2011
Courts - Jual barang atau jual insuran?
Semalam saya sempat mengeteh bersama member saya. Sambil mengeteh, borak-borak kosong dan sentuh juga perihal kewangan. Kemudian member saya buka topik mengenai dia telah pergi ke Courts Nusa Bestari kelmarin untuk membeli barangan isi rumah melalui skim Max Credit ansuran Courts.
Borak-borak yang pada mulanya santai berubah menjadi hangat apabila member saya menceritakan bahawa beliau telah membeli barangan di Courts berjumlah MYR4,200 dan telah dimaklumkan bahawa bayaran ansuran yang dia kena bayar ialah sebanyak MYR240 selama 5 tahun atau 60 bulan. Saya amat terkejut kerana dengan ansuran tersebut dia akan membayar sejumlah MYR14,400. Takkan beli barang MYR4,200 kena bayar sampai MYR14,400. Takkan interest rate di Courts sampai 48% setahun sehingga jumlah interest boleh jadi banyak macam tu. Habis saya bom bermacam soalan pada member saya tapi jawapannya kurang memberangsangkan. Walaupun cuba bersabar, tapi sempat gak sound kat member saya pasal sign agreement tanpa betul-betul faham mengenai cas yang Courts kenakan.
Atas dasar ingin tahu dan juga cuba menyelamatkan poket member saya, saya menerima pelawaan dia untuk ke Courts pada hari ini dan memahami skim ansuran mereka.
Sampai je di Courts, kami disambut oleh promoter yang menguruskan akaun member saya. Dia menunjukkan invois pembelian member saya. Antara nombor-nombor yang masih saya ingat; LG LCD TV 37” berharga MYR1,599 tapi kena tambah “insurans” sebanyak MYR1,199, Mesin basuh semi-auto berharga MYR599 tolak diskaun MYR230 tapi kena tambah “insurans” sebanyak MYR209, beli dining set MYR1,500 tolak diskaun MYR700 tapi kena tambah 3 tahun extended warranty MYR199. Ada beberapa barang lagi yang saya lupa harganya selain dari kos-kos penghantaran MYR89 dan dokumentasi MYR199. Jumlah harga barang sahaja MYR4200, tapi bila ditambah dengan “insurans”, extended warranty dan kos lain, jumlah menjadi MYR8300 dan setelah dikira interest untuk 5 tahun, jumlah semua MYR14,400.
Saya mula mempersoalkan mengenai “insurans” dan extended warranty yang dikenakan. Tapi promoter tu tak dapat beri jawapan yang memuaskan hati. Sampai menggigil tangan rasa marah masa tu. Yelah, mana leh diterima akal beli TV MYR1,600 tapi kena tambah insurans MYR1,200? Nasib baik sebelum saya hilang sabar, datang sorang promoter yang lebih senior dan mengajak saya berbincang di meja (selama ni perbincangan yang mula hot and meletup tu berlaku kat tepi showdesk handphone je sebab promoter tu tak jemput duduk pun). Promoter senior perempuan tu minta maaf sebab promoter tadi masih baru dan mungkin tak dapat jelaskan dengan terang pada member saya masa perjanjian dibuat.
“Insurans” yang dikenakan sebenarnya untuk menyelamatkan Courts. Walaupun setiap barangan elektrik ada waranti syarikat selama setahun, tapi Courts banyak terima komplen dari customer bila barang rosak pada tahun kedua, ketiga dan seterusnya. Biasa la, ansuran sampai 5 tahun, guna barang 3 tahun dah rosak, customer pun komplen la. Barang lum habis bayar tapi dah rosak. Untuk menanggung “kalau-kalau” customer minta waranti selepas setahun, Courts kenakan “insurans” atau “waranti tambahan” untuk menanggung perbelanjaan disebabkan barang rosak. Selepas saya beria-ia cakap taknak “insurans” tu, promoter tu bersetuju untuk menolak semua kos “insurans” dan mengeluarkan surat persetujuan yang kami hanya akan ambil setahun waranti sahaja tanpa waranti tambahan. Maknanya, kalau customer tak tanya atau tak ambil tahu, Courts akan terus menambah “insurans” itu sebagai satu benda wajib.
Perihal 3 tahun extended warranty yang dikenakan pun satu hal. Courts promote giler-giler dalam brochure dorang pasal dorang bagi 3 tahun extended warranty untuk barang-barang dorang. Tapi tak pula bagitau yang 3 tahun extended warranty tu semua akan dikenakan bayaran pada customer. Apa lagi, saya pun suruh dorang tolak 3 tahun extended warranty.
Setelah perbincangan dan menilai semula semua barangan yang member saya beli (ada barangan yang ditukar ke display set untuk dapat harga lebih murah), akhirnya jumlah harga barangan sahaja MYR3,200. Takde tambahan “insurans” dan takde tambahan “extended warranty”. Member saya ambil ansuran untuk 2 tahun, dapat interest rate 1.99% sebulan atau 23.88% setahun (ni pun dah cukup tinggi berbanding skim ansuran lain) dengan jumlah interest perlu bayar MYR1,600 atau MYR205 sebulan. Dari segi kewangan saya masih tak puas hati sebab interest masih agak tinggi tapi terpaksa terima sebab polisi Courts untuk meluluskan ansuran agak longgar.
Apa yang ingin saya tekankan di sini, sebagai customer atau pengguna bijak, kita mengharap kalau beli barang bernilai MYR3,000 contohnya, bayarnya pun MYR3,000 gak. Tapi kalau ansuran, memang takleh lari dari interest tapi perlu lah kita faham berapa interest yang perlu kita tanggung supaya tak membebankan. Selain daripada tu, setiap sen yang ditambah dalam invois, kena periksa, kena tanya, kena persoalkan sebelum tanda tangan. Sayang duit tu kalau tak pasal-pasal kena bayar kat “insurans” atau “waranti” yang tak diperlukan. Kalau betul-betul perlu atau berbaloi untuk bayar, takde masalah. Tapi kalau kita sendiri tak tahu atau tak nak ambil tahu mengenai apa yang kita bayar, agak merugikan. Jadi, sayangi lah duit anda dan berbelanja la dengan bijak dan berpengetahuan.
Borak-borak yang pada mulanya santai berubah menjadi hangat apabila member saya menceritakan bahawa beliau telah membeli barangan di Courts berjumlah MYR4,200 dan telah dimaklumkan bahawa bayaran ansuran yang dia kena bayar ialah sebanyak MYR240 selama 5 tahun atau 60 bulan. Saya amat terkejut kerana dengan ansuran tersebut dia akan membayar sejumlah MYR14,400. Takkan beli barang MYR4,200 kena bayar sampai MYR14,400. Takkan interest rate di Courts sampai 48% setahun sehingga jumlah interest boleh jadi banyak macam tu. Habis saya bom bermacam soalan pada member saya tapi jawapannya kurang memberangsangkan. Walaupun cuba bersabar, tapi sempat gak sound kat member saya pasal sign agreement tanpa betul-betul faham mengenai cas yang Courts kenakan.
Atas dasar ingin tahu dan juga cuba menyelamatkan poket member saya, saya menerima pelawaan dia untuk ke Courts pada hari ini dan memahami skim ansuran mereka.
Sampai je di Courts, kami disambut oleh promoter yang menguruskan akaun member saya. Dia menunjukkan invois pembelian member saya. Antara nombor-nombor yang masih saya ingat; LG LCD TV 37” berharga MYR1,599 tapi kena tambah “insurans” sebanyak MYR1,199, Mesin basuh semi-auto berharga MYR599 tolak diskaun MYR230 tapi kena tambah “insurans” sebanyak MYR209, beli dining set MYR1,500 tolak diskaun MYR700 tapi kena tambah 3 tahun extended warranty MYR199. Ada beberapa barang lagi yang saya lupa harganya selain dari kos-kos penghantaran MYR89 dan dokumentasi MYR199. Jumlah harga barang sahaja MYR4200, tapi bila ditambah dengan “insurans”, extended warranty dan kos lain, jumlah menjadi MYR8300 dan setelah dikira interest untuk 5 tahun, jumlah semua MYR14,400.
Saya mula mempersoalkan mengenai “insurans” dan extended warranty yang dikenakan. Tapi promoter tu tak dapat beri jawapan yang memuaskan hati. Sampai menggigil tangan rasa marah masa tu. Yelah, mana leh diterima akal beli TV MYR1,600 tapi kena tambah insurans MYR1,200? Nasib baik sebelum saya hilang sabar, datang sorang promoter yang lebih senior dan mengajak saya berbincang di meja (selama ni perbincangan yang mula hot and meletup tu berlaku kat tepi showdesk handphone je sebab promoter tu tak jemput duduk pun). Promoter senior perempuan tu minta maaf sebab promoter tadi masih baru dan mungkin tak dapat jelaskan dengan terang pada member saya masa perjanjian dibuat.
“Insurans” yang dikenakan sebenarnya untuk menyelamatkan Courts. Walaupun setiap barangan elektrik ada waranti syarikat selama setahun, tapi Courts banyak terima komplen dari customer bila barang rosak pada tahun kedua, ketiga dan seterusnya. Biasa la, ansuran sampai 5 tahun, guna barang 3 tahun dah rosak, customer pun komplen la. Barang lum habis bayar tapi dah rosak. Untuk menanggung “kalau-kalau” customer minta waranti selepas setahun, Courts kenakan “insurans” atau “waranti tambahan” untuk menanggung perbelanjaan disebabkan barang rosak. Selepas saya beria-ia cakap taknak “insurans” tu, promoter tu bersetuju untuk menolak semua kos “insurans” dan mengeluarkan surat persetujuan yang kami hanya akan ambil setahun waranti sahaja tanpa waranti tambahan. Maknanya, kalau customer tak tanya atau tak ambil tahu, Courts akan terus menambah “insurans” itu sebagai satu benda wajib.
Perihal 3 tahun extended warranty yang dikenakan pun satu hal. Courts promote giler-giler dalam brochure dorang pasal dorang bagi 3 tahun extended warranty untuk barang-barang dorang. Tapi tak pula bagitau yang 3 tahun extended warranty tu semua akan dikenakan bayaran pada customer. Apa lagi, saya pun suruh dorang tolak 3 tahun extended warranty.
Setelah perbincangan dan menilai semula semua barangan yang member saya beli (ada barangan yang ditukar ke display set untuk dapat harga lebih murah), akhirnya jumlah harga barangan sahaja MYR3,200. Takde tambahan “insurans” dan takde tambahan “extended warranty”. Member saya ambil ansuran untuk 2 tahun, dapat interest rate 1.99% sebulan atau 23.88% setahun (ni pun dah cukup tinggi berbanding skim ansuran lain) dengan jumlah interest perlu bayar MYR1,600 atau MYR205 sebulan. Dari segi kewangan saya masih tak puas hati sebab interest masih agak tinggi tapi terpaksa terima sebab polisi Courts untuk meluluskan ansuran agak longgar.
Apa yang ingin saya tekankan di sini, sebagai customer atau pengguna bijak, kita mengharap kalau beli barang bernilai MYR3,000 contohnya, bayarnya pun MYR3,000 gak. Tapi kalau ansuran, memang takleh lari dari interest tapi perlu lah kita faham berapa interest yang perlu kita tanggung supaya tak membebankan. Selain daripada tu, setiap sen yang ditambah dalam invois, kena periksa, kena tanya, kena persoalkan sebelum tanda tangan. Sayang duit tu kalau tak pasal-pasal kena bayar kat “insurans” atau “waranti” yang tak diperlukan. Kalau betul-betul perlu atau berbaloi untuk bayar, takde masalah. Tapi kalau kita sendiri tak tahu atau tak nak ambil tahu mengenai apa yang kita bayar, agak merugikan. Jadi, sayangi lah duit anda dan berbelanja la dengan bijak dan berpengetahuan.
Wednesday, 27 April 2011
Casual Working Attire
We are nearing hot season here in Malaysia. Personally I just prefer to take off my shirt and just go bare under the humid hot wind. However, I considered myself lucky to work in my workplace which have casual dress code which allowed me to flaunt my not-so-expensive casual wear at work.
I prefer to wear round neck t-shirt to work or collared t-shirt. It gave me the sense of informality even though I am going through a hectic work time. Cotton is mostly the fabric that I wore, but sometimes a mixture of spandex or modal would also be breezy in the summer weather. Microfiber is my favorite but I would seldom use such material at work since it is kinda very sexy for the sight.
Here in Malaysia, it is a typical sight to have a very hot day in the morning, then pouring rainy evening. For those not-so-hot weather, packing a thin cotton jacket is also can be comfortable.
For today, I am packing myself in a collared turquoise t-shirt tuck into dark blue washed denim jeans. Buckled with dark Levi’s belt paired with dark brown off-road boots. The boots might not be the perfect choice but since I just love boots, no harm in mix and match, right.
Here some model shoot of casual attire that I think looks very smart on average guy like me.
I prefer to wear round neck t-shirt to work or collared t-shirt. It gave me the sense of informality even though I am going through a hectic work time. Cotton is mostly the fabric that I wore, but sometimes a mixture of spandex or modal would also be breezy in the summer weather. Microfiber is my favorite but I would seldom use such material at work since it is kinda very sexy for the sight.
Here in Malaysia, it is a typical sight to have a very hot day in the morning, then pouring rainy evening. For those not-so-hot weather, packing a thin cotton jacket is also can be comfortable.
For today, I am packing myself in a collared turquoise t-shirt tuck into dark blue washed denim jeans. Buckled with dark Levi’s belt paired with dark brown off-road boots. The boots might not be the perfect choice but since I just love boots, no harm in mix and match, right.
Here some model shoot of casual attire that I think looks very smart on average guy like me.
Tuesday, 26 April 2011
Make over
I am in the middle of making over Money Matter website and renaming it Men In Focus. This blog will diversify the content by covering any topics (not just financial) that I experience through out my life. Focusing on men, there will be post for Financial, Fashion, Gadget, Lifestyle, Travel and etc. Hope my fellow financial reader will continue to extend your support here.
Saturday, 6 November 2010
Player vs Spectator
It was a hot Saturday afternoon. Rains just stop pouring since the last 1 hour and the heat from the ground is uncomfortably stuffy. I was hiding from the sun in the air condition of Plaza Angsana in Johor Bahru accompanied by some friends. We were there to extend our support to our friends who join the duet singing contest there.
I saw the look of my friends. Mizi, the ever confident alpha male look amazingly stylist and ready to rock the stage. Ejoy, his duo, look pale and can hardly catch his breath. This is his first time on stage and nervousness gets the best of him. I was trying to lift his motivation up by giving some comforting words. A few minutes later, there it were, the chairperson called up their name. It is their time to perform.
While watching my friend getting ready on stage, I looked around. Not very crowded today, but some shoppers do tend to stop by to watch the competition. Some have an empty gaze, no emotion attached to the event at all. Some look cheerful and cannot wait to hear the melodious song the contestant about to perform. Some show disgust look as if the one on stage are not suppose to be there, maybe they felt they can do better on stage. A handful just leering with a judgmental look, complaining every single moves on stage through their look.
My friends started to sing. Some note is perfectly delivered. Some tend to be pitchy due to the nervous feeling. Some words skipped in the verse. But mostly a great performance. The crowd clapped, once they finished their performance. My friends got down from the stage, feeling relieve. We relaxed ourselves, calm down, feeling satisfied with the almost perfect performance and later, were welcomed by a great news that my friends successfully proceed to the next round of the competition.
Maybe such event is something that we all experienced in our life. Our life packed with activities that caught our breath, butterfly in our stomach, nervous, worried of being judge, worried of making mistake in public. These agonizing feeling of being judge by others and feeling embarrassed tend to make most of us to take the simplest step, which is to run for it.
A lot of the crowd prefer to be spectator. We like to judge those at the center stage, we like to comment every single thing up to their choice of shoe color. We think they wear their hair wrongly, we thing that is not their best choice of cloths, we think they talk or sing wrongly. But yet, no matter how much we love to complain, we do not want to take up the center stage ourselves. We like to watch and comment, but we do not want to be the player.
It takes courage, strength, skill, hard work, sacrifice and a lot of embarrassing moment, to be a great player. It takes a lot for someone to stand on the stage to sing in a competition. It takes courage for someone to stand in front of the crowd and talks. I takes strength to do what you believe is right while others are giving your bad judgments, bad advice and telling you that you are wasting your time. Because of this, there are not many players out there but there are millions of spectators.
To change our lives and achieve a steady financial life, it is just the same. Are you a player that willing to do what others not willing to do, so that you can achieve financial freedom? Or are you a spectator who do not want to take risk, but like to sit and watch while other climb their success ladder? Ask yourself this question because only you know the answer. Are you a player or are you a spectator? Are you willing to give yourself chance to success, or you like to watch other people make the first move?
For those player out there, let’s move now. Let’s build our success story now. Let’s act now and let the spectator just be a spectator. If you want to be a player, go to QuestNet and see if you are my kind of player.
I saw the look of my friends. Mizi, the ever confident alpha male look amazingly stylist and ready to rock the stage. Ejoy, his duo, look pale and can hardly catch his breath. This is his first time on stage and nervousness gets the best of him. I was trying to lift his motivation up by giving some comforting words. A few minutes later, there it were, the chairperson called up their name. It is their time to perform.
While watching my friend getting ready on stage, I looked around. Not very crowded today, but some shoppers do tend to stop by to watch the competition. Some have an empty gaze, no emotion attached to the event at all. Some look cheerful and cannot wait to hear the melodious song the contestant about to perform. Some show disgust look as if the one on stage are not suppose to be there, maybe they felt they can do better on stage. A handful just leering with a judgmental look, complaining every single moves on stage through their look.
My friends started to sing. Some note is perfectly delivered. Some tend to be pitchy due to the nervous feeling. Some words skipped in the verse. But mostly a great performance. The crowd clapped, once they finished their performance. My friends got down from the stage, feeling relieve. We relaxed ourselves, calm down, feeling satisfied with the almost perfect performance and later, were welcomed by a great news that my friends successfully proceed to the next round of the competition.
Maybe such event is something that we all experienced in our life. Our life packed with activities that caught our breath, butterfly in our stomach, nervous, worried of being judge, worried of making mistake in public. These agonizing feeling of being judge by others and feeling embarrassed tend to make most of us to take the simplest step, which is to run for it.
A lot of the crowd prefer to be spectator. We like to judge those at the center stage, we like to comment every single thing up to their choice of shoe color. We think they wear their hair wrongly, we thing that is not their best choice of cloths, we think they talk or sing wrongly. But yet, no matter how much we love to complain, we do not want to take up the center stage ourselves. We like to watch and comment, but we do not want to be the player.
It takes courage, strength, skill, hard work, sacrifice and a lot of embarrassing moment, to be a great player. It takes a lot for someone to stand on the stage to sing in a competition. It takes courage for someone to stand in front of the crowd and talks. I takes strength to do what you believe is right while others are giving your bad judgments, bad advice and telling you that you are wasting your time. Because of this, there are not many players out there but there are millions of spectators.
To change our lives and achieve a steady financial life, it is just the same. Are you a player that willing to do what others not willing to do, so that you can achieve financial freedom? Or are you a spectator who do not want to take risk, but like to sit and watch while other climb their success ladder? Ask yourself this question because only you know the answer. Are you a player or are you a spectator? Are you willing to give yourself chance to success, or you like to watch other people make the first move?
For those player out there, let’s move now. Let’s build our success story now. Let’s act now and let the spectator just be a spectator. If you want to be a player, go to QuestNet and see if you are my kind of player.
Friday, 29 October 2010
Bijak Wang Bersama QuestNet
Lama dah rasanya tak buat post dalam bahasa ibunda. Jadi, saya ambil kesempatan untuk update post mengenai satu perkembangan drastik dalam hidup saya yang sememangnya tak tersangka.
Mungkin para pembaca ada melihat post sebelum ni di mana saya kupas pasal Asset, Income, Expense dan Liability. Baru-baru ini, saya mengambil keputusan untuk mengambil peluang meluaskan Aset saya dengan menceburi satu peluang perniagaan dengan harapan dapat memperkukuhkan Passive Income saya.
Bukan niat nak mempromote business lak kat sini, tapi kalau ada yang berminat nak usha, tengok la kat http://mkamal.qnstore.com.my/Home.aspx atau http://www.qnet.net.my.
Just nak share sedikit pengalaman kenapa peluang perniagaan ni tetiba menarik minat untuk join, sedangkan kebiasaannya, nak buat keputusan saya fikir berpuluh kali dulu.
Antara perkara yang benar-benar menarik minat:
1) Company QuestNet bercabang dari company Qi yang dah ada dalam market sejak 1998. Jadi asas company kuat, satu prospek yang bagus untuk join company yang kuat macam Qi.
2) Company Qi terlibat dalam banyak cabang perniagaan and QuestNet hanya salah satu cabang je. Jadi support dari Qi untuk QuestNet kuat dari segi turnover and revenuenya.
3) Business tools dan pengalaman dari orang-orang atas juga banyak diajar kepada saya. Jadi banyak benda boleh belajar dari company ni.
4) Modal join cuma bayar sekali seumur hidup. Hasil usaha pula boleh diwariskan kalau-kalau apa-apa jadi kat kita. Satu sistem yang paling menarik berbanding perniagaan-perniagaan yang pernah saya ceburi sebelum ni.
5) Modal pula dalam bentuk pembelian BioDisc, barang kesihatan yang amat versatile dan value for money. Jadi, business jalan atau tak, BioDisc tu je dah cukup untuk buat balik modal.
6) Support dari orang atas terutamanya dari team Dreamz Evolution (DeVo) dah macam support ahli keluarga. Pertalian persahabatan dan kekeluargaan yang kuat. Team DeVo datang buat presentation dekat sini (Johor Bahru) setiap minggu. Jadi boleh jumpa semua ahli kumpulan, sambil bawa prospek datang. Team DeVo akan support untuk memberi penerangan lengkap kepada prospek.
7) Presentation dari Tean DeVo terutamanya dari Ustaz Harif teramat menarik. Walaupun saya ada banyak pengalaman buat presentation, presentation Ustaz Harif banyak teknik-teknik yang sebelum ni langsung tak terfikir nak cuba. Terima kasih banyak pada Ustaz.
Bila mula-mula join perniagaan macam ni, memang perasaan berkobar-kobar. Tapi pengalaman dari perniagaan yang lain, lama-lama perasaan tu merundum dan mula rasa malas nak jalankan lagi. Tapi sebab perniagaan QuestNet ni mampu berjalan sendiri kalau kita start bagus, jadi rasanya penting untuk saya usaha lebih bagi menggerakkan asas yang kuat dan tak mudah beralah.
Minggu lepas, bawa seorang prospek ke seminar dan Alhamdulillah dia teringin nak join. Nampaknya teknik-teknik QuestNet dan Team DeVo memang benar-benar mudah hingga menarik minat orang untuk join.
Sunday, 19 September 2010
My success story on credit card debt elimination by Jason Holmes
Leading a lavish life has its rewards; however, it also has a price that I had to pay. I had spent without considering how I would pay back, and this lead to a huge amount of debt that I could not pay off. By the time I had realized that I was in a disastrous situation, I had already accumulated $60,000 of credit card debt on 5 cards that I had to pay off. I finally made up my mind that I had to do something about my financial situation, if I was ever to live life with respect again. I strongly believed that there must be some debt solutions that would bring me out of this problem. I want to share a few things that I did to get rid of my credit card debt that you may find beneficial, in case you are in a similar situation.
This guest post is written by Jason Holmes. He is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt consolidation and debt industry, with his e-books he tries to impart to people the different situations and simple debt solutions to get out of difficult situations. Some of his works include e-books like 'Credit Score The Quintessential Therapy for a Happy Pocket', Take Creditors and Collection Agencies to Small Claims Court' and, My Story- From Depression To a Smile'.
- Formulated a budget: I used a couple of free online budgeting tools that helped me plan a budget for myself. This gave me a fair idea of my income and expenditure. I realized that I was earning enough to afford a decent living but not enough to pay off my debts or indulge in any luxury products. So I had to adjust my spending habits accordingly.
- Cut down expenses: After I had planned the budget and then studied it, I realized that I had to cut down on my food expenses. That is where the majority of my income was going. This was because I loved to eat out at fancy restaurants. What I did not realize was that, this was leading to an excessive amount being spent on food when I had no real requirement of that expenditure. So I restricted myself from eating out and switched to good home cooked food.
- Considered additional income options: It was impossible to manage the outstanding amount I was to pay with my fixed salary. So I considered various income options that I could opt for. I finally decided that online money making would be most convenient as I could work at my own convenience, whenever I got time from my hectic job. I looked for various options and finally decided to opt for writing e-books. This was a very comfortable option for me, as I was into writing from a very young age. The profit margin was also huge and helped me pay a huge part of my debt.
- Decided to settle my debts: I wanted to pay off my loans as quickly as I could. Debt consolidation was not a debt solution that I could consider. This is because my financial situation would not let me pay off the debt completely. Thus, I had to opt for debt settlement. I was lucky that my creditors reduced my debt by 44%. The reduced amount came to $35,400. I had to pay this much instead of $60,000, to settle my debts completely. Whatever excess cash I had or earned went into paying the debt and in about 2 years I was completely debt free.
This guest post is written by Jason Holmes. He is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt consolidation and debt industry, with his e-books he tries to impart to people the different situations and simple debt solutions to get out of difficult situations. Some of his works include e-books like 'Credit Score The Quintessential Therapy for a Happy Pocket', Take Creditors and Collection Agencies to Small Claims Court' and, My Story- From Depression To a Smile'.
Sunday, 12 September 2010
The possible debt reduction strategies
Debt plague our money and cash flow, unnecessary draining our hard earn money to pay bank's charges and interest. It is vital to reduce our debt immediately because the bigger the amount that we owe bank, the bigger the charges are.
Recently, one of my friend Ms Dorothy wrote an article that she share with me on her technical method of an effective ways to reduce your debt. I am keen to share them with my reader, hope you able to make the best of these tips like I do.
Everyone ought to strive for getting out of debt. Many hard working individuals get into debt and from time to time debts can become a burden. It can also result in significant financial hardship. There are numbers or ways to reduce your debt, but as everyone’s circumstances are different so there is no such thing as the best debt reduction strategy.
6 ways to reduce your debt.
Once you begin your debt reduction strategy, you will start to see success. The good habits that you will develop should be kept in check so that you don’t again slip back into debt.
Recently, one of my friend Ms Dorothy wrote an article that she share with me on her technical method of an effective ways to reduce your debt. I am keen to share them with my reader, hope you able to make the best of these tips like I do.
Everyone ought to strive for getting out of debt. Many hard working individuals get into debt and from time to time debts can become a burden. It can also result in significant financial hardship. There are numbers or ways to reduce your debt, but as everyone’s circumstances are different so there is no such thing as the best debt reduction strategy.
6 ways to reduce your debt.
- Pay higher than minimum payments: If possible, you should always try to pay more than the minimum payment, or it could take you forever to pay off your debt. When you pay more than the minimum, it really does add up to pay your outstanding balance off a lot faster.
- Debt avalanche: By debt avalanche method, you pay off the loan with the highest interest rate, which will result in quicker debt reduction. Once the debt is paid off, move to the next highest rate and continue down the list, until your debts are totally eliminated.
- Snow ball method: In this method, reorder your debts from smallest to largest. Then make minimum payment on all the debts except the smallest one. When the smallest debt is paid off, you roll the amount you were paying for the smallest debt into the payment on the next smallest.
- Increase your earnings: Earn more money to pay extra on your bills. This will make you to pay off your debts faster and thus reduce your debts.
- Credit card balance transfer: By transferring your outstanding balance from the higher interest rate credit card to low interest rate credit card will speed up the debt reduction process.
- Develop a budget: Try to develop a budget that will record all your incomes and expenses. Once your budget is developed, you will be able to make rational and well informed decisions. Then you can plan about how to pay the credit card companies every month. In this way, you can reduce your debts quickly.
Once you begin your debt reduction strategy, you will start to see success. The good habits that you will develop should be kept in check so that you don’t again slip back into debt.
Monday, 6 September 2010
Asset Income Expense Liability Unearthed
My work had kept me quite busy for the pass few months. Luckily, through this hectic working time, my financial is the least of my worry. Yeah, festive season is coming, Hari Raya is just next week. How is preparation so far?
My baju raya, already purchased. As usual, with ridiculously great deal. Got one set of clothes only at RM29.90. My mother was shock to know that I get it with such low price. Furthermore, I never even sacrifice quality, since the clothes that I bought is red hot in color (my family theme color for this year) and made from satin (I wonder when they will make baju kurung in microfiber since I love that material, hehe).
How about duit raya? Already kept aside and even completely arrange them into each packet, ready to be distributed. The whole budget for duit raya did not even disturbed my monthly budget since unexpectedly I got salary increase last month which give me a boost in my budget.
Talking about the salary increased, although unexpected, it was well appreciated. But it does not even slightly make me feel like I need to upgrade my lifestyle or spending. However, it helps to increase my monthly savings to 20% of my salary. Up to this month, my ASB account (the investment account where I dumped most of my savings), had reached more than RM20,000. Such a satisfying feeling to see that my 5 digit savings kept of increasing every month.
Recently, I read a couple of financial book. Both of the material touch-base on the 4 quadrant of basic cashflow. I felt the urge to share them with you.
The four quadrants is Income, Asset, Expense and Liability. Let me try to explain them in my own words.
Income
This is basically the money that you get or generated through your salary or business. The materials I read did not mention about money from loans or credit cards. But for me, that money also consider as your income which however will also affect the other quadrant which I will mention later. It is utterly crucial to have a positive income somehow. Income is the one that trigger your cash flow. I do not know why we need to discuss about money flow is you did not have income at all. :)
Expense
Where ever, whenever you spend your money, that is cashflow under expense. Your daily spending, monthly spending, bills payment, credit card and loan payment are all under expense quadrant. It is the negative side of Income quadrant. However, it is very visible and can easily be one of the target areas if you are looking for ways to tame you financial habit. Handle you expense carefully and you will enjoy better cashflow.
These 2 quadrants, Income and Expense, are easy to understand. Everyone should understand where their money come from and where did it spend off too. Because of its visibility, these 2 quadrants are mostly the areas that people look at when they are trying to cut corner monthly to make their expense well fit into their income, or is it vice versa? Hehe.
The next 2 quadrants however, are those that people tend to forget. But, the next 2 quadrants was actually what determine the consistency of a healthy financial status. The rich people look at it often. The rich care for it passionately. But sadly, these 2 quadrants are those that average people like us always do not care much.
Liability
Liability means Debt. Personal loans, credit cards, hire purchase, overdraft, home financing, ASB financing and even borrowing money from family or friends are all consider liabilities. Simply said, just open up your favorite bank website and 80% of their service offered is a liability to you. If you take up a purchase which will require you to pay back in future, clearly that is a liability. A non-mortgage or non-collateral loans are the worst one since you will not get any money back in return. A mortgage loan such as home financing and collateral loans such as overdraft over fixed deposit or ASB/Unit trust certificate might be useful in intelligent hand to turn it into profit. However personal loans, hire purchase and credit cards will drain your money.
Worst thing, liability is almost transparent. For example, purchased a car at RM60,000. Get 7 years hire purchase at 4% interest rate per annum. By the time the loan has been fully settled, you will already paid the bank RM76,800 which RM16,800 for the interest. Furthermore, by that 7 years period, your car will drop its value to RM25,000. Even if you manage to sell the car at its current market price, you will still lost about RM50,000 which about RM7,000 per year since you purchase the car. That RM7,000 per year money is consider as if you are renting the car for the next 7 years. Not that it is a total lost, but it is something that we should be considering if that money lost is creating value for the service the car rendered throughout the loan period. I was wondering, did we make this calculation every time we are buying cars? Personally I do not, and I felt such a downer.
How about other liabilities? Taking personal loans RM5,000 with 5 years tenure at 9% interest rate for example. As soon as the loan approved, the RM2,250 interest will directly charge to the loan account. How about credit cards? Imagine that you have RM5,000 credit limit, which you use RM500 monthly but only paid 5% minimum payment every month. Do you know that by 12 months, the credit card will be over limit? By that time, you already paid RM450 interest and now you have RM5,000 debt need to be paid. Even if you stop using the card that time and continue to pay 5% minimum, it will takes you another 6 years to fully settle the credit card debt and by that time, you already paid the bank RM2,550 of interest. Do you see why I said that liability is transparent?
Liability quadrant is pack with purchases or commitments that we take and service for long period of time. By that period, we will be paying a lot of money for bank charges and interest. It is a hassle to calculate every single cent of money lost throughout the commitment period and that is the reason people just do not look at it, or we close one eye to it. Thinking that the monthly payment is manageable and low, we failed to see the bigger picture. We fail to see how much our hard earn money lost for nothing just to take the service of paying in monthly basis. Furthermore, since each commitment seems to only require a small amount of money to pay every month, we kept on taking new commitments, thinking that we can afford them. By the time we realize that 70% of our income vanished just to pay the monthly commitment, only then we realize that we are stuck. Worst thing about liability, by the time we admit that it is hard to pay all the loans monthly payment, we have another 5 years or more to survive monthly to finish off the loans. If our money short in 1 month to pay the monthly debt, do you think you can survive for the next 60 months or more?
Liability is the killer and average people just do not see it. So sad. Hope that we can open up our eyes bigger and look at the full picture and just STOP making new liability and START handling the current ones.
Asset
Now this is a secret why rich people get richer. This is the magical quadrant that answers questions we average people normally ask such as, “How could rich people can afford 2 three-storey bungalows?”, “How could rich people own 3 BMWs or 3 Volvo or afford to buy a Ferrari?” or “I made RM4,000 per month but I have to work 6 days per week. I wonder how much time rich people have to work to afford their lavishing lifestyle”. The answer is Asset. Asset is something that generates money for you. If you have to work to generate money, then that is Income. If you do not have to work but keep getting money, then that source of Income is your Asset.
Example of Assets are house that you rent to others, book that you write and sell through publisher, investment that give you return every year, music or album that you write or sing and now selling hot on air, internet business with amazing hits on its site that it is almost auto-pilot or even MLM (multi-level marketing) that so successful and you do not have to work but your downline is generating profit for you.
For me, my asset so far is my investment. Current focusing on ASB (Amanah Saham Bumiputera) and portion of my money (well budgeted with its risk) also put into Unit Trust with CIMB bank. Current state, I have RM20,000 in ASB. By end of this year, hopefully, it will generate 7% dividend, giving me RM1,400. Even if I stop putting more money into ASB, every year (considering having 7% dividend), the investment will give me RM1,400 without I have to do a single work on it. Imagine if you maxed out the ASB limit of investment to RM200,000. Without doing anything, it will paid you RM14,000 per year or about RM1,200 per month. If you do not take out the capital investment of RM200,000, you will continue to get RM1,200 per month dividend without doing any work as long as the investment continue to make profit. What if you did not spend the RM14,000 but instead you dump it into other investment such as ASW (Amanah Saham Wawasan), then that investment will generate more income for you. That is why I set my long term goal of having RM800,000 in this low risk investment. Even at 6% dividend per year, that RM800,000 will paid me RM48,000 per year or RM4,000 per month. RM4,000 per month is almost my current salary but best thing is that I do not have to do anything to get it. When I reached that goal, then it is time for my retirement.
Rich people do not directly spend their income to expense or worst, liability. Instead, they pay themselves by investing it to increase their asset. Once their asset profitable and generate new income for them, then they improve their lifestyle using the income from their asset.
A carefully manage asset will not lost your capital. Due to this, the asset will continue to give you capital gain which in turn gives you more income. If your spending is controlled only to the profit instead of the capital, then that capital will continue to generate your income without having you to do work. If you continue to use that income to grow your asset, then your income will also increased. Like I said, rich people get richer. And it is all about PAYING YOURSELF FIRST.
If this is a bit confusing, let me give a basic guideline through some simple formulas.
Example that you got RM3,000 monthly for your income:
Which means you need to put aside RM300 every month to increase your asset, for example, on investment.
Means that your monthly spending or payment must NOT exceed RM2,700. This also means that monthly, your RM300 must be put off to ASSET first before you even start to spend the RM2,700 for other commitment.
This RM540 is the only safe portion of your salary that you can spend for liabilities such as home financing or hire purchase or loans. Do you notice how small that portion is? This is because the risk is long term since you might have to commit to 7 years for example on hire purchase. So, this long tenure commitment must be manageably low.
Example that your ASSET grew, and end of the year it paid up RM1,200 or RM100 per month.
With this new RM3,100 income, check out the latest cashflow:
See what happen when the profit from the Asset boost your income? Now:
If this healthly cashflow were properly maintain, that is how rich people will be able to spend more or own a bigger car or house. They simply, but safely, can afford all of them because they continue to get a big amount of Income through their growing Asset.
I do not see why we do not want to do this. It is okay to start from small even if you income is small. You will see how much advantage it is once your asset pays off and give you boost in your lifestyle. Do not be too quick on increasing Expense or Liability. Just hold it off first until you really can afford it in future. Give it a try. I have tried it and I know I will be having an amazing lavishing Hari Raya this year without even spending more than what I can afford. Hope you will have a great Hari Raya too this year and hope you will manage the spending well for this festive season.
Selamat Hari Raya and Maaf Zahir dan Batin. Happy holiday everybody!
My baju raya, already purchased. As usual, with ridiculously great deal. Got one set of clothes only at RM29.90. My mother was shock to know that I get it with such low price. Furthermore, I never even sacrifice quality, since the clothes that I bought is red hot in color (my family theme color for this year) and made from satin (I wonder when they will make baju kurung in microfiber since I love that material, hehe).
How about duit raya? Already kept aside and even completely arrange them into each packet, ready to be distributed. The whole budget for duit raya did not even disturbed my monthly budget since unexpectedly I got salary increase last month which give me a boost in my budget.
Talking about the salary increased, although unexpected, it was well appreciated. But it does not even slightly make me feel like I need to upgrade my lifestyle or spending. However, it helps to increase my monthly savings to 20% of my salary. Up to this month, my ASB account (the investment account where I dumped most of my savings), had reached more than RM20,000. Such a satisfying feeling to see that my 5 digit savings kept of increasing every month.
Recently, I read a couple of financial book. Both of the material touch-base on the 4 quadrant of basic cashflow. I felt the urge to share them with you.
The four quadrants is Income, Asset, Expense and Liability. Let me try to explain them in my own words.
Income
This is basically the money that you get or generated through your salary or business. The materials I read did not mention about money from loans or credit cards. But for me, that money also consider as your income which however will also affect the other quadrant which I will mention later. It is utterly crucial to have a positive income somehow. Income is the one that trigger your cash flow. I do not know why we need to discuss about money flow is you did not have income at all. :)
Expense
Where ever, whenever you spend your money, that is cashflow under expense. Your daily spending, monthly spending, bills payment, credit card and loan payment are all under expense quadrant. It is the negative side of Income quadrant. However, it is very visible and can easily be one of the target areas if you are looking for ways to tame you financial habit. Handle you expense carefully and you will enjoy better cashflow.
These 2 quadrants, Income and Expense, are easy to understand. Everyone should understand where their money come from and where did it spend off too. Because of its visibility, these 2 quadrants are mostly the areas that people look at when they are trying to cut corner monthly to make their expense well fit into their income, or is it vice versa? Hehe.
The next 2 quadrants however, are those that people tend to forget. But, the next 2 quadrants was actually what determine the consistency of a healthy financial status. The rich people look at it often. The rich care for it passionately. But sadly, these 2 quadrants are those that average people like us always do not care much.
Liability
Liability means Debt. Personal loans, credit cards, hire purchase, overdraft, home financing, ASB financing and even borrowing money from family or friends are all consider liabilities. Simply said, just open up your favorite bank website and 80% of their service offered is a liability to you. If you take up a purchase which will require you to pay back in future, clearly that is a liability. A non-mortgage or non-collateral loans are the worst one since you will not get any money back in return. A mortgage loan such as home financing and collateral loans such as overdraft over fixed deposit or ASB/Unit trust certificate might be useful in intelligent hand to turn it into profit. However personal loans, hire purchase and credit cards will drain your money.
Worst thing, liability is almost transparent. For example, purchased a car at RM60,000. Get 7 years hire purchase at 4% interest rate per annum. By the time the loan has been fully settled, you will already paid the bank RM76,800 which RM16,800 for the interest. Furthermore, by that 7 years period, your car will drop its value to RM25,000. Even if you manage to sell the car at its current market price, you will still lost about RM50,000 which about RM7,000 per year since you purchase the car. That RM7,000 per year money is consider as if you are renting the car for the next 7 years. Not that it is a total lost, but it is something that we should be considering if that money lost is creating value for the service the car rendered throughout the loan period. I was wondering, did we make this calculation every time we are buying cars? Personally I do not, and I felt such a downer.
How about other liabilities? Taking personal loans RM5,000 with 5 years tenure at 9% interest rate for example. As soon as the loan approved, the RM2,250 interest will directly charge to the loan account. How about credit cards? Imagine that you have RM5,000 credit limit, which you use RM500 monthly but only paid 5% minimum payment every month. Do you know that by 12 months, the credit card will be over limit? By that time, you already paid RM450 interest and now you have RM5,000 debt need to be paid. Even if you stop using the card that time and continue to pay 5% minimum, it will takes you another 6 years to fully settle the credit card debt and by that time, you already paid the bank RM2,550 of interest. Do you see why I said that liability is transparent?
Liability quadrant is pack with purchases or commitments that we take and service for long period of time. By that period, we will be paying a lot of money for bank charges and interest. It is a hassle to calculate every single cent of money lost throughout the commitment period and that is the reason people just do not look at it, or we close one eye to it. Thinking that the monthly payment is manageable and low, we failed to see the bigger picture. We fail to see how much our hard earn money lost for nothing just to take the service of paying in monthly basis. Furthermore, since each commitment seems to only require a small amount of money to pay every month, we kept on taking new commitments, thinking that we can afford them. By the time we realize that 70% of our income vanished just to pay the monthly commitment, only then we realize that we are stuck. Worst thing about liability, by the time we admit that it is hard to pay all the loans monthly payment, we have another 5 years or more to survive monthly to finish off the loans. If our money short in 1 month to pay the monthly debt, do you think you can survive for the next 60 months or more?
Liability is the killer and average people just do not see it. So sad. Hope that we can open up our eyes bigger and look at the full picture and just STOP making new liability and START handling the current ones.
Asset
Now this is a secret why rich people get richer. This is the magical quadrant that answers questions we average people normally ask such as, “How could rich people can afford 2 three-storey bungalows?”, “How could rich people own 3 BMWs or 3 Volvo or afford to buy a Ferrari?” or “I made RM4,000 per month but I have to work 6 days per week. I wonder how much time rich people have to work to afford their lavishing lifestyle”. The answer is Asset. Asset is something that generates money for you. If you have to work to generate money, then that is Income. If you do not have to work but keep getting money, then that source of Income is your Asset.
Example of Assets are house that you rent to others, book that you write and sell through publisher, investment that give you return every year, music or album that you write or sing and now selling hot on air, internet business with amazing hits on its site that it is almost auto-pilot or even MLM (multi-level marketing) that so successful and you do not have to work but your downline is generating profit for you.
For me, my asset so far is my investment. Current focusing on ASB (Amanah Saham Bumiputera) and portion of my money (well budgeted with its risk) also put into Unit Trust with CIMB bank. Current state, I have RM20,000 in ASB. By end of this year, hopefully, it will generate 7% dividend, giving me RM1,400. Even if I stop putting more money into ASB, every year (considering having 7% dividend), the investment will give me RM1,400 without I have to do a single work on it. Imagine if you maxed out the ASB limit of investment to RM200,000. Without doing anything, it will paid you RM14,000 per year or about RM1,200 per month. If you do not take out the capital investment of RM200,000, you will continue to get RM1,200 per month dividend without doing any work as long as the investment continue to make profit. What if you did not spend the RM14,000 but instead you dump it into other investment such as ASW (Amanah Saham Wawasan), then that investment will generate more income for you. That is why I set my long term goal of having RM800,000 in this low risk investment. Even at 6% dividend per year, that RM800,000 will paid me RM48,000 per year or RM4,000 per month. RM4,000 per month is almost my current salary but best thing is that I do not have to do anything to get it. When I reached that goal, then it is time for my retirement.
Rich people do not directly spend their income to expense or worst, liability. Instead, they pay themselves by investing it to increase their asset. Once their asset profitable and generate new income for them, then they improve their lifestyle using the income from their asset.
A carefully manage asset will not lost your capital. Due to this, the asset will continue to give you capital gain which in turn gives you more income. If your spending is controlled only to the profit instead of the capital, then that capital will continue to generate your income without having you to do work. If you continue to use that income to grow your asset, then your income will also increased. Like I said, rich people get richer. And it is all about PAYING YOURSELF FIRST.
If this is a bit confusing, let me give a basic guideline through some simple formulas.
ASSET increment = 10% of INCOME
EXPENSE monthly = 90% of INCOME
LIABILITY = 20% of your EXPENSE
Increment to INCOME = Profit from ASSET
Example that you got RM3,000 monthly for your income:
ASSET increment = 10% of INCOME
ASSET increment = 10% of RM3,000
ASSET increment = RM300
Which means you need to put aside RM300 every month to increase your asset, for example, on investment.
EXPENSE monthly = 90% of INCOME
EXPENSE monthly = 90% of RM3,000
EXPENSE monthly = RM2,700
Means that your monthly spending or payment must NOT exceed RM2,700. This also means that monthly, your RM300 must be put off to ASSET first before you even start to spend the RM2,700 for other commitment.
LIABILITY = 20% of your EXPENSE
LIABILITY = 20% of RM2,700
LIABILITY = RM540
This RM540 is the only safe portion of your salary that you can spend for liabilities such as home financing or hire purchase or loans. Do you notice how small that portion is? This is because the risk is long term since you might have to commit to 7 years for example on hire purchase. So, this long tenure commitment must be manageably low.
Example that your ASSET grew, and end of the year it paid up RM1,200 or RM100 per month.
Increment to INCOME = Profit from ASSET
Increment to INCOME = RM100
New INCOME = Current INCOME + Profit from ASSET
New INCOME = RM3,000 + RM100
New INCOME = RM3,100
With this new RM3,100 income, check out the latest cashflow:
ASSET increment = RM310
EXPENSE monthly = RM2,790
LIABILITY = RM558
See what happen when the profit from the Asset boost your income? Now:
- You have more money to speed up your Asset growth which in turn will bring more income growth.
- You have more money for Expense but still within your safe border in spending. This means you can safely upgrade your lifestyle.
- You increase your portion for a safe LIABILITY which means you can afford bigger car or bigger house but within a safe budget.
If this healthly cashflow were properly maintain, that is how rich people will be able to spend more or own a bigger car or house. They simply, but safely, can afford all of them because they continue to get a big amount of Income through their growing Asset.
I do not see why we do not want to do this. It is okay to start from small even if you income is small. You will see how much advantage it is once your asset pays off and give you boost in your lifestyle. Do not be too quick on increasing Expense or Liability. Just hold it off first until you really can afford it in future. Give it a try. I have tried it and I know I will be having an amazing lavishing Hari Raya this year without even spending more than what I can afford. Hope you will have a great Hari Raya too this year and hope you will manage the spending well for this festive season.
Selamat Hari Raya and Maaf Zahir dan Batin. Happy holiday everybody!
Sunday, 18 April 2010
Update : Freedom from Money
It is been quite awhile since my last update on this blog. Maybe because all my plans on money saving that I laid down in this blog has work marvelously that I do not even bother to look for other money savings tactics that I can update into this blog. :)
Sorry for all my readers that long for updates on my blog. However, I am still open to answer questions about how to lead life into debt free through email. I love to share my ideas for those who looking for ways to improve their financial life.
For those whom had read through my diaries on how I reached a financial haven, let me update all of you on what my tips have done to my life.
Money tracking
I still keep track of my money flow. As I highlighted earlier, I used my phone to write notes on money flow which I can transferred to Excel file anytime I have free time. I used to transfer the information to Excel daily since the file can help to calculate my daily budget which I direly need to make sure my daily spending do not exceed my budget. But after 1 year plus of doing that, subconsciously my mind consistently maintain its daily budget spending even though I do not calculate them daily. Now, I only update the Excel once every 2 weeks but so far, none of the update showed me that I spend more than I can afford. I guess once the spending discipline burnt into my habit, my spending is automatically tamed.
AKPK
It has been 1 year and 8 months now that I hold account with AKPK. I received bank statements every month and it showed very consistent reduction in my loan to bank. AKPK maintain paying all the banks the money as indicated in my AKPK agreement. Those bank that will send updates every months through statements are AEON, RHB, AmBank, EON, Hong Leong, HSBC and Standard Chartered. All these banks, except AEON, showed in their statement that they charge very low interest rates which the monthly payment have no problem to handle. Thus, my loan balance keep on reducing every month. Only AEON still charging 18% interest rate and the loan balance keep on increasing because the monthly payment is too low to handle interest rate. I approached AKPK councellor on this and they tell me to just ignore the bank statement and the interest rate since once AKPK tracking showed that they have paid AEON full amount, they will get AEON to waive all the unnecessary charges.
Maybank is one of the bank which do not send monthly statement. But, they keep on updating my account online through Maybank2U. From the online account, it showed that AKPK payment were paid every month and amazingly, Maybank did not change any finance charge at all. Seems like they gave the best deal through AKPK so far.
Other bank such as BSN, Citibank and Alliance will not send monthly statements but they will send yearly statement showing how my loan balance is reduce upon payment from AKPK. All these updates kept me sleeping like a baby at night knowing that all my bank loans will some day hit zero and I will be debt free.
House Loan
From all my surveys online on housing loan, I know that my current CiMB home loan is not the best. I was undergoing their locking period for 5 years, so I cannot changed my house loan to other bank without penalties. However, that will not stop me from trying to reduce the interest that I am paying them.
CiMB offered to lower my monthly payment due to lower BLR. I know that this will not do me any good since lower monthly payment will increase tenure and increase total interest that I paid to them. So, since my previous monthly payment were already budgeted, I kept paying the previous monthly payment amount even though they told me that I can pay less now.
I also withdraw 10% from my KWSP (EPF) to settle some of the house loan. This is very important since having lower loan balance means lower interest per month. In long run, even though I did not get the 4.5% of dividend for my KWSP, that money will help to lower my house loan balance thus lower my interest paid to bank. I might not gain money, but most importantly I do not lose too much money too.
My Personal Life
My personal life have been such a wonderful experience since. I do not afraid of money anymore since my discipline have tackle all my bad spending money habit. Everytime I want to spend on something, I survey for best offer. I have always satisfied with all my spending since I know that all my spendings is only on best offer around.
Recently, I add air conditioning to my house since I cannot tolerate anymore with the high temperature the world is getting to. I also got new handphone since my old one already damage after 3 years of its service. The best thing, these spending were taken out from my savings money which was well budgeted for the spending. I budgeted $1,200 for aircond and get $950 deal. I budgeted $1,000 for handphone and end up getting one for $500. The money savings ideas is so burnt into my mind that I constantly able to see all potential good deals.
I was sent to Germany last months due to work. EUR is 5 times higher than MYR. I never imagine how I could survive there if I was flooded with my money problem. However, 3 weeks there had been amazing experience. I maintained a healthy budget and come back to Malaysia without having any money problem and even manage to save a lot of money. I make sure that I only spent what my company supports me and very less of my personal money flow to EUR. 3 weeks there without spending money in Malaysia actually saved my budget since I came back with 3 weeks of budget never been used.
I maintain 10% of my salary to go to ASB and a few month later, my savings will reach 6 months of my monthly salary. That will be enough for my emergency fund and should be enough for me to take up ASB - Overdraft. I hope that ASB-OD will work as a tool for me to further speed up my savings for my retirement. If so, I reached my short term goal of having 6 months salary of emergency fund and I am on a good direction of reaching my long term goal for retirement plan. As for my medium term goal for debt free, no worries at all since AKPK will be there to help me reach that goal within the next 3 years.
Again, I would like to invite all my readers to take action today, changed your habit and change your life to a better, most beautiful experience of freedom from financial prison. All you have to do is to ACT NOW!! Best of luck.
Sorry for all my readers that long for updates on my blog. However, I am still open to answer questions about how to lead life into debt free through email. I love to share my ideas for those who looking for ways to improve their financial life.
For those whom had read through my diaries on how I reached a financial haven, let me update all of you on what my tips have done to my life.
Money tracking
I still keep track of my money flow. As I highlighted earlier, I used my phone to write notes on money flow which I can transferred to Excel file anytime I have free time. I used to transfer the information to Excel daily since the file can help to calculate my daily budget which I direly need to make sure my daily spending do not exceed my budget. But after 1 year plus of doing that, subconsciously my mind consistently maintain its daily budget spending even though I do not calculate them daily. Now, I only update the Excel once every 2 weeks but so far, none of the update showed me that I spend more than I can afford. I guess once the spending discipline burnt into my habit, my spending is automatically tamed.
AKPK
It has been 1 year and 8 months now that I hold account with AKPK. I received bank statements every month and it showed very consistent reduction in my loan to bank. AKPK maintain paying all the banks the money as indicated in my AKPK agreement. Those bank that will send updates every months through statements are AEON, RHB, AmBank, EON, Hong Leong, HSBC and Standard Chartered. All these banks, except AEON, showed in their statement that they charge very low interest rates which the monthly payment have no problem to handle. Thus, my loan balance keep on reducing every month. Only AEON still charging 18% interest rate and the loan balance keep on increasing because the monthly payment is too low to handle interest rate. I approached AKPK councellor on this and they tell me to just ignore the bank statement and the interest rate since once AKPK tracking showed that they have paid AEON full amount, they will get AEON to waive all the unnecessary charges.
Maybank is one of the bank which do not send monthly statement. But, they keep on updating my account online through Maybank2U. From the online account, it showed that AKPK payment were paid every month and amazingly, Maybank did not change any finance charge at all. Seems like they gave the best deal through AKPK so far.
Other bank such as BSN, Citibank and Alliance will not send monthly statements but they will send yearly statement showing how my loan balance is reduce upon payment from AKPK. All these updates kept me sleeping like a baby at night knowing that all my bank loans will some day hit zero and I will be debt free.
House Loan
From all my surveys online on housing loan, I know that my current CiMB home loan is not the best. I was undergoing their locking period for 5 years, so I cannot changed my house loan to other bank without penalties. However, that will not stop me from trying to reduce the interest that I am paying them.
CiMB offered to lower my monthly payment due to lower BLR. I know that this will not do me any good since lower monthly payment will increase tenure and increase total interest that I paid to them. So, since my previous monthly payment were already budgeted, I kept paying the previous monthly payment amount even though they told me that I can pay less now.
I also withdraw 10% from my KWSP (EPF) to settle some of the house loan. This is very important since having lower loan balance means lower interest per month. In long run, even though I did not get the 4.5% of dividend for my KWSP, that money will help to lower my house loan balance thus lower my interest paid to bank. I might not gain money, but most importantly I do not lose too much money too.
My Personal Life
My personal life have been such a wonderful experience since. I do not afraid of money anymore since my discipline have tackle all my bad spending money habit. Everytime I want to spend on something, I survey for best offer. I have always satisfied with all my spending since I know that all my spendings is only on best offer around.
Recently, I add air conditioning to my house since I cannot tolerate anymore with the high temperature the world is getting to. I also got new handphone since my old one already damage after 3 years of its service. The best thing, these spending were taken out from my savings money which was well budgeted for the spending. I budgeted $1,200 for aircond and get $950 deal. I budgeted $1,000 for handphone and end up getting one for $500. The money savings ideas is so burnt into my mind that I constantly able to see all potential good deals.
I was sent to Germany last months due to work. EUR is 5 times higher than MYR. I never imagine how I could survive there if I was flooded with my money problem. However, 3 weeks there had been amazing experience. I maintained a healthy budget and come back to Malaysia without having any money problem and even manage to save a lot of money. I make sure that I only spent what my company supports me and very less of my personal money flow to EUR. 3 weeks there without spending money in Malaysia actually saved my budget since I came back with 3 weeks of budget never been used.
I maintain 10% of my salary to go to ASB and a few month later, my savings will reach 6 months of my monthly salary. That will be enough for my emergency fund and should be enough for me to take up ASB - Overdraft. I hope that ASB-OD will work as a tool for me to further speed up my savings for my retirement. If so, I reached my short term goal of having 6 months salary of emergency fund and I am on a good direction of reaching my long term goal for retirement plan. As for my medium term goal for debt free, no worries at all since AKPK will be there to help me reach that goal within the next 3 years.
Again, I would like to invite all my readers to take action today, changed your habit and change your life to a better, most beautiful experience of freedom from financial prison. All you have to do is to ACT NOW!! Best of luck.
Wednesday, 11 November 2009
How I survived financial turmoil
After I let my financial state take a leap off the roof (refer to my previous post), I suddenly realized how stupid I had got. Here I am, so called someone who loves numbers, mathematics, spreadsheet and accounting, but being selfish had caused me to close eyes on my degrading financial state and allowed myself to dump into a very difficult money problem.
During that time, I was $100,000 in debt for credit cards and personal loans. To top that, I still have mortgage to pay and hire purchase for my car too. My salary was not even close enough to maintain the minimum payment especially on the cards and loans.
I knew that I had to do something. Actually, I knew deep in my heart what to do, but for some malevolence reason, I just unable to do it. I heard it all, spend less, do not use credit card, do not eat fast food, etc. But never once I was actually follow those brilliant ideas.
I asked myself why. My mind would drop a million reasons for that but I knew it was just simply excuses. Excuses from admitting that I am not rich. Excuses to admit that I was not entitle to live as lavishing as I am doing back then. Come on, I am in management line and making $60,000 a year. Why I can’t afford all this? Other person seems to afford it.
Then, it hit me. I am not other people. All those things that I have spent were most of the time to show off. To deny or hide myself from the fact that I am not rich. I am showing to others that I can live extravagantly. But why? Why did I worry so much over how others look at me? Will I loose my friends just because I eat at home? Will I loose my friends if I do not keep up with all the electronics gadget technology wave and ever changing all so often? Will people look down on me if I do not dressed in designer style clothing, or drive a local car? Will my friends left me if I do not go shopping with them, or go out every night or lepak at coffee shop or go clubbing every weekend? I asked my friends these questions, and being such a darling friends, they smack me with same answers, “we just like you as who you are”.
If that is what other people look at me, then why did I spend on all those lavishing lifestyle? The answer was simple, it was for me. I am the guilty one. I am the selfish one. I want to look and live the best (even though no one else care how I live my life) and I denied that I was not smart enough to maintain such lifestyle.
That very moment, I made a pledged to lower my expectation in life. I should live as who I am, not as who I want myself to be. But for the last 15 years I have destroyed my life, I need to make some drastic measure to repent that.
Tame My Credit Cards
Mathematically, my credit cards must be the one I need to tackle first. The 18% per annum interest rate is the highest compare to all my other commitments. By that time, I had in total $60,000 of credit cards debt.
I had to stop the 18% interest rate because it was draining my hard earn money fast. So, I went or called to all the banks that hold my account and discussed over term loan.
Handle Personal Loans
Quick information on personal loan. Whenever you applied for personal loan, there were an agreed tenure and per year interest rate. Once you are approved a loan, the total interest throughout the agreed tenure will be sum into your capital and then calculated the monthly payment. So, as soon as your loan approved, you are already been charged by total interest.
Since the interest already been absorbed into your account, it is so unwise to go take other loan to pay personal loan to consolidate your loan. You will be increasing the amount of interest paid. So, never settle your personal loan by taking up other loan.
However, in my case, the 4 personal loans (BSN, Alliance, Citibank and Aeon) are causing my monthly spending too high than I able to cope. What I did, call the bank and ask for their advice:
AKPK – My lifesaver
After all those tiresome bank deals, my monthly payment is still sky high. Even though some of the term loan manage to tame some of the payment, but those loans that unable to convert to a better offer was really hurting me.
From my tracking, I knew that I had to find ways to lower down my monthly payment on the loan and some of the cards. I thought about going through a financial consultant. But my friend told me they could cost me about $2,000 for the service. If I have the money, I should be paying for my debt, rather than pay some else to “think” about my debt, right?
I was very lucky that during this crucial period, Bank Negara Malaysia was promoting about AKPK (Agen Kuanseling dan Pengurusan Kredit). The promotion was everywhere, billboards, TV ad, footnote on all my bank statement. I browsed their website and noticed that they provided 3 services:
Best of all, all their services are free of charge. I read through their success stories and was touched. I know now that there were so many people out there, were in financial turmoil worst than mine. With the support of AKPK, they managed to get out of their problems.
I quickly approach this idea. I filled up the application form online and then post to them copy of all my bank statements. After 2 weeks, I received a call from my counselor (they appointed counselor for each client) where we discussed the total monthly payment that I can surrender to the bank. The counselor told me to handle my home loan and hire purchase myself and they will look after other loans. After discussion, I agreed to surrender 50% of my salary to pay monthly for all my other loans including personal loans and credit cards.
The whole process took around 2 months. During this period, all banks’ agent called me up to notify me that they were approached by AKPK and my account is currently under their AKPK bank agent. After the 1st month, I received an official agreement from AKPK underlining the payment that each bank will get to utilize the amount that I agreed to surrender. After signing off the agreement, I received agreement from each bank separately through snail mail on the new term.
During this period, some of the bank took quite a tough action on me. I received lawyer letter from BSN to pay my entire outstanding loan. Those banks that were not yet in term loan, charge high interest and late payments. Red notices through snail mail also keep coming to my mailbox every month threatening me that they will go for legal action if I do not pay them up. But, as soon as AKPK term was effective, here was what happened:
Now, after 1 year with AKPK, I am finally feeling most relieve in my finance. Being with AKPK, all my credit cards were blocked and I will be denying for any future loans. I do not see that as a problem, because the actual root cause of this entire problem was that I do not know to correctly handle my loans. They can block me from applying loan for all I care, because I saw that as a blessing in disguise.
During the recession period by end of 2008, I did call my counselor for advice because I am worried that I might lose my job. My friendly counselor told me not to worry and comfort me that if any problem happens in future, they can review back my monthly payment accordingly. Lucky for me that I still manage to keep my job and never have to ask AKPK for a lower monthly payment. Within the next 3 years, my AKPK account should be able to be paid off and I will finally be able live a debt free life.
During that time, I was $100,000 in debt for credit cards and personal loans. To top that, I still have mortgage to pay and hire purchase for my car too. My salary was not even close enough to maintain the minimum payment especially on the cards and loans.
I knew that I had to do something. Actually, I knew deep in my heart what to do, but for some malevolence reason, I just unable to do it. I heard it all, spend less, do not use credit card, do not eat fast food, etc. But never once I was actually follow those brilliant ideas.
I asked myself why. My mind would drop a million reasons for that but I knew it was just simply excuses. Excuses from admitting that I am not rich. Excuses to admit that I was not entitle to live as lavishing as I am doing back then. Come on, I am in management line and making $60,000 a year. Why I can’t afford all this? Other person seems to afford it.
Then, it hit me. I am not other people. All those things that I have spent were most of the time to show off. To deny or hide myself from the fact that I am not rich. I am showing to others that I can live extravagantly. But why? Why did I worry so much over how others look at me? Will I loose my friends just because I eat at home? Will I loose my friends if I do not keep up with all the electronics gadget technology wave and ever changing all so often? Will people look down on me if I do not dressed in designer style clothing, or drive a local car? Will my friends left me if I do not go shopping with them, or go out every night or lepak at coffee shop or go clubbing every weekend? I asked my friends these questions, and being such a darling friends, they smack me with same answers, “we just like you as who you are”.
If that is what other people look at me, then why did I spend on all those lavishing lifestyle? The answer was simple, it was for me. I am the guilty one. I am the selfish one. I want to look and live the best (even though no one else care how I live my life) and I denied that I was not smart enough to maintain such lifestyle.
That very moment, I made a pledged to lower my expectation in life. I should live as who I am, not as who I want myself to be. But for the last 15 years I have destroyed my life, I need to make some drastic measure to repent that.
Tame My Credit Cards
Mathematically, my credit cards must be the one I need to tackle first. The 18% per annum interest rate is the highest compare to all my other commitments. By that time, I had in total $60,000 of credit cards debt.
I had to stop the 18% interest rate because it was draining my hard earn money fast. So, I went or called to all the banks that hold my account and discussed over term loan.
- Citibank – They provided great support for the term loan. After talking to their representative through phone, they promptly faxed me an application form to fill up and signed. I then just have to fax them back the copy. Within 2 weeks, I received through snail mail, an agreement to sign and post to them back that copy. They converted my credit card to term loan with 12% interest rate. Good service, but still not very good loan term with 12% interest rate though.
- HSBC – They also very supportive. Just have to call them up and they sent out the agreement through snail mail. Once signed and returned them the copy, within 2 weeks, my HSBC credit cards was converted to term loan at 9% interest rate. Cool.
- Hong Leong – I had to visit their branch to asked for term loan. After filling up the form, it takes around 2 weeks before they passed my account to collection center and arrange an agent to work on my account. I received their agreement through snail mail, but they require me to send them backdated check for all the agreed 60 payments. I had to create a current account first for the cheque. After everything settles, they converted my credit cards with 9% interest rate. Fair enough.
- MBF – This is not a bank. They are just the card provider. Since they hold their credit to AmBank, they asked to go to AmBank branch for the term loan application.
- AmBank – I also had an AmBank credit card. So, I planned to work with them for the term loan on both AmBank and MBF credit cards. But it seems that both account handled by different agents. So, end up, I have to double up the trip made to AmBank to discuss the term loan agreement for AmBank and MBF differently. All discussion and paper work must be done at the branch, so it was quite a trip since it was not a one day things to settle. I have also had to surrender 120 backdated cheques to cover the payment on AmBank and MBF separately. After 1 months of application, they converted my credit card to term loan for AmBank and MBF with both 9.5% interest rate.
- Standard Chartered - I went to visit their branch but their customer service told them that they did not provide term loan.
- Maybank – They do not have term loan. A talk to their agent through phone was shut off with, they cannot offer anything. They just advise me to pay the 5% until my outstanding balance cleared off…duh.
- RHB – They also do not offer any term loan. Same with Maybank, they adviced to pay 5% on both cards (since I have 2 cards with them). Once one of the card clear off, then pay more on the other card. Brilliant ideas. (Pretty obvious is it?)
- Aeon – They do not offer term loan to. But…well, that was just that. No but. They just warn me not to miss my next payment and then put down the phone. Quite friendly indeed
- EON – Worst one. That is why I kept them at the last. First, I called them. The operator asked me to visit any branch to discuss on this. I visited one of their branches, their agent told me that they do not have term loan. Instead, she called someone on phone, right down something on a piece of paper, and quietly pushes the paper to me. She told me to go to the written address and asked for personal loan which can be use to settle the credit cards debt. I went to the address to an office that do not have any sign, which I assume some kind of loan shark or “along”, which cause me to drop the whole ideas. I then called again their center on phone, greeted by a lady, which end up scream at me saying that they do not have term loan. Before ending the conversion, she told me, which I know I will remember this for the rest of my life, “Lain kali, kalau takde duit, jangan la nak pakai kredit kad", which translate to, “Next time, if you do not have money, do not use credit card”. Thanks to that lady’s brilliant advice, I hate all banks now and understand that, to them we are just customers that generate profit for them and all those sweet talk or promotion is purely selling rubbish. My advice, when dealing with bank, make sure you read the footnote or fine-print.
Handle Personal Loans
Quick information on personal loan. Whenever you applied for personal loan, there were an agreed tenure and per year interest rate. Once you are approved a loan, the total interest throughout the agreed tenure will be sum into your capital and then calculated the monthly payment. So, as soon as your loan approved, you are already been charged by total interest.
Since the interest already been absorbed into your account, it is so unwise to go take other loan to pay personal loan to consolidate your loan. You will be increasing the amount of interest paid. So, never settle your personal loan by taking up other loan.
However, in my case, the 4 personal loans (BSN, Alliance, Citibank and Aeon) are causing my monthly spending too high than I able to cope. What I did, call the bank and ask for their advice:
- Alliance – The bank asked me how much I can pay them every month. On the agreed payment, they ease up my payment and allow me to pay the amount I can afford for the next one year. They will review my status again after 1 year. Good enough for me.
- Citibank – No further offer from them.
- Aeon – No further offer from them too.
- BSN – They asked to come to the branch to fill up form. Apparently, being a bank supported by government, they have a scheme to support such financial difficulties. I met with a very friendly lady there to fill up form to apply for a lower monthly payment. After 2 weeks, no update from them, so I called their bank again. They passed me from one agent to another, my call traveled from Melaka branch to KL HQ, when finally it reach an agent that said that they do not offer such service (lowering monthly payment) and they do not have any record for my application. That end of conversion confused me and I do not do anything else after that.
AKPK – My lifesaver
After all those tiresome bank deals, my monthly payment is still sky high. Even though some of the term loan manage to tame some of the payment, but those loans that unable to convert to a better offer was really hurting me.
From my tracking, I knew that I had to find ways to lower down my monthly payment on the loan and some of the cards. I thought about going through a financial consultant. But my friend told me they could cost me about $2,000 for the service. If I have the money, I should be paying for my debt, rather than pay some else to “think” about my debt, right?
I was very lucky that during this crucial period, Bank Negara Malaysia was promoting about AKPK (Agen Kuanseling dan Pengurusan Kredit). The promotion was everywhere, billboards, TV ad, footnote on all my bank statement. I browsed their website and noticed that they provided 3 services:
- Financial education
- Financial counseling
- Debt management (Yeay!!)
Best of all, all their services are free of charge. I read through their success stories and was touched. I know now that there were so many people out there, were in financial turmoil worst than mine. With the support of AKPK, they managed to get out of their problems.
I quickly approach this idea. I filled up the application form online and then post to them copy of all my bank statements. After 2 weeks, I received a call from my counselor (they appointed counselor for each client) where we discussed the total monthly payment that I can surrender to the bank. The counselor told me to handle my home loan and hire purchase myself and they will look after other loans. After discussion, I agreed to surrender 50% of my salary to pay monthly for all my other loans including personal loans and credit cards.
The whole process took around 2 months. During this period, all banks’ agent called me up to notify me that they were approached by AKPK and my account is currently under their AKPK bank agent. After the 1st month, I received an official agreement from AKPK underlining the payment that each bank will get to utilize the amount that I agreed to surrender. After signing off the agreement, I received agreement from each bank separately through snail mail on the new term.
During this period, some of the bank took quite a tough action on me. I received lawyer letter from BSN to pay my entire outstanding loan. Those banks that were not yet in term loan, charge high interest and late payments. Red notices through snail mail also keep coming to my mailbox every month threatening me that they will go for legal action if I do not pay them up. But, as soon as AKPK term was effective, here was what happened:
- My AKPK counselor told me to ignore the lawyer mail. When the lawyer called me, I told them that I was under AKPK and they apologized, blaming BSN for not updating them according.
- Most banks waived their late payment through out the process of AKPK taking effect.
- No more red notice or bank collection center calling me to pay them every month.
- The monthly payment was paid to AKPK through Maybank online and AKPK agent will distribute the money according to each bank.
Now, after 1 year with AKPK, I am finally feeling most relieve in my finance. Being with AKPK, all my credit cards were blocked and I will be denying for any future loans. I do not see that as a problem, because the actual root cause of this entire problem was that I do not know to correctly handle my loans. They can block me from applying loan for all I care, because I saw that as a blessing in disguise.
During the recession period by end of 2008, I did call my counselor for advice because I am worried that I might lose my job. My friendly counselor told me not to worry and comfort me that if any problem happens in future, they can review back my monthly payment accordingly. Lucky for me that I still manage to keep my job and never have to ask AKPK for a lower monthly payment. Within the next 3 years, my AKPK account should be able to be paid off and I will finally be able live a debt free life.
Wednesday, 28 October 2009
Types of Insurance That Even a Frugal Person Should Have
When you have barely just enough money to get by after the major expenses of housing, food and other bills, narrowing down the types of insurance you have can be key to keeping you out of debt. When you’re on a limited budget, you unfortunately don’t have the luxury of purchasing all the types of insurance available so you’ll have to choose the most important ones. So before agents start contacting you as part of their round of insurance leads, know the types of insurance that you absolutely need.
Auto Insurance
If you drive a car, auto insurance is not an option. Since it is mandatory, try to focus on getting the lowest premiums by choosing plans with higher deductibles. Deductibles that are $500 or higher can really decrease your monthly premiums and save you money. Drivers with the cleanest and safest records get the best rates so be careful on the road. Driving recklessly will only cost you more money. Check with state laws and see if you must include collision coverage in your plan, which covers damage to your car. For older cars, collision coverage may not be worth it if you sustain damage to it. If you’re a student, some insurance companies may be willing to give you a discount for good grades so inquire about special discounts such as those.
Health Insurance
You may not think you need health insurance now because you don’t feel sick, and especially if you are young, health insurance may seem like a lot of money every month. But just one unexpected hospital stay or even a single visit to the ER for any reason can cost thousands of dollars. Without insurance, an accident or illness can bring your out-of- pocket medical bills to tens or hundreds of thousands of dollars very quickly. Hospitals and providers may even turn you away. Just like with auto insurance, choose higher deductibles for lower premiums.
Renter’s Insurance
If you own a home, then home insurance is required but if you are a renter, protecting your big ticket valuables is smart, especially since renter’s insurance is relatively inexpensive. Depending on location, and other factors, renter’s insurance can run around $100 to $200 a year for about $20,000 worth or more of your personal belongings. In the event such as a fire, you’ll be glad that your pricey purchases such as your TV, computer, stereo, and clothes will be covered. Know the difference between replacement cost coverage and actual value coverage. Replacement cost coverage is a smarter choice since is would give you the amount of money it would take to repurchase new items, such as a computer, instead of actual value coverage, which would give you a smaller amount for the value of the worth of your items now. Consider using the same insurance company that you use for auto insurance, since they may be able to give a discount for having more than one plan with them.
Life Insurance
Life insurance is important if someone else, such as a spouse, child or other family member depend of you financially. If not, then life insurance isn’t necessary.
(Courtesy of : http://www.netquote.com/insurance-agents/)
Auto Insurance
If you drive a car, auto insurance is not an option. Since it is mandatory, try to focus on getting the lowest premiums by choosing plans with higher deductibles. Deductibles that are $500 or higher can really decrease your monthly premiums and save you money. Drivers with the cleanest and safest records get the best rates so be careful on the road. Driving recklessly will only cost you more money. Check with state laws and see if you must include collision coverage in your plan, which covers damage to your car. For older cars, collision coverage may not be worth it if you sustain damage to it. If you’re a student, some insurance companies may be willing to give you a discount for good grades so inquire about special discounts such as those.
Health Insurance
You may not think you need health insurance now because you don’t feel sick, and especially if you are young, health insurance may seem like a lot of money every month. But just one unexpected hospital stay or even a single visit to the ER for any reason can cost thousands of dollars. Without insurance, an accident or illness can bring your out-of- pocket medical bills to tens or hundreds of thousands of dollars very quickly. Hospitals and providers may even turn you away. Just like with auto insurance, choose higher deductibles for lower premiums.
Renter’s Insurance
If you own a home, then home insurance is required but if you are a renter, protecting your big ticket valuables is smart, especially since renter’s insurance is relatively inexpensive. Depending on location, and other factors, renter’s insurance can run around $100 to $200 a year for about $20,000 worth or more of your personal belongings. In the event such as a fire, you’ll be glad that your pricey purchases such as your TV, computer, stereo, and clothes will be covered. Know the difference between replacement cost coverage and actual value coverage. Replacement cost coverage is a smarter choice since is would give you the amount of money it would take to repurchase new items, such as a computer, instead of actual value coverage, which would give you a smaller amount for the value of the worth of your items now. Consider using the same insurance company that you use for auto insurance, since they may be able to give a discount for having more than one plan with them.
Life Insurance
Life insurance is important if someone else, such as a spouse, child or other family member depend of you financially. If not, then life insurance isn’t necessary.
(Courtesy of : http://www.netquote.com/insurance-agents/)
Thursday, 22 October 2009
Banking Service Comparison
Recently, I have compiled some of the banking services provided by Malaysia's bank. My interest is to compare their services on Credit Cards, Personal Loan, ASB Financing, OD Facility, Home Loan and Hire Purchase. Basically, these services are the one that I am using, so I am comparing versus each bank to see if there is a better offer.
Look through my basic simple comparison below. Although the information might be limited, but at least you might be able to have some focus on the best services before you approach that bank for more information on your interested service.
All the information above are gathered from respective bank website. For those column that information "Not Available" or "Not Clear", is because the information on their website is very limited.
Look through my basic simple comparison below. Although the information might be limited, but at least you might be able to have some focus on the best services before you approach that bank for more information on your interested service.
| Bank | Credit Card | Personal Loan | ASB Loan | OD Facility | Home Loan | Hire Purchase |
| Affin Bank Berhad | Annual Fee : RM50 Int 18% BT 6.88% 0% EPP | NA | NA | FD mortgage BLR+1% daily rest | MOF 95% 45yrs/75yo BLR-2.3% OD BLR-0.5% | MOF 90% Max 9yrs Fixed 4.00% |
| Alliance Bank Malaysia Berhad | Annual Fee : RM68 Int 18% BT 7.25% 0% EPP Rewards Point | Int 11.99% pa Up to 60mths Income >RM2k | NA | NA | MOF 90% 30yrs/65yo 1-5yr : BLR-1% >5yrs : BLR -1.2% OD BLR+0.79% | MOF 90% Max 7yrs Fixed 3.9% |
| AmBank (M) Berhad | Annual Fee : RM75 Int 17.5% BT 8.99% 0% EPP Rewards Point | NA | NA | NA | MOF 90% MRTA 30yrs/65yo BLR-2.05% OD BLR-0.5% | MOF 90% Max 9yrs Fixed 5.1% Var BLR |
| CIMB Bank Berhad | Free for Life Int 17.5% No BT 0% EPP Rewards Point | Income >RM800 Max 5yrs | Max RM200,000 BLR-1.65% OD available | Mortgage FD, CIG, CIMB Deposit, CIMB UT, ASNB BLR-2.00% | MOF 90% GMTA 30yrs/65yo BLR-2.05% No OD | MOF 90% Max 9yrs Fixed 3.25% |
| Citibank Berhad | Free for Life Int 17.5% BT 11.99% 0% EPP Rewards Point | Income >RM2000 Int 8.52% pa Up to 60mths | NA | Mortgage FD | MOF 89% 30yrs/65yo No OD | NA |
| EON Bank Berhad | Annual Fee : RM75 Int 17.5% BT 5.50% 0% EPP Rewards Point | Int 9.00% Up to 72months | NA | Existing Current Account | MOF 90% MRTA 30yrs/65yo 1-8yrs : BLR-1.6% >8yrs : BLR-2.3% OD BLR-0.6% | MOF 85% Max 7yrs Fixed 3.75% - 3.9% |
| Hong Leong Bank Berhad | Annual Fee : RM80 Int 17.5% BT 12% 0% EPP Rewards Point | Income >RM2000 Int 12% Up to 60mths | NA | NA | MOF 95% MRTA 30yrs/65yo 1yr : 2.38% 2yr : 3.38% >2yrs : BLR-0.95% OD BLR-0.75% | MOF 90% Max 9yrs Fixed 4.00% |
| HSBC Bank Malaysia Berhad | Annual Fee : RM80 Int 18% BT 12% 0% EPP Rewards Point | Income >RM2000 Int 10% Up to 60mths | NA | Existing Current Account BLR+1% - BLR+1.5% | No Info | No Info |
| Malayan Banking Berhad | Annual Fee : RM60 Int 18% BT 12% 0% EPP Rewards Point | NA | Max RM400,000 1-3yrs : BLR-1.65% >3yrs : BLR-1.5% | NA | MOF 90% MRTA 30yrs/60yo 1yr : 3.88% 2-4yr : BLR-1.1% >4yrs : BLR-1.0% OD BLR+1.0% | MOF 90% Max 9yrs Fixed 4.25% - 5.00% Var BLR+1.00% |
| OCBC Bank (Malaysia) Berhad | Annual Fee : RM70 Int 18% 0% EPP Rewards Point | NA | NA | Mortgage Property, FD, UT | MOF 90% MRTA 30yrs/65yo BLR-1.5% No OD | NA |
| Public Bank Berhad | Annual Fee : RM68 Int 17.5% 0% EPP Rewards Point | NA | NA | Existing Current Account | MOF 95% 40yrs/70yo 1yr : 3.37% 2yrs : BLR-1.0% 3-5yrs : BLR-0.2% 6-10yrs : BLR-0.3% 11-15yrs : BLR0.5% >15yrs : BLR-1.0% OD BLR-0.75% | MOF 90% Max 9yrs Fixed 4.23% - 4.89% Var BLF+0.99% |
| RHB Bank Berhad | Annual Fee : RM70 Int 17.5% BT 6% 0% EPP Rewards Point | NA | Max RM200,000 1yr : 3.8% >1yr : BLR-1.35% OD available (BLR-1%) | Mortgage FD, ASNB BLR-1.00% | MOF 90% MRTA 40yrs/65yo BLR-1.7% OD BLR+0.18% | MOF 90% Max 9yrs Fixed 3.75% - 4.00% |
| Standard Chartered Bank Malaysia Berhad | Annual Fee : RM90 Int 17.5% BT 7.99% 0% EPP Rewards Point | Income >RM2000 Int 17% Up to 60mths | NA | Mortgage FD, UT | Information Not Clear | NA |
| United Overseas Bank (Malaysia) Bhd. | Annual Fee : RM0 Int 17.5% BT 12% 0% EPP | Income >RM2000 Int 10.75% Up to 60mths | NA | Mortgage FD, UT | MOF 90% MRTA 40yrs/70yo 1-3yrs : 5.9% 4-10yrs : BLR-1.25% >10yrs : BLR-1.5% | NA |
All the information above are gathered from respective bank website. For those column that information "Not Available" or "Not Clear", is because the information on their website is very limited.
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