Malaysia Money Matters

Firstly, on a macroeconomic level, I think this is a good move. Increasing disposable income will increase consumption, hence increase overall economic output - thus the economy will continue to grow. Taking a more nuanced view - even if a lot of the increased income flows to debt reduction, this means less pressure on capital requirements on bank balance sheets. However, revenues will suffer slightly in the short term but in the medium term, this frees up capital to lend - this will stimulate growth. So the debate is raging on social media on what should one do and there are of course all sorts of accusations and pictures of calculations showing how much you will pay on GST, taxes etc .. there are so many angry people out there... sigh My suggestion is very simple - You Do What is Best for YOU . Don't Listen To People Telling You What They Want You to Do Just Because That Is What THEY Want To Do Themselves! So what is best for you? I've broken it down to 3 main categ...

It's a Malaysian dream to own a property - our culture is not geared towards renting long-term. Renting is considered something you do either as a student / newly working / a temporary solution if you're prone to being transferred - but in the long run, conventional wisdom is to bite the bullet and buy at least ONE property for your permanent residence. So the conundrum lies in the wherewithal for the deposit and attendant costs. To some, the need is urgent and saving up takes too long - so what are your options? The fastest but most expensive: Credit Card cash advance - that baby will hit you with an 18% p.a. interest rate the moment the cash comes out of the ATM. Do Not Use This Method. Please. Even though it pays my salary. The slightly less fast, also kinda expensive but sort-of bearable: Personal Loan - you can take a bigger amount, take a longer time to pay it off and you have that lump sum to help secure the property you want to buy. Only use this method ...

In these times of high prices and low salaries, a lot of people get into financial difficulties when they end up with a lot of credit card debt to maintain their lifestyle. Anyway, no judgement - mistakes happen, I've been there too. The thing is how to get out of it. This is where I think personal loans are not too bad. Well, they are expensive if you take a long tenure but if you know how to use them wisely, they can be very useful. As a banker, these are the tips on how to maximise on your personal loan: 1. Have a clear objective: Such as to clear off your card debt AND that you are going to stop using that card! The lower monthly monthly repayment is meant to relieve your monthly budget and create a set timeline to pay off that amount. 2. Be disciplined: Per no 1, don't run up another debt on another card for goodness sake. 3. Sign up for the lowest TENURE, not the lowest rate: The shorter tenures have the cheapest rates anyway. If you try shopping around ...

This is from the book written by the late Reverend Dr K Sri Dhammananda "What Buddhists Believe"; the following was extracted from the book "What the Buddha Taught" by the Venerable Dr W Rahula. I'm writing this out more as a reminder for myself - somehow it's akin to copying out scripture, in physically replicating the words, it is like a meditation and to imbue these words into yourself... [Besides, it was in point form compressed into paragraphs, am just breaking it up so that it's easier for me to read hehe - lists are easier to see! :)] A man named Dighajanu approached the Buddha and asked him, "Venerable Sir, we are ordinary laymen, leading a family life with wife and children. Would the Blessed One teach us some doctrines which will be conducive to our happiness in this world and after?" The Buddha told him that there are four things which are conducive to a human's happiness in this world: A) He should be: Skilled Eff...

I'm going to rant a bit. Ever notice how some people, despite a nominal RM1 parking charge Will Still Park Outside and BLOCK TRAFFIC? Yessss.... so I've come to label them as "cheap asses". Cheap. Ass. Of course their justification would be, "Oh you know, anywhere you can save a dollar, why not?" etc etc. I agree. One should save where one can. But if you become a NUISANCE in your so-called quest to save money, then you are a Cheap Ass. Here is my definition of being economical: Saving money through proper planning and creativity. Let's break it down: Proper planning = planning your trip to the mall to get whatever it is you need, knowing what's on sale, buying things you need (NEED, people. Not 'want'). Cheap asses don't plan. They just do whatever they want like go crazy, snatching stuff at sales, thinking they're saving money on parking by parking on the street, flood F&B outlets with their damn Groupon vouch...

Phew, 2012 is over - what a tumultuous year it has been; as predicted for a Water Dragon year with yang water in the heavenly stem on a yang earth element earthly branch - a clash of elements that is like a big wave on land. So let's all look forward to 2013 which is still going to be tough times (yin fire yin water clash) but nowhere near as extreme as 2012. Astrologers are predicting that while it is not going to easy times, there are still opportunities for wealth. Given the elements ruling the year, wealth comes from intelligence - meaning you'll have to use your brain to get ahead, it's not the kind of year where you can do simple things like buy any stocks or shares and boom, you're making money on the market.  So you have to do your homework and I feel the growth areas are in intellectual / technological advances. I believe high tech, publishing, software, innovative products and services - even things like improvements in processes for better effici...

I have been entertaining the thought of adopting a child for quite some time now. However, it will probably be only a pipe dream because given the realities of raising a child single-handedly is not something I can handle in terms of energy and time. Financially, I guess I'm ok but that is only the tip of the iceberg. So what brought this about was that a friend of a friend is getting a child, single also. And really, he's in no shape to do so. Not financially stable, no family support here (they live in East Malaysia, a flight away) and ermm not matured enough yet, I think. Although who is to say, maybe getting a child will force him to get his act together. Anyway, since this blog is all about money, I thought I'd break down the adoption issue in terms of the real costs involved and hold on to your hair, what I'm about to say is not very pleasant: First - there are 2 ways of adopting here: one is through the Welfare department, the other is to find your own baby...

Many people, including those in the government, think that credit cards are bad, bad, bad. So is fire, doesn't stop you from using it, does it? I would argue that if the rules are set properly (not arbitrarily as they are now), AND taking into account lessons learnt from Taiwan and South Korea on how to jump start your domestic economy but without most of the dire problems that can come with a consumption-led boom, then listen up: But first, some background. There are about 11-12 million working adults in this country. Only about 4 million actually hold credit cards. What about the rest, you ask? Based on the Bank Negara guidelines, they don't qualify due to their lower income or lack of income documentation, say hawkers etc who deal in cash and don't keep proper records. The consequence of that is that these individuals are essentially LOCKED OUT of the formal banking system, so who do they turn to when there is a need for cash - you got it, the loan sharks. Why do...

Now it seems that the General Elections may be held in March next year when the current mandate runs out. Looks like they would rather buy time and risk the Opposition accusing them of being cowards. What with the recent spate of defections in Sabah and the late DPM Ghafar Baba's son Tamrin joining PAS, the mood seems to be that some of them want to be on the 'winning team' while it is still possible. Personally, I'm a bit leery of that but ah well, lets see how it all pans out. I do think it is time for a change but what that change turns out to be in the short, medium and long run is hard to predict. I'm fairly optimistic for the long run view and possibly in the medium too. However, I predict that immediately after the result, there is going to be some upheaval. Let's say Pakatan wins: On the whole, the ground will be happy, the elites very unhappy. So the crucial players in this case are actually the police, the army and the Royal houses. Who will ...

I have a friend. Let's call him Kyle. He is obsessed with money. I mean really. Anyway, while talking to him the other day, the topic turned to net worth. So for a laugh, I told him that he's probably a millionaire already; he just didn't know it! Boy, you should have seen him, I swear his ears almost waggled as his (already bulgy) eyes bulged out of their sockets! So I says, look - you've got 3 properties right? And he says, yeah but I still owe the banks for the mortgage. Well, says I, what about your MRTA? Ha! He gets it. Despite his many shortcomings, one thing I do like about him is that he gets things very quickly. There's a lot to be said about that. So so so, if added all together, they come up to about half million already at market value, he stuttered. Uh huh. And now, how about your EPF? There's about 150K in there or so. Oooo... now I'm up to 650K. Still nowhere near a million, what?! Insurance leh? I ask. Not a lot lah, he says. No, what about y...