tag:blogger.com,1999:blog-130522352024-03-13T12:44:16.404+08:00Personal Finance MalaysiaTHE principle of personal financeCThttp://www.blogger.com/profile/14795176144151486949noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-13052235.post-26675789701270730132021-08-02T22:49:00.023+08:002021-08-22T18:14:10.213+08:00Cashflow Board Game<p>We can learn a lot about important financial basics, investing and making financial decisions playing Robert Kiyosaki's CashFlow 101 Board Game. <br /><br />This board game is played in two parts, i.e. The Rat Race and The Fast Track. I love to play this board game so much that I compiled the The Rat Race part of the board game into Excel file to speed up the game.</p><p>The Rat Race part of the Cashflow Board Game requires the players to update income statement and assets and liabilities list. The process allows players to learn the relationship of assets, borrowings and passive income. Once you are familiar with the operation of filling up the statements, you may find that the process is rather mundane. Playing the game on Excel allows you to skip the mundane part of the game and focus on making financial decision buying and selling assets, etc. </p>
<p>You can <a download="CashFlowExcel" href="https://1drv.ms/u/s!Ait14NNUgnsCj4pnCXE-2JdadcWrWQ?e=VNpSwR">download the Zip file</a> and play the CashFlow Board game in Excel.<br /><br />Watch the video below to see how the Excel file works.</p>
<br />
<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/Xg1isqyk2Uk" title="YouTube video player" width="560"></iframe>
<br />
<p><br /></p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbJdJ3Lnu3XryXppmeeqJQCZTdhQr0ES4W-EHFZxgCqVjLIcWqz_TjX1is7PA5cHHRnSCt5UgffvmDbPXFdKHsekfwYnbwRuh_ehzU8bxMPTK_NQV3iWNIvUC1KTNM-6CNktiW/s2048/cashflowgamepic.png" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1235" data-original-width="2048" height="241" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbJdJ3Lnu3XryXppmeeqJQCZTdhQr0ES4W-EHFZxgCqVjLIcWqz_TjX1is7PA5cHHRnSCt5UgffvmDbPXFdKHsekfwYnbwRuh_ehzU8bxMPTK_NQV3iWNIvUC1KTNM-6CNktiW/w400-h241/cashflowgamepic.png" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">You learn financial statements by filling up the Game Card.</td></tr></tbody></table><br /><p><br /></p><div><br /></div><p><br /></p>CThttp://www.blogger.com/profile/14795176144151486949noreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-58875632857740790132021-02-18T23:08:00.002+08:002021-02-18T23:08:17.704+08:00Blockchain & Bitcoin et al - Making Sense of Cryptocurrency (2)<p> It is quite easy to understand Blockchain. </p><p>Blockchain, essentially is an accounting ledger that records currency transactions. More specifically it is a cashbook, for a specific currency like Bitcoin, that records who pay how much to who. </p>
<p>However, this cashbook called blockchain, works in a computer network and uses a different method to record payment transactions:</p><p>1. </p><p>Anyone who participates in the currency transactions can choose to keep a copy of this cashbook in a computer or server connected to the network. All copies kept by various participants are 100% identical containing full records of transactions since the first day of the creation of this currency until the latest payment. When one person initiates a new transfer, this payment record will be updated to everyone’s copy of the cashbook.</p><p>This means we don’t need a trusted accountant to record payment transactions. Since everyone has an 100% identical copy of the full cashbook, no one can perform fraud by changing just his own copy of the cashbook. </p>
<br />
<div style="text-align: center;">
<script type="text/javascript"><!--
google_ad_client = "ca-pub-0452912864109724";
/* FPM Stock investing */
google_ad_slot = "9485754637";
google_ad_width = 336;
google_ad_height = 280;
//-->
</script>
<script src="http://pagead2.googlesyndication.com/pagead/show_ads.js" type="text/javascript">
</script>
</div>
<br />
<p>2. </p><p>To prevent people from amending recorded payment transactions (and to prevent the same amendment made to everyone else copies), the payment transactions are recorded in an encrypted way. The encrypted payment records are a series of jumbled up meaningless alphanumeric characters, encrypted text. Multiple payments are grouped into one BLOCK and be encrypted into encrypted text. The first block of payments and second block of payments will be encrypted into one series of encrypted text. The second block of payments and third block of payments will be encrypted into second series of encrypted text, etc. This structure is like a…CHAIN. This is how the name Blockchain came from. </p><p>3.</p><p>When one initiates a payment, it records the payment amount transferred from an address controlled by him to another address controlled by the recipient. This payment record (grouped and encrypted with other payments into an encrypted text) needs to be verified before it can be updated to everyone else cashbook copies. This verifying processing is called mining. The person who initiates the payment will have a fraction of the payment be deducted as transaction fee, and the miner, the first person who managed to verify the transaction, will earn the transaction fee. </p>
<br />
<div style="text-align: center;">
<script type="text/javascript"><!--
google_ad_client = "ca-pub-0452912864109724";
/* FPM Stock investing */
google_ad_slot = "9485754637";
google_ad_width = 336;
google_ad_height = 280;
//-->
</script>
<script src="http://pagead2.googlesyndication.com/pagead/show_ads.js" type="text/javascript">
</script>
</div>
<br />
<p>4. </p><p>With an encrypted cashbook with thousands of identical copies owned by everyone, Blockchain is a payment system or currency records that can be trusted by everyone. </p><p>Do you realise you don’t need a bank to keep your currency anymore? You just need to logon to the network to have access to your currency address (which is called wallet or account). </p><p>Do you realise we don’t need Central Bank to control money circulation anymore? The rules on quantity of the currency has long been established when the currency is being created (programming development). Currency with bad quantity rules will not survive.</p><p>Blockchain enables a community to self-manage and govern money without authority figure to manage the authenticity of the money supplied to the community. Therefore it is such a revolutionary and brilliant invention. </p><p>When we look at today numbers of cryptocurrency, i.e. Bitcoin, Dogecoim, Ethereum, etc. not all will survive. But blockchain, the cashbook recording technology that enables these coins, will become an essential part of our economy.</p><p><br /></p><p>1. <a href="https://personalfinance.financialplanningmalaysia.com/2017/12/bitcoin-et-al-making-sense-of.html" target="_blank">Bitcoin et al - Making Sense of Cryptocurrency</a><br />2. Blockchain & Bitcoin et al - Making Sense of Cryptocurrency (2)</p>CThttp://www.blogger.com/profile/14795176144151486949noreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-10623838521104530372018-12-15T22:29:00.002+08:002019-02-04T01:08:10.703+08:00Hire Purchase (and Lease) Calculator<h3>
Summary</h3>
This useful hire purchase (and lease) calculator generate effective interest rate (and not just the flat rate quoted by the banks that is useless for comparison of loan offers)<br />
<br />
<ul>
<li>You can use effective interest rate to compare various hire purchase/ lease offer. It can even compare loan with same quoted flat rate but with variation of making final instalments upfront.</li>
<li>You can use effective interest to compare with other interest rates like housing loan interest rates or fixed deposit rates, etc.</li>
</ul>
<br />
<br />
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- FPM front -->
<ins class="adsbygoogle"
style="display:inline-block;width:336px;height:280px"
data-ad-client="ca-pub-0452912864109724"
data-ad-slot="3252506206"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
<br />
<br />
You can <a href="https://1drv.ms/x/s!Ait14NNUgnsCjOkA3S8i8KS4Qv_-2A" target="_blank">download this Hire Purchase Calculator here</a>.<br />
<h3>
Descriptions</h3>
Should you get a hire purchase loan or use the extra money you kept in your flexi-housing loan to pay for your new car? It can be confusing.<br />
<br />
It is difficult to know the true interest cost of your hire purchase (or lease) because the interest rate is quoted in flat rate. This flat rate is not comparable with the interest rate we usually use for fixed deposit or housing loan.<br />
<br />
For instance, a flat rate of 3.5% for a 5-year hire purchase is equivalent to effective interest rate of 7.56%. We cannot use the flat rate 3.5% to do any comparison. However, can use this 7.56% interest rate to compare with housing loan rate of 4.25% or fixed deposit rate of 3.25%.<br />
<br />
A 3.5% flat rate of car hire purchase loan is MORE expensive than your 4.25% housing loan rate.<br />
<br />
This useful hire purchase calculator helps you to calculate the effective interest rate based on flat interest rate quoted in hire purchase or lease.<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqGh_Nchddjtlj41b6tWl0SGHesdkzsoO5mW9zzKykyhCF3HyPks9ZWFFgTsCuNXhu8Fq6-LnQuFg2PJ98sDthdqBYro45jaV5EajOoHZr5yF24v5ba_34ud_SCoiAogV76y_3/s1600/hploan1.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="793" data-original-width="850" height="596" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqGh_Nchddjtlj41b6tWl0SGHesdkzsoO5mW9zzKykyhCF3HyPks9ZWFFgTsCuNXhu8Fq6-LnQuFg2PJ98sDthdqBYro45jaV5EajOoHZr5yF24v5ba_34ud_SCoiAogV76y_3/s640/hploan1.jpg" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Enter value to the grey color cells.</td></tr>
</tbody></table>
This calculator calculate total interest cost, installment amount, total repayment amount, and effective interest rate. It allows you to compare various HP or lease offers and even with housing loan.<br />
<br />
This calculator generate repayment timetable with specific dates.<br />
<br />
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- FPM front -->
<ins class="adsbygoogle"
style="display:inline-block;width:336px;height:280px"
data-ad-client="ca-pub-0452912864109724"
data-ad-slot="3252506206"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiq6eFafKBLD-jSUgVnGaggoG3Sq5aCxDi16lV2-DlpKla4gJXVfNUCt8q85QZ4yragIdsoUD9jyQAxqIOSyfz32mB7WFNzu4vJum4W_AWsGuQ0Oi4_oQ1NKgDzdgDI1bPLulc5/s1600/hploan2.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="814" data-original-width="865" height="602" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiq6eFafKBLD-jSUgVnGaggoG3Sq5aCxDi16lV2-DlpKla4gJXVfNUCt8q85QZ4yragIdsoUD9jyQAxqIOSyfz32mB7WFNzu4vJum4W_AWsGuQ0Oi4_oQ1NKgDzdgDI1bPLulc5/s640/hploan2.jpg" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Repayment schedule.</td></tr>
</tbody></table>
<br />
With repayment schedule you can know the amount of early repayment and the last instalment.<br />
<br />
This calculator can be used to calculate leasing or hire purchase loan of your business equipment too.<br />
<br />
Some leasing companies offer lease agreements that require you to pay your final instalment(s) upfront. Such arrangement increases your actual effective interest rate despite that the quoted flat rate remain the same. This calculator includes such factor to generate accurate effective interest rate.<br />
<br />
You may <a href="https://1drv.ms/x/s!Ait14NNUgnsCjOkA3S8i8KS4Qv_-2A" target="_blank">download this Hire Purchase Calculator here</a>.<br />
<br />CThttp://www.blogger.com/profile/14795176144151486949noreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-22978603110258191942018-11-21T15:07:00.003+08:002019-02-04T01:09:02.237+08:00How to Actually Save Money? How to actually save money? It is not about packing your own lunch.<br />
<br />
This article and video from Motley Fool stated that we simply need to focus on our three biggest expenses in our life, i.e. house, car and education. While I agree with the author, there are variations for Malaysians.<br />
<br />
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- FPM front -->
<ins class="adsbygoogle"
style="display:inline-block;width:336px;height:280px"
data-ad-client="ca-pub-0452912864109724"
data-ad-slot="3252506206"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
<br />
<br />
Here is the article from Motley Fool on <a href="https://www.fool.com/financial-advice/2014/06/24/save_money.aspx" target="_blank">How to Actually Save Money</a> Below is the video from the same article.<br />
<br />
<br />
<iframe allowfullscreen="true" allowtransparency="true" frameborder="0" height="476" scrolling="no" src="https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2Fthemotleyfool%2Fvideos%2F10158053367417796%2F&show_text=0&width=476" style="border: none; overflow: hidden;" width="476"></iframe>
<br />
<br />
<br />
<div>
<br /></div>
<br />
In the context of Malaysians:<br />
<br />
House
<br />
<ol>
<li>Clear understanding of what is a good enough house for your family. Make careful decision based on affordability of house/ apartment, size, amenities and location, and its potential to increase in value over the years. </li>
<li>Finding an affordable house that will increase in value over time is important. It will help to fund your next bigger house. When you retire your children left home and you can sell the house and move to a smaller condominium. The extra money funds your retirement.</li>
<li>Always compare your home loan interest rate with the market rate. Negotiate with your bank periodically. </li>
<li>Use <a href="https://www.imoney.my/articles/understanding-home-loan" target="_blank">Flexi Home Loan</a>, so that when you have extra money you can pay down extra loan amount to reduce interest cost or shorten loan tenure. When you need money, you can also withdraw the extra loan payments you made to the Flexi Home Loan account. So instead of keeping fixed deposit which gives you 2%-3% interest income, keep this money in your Flexi Home Loan account to reduce your interest expenses which is at around 4.4%-5.5%.</li>
</ol>
Car
<br />
<ol>
<li>Second hand simple model (e.g. MYR60,000 or less) vs brand new luxurious model (above MYR300,000)</li>
<li>Use your extra payments made to Flexi Home Loan, instead of car loan, to fund your second hand car. (Home loan interest, as at today, is much lower than car loan. Note: Interest rate used for home loan is effective rate, interest rate used for car loan is flat rate. 3% flat rate of a 3-year car loan has effective rate of around 5.7%. The effective rate for home loan on the date of this post is around 4.4%.)</li>
</ol>
Education<br />
<br />
Student loan was almost unheard of during 1980's. It is a ridiculous loan that exists only because the university's fees has gone extortionately high. Here are a few comparisons:
<br />
<ol>
<li>Quality public school fee (FREE) vs private school fee (MYR19,000 - MYR85,000 per annum)</li>
<li>Local public or semi government funded universities (around MYR50,000 for entire 4 year course) vs overseas universities (minimum MYR400,000 to study 3 year in UK). For courses like accountancy, students can even study and take the overseas professional exam in Malaysia.</li>
<li>Low education fees means you can free yourself from the financial slavery of student loan or save your parents' retirement fund. </li>
</ol>
Choose your lifestyle<br />
<br />CThttp://www.blogger.com/profile/14795176144151486949noreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-37276215634573672832017-12-31T16:59:00.003+08:002021-02-18T23:12:51.220+08:00Bitcoin et al - Making Sense of CryptocurrencyLike every economy bubble in human history, i.e. Tulip mania in 1600s, silver bubble in 1980s, Dotcom bubble in late 1990s, housing bubble that led to subprime crisis in 2008, etc, this cryptocurrency mania will also end badly. However, it doesn’t mean that we should avoid it entirely.<br />
<br />
From investment point of view, there are 3 things we need to be very clear about bitcoin and its sort of altcoins like Ethereum, Litecoin, Ripple (XRP), etc.:<br />
<br />
<ol>
<li>FIRST: Speculative. It is highly speculative for now. You really should not say you invest in bitcoin or any other cryptocurrency (altcoins). You can only say you put a bet on bitcoin or altcoins.</li>
<li>SECOND: But it is REAL. The technology, i.e. blockchain, behind cryptocurrency is revolutionary and is REAL. It will change the world entirely and significantly. It will especially change the global financial and banking system in probably a decade or two. Not now. There are also real and practical economy usage for these cryptocurrency especially on the international trade and settlement front (on top of the black markets for drugs, guns and sorts., smuggling, tax evasion, money laundering, etc.). <b>It will eliminate inefficiency</b> in international trade and payment settlement. </li>
<li>THIRD: Scams in the name of cryptocurrency. In this unregulated wild wild west of cryptocurrency world, there are a lot of scams. There are many pyramid schemes and outright scams disguise as ICO, cryptocurrency and even as exchange. They use the name of cryptocurrency to con investors. Be very very careful.</li>
</ol>
<br />
We must know clearly that cryptocurrency at this point of time is like internet company before dotcom bubble. Some will survive the definitely inevitable crash, but MOST will fail, will lose all its value and will never be seen again.<br />
<br />
<div style="text-align: center;">
<script type="text/javascript"><!--
google_ad_client = "ca-pub-0452912864109724";
/* FPM Stock investing */
google_ad_slot = "9485754637";
google_ad_width = 336;
google_ad_height = 280;
//-->
</script>
<script src="http://pagead2.googlesyndication.com/pagead/show_ads.js" type="text/javascript">
</script>
</div>
<br />
<br />
We cannot ignore crytocurrency. They will change our world for sure. But we must know, at this point, any digital coins we bought are akin to venture investment. It is a BET on new start-ups (refer to the teams who created digital coins.) with highly speculative valuation. It is not a safe value investment.<br />
<br />
In another word to common persons like you and me, for simplicity, buying coins is a bet, not an investment.<br />
<br />
<br />
<b>Lesson from History (Before we BET)</b><br />
<br />
Let’s us refresh our memory of a not so distant history. There were only a handful of websites like Amazon and ebay survived the burst of dotcom bubble in year 2000. They proceeded to revolutionize the world entirely, bringing the original vision of internet to our life. But numerous websites like Pets dot com, etoys, etc. failed and disappeared forever. Their investors lost all their money. Some dotcome companies like AOL, Yahoo, dragged on for years into obscurity.<br />
<br />
<div style="text-align: center;">
<script type="text/javascript"><!--
google_ad_client = "ca-pub-0452912864109724";
/* FPM Stock investing */
google_ad_slot = "9485754637";
google_ad_width = 336;
google_ad_height = 280;
//-->
</script>
<script src="http://pagead2.googlesyndication.com/pagead/show_ads.js" type="text/javascript">
</script>
</div>
<br />
<br />
IPO price of Amazon was US$17. At its height before the dotcom crash, the price was $100. Right after the dotcom crash the price fell below $10. Today, Amazon share price is above $1,100 per share. Pets.com IPO price was $11. The price fell to mere $0.19 before the announcement of liquidation. US$300 million of investors’ money were wiped off to zero.<br />
<br />
You just have to pick the right horses. (and yes, again, it is a BET. Not investing.)<br />
<br />
For cryptocurrency now, at the end of year 2017, it is like the dotcom companies at probably 1998 of the build-up of internet dotcom bubble. The CRASH is inevitable. The questions are, when? And which coin(s) will survive subsequently and prosper into greatness to change the world?<br />
<div>
<br /></div>
<div>
<br /></div>
<div>
<blockquote class="tr_bq">
Buy only with the money that you are ready to lose all. Don’t bet your life savings for sure, and don’t even bet with an amount that you will feel painful to lose. Cryptocurrency is a highly speculative play for now.</blockquote>
</div>
<br />
<br />
<div>
1. Bitcoin et al - Making Sense of Cryptocurrency</div>
<div>2. <a href="https://personalfinance.financialplanningmalaysia.com/2021/02/blockchain-bitcoin-et-al-making-sense.html" target="_blank">Blockchain & Bitcoin et al - Making Sense of Cryptocurrency (2)</a></div>
<br />
<br />
CThttp://www.blogger.com/profile/14795176144151486949noreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-62674153940104545872013-06-25T22:10:00.000+08:002013-06-25T22:10:09.125+08:00Koperasi Loan – The Personal Loan for Employees of the Government, Statutory Bodies, Selected Government-Linked Companies and Municipal Councils<b>KOPERASI LOAN – The Personal Loan for Employees of the Government, Statutory Bodies, Selected Government-Linked Companies and Municipal Councils</b><br />
<br />
Are you an employee working in a government department, a statutory body, a government-linked company (“GLC”) or a municipal council? If you are, you could be one of the lucky Malaysians who qualify for <a href="http://www.imoney.my/koperasi-loan">Koperasi Loan</a> – an easy-approval, low-interest loan with an ultra-convenient loan-repayment mechanism.<br />
<br />
<br />
<h3>
<b><u>What is a Koperasi Loan?</u></b></h3>
<br />
A Koperasi Loan (or Credit Cooperative Loan) is a type of loan that is reserved specifically for workforce of government departments, statutory bodies, selected GLCs and municipal councils of Malaysia. The amount that can be borrowed from a typical Koperasi Loan starts from as low as RM1,000 all the way up to RM300,000. Loan periods range from one year to 25 years.<br />
<br />
As a financial product, a Koperasi Loan resembles a personal bank loan in almost every way. It involves the lending of a sum of money from an institution to a borrower, at terms which are agreed upon by both parties. And just like any personal loan, a Koperasi Loan can be taken for any purpose: from settling a debt, starting a business, getting married, buying a home or a car, financing your children’s education to taking a holiday, just to name a few.<br />
<br />
Ultimately, the greatest difference between a Koperasi Loan and a conventional bank loan lies in the fact that the terms of a Koperasi Loan are usually much more flexible and “borrower-friendly” for those who are eligible to apply.<br />
<br />
<br />
<h3>
<b><u>Key Difference between a Koperasi Loan and a Conventional Personal Loan</u></b></h3>
<br />
<b>Interest Rate:</b> Generally speaking, the interest rate of a Koperasi Loans is almost certainly much, much lower than that of a conventional bank loan. As at June 2013, the lowest prevailing interest rate for a Koperasi Loan is 3.99%, compared to 7.6% for a consumer bank.<br />
<br />
<b>More Flexible Criteria:</b> Koperasi Loans are, on the whole, more lenient in the approval process compared to conventional bank loans. In fact, Koperasi Loans can even be approved for borrowers with bankruptcy status, as well as those who could not get loans from banks due to less-than-desirable track records in the Central Credit Reference Information System (CCRIS) and the Credit Tip-Off System (CTOS).<br />
<br />
<b>Repayment Method:</b> Repayment for a conventional bank loan is done at a bank branch, via an ATM or through some form of direct-debit arrangement from a bank account. Repayment for a Koperasi Loan is much simpler – it is conducted via direct deduction from one’s salary.<br />
<br />
<b>Loan Payout:</b> An important thing to take note about Koperasi Loan is that it does not disburse 100% of the loan amount to the borrower. Usually, a percentage of the loan amount is retained, which can be interpreted as “one-time charge” incurred by the borrower. The percentage retained can be up to 10% of the loan amount, or more.<br />
<br />
<br />
<h3>
<b><u>Where do I get a Koperasi Loan?</u></b></h3>
<br />
There are many different types of Koperasi Loans all managed by different cooperative entities. To apply for one, you could either approach such entities or go through an authorized agent. An easier alternative is to use a <a href="http://www.imoney.my/koperasi-loan">Koperasi Loan comparison table</a>, where you can compare the rates and apply for one online at no charge.<br />
<br />
<div style="background-color: #cccccc; padding-left:5px">
<br />
This article is brought to you by <a href="http://www.imoney.my/">iMoney.my</a> – Malaysia’s biggest comparison site providing free information about home loans, personal loans, credit cards and investments.<br />
</div>
<br />
<br />CThttp://www.blogger.com/profile/14795176144151486949noreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-27861736249146613092007-05-02T17:55:00.000+08:002007-05-02T18:29:26.512+08:00Prosper for lifeIt bothers me when I read a financial blog "<a href="http://www.frugalforlife.blogspot.com">frugal for life</a>". It is a blog dedicated entirely to living a frugal and simple life.<br /><br />I agree living frugally. I always believe we don't need to spend (or spend only minimal) to live to the fullest. However, I disagree to make frugal an objective of life. For instance, I will not disagree a statement like this "Live to the fullest without spending much". It is still about being frugal, but only as a means to the objective of living to the fullest.<br /><br />There is a major difference between "buy cheap things" and "buying quality things cheap".<br /><br />I agree with the blogger's message, though not her emphasis on FRUGAL instead of satisfaction of life (frugally).<br /><br />It will be better if it is about prosper for life without waste.Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-13052235.post-1156305190714529112006-08-23T11:42:00.000+08:002006-08-23T17:13:57.800+08:00Saving Tips (2): FoodDepending on your lifestyle you can save quite a fair bit from your daily food.<br /><br />1. Instead of eating out for dinner daily, why not "ta pao" (take-away) mix rice, noodles, etc.? A two-person meal in a restaurant with three dishes can easily cost you more than RM30. While take-away for two persons will not cost you more than RM10. (I do know some middle class couples who dine out every evening.)<br /><br />2. Call your mother and ask her for some good recipes. Cook at home. Spend the later part of your evening play with your computer and/ or children.<br /><br />3. Stay with your parents or parents in law or invite your parents or parents in law to stay with you. Depending on your family, this can be one of the biggest saving opportunities.<br /><br />4. Are you too used to have your lunch at expensive outlet with your colleague? A quick reminder here, take-away mixed rice lunch is usually less than RM5. What about packed lunch from home?<br /><br />5. Meeting your friends for dinner? Such outing usually ends up at expensive restaurant. Tell your friends you are on budget. There is nothing to be ashamed of. (I can be more blunt, I told some of my friends that I simply hate expensive restaurant. I will join them after their expensive meal.) A better idea is to schedule a gathering after dinner at mamak store.<br /><br />6. Do away with beers, cigarette and pubs. Stay at home with your family or go out with your friends to mamak store. If you are surrounded by friends that drink beers, smoke and go pubs and you are financially strained due to such habits. You are probably with the wrong company. :-) Join another group of friends.<br /><br />7. Find a place for good coffee at good price, instead of drinking Starbuck's cafe latte.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-13052235.post-1156185332601969802006-08-22T02:34:00.000+08:002006-08-22T02:53:10.590+08:00Saving Tips (1)I should have started the topic of saving strategies long time ago. Let's begin with the first saving tip with idea from MSN's Money...<br /><br />There are things in life that you should not buy new. These are <a href="http://articles.moneycentral.msn.com/SavingandDebt/FindDealsOnline/10thingsYouShouldntBuyNew.aspx?GT1=8473">10 of them</a> among all. By Liz Pulliam Weston.<br /><br />1. Books<br />2. DVDs and CDs<br />3. Little kids' toys<br />4. Jewelry<br />5. Sports equipment<br />6. Time shares<br />7. Cars<br />8. Software and console games<br />9. Office furniture<br />10. Hand tools<br /><br />Read the <a href="http://articles.moneycentral.msn.com/SavingandDebt/FindDealsOnline/10thingsYouShouldntBuyNew.aspx?GT1=8473">original article</a> on why you should not buy these items new and how to save money from buying second hand with bargain, sharing, renting, etc.Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-13052235.post-1129296964707102482005-10-14T21:31:00.000+08:002005-10-27T00:24:23.753+08:00A way of life<span style="font-weight: bold;">A way of Life: Spending, saving and living every moment</span><br /><br />How to enjoy the present (carpe diem, seize the day, my friend) and save for future? Let us compare these three types of lifestyles summarized in three scenarios.<br /><br /><span style="font-weight: bold;">Lifestyle ONE</span><br /><br />You walked into this expensive restaurant in Bangsar with your friends and family. You were a bit intimidated by the prices in the menu though you knew you could afford them. Uncomfortably you made the order and wondered how much the bill is going to be. You felt a little bit of tension every time before an item from the menu was mentioned. You forced yourself not to look at the prices and told yourself, hey, live for the moment, not for the money.<br /><br />After the meal, though you had strong desires to order another Irish Coffees and a special dish of desert, you controlled and told yourself that delay gratification is the way to save for a better future.<br /><br />At times, you wonder whether you really are living for the moment.<br /><br /><span style="font-weight: bold;">Lifestyle TWO</span><br /><br />You walked into this expensive restaurant in Bangsar with your friends and family. You were not intimidated by the prices in the menu as you knew you could afford them should you visit such restaurant less frequently. Price did bother you when order was made but you knew better that, for now, you don't have to worry about money. You called the most delicious item (happened to be the most expensive as you accidentally peeped over the price) and two Irish Coffees for yourself. Why should I delay gratification? Live for today, you said (and unknowingly defined your version of "live for today").<br /><br />When you received your credit card statement a month later, you weren't really lived for that moment. Due to such consistent financial choices of instant gratifications in many expensive ways, you have cumulated quite an amount of credit card debts and you weren't really "living for the moment", in the way you define the phrase, for many months later. The repercussion to "live-for-the-moment-and-spend" was painful.<br /><br /><span style="font-weight: bold;">Lifestyle THREE</span><br /><br />Up front, you made a conscious choice not going to that expensive Bangsar's restaurant. You walked into this nice restaurant (let's say one of those few restaurants beside Petaling Jaya States' UOB, half the price that of Bangsar's) with your friends and family. It was a little elegant air-conditioned restaurant with warm yellow lighting. You can choose to sit either outside for natural breeze or inside for cool air. You had a great time dining with your family and friends. You did not realize the prices in the menu as you knew it is really affordable. At the end of the meal you ordered few ice creams and deserts for your family and friends and two cups of coffee for yourself. You looked at the bill, "so cheap," you thought. This was the first time you thought about money in the entire evening. You insisted to pay for the meal happily, oh, and gratefully, as you realised that things, recently, were so affordable to you. You reminded yourself to send a cheque to the charity that you were dedicated to.<br /><br />Money wasn't an issue, not even crossing your mind through out the dinner, as it was simply so affordable. You fulfilled all your instant desires and gratifications. Everyone had a great evening and you were grateful that you could afford such a great meal even if you come here every week. Many years later, you think, "I really lived in those moments."<br /><br />It is quality lifestyle and not high-priced lifestyle that you are going after. Due to such consistent financial choices, where decisions were made up front for a quality yet much cheaper lifestyle and habitat, you managed to save for your future yet without sacrifice in living the moment. There were always instant gratifications without the need to think about money now and when your credit card statement comes.<br /><br /><span style="font-weight: bold;">Comparison</span><br /><br />Many financially cautious persons choose lifestyle ONE. It is a lifestyle of control, rigid, packed with unsatisfied desires, unfulfilled gratifications and bitterness of others affluence, and eventually ended with regrets of not living for those past moments.<br /><br />Many "living-for-the-moment-and-spend" persons choose the lifestyle TWO. The repercussion of such carelessness with money is painful. You could die broke.<br /><br />I loathe lifestyles ONE. Every time we cut down our small satisfactions in life we increase our bitterness. This lifestyle always makes us feel poor. I fear of lifestyle TWO. I am afraid of dying broke, owe money and living on the street.<br /><br />Lifestyle THREE is a lifestyle where money doesn't stand in the way for us to enjoy the moment. It is the way to live for today yet to save for future. It is not about "scrooge" at the moment when you need to spend for gratification. It is about sensible choice for completely different price range of lifestyles and habitats so that you can fill your heart desires and gratifications instantly and financially comfortably. When you keep realising things are so affordable everywhere you go, the only feeling you can have is gratefulness.<br /><br />In a more conventional way of saying, yes, it is about live within your means. But the choice is made up front of choosing a lifestyle, not saving and penny-pinching at moments in live.<br /><br />Make a wise choice right from the beginning and don't "scrooge" for the moment. Live now, with efficacy.<br /><br /><br /><span style="font-weight: bold;">Note:</span><br /><br />* I am not saying you should not go to restaurants in Bangsar. I am stereotyping and conveniently using them to illustrate a point. I am saying you should not go to a place where the prices bother you, either when you spend or when you received your credit card statements. I am saying you should go to a place where prices are well below your affordability, and that you can spend to your heart desire without the issue of money, now or future. Even Restaurants in Bangsar can be such a place when you are financially affluent.<br /><br />* This is just an illustration of point using the difference between an expensive good restaurant and a cheap good restaurant. It is the same for other major items, between BMW 5 series and Proton Saga (Azizi Ali's favourite), between a 48" Plasma TV and a 21" cheap TV, between eat out regularly at restaurants and "ta pao" back home, between a home in Bangsar (again!? Hey chentong, what is your problem with Bangsar?) and a home in Shah Alam, between vacation in London and vacation in Bali, etc.<br /><br />You have opinions on this issue? Leave a comment below anonymously.<br />You think the idea is great? Click on the mail icon below and forward this to your friends.Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-13052235.post-1126364472457697572005-09-10T22:54:00.000+08:002008-03-28T15:35:41.920+08:00KWSP/ EPF for home loanIf your house is under your spouse's name, you can now withdraw your kwsp/ epf to reduce or redeem housing loan for your spouse.<br /><br />Check it out here at kwsp/ epf web site, under <a href="http://www.kwsp.gov.my/index.php?ch=p2members&pg=en_p2members_wdrawtype&ac=40">Member Housing Withdrawal's Section G</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-1124010622276109082005-08-14T16:25:00.000+08:002008-03-29T02:10:15.732+08:00Have you been to KWSP (EPF) web site recently?It is quite amazing to realize how much the web site has improved over the years. We can now get many simple services and queries done without going through the hassle of queuing up in front of KWSP/ EPF's service counter. It is now one of the better government web site.<br /><br /><a href="http://www.kwsp.gov.my/">http://www.kwsp.gov.my</a><br /><br />Withdrawal<br />You can download KWSP/ EPF's Forms and guides for various types of withdrawals from the web site, i.e. <a href="http://www.kwsp.gov.my/index.php?ch=p2life&pg=en_p2life_house">housing withdrawal</a>, <a href="http://www.kwsp.gov.my/index.php?ch=p2life&pg=en_p2life_retire">retirement (50 years) withdrawal</a>, etc.<br /><br /><blockquote>By the way, when was the last time you withdrew your Account II to reduce your house loan? If it was more than three years ago, it is now time to make another withdrawal. It makes financial sense to withdraw your EPF money to reduce your home loan.<br /></blockquote>Payment<br />Same for the application for making periodical KWSP/ EPF payments, employers KWSP/ EPF payment, etc. you may find that the guides and forms are readily available for download.<br /><br />Tools<br />There are tools to make financial calculations. You can calculate your KWSP/ EPF savings. You can calculate how much you can withdraw from your account II for you housing withdrawal.<br /><br />Statement<br />With i-Akaun you can check your KWSP/ EPF account balance. Don't waste your beautiful Saturday morning queuing up to print out your KWSP/ EPF's statement.<br /><br />Information<br />1. A list of fund managers whom you can invest your money in Account I.<br />2. Types and guidelines of withdrawals.<br />3. Nomination of beneficiaries<br /><br />and more...<br /><br />Check out <a href="http://www.kwsp.gov.my/index.php?ch=p2members">KWSP/ EPF member area.</a>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-13052235.post-1122804301058121562005-07-31T17:45:00.000+08:002005-09-10T22:50:52.966+08:00KWSP (EPF) for retirementIt is reported in today's Sunday Mail that in most cases Malaysians do not have sufficient savings in their <a href="http://www.kwsp.gov.my/">Employees' Provident Fund (EPF)</a> Or Kumpulan Wang Simpanan Pekerja (KWSP) for retirement. However, most of them are under the impression that their EPF/ KWSP contributions are sufficient for their old age.<br /><br />"Studies have shown that most retirees finished their money within 10 years after their retirement, with the majority using up their money within three years, and from then on they depend on their children for survival."<br /><br />This is interesting, read on.<br /><br />"According to EPF, by the time one reaches 54 years old, which is a year before the retirement age of 55, the average Malaysian usually has RM92,000...<br /><br />The latest survey on the ageing population has shown that Malaysian men live up to 78.6 years old and women 86 years old. This means that you have to make the RM92,000 last for 23 years if you are a man and 28 years if you are a women."<br /><br />This is not a shocking truth. It is a question that majority of us, working as an employee, avoid at all cost. We simply do not want to face the brutal fact that, for most of us, our savings in EPF is simply not enough for retirement.<br /><br />It is about the change of mind set. We can no longer see it as how much we have in terms of assets, but how much income we can earn from the assets that we have. RM92,000 in the form of hard cash will be quickly depleted by inflation and necessary spending. But RM92,000 in the form of <a href="http://www.financialplanningmalaysia.com/fplanning/2005/05/assets-that-generate-income-assetsi.php">income generating assets(i)</a>, with a <a href="http://www.investopedia.com/terms/r/returnoninvestment.asp">return on investment (ROI)</a> of, let's say, 20% will bring you annual income of RM18,400 year after year without depleting the original RM92,000.<br /><br />Yes, the ROI of 20% is a bit too high even as an example and RM18,400 income per annum is still a bit too low for a decent living. Therefore, no matter how, EPF/ KWSP savings alone is not enough under the above brutal circumstances. Assets(i) building is the key to retirement. Even if we enjoy working as an employee, we must build income generating assets(i).<br /><br />Find out more about what is available at <a href="http://www.financialplanningmalaysia.com/pfinance/2005/08/have-you-been-to-kwsp-epf-web-site.php">KWSP's web site</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-1122747023052117592005-07-31T02:01:00.000+08:002005-07-31T02:10:23.053+08:00Top online banking portalsThese are few of the popular online banking web sites<br /><ol> <li><a href="http://www.hlb.com.my">Hong Leong Bank's ezbanking</a></li> <li><a href="http://www.maybank2u.com.my">Maybank's Maybank2u.com</a></li> <li><a href="http://www.citibank.com.my">Citibank's Citibank Malaysia</a></li> </ol>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-1117122842516081252005-05-26T23:49:00.000+08:002005-09-14T01:37:30.176+08:00Joint Bank Account for Married CoupleYesterday Simon and Caroline from Light and Easy’s Light Breakfast Radio Show brought up a very interesting topic, “should a married couple hold joint bank account or should they keep their personal bank accounts separate?”<br /><br />We are in favour of holding a joint bank account. It provided us the discipline to finish off our 20 -year home loan in 7 years. We understand the difficulties and we have solutions to overcome them.<br /><br /><br /><strong>Why joint bank account for married couple?</strong><br /><br />A carefully handled joint account provides a sense of common purpose for the couple. With a joint account it is easier to plan for many activities in life that involve both parties. There is no second guess of affordability which is crucial in managing family’s finances. It makes planning for future, especially for couples with double incomes, much easier. It facilitates the couple in making common financial goals and gives them perspective and a sense of control for the financial future of their family.<br /><br />Such common financial goals include:<br />- planning for retirement<br />- planning to buy a bigger house for a better lifestyle<br />- paying off home loan<br />- a holiday vacation<br />- children’s education<br /><br /><br /><strong>Pitfalls and Solutions</strong><br /><br />Joint bank account seems to work best for couples that have similar spending habits and equally careful about spending. However, not many couples share the same spending habits and philosophies of life. Does this mean they should not have joint bank account?<br /><br /><strong>The best arrangement for a couple is to have a joint account to pay for the family’s common expenditure and to have their own personal accounts too.</strong> The couple must decide a monthly amount to put into the joint bank account and more importantly they MUST agree on what expenses can and cannot be paid from the joint account. Anything outside the agreed expenses, unless mutually agreed, should not be paid from the joint bank account. Any expense that cannot be agreed to be paid out from the joint bank account should be excluded.<br /><br />What should be in<br /><ul><li>monthly installment of home loan<br /></li><li>monthly apartment’s management fees<br /></li><li>pregnancy and hospital expenses<br /></li><li>babysitter fees<br /></li><li>children education fees<br /></li><li>family vacations<br /></li><li>home renovations (do your budget and agree on the budget first)<br /></li><li>regular donations that you and your spouse are committed to<br /></li><li>family investment that you and your spouse are committed to, e.g. a second apartment for rental, a family trust that hold stocks, etc.</li></ul>What should be paid individually or shared fairly outside joint account (unless otherwise agreed by both parties)<br /><ul><br /><li>gift to spouse (hey, it’s a gift from you.)<br /></li><li>eat out (just pay and share unless you enjoy the accounting part to tie the number every time you pay)<br /></li><li>eat out with each other's parents, brothers, sisters, friends, etc.<br /></li><li>groceries (yes, it is regular expense, probably too regular and petty too. More over the amount is not fixed. There will be a lot of accounting headache if you use the joint account to pay. Just share out the payment on the spot or do the regular IOU netting with your spouse.) Alternatively, the husband can just give a monthly sum to the wife for groceries, outside the joint account.<br /></li><li>DVD player that your spouse doesn’t think it should be paid out from joint account<br /></li><li>your own investment portfolio that your spouse is uncomfortable with<br /></li><li>your beauty saloon expenses<br /></li><li>your treats to your friends<br /></li><li>donations for the cause that you, but not your spouse, feel strongly about</li><br /></ul><strong>The Theory</strong><br />There are four “must haves” for a successful joint bank account<br /><br /><span style="color: rgb(102, 51, 102);"><u>ONE: Define usage</u><br /></span>Yes, one of the most important keys to a successful joint bank account is to define the usage of money in the joint bank account. Remember, joint bank account is meant for family expenditure. It involves both parties money. It has to be agreed by both parties before spending it. The right way, therefore is to have a pre-agreed REGULAR expenses that can be paid out from the joint account.<br /><br />Any expense comes incidentally has to be discussed and agreed by both parties. Since many family expenses could come incidentally and if you foresee such discussions will lead to arguments, you may just want to exclude these items from paying out from joint bank account.<br /><br /><span style="color: rgb(102, 51, 102);"><u>TWO: Simple and predictable</u><br /></span>Keep the arrangement simple. Try not to involve the joint account with daily petty expenses. Besides creating accounting havoc for both of you, it may lead to argument since the nature and amount of such expenditure is unpredictable. You save the hassle from agreeing or arguing over petty expenses. For such expense you may just pay and share the cost fairly on the spot.<br /><br /><span style="color: rgb(102, 51, 102);"><u>THREE: Build trust</u></span><br />Once agreed, never break the rules and you will never break trust. Ultimately what glues all the operations together is the trust that you have in each other that the money in the joint account will be handled carefully, by the agreed rules and treated with respect.<br /><br />The worst comes from breaking the trust of your spouse by taking the money out for own use without his/ her knowledge. Once the trust is broken, any arrangement would be difficult to carry out. (Can I make you swear that even if you are personally financially ruined, you will not touch the money in joint account that provides security and future to your family?) :-)<br /><br /><span style="color: rgb(102, 51, 102);"><u>FOUR: Fair share of input</u></span><br />Failure of a joint bank account could come from not being able to keep up your fair share of input. Value each other's abilities to earn and set a fair (the word is FAIR, not EQUAL) amount for each other to contribute into the joint account. If you or your spouse cannot put in that much, set a lower amount. Once decided, keep the promise to contribute.<br /><br />With this, no matter how different a married couple’s spending habits and life philosophies are, they will be able to operate a successful joint bank account that provides the family financial certainty and a sense of togetherness. So do keep a joint bank account for your family and a personal bank account for your own joy of spending.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13052235.post-1116671282509234722005-05-21T18:13:00.000+08:002005-05-28T16:26:14.016+08:00Personal finance: The PrincipleAt different stages of life we need to make financial decisions, critical personal financial decisions that will have long term irreversible impacts upon our financial well being and quality of life, e.g. buying a house, going for studies, sending our children to college, getting a loan to start a business, etc.<br /><br />These decisions are critically important due simply to one reason - <strong>we are not rich enough</strong>, yet. We need to be careful in making these decisions simply because it may cost us dearly. Sure, it is all about <a href="http://www.financialplanningmalaysia.com/financialplanning.php">assets(i) building</a>, wealth creation and to be rich enough one day so that error in such decisions will be affordable and will not require thinking too deeply. However, along the journey for affluence we must ensure these personal financial decisions will not lead to financial disaster that will hamper our wealth building efforts.<br /><br />In short, the single most effective way to deal with personal financial issues is to be RICH enough that mistakes are always within our budget. When we are not rich, when we are still on our path in search of wealth, we must then be careful of making such personal financial decisions. We make these decisions in a way that they will not obstruct our wealth building efforts.<br /><br />This is the basis of all personal finance ideas. This is THE principle of Personal Finance.Unknownnoreply@blogger.com0