Showing posts with label planning. Show all posts
Showing posts with label planning. Show all posts
Friday, 23 May 2014
Labels:
budget
,
cut cost
,
expenses
,
frugal
,
money
,
planning
,
savings
,
wealth
1st Life-Saver Tip - Cook your own meal.
I can't deny food is the giant that burns a hole in your wallet. What's more, food consumption made daily, hence, you need to first save on the money spend on food. Try to spend more time cooking at home. If you're a busy person, perhaps arrange a ratio of 4:3 over dining out and cooking at home. 4 days of cooking, 3 days of eating out.
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Want to save money? Here's 6 things you should do
We all know that saving money is part of the essential way of life. You can earn as much money as you possibly can, but without saving it all goes down the drain like water.
Perhaps you already know that you should be saving money. Or maybe you wants to save even more than you already did. Higher expenses and price of goods getting more expensive all the time. It just wouldn't stop! You can't seem to find a way to control your expenditure any more. Sometimes you didn't even realize that you did not have much money left, and its only the second week of the month! Salary is not until the end of the month.
Saving money comes from cutting your spending. All you need to do is just to follow the "life-saver tips to saving extra bucks". I am going to show you. Make it a habit and subconsciously you may realize you have a fatter wallet than before.
*Image courtesy of FreeDigitalPhotos.net
1st Life-Saver Tip - Cook your own meal.
I can't deny food is the giant that burns a hole in your wallet. What's more, food consumption made daily, hence, you need to first save on the money spend on food. Try to spend more time cooking at home. If you're a busy person, perhaps arrange a ratio of 4:3 over dining out and cooking at home. 4 days of cooking, 3 days of eating out.
Assuming you have to spend $10 every meal when you eat out. Cooking at home may just cost you $6. You saved $4 for a meal. Now, calculate how much you can save for 3 meals in a day, for 4 days. You saved about $360 in a month!
2nd Life-Saver Tip - Make a weekly budget
I can't stress how important is this. Setting up a budget keeps you in control. Each week, estimate how much you are going to spend. And set a budget of how much you are likely to spend on variable expenses (such as food, clothes, entertainment, etc).
Yes, I know this is tedious. By reading the title it turns you off. But if weekly budget sounds too tedious for a busy person like you. Try starting out with a monthly budget first. You won't notice at first,.but you will see the effect at the end of the month. It works like magic!
3rd Life-Saver Tip - Don't buy on impulse
When you first saw the things you want to buy, pause. Wait for another day before you buy it. The point is, you may not even know if you really need it. It may somehow be an impulse emotion. If you wait for another day you may forget all about it, thus save you 200 bucks!
4th Life-Saver Tip - Plan for big-ticket items
Let me explain. Saving doesn't mean you need to be frugal. The good news is that you can still buy your big ticket items! But, you must plan for it.
Big ticket items such as cars, luxury items, gadgets or designer clothes requires planning purchase stage. How much do you have left after buying it? Can you survive the remaining days before your next income? How much does it mean to you to own this item?
5th Life-Saver Tip - Credit card is the Angel and the Devil
A simple notch, if you are a good money planner, credit card gives you plenty of benefits. There are many banks offering discount on merchants or retailers that you can take advantage from. If you want to use it, find credit cards that offer benefits for your necessity or daily spending. Such as cash back value for grocery shopping, or pump of gas or petrol for your vehicle.
But if you care less about credit cards benefits, please do not use a credit card at all. Use cash instead.
And if care less and insist to use credit cards because it makes you look good and prestigious...use at your own risk.
6th Life-Saver Tip - Make it a habit
You can save if you are consistent. If it was done for a month just because you're running out of money, it won't last. It may happen perhaps the next 3 months again. By saving money, I mean consistency. Make it a habit, changing your lifestyle through all these life-saver tip and trust me, you will worry less about money than you did before!
Saturday, 17 May 2014
Labels:
budget
,
car
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cut cost
,
expenses
,
frugal
,
malaysia
,
money
,
personal finance
,
planning
,
savings
Can you believe it if I tell you, ever since graduated for more than half a decade...I have not own a car yet.
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The truth about owning a car
This is a very controversial topic, I would say. A simple question to raise to everybody.
Is it good to own a car? Yes or no?
My answer a is big NO.
Can you believe it if I tell you, ever since graduated for more than half a decade...I have not own a car yet.
Yes, I know I know....you probably reason out saying that you need car because you need it to travel to work. You need it because its more convenient. You need it because its part of life.
I understand, and I have to agree some people were forced to own a car because of travel distance to work. Thanks to our atrociously, shamelessly poor Malaysian public transport infrastructure. Now many of us need to own a car and owe for debt. A very bad debt.
My piece of advice, if you do not need to own a car, never buy (ohh....i mean borrow loan) for a car! NEVER!
If you were meant to enjoy life and have car for fun and life, then this post isnt for you anyway, because its all about cost saving.
Here's my 5 reasons why you should not own a car:-
- Car is a bad debt. The moment you bought your very first car, the price of the car immediately drop.
- You don't just pay for car instalment. You pay for your car insurance, car petrol, and car maintenance.
- If government raises petrol price again, your expenses gradually increase, because your car needs to feed!
- Car instalment loan interest rate is fixed. No matter how much more outstanding you owe the bank, they still charge you the same interest rate. Means bank already earn your money very beginning.
- Tendency to hangout is higher. What is the point if you own a car and you don't drive out? So it means hangout more, spend more, and save less money.
I don't mean that forever you should take lrt or bus anywhere else. It sucks if you were forced into such situation your whole life. (Neither would I do that).
Here are 3 reasons when you should own a car:
- When you are able to pay a lot more downpayment or pay by cash. The lesser you owe the bank the better, because interest rate is fixed. You don't want to let bank take your money away!
- Your car helps you to earn MORE money. Yes is true. Own a car if it helps you to earn more money despite car insurance, petrol and maintenance.
- Your lifetime commitment is lesser. You own a house, paid off clean, or rented out for passive income. Your business is taken care of. You have very little commitment...then car is no problem for you.
Yes some people can have many other reasons to own a car. A status, glamour, show off, reputation, etc, etc. Common isn't it? Not unfamilliar.
No wonder Malaysia's car ownership is the THIRD highest in the world.
Feel proud? Hold on...you should read this one below.
It says that Malaysian car is second most expensive in the world. Its ashamed if somebody wants to own a car because they want glamour and willingly spend so much money for a high-end car. And struggling to dig his/her pocket to pay off loan.
"My advise, PLEASE don't buy a car if you can't afford or do not need one. "
Tuesday, 13 May 2014
Labels:
business
,
dream
,
entrepreneur
,
innovation
,
motivation
,
networking
,
opportunity
,
passion
,
planning
,
success
,
wealth
Innovation
*Image courtesy of FreeDigitalPhotos.net
It is the core of entrepreneurship. Especially during digital era where entering small business is too easy for everyone. Visit GoDaddy.com for a site, sign up with HostGator.com for a host, voila, you open for business!
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4 Basic Rule Every Entrepreneur Should Practice
Every year there are thousands of entrepreneurs born and ready to rule the world. And almost (yes, I mean almost all) of these successful entrepreneurs practice these FOUR RULES of entrepreneurship. I called it MINO. The big four of MINO are: Motivation, Innovation, Networking and Opportunity.
Motivation
This is the ground rule of being an entrepreneur. Every one of us always have to start somewhere, and it is MOTIVATION that push us forward. What motivates you to be an entrepreneur? Is it passion? Freedom? Get away from regular corporate life? Or family?
You identify what is your motivation, and set a goal towards what drives you to be a successful entrepreneur. This is how you can reach where you want to be.
*Image courtesy of FreeDigitalPhotos.net
It is the core of entrepreneurship. Especially during digital era where entering small business is too easy for everyone. Visit GoDaddy.com for a site, sign up with HostGator.com for a host, voila, you open for business!
Sometimes when things become too easy, its where the hardest problem arise. When everyone are doing the same thing doesn't make you any different with other entrepreneurs out there. Millions of them!
Which is why we need innovation. How are we different from competitors? How to serve the customer the same thing in a different manner?
Before Facebook, MySpace and Friendster used to dominate the social networking world. But Facebook stands out due to innovation. The creation of 'Newsfeed' is proven to be something out of the world. Offering the same service with innovation. That's how Facebook stands out.
Networking
*Image courtesy of FreeDigitalPhotos.net
Networking can be done with anybody. Seriously! As an entrepreneur, you should always start by sharing your success or problems with your family or close friends. Listen to them, get their support, this is what keeps entrepreneurs going.
*Image courtesy of FreeDigitalPhotos.net
Even for some entrepreneurs, networking is parts and pieces of success in the business. Always know someone better than you and learn from experience of veterans who have 'been there, done that'.
“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” - Warren Buffett
Opportunity
*Image courtesy of FreeDigitalPhotos.net
Every entrepreneur will always have to start somewhere. Where did you begin your journey as an entrepreneur?
*Image courtesy of FreeDigitalPhotos.net
When an entrepreneur started their journey, its all because they have identify an opportunity. An unmet needs or new solution that can reach out to their customers. You could have all the motivation you can get, but without the opportunity to start a business, you are still standing at the beginning of the road.
Thursday, 8 May 2014
Labels:
etf
,
investment
,
low risk
,
personal finance
,
planning
,
retirement
,
savings
,
unit trust
,
wealth
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Two types of safe and low risk investment you can find
Let me try to illustrate out two types of people that should be reading this one.
FIRST PERSON, you do not like investment because is risky. You don't know what investment is out there you can earn money from. You rather save it under Fixed Deposit (FD), safe and sound. Or even worst, you prefer not to do anything and leave it in the bank!
SECOND PERSON, you want to invest. But you still have fear of the risk. And you don't know where to start, and what kind of investment suitable for you.
I am going to show you no-brainer guide to choosing low risk investment.
*However if you are so good at it, please ignore this post because you probably have better alternative to earn bigger chunk of cash.
2 TYPES OF SAFE AND LOW RISK INVESTMENT
1. Mutual fund/Unit trust.
Probably you have heard of it somewhere. This type of investment doesn't work like a single stock/share.
Probably you have heard of it somewhere. This type of investment doesn't work like a single stock/share.
Unit trust is basically controlled by fund manager who will allocate your money to invest in various sector/industry and companies.
- WHY INVEST IN UNIT TRUST???
Because, if money is allocate to different sectors, your risk is diversify. If Company A is losing money (share price drop) your money is covered back by Company B or C which is still earning money. If you invest in this over the long-term, the chances of your unit trust rate of return is higher compare to normal stock market investment.
- HOW DO I START?
Simple, start doing your homework. Go to Google to look for 'what is mutual fund?' to understand it better.
And then, you can look for banks who offer unit trust services. Notable one in Malaysia would be Public Mutual. They have won multiple awards for being best Malaysia Unit Trust player in the market.
Call them, they will arrange a unit trust consultant to look for you. (THEY ARE MORE THAN HAPPY TO LOOK FOR YOU! ITS AGENT'S COMMISSION)
- WHAT SHOULD I LOOK OUT FOR UNIT TRUST?
Do take note that invest in unit trust is quite expensive. They charge you a fee of 5.5% every time you invest (you're paying fund manager to invest for you anyway).
Which means - you invest RM 1,000. They will take RM55 as service charge.
And disadvantage is that you cannot control what they have invested. So please constantly look at your investment, if it is not earning as much within a 5 years' time. Start looking at other fund that is performing better.
2. Exchange- Traded Fund (ETF).
It works slightly similar to unit trust. But instead of controlled by fund manager, they track the KLCI index. Its very technical, probably you need to Google again to understand further.
It works slightly similar to unit trust. But instead of controlled by fund manager, they track the KLCI index. Its very technical, probably you need to Google again to understand further.
- WHY INVEST IN ETF???
Here is the sexy part. ETF is cheap! Low risk, and cheap. It doesn't charged a service fee like unit trust. It only charge normal broker fee just like normal stock (broker fee ranges from 0.25% to 0.5%). And they look at index, meaning if the index has a total of 100 companies, its share price is diversify too. Its advisable to invest in it long term because in a short period of time you can't see much differences. BUT in long term, the reward is there.
"The younger you invest the better its value is!"
- HOW DO I START?
In order to invest in ETF, you need a broker account. The link below has a list of available service in Malaysia as well as their charges.
The best thing, you can start investing online. If you don't know where to start...choose a broker from the list and call them up. They will arrange a broker to serve your account.
- WHAT SHOULD I LOOK OUT FOR ETF?
There is a drawback, ETF in Malaysia is still not matured. They just started not long ago, unlike countries like US which have started ETF more than 10 years ago. So you need to really study carefully what is the potential ETF, and what index/company they are referring at.
A better plan is to invest to developed market for example US. Although their broker fee to invest in overseas is extremely high, but, is safer and more profitable in the long run comparing to Malaysia's ETF.
************************
As a conclusion, you now know where to start, so delay no further. Even if you think it is not suitable for you, but at least understand them. You never know when you may need it.
Its better than putting your money in FD. Our Malaysia inflation rate was 3.48% as of March 2014. Do you think FD can earn you money? I don't think so, moreover FD doesn't not allow you to withdraw money out without charging you penalty or not giving back interest. So which is better?
Monday, 28 April 2014
Labels:
dream
,
entrepreneur
,
happiness
,
happy
,
life
,
passion
,
planning
,
wealth
10 Signs You Are Ready to be an Entrepreneur
The confession of an entrepreneur. You may think that you are prepared to venture into entrepreneurship. But deep down in your heart you are still doubting yourself, whether your heart is guiding you the right path...
These 10 signs will tell you are ready to quit your full-time job and venture into the entrepreneur's game.
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*Image courtesy of FreeDigitalPhotos.net
These 10 signs will tell you are ready to quit your full-time job and venture into the entrepreneur's game.
- When you wake up in the morning, first thing you thought of it, "I don't want to go to work!"
- You start day dreaming in your office, thinking of whatever potential business you could have done if you're not working full time.
- You have the desire for this - independence, success, passion and hunger (NOT FOOD!)
- You want to show the world that you are different from most of them. *Pareto 80/20 Rule - 80% of the employees work for 20% of the business owners.
- You have identified an unmet need/solution, which has the potential to be launched as a business
- You do not have huge commitments that force you to stay on your full time job.
- Your family and spouse are supportive of your dream.
- When you have a circle of entrepreneur friends who have "been there, done that". Encouraging you to go for your dream.
- You understand that you are have to focus and work 200% harder than your current full time job.
- You are ready to take the risk, not fearing that you may lose it all should this entrepreneur dream fail you.
If you have 10 signs above, my friend, you are already an entrepreneur. You just didn't know it yet!
By the way we only live once in our lifetime, we should live the life we always wanted.
"Regretting not pursuing our passion is WORST than the regrets of failing one."
Step out there and change the world.
*Image courtesy of FreeDigitalPhotos.net
Thursday, 24 April 2014
Labels:
budget
,
cut cost
,
expenses
,
money
,
personal finance
,
planning
,
savings
,
wealth
How much do you save? A guide to budgeting - PART 2
If you have read my previous post, you would have the idea of cutting expenses in order to save more. And that is the core 'essence' of budgeting.
So the next question would be: How to do budgeting? Where should I start?
Here's how I will show to you:-
STEP 1:
Create a monthly budget planner.
STEP 2:
So here you go, a simple step to budgeting.
Do not delay. Do it today, do it right now, after you finish reading this.
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So the next question would be: How to do budgeting? Where should I start?
Here's how I will show to you:-
STEP 1:
Create a monthly budget planner.
- Inside this monthly planner, you will include all your expenses and how much do you save.
- I will illustrate a simple table for your reference:-
- Why do I need budget planner? Of course you do! So that you know how much you spend. And be aware of the unnecessary spending you made every month. See it with your naked eyes only you'll take action.
STEP 2:
Set a target how much you should spend every month.
If you can do better, track it by weekly or daily. So that you can take control of your spending.
We can start by daily food expenses:-
- Monday - RM 15 (breakfast + lunch + dinner)
- Tuesday - RM 15 (breakfast + lunch + dinner)
- Wednesday - RM 15 (breakfast + lunch + dinner)
- Thursday - RM 15 (breakfast + lunch + dinner)
- Friday - RM 30 (breakfast + lunch + dinner). Since we love TGIF, you may set a higher expenses on Friday.
- Saturday - RM 100 (food + entertainment)
- Sunday - RM 50 (family day)
That makes up to RM 960 a month for food. At least you know where you will spend, you can control your budget more carefully.
*********************
Yes I know, I know. Looks simple, but its tougher to get it done.
Isn't it the same to everyone of us? Steps are simple, but the process is the hardest.
"The only way to do this is to start doing it now! If you wait, you gonna forget about it the next minute."
Do not delay. Do it today, do it right now, after you finish reading this.
You do this, you are doing better than 90% of fellow Malaysians.
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