It is common oversight in people not to take provision for the bad times while they are experiencing good times
~Machiaveli~
Most people have heard about online banking but probably haven't tried it their own. They still pay bills by mail and deposit checks at bank branch, much the way the parent did.
People are still more comfortable dealing with bankers or agent which they say "more human touch".
Internet banking uses today's computer technology to provide the option to manage our finances more quickly and efficiently.
Why we must learn to utilise internet banking:
Convenience:
It operates 7 days a week, 24 hours a day. Paying bills, money transfer, online share transaction etc. More and more service provided by the bankers which ease us managing our finance portfolio.
Fast:
It only takes around 5-10mins for a single transaction comparing to 30mins-1hrs drive to nearest bank, queing up for a simple transaction.
Access worlwide:
With a computer and internet access, you will be able to access to your bank account wherever you are.
Save $:
Most importantly, It save $$$, petrol cost, parking fee and especially your time (time = $$$)
Financial Quotes of the Day
by mw2rp | Wednesday, December 02, 2009 in Quotes of the Day | comments (0)
Here is a simple but profound truth. You cannot get out of debt by borrowing more money.
~Jerrold Mundis~
Financial Quotes of the Day
by mw2rp | Tuesday, December 01, 2009 in Quotes of the Day | comments (0)
Never spend your money before you have it
~Thomas Jefferson~
Monthly Review - November 2009 (+0.39%)
by mw2rp | Tuesday, December 01, 2009 in Monthly Review | comments (0)
Floating Cash: 3,399
Fixed Deposit: 4,010
Shares: 10,950
Mutual Funds: 3,598
Total: 21,957
Past record:
October: 21,872
September: 20,575
This is an ongoing monthly review to keep track on my portfolio performing.Its still long term progress, any feedback is appreciated and may be incorporated into future monthly reports. The portfolio not covered:1) EPF.2) non-liquidity asset such as house, car etc.
October Highlights:
Stock performanceKLCI: 1259.11 (1.28%)
Share Portfolio: 8950 (-2.4%)+2000(liondiv-5lots)[-20%]
- the model share portfolio fell terribly in november. Losing >2% in in comparison to FMB KLCI's gain of 1.28%. Liondiv also face 20% drops in 1/2months time. Due to it was purchased in mid Nov, it was show seperately as above to ease my monitoring.
Finally it is back to service. No need for me to plan for manual bill payment at the counter.
It is commonly for us to see ATM machine showing "out of service" notice when it is broken down or the machine is out of cash. But today Maybank2U has been out of service for the whole day, let's pray it is not due to all accounts out of cash...
Bought in Liondiv - 5lots
Came across this blog, think should share with everyone. click here to read further.
One should be careful and avoid from fail ling into pyramid scheme. SYN in the famous Lampe Berger scam.-----------------------
Think about it again, why would so many people get trick into this kind of scam.
What else other than self greediness
Monthly Review - October (+6.30%)
by mw2rp | Sunday, November 01, 2009 in Monthly Review | comments (1)
Floating Cash: 5,278
Fixed Deposit: 4,010
Shares: 9,170
Mutual Funds: 3,414
Total: 21,872
Past record:
September: 20,575
August: 20,171
This is an ongoing monthly review to keep track on my portfolio performing.
Its still long term progress, any feedback is appreciated and may be incorporated into future monthly reports. The portfolio not covered:1) EPF.2) non-liquidity asset such as house, car etc.
October Highlights:
Stock performance
KLCI: 1243.23 (3.42%)
Share Portfolio: 9,170 (6.75%)
- the increment of the portfolio mainly contributed by share investment.
10 Ways to Make Your First Million.
by mw2rp | Tuesday, October 27, 2009 in Financial planning, General | comments (0)
1. Stop Senseless Spending
It's easy to spend your way out of a fortune. Fortunately, the opposite is also true - you can save your way into your first million. Most people working in North America right now will earn well over $1 million during their working lives. The secret to saving $1 million lies in keeping more of what you earn. Just as extending your earnings offers a unique perspective, doing the same with your spending sheds a ghastly light on the waste. If you spend $5 every day of your working life on coffee, snacks, etc., you lose $73,000 of your lifetime earnings, making it that much harder to hit the $1 million mark in savings.
2.Prune Your Purchases
When you do have to spend, try to get the most utility, not simply the most you can. The difference between great value and utility is a fine line. Buying too much house or too costly a car comes from confusing the two. If you shop for what you need and buy it cheaper than you'd planned, that's a great deal. By keeping the end use of large purchases in mind, you can avoid this drain on your cash. Before paying more than you can afford, remember that Warren Buffet, a man who constantly jockeys for richest person on earth, still lives in his humble Omaha abode.
3.Target Your Taxes
Another leaky hole you need to plug is the parasitic drain of big government. While you are expected to pay your taxes, it's the right of every taxpayer to try and reduce their tax bills to the absolute minimum allowed by law. Increasing your tax awareness means making taxes a quarterly chore rather than an annual scourge. Keeping abreast of allowable deductions, changes to your withholding and changes in tax limits will allow you to keep more of what you earn, so that you can put that money to work for you.
4.Crafty Compounding
Time is on your side when you've got compounding working on your savings. The earlier you start saving and the earlier you get your savings into a financial instrument that compounds, the easier your path to $1 million will be. You may be thinking of tenbagges or hot issues that return 10 times their value in a few weeks, but it is the boring, year-on-year compounding that builds fortune for most people.
5.Build Through Your Boss
If you're looking to save $1 million dollars for retirement, look no further than your boss. With matching contributions, your employer can be your best ally when it comes to building up retirement funds.
6.Ramp-Up Your Retirement Savings
Rather than letting your boss's contribution lessen your load, try to put a little extra into your retirement plan whenever you can. Automating your account contributions will make setting your money aside that much easier. That said, making extra contributions a priority will speed up your journey to $1 million and make your golden years that much more golden. You don't have to eat cat food to do this, just keep your retirement in mind when you've got extra cash on hand.
7.Incremental Investing
If you've got your retirement portfolios where you want them and are ready to start a pure income portfolio, then incremental investing is an excellent way to begin. You don't have to jump into the market with your life savings to make money. Even relatively small amounts can result in decent returns. The important thing to remember with your income portfolio is that capital gains taxes will be applied yearly to any income you pull out. Again, improving your tax awareness will help reduce the bite, but it takes time and knowledge to make one million solely from a taxable portfolio. Still, it has been done and will be done again.
8.Dare To Diversify
If your portfolio is made up entirely of in stocks, then you may need to diversify. In the first case, more and more financial activity is out there in the wider world. This doesn't just mean investing in emerging economies like China and India that are producing huge gains, but recognizing that there are companies in Europe and Asia that are just as good (maybe better) as investments in the U.S.. Diversifying also means not putting all your money into one type of asset. Being a financial omnivore opens up that much more opportunity in times of growth and makes certain you won't go hungry when one source dries up.
9.Reconsider Real Estate
Owning real estate provides equity and diversity to your investments. If you own your own home, then paying your rent builds up equity. If you invest in real estate, then someone else's rent builds up your equity. Real estate investing isn't for everyone, but it has built fortunes for many savvy people. Owning your own home, however, is usually a good idea regardless of your opinion on real estate bubbles. Peter Lynch, one of the greatest stock investors of all time, believed that you should own your first home before you buy your first stock.
10.Increase Your Income
There is nothing terribly romantic about becoming a millionaire while working a regular job, but it is probably the avenue available to most people. You don't need to start your own business to pull in a high income, and you don't even need to pull in a high income if your saving, spending and investing habits are sound. Asking for a raise, upgrading your skills or taking a second job will add that much more to your savings and investments and subtract that same amount from the countdown to your first million. If you are entrepreneurial at heart, starting a business on the side can actually decrease your overall tax bill, rather than putting you in a higher income tax bracket.
Appendix 16 of the Budget 2010 has proposed that service tax be imposed on credit cards and charge cards including those issued free of charge as follows:
i. RM50 per year on the principal card; and
ii. RM25 per year on the supplementary card.
Service tax will be collected on the date the card is issued, on the completion of each year or on the date of renewal.
----------------
Will banks take up those charges or transfer it to customers naturally. If the banks impose it to consumers, i definitely be the first to cancel the credit card immediately.
Uchitech has been on the uptrend for the past three days.
7 oct - 1.29
8 oct - 1.29
9 oct - 1.35
12 oct - 1.40
13 oct - 1.42
Good news to announce soon?
Finally get the interest after 2 months of first fix deposit. - RM3.43 haha...
Monthly Review - Sep 2009 (+2.00%)
by mw2rp | Wednesday, September 30, 2009 in Monthly Review | comments (0)
Floating Cash: 4,637 Its still long term progress, any feedback is appreciated and may be incorporated into future monthly reports. The portfolio not covered: September Highlights:Fixed Deposit: 4,000Shares: 8,590Mutual Funds: 3,348Total: 20,575Past record:August: 20,171July: 16,678This is an ongoing monthly review to keep track on my portfolio performing.
1) EPF.
2) non-liquidity asset such as house, car etc.
I just started this blog so i need blog friends and links too! So if your interested just leave a message in my shoutbox (and shout there until you bleed)
Chao!
Why should start Saving as soon as possible
by mw2rp | Friday, September 25, 2009 in Saving | comments (0)
Assume 5% annual interest
Mr. T
Total paying into account = $10k
Interest earned = $23,373
Mr. B
Total paying into account = $20k
Interest earned = $13,066
It shows how big the difference is between those who start early and those who do not. If you haven’t started planning and start Saving/ Investing. Then you should start calculate how much money you have lost for being ignorance.
Time vs Wealth
by mw2rp | Thursday, September 24, 2009 in Financial planning, General | comments (0)
With the time pass by, I'm on my way to my financial freedom goal. However, it is obvious that my time is not being fully utilised. Other than the daily routine job, my time seem just goes on like that. I am not able to give attention to other things that I should put my thought on it.
I know that time is required to accumulate wealth, especially for a person like me that not a risk taker that involve in business environment. I should spend some of my time to speed up this process, i.e. create other parallel income other than current daily job. Should I:
- doing part time job
- invest in dividend counter, collect passive income
- online business
- direct selling business
- as financial agent
what else can I do? think, think, think...
Any comments?
http://www.planningtips.com/cgi-bin/savings.pl
This is a nice gadget to calculate compounding saving, it lets you start with an amount of money, make regular monthly deposits, and see how your saving grows.
My Personal Finance Diary
by mw2rp | Tuesday, September 15, 2009 in Personal Finance Profile | comments (0)
About Me
I'm a 28yr old. I started this blog to track my journey to financial freedom. I graduated in July 2004. Like other fresh graduate, i entering the workforce without much idea on it. I was just like my parent, thinking my life is just working to earn a living, marry, have a children getting etc.
I started learning about financial planning in year 2005. Thanks to my gf and friends, i've learn the important of budget and have a proper planning.
After graduated, i was offered a job with monthly salary of 1.5k. During that period, i need to pay for student loan amt ~1k and $200 car loan (i got a second hand car as my transportation). Basically, during the first year I'm in negative net income. I was blessed to have my parents to support my balance during this period of time.
After the first year, things change after i getting my professional license. I manage to have steady increase in my salary. I paid off my study loan in 2008, paid off car loan in 2009; I purchased my first house in 2006.
Goal
My goal is simple, to achieve financial freedom. 15 years to have at least 500k of liquidity asset.
The asset amout does not include property, car and EPF.
i will use this blog to do monthly tracking and monitoring on my portfolio.
EPF Investment Income Up 17% on Equities.
by mw2rp | Thursday, September 03, 2009 in General | comments (0)
“PETALING JAYA: The Employees Provident Fund (EPF) has recorded a 17.1% increase in investment income to an unaudited RM4.8bil for the second quarter ended June 30 from RM4.09bil a year earlier.
Compared with the preceding quarter, the investment income achieved represented a 46.64% improvement over the RM3.27bil charted in the first quarter of this year, EPF said in a statement yesterday.
The higher investment income was due to improved performance from investments in equities for the second quarter.” --- star
==============
Good to have the news, but will our get a better dividend return in coming payout? Or still getting lower rate than ~4.5%
8 Steps to Investment Success
by mw2rp | Wednesday, September 02, 2009 in Financial planning | comments (0)
1. Convert income money to capital money. This is another way of saying that a person must spend less than his/her earn. Capital is required to begin any kind of investment program. Once you have amassed some capital by saving, then your money can begin to make money for you. No capital, no investment income.
2. Start while you are young. Compound interest- 8 wonders in the world; the phenomenon of compound interest delivers its most fantastic rewards to those who put their money to work for the longest time.
3. Have a simple plan. Calculate where you are and plan where you want to go. Understand how much to achieve per year to reach your goal.
4. Have a realistic goal. An unrealistic goal will make a person out of focus and unable to keep on track their financial plan set earlier.
5. Be patient and disciplined. It takes years for compounding interest to show its magic. Cyclical market will caused a person to lost focus by greed or fear...
6. Do tracking on your goal regularly. If fail to achieve goal in certain, you may need to review on the portfolio on what went wrong; to cut down expenses? finds extra income? etc.
7. Avoid major life disruption. Easy to say than done, but it is one of the vital fact in financial planning also. Accidence, personal health issue may cut out a big chuck of the money you invested. Maybe what you can do is take care of your own health; cutting cigarrette for smoker, have a balance diet etc.
8. Let the power of coumpound interest to generate your wealth
Floating Cash: 5393
Fixed Deposit: 3000
Shares: 8680
Mutual Funds: 3098
Total: 20,171
This month portfolio increase ~20%.
Mainly due to half yearly bonus in Aug.
Mutual funds also in good track. However, shares are not in path as the mutual funds; Recent buy- uchi tech running lose... Must learn how to choose a good stocks next time.
Typical psychology thinking in share market
by mw2rp | Wednesday, August 26, 2009 in Share Investment | comments (0)
How to Choose a High Quality Stock in Share Market
by mw2rp | Monday, August 24, 2009 in Share Investment | comments (0)
High Quality Stock = Good financial growth + Growth Industry + Good management + Good leadership
Condition
3 year continuous profit (EPS Earning per share) growth, PROFITGR EPSGR (Profit Growth: Score point=1, EPS Growth: Score point=1)
Formula
(1) ROE > 15 (Score point = 2)
Return on Equity ROE = EPS/NTA
Net Income/ Total Shareholder's Equity
(2) DE < 0.60 (Score point = 2)
Debt Ratio DE = Total Liabilities / Shareholders Equity
(3) DY > 3 (Score point =2)
Dividend Yield > Current Fixed Deposit Rate
(4) Liquidity Ratio > 1 (Score point=1)
Liquidity Ratio = Current Assets / Current Liabilities
(5) Profitability Ratio > 10 (Score point=1)
Profitability Ratio = Net Profit / Revenue
(6) Free Cash Flow (Score point=2)
= Net Income + Depreciation/Amortization – Change in Working Capital - Capital Expenditures
= Cash Flows from Operating Activities – Capital Expenditures
Stocks that score >10 are consider as high quality stocks.
A. Money doesn’t create man but it is the man who created money.
B. Live your life as simple as you are.
C. Don’t do what others say, just listen them, but do what you feel good.
D. Don’t go on brand name; just wear those things in which u feel comfortable.
E. Don’t waste your money on unnecessary things; just spend on them who really in need rather.
F. After all it’s your life then why give chance to others to rule our life.”
Your Actual Earning in EPF Account
by mw2rp | Thursday, August 20, 2009 in General, Saving | comments (0)
The actual dividend for year 2008 is in -ve figure, meaning your EPF money actually depreciated. How about those money in saving account or fixed deposit?
Personal Financial Planning Process
by mw2rp | Tuesday, August 11, 2009 in Financial planning | comments (0)
1. Assess your current financial situation
2. Develop your personal financial goals
3. Determine hat actions to take
- Budgeting and spending plan
- Tracking cash flow
4. Evaluate the alternatives that will meet your financial goals
- Knowing your needs and wants
- Making choices and substitutes
- Delaying gratification
5. Create your financial plan and do it
- Financial products and services
- Building wealth
- Protecting with insurance
- Managing debts
- Tax planning
6. Review and revise your financial plan
=============================
The most important is always keep your goal in mind.
Bought in Uchi Tech - 2 lots RM1.33
FBM30 constituent stocks and their relative weights
by mw2rp | Monday, August 03, 2009 in Share Investment | comments (0)
Floating Cash: 7,246
Shares: 6,455
Mutual Funds: 2,983
Total Asset: 16,684
With ard 10k of initial amount, i have two goal for references:
1.Low/ moderate return
Your monthly deposit for 15 years of $ 1000.00
for an interest rate of 5.000 % compounded annually
with an initial amount of $ 10000.00:
| Year | Balance |
| 0 | $ 22,790.47 |
| 1 | $ 36,235.33 |
| 2 | $ 50,368.06 |
| 3 | $ 65,223.84 |
| 4 | $ 80,839.67 |
| 5 | $ 97,254.44 |
| 6 | $ 114,509.01 |
| 7 | $ 132,646.37 |
| 8 | $ 151,711.66 |
| 9 | $ 171,752.37 |
| 10 | $ 192,818.41 |
| 11 | $ 214,962.22 |
| 12 | $ 238,238.95 |
| 13 | $ 262,706.56 |
| 14 | $ 288,425.98 |
2. Medium High Return
Your monthyl deposit for 15 years of $1000.00
for an interest rate of 10.000% compounded
annually
with an initial amount of $10,000.00
| Year | Balance |
| 0 | $ 23,612.70 |
| 1 | $ 38,650.82 |
| 2 | $ 55,263.64 |
| 3 | $ 73,616.03 |
| 4 | $ 93,890.16 |
| 5 | $ 116,287.26 |
| 6 | $ 141,029.62 |
| 7 | $ 168,362.83 |
| 8 | $ 198,558.19 |
| 9 | $ 231,915.39 |
| 10 | $ 268,765.53 |
| 11 | $ 309,474.37 |
| 12 | $ 354,445.94 |
| 13 | $ 404,126.63 |
| 14 | $ 459,009.54 |
Final Saving Balanced: $459,009.54
Just bought (4715) Genting Malaysia.
Share portfolio total to:
Genting Malaysia - 1 lot
Sino Hua-an Inter - 2 lots
Lion Div- 1 lot
DPS -8 lots
DPS-wa -2 lots
Keladi - 3 lots
Take in Genting Malysia due to believe its fundamental and at the same time for its stable dividend pay. Other than that, the opening of genting sg may play a theme play in future.
Saving- a task that sound easy but hard to do
by mw2rp | Thursday, July 09, 2009 in Saving | comments (0)
Saving = Income - Expenses
A simple equation which many unable to get positive result.
Me too facing the same issue where in a month I get a positive result and the other month extra expense makes the portfolio to nil.
Current status:
My current income: 4780/m
My fix expenses:
Home Loan: 1000/m
Parent: 500/m
No interest debt from gf: 500/m
Cable TV: 80/m
Internet: 110/m
Electric and Water Bill: 100/m
House security services: 50/m
--------------------------------------------
Total: 2340/m
The above is not included expenses for food, petrol, toll, and miscellaneous.
Action to take:
1.) Keep record on daily expenses
- This will let me have a better picture on the overall profile and keeps me aware on my expenses.
2.) To set montly and yearly target
That's what i could think off at the moment. till now
A goal without a plan is just a wish- -Antoine de Saint-Exupery
by mw2rp | Wednesday, July 08, 2009 in Ultimate Goal | comments (0)
I shall need to organize my portfolio for better planning, few category has been identified:
Saving
- to have an emergency fund
Investment
- accumulation of wealth, bank saving will not be able to match inflation rate
Insurance
- to provide protection
I'll look into details on the above in order to have a proper palnning.
Saving
- to have an emergency fund
Investment
- accumulation of wealth, bank saving will not be able to match inflation rate
Insurance
- to provide protection
I'll look into details on the above in order to have a proper palnning.
Step into 28, another 27 years and it will be reaching the retirement age.
What have I gone through? What I've achieved all these while?
What should I plan for my years before retired? Can I run out from the rat race?
A lot of question mark and a lot of uncertainty.
I should make a planning...
This blog will be as my reminder as well as my tracker to my goal!
I can do it!!!
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