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The More We Spend The Higher Rate of Return On Investment Needed

I believe that those who are ‘thrify‘ will grow wealthy, and those who are ‘spendthrifts‘ will become poor. During my school time, i already have a game of adhering to my budget in which saving 50 cents out of my pocket money. As i known, the discipline of being able to control our spending and save consistently would make us success in the later stage.

big spend

For those who are from top management level who earn more than RM10k per month does not necessary that they can live wealthy. Let’s take an example, the managing director of a multinational corporation, who was earning RM120k per year. Given his hefty income, we expected him to have great substancial amount of money over the years, right? However, sometimes we may found that quite a great number of them whose total assets actually is less than RM500k while the net worth is less than RM200k. Plus, more than 70% of his net worth was from EPF savings.

September 2nd, 2010 | Leave a Comment

How to Calculate Our SOCSO?

As everybody known, SOCSO is just like a general insurance for employees; made compulsory by the government. However, you won’t get it back at the later stage as EPF does. Do you know how to calculate it? SOCSO contribution is different from EPF deduction and it’s based on the SOCSO table. And, the highest SOCSO deduction for employee is only RM14.75.

Your salary, overtime payments, commission, allowances will be taken into account for the purposes of SOCSO contribution.

For example:

Salary = RM 2000.00
Overtime Payments = RM 200.00
Allowances = RM 50.00

Total Salary = RM 2250.00

I this scenario, do you know how much SOCSO should be deducted from your salary?

August 30th, 2010 | 1 Comment

How To Calculate Your EPF Dividend?

As everybody known, the Employees Provident Fund (EPF) declared 5.65% of dividend for the financial year 2009. In order to be smart and calculative in personal finance matters, understanding the calculation of EPF dividend is an essential part of the learning process.

epfdividendcalculation

EPF’s dividend calculation is not that straight forward. I’m sure still many of you do not know how to calculate EPF dividend. Most of the people will take the total contribution of that particular account and just multiply with 5.65% dividend. If you’re one of them, then this is a good chance for you to learn from mistake.

The following is my calculation of the dividend:

August 27th, 2010 | 1 Comment

Difference Between MRTA vs MLTA

Basically, both are the Mortgage Life Insurances which pay off the outstanding loan balance in the event that the borrower dies or suffers from total and permanent disability before the loan is fully settled.

MRTA vs MLTA

MRTA known as Mortgage Reducing Term Assurance whereas MLTA is Mortgage Level Term Assurance. Normally, it can be purchased from any banks. MRTA is an insurance policy and has become a common and acceptable policy that adds to your mortgage loan. The premium is paid upfront in one lump sum.

The borrower can choose the amount and tenure of the coverage. The amount of premium will be determined by his age mostly. To the borrower this is relatively a hassle free, affordable and necessary policy.

However, MRTA has a reducing premium over time, as you pay your loan, the amount you owe the bank would reduce and the amount you need to be insured for would also be reduced. So, for me it is an expense item as you don’t get a single cent out of it in the end.

MLTA is slightly different from MRTA as it offers an alternative for a borrower who is looking for a life insurance which offers protection, savings and returns.

The premium is paid on a monthly, quarterly, half yearly or yearly basis and the policy holder can choose to have a wider coverage other than death and total and permanent disability.

Below is the comparison between MLTA vs MRTA:

August 18th, 2010 | 1 Comment

Shorter-term Fixed Deposit Tenures Would Be Better?

Fixed deposit has been seen as a lower return saving vehicles. But, it is low in risk and high in liquidity as well. In current situation where interest rates are expected to go up, people may start to question how long they should place their money in the FD account.

Based on my personal calculation, it’s better to place your FD in a shorter tenure so that you can take advantage of the expected interest rate rise in future. I still remember in the mid of May, Bank Negara Malaysia revised its Overnight Policy Rate (OPR) by 25bps to 2.5%. You can try to put your fixed deposit in a shorter tenure such as 1 month, 2 months or 3 months. This is because if you put in a longer tenure now and you can gain an extra 25bp from it, but you won’t profit from it if the rate rise by another 50bp in a couple of months perhaps.

FD interest rate

August 4th, 2010 | 3 Comments

Maybank vs Public Bank Gold Investment

This is continued from my previous topic Buying Gold As Investment, which dated 21st June 2008. So, as everybody known, now we can buy gold as investment through local bank. You can either open gold investment account from Public Bank or Maybank. You will be given gold savings passbook account, which used to record every purchase or sale order.

But, a lot of my readers keep on sending email ask me what’s the different between Maybank Gold Savings Passbook Account (GSPA) vs Public Bank Gold Investment Account (GIA). Previously, I could not find much different between both local banks offer and these are my initial stage of research:

maybank vs public bank gold investment

But after going into further details, now I found some interesting part, which can be shared here.

July 31st, 2010 | 5 Comments

Standard Chartered Gold & Platinum Card Offer

For those who interested to apply a credit card then Standard Chartered credit card will be your right choice at this moment.

Standard Chartered Credit Card

Both Standard Chartered Platinum & Gold Credit Cards offers 0.5% cash back on every transaction excluded petrol. There’s no minimum charge required, no limit on cash back given and the more you use your card, the more cash back you gain. Besides that, it’s also comes with point rewards in which RM 1 = 1 point, so basically it is a 2 in 1 card. It comes with 2 years annual fees waiver, 3rd year onwards normally you can call for waiver.

Activate the card and spend once for any amount within 30 days and enjoy the cash rebate RM80.00 for Gold Card approved and RM150.00 for Platinum Card Approved. Based on my credit card agent information, the cash rebate will be credited into the following month bill statement. So, hurry up and grab this golden opportunity! This promotion is valid until 31st Aug 2010 so try to submit your credit card application before as soon as possible.

Standard Chartered Credit Card Offer