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25 November 2008

Make the most out of your Money

Heard this on the radio this morning. Thought that this topic/discussion came timely during this financial crisis time. Some of the pointers:
  • Pay yourself first

When we received our pay check, we always pay our bills, settle loan commitments and obligations, etc. Come month end, we can only save whatever money left behind, if any.

We should pay ourselves first. Set aside a sum of money and save it in a separate bank account that we cant access ie those accounts without ATM card, wife, etc. Then, we only spend whatever left behind.

  • Mineral water is more costly that fuel price

A bottle of mineral water from petrol station cost RM1.60 whereas, a bottle of fuel only cost RM1.00. As such, boil your own water, bring your water bottle and drink boiled water and not mineral water.

  • Restructure your loan

Bank Negara has cut its benchmark Overnight Policy Rate (OPR) by 25 basis points from 3.50% to 3.25%. Do expect the interest on your housing loan to be lower unless your loan is on fixed rate. Settle the loan with the highest interest first or refinance housing loan for cheaper interest rate.

  • Cut down on credit card spending

Most of the bankruptcy is due to credit cards debt. Spend within your mean and cut down on the number of credit cards in your wallet that made it look like its going to burst anytime. Interest free instalment scheme and balance transfer sound attractive and affordable but basically, we are spending in advance of what we can't afford now.

  • Eat in more

Eating out is never cheap or healthy. Switch to sandwich and home cook meal. You can save time and money on travelling too.

  • Coffee chain

Coffee chain, a place to see and to be seen. Do you know drinking a cup of coffee there is sufficient for other people's one whole day meals? There's many cheaper options for good coffee. Ask your parents for hometown roast coffee.

3 comments:

Kiasu Mom said...

You know what, I actually practises everything mentioned in this email and yet I am not even close to being a millionaire.. hahaha. Something must be wrong somewhere.. hahaha

treasure memories said...

At least you are on the way there, though it may seems slow and far.

ASNB offers 1 Billion additional units of Amanah Saham Wawasan 2020 starting 27 Nov 08. Average income distribution for the ASW 2020 fund has been 7.74 sen per unit.
Its a good child education saving.

Anonymous said...

market already lost 40% in value. let's see what they will distribute next year.

prepare the children to be educated in the traditional way @ no cost. :))))