Personal Finance Reality Show

Personal Finance Reality Show

I wish we have shows like this in Malaysia cater to Malaysian audiences. Sadly it’s only in Cantonese (sorry guys). I will try my best to summarize the content of this show.

This episode features a 25 year old girl who wants to save HK$80,000 (4 times salary) to help her family with their renovation cost and for long term would like to have a capital of HK$300,000 (15 times salary) in 3 – 4 years to expand her business to become an established online business.

She then list down her monthly expenses, coming to around HK$12,800 (largest expenses being credit card repayment at around HK$4,000 or 20% of salary). Her salary is in the range between HK$15,000 – HK$20,000. To achieve her goal, she has to save between HK$5,000 – HK$7,000 a month, roughly 25% – 35% of her salary.

So for a week she has to track her expenses and limit her spending to HK$100 a day (0.5% of salary). She has to limit her credit card spending and pay cash instead.
The PF guru also advise her to start working on her online shop instead of waiting until she has enough capital. And the most important thing is to find your own niche in the market because there are a lot of people doing the same thing. Do not try to be the best but try to be the most unique.

What we can learn
1. It’s important to start. Do not hesitate.
2. Set a daily budget for yourself and stick to it.
3. Curb impulsive purchase especially with credit card. Use cash from your daily budget.

I watch a lot of finance related documentaries in Youtube. I guess I just like to see things from different perspectives and sometimes count my blessing as I think our situation is better even though we’re living in a developing country. Enough knowledge sharing for today.

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K is two!

K is my knight in shining armour (quiet literally).
(In five years time he’ll be wholly mine. Now still technically belongs to PB.)
^ it was written before I was “enlighten”.

Before I were into the whole #DebtFree concept recently, I was quiet contented paying the monthly installment like most people. But now I have a change of heart and mission. I want to cut short the tenure. Especially knowing the numbers for the cost of ownership for just 2 years. I can’t imagine what the numbers are for imported car and this is supposed to be an affordable car (say what?!).

Car ownership cost
Hi I’m K.
Apparently this is the only photo my owner has.

Today’s topic: Car Ownership.
Before this I was driving a second hand manual kancil that I bought with RM5,600 of cold hard cash and fixing it with another RM2,000 in two major services. It served me well for 20 months before I decided to buy a new car because rainwater is leaking into the interior, and with my wild imagination of the floor suddenly giving way and slicing my body into two or more parts while on the road (gory, i know), it only make sense to get a new and affordable car. My criteria is simple, small.

I’ve been diligently jotting down my car expenses for the past two years because data is beautiful. And I always wanted to know how much it cost me to own it.

Let’s see the beautiful data.
Year 01: 2017

On average about RM1099.14 per month

Year 02: 2018

On average about RM708.48 per month

Year 02: 2019

For the sake of a full 2 years ownership cost

And the numbers are in…
For a full 2 years ownership cost for a brand new Perodua Axia SE;- RM24,240.50 (on average RM1,010.00 a month). I’m surprised with the number. With an additional of RM7,000, I can buy a brand new lower spec one and it’s not even half way yet. OMG.

And I still have around RM30k loan to pay. But I did not regret buying this car because to commute from my place to work and back, I’ll have to take 4 – 5 public transport (Bus > LRT > Company’s Van (or Grab if missed) > Work > Company Van (or Grab if missed) > LRT > Bus). And I’ll have to be very punctual and waste a lot of time commuting. But if I have a car, I’ll have more freedom and less stress.

Before this when I was a student, I used to take a lot of public transport and met all sorts of stalkers and weirdos. It’s really not safe to take public transportation at night, that I can say.

So the next step is to plan for an early exit.

P/S: My fancy big company with a new customer-centric CEO told us we are getting BONUS. This is the quote that I like from the meeting, “If you think you are too big to do small things, you are too small to do big things.” I will humbly serve my client well so please give me a big fat bonus. Key word is: FAT! haha

Link Hire Purchase Account to your PB Online account.

I’m not the only one wondering about this matter;- https://forum.lowyat.net/topic/2937970/all
All I can say is Public Bank is indeed a conservative bank. With other banks, any Hire Purchase or Mortgages accounts are automatically linked with your online account. At least I can say that for RHB and Maybank.

Every now and then I will randomly clicked on the Loan / Finance tab only to be greeted by the error message asking me to contact them. I’ve been procrastinating about linking my Hire Purchase account to my online PB account for a while now because it’s automatically paid on the 25th, plus it seems like a hassle to drive all the way to PB on a working day. Finally get it done today. And I felt like a noobie because you can totally do it on your own!!! Did I not search PB’s site well enough for tutorials?

How to link your Hire Purchase account to your PB Online account
(or any other accounts under your name, for joint accounts you will have to visit the branch because you need to submit some forms).
First login to your online PB account.
Then go to “Profile Maintenance” > “Manage Profile”

Step One

Then go to “Add / Delete Account” > “Add” > Select the type of account you want to add, fill in the details (for Hire Purchase you will need your “Account Number” and “Notes” > request PAC and it’s DONE.

Step Two

The entire process ends in less than 10 minutes, took an extra a minute or two because I menggelabah a bit after keying the wrong password. I was never comfortable login into my online banking accounts with my phone. I did it in two desperate occasions, one was today.

Speaking about Hire Purchase, how many are comfortable with using Standing Instruction or auto-payment on the due date? There was once my friend ask me “Aren’t you afraid your loan isn’t paid?” To be honest that never really occurred to me. And if that really happens, I would have gotten a notice by the 3rd month, right?

I’ve also seen those who tirelessly withdraw cash and deposit into the cash deposit machine every single month to pay for their loan, some who has to have physical receipt. Some who has “trust issue” with Standing Instruction and will pay online on due date. I’m the set and forget type.

That’s all for now.

I paid off 31k student loan in 3 years (sorta)

Yikes! After procrastinating since months about jotting down my little debt paying journey, I realised my statement is no longer available. It’s been a little over 2 years since I’ve cleared my PTPTN loan in November 2016, best decision EVER!!!. So, this is how I did it and so can you!

Prelude, aka the awakening moment I had was when I realised I was paying RM77.50 a month for interest, for nothing. This might not sound a lot to most of you but to put it in perspective, that’s an additional of RM930 a year that I have to pay if I do not repay my loan and it will snowball.

With around 31k loan that’s been snowballing since I got my scroll, my initial plan was to settle it within 5 years time (2013 – 2018). At that time I was comfortable with paying RM400 a month, coupled with the 10% discount offered with the 2013 budget, it was a doable plan. But how did I cut short it to 3 years?

First Step: Change your mentality.

Literally me. Just working for money I do not own.

After paying RM400 without fail for a year an a half, I got my break when a bigger company wants me. (Let me cry some rainbow tears, it’s been a dream of mine to join this fancy big company but a few years back I never got the call back when I was a freshie with no experience, just undying passion in Media Planning, and no, I’m not doing media planning now. I’m still with them. Loving my job but now my undying passion is on personal finance.).

Second Step: Set a goal and stick to it.
So at one point in 2015 I made a goal. To pay 10k off my PTPTN loan in a year. It might look like Everest to some but if you break it down, that’s RM834 a month. And I don’t do all that by depriving myself of little luxuries in life, I still eat and shop. But the first thing that I do after getting my pay check is to pay my PTPTN loan. Without fail.

Always break it down to smaller doable part. If 10k is a big chunk of your annual salary, try 5k (417 a month) or 2.4k (200 a month). And stick to it. Set auto deduct if you don’t have the discipline to part with your money. The key to success is to START.

Third Step: (Optional) EPF Account 2
By June 2016, I was so eager to settle my loan to get the 20% discount by the end of the year, I took out 5k from my Account 2 to settle part of my PTPTN and consistently paying 1k off until one faithful day in November that I finally settled my PTPTN loan. Now the money that I make belongs to me!!!

But if that doesn’t motivates you enough to settle this loan that many put in the back burner because it’s just a 3% loan, what’s the rush? Here’s a summary of the amount of money I paid for the 31k loan I took.

Initial amount: RM31,000.00
Total repayment: RM36,830.65 (+18.8%)
That’s RM5,830.65 you can invest, gone just like that.

So please START your plan now.