Economic recession is said on be on its way. If you still have no idea how this all happens, head over to read the explanation by Patrick at Cash Money Life. The main cause of the 2008 financial crisis in the United States is the excessive use of credit, especially in the housing market. The real estate bubble finally burst. However, the local financial institution is not much affected. Local Malaysians still need to fork out at least 10% for the deposit, and has a good credit history before you get ...

Mr. Yap lost his brother when he collapsed one ill-fated Monday morning due to sudden heart failure. Mr. Yap was a guarantor to a housing loan sign-on by his brother, he was liable for paying the monthly installments of RM 1,800 towards financing the home. Almost immediately the property was auctioned off by the bank, forcing Mr. Yap to incur a new debt of RM 120,000 the shortfall arriving from the sale. Mr. Yap was fighting hard to stay afloat and was threatened with bankruptcy by creditors. My Yap was fearful ...

At some points in your life, you will encounter debts. It could be from an education loan, car loan, personal loan or other types of loan. Normal debts can turn into ugly bad debts when you are unable to repay them consistently or if you continue to rake-in continuously new debts every month. When you are swamped with debts, you may unavoidably start to worry on how to tackle your debt problem. To understand how you got yourself into the mess and how to stay bad debt free, apply the 8 ...

Bankcruptcy is a word that immediately brings a negative vision to our minds. It happens everywhere in the world and is not partial to a certain country, race or nationality. In Malaysia, the total number of bankruptcy cases nationwide has risen from 70,009 in 1999 to 106,000 in 2003 and today the figure stands at 160,000. Bankruptcy law exists to help both the bankrupt and the creditor. It will stop the creditor from harassing the debtor and it safeguards the rights of both parties. What is Bankruptcy? Simply said, it is a legal ...

Today, I am going to tell you a success story about a frugal family. If everyone learn to manage cash flow like they do, there will be no financial problem in Malaysia. You will learn about the story from our emails. Name has been altered for confidentiality. This is the conversation via email from Ann. My reply is in italic. Hi KC, My husband and I will be 39 and 40 years old respectively this year. We would like an outsider to view our financial situation as time is running out till our retirement. ...

According to a survey done by the Statistic Department for the Economic Planning Unit, published in Personal Money Magazine June 2008 edition, a typical family in Malaysia earns only RM3686/month. How much is RM3686/month worth? In terms of vehicle, the cheapest range of national car Proton Saga is priced between RM31,500 to RM39,800. RM3686/month is just enough for you to pay for a new car with your entire annual household income. It means the husband and wife work for the whole year without spending any sen, that is just enough to buy ...

Early this month, I wrote a post about the recent fuel hike that caused a series of inflated prices on many daily expenses including food, transportation and other services.  I would like to thank those who had spent time and effort to give your opinion and participate in the comment. They will also stand a chance to get a free book - The Carrot Principle. As promised, the winner of the book will be announced today. Before that, I had picked some interesting comments that are worth to be shared with ...

No. I am not talking about your home with mortgage. No. I am not talking about your hire-purchase vehicle either. As most people understand, the mortgage of their home is the liability. You owe the bank money. In return, you need to charge your house title to the bank as collateral. So you think you actually have an asset to pay for your liability. You think your actual home is the "asset", that when you can't afford the installment, it can pay off your mortgage by being auctioned to third parties. You ...

Most people won't be thinking about their death. But once in a blue moon, we somehow worry about the consequences of our premature death. That's why we have a WILL, especially for those with more assets (or liabilities) or young children. By writing a WILL, we have stored aside a golden key for our heirs to unlocked our assets in the future. The best benefit of all is the convenience and preservation we hope that a WILL can do for our family, when it needs to. If you have engaged a professional ...

Recently, I received a letter from Rockwills - the biggest will writing company in Malaysia. My Will is kept in their safe custody for my lifetime. There are three documents in the envelope: 1. A new Personal Asset Inventory Booklet - This is a very handy booklet that let you record all your assets, including bank accounts, safe deposit box, cars, liabilities and many other stuff you probably won't notice at all. I don't have much use of this booklet because I store a soft copy version using Microsoft Excel, which is ...