Comments on: From Credit Card Debt to Owning Six Houses

By: Why you need a Million Dollar Goal?

Why you need a Million Dollar Goal? — Wed, 31 Mar 2010 10:58:04 +0000

[...] Sayeed is a senior manager in a large MNC in Penang. Following his association with the world of investments focused in the past 5 years, both Sayeed and his wife are confidently leading to a financial successful lifestyle, his wife retired as an employee and today runs her own business, blessed with 2 kids, this couple have learnt through tough times about their financial literacy. Sayeed is currently focus in accumulating wealth and dreams of helping others achieve financial success. You can read his first post here. [...]

By: firdausprudential

firdausprudential — Sun, 21 Mar 2010 15:44:13 +0000

i wanna to know also. please let me know when the survey done. i can help you with my client and visitor database.

By: Fairuz

Fairuz — Mon, 01 Mar 2010 11:43:31 +0000

If u r able,could you make da survey a bit more specific?mayb additional info on job, residential location, marriage status n etc so better for comparison.i think it may helps a lot.
Btw…wish you happy Chinese New Year to you KC n all the others…

By: KCLau

KCLau — Mon, 01 Mar 2010 03:37:47 +0000

maybe I can put up a survey here to find out.

By: Fj

Fj — Sat, 27 Feb 2010 03:00:49 +0000

What’s the average personal saving for an 30 years old man have in term of cash in Malaysia ?

By: Jan

Jan — Thu, 25 Feb 2010 19:46:06 +0000

thanks for sharing this story, its a fantastic effort in such a short time. it really gives me hope that I can turn our finances around!

By: CKK

CKK — Wed, 24 Feb 2010 14:32:04 +0000

Assuming yearly inflation rate of 3%, present value of 3.5k twenty years ago will amount to 6.137k. What a coincidence, I’m working in O&G sector too. Maybe we can meet in the Oil Men Gala dinner

It’s a bonus to have high salary but most importantly is to cleverly invest your saving for greater returns and passive cash flow. It’s not uncommon to see a subordinate accumulating more wealth than his/her boss through prudent and careful investment. It’s easy to be a millionaire once you got the formula right. Try learning the tips from Thomas Stanley in Millionaire Next Door. The wealth equation is a very useful rule of thumb to determine if a person is wealthy. My wife and I both turned into one before reaching 30 yo, thanks to the tips I learned from him. I’m not trying to boast but if a normal salary man like me can do it, I’m sure everyone one else can as well.

By: headhunter

headhunter — Wed, 24 Feb 2010 10:40:08 +0000

Dear Natasha,

I should not have told people that. But indeed 10k was not enough to survive then due to heavy commitment, you know living in KL money seems very2 small. 15k would be just enough to survive; so it wasn’t a high expectation at all.

I studied engineering and my starting salaries more than 20 yrs ago was 3.5k. What would 3.5k if inflated to today’s money? Thus 10k isn’t a lot considering 20 years experiences and acquired skills should be compensated accordingly. Then again salary is pretty much depending on which sector you are in. Nowadays, O&G sector is one of the most lucratve for employees. I am back to that sector, no regret.

Regards

By: CKK

CKK — Mon, 22 Feb 2010 16:14:37 +0000

Nizami, I would recommend you to pick up some books on equity investment. Try Adam Khoo for a start and slowly progress to the “real” investment bible like intelligent investor/common stocks uncommon profit etc.

p.s. I’m heavily invested in Hartalega while it was still trading at RM3+ and it’s a company I will hold on at least for the next 5 years (possibly forever). However, I would not recommend anyone to follow my stock pick. Do your own study and be confident in your choice. Remember to choose a company with wide competitive advantage and favourable economics. Don’t buy on speculation. Happy investing.

By: natasha

natasha — Mon, 22 Feb 2010 07:52:42 +0000

Dear Headhunter,

I can’t help myself – i have to comment on how you can describe 10 k a month as meagre!!! And then later on, you say how you didn’t have high expectations – just 15 k a month!!! Can I ask what degree you got back in the states? – maybe i should go back to uni if that’s only the starting salary!!

I guess it goes to show though – expect high – and u’ll get it! – cos in the end u got offered much higher than u expected right? hmm…

By: Norkhaz

Norkhaz — Sat, 20 Feb 2010 01:01:01 +0000

Thanks Sayeed, Nizami and Laikos for your advice. Alhamdulillah, Thanks to Allah, for all the guidance.

For info, we stop the renovation work until we have enough savings to continue the renovation work.

By: Laikos

Laikos — Fri, 19 Feb 2010 23:48:17 +0000

Hi Norkhaz;
I totally agree with Norkhaz on the insurance plan. Bad thing can happen at worst possible time. For my case even when company is switching Group insurance can get you caught in the process. The company I work for change from insurance company A -> Company B. In between requires me to resubmit marriage cert and stuff. Ended up cost me RM35 before wife can’t use the medical card under my name. RM35 is not much but it’s a lesson to learn.

A year back after I sold my house I was helping my mom complete a half done house by my brother. I almost ended up like your case but what we did was compensating and trying as much to put the house in “stayable” (only got water + use Lilin at night) condition and put my mom into that house before it even all completed. It wasn’t very convenient for her but I don’t have to get rid of anything to later save up bit by bit to finally complete the house such as putting the tiles and etc.
It’s been a while since I look up for EPF withdrawal from Account 2 for house renovation. Not sure if it’s still possible.

Can try to sell of some of redundant stuff your have at home or things that you plan to upgrade or change when the house complete. Like old computers, sofa, 2nd TV etc.

Last resort is probably “Sibling Loans”, but no matter how desperate you are don’t go for Ah Long

Regards
Laikos

By: nizami

nizami — Fri, 19 Feb 2010 16:16:06 +0000

CKK;

Agree with you…I think it is his tenth investment vehicle.
So, can you share with us what stocks in your radar, or at least give us your criteria on ROE, P/E ++ ratio for stocks?

By: CKK

CKK — Tue, 09 Feb 2010 15:47:56 +0000

Nizami,

One should invest based on risk appetite and competency in the chosen investment vehicle. Some writers are trying to be politically correct and hence recommend diversification into equity, bonds, mutual funds etc to cover their back side. My advice is one should only invest with sufficient financial literacy. Don’t dabble with any with only half bucket full knowledge.

A lot of people make tons of money from their best investment vehicle. You don’t find lots of rich people making lots of money from their 3rd, 4th or 5th best investment vehicle. Both Sime and Shell are not in my radar so I’ll not comment on them. Suffice to say their ROE does not excite me and there are many other good companies to buy.

By: Sayeed

Sayeed — Tue, 09 Feb 2010 06:48:49 +0000

Hi Norkhaz;
Terminating the insurance is a bad plan. And even taking personal loan of 53k for renovation would have not been recommended option.
My suggestion :
1. The most important now is to see whether are you able to complete the renovation with 50k planned? What will happen if you are unable to complete the renovation, stop for a while until you have enough fund or change your renovation plan again, try cutting down some stuff that can go without renovating? Seriously I don’t know the details of your renovation but putting 70K for a budgeted 50k is a bad plan – stop or change it while you can.
2. It is painful to drain out all the savings, try not doing it and see if can you refinance the house instead of taking personal loan?
3. I got your message that you have 2 houses, 1 rented and the other you are staying? Does your parent stay with you? Is it possible instead of renting while renovation, you stay at your parents’ place?
Surely with very less details and no knowledge about the real situation it is hard for giving the exact good solution, maybe my friends, KC, Laikos, Headhunter and others JTidol can give some advise here.
Whatever it is, i urge you to rethink the whole renovation plan, talk to the renovator and see if this is reducable…you don’t need golden roof for home if you get involve with huge deal of debts and have sleepless nights.

By: Successful Goal Setting Guide

Successful Goal Setting Guide — Mon, 08 Feb 2010 13:26:50 +0000

[...] a guest-post by Sayeed, a senior manager in a large MNC in Penang. He wrote an earlier blog titled From Credit Card Debt to Owning 6 Houses. His philosophy in life is sharing and learning, “the more you share, the more you [...]

By: nizami

nizami — Sat, 06 Feb 2010 17:19:33 +0000

Dear Sayeed;
Thanks for your books recommendation. I have read all RTK’s books. Now trying to gain knowledge and pinpoint in M’sia market condition and environment.

Dear CKK;
I agree with you on that mutual fund, but even RTK has some mutual fund.
Can you give us some tips on stocks that you buy? Is Sime or Shell sound good?

Dear Sayeed, headhunter, Laikos;
Thanks for your story…good to know what to do and what to avoid.

By: nizami

nizami — Sat, 06 Feb 2010 17:10:29 +0000

Hi Norkhaz;

i suggest u borrow your kids monthly saving for this temporary event.
dont terminate ur insurance scheme.

By: JTidol

JTidol — Fri, 29 Jan 2010 04:51:09 +0000

thanks guys…will take heed of all your advices.

By: Norkhaz

Norkhaz — Fri, 29 Jan 2010 03:32:02 +0000

Dear All,

Thanks for sharing your story. Thanks for KC Lau, i’ve his follower since last year when i received his free money tips article. I have done my budget since i started working 22 years ago, but only a simple one like income minus expenses, put aside 10% for saving. Has been using this simple budgeting until i got married and have kids. Things has been very smoothly for me as i’m debt free. I pay all my credit cards in full, do my CCRIS check with BNM every 6 months. I put aside some savings for myself and my 3 kids at Tabung Haji via salary deduction. Give my mom some allowance. I also took additional insurance scheme besides the one given by my company. It’s for my kids education. I also owe two houses (one under company’s loan – rented, and one under Bank’s loan – own stay). I have ASB loan and keep the dividend and bonus to enjoy the compounding interest. I also did unit trust investment regularly (every 3 months) with two companies using my EPF money. I bet you guys will say, I shouldn’t have anything to worry on finance. But…. my beautiful plan is now start to become ugly.

Four months ago, we do some renovation on the house. I took a personal loan of RM53K with monthly repayment at RM878 for 7 years. My husband agreed to pay the loan. Now the but comes again. My husband is not a good at planning. He didn’t sit down with me to discuss on the house renovation. The quotation for the renovation is now going up from RM50K to close RM70K. To make matters worst, his business is now in a slow mode. Now, i have to cover the payment for the 2 houses (RM1500/month), 1 car (RM500/month), ASB loan (RM744/month), kids expenses and everything, including allowances for my husband. When i calculated my savings, i can survived for only 3 months. But my husband now ask me to use that money for the house renovation (we are now renting while waiting for the renovation to complete). I’m very reluctant to give him as i want to keep my savings for the next three months’ expenses, in case he still can’t collect his payment.

I need any of your suggestion. I thought of terminated our insurance scheme and my kids monthly savings as it can give me additional RM1000 and i can get about RM10K in return from the insurance cash value. Should i do this?