Friday, October 31, 2008

Manage Your Saving Accounts Wisely

Based on my previous post on interest rates for saving accounts, it's really not worth to place your money in a normal saving accounts. My bf advise me to transfer the money from my saving accounts to a fixed deposit (FD). Assuming I have 5K in my saving accounts, I will be getting an interest of RM10.00/year. If I place the same 5K in a 12-month FD, at current interest rates of 3.7%, I will be getting RM185.00/year. Wow, there is a significant difference of RM175.00. He is absolutely right! He also share with me, if I am not sure whether I will need to use the money or not (in near future - less than 6 months), it's better to place under 1-month FD, and split your FD into 5K/placement or according to your bank minimum placement. But, bear in mind, if your placement is for 12-month, and you withdraw the money by 5th month, you will not earn any interest from it. You will be paid half of your interest if you withdraw your money between the 6th-12 month. Make sure you plan ahead...wisely...
So, if you have some extra money in your saving accounts, why not transfer the money to FD and let the extra money to make more extra money for you? Let's get richer each day!!!

Interest Rates for Your Saving Accounts

Do you know what is the interest rate for your saving account? The answer: It depends on what type of saving accounts that you have. I have a Plus Saving Accounts with Public Bank. The interest rates as below:I have to mantain at least RM3001 for a full year in my account for me to enjoy the 0.20% (Interest of RM6.002/year). Very small amount, right?

My young niece of 8 years old also has a saving account with Public Bank. Hers is Wise Saving Accounts. The interest rates that she enjoys as below:

See the differences? Assuming she has RM3001 in her accounts, she's getting an interest of RM84.6282/year. Wow, there is a difference of RM78.6262! I can purchase about 1g of gold with that difference :) and also, her interest is paid on monthly basis. For my Plus saving accounts, i got paid twice yearly (30th June and 31 Dec). Perhaps I can consider to park some of my $$$ under her accounts :p BTW, she can enjoy the Wise Saving Accounts till 18 years old. After that, automatically, PB will transfer her account to Plus Saving Accounts.

Anyway, I see the reason behind. PB has a good intention to encourage the youngs to save for their education. It's encouraging. I surely will open a Wise Saving Account for my future children :)

Credit Card - Your Friend or Your Enemy?

Credit card has changed for the past few years. I remember, in my younger years (about 10 years back), credit card is something exclusive for those 'rich&famous'. To apply for a credit card, you must have a minimum annual income of RM18K, which meant that a salary of at least RM1.5K/month. Not everyone can afford to have credit cards. Nowadays, almost all working adults have credit card. They not only own one, but a string of credit cards.
If you use wisely, credit card can be a great financial friend. Below are some benefits of credit cards:
1) Can represent your cash when you dont have cash in hand
Especially for those who's on vacation and those who need large sum of payment purchasing of electronic devices/settlement or medical bill/
2) For online purchasing
It's getting famous locally to do online shopping (air tickes/cosmetics products/ CD)
3) Autodebit services
You can perform autodebit from through your credit cards and save your worries on your unsettled bills
But, credit cards can also become your financial enemy if you misused them. A lot of people fall into credit cards debts and had to declare bankcruptcy. It's so easy to use them, but so hard to pay later.
So, my advice. Be smart, do not allow yourself to have unsettled credit card balance. Only use the credit cards when you have the cash to settle before the due date. Allow the cards to be your friend instead of your enemy!!

Wednesday, October 29, 2008

Credit Card - How many cards you have?

Yesterday, a group of credit card executive from a local bank visited our office and you know lah... what is the main intention. I told them, I just got an approved credit card last Friday and not planning to get any additional. Our office building is one of the top target for credit card sales (I think), because almost every month, there will be a group of credit card sale personals visit us and 'force' us to sign-up with them. Even a few groups were from West M'sia. I told them I am not interested to get any more additional cards, even though it's 'Free for Life' or with 'Petrol rebate'. The sale exe really persistent, and I admire him for that. Luckily, one of my colleague signed-up. Todate, I have 5 credit cards, but I only use 2. I plan to terminate 3 of them, use only 1 and another one as backup. For all 5 cards, I love my PB cards the most because it's convenient for me to make payment. And so far, the cards didn't give me any troubles. I have been using the PB cards since year 2004. Actually, I had more than 5 cards, but I terminated 2 of them last 2 years coz they started to charge me for the annual fee. So, how many cards you have? How many of them are active?

PB Gold Investment Account - Part 2

Today, i repurchased another 10g of gold at Public Bank with RM87.42/gram. The price has increased a bit compare to last Friday. I should have purchase it last Friday or Monday. Anyway, it's an investment. So, no one know the price tomorrow. If the price dropped below RM85/gram within 2 weeks, I will consider to repurchase another 5g. Do keep yourself updated with the current gold price at PB Gold Investment website. Or, you can request the PB investment consultant to inform you when the gold price dropped to certain desired price. My PB consultant said that the gold price changes 3 times a day. Today, I noticed 2 different prices. One at RM87.42/gram at about 12:45pm, another at RM87.53 at about 5pm. So, don't delay your investment when you think the time is right for you. Happy Investing!

Monday, October 27, 2008

PB Gold Investment Account - Part 1

Have you ever think of purchasing gold for the purpose of investment? From my readings, gold is one of the most precious minerals on Earth. I remember about 5 years back, gold price was RM40+ per gram. Early this year, when my bf bought a pair of gold earings and a gold pendant for me, the price has increased to RM90+ per gram. That's more than 120% increment! Since purchasing physical gold is very risky, and i don't want to worry about my gold at home or open a bank safe deposit box, so I started my gold investment plan through Public Bank Gold Investment Account in August 2008. My initial investment was 20g at about RM98 per gram. My PB bank advisor called me last Friday, just to tell me that gold price has dropped to RM80-RM82 per gram. I am planning to top up my gold investment by this week. Again, it's an investment, there's risk involved. So, the price might go further down as it's global economy crisis now. Wish me luck!!

Money not enough

I had always hear people around me complaint they dont have enough money, especially from the third week to the last few days of the month. Do you face the same problem as well? If yes, it's time for you to plan your spending (budgeting). Take one step after another. Start with a week planning, followed by 2 weeks, then a month. I know most will say, it's easier say than to do it. If you didn't try today, do you want to complaint the same phrase for a year, 2 years, 5 years or your whole life? I dont think you or the people around like enjoy that phrase. Take the challenge, stop complaining that you dont have enough money. Because the 2nd simple money magnet is 'never complaint you don't have enough money or your don't have money'.

Sunday, October 26, 2008

Money magnet

Do you believe that there's energy in everything in this world? Energy to make things happened? Energy to attract success and wealth? I believe there is :) I learnt from my mum, to attract more money or to become a money magnet, first, we must respect money. Do not simply place your money (cash/coins) anywhere or anyhow. Instead, must place them properly. For cash, fold them nicely and arrange in order and place firmly in your wallet/purse. For coins, the best place is a piggy bank. Try to practise the above for a full month. See if you can attract more money :) Good Luck :)