City folks are calculative, in certain sense. They calculate the tolls that they are able to skip by choosing different routes to reach their destination. They calculate how much points they could earn on Bonus Link when making a decision to purchase a product. They figure out which computer shop to visit from lowyat.net before purchasing digital peripherals. They try different ways and spent a lot of time convincing their banks to waive the credit card annual fees.
We are always calculative on little things that are well publicised. Everyone in the city knows about toll-skipping routes, you will looked dumb for not knowing that. Even ladies shop often in Low Yat nowadays. We often overlooked the non-obvious stuff when we choose to be calculative. I will bring out a few simple examples.
Most of the people working city owns more than one bank account, even there is only one which is active. This is partly because most of us opt to have a career change every 2 to 3 years. Most of the companies insist their employees to have accounts with the bank they dealt with. Many therefore ended up with 3 or 4 ATM cards. I know of a friend who owns 8 ATM cards. Are you aware of how much an ATM card cost per annum? It is RM 8 per annum, regardless of your usage(for most banks). 8 cards would mean RM 64 per annum. You will seldom notice it because it is automatically deducted from your bank account. You will not feel the pinch as it is a minimal sum compared to your savings in bank. Do you really need all your ATM cards ? For your information, my ATM card is also my credit card. I pay RM 0 for ATM facilities although my daily withdrawal limit is capped to RM 3000. Of course, my credit card annual fees are normally automatically waived by the banks without even needing me to call them. (I only stick to one credit card to focus my spending on one card)
Many know how much they paid for their road tax every year but not their car insurance. We always get runners to renew our insurance and road tax without knowing much about the details. Do you know that your car value depreciates year by year ? This results in lower insurance premium. However, most drivers are not aware of this. They paid whatever standard amount which is advised by their insurance agents. The premium for RM80K and RM60K can be very different. Are you aware of that?
The list of examples will never end if I decide to cite every one of them. Advice for the day, it's good to be calculative at times, but not for the wrong reasons.
Wednesday, August 6, 2008
Sunday, August 3, 2008
Getting Rich Quick in the city
If you are approaching 30 and still not belonging to the group of rich, powerful and famous, do not be disappointed, many are with you.
This is NOT an entry telling you about how to get rich quickly. It is an entry speaking out what most of the early twenties young working adults had in their mind when they started their working life in the city: to get rich quick.
There is no shortcut for success. I have joined at least 2 MLM companies before and I know how hard people work towards their success. I also know some of their "scam" tricks on how to attract more members. Fortunately, the products I bought from direct sales membership are usable and effective for me and my family (though I did not continue to use them now anymore, the products are really good, it's just too expensive).
It is not the case for many. Many loss their hard-earned savings by investing into scams and memberships. They will not tell you their story as it is not something to be proud of. Some of them chose to create "fact exposure" sites which are widely publicised as they felt that it's their obligation to warn others about some flawed investment scheme.
Some of the young entrepreneurs found themselves to to be in trouble by trying to slaughter the golden goose. So, how should you decide what's the best for you in order to live comfortably in the city?
1. Be Patient
I have been through the early 20s stage. I must admit, 20s is a very competitive stage in life, especially for young graduates who works in the city. You don't have much experience and yet try to prove yourself to be more successful than your peers. You want to own an Altis when your peers are driving Vios. Many who are impatient to make their first pot of gold eventually loss their "investments" to some "professional scams". I grew up in the era of dotcom bubble during my early 20s, where many young, successful entrepreneurs are featured by the media. I have too, been given the limelight by main stream media featuring my startups during the early 20s . However, I have learned to be patient and analytical throughout the years in order to move to the next level. My advice for the early 20s, analyse the "opportunities" offered to you carefully before investing your time and money. Yes, time and energy is all you have when you are young and use them smartly. They will translate to success and money if you make your decisions wisely. Learn from other's experiences and try to create opportunities for yourself rather than buying into one. I will blog more about creating opportunities for yourself in my future entries.
2. Be Focused
Many will try everything to get rich and famous. Most of the people in their 20s will have similar philosophy of life: "never try, never know, so try everything and you might hit the jackpot". Ask any of your friends working in the city, 8 out of 10 of them will tell you that they have joined an MLM, unit trust or insurance company as agents before. However, probably only 1 out of 10 of those who joined remains as active member now. It's hard to achieve what you want in life if you are not focused. Trying out everything is not the solution to get something out of your life. I have told myself that I would like to improve the quality of people's life through technology. I am still sticking to that goal.
3. Be Balanced
My ex-neighbour never gave up persuading me to join his MLM business. I have nothing against MLM companies, as long as they sell their products honestly. One of the factors I chose not to join is because of the imbalance workload in MLM working environment. He drives a C Class now, bought just after 6 months joining the MLM company. Frankly speaking, his C Class does not come in easy. I knew how hard he worked. Ever since he joined the MLM network, I hardly seen him at home. He came back at 3 or 4 am almost every night, even during the weekends. Though he claimed that his working hours are flexible, it's not flexible at all to me. Weekends has to be dedicated for work and you usually spent your time in talkshow events at night. You hardly have time for your family. Always strike a balance in whatever you do, maintain a healthy lifestyle, you will never regret doing that.
Though it is hard to make yourself rich quickly in the city, there are still ways to guarantee yourself a comfortable lifestyle in the city. I hope to share more about this in my future entries.
This is NOT an entry telling you about how to get rich quickly. It is an entry speaking out what most of the early twenties young working adults had in their mind when they started their working life in the city: to get rich quick.
There is no shortcut for success. I have joined at least 2 MLM companies before and I know how hard people work towards their success. I also know some of their "scam" tricks on how to attract more members. Fortunately, the products I bought from direct sales membership are usable and effective for me and my family (though I did not continue to use them now anymore, the products are really good, it's just too expensive).
It is not the case for many. Many loss their hard-earned savings by investing into scams and memberships. They will not tell you their story as it is not something to be proud of. Some of them chose to create "fact exposure" sites which are widely publicised as they felt that it's their obligation to warn others about some flawed investment scheme.
Some of the young entrepreneurs found themselves to to be in trouble by trying to slaughter the golden goose. So, how should you decide what's the best for you in order to live comfortably in the city?
1. Be Patient
I have been through the early 20s stage. I must admit, 20s is a very competitive stage in life, especially for young graduates who works in the city. You don't have much experience and yet try to prove yourself to be more successful than your peers. You want to own an Altis when your peers are driving Vios. Many who are impatient to make their first pot of gold eventually loss their "investments" to some "professional scams". I grew up in the era of dotcom bubble during my early 20s, where many young, successful entrepreneurs are featured by the media. I have too, been given the limelight by main stream media featuring my startups during the early 20s . However, I have learned to be patient and analytical throughout the years in order to move to the next level. My advice for the early 20s, analyse the "opportunities" offered to you carefully before investing your time and money. Yes, time and energy is all you have when you are young and use them smartly. They will translate to success and money if you make your decisions wisely. Learn from other's experiences and try to create opportunities for yourself rather than buying into one. I will blog more about creating opportunities for yourself in my future entries.
2. Be Focused
Many will try everything to get rich and famous. Most of the people in their 20s will have similar philosophy of life: "never try, never know, so try everything and you might hit the jackpot". Ask any of your friends working in the city, 8 out of 10 of them will tell you that they have joined an MLM, unit trust or insurance company as agents before. However, probably only 1 out of 10 of those who joined remains as active member now. It's hard to achieve what you want in life if you are not focused. Trying out everything is not the solution to get something out of your life. I have told myself that I would like to improve the quality of people's life through technology. I am still sticking to that goal.
3. Be Balanced
My ex-neighbour never gave up persuading me to join his MLM business. I have nothing against MLM companies, as long as they sell their products honestly. One of the factors I chose not to join is because of the imbalance workload in MLM working environment. He drives a C Class now, bought just after 6 months joining the MLM company. Frankly speaking, his C Class does not come in easy. I knew how hard he worked. Ever since he joined the MLM network, I hardly seen him at home. He came back at 3 or 4 am almost every night, even during the weekends. Though he claimed that his working hours are flexible, it's not flexible at all to me. Weekends has to be dedicated for work and you usually spent your time in talkshow events at night. You hardly have time for your family. Always strike a balance in whatever you do, maintain a healthy lifestyle, you will never regret doing that.
Though it is hard to make yourself rich quickly in the city, there are still ways to guarantee yourself a comfortable lifestyle in the city. I hope to share more about this in my future entries.
Why having hard time to look for food in the city? Now, everyone can cook!
Most young working adults living in the city do not cook. Eating out has become a norm for many working class city folks. Sometimes, you just run out of idea where to take your dinner. With rising inflation, many hawkers and restaurants are either hiking their food prices or cutting down their food preparation cost. Neither is good for us as consumers. Well, we will need to eat everyday. So, what can we do ?
Learning how to cook can help to ease some inflation burden while helping you to de-stress yourself. I find cooking helpful in releasing your tension especially when you do your cooking during the weekends.
Learning how to cook is easy. Learning how to cook your favourite Malaysian food is especially important especially when you are in some foreign land. I have picked up some cookings tips and figure out some recipes from the following websites.
http://www.deliciousasianfood.com/
http://myhomerecipe.com/
http://imbinitchy.blogspot.com
http://steamykitchen.com/
http://www.rasamalaysia.com
Want to taste my cooking ? I am planning to run a pot luck at my place, anyone joining ?
Learning how to cook can help to ease some inflation burden while helping you to de-stress yourself. I find cooking helpful in releasing your tension especially when you do your cooking during the weekends.
Learning how to cook is easy. Learning how to cook your favourite Malaysian food is especially important especially when you are in some foreign land. I have picked up some cookings tips and figure out some recipes from the following websites.
http://www.deliciousasianfood.com/
http://myhomerecipe.com/
http://imbinitchy.blogspot.com
http://steamykitchen.com/
http://www.rasamalaysia.com
Want to taste my cooking ? I am planning to run a pot luck at my place, anyone joining ?
Saturday, August 2, 2008
Snippets: When God's plan is greater than Man's
"人算不如天算" (ren suan bu ru tian suan, it means man's calculation can never be more accurate than God's).
I used to work for a UK public listed company for 4 years. I was allocated GBP9000 worth of share option at the price of GBP1.79 which is due for exercise on August 2008. This translates to 5028 shares.
When I decided to leave my ex-company, the share price was at the height of GBP3.42, it was just 8 months before I could exercise my options. I will not get anything from share options if I leave the company anytime before the exercise date. My potential loss would be (5028 X GBP (3.42-1.79)) = GBP 8195.76 or RM57,534 (GBP/RM was 7.03 at that time). Enough to buy a brand new Waja.
It was a tough decision to make. Though I knew it was only a potential figure, it was something hard for me to part with. Something which I deserved having if I fulfilled my employment duty for another 8 months. I left in the end.
The news broke out on 31st July 2008 and the latest share price was GBP1.71, 8 pence lesser than the option price. What can I say?
I used to work for a UK public listed company for 4 years. I was allocated GBP9000 worth of share option at the price of GBP1.79 which is due for exercise on August 2008. This translates to 5028 shares.
When I decided to leave my ex-company, the share price was at the height of GBP3.42, it was just 8 months before I could exercise my options. I will not get anything from share options if I leave the company anytime before the exercise date. My potential loss would be (5028 X GBP (3.42-1.79)) = GBP 8195.76 or RM57,534 (GBP/RM was 7.03 at that time). Enough to buy a brand new Waja.
It was a tough decision to make. Though I knew it was only a potential figure, it was something hard for me to part with. Something which I deserved having if I fulfilled my employment duty for another 8 months. I left in the end.
The news broke out on 31st July 2008 and the latest share price was GBP1.71, 8 pence lesser than the option price. What can I say?
Friday, August 1, 2008
Buying vs Renting Property
This is a boring topic for most to go through, as you can find similar article in financial magazines or newspapers. However, I would like to share my experience from a more personal viewpoint rather than financial viewpoint. A viewpoint from someone who migrated from other states to Klang Valley for a living.
Almost 50% of the young working adults in Klang Valley do not grow up here. Many found a job in the city and made city their home after having a stable career. Many who came from foreign state rushed into buying properties during the first few years of their working life. A lot of them do not want to "service the loan" for their landlords, while some are worried about the quick-rising house price. It's really a tough decision to make, especially when your income is merely in the range of RM 3-4K. So , what are the factors you should consider before buying a property?
1. Do you really like city life?
Many of my friends went back to their hometown within 5 years after working in the city. Some of them find it hard to cope with working stress and the high living cost, while some find city a cold and boring place. I had a friend who constantly having gastro problems when she started working in the city. Doctors are unable to diagnose what's her problem exactly but she has recovered after going back to her hometown. Do you really like city life ? Are you ready to bite through the bullet and go through the city struggles? If not, renting a place is still the best option during the first 3 years of your working life.
2. Which city do your want to be exactly?
Many of my friends started to work in Penang and moved to Kuala Lumpur eventually, vice versa. I have also friends who worked in Kuala Lumpur and decided to move to Singapore after getting fed up with the rising crime rate. If you are not sure about the city that you plan to settle down with, be safe, rent a place.
3. Are you the only child?
Well, many will wonder why this is important. Think about this, what if your parents wants to stay with you? You need a bigger house ? Or you might need to move back to your hometown?
4. Do you have a stable relationship/ planning to get married ?
Sometimes your wife/husband might have different plans on whether to settle down in the current city. Be sure about it.
5. Where do you prefer to work at?
My neighbour is an interior designer. He just sold his house two weeks back. He works in Damansara Heights and interior design companies normally have their premises located at the city center. It's hectic for him to travel from house to work and he had realise that he had made a wrong decision buying a place far from his work place.
6. Are you paying more than 3 % of the total property value per annum for your rental?
If the property you have rented cost you RM 500 per month(RM 6,000 per annum), the average value of the property should be 6,000/3% = RM 200,000. If you are renting a property worth more than 200K at Rm 500 per month, you can slowly look for a property you like before rushing buying into one.
7. Can you afford a property which you don't mind staying in with a housing repayment as much as 25 % of your income?
If you are making RM 4000 a month, you can afford to repay RM1000 for your housing loan. Are you able to afford that and would you stay in the property after it is ready ? Many bought their properties without doing proper survey. They bought simply because it is cheap and affordable. Some chose to continue renting a place even after their properties are completed because they don't really like the place they bought. Why do you want to buy in the first place if you know you won't be staying in that property?
8. Are you looking for an investment or a place call home ?
Many do not have an idea what exactly they wanted, a property for investment or for own stay.
It is hard to satisfy both criteria unless you have gone through hundreds of property in town. Rule of thumb, if you are looking for a property for investment purpose, ensure that it generates positive cash flow.(Malaysia's property has very low capital appreciation, ranging from 2-4 %, which is lesser or same as FD) If you are looking for one for own stay, make sure you like the place, capital appreciation is secondary. Never force yourself to purchase a property just because of the capital appreciation potential. You might regret someday.
So, are you ready to buy one now?
Almost 50% of the young working adults in Klang Valley do not grow up here. Many found a job in the city and made city their home after having a stable career. Many who came from foreign state rushed into buying properties during the first few years of their working life. A lot of them do not want to "service the loan" for their landlords, while some are worried about the quick-rising house price. It's really a tough decision to make, especially when your income is merely in the range of RM 3-4K. So , what are the factors you should consider before buying a property?
1. Do you really like city life?
Many of my friends went back to their hometown within 5 years after working in the city. Some of them find it hard to cope with working stress and the high living cost, while some find city a cold and boring place. I had a friend who constantly having gastro problems when she started working in the city. Doctors are unable to diagnose what's her problem exactly but she has recovered after going back to her hometown. Do you really like city life ? Are you ready to bite through the bullet and go through the city struggles? If not, renting a place is still the best option during the first 3 years of your working life.
2. Which city do your want to be exactly?
Many of my friends started to work in Penang and moved to Kuala Lumpur eventually, vice versa. I have also friends who worked in Kuala Lumpur and decided to move to Singapore after getting fed up with the rising crime rate. If you are not sure about the city that you plan to settle down with, be safe, rent a place.
3. Are you the only child?
Well, many will wonder why this is important. Think about this, what if your parents wants to stay with you? You need a bigger house ? Or you might need to move back to your hometown?
4. Do you have a stable relationship/ planning to get married ?
Sometimes your wife/husband might have different plans on whether to settle down in the current city. Be sure about it.
5. Where do you prefer to work at?
My neighbour is an interior designer. He just sold his house two weeks back. He works in Damansara Heights and interior design companies normally have their premises located at the city center. It's hectic for him to travel from house to work and he had realise that he had made a wrong decision buying a place far from his work place.
6. Are you paying more than 3 % of the total property value per annum for your rental?
If the property you have rented cost you RM 500 per month(RM 6,000 per annum), the average value of the property should be 6,000/3% = RM 200,000. If you are renting a property worth more than 200K at Rm 500 per month, you can slowly look for a property you like before rushing buying into one.
7. Can you afford a property which you don't mind staying in with a housing repayment as much as 25 % of your income?
If you are making RM 4000 a month, you can afford to repay RM1000 for your housing loan. Are you able to afford that and would you stay in the property after it is ready ? Many bought their properties without doing proper survey. They bought simply because it is cheap and affordable. Some chose to continue renting a place even after their properties are completed because they don't really like the place they bought. Why do you want to buy in the first place if you know you won't be staying in that property?
8. Are you looking for an investment or a place call home ?
Many do not have an idea what exactly they wanted, a property for investment or for own stay.
It is hard to satisfy both criteria unless you have gone through hundreds of property in town. Rule of thumb, if you are looking for a property for investment purpose, ensure that it generates positive cash flow.(Malaysia's property has very low capital appreciation, ranging from 2-4 %, which is lesser or same as FD) If you are looking for one for own stay, make sure you like the place, capital appreciation is secondary. Never force yourself to purchase a property just because of the capital appreciation potential. You might regret someday.
So, are you ready to buy one now?
Addendum: Inflation, BLR, OPR, FD Rates
Bank Negara has just published their latest report on Malaysian economy. As per my previous entry on inflation and real FD return rates, I would give you a clearer picture depicted from the BNM report. Picture is worth more than thousand words,:).
Real FD return rates is decreasing since Sept 07'.
MYR is depreciating against major currencies since early of the year.
So , what are going to do with your Fixed Deposit in Ringgit Malaysia? :).
*all images above are cannibalised from BNM's latest report
Real FD return rates is decreasing since Sept 07'.
MYR is depreciating against major currencies since early of the year.
So , what are going to do with your Fixed Deposit in Ringgit Malaysia? :).
*all images above are cannibalised from BNM's latest report
Snippets: How to get the job you want by having a good resume
Jobs are aplenty in the city. This is why people come to cities to seek for better opportunities. However, getting the right job for yourself is never easy. It is a two-way matching process, and a trade between employers and employees. You might be good at your expertise and domain, but not good at expressing the skills and achievements you possess on a piece of paper. Your skill sets can be much more valuable, by having a well-polished CV to "enlighten" your potential employer on the talent they needed.
If you are not good at expressing yourself through your CV, it can be solved, easily. Visit Boon's blog, or drop him an email at boon [at] leapwalking [dot] com to ask for help.
If you are not good at expressing yourself through your CV, it can be solved, easily. Visit Boon's blog, or drop him an email at boon [at] leapwalking [dot] com to ask for help.
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