When and How to be a Millionaire

Do you dream to be a Millionaire? Most great achievement start with a dream. But, do you just dream (day dreaming) or you work towards your dream? If you want to know when and how to be a Millionaire, you will need to do some basic calculations based on your current situation (how much you have/can save, how long you can save, how frequent is your saving plan, what is your rate of return (ROI) of your investment). You also need to include other factors in your calculations, such as the inflation rate and your bank taxes (if any).
You will have to use your mathematical skills, spend quite a few hours and some headache to know the final answers. Thanks to the current technology and MSN Money. They have a Millionaire calculator to help us to plan for our Millionaire dream with just a few clicks. Do try out the Millionaire calculator and plan your Millionaire journey ahead. Perhaps you can read up this MSN articles too. The author, Liz Pulliam Weston is a Millionaire herself.
See you at the Millionaires Club!

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CHANGES is in the Air

Today, probably the most mentioned word @ name in the air is ‘Obama’. From United States (US) to Kenya to Indonesia… From local radio stations to local tv to the internet… His name is everywhere. Barack Obama or his full name Barack Hussein Obama II, is the newly elected forty-fourth President of US. He is also the first African-American US President. He brings new hope not only to US nations but to the whole nations.
Personally, I hope Obama brings peace to the world. May he brings more love to the heart and make the Earth a place for everyone. May he calms the global crisis which we are facing now. May he brings those serving soldiers to their beloved family.
Yes, ‘We Need CHANGE’.

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What is Your Number?

This morning I heard an advertisement through a local radio channel that Prudential has a website on one of most important reason for us to save, retirement planning. The website is called What is Your Number? When I clicked on the poll ‘Have you ever thought about how much you need for your retirement?’ – Only 39% responded YES (poll data as at 11:36pm, 3 Nov 2008). That’s very sad to know. Are you in the 39% or the 61%? I really hope you’re in the 39%. If you’re not, don’t worry, you can find the retirement number by clicking ‘What’s your number’ calculator in the middle of right hand side. You will need to answer a few simple questions. Bear in mind, the answers are important as it will affect your number. Make sure you provide the closest answer possible if you want to get a real number. For me, my number is RM1,611,103. Previously, I thought RM1m will be enough for my retirement at 55 years old. 🙁 It’s time for me to review my retirement planning.
Other than the calculators, you can also find a lot of useful and ‘scary’ facts (real facts which is hard to accept because it’s really sad most people did not plan for retirement. even if they planned, it didn’t turn out to be what they wished) on the website. Another special things about this site is most of the data are based on Malaysian populations. It’s quite accurate for me compare to other facts and figure which were published based on western populations.
Share your number with me ya!

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Start your Saving Plan NOW

If you’re like most of the people in the financial articles which I read through, you will think that you can’t start your saving plan now. You would think you don’t even have enough to last till the end of the month, where to get the extra cash for saving? Mostly you will hear the responds from your own mind “Wait till next year, when I have my increment” or “Wait till i settled my car/house loan”…. and so many more excuses… From my readings, I have also learnt that the group of people who managed to save are not the group who are in the highest earning. Most of them are in the lower and middle income group. But they have strong desire with persistent action to save. They have a clear define financial goal, and work towards the goal.
I believe the thinking of ‘I will be able to save when I have my salary increased’ is a myth. The truth is when your income is small, you have a simple life. But, when your income is getting bigger, your car, your house, and even your stomach will be getting bigger as well. This is human nature to lift their standard of life as their income is growing. So, when will you have enough to save?
The best time to start your saving plan is NOW. No other time is better than now. The amount that you earned is not related to the amount you can save. Stop giving excuses. Start your saving plan today.

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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!!!

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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 🙂

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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!!

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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?

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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!

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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!!

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