Managing your Financial

Assalammualaikum.

Jeeeeeez. Such a cheesy title, ey? And it sounded irony too for coming from a person like me. Tell you,  I am such a shopaholic and I my mantra is always forever buy first, think later. Before I worked as a banker (yes, irony!), I knew little about savings let alone financial management. I practiced the traditional way that is to put everything into a savings account and that is it. Lame right?

But I'm pretty sure there are a lot of people who are in my shoes anyway. Jangan tak mengaku! It is okey to admit, nothing to be shame about it. There are actually many ways how you can save your money and also diversifying your investments depends on your risk appetite. 

I ain't no expert in this but I can share a little of what I am doing and practicing. Not that I have millions in accounts or have someone donates me lump sum of money (how I wish) *eyes rolls* but I hope I could benefit you in some ways. 

1) ASB Loan

This is particularly focus on those with Bumiputera status *obviously*. Do not be skeptical with the word 'loan'. It is not you borrowing money and have to pay monthly, no. For most people with less exposure, they would go with traditional way of ASB savings that is to just keep your funds in ASB account, leave it there forever and earning the dividends every year. It works if you have a savings of RM200k in your account. But, I bet majority of us do not have such amount thus we opt for a lesser payment/deposit but with at the same time we still enjoying the dividend of RM200k. How interesting right? 

That is when ASB Loan come into the picture. Do not look ASB Loan as a commitment or liabililty that you have to commit every month but rather a savings that will benefit you in a short period of time with minimal capital. Let me share you what I have learned from the workshop and seminars I have attended on ASB financing. Maximum amount that you can take the loan is RM200k for maximum 25 years with monthly commitment of roughly RM1k+ Too high? Worry not. All you have to do is to fork up cash of RM14k+ as upfront payment for 1 year's worth if installment. For easy reference, you can refer the graph below: 

     

Then, on the next following year, when the dividend is declared (I shall take the most minimum dividend here that is 7%, so 7%xRM200,000 = RM14,000) you have to be discipline here by not taking the dividend for your own use but use to pay another upfront installment for that year instead and here again, no monthly commitment at all! Then, after 5 years (or more) for instance, you can sell off your ASB certificate and use the money for house downpayment or anything. Roughly you will get is : RM1193x60months = RM71,580! And that amount is not including the bonuses (if any) and it just a rough, direct calculation because you actually earn more than that! How interesting huh? With only a little capital, you will get so much return. That is only one example, there are plenty of others.

One more thing, you might want to follow Khairul Ezuan on Facebook. He is an ASB Guru like seriously. He gives you ideas and methods ad how ASB Loan can help you to maximize your money and open your eyes about ASB on a new perspective. Like seriously. I attended his talk before and he is a genius. Now I am smarter in managing my ASB Loan *I hope so*. If I'm not mistaken he also publishes few books on ASB. 

                              

2) Tabung Haji

The second best options is Tabung Haji, but again, provided if you have cash in hands. The dividend paid is even higher than ASB last year. However, for youngsters like us (ehem ehem), this falls as second options when you have existing ASB loan. If you have existing ASB Loan with maximum loan amount and has done above mentioned method to pay off the installment, then you are encourage to have Tabung Haji as your savings. Unlike ASB, despite the higher dividend, they don't offer you a loan, only normal savings and your yearly dividend will be calculated from your balance. Thanks to our local banks' effort especially Maybank (hello boss! Tehee) you can now transfer your funds from your Maybank account to Tabung Haji account via Maybank2u. How cool is that huh? Maybank is the best right?? No need to go to Tabung Haji nor Bank Islam anymore to deposit money. However, for opening of account, you still need to go to Tabung Haji or Bank Islam to do so. Besides transferring money between your Maybank accounts and Tabung Haji account, you can also withdraw your Tabung Haji from Maybank ATM machine using your ATM card. Coooool huh? Such a convenience. Well, it just a bit dangerous for a person like me where SALE is treated as emergency...

  

3) Guaranteed Investment

There are many types of investment. Investments itself is a general term. It could be your Unit Trust, MoneyMarket, Bonds and stuffs. Besides ASB, another recommended fund is Amanah Hartanah Bumiputra (AHB). It is also catered solely for Bumiputra and giving you the return of 6.5% p.a not including bonus (if any). You might remember the AHB TV advertisement where there's one mak cik entered an office building and checking out the wall, vase and stuffs and claiming they were all hers? Same like ASB, AHB also has maximum deposit limit that is RM400,000 per person. Unlike ASB, the dividend cannot be accumulated in your account and it will be payout straight to your account or paid by cheque instead. 

Another example of guaranteed payout is investment-linked which usually comes together with the coverage of life insurance. I would recommend those from Etiqa simply because I work for Maybank. Yeap, that is it. Hahaha. Well, Etiqa has been there for years and it's proven by their yearly performance, that is why my trust is with them. They have quite a number of products that comes with guaranteed payout to cater for your needs like retirement fund, education fund, health, medical card and stuffs. You may want to visit any Etiqa branch or Maybank branch or specifically my branch and specifically me to know further on the available products hahaha *nervous laugh*.

4) Non-Guaranteed Investment (Unit Trust)

I specifically focus more on unit trust. If I were to list them all down here, gosh know how long this entry could be. Might as well I published a text book hahaha. There are various fund houses in Malaysia. Public Mutual, CIMB CWA, Hwang, Amanah Mutual Berhad, Eastspring...eh macam-macam lah. These are all focusing on Unit Trust. UT is quite risky to take because the principal is not guaranteed and it depends on the uncertainty of market performance. These UT might be invested in various field like equity, finance, government bodies and stuffs. Always refer to their fund fact sheet to know further and check the past 10 years of market performance before you investing. If you have extra time and enjoy reading boring stuff, you might want to read the product prospectus too. For Muslims, please be extra careful and look into the area of which the fund invest into. Some may invest in for gambling or alcohol beverages companies so, be extra careful to make sure our investment is obeying the Shariah law. Kalau korang nak juga, dosa tanggung sendiri nohh...because I already informed beforehand. For the time being, market not may be good (if you wanted to sell off) because the fall of Ringgit, political effect and stuffs but to look at the bright side, it's actually a good time to buy because most of market price are down and you can get extra units with cheaper price. Do not worry about the economic condition so much because it is normal to face an economy downturn for averagely every 5 years. InsyaAllah soon we will be back picking up the pace. 

5) Credit Card

It may sound funny to you but if you are smart enough to choose the right credit card for yourself, it actually can be a great aid in times of emergency (you may or may not want to include SALE here). Determine your priority in using credit card. If you having it for petrol, then be it. Choose a card that has  a good points program so you can use that points in exchange of rebates, vouchers, annual fee waiver or anything! For example, Maybank Islamic Petronas Credit Card, (I choose Maybank because I work with them and I am biased like that haha), for RM1 you swiped on your card, you can get 5 points and on weekend you'll get 8 points wohooo! I secretly hope my boss read this. Eh, what, do I hear an increment, no? Haha. Good thing is, this card has no annual fee like everrrr. Another point is, since this is an Islamic card, thus, there would be no compounding charges. One thing to bear in mind, please please be discipline in using credit card. It is vital guys, or else it will kill you. I am serious. 

There are actually money other ways to manage your financial. I am not an expert and what I suggest is actually just a guidelines and what I am currently practicing. So far, it do good to me but it may not be suitable for you. I ain't born on a silver tray so money doesn't come easy on me. Heck, even my son doesn't born on a silver tray, so I gotta start planning for him as well like education investment, insurance and stuffs. All the fees and bills now scares me let alone what future might cost (welcome to adulthood, sorry there is no exit door). I just share what I know and I hope it will benefit you in some way. Afterall, you may want to refer other experts or any financial advisor near you for futher details. Whatever that is, tolonglah jangan join MLM or any Skim Cepat Kaya whatsoever. You may join but please choose a good one and wisely ok? Till then, be smart, be rich. Chewaaah.