On average, we spend $1,700 a year on clothes. Here's how to reduce that number and still look good.
1. Sell what you don’t wear
If you don’t wear it, drop it off at a consignment shop. When the shop sells your clothing, they’ll cut you a check for a portion of the profits. You won’t get the full amount, but you won’t have to do much work either. Stacy recommends going through your closet once a year. If you haven’t worn that sweater in 365 days, you don’t need it.
2. Shop thrift stores
In the video, Stacy found a pair of Lucky brand jeans for $12.99. Thrift stores sell gently used clothing at a deep discount. Many stores also have regular sales or a weekly special. A thrift store in my area has a “50 percent off anything with a yellow tag” sale every Wednesday. Just make sure you’re shopping at a true thrift store and not a vintage clothing store. The difference: Vintage clothing stores sell trendier older pieces at a markup. Thrift stores sell older and newer clothes at a discount.
3. Find coupons online
At Money Talks News, we don’t believe in paying retail, and you shouldn’t either. (Check out our deals page before you shop online or in-store.) On the go, use your smartphone to find clothing coupons before you check out. There are several great coupon locating apps for Androids and the iPhone. My favorites:
Coupon Closet
Coupon Sherpa
Shooger
4. Check the tag before you buy
Read the label before you buy. If you buy a dry-clean-only silk skirt, you’ll keep paying for it every time you pull up to the cleaners. Stick to machine-washables and save.
5. Take care of your clothes
Remember that “machine-washable” doesn’t equal “indestructible.” Wash your clothes on the gentle cycle in cool water and even line-dry them – they’ll last the longest this way. For delicate items or clothes that might shrink, hand wash. Take care of your clothes and you’ll get years of use out of them.
6. Buy out of season
Retailers put out-of-season clothing on clearance to clear the stock from their stores. You can save a ton buying clothing when you don’t need it – like a coat in May or a swimsuit in December.
7. Shop online clearance sales
Don’t discount online retailers (and retailers’ websites) when you’re shopping for clothes. They follow seasons too with huge discounts – and a larger selection than most stores – on clearance items.
8. Repurpose old clothes
If you’re handy with a needle and thread – or even a pair of scissors – turn something you’re no longer wearing into something else. I cut the legs off my old jeans and turn them into shorts. My friends repurpose old shirts into tank tops and skirts. You can even make a purse out of an old sweater.
9. Don’t buy it because it’s on sale
Don’t buy clothes unless you really need them – even if they’re on sale. Thirty percent off isn’t a good deal if you don’t wear it 99 percent of the time.
10. Buy basics from generic brands
Your basics don’t need a designer label. Buy T-shirts, tank tops, and lounge wear from cheaper stores. I buy all my layering tank tops at Old Navy. My track pants I wear for errands came from Target. Simple cuts and solid colors don’t require a high-end designer.
11. Skip expensive workout clothing
Same goes for workout clothes. A pair of Puma running capris cost $55 – or you can buy them at Old Navy for $16.94. You’ll get the same workout whether you’re wearing a fancy yoga outfit or an old T-shirt and sweatpants. Check cheaper retailers like Target, Walmart, and Kohls for more affordable workout gear.
12. Proceed with caution at outlet malls
Outlet malls do have deals. They also have scams. In 5 Tips for Finding Outlet Store Deals, Brandon found that some outlet store clothing isn’t store overstock. The pieces were actually made for the outlet mall, meaning they’re lower quality. And those “75 percent off!” deals – they’re not actually 75 percent off. Read the fine print and you’ll see that is the discount on the suggested price, not the actual retail price. It’s more marketing gimmick than deal.
Check the labels on outlet store clothes. Avoid anything that says “factory line” and do the math on supposed deals before you buy.
http://www.moneytalksnews.com/2012/05/04/23-tips-for-saving-money-on-clothing
Sunday, August 12, 2012
25 Simple Ways to Save an Extra $1,000
Every year, I make New Year’s resolutions. And every year, I stick to them – for a few months. By July, I’ve often given up.
I’m not alone. “A full 35 percent of New Year’s resolutions are broken before the end of January of the successive year,” one survey revealed. If your resolution was to give up drinking or stop smoking, Money Talks News really can’t help you. But if it was to save more money, we’ve got you covered.
1. Cut your cell phone plan
Have you looked at your cell phone history lately? If you’re using less than your allotted minutes, text, or data, switch to a lower plan. Six months ago, I dropped my $89.99 unlimited plan for a $59.99 plan with 1,000 minutes – a savings of $30 a month and $180 so far. And I don’t miss the minutes. (I wasn’t using them anyway.) Comb through your history and bills, then ditch anything you’re not using.
2. Ditch the landline
Speaking of ditching things, it may be time to cut the landline. If you primarily use your cell phone, why keep two services that do the same thing? As Stacy said in the video, cutting your landline service can save $25 to $30 a month – around $300 a year.
3. Take a staycation
Two of my friends just took their summer vacations. One spent a week in Hawaii and spent close to $2,000 on airfare, hotels, and dining out. She thought she got a good deal – until my other friend bragged that he had taken a week-long staycation and only spent $500. He saw all the tourist stuff we never go to as locals and ate at local five-star restaurants every night for a week.
Staycations are all the rage lately for one reason: They’re a lot cheaper than regular vacations. If you’re trying to stash away an extra grand this year, consider staying home and living like a tourist in your own city for a few days.
4. Raise your deductibles
Raising your insurance deductibles will lower your monthly payment. For example, raise your car and homeowners insurance deductibles from $200 to $1,000 and you could save hundreds in premiums. Just make sure you don’t raise the deductible higher than you can afford if you need to file a claim.
5. Drop the gym membership
I vowed to do more cardio this year – but I’m not spending the $34.99 a month my neighborhood gym charges. Instead, I’m running at the local park and using some Tae Bo videos at home. Sure, I feel silly sometimes doing high kicks in my living room, but I’ve saved $209.94 so far this year by skipping the gym. And you can do the same. You really don’t need the fancy equipment, just a good pair of running shoes.
6. Turn off the premium channels
In our article You Don’t Have to Pay For Cable TV, we lay out exactly how you can ditch the cable altogether and still watch your favorite shows. But if you want to keep your cable, at least ditch the premium channels. HBO, Cinemax, and Showtime each cost about $13 a month or $39 for all three. If you cut them off today, in just six months you’ll be $234 richer.
7. Brown-bag it
A survey by staffing firm Accounting Principals found that more than 66 percent of workers spend around $2,000 a year on lunch. If you start brown-bagging it every day, you could easily cut that by 50 percent – and save $1,000 a year.
8. Cut out ATM fees
My old bank didn’t have nearby ATMs, and they charged a convenience fee when I used one outside of their network – so I spent about $5 for every ATM withdrawal. Going to the ATM once a week was costing me $20 a month. So I switched to a bank with more free ATMs in my area, saving $240 a year. If you’re paying for access to your own money, you should do the same.
9. Buy out of season
Buying out of season (swimsuits in January or Halloween decorations in November) can save you a ton of money. This year, Target put their heart-shaped Russell Stover’s boxes on clearance for 75 percent off a week after Valentine’s Day. I got four boxes (regularly priced $8.99) for $2.25 – a savings of $6.74 per box.
10. Sell what you’re not using
Want a painless way to beef up your savings? Go through your house and toss everything into a box that you haven’t used or worn this year. Then sell that stuff and put the money you make into savings. Check out our article 5 Best Websites for Turning Junk Into Cash, or go the old-fashioned route with a yard sale or a visit to a consignment shop.
11. Buy generic
Many products are the same, no matter the brand name. For example, in 7 Things You Should Always Buy Generic, we suggest skipping the name brands on pain relievers, water, milk, margarine, bleach, cleaning products, and spices. They all worked as well as their name brand counterparts, and we found savings up to 60 percent.
12. Use coupons
Vow to always use coupons, and not just on your groceries. With sites like Groupon and LivingSocial, you can snag deep discounts at local retailers. And if you’re shopping online, always do a quick search for a coupon code before you check out. Sites like RetailMeNot and SlickDeals post coupon codes and special offers daily. You can also check out our deals page.
13. Quit smoking
In my area, a pack of cigarettes costs about $4.75 (and that’s cheap). Smoke a pack a day and you’ll spend $144 a month. In a year, you’ll spend $1,733 on cigarettes. Quitting isn’t just good for your health, it’s good for your wallet. But if you’re not going to quit, at least save some money on the smokes you buy. Check out 6 Ways to Save on Cigarettes for ideas – like buying in cartons and shopping for your smokes on an Indian reservation.
14. Reduce your energy use
According to The White Fence Index, U.S. consumers spend an average of $96.55 a month and $1,158.60 a year on electricity. If you reduced your bill by 30 percent, you’d save $28.96 in a month and $347.58 a year.
That isn’t hard to do – just install a few CFL light bulbs, turn up (or, when it’s cold, down) your thermostat, and flip the switch when you leave the room.
15. Stop paying for pricey shipping
The other day, I got a warning from Mint telling me I spend a lot on shipping costs. I looked at my history, and they’re right: Last month, I spent more than $50 just in shipping, mostly because I had a hard drive overnighted to me for an extra $19.99.
I wasted almost $20 because I was impatient. Don’t do the same. Look for sites with free or discounted shipping and just wait the few extra days. If you ordered $19.99 overnight shipping once a month, you’d spend $239.88 a year on delivery fees.
16. Do it yourself
Hiring a pro is expensive, especially when you have the Internet to teach you how to do it yourself. In the past year, I’ve fixed a leaking faucet, replaced a shower head, repaired a door, and re-tiled my bathroom – all things I didn’t know how to do before I started. I watched home-improvement videos, taught myself, and saved the money. And you can too. Check out:
This Old House
bobvila
The Family Handyman
17. Comparison shop for beer
Between happy hour, game-day specials, and weekly ads, there are plenty of deals to keep you from paying full price for alcohol. For example, in 5 Tips to Save on Beer, Money Talks News found a website called SaveonBrew.com that posts discount deals on beer in your area.
18. Find free fun
No matter what you like to do, there’s probably a free or cheaper version. For example, I love live music, but even a cheap concert ticket can cost $45. If I go twice a month, that’s $1,080 a year. But my city hosts weekly free concerts downtown. The bands are usually local, but they’re good and free. Now I only buy tickets to the big-name bands once or twice a year, saving about $1,000.
19. Buy last-generation electronics
Buying the latest and greatest electronics isn’t always worth it. Electronics like smartphones are updated and released so frequently that the changes made from one year to the next can be barely noticeable to the average user. And soon as the new device comes out, the old device gets cheaper. So wait and buy year-old devices to save.
20. Haggle
I never used to haggle, not even at a garage sale, but then my sister scored a $100 discount on a new couch just by asking – and I was hooked. Ask for a discount before you buy anything, even at a major retailer. You could get a reduction in price just by asking.
21. Stop buying new books
I’ve been eying the new Charlaine Harris book, but Amazon wants $21.95 for a hardcover copy. I know there are plenty of ways to get a book free or dirt cheap, so I’m waiting. And you should too. Buying new books is costly, especially when you can get them for free at the public library or by using a book swapping service. Check out the 4 Best Sites for Trading in Old Books.
22. Buy used
I recently did a story called 20 Things You Shouldn’t Buy Used. And for those 20 things – like helmets, cribs, and mattresses – I stand by my statement: Don’t buy them used. But for everything else, you can save 50 percent or more by combing Craigslist, garage sales, and resale shops. Want some ideas on what you should buy used? Check out 14 Things You Should Always Buy Used.
23. Turn off the advertising
I rarely watch live TV, and I don’t subscribe to beauty magazines, so I don’t feel the pressure of advertising. But when I’m in the salon browsing through a magazine, I inevitably find half a dozen products I think I need right now. I wouldn’t have known those products even existed if I hadn’t opened that magazine. Start avoiding commercials and ads, and you’ll save a ton of money.
24. Use household products instead of commercial ones
The number of commercial products on the market is seemingly endless – especially cleaning and beauty products. You can spend a good chunk of your income buying special products designed to only do one job – or you can save that money and use something you already have around the house. Check out 19 Uses for Baking Soda, Dryer Sheets, and Beer for ideas – like using baking soda as a facial scrub, or cleaning your windows with vinegar.
25. Go meatless
One pound of 93 percent lean hamburger meat costs $6.95 in my local grocery store – and we go through about a pound in one meal at my house. To save my money and my health, I’ve stopped eating so much meat – especially red meat. I used to buy three of those packages per week, spending $20.85. Now I eat three meatless meals a week and save that money, which adds up to just more than $1,000 a year.
http://finance.yahoo.com/news/25-simple-ways-save-extra-055511855.html
I’m not alone. “A full 35 percent of New Year’s resolutions are broken before the end of January of the successive year,” one survey revealed. If your resolution was to give up drinking or stop smoking, Money Talks News really can’t help you. But if it was to save more money, we’ve got you covered.
1. Cut your cell phone plan
Have you looked at your cell phone history lately? If you’re using less than your allotted minutes, text, or data, switch to a lower plan. Six months ago, I dropped my $89.99 unlimited plan for a $59.99 plan with 1,000 minutes – a savings of $30 a month and $180 so far. And I don’t miss the minutes. (I wasn’t using them anyway.) Comb through your history and bills, then ditch anything you’re not using.
2. Ditch the landline
Speaking of ditching things, it may be time to cut the landline. If you primarily use your cell phone, why keep two services that do the same thing? As Stacy said in the video, cutting your landline service can save $25 to $30 a month – around $300 a year.
3. Take a staycation
Two of my friends just took their summer vacations. One spent a week in Hawaii and spent close to $2,000 on airfare, hotels, and dining out. She thought she got a good deal – until my other friend bragged that he had taken a week-long staycation and only spent $500. He saw all the tourist stuff we never go to as locals and ate at local five-star restaurants every night for a week.
Staycations are all the rage lately for one reason: They’re a lot cheaper than regular vacations. If you’re trying to stash away an extra grand this year, consider staying home and living like a tourist in your own city for a few days.
4. Raise your deductibles
Raising your insurance deductibles will lower your monthly payment. For example, raise your car and homeowners insurance deductibles from $200 to $1,000 and you could save hundreds in premiums. Just make sure you don’t raise the deductible higher than you can afford if you need to file a claim.
5. Drop the gym membership
I vowed to do more cardio this year – but I’m not spending the $34.99 a month my neighborhood gym charges. Instead, I’m running at the local park and using some Tae Bo videos at home. Sure, I feel silly sometimes doing high kicks in my living room, but I’ve saved $209.94 so far this year by skipping the gym. And you can do the same. You really don’t need the fancy equipment, just a good pair of running shoes.
6. Turn off the premium channels
In our article You Don’t Have to Pay For Cable TV, we lay out exactly how you can ditch the cable altogether and still watch your favorite shows. But if you want to keep your cable, at least ditch the premium channels. HBO, Cinemax, and Showtime each cost about $13 a month or $39 for all three. If you cut them off today, in just six months you’ll be $234 richer.
7. Brown-bag it
A survey by staffing firm Accounting Principals found that more than 66 percent of workers spend around $2,000 a year on lunch. If you start brown-bagging it every day, you could easily cut that by 50 percent – and save $1,000 a year.
8. Cut out ATM fees
My old bank didn’t have nearby ATMs, and they charged a convenience fee when I used one outside of their network – so I spent about $5 for every ATM withdrawal. Going to the ATM once a week was costing me $20 a month. So I switched to a bank with more free ATMs in my area, saving $240 a year. If you’re paying for access to your own money, you should do the same.
9. Buy out of season
Buying out of season (swimsuits in January or Halloween decorations in November) can save you a ton of money. This year, Target put their heart-shaped Russell Stover’s boxes on clearance for 75 percent off a week after Valentine’s Day. I got four boxes (regularly priced $8.99) for $2.25 – a savings of $6.74 per box.
10. Sell what you’re not using
Want a painless way to beef up your savings? Go through your house and toss everything into a box that you haven’t used or worn this year. Then sell that stuff and put the money you make into savings. Check out our article 5 Best Websites for Turning Junk Into Cash, or go the old-fashioned route with a yard sale or a visit to a consignment shop.
11. Buy generic
Many products are the same, no matter the brand name. For example, in 7 Things You Should Always Buy Generic, we suggest skipping the name brands on pain relievers, water, milk, margarine, bleach, cleaning products, and spices. They all worked as well as their name brand counterparts, and we found savings up to 60 percent.
12. Use coupons
Vow to always use coupons, and not just on your groceries. With sites like Groupon and LivingSocial, you can snag deep discounts at local retailers. And if you’re shopping online, always do a quick search for a coupon code before you check out. Sites like RetailMeNot and SlickDeals post coupon codes and special offers daily. You can also check out our deals page.
13. Quit smoking
In my area, a pack of cigarettes costs about $4.75 (and that’s cheap). Smoke a pack a day and you’ll spend $144 a month. In a year, you’ll spend $1,733 on cigarettes. Quitting isn’t just good for your health, it’s good for your wallet. But if you’re not going to quit, at least save some money on the smokes you buy. Check out 6 Ways to Save on Cigarettes for ideas – like buying in cartons and shopping for your smokes on an Indian reservation.
14. Reduce your energy use
According to The White Fence Index, U.S. consumers spend an average of $96.55 a month and $1,158.60 a year on electricity. If you reduced your bill by 30 percent, you’d save $28.96 in a month and $347.58 a year.
That isn’t hard to do – just install a few CFL light bulbs, turn up (or, when it’s cold, down) your thermostat, and flip the switch when you leave the room.
15. Stop paying for pricey shipping
The other day, I got a warning from Mint telling me I spend a lot on shipping costs. I looked at my history, and they’re right: Last month, I spent more than $50 just in shipping, mostly because I had a hard drive overnighted to me for an extra $19.99.
I wasted almost $20 because I was impatient. Don’t do the same. Look for sites with free or discounted shipping and just wait the few extra days. If you ordered $19.99 overnight shipping once a month, you’d spend $239.88 a year on delivery fees.
16. Do it yourself
Hiring a pro is expensive, especially when you have the Internet to teach you how to do it yourself. In the past year, I’ve fixed a leaking faucet, replaced a shower head, repaired a door, and re-tiled my bathroom – all things I didn’t know how to do before I started. I watched home-improvement videos, taught myself, and saved the money. And you can too. Check out:
This Old House
bobvila
The Family Handyman
17. Comparison shop for beer
Between happy hour, game-day specials, and weekly ads, there are plenty of deals to keep you from paying full price for alcohol. For example, in 5 Tips to Save on Beer, Money Talks News found a website called SaveonBrew.com that posts discount deals on beer in your area.
18. Find free fun
No matter what you like to do, there’s probably a free or cheaper version. For example, I love live music, but even a cheap concert ticket can cost $45. If I go twice a month, that’s $1,080 a year. But my city hosts weekly free concerts downtown. The bands are usually local, but they’re good and free. Now I only buy tickets to the big-name bands once or twice a year, saving about $1,000.
19. Buy last-generation electronics
Buying the latest and greatest electronics isn’t always worth it. Electronics like smartphones are updated and released so frequently that the changes made from one year to the next can be barely noticeable to the average user. And soon as the new device comes out, the old device gets cheaper. So wait and buy year-old devices to save.
20. Haggle
I never used to haggle, not even at a garage sale, but then my sister scored a $100 discount on a new couch just by asking – and I was hooked. Ask for a discount before you buy anything, even at a major retailer. You could get a reduction in price just by asking.
21. Stop buying new books
I’ve been eying the new Charlaine Harris book, but Amazon wants $21.95 for a hardcover copy. I know there are plenty of ways to get a book free or dirt cheap, so I’m waiting. And you should too. Buying new books is costly, especially when you can get them for free at the public library or by using a book swapping service. Check out the 4 Best Sites for Trading in Old Books.
22. Buy used
I recently did a story called 20 Things You Shouldn’t Buy Used. And for those 20 things – like helmets, cribs, and mattresses – I stand by my statement: Don’t buy them used. But for everything else, you can save 50 percent or more by combing Craigslist, garage sales, and resale shops. Want some ideas on what you should buy used? Check out 14 Things You Should Always Buy Used.
23. Turn off the advertising
I rarely watch live TV, and I don’t subscribe to beauty magazines, so I don’t feel the pressure of advertising. But when I’m in the salon browsing through a magazine, I inevitably find half a dozen products I think I need right now. I wouldn’t have known those products even existed if I hadn’t opened that magazine. Start avoiding commercials and ads, and you’ll save a ton of money.
24. Use household products instead of commercial ones
The number of commercial products on the market is seemingly endless – especially cleaning and beauty products. You can spend a good chunk of your income buying special products designed to only do one job – or you can save that money and use something you already have around the house. Check out 19 Uses for Baking Soda, Dryer Sheets, and Beer for ideas – like using baking soda as a facial scrub, or cleaning your windows with vinegar.
25. Go meatless
One pound of 93 percent lean hamburger meat costs $6.95 in my local grocery store – and we go through about a pound in one meal at my house. To save my money and my health, I’ve stopped eating so much meat – especially red meat. I used to buy three of those packages per week, spending $20.85. Now I eat three meatless meals a week and save that money, which adds up to just more than $1,000 a year.
http://finance.yahoo.com/news/25-simple-ways-save-extra-055511855.html
Monday, August 6, 2012
Gold investment accounts revisited
Want to invest in gold but deterred by the risks and hassle of keeping physical gold bars? Then gold investment accounts, which allow you to buy and sell gold and keep track of your transactions through a passbook, may be for you.
When gold investment accounts reviewed in June last year, they were only available at three banks — Kuwait Finance House, Public Bank and Maybank. Due to gold’s growing popularity, CIMB and United Overseas Bank (M) (UOB) have jumped onto the bandwagon as well. All banks, except for Kuwait Finance House, use Swiss Pamp as the underlying gold bar for their gold investment accounts. Kuwait Finance House uses a generic gold bullion and UOB uses different gold bullions. Investors can select their preferred brand when making a withdrawal (see opposite page).
You must have a savings or current account at the bank to open a gold investment account. On Aug 23, gold prices hit a record US$1,911 (RM5,688) an ounce in Asia. On the back of rising prices, the buy and sell prices of gold investment accounts have also increased by about 30% over a period of 15 months. A year ago, the precious metal’s purchase price (the price at which the banks buy the gold from customers) ranged from RM121 and RM123, and the sell price (the price at which the banks sell the gold) ranged from RM126 to RM128. At the end of August, the buy price ranged from RM174 to RM178, while the sell price ranged from RM180 to RM185.
To enhance your returns, choose an account that has the smallest spread (the difference between the buy and sell prices). New players such as UOB and CIMB offer the narrowest spreads, with UOB outshining its competitors with 0.55% and 1.1% for the Premier Gold Account and Gold Savings Account respectively. Kuwait Finance House has the highest spread of 4.45%. As always, watch out for fees that will negate your returns. CIMB, Public Bank and UOB impose a fee if the minimum balance falls below a stipulated level at month- and year-ends. Kuwait Finance House does not impose any additional fees. Public Bank levies the highest fees; when customers make a withdrawal of physical gold, the conversion fees ranging from RM220 to RM270 are the highest among the banks. Think about the type of withdrawals that you want to make from these accounts.
Not all banks allow you to withdraw physical gold, and if it does, a conversion fee might be levied. For example, at CIMB, if you withdraw 10g of physical gold, you would still get the best nett return despite the conversion fee of RM1 for every gram of gold (based on bank’s buy-sell prices as at Aug 22). Consider, too, how much money you can set aside for your investment. Maybank offers the lowest entry barrier with a minimum deposit of 1g. It also imposes the lowest minimum balance of 1g. In contrast, UOB requires the highest minimum initial deposit and balance, although it offers the narrowest spread. As with any other investments, do not forget to evaluate the risks.
While such accounts permit you to reap favourable returns from appreciations in gold prices, you will make a loss if the price of gold plummets. These gold investment accounts do not earn interest income and the balance kept in the account is not protected by the government’s deposit insurance scheme, Perbadanan Insurans Deposit Malaysia (PIDM).
When gold investment accounts reviewed in June last year, they were only available at three banks — Kuwait Finance House, Public Bank and Maybank. Due to gold’s growing popularity, CIMB and United Overseas Bank (M) (UOB) have jumped onto the bandwagon as well. All banks, except for Kuwait Finance House, use Swiss Pamp as the underlying gold bar for their gold investment accounts. Kuwait Finance House uses a generic gold bullion and UOB uses different gold bullions. Investors can select their preferred brand when making a withdrawal (see opposite page).
You must have a savings or current account at the bank to open a gold investment account. On Aug 23, gold prices hit a record US$1,911 (RM5,688) an ounce in Asia. On the back of rising prices, the buy and sell prices of gold investment accounts have also increased by about 30% over a period of 15 months. A year ago, the precious metal’s purchase price (the price at which the banks buy the gold from customers) ranged from RM121 and RM123, and the sell price (the price at which the banks sell the gold) ranged from RM126 to RM128. At the end of August, the buy price ranged from RM174 to RM178, while the sell price ranged from RM180 to RM185.
To enhance your returns, choose an account that has the smallest spread (the difference between the buy and sell prices). New players such as UOB and CIMB offer the narrowest spreads, with UOB outshining its competitors with 0.55% and 1.1% for the Premier Gold Account and Gold Savings Account respectively. Kuwait Finance House has the highest spread of 4.45%. As always, watch out for fees that will negate your returns. CIMB, Public Bank and UOB impose a fee if the minimum balance falls below a stipulated level at month- and year-ends. Kuwait Finance House does not impose any additional fees. Public Bank levies the highest fees; when customers make a withdrawal of physical gold, the conversion fees ranging from RM220 to RM270 are the highest among the banks. Think about the type of withdrawals that you want to make from these accounts.
Not all banks allow you to withdraw physical gold, and if it does, a conversion fee might be levied. For example, at CIMB, if you withdraw 10g of physical gold, you would still get the best nett return despite the conversion fee of RM1 for every gram of gold (based on bank’s buy-sell prices as at Aug 22). Consider, too, how much money you can set aside for your investment. Maybank offers the lowest entry barrier with a minimum deposit of 1g. It also imposes the lowest minimum balance of 1g. In contrast, UOB requires the highest minimum initial deposit and balance, although it offers the narrowest spread. As with any other investments, do not forget to evaluate the risks.
While such accounts permit you to reap favourable returns from appreciations in gold prices, you will make a loss if the price of gold plummets. These gold investment accounts do not earn interest income and the balance kept in the account is not protected by the government’s deposit insurance scheme, Perbadanan Insurans Deposit Malaysia (PIDM).
Spending guide to curb splurging
It’s easy to overspend during the year-end festivities, what with annual bonuses in hand and sales galore at the malls and department stores. Here are some budget-friendly tips.
Use cash Try not to put all your purchases on your credit card, especially if you’re doing all your shopping at the last minute. Using cash helps you to stay within budget as you will be buying only what you can afford. Shop online It pays to compare prices when shopping, not only for the festive season but also at all times, and the Internet offers opportunities for you to compare prices and get bargains. Irra Core, a working mother, says aside from not having to go to the physical store (and contend with the crowds), there’s the savings made on parking charges and petrol.
Online retailers such as www.bookdepository.com and www.asos.com offer free shipping, and on top of that, with the current favourable exchange rates, items bought through online US-based stores may be cheaper than those available in Malaysia. Some online retailers even gift-wrap your purchases, which is an added plus. In addition, some online retailers also offer coupons for additional discounts for subsequent purchases. Cash in on reward points Put your credit card reward points to good use by redeeming shopping vouchers or gifts. Although it’s not really savings, since you’re already using your credit card throughout the year, you may as well put the reward points accumulated to good use, says Core, who often saves up the reward points for shopping vouchers that she then uses for gift purchases. Know what you’re buying With all the sales, deals and offers at the end of the year, it’s easy to be blinded by so-called store bargains. So, it’s important that you know how much things cost and what you’re getting for that price, especially when it comes to electronic items. For instance, you may come across an attractive deal for a particular product but it may be an older model or is missing some features or specifications.
Scale down You don’t need to get a gift for everyone, especially colleagues you hardly know or speak to, or relatives twice or thrice removed! Avoid giving out of guilt or over-giving — just because you received a gift from a near stranger, or received an extravagant gift from a friend, does not mean you have to reciprocate in a similar fashion. Also, bear in mind that gifts need not be expensive, as at the end of the day, it’s the thought that counts. Make your own A less expensive but meaningful gift option is to make your own presents — whether it’s edible goodies like jars of preserve, cookies and cakes, or crafted items such as soaps and candles. If you’re baking, opt for something seasonal like Christmas cookies or pumpkin spiced bread, suggests Core. “And it’s really cheaper because you can buy all the ingredients in bulk and then set aside an afternoon for baking and wrapping. It involves time and commitment, but you are adding a personal touch to gifting, which is always nice,” she adds. You can also make your own decorations or embellish run-of-the-mill items. For example, instead of decorative candles, buy simple pillar candles and dress them up with pushpins and ribbons. Entertain wisely When it comes to entertaining during the holidays, many swear by potluck. “Have a theme and when your guests ask what they can bring or how they can help, suggest that they bring something from the menu and if they don’t see anything they can make or bring, they can bring a bottle of their favourite wine,” says Core. Similarly, if you’re invited to parties, ask the host or hostess what you can bring. But if potluck is not your cup of tea, consider scaling down the entertainment. Instead of planning a big bash, opt for a more intimate dinner party with just the family and close friends. If you like to serve wine, start stocking up throughout the year and if you travel often, this is when all the duty-free shopping will pay off!
Set a budget Determine how much you are prepared to spend this holiday season — whether it’s for gifts, entertainment or decorating. Set a budget based on how much money you have available. If you have many gifts to buy, then it’s also a good idea to set a limit on how much you’d be willing to spend, whether it’s per item or per person. Plan and budget for the holiday expenses at the start of the year by setting aside some money every month to be used during the festive season. It may take some resolve to put money into the holiday kitty each month but you’ll be glad you did come December! And as with any budget, you need to be disciplined and stick to it. Shop for gifts throughout the year Don’t wait until the 11th hour to get your Christmas or New Year shopping done. Whenever you’re out shopping or travelling, keep an eye out for great gifts. There are also bound to be a few sales during the year, so take advantage of them. A gift picked up from your holidays abroad not only makes a unique present but also shows that you were thinking of the recipient during your trip.
Keep track of whom you’re buying for and what you’re getting them, advises Cynthia Yap. The busy working mother of two organises her gift shopping with a spreadsheet that has the names of recipients in one column and their ideal gifts, based on their likes and interests, in a corresponding column. This ensures that she doesn’t repeat a gift the following year, she says. Track how you fared this year Once the holiday dust has settled and all that gift giving and entertaining is done, track your expenses for the holidays. If you were on budget, make it your goal to decrease your spending next year. But if you’ve overspent, go over your expenses and see where you went wrong so as to avoid making the same mistake next year.
http://www.theedgemalaysia.com
Use cash Try not to put all your purchases on your credit card, especially if you’re doing all your shopping at the last minute. Using cash helps you to stay within budget as you will be buying only what you can afford. Shop online It pays to compare prices when shopping, not only for the festive season but also at all times, and the Internet offers opportunities for you to compare prices and get bargains. Irra Core, a working mother, says aside from not having to go to the physical store (and contend with the crowds), there’s the savings made on parking charges and petrol.
Online retailers such as www.bookdepository.com and www.asos.com offer free shipping, and on top of that, with the current favourable exchange rates, items bought through online US-based stores may be cheaper than those available in Malaysia. Some online retailers even gift-wrap your purchases, which is an added plus. In addition, some online retailers also offer coupons for additional discounts for subsequent purchases. Cash in on reward points Put your credit card reward points to good use by redeeming shopping vouchers or gifts. Although it’s not really savings, since you’re already using your credit card throughout the year, you may as well put the reward points accumulated to good use, says Core, who often saves up the reward points for shopping vouchers that she then uses for gift purchases. Know what you’re buying With all the sales, deals and offers at the end of the year, it’s easy to be blinded by so-called store bargains. So, it’s important that you know how much things cost and what you’re getting for that price, especially when it comes to electronic items. For instance, you may come across an attractive deal for a particular product but it may be an older model or is missing some features or specifications.
Scale down You don’t need to get a gift for everyone, especially colleagues you hardly know or speak to, or relatives twice or thrice removed! Avoid giving out of guilt or over-giving — just because you received a gift from a near stranger, or received an extravagant gift from a friend, does not mean you have to reciprocate in a similar fashion. Also, bear in mind that gifts need not be expensive, as at the end of the day, it’s the thought that counts. Make your own A less expensive but meaningful gift option is to make your own presents — whether it’s edible goodies like jars of preserve, cookies and cakes, or crafted items such as soaps and candles. If you’re baking, opt for something seasonal like Christmas cookies or pumpkin spiced bread, suggests Core. “And it’s really cheaper because you can buy all the ingredients in bulk and then set aside an afternoon for baking and wrapping. It involves time and commitment, but you are adding a personal touch to gifting, which is always nice,” she adds. You can also make your own decorations or embellish run-of-the-mill items. For example, instead of decorative candles, buy simple pillar candles and dress them up with pushpins and ribbons. Entertain wisely When it comes to entertaining during the holidays, many swear by potluck. “Have a theme and when your guests ask what they can bring or how they can help, suggest that they bring something from the menu and if they don’t see anything they can make or bring, they can bring a bottle of their favourite wine,” says Core. Similarly, if you’re invited to parties, ask the host or hostess what you can bring. But if potluck is not your cup of tea, consider scaling down the entertainment. Instead of planning a big bash, opt for a more intimate dinner party with just the family and close friends. If you like to serve wine, start stocking up throughout the year and if you travel often, this is when all the duty-free shopping will pay off!
Set a budget Determine how much you are prepared to spend this holiday season — whether it’s for gifts, entertainment or decorating. Set a budget based on how much money you have available. If you have many gifts to buy, then it’s also a good idea to set a limit on how much you’d be willing to spend, whether it’s per item or per person. Plan and budget for the holiday expenses at the start of the year by setting aside some money every month to be used during the festive season. It may take some resolve to put money into the holiday kitty each month but you’ll be glad you did come December! And as with any budget, you need to be disciplined and stick to it. Shop for gifts throughout the year Don’t wait until the 11th hour to get your Christmas or New Year shopping done. Whenever you’re out shopping or travelling, keep an eye out for great gifts. There are also bound to be a few sales during the year, so take advantage of them. A gift picked up from your holidays abroad not only makes a unique present but also shows that you were thinking of the recipient during your trip.
Keep track of whom you’re buying for and what you’re getting them, advises Cynthia Yap. The busy working mother of two organises her gift shopping with a spreadsheet that has the names of recipients in one column and their ideal gifts, based on their likes and interests, in a corresponding column. This ensures that she doesn’t repeat a gift the following year, she says. Track how you fared this year Once the holiday dust has settled and all that gift giving and entertaining is done, track your expenses for the holidays. If you were on budget, make it your goal to decrease your spending next year. But if you’ve overspent, go over your expenses and see where you went wrong so as to avoid making the same mistake next year.
http://www.theedgemalaysia.com
Malaysians fret over financial preparedness in retirement
Some 94% of Malaysians believe that having enough money to live on during retirement is important, a survey found. However, only 60% of the respondents who believe so say they feel adequately financially prepared for retirement while another 34% feel they are not when they are out of the workforce.
The survey on The Future of Retirement: The Power of Planning was conducted by Cicero Consulting for the HSBC group. It covered 17,000 respondents in 17 countries, with 7,300 from Malaysia, Singapore, China, India, Taiwan, Hong Kong, South Korea, Saudi Arabia and the UAE. The survey aimed to explore changing attitude towards retirement and are financial planning. According to the results, Malaysians grasp the fact that they need to plan and prepare for life after retirement. They tend to worry about not having saved enough to cater for unforeseen circumstances and the cost of ill health, with 68% of the respondents saying that they are either very worried or slightly worried about their financial preparedness in retirement.
“In Malaysia, most respondents expect their savings and investments to provide for them in retirement, with only 9% relying on state provision as their largest source of income. While it is a concern that 12% do not know what their main source of retirement income will be, this is lower than in most of our surveyed countries,” stated the report. Twenty-three percent of Malaysian respondents plan to rely on savings and investments to provide for retirement, followed by 9% who cited stocks and/or shares investments, wages or salary from paid employment, and state pension or social security as their main source of income after retirement. Eight percent of respondents have their own individual personal pension scheme, while 4% of them plan to utilise their rental income or sell their primary residential property. Other means of retirement funds included selling assets tied up in property (3%) and support from children or descendants (2%).
In terms of planning for their retirement financial needs, the survey concluded that Malaysians are the most prolific financial planners of all nationalities surveyed as 60% of Malaysian respondents consider themselves as active, self-guided planners, compared with only 22% of global respondents who say the same. “A greater onus will be put on individuals to prepare for their own retirement and, fortunately, Malaysia leads the world in financial planning behaviour: 84% of respondents have financial plans for the future. This remarkably high level suggests that our respondents are thinking independently and proactively about their future; especially since 60% of respondents are self-guided planners, who do not consult advisers,” the report said.
The survey findings revealed that those with a financial plan enjoy several benefits over those who do not. The benefits are not only in terms of greater and more diverse retirement savings, but also a more positive outlook and less worries about later life, according to the report. Younger people are leading the way in financial planning, with 86% of 30- to 39-year-olds having a financial plan compared with 81% of 50- to 59-year-olds, the survey found.
This article appeared in The Edge Financial Daily, January 3, 2012.
The survey on The Future of Retirement: The Power of Planning was conducted by Cicero Consulting for the HSBC group. It covered 17,000 respondents in 17 countries, with 7,300 from Malaysia, Singapore, China, India, Taiwan, Hong Kong, South Korea, Saudi Arabia and the UAE. The survey aimed to explore changing attitude towards retirement and are financial planning. According to the results, Malaysians grasp the fact that they need to plan and prepare for life after retirement. They tend to worry about not having saved enough to cater for unforeseen circumstances and the cost of ill health, with 68% of the respondents saying that they are either very worried or slightly worried about their financial preparedness in retirement.
“In Malaysia, most respondents expect their savings and investments to provide for them in retirement, with only 9% relying on state provision as their largest source of income. While it is a concern that 12% do not know what their main source of retirement income will be, this is lower than in most of our surveyed countries,” stated the report. Twenty-three percent of Malaysian respondents plan to rely on savings and investments to provide for retirement, followed by 9% who cited stocks and/or shares investments, wages or salary from paid employment, and state pension or social security as their main source of income after retirement. Eight percent of respondents have their own individual personal pension scheme, while 4% of them plan to utilise their rental income or sell their primary residential property. Other means of retirement funds included selling assets tied up in property (3%) and support from children or descendants (2%).
In terms of planning for their retirement financial needs, the survey concluded that Malaysians are the most prolific financial planners of all nationalities surveyed as 60% of Malaysian respondents consider themselves as active, self-guided planners, compared with only 22% of global respondents who say the same. “A greater onus will be put on individuals to prepare for their own retirement and, fortunately, Malaysia leads the world in financial planning behaviour: 84% of respondents have financial plans for the future. This remarkably high level suggests that our respondents are thinking independently and proactively about their future; especially since 60% of respondents are self-guided planners, who do not consult advisers,” the report said.
The survey findings revealed that those with a financial plan enjoy several benefits over those who do not. The benefits are not only in terms of greater and more diverse retirement savings, but also a more positive outlook and less worries about later life, according to the report. Younger people are leading the way in financial planning, with 86% of 30- to 39-year-olds having a financial plan compared with 81% of 50- to 59-year-olds, the survey found.
This article appeared in The Edge Financial Daily, January 3, 2012.
Tips on how to choose unit trust funds
UNIT trust funds offer an attractive alternative to retail investors, especially those looking for the benefit of diversification with a small pool of capital while enjoying the possibility of earning higher returns compared with conventional savings.
However, a lot of people have the misconception that the diversification nature of these funds means that the risk of investing in unit trust is low and they can just close their eyes and simply pick any of the funds that come along. This misconception has led to many paying high prices in learning that as in any type of investments, investing in unit trust funds requires some basic understanding and research before we commit our hard earned money to it. In general, we can classify the unit trust funds in the market into two major categories: income funds and growth funds. ·Income funds usually are characterised as providing consistent income to the investors.
These funds invest in income-producing stocks or bonds or a combination of both. Bond funds, equity income funds and money market funds are included in this category. ·Growth funds generally are more aggressive than income funds but have the possibility of earning higher returns by focusing on the objective of long-term capital appreciation rather than income producing or short-term gain. Examples of growth funds are small-cap funds, commodity funds, index funds and gold funds. Before we start evaluating the funds to invest in, there are two main considerations which are our investment objectives and risk tolerance level. Every investor invests for his own purpose.
If you are investing for your retirement and are already close to retirement age, you should look for income funds that are more predictable. However, if you are still young and want to save for your children’s higher education, which will be 10 or 15 more years, you may want to look for growth funds that generate higher return but with higher level of risk. Once we are clear on what we are looking for in the investment, we can narrow down our selection to either income or growth category and move to the next step of identifying the most suitable funds within the selected category. Here are a few key factors to look into when evaluating unit trust funds: ·Investment strategy, policy and holdings:
Every fund has its own investment profile. Investors should have a clear understanding of the investment strategy taken in each fund that they are considering to ensure it is consistent with their personal investment objective and risk tolerance level. Even the funds within the same category may have significant differences in risk exposure due to the difference in the investment holdings. For example, the risk exposure in large-cap growth companies is definitely much lower than for penny stock funds. ·Past performance: Investors may look into the past performance trend of the fund to gauge its future performance. However, do bear in mind that good past performance may not be repeated in the future and we should not be overly excited to see one year of good results if the fund is only newly established.
A good fund should be the one that has been consistently out-performing its peers, be it during good or bad times. ·Cost: Investors must be aware that when they buy or sell the funds, there are fees and expenses embedded in every transaction. For example, the expense ratio of a small fund tends to be higher than a large fund while a regional or global fund usually will carry higher costs compared with a domestic fund. ·Fund management: The fund management is very important to ensure continuity and consistent performance.
If a fund changes management too frequently, it will be very difficult for us to gauge the performance of the fund as different managers will have different styles which may affect the performance of the fund. For example, if the manager tends to have higher portfolio turnover, then the expense ratio of the fund may increase even though the nature of the fund holdings remains the same. By having good understanding of the above factors, we may be able to make meaningful comparisons among funds that we are interested in to identify the ones that suit us most. The Star -http://biz.thestar.com.my
However, a lot of people have the misconception that the diversification nature of these funds means that the risk of investing in unit trust is low and they can just close their eyes and simply pick any of the funds that come along. This misconception has led to many paying high prices in learning that as in any type of investments, investing in unit trust funds requires some basic understanding and research before we commit our hard earned money to it. In general, we can classify the unit trust funds in the market into two major categories: income funds and growth funds. ·Income funds usually are characterised as providing consistent income to the investors.
These funds invest in income-producing stocks or bonds or a combination of both. Bond funds, equity income funds and money market funds are included in this category. ·Growth funds generally are more aggressive than income funds but have the possibility of earning higher returns by focusing on the objective of long-term capital appreciation rather than income producing or short-term gain. Examples of growth funds are small-cap funds, commodity funds, index funds and gold funds. Before we start evaluating the funds to invest in, there are two main considerations which are our investment objectives and risk tolerance level. Every investor invests for his own purpose.
If you are investing for your retirement and are already close to retirement age, you should look for income funds that are more predictable. However, if you are still young and want to save for your children’s higher education, which will be 10 or 15 more years, you may want to look for growth funds that generate higher return but with higher level of risk. Once we are clear on what we are looking for in the investment, we can narrow down our selection to either income or growth category and move to the next step of identifying the most suitable funds within the selected category. Here are a few key factors to look into when evaluating unit trust funds: ·Investment strategy, policy and holdings:
Every fund has its own investment profile. Investors should have a clear understanding of the investment strategy taken in each fund that they are considering to ensure it is consistent with their personal investment objective and risk tolerance level. Even the funds within the same category may have significant differences in risk exposure due to the difference in the investment holdings. For example, the risk exposure in large-cap growth companies is definitely much lower than for penny stock funds. ·Past performance: Investors may look into the past performance trend of the fund to gauge its future performance. However, do bear in mind that good past performance may not be repeated in the future and we should not be overly excited to see one year of good results if the fund is only newly established.
A good fund should be the one that has been consistently out-performing its peers, be it during good or bad times. ·Cost: Investors must be aware that when they buy or sell the funds, there are fees and expenses embedded in every transaction. For example, the expense ratio of a small fund tends to be higher than a large fund while a regional or global fund usually will carry higher costs compared with a domestic fund. ·Fund management: The fund management is very important to ensure continuity and consistent performance.
If a fund changes management too frequently, it will be very difficult for us to gauge the performance of the fund as different managers will have different styles which may affect the performance of the fund. For example, if the manager tends to have higher portfolio turnover, then the expense ratio of the fund may increase even though the nature of the fund holdings remains the same. By having good understanding of the above factors, we may be able to make meaningful comparisons among funds that we are interested in to identify the ones that suit us most. The Star -http://biz.thestar.com.my
Sunday, August 5, 2012
Investors' Letter - CIMB Islamic DALI Equity Growth Fund
http://www.scribd.com/doc/102027242/20110531-AR-CIMB-Islamic-DALI-Equity-Growth-Fund
20110531 + AR + CIMB Islamic DALI Equity Growth_ Fund
CIMB Islamic DALI Equity Growth Fund
http://www.scribd.com/doc/102026111/209652CIMB-Islamic-DALI-Equity-Growth-Fund
209652CIMB Islamic DALI Equity Growth Fund
Saturday, August 4, 2012
Unit Trust
WEALTH ACCUMULATION
Investing in unit trust is one of the easiest ways to enter the investing arena without much hassle. To begin, you only need a small amount of capital and your investment will be diversified across a whole range of sectors, regions, and assets. Unit trust are managed by experienced and highly trained professionals whereby their full-time job is to make profits for you. Begin your investment today with the leading fund management company in Malaysia. Procrastinate and you shall regret for life.
There are a lot of convenient ways for you to begin your unit trust investment. You can do:
1. Lump Sum Investment (e.g. RM10,000 into a fund).
2. Regular Savings Plan (e.g. begin with RM1,000, then do an automatic deduction of RM100 every month from your bank account).
3. Invest using your KWSP (EPF) money.
There are many unit trust funds you can choose from. It all boils down to your goals, risk profile, and time horizon.
Investing in unit trust is one of the easiest ways to enter the investing arena without much hassle. To begin, you only need a small amount of capital and your investment will be diversified across a whole range of sectors, regions, and assets. Unit trust are managed by experienced and highly trained professionals whereby their full-time job is to make profits for you. Begin your investment today with the leading fund management company in Malaysia. Procrastinate and you shall regret for life.
There are a lot of convenient ways for you to begin your unit trust investment. You can do:
1. Lump Sum Investment (e.g. RM10,000 into a fund).
2. Regular Savings Plan (e.g. begin with RM1,000, then do an automatic deduction of RM100 every month from your bank account).
3. Invest using your KWSP (EPF) money.
There are many unit trust funds you can choose from. It all boils down to your goals, risk profile, and time horizon.
Subscribe to:
Posts (Atom)