Tuesday, June 25, 2013
How to Find a Personal Loan with the Lowest Interest Rate.
When it comes to personal loan, getting one with the lowest interest rate is undoubtedly the top priority for most people. After all, money is hard to come by and there’s no worse feeling than paying unnecessary extras when you know you could be doing otherwise.
So how does one go about getting a personal loan with the best interest rate? You could, of course, take a few days off, go visit every bank you know and talk to all the loan officers out there – a task that is not only time-consuming, but tedious and tiring all at the same time.
Alternatively, you could simply leverage on the power of the Internet and use an online personal loan comparison table to analyse the interest rates by all major banks of Malaysia for the amount you have in mind; then go directly to your bank-of-choice.
4 Simple Steps to Finding the Personal Loan with the Lowest Interest Rate
Go to an online personal loan comparison table.
Key in the loan figure and your envisaged repayment period. If required, key in your current salary.
Go through the list of identified banks – focus your attention on the interest rates as well as any special clauses and terms that might affect your decision to use that bank.
Finally, visit your chosen bank personally to begin the application process. If you wish, you may also opt to apply for your loan online.
And that’s really it! For those of you who were expecting some complex process or formula, know that a personal loan is one of the simplest banking products in the market and hence, finding the right one with the lowest interest rate should be relatively straightforward.
So the next time you’re looking for a personal loan with the best interest rate, just follow the simple steps above and you should be able to get the loan package you’re looking for in no time!
Why Most People are Not Saving Enough for Retirement
To retire or not to retire? I believe that is really not an option for most people. Retiring is only the privileged few, like, the 5% of the population who can really retire financially independent.
The majority of the people not only do not have the option to retire with financial independence, but they do not even have the option to retire at all. So, why is that the case?
We have to take a look at the problem. Assuming you start working at 25,most of us may start slightly earlier – and assuming you would retire from work at 55.
According to our Malaysian latest mortality rate, meaning how long Malaysians live, it has been said that we live to about 75 years old. We are not talking about now, so let’s take it further, about 20 to 30 years later although Malaysians will certainly live longer. Let’s say we retire from life at 85.
We can separate our life phases in to these two distinct phases called:
Accumulation phase – This is from when you are 25-55, or your working years.
Consumption phase, which is from 55-85 years old.
Do you see the problem? We have thirty years of working and thirty years of not working, meaning we will be consuming our savings. It simply means that each year of our working life, we will be actually saving for each year of our retirement years. At this point you cannot afford not to miss a years of savings because for each year of saving that you miss, you may not have enough for your retirement.
There’s another problem: How much do we save while we are working? Assuming all of us employees and you have EPF. If we have EPF we put aside 11% while our employer tops up another 12%. So, we get 23% going in to our EPF every month.
However, when we retire, we would need, a minimum of 50% of your last drawn salary. However your last drawn salary may be our highest income, assuming RM10,000. So, we would need about 50% of that, which would be RM5,000. Imagine why this is a problem. We need 50% but we are only putting 23% while we are working. That means there is a shortfall of 27% or more than a quarter.
EPF statistics(2011) say 50% of retirees spend their entire EPF savings within 5 years. This is the problem.
courtesy KCL
How the Poor, the Middle Class, and the Rich Think about Investment
How the Poor, the Middle Class, and the Rich Think about Investment
The poor don’t invest because they don’t have money to invest. They spend all their money and forget about investments. The funny thing is though, although they have no money to invest, they have money to gamble. They have money to buy lottery, they have money to buy 4D and 3D, go to Genting and gamble a few thousand Ringgit, travel with Star Cruise, drink alcohol and smoke.
For all these money-burning activities, the poor have money. When it comes to investing, they have no money.
Now, the middle class is actually where most people you see or meet are. The middle class say, “Investing is Risky.” Every time people say investing is risky, they actually mean that speculating or gambling is risky. Most people cannot differentiate between speculating and investing.
Understanding about the difference between investing and speculating is very important. If you still cannot differentiate, then just follow this simple definition. -anything that can make money and can lose money is gambling or speculating.
Investing, if you do it the right way, you cannot lose money. This doesn’t mean that you never lose money, but as a whole you cannot lose money. Just like in a casino. If you are a casino owner, you may lose at individual rounds, but as a whole if you combine all the tables and bets, you cannot lose.
As for the rich, instead of saying, “Investing is risky,” the rich will say, “Not investing is risky.” Why do you think the rich would say so?
Inflation eats our money away. If you don’t invest, your money will be eaten by inflation.
So, why is not investing risky? Because if you don’t invest, your money will be in your savings account, or FD, or EPF where you look for all the guaranteed things and so forth, plus all your money will be eaten by inflation.
Secondly, you face another risk which is “you don’t have enough money” risk – the risk of having not enough money. You don’t have enough money for your kids’ education, not enough for your retirement, maybe not enough for your parents’ hospital bills in the future and maybe your own hospital bills in the future as well.
If you talk about insurance, the insurance might be so costly that you could barely afford to pay for it unless you plan to work for life. Even if you plan to work for life, you still face another risk: Whether people will still hire you when you’re old, and whether you can still work or not when you’re old. In that sense, even if you don’t invest you are facing many risks, which is why, to the rich, not investing is also a risk.
Another risk of not investing is that your money will grow too slowly. What if got you into an illness and cannot work anymore? When you cannot work anymore, all your financial goals are not met, and you have financial liabilities.
So, investing actually expedites financial security if you do it the right way. Not speculating or gambling – but Investing.
courtesy KCL
The poor don’t invest because they don’t have money to invest. They spend all their money and forget about investments. The funny thing is though, although they have no money to invest, they have money to gamble. They have money to buy lottery, they have money to buy 4D and 3D, go to Genting and gamble a few thousand Ringgit, travel with Star Cruise, drink alcohol and smoke.
For all these money-burning activities, the poor have money. When it comes to investing, they have no money.
Now, the middle class is actually where most people you see or meet are. The middle class say, “Investing is Risky.” Every time people say investing is risky, they actually mean that speculating or gambling is risky. Most people cannot differentiate between speculating and investing.
Understanding about the difference between investing and speculating is very important. If you still cannot differentiate, then just follow this simple definition. -anything that can make money and can lose money is gambling or speculating.
Investing, if you do it the right way, you cannot lose money. This doesn’t mean that you never lose money, but as a whole you cannot lose money. Just like in a casino. If you are a casino owner, you may lose at individual rounds, but as a whole if you combine all the tables and bets, you cannot lose.
As for the rich, instead of saying, “Investing is risky,” the rich will say, “Not investing is risky.” Why do you think the rich would say so?
Inflation eats our money away. If you don’t invest, your money will be eaten by inflation.
So, why is not investing risky? Because if you don’t invest, your money will be in your savings account, or FD, or EPF where you look for all the guaranteed things and so forth, plus all your money will be eaten by inflation.
Secondly, you face another risk which is “you don’t have enough money” risk – the risk of having not enough money. You don’t have enough money for your kids’ education, not enough for your retirement, maybe not enough for your parents’ hospital bills in the future and maybe your own hospital bills in the future as well.
If you talk about insurance, the insurance might be so costly that you could barely afford to pay for it unless you plan to work for life. Even if you plan to work for life, you still face another risk: Whether people will still hire you when you’re old, and whether you can still work or not when you’re old. In that sense, even if you don’t invest you are facing many risks, which is why, to the rich, not investing is also a risk.
Another risk of not investing is that your money will grow too slowly. What if got you into an illness and cannot work anymore? When you cannot work anymore, all your financial goals are not met, and you have financial liabilities.
So, investing actually expedites financial security if you do it the right way. Not speculating or gambling – but Investing.
courtesy KCL
The Biggest Challenge to Increase Your Income This Year
Every beginning of the year, most of us have a common activity, that is to make your new year’s resolution. When you are still studying in school, the normal resolution would be to study harder, get more ‘A’s in the exams. As we grow older and into adulthood, the common resolution would be to make more money.
Think about it. If you are in the sales department, or a business owner or a self-employed salesperson, the very first goal you would set for the year is how much increment you want on the sales revenue.
If you are under employment, your boss will give you a new set of higher key performance indicator (KPI). You would probably commit to perform better and try to get a raise, if not a promotion on the coming round of performance review. Most likely, most new year resolution has something to do with money and earning more income.
Setting a Higher Goal
When it comes to personal financial matter, I normally urge people to set a higher target of savings and investments. It is easier to achieve if you can make a higher income this year compared to last year. Of course, bigger goal comes with bigger challenges. I’ll talk about the biggest challenge of all in this article. Just a hint – it is not about the lack of discipline, lack of strategies, lack of time…You can make a guess now but keep on reading.
What’s your New Year Resolution?
Okay, enough about money. What about other types of resolutions you set for the new year? If you want a better relationship with your family, you might commit to spend extra time with your kids, or date your spouse more, like at least once in a week. When you spend that extra time with your kid, you want to really get into their world, and not just letting your son to play on the iPad while you watch the latest TV shows.
If you have a new year resolution to have a healthier body, you might have committed to eat more vegetables and cut down your fat intake. You might subscribed to a gym in order to work out more frequently. Extra effort needed if you really want to look good and young.
Some people also have a resolution to travel to certain places. For example, I have a friend who blocks out the vacation dates on his calendar. He knows exactly where he will be visiting for the whole year. Air tickets are booked early and he will simply reject all other events including wedding invitation that falls within his vacation period.
All these different resolution is believed to be able to contribute to your overall happiness. More or less, each one of those commitment is going to make your life better. Assuming that you successfully make it all, you are supposed to live happier, healthier and wealthier at the end of the year.
Making a new year’s resolution is easy. The big problem now is how to do it all. All these stuff require not just money, but also a lot of your time commitment and effort. These two resources is what majority of us lack of.
For example, if you spend more time to make money, you are left with not much time to spend on building a better relationship. You don’t have much energy to exercise and build a healthier body. Under stressful working environment, some people even tends to eat more just to relieve the pressure.
Here is the biggest challenge
Let’s dig deeper to the crux of the matter. What I think is the biggest challenge of all is that most people start with zero on 1st of January.
If you are a salesperson, you start with zero order until you close the first case. Last year’s production is considered done and it is counted for last year’s, not this year’s production. If you are an employee, your performance is reset whenever your boss is replaced. Your pay is of course starting from zero every day since you are paid as long as you work for your employer. If you are in those kind of business that relies on new sales every day, you basically start from zero at the beginning of the year.
So to make more money this year, you got to repeat the effort you put in last year, and plus some more effort to secure an income increment. I can say most of the people who are earning an active income are facing this problem. To make more money this year, you have no choice but to work even harder, if not smarter this year compared to the years before.
Not to start with ZERO
What can you do about this? In fact, there are some important elements that when done right, you don’t have to start with zero every year. I’ll give some examples of how this concept work.
First example, I subscribe to some services that I use on a regular basis on my business. These include the mailing list application which I pay several hundred ringgits a month, the website hosting service which I pay a few thousands ringgits a year, and the several magazine and membership subscription I renew regularly. These service providers I just mentioned don’t start with zero sales. They have a ready subscribed customers who will continue to use their service as long as the service is good and updated.
Another example is the unit trust consultant. These consultants not just get paid when clients deposit new fund to invest. They are also paid a certain fee on the asset under their management. So they starts with a basic amount of pay. The effort they put in this new year is going to contribute to the bottom line, increasing their commission paid on the total fund under their management.
Take a look at the household items at your home. Do you subscribe to Internet, Astro, water filtering system? More and more businesses are moving into providing subscription based service or products. This is how they can scale bigger and take in more business on top of the existing subscribers.
Start with a base
The whole picture is different when you start with a base. So the effort you put in these year to grow your income will be built on top of your last year’s revenue. If you structure your career or business this way, you will have the luxury of having more time to commit to your other non-money-related resolutions. You’ll have more time to improve your relationship, your health, your look and ultimately your happiness.
It is important to increase your income every year, so that your other non-money related resolutions can be met too. So that’s why I said that the biggest challenge to increase your income this year is the reality that you start with zero on 1st of January.
Now, I want you to think hard about how you make money. How your business is structured? How your career is allowing you to leverage on what you’ve done on previous year? What is important to do this year that will still have an impact next year and the future? If you can arrange your business model in such a way that you start with a subscribed clients, repeat customers, renewal income etc. Congratulation.
courtesy KCL.
Think about it. If you are in the sales department, or a business owner or a self-employed salesperson, the very first goal you would set for the year is how much increment you want on the sales revenue.
If you are under employment, your boss will give you a new set of higher key performance indicator (KPI). You would probably commit to perform better and try to get a raise, if not a promotion on the coming round of performance review. Most likely, most new year resolution has something to do with money and earning more income.
Setting a Higher Goal
When it comes to personal financial matter, I normally urge people to set a higher target of savings and investments. It is easier to achieve if you can make a higher income this year compared to last year. Of course, bigger goal comes with bigger challenges. I’ll talk about the biggest challenge of all in this article. Just a hint – it is not about the lack of discipline, lack of strategies, lack of time…You can make a guess now but keep on reading.
What’s your New Year Resolution?
Okay, enough about money. What about other types of resolutions you set for the new year? If you want a better relationship with your family, you might commit to spend extra time with your kids, or date your spouse more, like at least once in a week. When you spend that extra time with your kid, you want to really get into their world, and not just letting your son to play on the iPad while you watch the latest TV shows.
If you have a new year resolution to have a healthier body, you might have committed to eat more vegetables and cut down your fat intake. You might subscribed to a gym in order to work out more frequently. Extra effort needed if you really want to look good and young.
Some people also have a resolution to travel to certain places. For example, I have a friend who blocks out the vacation dates on his calendar. He knows exactly where he will be visiting for the whole year. Air tickets are booked early and he will simply reject all other events including wedding invitation that falls within his vacation period.
All these different resolution is believed to be able to contribute to your overall happiness. More or less, each one of those commitment is going to make your life better. Assuming that you successfully make it all, you are supposed to live happier, healthier and wealthier at the end of the year.
Making a new year’s resolution is easy. The big problem now is how to do it all. All these stuff require not just money, but also a lot of your time commitment and effort. These two resources is what majority of us lack of.
For example, if you spend more time to make money, you are left with not much time to spend on building a better relationship. You don’t have much energy to exercise and build a healthier body. Under stressful working environment, some people even tends to eat more just to relieve the pressure.
Here is the biggest challenge
Let’s dig deeper to the crux of the matter. What I think is the biggest challenge of all is that most people start with zero on 1st of January.
If you are a salesperson, you start with zero order until you close the first case. Last year’s production is considered done and it is counted for last year’s, not this year’s production. If you are an employee, your performance is reset whenever your boss is replaced. Your pay is of course starting from zero every day since you are paid as long as you work for your employer. If you are in those kind of business that relies on new sales every day, you basically start from zero at the beginning of the year.
So to make more money this year, you got to repeat the effort you put in last year, and plus some more effort to secure an income increment. I can say most of the people who are earning an active income are facing this problem. To make more money this year, you have no choice but to work even harder, if not smarter this year compared to the years before.
Not to start with ZERO
What can you do about this? In fact, there are some important elements that when done right, you don’t have to start with zero every year. I’ll give some examples of how this concept work.
First example, I subscribe to some services that I use on a regular basis on my business. These include the mailing list application which I pay several hundred ringgits a month, the website hosting service which I pay a few thousands ringgits a year, and the several magazine and membership subscription I renew regularly. These service providers I just mentioned don’t start with zero sales. They have a ready subscribed customers who will continue to use their service as long as the service is good and updated.
Another example is the unit trust consultant. These consultants not just get paid when clients deposit new fund to invest. They are also paid a certain fee on the asset under their management. So they starts with a basic amount of pay. The effort they put in this new year is going to contribute to the bottom line, increasing their commission paid on the total fund under their management.
Take a look at the household items at your home. Do you subscribe to Internet, Astro, water filtering system? More and more businesses are moving into providing subscription based service or products. This is how they can scale bigger and take in more business on top of the existing subscribers.
Start with a base
The whole picture is different when you start with a base. So the effort you put in these year to grow your income will be built on top of your last year’s revenue. If you structure your career or business this way, you will have the luxury of having more time to commit to your other non-money-related resolutions. You’ll have more time to improve your relationship, your health, your look and ultimately your happiness.
It is important to increase your income every year, so that your other non-money related resolutions can be met too. So that’s why I said that the biggest challenge to increase your income this year is the reality that you start with zero on 1st of January.
Now, I want you to think hard about how you make money. How your business is structured? How your career is allowing you to leverage on what you’ve done on previous year? What is important to do this year that will still have an impact next year and the future? If you can arrange your business model in such a way that you start with a subscribed clients, repeat customers, renewal income etc. Congratulation.
courtesy KCL.
Tuesday, June 18, 2013
Shopping Online 101
Frugal fashionistas of the world, unite! If you care about the embossed exterior of your Coach purse as much as the money nestled in it (and you should!), this guide to online shopping is for you. Think of the wonderful world of online shopping as a shopper’s paradise, where the clothes you covet are artfully arranged in pixels. Everything is housed in a colossal mall with no physical barriers; there are no shopping hours, no overzealous sales assistants, and no noisy (or nosy) shoppers. Your shopping experience is entirely sedentary, conducted while you sip on green tea and ponder over life’s imponderables. With a few clicks of your mouse, a new page is opened up and a row of baju karungs springs to pixelated life. You feel that familiar tug. Should I buy, should I wait? What if it doesn’t fit? Is that pink really as bright as it looks? Can I trust this merchant? It’s so expensive, will I get a refund if there are defects?
Need answers? Read on to discover the safe and budget-friendly way to shop online!
Why Shop Online?
That’s the most pertinent question to ask before you begin your shopping odyssey. Online shopaholics can no doubt attest to the sheer existential joy of shopping online (“With every virtual swipe of my card, it’s like I affirm my existence!”), but for those of you who are undecided, we’ll take you through the list of whys we’ve compiled.
Convenience
Simply put, it’s convenient! All you need to shop online is an internet connection and the means to transfer money electronically. Instead of setting aside an afternoon to wander around Mid Valley, you can cut down on petrol and parking costs by simply clicking “add to cart”.
Diversity
Shopping online affords consumers more variety. In a brick-and-mortar store, there’s only so much shelf space available to showcase the latest stock. In the virtual world, there are no such spatial constraints. The merchant can sell all available stock online. Importantly, smaller businesses that can’t afford the rental payments of a physical store can easily set up a virtual shop. This translates to an endless variety of apparel to choose from!
Price Comparison
You can quickly and conveniently compare prices online. Instead of driving or walking to different stores to compare prices, online accessibility allows for swift comparison. If you want to know whether Forever 21 is selling that peplum skirt for the best price on the market, you can either Google it or go to the websites of rival competitors. This is recommended, of course, and is a no-fuss way to budget and bargain-hunt.
Customer Feedback
If you want to know the reliability of a merchant or seller, you can go to consumer review sites to find out. This is informed shopping at its best, given the vast forum for consumer criticism/critique the Internet provides. Unlike shopping at a brick-and-mortar store, shopping online reduces the difference between a knowledgeable and not-as-informed consumer to (literally) a mouse-click. In order to get the best bang for your buck, always ensure that you read customer reviews to find out about product quality and merchant trustworthiness.
Low Cost
Now this is a contentious point, because shopping online can sometimes cost you more than going for a warehouse sale in Puchong. On the other hand, Internet retailers (especially blogshops) can offer far cheaper prices than a Bangsar boutique (they have to pay rental fees, etc., which are then factored into the retail price). In order to encourage shopping online, some established chain stores also offer more discounts for goods purchased over the Internet.
Is it Safe?
Similar to merrily making your way around a shopping mall, buying clothes online can be a perilous process. As in the real world, security and trust issues figure prominently. There are, however, several steps that you can take to minimise the risks involved, outlined and explained below. Always remember that your safety and security are paramount. After all, you’re giving your personal information, including shipping address and credit card details (where applicable), to a faceless stranger(s). Proceed with caution and trust your shopper’s instincts!
Use Credit Cards Equipped for Shopping Online
Whenever possible, use credit cards equipped for shopping online: they offer added protection against fraud or theft. For instance, RHB allows its credit card users to register their cards with 3D Secure, which uses MasterCard SecureCode and Verified by VISA to ensure the security and safety of internet transactions. Similarly, Maybank offers Maybankard Secure Online Shopping (MSOS), a feature which provides an extra layer of security online when you use your American Express, MasterCard, or VISA cards.
Shop with Retailers or Blogshops That Use Secure Payment Gateways
Payment gateways are the online equivalent of a physical Point of Sale (i.e. checkout counter where the financial transaction between customer and retailer is conducted). In order to accept credit cards from customers (or really any number of online payment options), Internet merchants use payment gateways. iPay88 is arguably the most used and secure payment gateway in Malaysia. It is supervised by Bank Negara Malaysia, regulated under Malaysia’s Payment Systems Act (2003), and is PCI DSS (Payment Card Industry Data Security Standard) compliant. The more secure and regulated the payment gateway, the more protected your financial details are during transactions and under the law. Online merchants often state on their website what payment gateway they use; if you are uncertain, never hesitate to ask the retailer.
Use Third-Party Payment Services
Using a third-party payment service is one of the safest ways to shop. The most popular third-party payment service is PayPal , which also allows merchants to use it as a payment gateway. To use PayPal to pay for online purchases, you must first sign-up for a PayPal account. PayPal acts as an intermediary between you and the Internet merchant, ensuring that they will never see your credit card details or bank information. Money is simply transferred from your PayPal account to the merchant’s PayPal account. Provided you remain a buyer and not a seller, PayPal is a free service, since transaction fees are charged to the sellers. However, while PayPal enjoys a commendable security record, remember that your PayPal account is linked to either your credit card or bank account, so PayPal does have your financial information.
Look Out for Security Seals, Privacy Policies, and SSL
Another way to ensure your safety online is to keep an eye out for safety and security seals on websites. These are small, logo-like badges located on the top, bottom, or corner of the retailer’s website (e.g. Norton Secured, PCI DSS approved, Positive SSL, VeriSign Secured, etc.). These seals are a good indication that the merchant abides by security standards and has a degree of accountability to you. Privacy policies (the more detailed the better) are also another good indicator of merchant trustworthiness; be sure to always read them before you make a purchase. Also look out for whether a website is SSL-enabled. SSL (Secure Socket layer) is a security protocol which is used to protect valuable data transmitted to and from a website. While some sites declare that they are SSL-enabled, you can always check yourself by looking at your browser address bar. You can check for https:// (the extra ‘s’ is for secure), a padlock beside the website address, or if any part of the address bar turns green. Before you enter any personal and financial data into a webpage, always ensure that either one of the three is present.
Don’t Get Phished
Phishing is an online crime that is unfortunately quite rampant these days. ‘Phishermen’ bait victims by sending out e-mails that appear as though they’re from a credit card company or bank you have dealings with. The e-mails may urge you to update your personal information – passwords or financial details – or re-direct you to a fake website (it appears legitimate) to log in. Once they have your credit card numbers and personal information, they can of course use them for fraudulent purposes. To stay safe, don’t send your bank account details or credit card numbers through e-mail. Log in to bank websites by keying in the website address on your browser’s address bar.
How to Save
The truly stylish never break the bank to maintain their look, so you shouldn’t have to either! After all, if there’s no moolah in the bank, it’s either debtors’ prison or stop shopping altogether. Now those aren’t fashionable alternatives, but don’t fret, we’ve put together several tips to shop in SaveMoney fashion!
Use Credit and Debit Card Promotions
The first tip is to make full use of online shopping promotions for your credit or debit card(s). For instance, RHB Now has a promotion where every month the first 200 customers who spend a minimum of RM150 (with participating online merchants) get RM50 cash back. Apart from cash back, there are also other exclusive deals available with merchants selected by your bank(s). So if you frequent ZALORA daily, there could be discounts on items if you use a particular credit card. Thus we suggest, devoted shoppers, that you monitor the promotions section on your bank’s website.
Use Vouchers and Coupons
Your favourite online retailer is bound to offer vouchers and coupons every now and again, especially to encourage new shoppers to buy. There are also vouchers for signing-up and subscribing to newsletters, so be sure to make use of those too.
Click Facebook ‘Like’
In order to promote their facebook pages and increase their popularity, online retailers and blogshops often give out vouchers to customers who ‘like’ their pages. Hardcore Facebooker or not, these deals are too easy to pass up, so hit “like” and don’t miss out!
Compare, Compare, Compare!
Even though it can get tedious, the savvy shopper always compares prices before she commits. Although that kimono top with the gosselin-thin butterfly sleeves screams at you to buy it, SaveMoney heads must prevail before clicking “add to cart”. Check with other online stores and even brick-and-mortar stores. Visit forums like lowyat.net to check and compare different prices for items you want. This is a good place to keep abreast of the latest discounts and promotions, along with any customer feedback other users leave. More importantly, bond with your fellow shopaholics shoppers and swap priceless info. You could even start your own Online Shopping Consumers group and demand more discounts! (“Give us discounts, promotions, deals, or death!”)
Save on Delivery
Save on shipping costs by buying from merchants who offer free delivery. Sometimes there is a minimum amount you have to spend, though, so don’t deviate from your budget just to receive free delivery! Be aware that online merchants can use free delivery as a marketing ploy, since they could already have included the shipping cost into the item price.
Loyalty Programs
Sign up for loyalty programs with online retailers you buy from often. You can get store credit for items you purchase, which can then be deducted from the total amount of your next order. Sometimes stores may even offer cash rebates, although this is relatively rare.
Refund or Return Policy
Before you buy, read the online retailer’s policy on refunds and returns. Some are generous and allow exchanges within a certain period (usually a week or 30 days). In our experience, cash refunds are pretty uncommon, with merchants preferring to reimburse you with store credit instead. Items must always be returned in mint condition, so take care to do so.
Need answers? Read on to discover the safe and budget-friendly way to shop online!
Why Shop Online?
That’s the most pertinent question to ask before you begin your shopping odyssey. Online shopaholics can no doubt attest to the sheer existential joy of shopping online (“With every virtual swipe of my card, it’s like I affirm my existence!”), but for those of you who are undecided, we’ll take you through the list of whys we’ve compiled.
Convenience
Simply put, it’s convenient! All you need to shop online is an internet connection and the means to transfer money electronically. Instead of setting aside an afternoon to wander around Mid Valley, you can cut down on petrol and parking costs by simply clicking “add to cart”.
Diversity
Shopping online affords consumers more variety. In a brick-and-mortar store, there’s only so much shelf space available to showcase the latest stock. In the virtual world, there are no such spatial constraints. The merchant can sell all available stock online. Importantly, smaller businesses that can’t afford the rental payments of a physical store can easily set up a virtual shop. This translates to an endless variety of apparel to choose from!
Price Comparison
You can quickly and conveniently compare prices online. Instead of driving or walking to different stores to compare prices, online accessibility allows for swift comparison. If you want to know whether Forever 21 is selling that peplum skirt for the best price on the market, you can either Google it or go to the websites of rival competitors. This is recommended, of course, and is a no-fuss way to budget and bargain-hunt.
Customer Feedback
If you want to know the reliability of a merchant or seller, you can go to consumer review sites to find out. This is informed shopping at its best, given the vast forum for consumer criticism/critique the Internet provides. Unlike shopping at a brick-and-mortar store, shopping online reduces the difference between a knowledgeable and not-as-informed consumer to (literally) a mouse-click. In order to get the best bang for your buck, always ensure that you read customer reviews to find out about product quality and merchant trustworthiness.
Low Cost
Now this is a contentious point, because shopping online can sometimes cost you more than going for a warehouse sale in Puchong. On the other hand, Internet retailers (especially blogshops) can offer far cheaper prices than a Bangsar boutique (they have to pay rental fees, etc., which are then factored into the retail price). In order to encourage shopping online, some established chain stores also offer more discounts for goods purchased over the Internet.
Is it Safe?
Similar to merrily making your way around a shopping mall, buying clothes online can be a perilous process. As in the real world, security and trust issues figure prominently. There are, however, several steps that you can take to minimise the risks involved, outlined and explained below. Always remember that your safety and security are paramount. After all, you’re giving your personal information, including shipping address and credit card details (where applicable), to a faceless stranger(s). Proceed with caution and trust your shopper’s instincts!
Use Credit Cards Equipped for Shopping Online
Whenever possible, use credit cards equipped for shopping online: they offer added protection against fraud or theft. For instance, RHB allows its credit card users to register their cards with 3D Secure, which uses MasterCard SecureCode and Verified by VISA to ensure the security and safety of internet transactions. Similarly, Maybank offers Maybankard Secure Online Shopping (MSOS), a feature which provides an extra layer of security online when you use your American Express, MasterCard, or VISA cards.
Shop with Retailers or Blogshops That Use Secure Payment Gateways
Payment gateways are the online equivalent of a physical Point of Sale (i.e. checkout counter where the financial transaction between customer and retailer is conducted). In order to accept credit cards from customers (or really any number of online payment options), Internet merchants use payment gateways. iPay88 is arguably the most used and secure payment gateway in Malaysia. It is supervised by Bank Negara Malaysia, regulated under Malaysia’s Payment Systems Act (2003), and is PCI DSS (Payment Card Industry Data Security Standard) compliant. The more secure and regulated the payment gateway, the more protected your financial details are during transactions and under the law. Online merchants often state on their website what payment gateway they use; if you are uncertain, never hesitate to ask the retailer.
Use Third-Party Payment Services
Using a third-party payment service is one of the safest ways to shop. The most popular third-party payment service is PayPal , which also allows merchants to use it as a payment gateway. To use PayPal to pay for online purchases, you must first sign-up for a PayPal account. PayPal acts as an intermediary between you and the Internet merchant, ensuring that they will never see your credit card details or bank information. Money is simply transferred from your PayPal account to the merchant’s PayPal account. Provided you remain a buyer and not a seller, PayPal is a free service, since transaction fees are charged to the sellers. However, while PayPal enjoys a commendable security record, remember that your PayPal account is linked to either your credit card or bank account, so PayPal does have your financial information.
Look Out for Security Seals, Privacy Policies, and SSL
Another way to ensure your safety online is to keep an eye out for safety and security seals on websites. These are small, logo-like badges located on the top, bottom, or corner of the retailer’s website (e.g. Norton Secured, PCI DSS approved, Positive SSL, VeriSign Secured, etc.). These seals are a good indication that the merchant abides by security standards and has a degree of accountability to you. Privacy policies (the more detailed the better) are also another good indicator of merchant trustworthiness; be sure to always read them before you make a purchase. Also look out for whether a website is SSL-enabled. SSL (Secure Socket layer) is a security protocol which is used to protect valuable data transmitted to and from a website. While some sites declare that they are SSL-enabled, you can always check yourself by looking at your browser address bar. You can check for https:// (the extra ‘s’ is for secure), a padlock beside the website address, or if any part of the address bar turns green. Before you enter any personal and financial data into a webpage, always ensure that either one of the three is present.
Don’t Get Phished
Phishing is an online crime that is unfortunately quite rampant these days. ‘Phishermen’ bait victims by sending out e-mails that appear as though they’re from a credit card company or bank you have dealings with. The e-mails may urge you to update your personal information – passwords or financial details – or re-direct you to a fake website (it appears legitimate) to log in. Once they have your credit card numbers and personal information, they can of course use them for fraudulent purposes. To stay safe, don’t send your bank account details or credit card numbers through e-mail. Log in to bank websites by keying in the website address on your browser’s address bar.
How to Save
The truly stylish never break the bank to maintain their look, so you shouldn’t have to either! After all, if there’s no moolah in the bank, it’s either debtors’ prison or stop shopping altogether. Now those aren’t fashionable alternatives, but don’t fret, we’ve put together several tips to shop in SaveMoney fashion!
Use Credit and Debit Card Promotions
The first tip is to make full use of online shopping promotions for your credit or debit card(s). For instance, RHB Now has a promotion where every month the first 200 customers who spend a minimum of RM150 (with participating online merchants) get RM50 cash back. Apart from cash back, there are also other exclusive deals available with merchants selected by your bank(s). So if you frequent ZALORA daily, there could be discounts on items if you use a particular credit card. Thus we suggest, devoted shoppers, that you monitor the promotions section on your bank’s website.
Use Vouchers and Coupons
Your favourite online retailer is bound to offer vouchers and coupons every now and again, especially to encourage new shoppers to buy. There are also vouchers for signing-up and subscribing to newsletters, so be sure to make use of those too.
Click Facebook ‘Like’
In order to promote their facebook pages and increase their popularity, online retailers and blogshops often give out vouchers to customers who ‘like’ their pages. Hardcore Facebooker or not, these deals are too easy to pass up, so hit “like” and don’t miss out!
Compare, Compare, Compare!
Even though it can get tedious, the savvy shopper always compares prices before she commits. Although that kimono top with the gosselin-thin butterfly sleeves screams at you to buy it, SaveMoney heads must prevail before clicking “add to cart”. Check with other online stores and even brick-and-mortar stores. Visit forums like lowyat.net to check and compare different prices for items you want. This is a good place to keep abreast of the latest discounts and promotions, along with any customer feedback other users leave. More importantly, bond with your fellow shopaholics shoppers and swap priceless info. You could even start your own Online Shopping Consumers group and demand more discounts! (“Give us discounts, promotions, deals, or death!”)
Save on Delivery
Save on shipping costs by buying from merchants who offer free delivery. Sometimes there is a minimum amount you have to spend, though, so don’t deviate from your budget just to receive free delivery! Be aware that online merchants can use free delivery as a marketing ploy, since they could already have included the shipping cost into the item price.
Loyalty Programs
Sign up for loyalty programs with online retailers you buy from often. You can get store credit for items you purchase, which can then be deducted from the total amount of your next order. Sometimes stores may even offer cash rebates, although this is relatively rare.
Refund or Return Policy
Before you buy, read the online retailer’s policy on refunds and returns. Some are generous and allow exchanges within a certain period (usually a week or 30 days). In our experience, cash refunds are pretty uncommon, with merchants preferring to reimburse you with store credit instead. Items must always be returned in mint condition, so take care to do so.
Private Retirement Scheme (PRS) – A Guide to Malaysia’s Voluntary Private Retirement Scheme
What is the Private Retirement Scheme (PRS)?
In short, the PRS is a defined contribution pension scheme which allows people (or their employers) to voluntarily contribute into an investment vehicle for the purposes of building up their retirement income.
In a Malaysian retirement framework, it is to be complemented with (and not a substitute for) the mandatory contributions made by both employee and employers to the EPF scheme.
Having a voluntary scheme in addition to the EPF also allows private company employees and self-employed persons to voluntarily contribute towards their retirement in a systematic way.
Similarities of PRS with the EPF:
1. Retirement Purpose: Both the EPF and PRS schemes are for building up a person’s retirement assets and income.
2. Tax Benefit: Tax relief is given for contributions to both schemes (up to RM6,000 a year for EPF, RM3,000 for PRS)
PRS vs EPF: A SummaryFeature Differences PRS EPF
PRS Providers
The PRS Providers are fund management firms which are approved by the PRS administrators to manage the investment vehicles that contributions get paid into.
The eight PRS Providers approved (as at 5 April 2012) are:
CIMB-Principal Asset Management Bhd;
AmInvestment Management Sdn Bhd;
American International Assurance Bhd;
Hwang Investment Management Berhad;
ING Funds Bhd;
Manulife Unit Trust Bhd;
Public Mutual Bhd; and
RHB Investment Management Sdn Bhd.
In short, the PRS is a defined contribution pension scheme which allows people (or their employers) to voluntarily contribute into an investment vehicle for the purposes of building up their retirement income.
In a Malaysian retirement framework, it is to be complemented with (and not a substitute for) the mandatory contributions made by both employee and employers to the EPF scheme.
Having a voluntary scheme in addition to the EPF also allows private company employees and self-employed persons to voluntarily contribute towards their retirement in a systematic way.
Similarities of PRS with the EPF:
1. Retirement Purpose: Both the EPF and PRS schemes are for building up a person’s retirement assets and income.
2. Tax Benefit: Tax relief is given for contributions to both schemes (up to RM6,000 a year for EPF, RM3,000 for PRS)
PRS vs EPF: A SummaryFeature Differences PRS EPF
| Feature Differences | PRS | EPF |
| Contribution Type | Voluntary | Mandatory |
| Contribution Amount | No statutory minimum or maximum | Statutory minimum (11% Employee, 12-13% Employer) |
| Contribution Frequency | No statutory interval | Statutory Monthly Contribution |
| Contribution Paid to | Individual PRS Providers | EPF Directly |
| Yearly Personal Tax Relief | RM3,000 | RM6,000 |
| Partial Withdrawal | From Sub-Account B only, and 8% Tax Penalty | Account 2 only, specific reasons no penalty |
| Selection of Fund Investments | Freedom of Selection (among PRS Providers) | Freedom only on Partial Amount (EPF-MIS) |
| Dividend Policy | No statutory minimum (depends on Fund performance) | Minimum 2.5% p.a. |
PRS Providers
The PRS Providers are fund management firms which are approved by the PRS administrators to manage the investment vehicles that contributions get paid into.
The eight PRS Providers approved (as at 5 April 2012) are:
CIMB-Principal Asset Management Bhd;
AmInvestment Management Sdn Bhd;
American International Assurance Bhd;
Hwang Investment Management Berhad;
ING Funds Bhd;
Manulife Unit Trust Bhd;
Public Mutual Bhd; and
RHB Investment Management Sdn Bhd.
4 of Dad's Best Money Tips
This month we’re celebrating dads and all they do for us. They taught us how to throw a ball, they fixed the chain on our bicycle, and they imparted their wisdom – often it was wisdom that they got from their dads.
However, times have changed and maybe the advice they once gave us about money and credit and debt is no longer 100% accurate. No disrespect intended (and we’ll ALWAYS assure dad that he was totally right) but in this article I want to update some classic money tips from Dad for the modern era.
Tip #1: Your reputation matters. Get to know the bank manager before you get a mortgage.
This might have worked 50 years ago, but it won’t now. Today, most financial institutions rely on credit scores to assess your creditworthiness. Dad would still be proud, though, if you kept a nice, respectable reputation anyway.
Tip #2: Don’t owe anyone anything.
There was a time when you could save up your money and pay cash for a house or car, but today it’s almost necessary for anyone living in America to get a loan of some kind at some point in their life. Besides, having a couple of credit accounts (on which you make your payments in full and on time) is a great way to help you achieve a healthier credit score. Sorry, Dad; owing someone can actually be a good thing.
Tip #3: Pay cash for everything.
Paying cash for everything was Dad’s advice to ensure that we didn’t get a credit card and then fund a wild, high-roller trip to Vegas with 10 of our closest friends. But the careful use of credit cards can help your credit score by demonstrating your responsible use of credit and building a good credit history.
Dad was partly right – you shouldn’t buy anything you can’t afford. But that is very different from paying cash for everything. Smart credit users make purchases on their credit knowing that they have the money available to pay it off. And even if you could afford that trip to Vegas, Dad would probably not approve.
Tip #4: Get a college education, then get a good job.
For the most part, this is pretty good advice. But it’s no longer complete. In Dad’s day, a college education pretty much guaranteed a “good job” upon graduation and you stuck at that job until you retired. Today, a college education is just the beginning. And with record-high unemployment, you need a lot more to get and keep that job.
A good credit history is one of the ways you can get an edge, since some employers are pulling credit reports to help them evaluate job candidates. Keeping an eye on your credit can help you keep on top of things.
This month, we think of our dads and all that they’ve done for us. And dads do a lot, but we need to update their advice for the modern age.
Happy Fathers Day, Dad!
However, times have changed and maybe the advice they once gave us about money and credit and debt is no longer 100% accurate. No disrespect intended (and we’ll ALWAYS assure dad that he was totally right) but in this article I want to update some classic money tips from Dad for the modern era.
Tip #1: Your reputation matters. Get to know the bank manager before you get a mortgage.
This might have worked 50 years ago, but it won’t now. Today, most financial institutions rely on credit scores to assess your creditworthiness. Dad would still be proud, though, if you kept a nice, respectable reputation anyway.
Tip #2: Don’t owe anyone anything.
There was a time when you could save up your money and pay cash for a house or car, but today it’s almost necessary for anyone living in America to get a loan of some kind at some point in their life. Besides, having a couple of credit accounts (on which you make your payments in full and on time) is a great way to help you achieve a healthier credit score. Sorry, Dad; owing someone can actually be a good thing.
Tip #3: Pay cash for everything.
Paying cash for everything was Dad’s advice to ensure that we didn’t get a credit card and then fund a wild, high-roller trip to Vegas with 10 of our closest friends. But the careful use of credit cards can help your credit score by demonstrating your responsible use of credit and building a good credit history.
Dad was partly right – you shouldn’t buy anything you can’t afford. But that is very different from paying cash for everything. Smart credit users make purchases on their credit knowing that they have the money available to pay it off. And even if you could afford that trip to Vegas, Dad would probably not approve.
Tip #4: Get a college education, then get a good job.
For the most part, this is pretty good advice. But it’s no longer complete. In Dad’s day, a college education pretty much guaranteed a “good job” upon graduation and you stuck at that job until you retired. Today, a college education is just the beginning. And with record-high unemployment, you need a lot more to get and keep that job.
A good credit history is one of the ways you can get an edge, since some employers are pulling credit reports to help them evaluate job candidates. Keeping an eye on your credit can help you keep on top of things.
This month, we think of our dads and all that they’ve done for us. And dads do a lot, but we need to update their advice for the modern age.
Happy Fathers Day, Dad!
Monday, June 17, 2013
How to Prioritize Your Budget
Tracking expenses and placing limits on your spending are basic financial rules that can benefit everyone, and yet many Americans still don’t make a budget. But it’s time for them to start — a budget forces you to prioritize, make better decisions and keeps you on track.
When it comes to a monthly budget, no one size fits all. That’s why it’s important to identify what expenses are most important to you and base your budget around your own priorities. Follow these tips for prioritizing a budget that will help you more easily achieve your financial goals.
Determine essential expenses.
The first step in creating any good budget is to figure out what is a non-negotiable expense. For example, unless you’re fortunate enough to be living somewhere rent-free, you probably have to make either a rent or mortgage payment each month. If that’s the case, then you may also have to pay utilities. These are non-negotiable expenses, meaning you have to pay them and they’re not going away anytime soon. Other expenses in this category? Your wireless bill, perhaps medical expenses, and loan payments. You can also choose to put things like gas and groceries in this category, if that makes sense for you. Or, you can do it this way: Add up all of the necessary expenses and subtract the total from your monthly income. The difference is what you have leftover to put toward everything else, such as groceries, gas, a gym membership, entertainment, shopping and dining out.
Plan to minimize debt.
Consumers in the United States have collectively racked up $82 billion in new credit card debt over the last two years alone, according to a 2012 study by credit card comparison and resource site CardHub.com. The biggest cause of it is habitual overspending, says John Kiernan, CardHub editor and senior analyst. Paying down your debts should be a top priority when determining your budget, and your payments should go right up there with your other non-negotiable expenses. The best way to pay off amounts owed, Kiernan says, is to strategically eliminate the balances with the highest interest rates first. Once those are paid off, repeat with the next most expensive balance, and so on. Whatever you do, always continue to at least make the minimum payments (on time), and pay even more if you can.
Another important aspect of getting out of debt is to stop accruing more, Wahl said. “Be vigilant about not taking out new credit cards or loans unless it is going to help you achieve your goal of paying down your debt,” Wahl said.
Remember that paying you’re your debts is a process, so don’t overthink it. “People often react to debt like deer in headlights,” Kiernan said. “We get paralyzed thinking about all of the potential ramifications and don’t take action. But we also can’t lose sight of the fact that debt reduction is a process. It takes time, diligence, and sacrifice. In short, having the right mindset pays off when it comes to getting out of debt.”
Identify your savings goals.
What are you saving for? Figure it out and then incorporate it into your budget. For starters, you should always have an emergency fund, which is a savings account that you don’t touch unless you absolutely need it. Putting even just a small amount away each month will be extremely useful in emergencies down the road. The idea is that you have the money and hope you never have to use it.
Next, think about what you want to save for long term. A child’s college fund? A house that you’ll buy in 10 years? Think about how much you’ll need and when, divide it by the number of years you’ll be saving it, divide that by 12, and that’s how much you need to save each month. (Example: If you want to save $60,000 for a down payment on a house, and you’re saving for 10 years, the formula is: $60,000 / 10 = $6,000 / 12 = $500 / month)
Finally, think about your short-term savings goals. Maybe it’s a vacation in the next six months, or a new car in the next year. Use the same formula as above to figure out how much you need to put away and how frequently.
Give yourself some space to mess up.
Though it may be hard to accept, no one is perfect. You’re going to make mistakes, and every once in a while, you’re going to overspend or stray from your budget just a bit. When creating your budget, give yourself enough wiggle room so that in the rare event that you do go over, you won’t be really hurting yourself financially.
from: yahoo.finance.
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