Matdex Financial Journey

My Gratitude List

2008-08-03T21:08:00.001+08:00

Karakorum Desert, Balkan Welayat, Turkmenistan

July 28^th, 2008

The clock on my laptop’s screen shows 3:30pm. On the other computer, the temperature reading outside is 54 degree Celcius. The temperature inside the unit is no difference. The air conditioner is blowing hot wind since the past few days. After working 11 days without stop in the middle of desert, it give up, No longer cold breeze coming out of the air conditioner. The heat generated from 6 computers in this 4m by 2m room escalate the temperature. Feeling like in sauna, or worse, a pressure cooker.

My eyes staring at one of the screen, showing the incoming ones and zeros, or what people in the digital world call as bits. These bits are crucial in order for us to provide our services to client. The stream of bits should come in no matter what when we are drilling. If it stops, it is my job to go out there and troubleshoot, under the scorching sun.

So far the bits are streaming well. No problem at all. No noise. No intermittent reception. Every bit comes in when needed. I am grateful to these bits. Even though there are just merely zero and one, but it is the core thing that later on give very meaningful information to steer the well.

Close my eyes. Forget the heat. Just see every bit as a single cent that coming into my pocket. In an hour, I already have 2000 bits, equivalent to 2000 US cents. Thank you bits. Please keep coming.

1000101010100101010001010101010101001010101010101010101010101010

Car Purchase and My Experience

2008-08-03T20:58:00.001+08:00

The very first car that I purchased was an Audi registered in year 1989. I don’t really remember which model is that. It was almost 4 years ago when I was in UK. That summer when I was in Manchester, my friend threw the idea of purchasing a car. It was an instant purchase through E-bay, the best virtual marketplace I had been to. Haha. I miss E-bay.

Anyway, the car was around 550 pounds. Since we were working as domestic assistant (or in layman term ‘cleaner’) every summer, we managed to save quite lot of money. We bought the car on Friday night. Then, we purchased one way bus ticket to Heathrow, London to pick up the car. The bus left at around 2 or 3 o’clock in the morning, so we arrived in Heathrow around 8am. We met the seller, and drove the car back to Manchester. The journey should not take more than 4 hours of driving. However, with extra cautious, my friend drove slowly and reached home 6 months afterwards..opsss..not 6 months lar, 6 hours.... Haha..I feel hilarious to think all these good memories when I was a student.

However, the car’s life span was not long. About a month after that, my friend involved in an accident and the car was badly damaged beyond repairable. We sent the car to scrap yard with 50 pounds penalty. Yes, we need to pay to dispose this piece of metal. However, I was really grateful that my friend was fine and escaped with no injury.

That was my first car, jointly owned with my other friend.

When I started my career, I made a wish to buy car for my family. My dad drove Nissan Sunny 130Y which was more than 20 years old already. I want to buy him a more reliable and safer car.

And about two months ago, I bought him a new Toyota Vios. At first, I want to buy a second hand Honda City or Toyota Vios, but after visiting Toyota showroom, I fell in love with new Toyota Vios. I am looking for a car which is spacious and economical.

At first, I want to delay the purchase. And with petrol price was rising recently, I felt that I need to postpone my plan. However, after much consideration, I don’t think this is the right thing to do since I had promised Dad I will buy him car real soon.

The loan agreement went well and we got the car in 10 days.

I still remember the tips that I learned from my reading about car purchase;

+ For first car, better to get second hand, low cc, cheaper car, low monthly installment or buy cash if possible. As a fresh graduate, this is an important step to liberate cash for other purposes especially career related. After few years, buy my dream car when I already have stable job and work experience. If possible, use public transport to commute to work place.

The Secret by Rhonda Byrne

2008-08-03T20:24:00.003+08:00

I have been waiting for a long time to buy this book. I saw this book (with its nice cover) in Abu Dhabi and Kuala Lumpur. But I never try to flip through the pages. In fact, at first, I thought this is a novel. Actually this is a book that I categorized as motivational and inspiring, kind of books that I love to read.

‘The Secret’ tell us the secret of life. How to be happy and successful in life by changing our thought. It sounds so easy, but only the true believers in this book can get the message.

It’s like when you are in real trouble, the best thing you need to do is to change your thought and focus on the good things. And the universe will conspire to solve your problem. Is it that simple?

When you are broke, think that you have more than enough. You live in abundance. And the money will come to you in many unexpected ways.

When you want something, think that you already have it. You can feel it, you can touch it. And you will send the signal to the Universe, and the Universe will send the thing that you want real soon.

These concepts can be hard to grasp. Especially for those who always live in misery and trouble.

I do believe in what the author said. Now, I realized that I already practice few tips which I read in books. Now it is the time to grasp new ideas and concept, and strengthen the one that I already know.

The Secret to Money

“Whatever the mind…can conceive it can achieve”

- W. Clement Stone (1902-2002)

I grew up on, “ You have to work hard for money”. So I replaced that with, “ Money comes easily and frequently”. Now in the beginning it feels like a lie, right? There is a part of your brain that will say, “Oh you liar, it’s hard.” So you have to know it’s this little tennis match that will go on for a while.

- Loral Langemeier, Financial Strategist, Speaker and Personal and Corporate Coach

“The good news is that the moment you decide that what you know is more important than what you have been taught to believe, you will have shifted gears in your quest for abundance. Success comes from within, not from without”

- Ralph Waldo Emerson

Secret Summaries

- To attract money, focus on wealth. It is impossible to bring more money into your life when you focus on the lack of it.

- It is helpful to use your imagination and make-believe you already have the money you want. Play games of having wealth and you will feel better about money; as you feel better about it, more will flow into your life.

- Feeling happy now is the fastest way to bring money into your life.

- Make it your intention to look at everything you like and say to yourself, “ I can afford that. I can buy that.” You will shift your thinking and begin to feel better about money.

- Give money in order to bring more of it into your life. When you are generous with money and feel good about sharing it, you are saying, “I have plenty”.

- Visualize checks in the mail.

- Tip the balance of your thoughts to wealth. Think wealt

KPF: Who can become a member?

2008-07-13T13:25:00.005+08:00

This post is specifically to answer Father Sez. Thank you for visiting my blog and leave comment.

Koperasi Permodalan Felda Membership

From the website, http://www.felda.net.my/kpf/soalanlazim.asp , it is stated that;

1.	Siapakah yang layak menjadi anggota?
		Peneroka-peneroka Felda, isteri dan anak-anak mereka yang warganegara Malaysia dan berusia tidak kurang daripada 18 tahun dan berkelakuan baik
		Koperasi-koperasi peneroka Felda
		Kakitangan-kakitangan Felda yang sedang bertugas dan isteri
		Kakitangan-kakitangan Felda yang sudah bersara yang warganegara Malaysia dan sudah menjadi ahli Koperasi sebelum bersara
		Koperasi-koperasi kakitangan Felda

In general, KPF is open to who are working directly with FELDA. This 'exclusivity' gives lots of advantages to Peneroka and their family. A single solid advice to the children of Peneroka, please put your money in this cooperation and you will not regret. KPF has a strong track record with average dividend between 13% to 14% a year. I cannot guarantee future performance, but oil palm trading is heading a bright prospect.

This may leave you with disappointment, FatherSez. No worry. Everyone has his share of opportunity and you have been doing well so far. I enjoy reading your stories about family, goat farm, and your money management advices.

How to Become Member?

Contact your local Pejabat Felda and ask for membership form. Send the form by yourself or through Pejabat Felda with RM5 membership fee. This may take few months to get approval. Once you have the registration number, you can start to place your investment.

Or go to KPF office;

	Pejabat Koperasi Permodalan Felda (KPF)
	Bangunan Blok J,
	Anjung Felda, Jalan Maktab,
	54000 Kuala Lumpur.

I have been to KPF office last 3 weeks. It was empty except for an officer who will be more than happy to keep him busy with your inquiries. I feel like going to the bank and somebody is waiting to entertain me. No noise, no interruption, just me and him talking about serious business. Haha..

Highest KPF Dividend ever 16.5% for Year 2007

2008-07-01T13:53:00.002+08:00

June 27, 2008 22:52 PM
From www.bernama.com

KUALA LUMPUR, June 27 (Bernama) -- Koperasi Permodalan Felda Bhd (KPF) will be paying out dividend of 16.5 percent to its members involving a total payment of RM178.2 million for the financial year ended Dec 31, 2007, a record figure in its history.

For the 2006 financial year, it paid a dividend of 14.5 percent amounting to total payout of RM122.82 million, its chairman Datuk Ahmad Tarmizi Alias said in a press conference after KPF's annual general meeting here Friday.

Ahmad said the increased dividend reflected the good performances of the businesses it had invested in with the higher palm oil price being a major contributor.

KPF's membership rose to 186,268 last year, a 3.55 percent increase from the year before while assets rose by 23.64 percent to RM1.17 billion.

In 2007, KPF reported a revenue of RM253.06 million, an increase by 51.03 percent from RM167.55 million in 2006.

After tax and zakat payment, profit was RM183.31 million compared with RM125.61 million in 2006.

KPF's investment reached RM1.47 billion in 2007 compared with RM1.05 billion the year before with the core of its investments being in equity ownership in 13 Kumpulan Felda companies.

-- BERNAMA

P/s : This is the highest dividend ever paid by KPF to its shareholders. Unfortunately, I only started to invest in KPF early this year. Hopefully, with a strong market for palm oil, KPF will be able to give such a high return for year 2008 and beyond.

Third Ride : 70km and beyond ....

2008-06-19T21:06:00.003+08:00

Third Ride : Adela – Sg Rengit – Tanjung Pengelih - Adela
Date : Wednesday, 18/06/2008 Distance : 72.59km Avg Speed : 22.4km/h
Max Speed : 43.5km/h Time: 7.30am-11.30am

This is the extended ride from the first ride. A 19km ride Adela-Sg Rengit ride, plus 16km coastal ride to Tg Pengelih. Tg Pengelih is the second most southern tip of Asia continent, facing the South China Sea. From the shore, I can see Changi, Singapore clearly. I believe anyone who is fit can swim cross the channel without much problem. The channel that separates Malaysia and Singapore is Selat Tebrau.

This time, the ride feels shorter. Probably because I was on the same route several days ago. The coastal road from Sg Rengit to Tg Pengelih is dead flat. I cruised at 23km/h comfortably for half an hour each leg.

The Kite Runner : The Movie

2008-06-17T13:20:00.004+08:00

"Do you want me to run that kite for you? For you a thousand times over"

I am looking forward to watch the movie adapted from the novel The Kite Runner by Khaled Hosseini.

Watch the thriller here.

The Kite Runner by Khaleed Hosseini

2008-06-17T13:10:00.002+08:00

This is a story by a truly gifted story teller, Khaleed Hosseini. It is about a friendship of two boys, or more like ‘master and servant’ relationship. And at the end, the secret was revealed which force Amir (the master) to return to Kabul, Afghanistan to look for treasure left by his half brother.

Indeed, blood is a powerful thing. Blood binds people even if they used to be enemy before.

Excerpt from the pages;

“He let out a chuff of laughter, revealed missing lower incisors. It was the most tired laughter I’d ever heard. “I see America has infused you with the optimism that has made her so great. That’s very good. We’re a melancholic people, we Afghans, aren’t we? Often, we wallow too much in ghamkhori and self-pity. We give in to loss, to suffering, accept it as a fact of life, even see it as necessary. Zendagi migzara, we say life goes on. But I am not surrendering to fate here, I am being pragmatic. I have seen several good doctors and they have given the same answer. I trust them and believe them. There is such a thing as God’s will”

Replied Rahim Khan after Amir advicing him to get back to America to get better treatment.

On page 17 ….

“Good” Baba said. But his eyes wondered. “ Now, no matter what the mullah teaches, there is only one sin, only one. And that is theft. Every other sin is a variation of theft. Do you understand that?”

“No. Baba Jan”

“When you kill a man, you steal a life” Baba said. “ You steal his wife’s right to a husband, rob his children of a father. When you tell a lie, you steal someone’s right to the truth. When you cheat, you steal the right to fairness. Do you see?”

“There is no act more wretched than stealing, Amir”. Baba said. “ A man takes what’s not his to take, be it a life or a loaf of naan… I spit on such a man. And if I ever cross paths with him, God help him. Do you understand?”

A Note on the Author

Khaleed Hosseini was born in Kabul, Afghanistan and moved to United States in 1980. His first novel, The Kite Runner, was an international bestseller, published in thirty-four countries. His second novel, A Thousand Splendid Suns, was a number one bestseller and was published in May 2007. In 2006, he was named a goodwill envoy to the United Nations Refugee Agency. He lives in northern California.

Pain in the Butt

2008-06-16T22:36:00.001+08:00

Yes. I know this already from my previous experience and reading. A long ride can give you pain in the butt. Some suggested getting a broad seat. Some recommended trying different seats until you find the best fit. But first, try to adjust the seat position. Make sure the seat is level and at the right height.

This can be really irritating, especially when you have long distance to cover and you are not willing to stand on the pedal for the rest of the journey.

Second Ride : Adela – Desaru Golf – Adela

2008-06-16T22:19:00.004+08:00

Second Ride : Adela – Desaru Golf – Adela
Date : Saturday, 14/06/2008 Distance : 49.53km Avg Speed : 20km/h
Max Speed : 59.6km/h Time: 9.30am-1.30pm

On the second day, I cycled near to 50km from Adela to Bandar Penawar to Desaru Golf. I did on average 20km/h, slightly less than the day before. I realized that I did not consume any food before any ride. This may affect my cycling speed, but I am not use to eat early in the morning.

Usually I started the day with morning prayer, then little bit of stretching. This includes The Sun Salutation (Surya Namaskar), one of the Yoga practice that I read from book. I am a complete beginner of Yoga and wish I can learn more about this ancient practice.

Then, I prepare the necessities for the ride. Check the tire pressure and refill the water bottle with water.

Desaru Golf :: A lonely road towards the beach.

For this ride, I chose a route with a long descent on my way out of Adela. At this particular slope that stretch about 150 meters, I cycled (technically doing nothing, just let the gravity do its trick) at maximum speed of nearly 60km/h. It brought good feeling when you are at speed. And I need to be careful, even a small pothole can bring disastrous outcome.

First Ride : Adela – Sg Rengit – Adela

2008-06-16T22:04:00.005+08:00

First Ride : Adela – Sg Rengit – Adela
Date : Friday, 13/06/2008 Distance : 38.87km Avg Speed : 23km/h
Max Speed : 41.7km/h Time: 8am-10am

This is my first long distance ride, less than 12 hours after I purchased the bike. I don’t think I ever tried cycling more than 15km before. I used to cycle from home to university every day. The length is about 2.5km.

And I realized a big difference with this bike. I used a Claud Butler Milano before. The frame (Milano) is big. Giant TCR3 has compact frame geometry. Thus, it looks smaller and easier to handle. Furthermore, it accelerates faster and easy to maneuver. However, since Claud Butler Milano used Campagnolo instead of Mizuno, I found that Campag was smoother in shifting gears. I also like the idea of having two separate levers for brake and gear shifting, as used by Campagnolo Ergopower.

Campagnolo Record Ergopower Carbon Lever

The ride took 2 hours including breakfast and stops. It was an enjoyable ride with medium traffic. However, there was significant amount of risk and the cyclist need to be careful all the time. Especially when big buses and lorries took over. The force created by passing vehicle may cause the bike to be unstable.

Breakfast at Sungai Rengit. At the back is South China Sea.

My New Ride

2008-06-16T21:50:00.003+08:00

2008 Giant TCR3

I had ordered my new ride, Giant TCR3 on Monday, June 9, 2008. It took two days for the bike shop in Kota Tinggi to get the bike delivered from Johor Bahru. It cost RM 2300, relatively low compared to my initial budget. Probably because this 2008 model did not include carbon fork. I also being told that by adding another thousand Ringgit, I can get Fuji Roubaix which is more geared towards high end performance bike.

Fuji Roubaix

But I settled down with compact frame Giant TCR3, so that I have more cash for other things and kept my expenses low. All other accessories cost another RM4++. This included bike computer (Cateye Velo 8), pump, saddle bag, bike stand, spare tubes, grease, helmet, puncture kit, Allen key and water bottle.

Eyeing My New Ride

2008-06-01T15:01:00.006+08:00

I am looking forward to purchase something that i dream long time ago. A road bike. My last bike "Claud Butler Milano" was stolen during my final year at university. And it was stolen right in front of the main university building between 3 to 5pm. Huhu.. Since then, I want to buy a new one when I have the opportunity.
Cycling can be competitive. The competitiveness can be in the form of competition. But what interest me is the competitiveness within myself. We feel competitive when you body was exhausted but your mind still take control. Pushing every single stride, and you realize that your limit is infinity.
I am eyeing for a moderate and good bike. Not that all carbon fibre built. I am wanting something like Scott Speedster S50 24-s.

This ride costs SD1300 which is about RM3100. Well, within budget. But it will not only the bike that I look into. I need helmet, pump, puncture kit and other things.

Car Loans .......

2008-05-30T03:52:00.003+08:00

I called my dad few days ago and we talked about people buying brand new car. Maybe this can be his trick to ask for new ride as I promised him since last year. Haha... Anyway, technically I dont specify when I will buy car for the family even though that was one of the first thing that i thinked since i started working.
For me, I can tell how broke a person is by looking at what he is driving. A prestigious and luxurious car simply means the owner is full of debt, and has less cash for other more important expenses. This may not be true all the time but I know my neighborhood quite well.
Purchasing a car is going to be my biggest 'big ticket item' after a house. I will take months and a lot of courage for me to go to the dealer and asking the price tag. This is mainly because I am so afraid of having liability and not be able to pay the loan in the future. In contrary, others are proud to have such liability which i think way too heavy to carry.
It is amuse me how a girl, with a monthly salary of RM2000 (USD667) is able to purchase a brand new RM80,000 (USD26,667) car. Let say she made down payment of RM10,000. With loan interest of 2.5% per annum, this young lady has to pay RM794 per month for 9 years.Yes... 9 years.
In comparison, the down payment is equivalent to 5 months salary and monthly payment is 40% of the paycheck. For me, these numbers are too big to swallow. Not to forget annual insurance, road tax, service and maintenance. And last but not least, the petrol price rises steadily over last few years.
When I am about to finish my degree, I have outlined my spending plan for the next few years. I have made several plans according to my earning. As an engineer, I am expecting monthly salary of no less than RM2500. After several months working, I will consider to buy a car for myself because of necessity.
I will go for a second hand Proton Wira (Malaysian national car) which is about RM23000. I pay RM3000 for down payment. With 4% per annum interest rate, I need to pay RM400 monthly for installment. Then after 5 years, I will consider buying a better car. This way, I have more money to save and invest.

The Sequences >>>

2008-05-29T16:03:00.004+08:00

" Because I don't live in either my past or my future. I'm interested only in the present.
If you can concentrate always on the present, you'll be a happy man.
You'll see there is life in desert,
that there are stars in heaven, and that
the tribesman fight because they are part of human race.
Life will be a party for you, a grand festival,
because life is the moment
we are living right now"

The Alchemist, by Paulo Coelho

Three Cups of Tea

2008-05-25T12:06:00.004+08:00

Three Cups of Tea

One Man’s Extraordinary Journey to Promote Peace … One School at a Time

“Greg Mortenson and David Oliver Relin”

Three Cups of Tea

‘Here we drink three cups of tea to do business: the first you are stranger, the second you become a friend, and the third you join our family, and for our family we are prepared to do anything – even die’

Haji Ali, Korphe Village Chief, Karakoram Mountains, Pakistan

This is one amazing story of an American in a foreign land. In 1993, Greg Mortensen arrived in Pakistan on his attempt to conquer the world’s second highest mountain, K2.

He failed to complete his disastrous attempt, and was drifted in cold into an impoverished Pakistan Village in the mountains. Haji Ali, the village leader offered his kindness, food and shelter to Greg. Moved by the inhabitant’s kindness, he promised to return and build a school for a remote village of Korphe.

A decade later, Greg managed to build not only one but fifty five schools across the forbidding and breathtaking landscape of Pakistan and Afghanistan. This man shows us the power of the humanitarian spirit within himself. Despite having no cash and home, he struggle to save and raise every penny for children in Pakistan.

‘An inspiring chronicle… This is one protagonist who clearly deserves to be called a hero’ – People

P/s – I read this book within a week, averaging two hours a day on my way to my training centre. I am in Abu Dhabi undergoing work training provided by my employer for two months. I make use of the two hours commuting time on the bus while others are trying to get a decent sleep. Something that most people are craving these days, including me. A good quality sleep.

One interesting thing about this book, is that on page 337, it is written:

“If Three Cups of Tea inspires you to do more, here are suggestions for how to help:

Visit www.threecupsoftea.com website…….Every purchase online, 7% will go towards a girls’ education scholarship fund in Pakistan and Afghanistan.
Suggest Three Cups of Tea to a friend……church, synagogue, mosque, university, high school class….
Check if Three Cups of Tea is in your local library. If not, either donate or suggest the library to add the book to their collection.
Encourage your local independent or chain bookstore to carry this book.
Write a Three Cups of Tea book review for Amazon.com, …….., or a blog..

6. …….

7……

And the list goes on. This is the first book that I read with a list of honest and thoughtful suggestions. I am amazed on how an American (an infidel, as described in the book) decided to open his heart to Muslim children. To be able to care and provide them with light of education more than a government can do. My sincere thanks to Mr. Greg Mortenson.

Postcards for Faraway Friends

2008-05-24T12:20:00.002+08:00

Two will travel back to my home country,

One will fly cross the continent to the breathtaking New Zealand,

And one will land at the Sultanate of Brunei Darussalam.

My prayer for the receivers,

May God bless them with good health,

Bestow them with happiness and wealth.

Words of Wisdom of The Alchemist

2008-05-20T20:14:00.003+08:00

The Alchemist – Paulo Coelho

This is the second book of Paulo Coelho that I read. I love the story; mystical, adventurous and life enhancing. It was about a boy; Santiago who followed his dream, and the unexpected events he had encountered.

“A beautiful book about magic, dreams and the treasures we seek elsewhere, and then find at our doorstep” – MADONNA

Many words in this book make a lot of sense to me. Book like this one can make me happy, make me smile and cry without reason, make me appreciate every moment that passing by and making me feeling adventurous.

“It is the possibility of having a dream come true that makes life interesting” – page 11

“I left my father, m my mother, and the town castle behind. They have got used to my being away, and so have I. The sheep will get used to my not being too” – page 29. P/s Like me, I was away from home since thirteen. But home is still a home. And everywhere I go, I know there is always a place that I can go back – my home.

“The boy felt jealous of the freedom of the wind, and saw that he could have the same freedom. There was nothing to hold him back except himself” – page 29.

“I’m like everyone else – I see the world in terms of what I would like to see happen, not what actually does” – page 42

“When you want something, all te universe conspires in helping you to achieve it” – page 42

Rich Site Summary (RSS)

2008-05-15T13:38:00.002+08:00

When I start this blog 7 months ago, It was only for personal use. I want a space on the internet where I can link to all my favorite financial blogs. So, I can go to my personal blog and put links. However, a few months ago, I found IGoogle. I know there is a way that I can personalise my search engine, but never try to find out how. Then I started learning how to personalize IGoogle. I add a tab for personal finance where I can put the links to all my favorite blogs. Even more, this tool is so good that I can add RSS.

What is RSS?

RSS (Rich Site Summary) is a format for delivering regularly changing web content. Many news-related sites, weblogs and other online publishers syndicate their content as an RSS Feed to whoever wants it.

Why RSS? Benefits and Reasons for using RSS

RSS solves a problem for people who regularly use the web. It allows you to easily stay informed and save time by not needing to visit each site individually. You ensure your privacy, by not needing to join each site's email newsletter. The number of sites offering RSS feeds is growing rapidly and includes big names like Yahoo News. by retrieving the latest content from the sites you are interested in.

A Dollar A Day, A Minute At A Time

2008-05-12T15:01:00.003+08:00

Read The One Minute Millionaire or Go to www.oneminutemillionaire.com

No matter your present circumstances, here are the four steps to your first million.

1. Decide that it's okay for you to become a millionaire.

Some people believe that the accumulation of wealth is an unworthy goal. Before you begin you journey to become an Enlightened Millionaire, search your attitudes to make sure you are willing to create wealth in a way that will support your inner beliefs and values.

2. Practice imagining yourself enjoying an abundant lifestyle.

All great fortunes are started in someone's imagination. See yourself living in the home of your dreams, enjoying ideal relationships with friends and loved ones, contributing to the world through your own unique talents and abilities. Imagine the fortune you could create and the good it could do. Believe it and you will see it.

3. Spend less than you earn.

But how? Pay yourself first. Deduct 10% off the top of your income, and deposit it into your investment account. Convert all your credit cards except one to debit cards so it is impossible fo you to go into debt. Then live on what is left over.

4. Invest the difference

Invest your 10% surplus into investments that can earn at least 10%. A dollar a day invested at 10% interest becomes a million dollars in 56 years. In other words, anyone can become a millionaire by investing only a dollar a day-30 bucks a month. If you want to become a millionaire faster, then invest more money or find ways to make your money grow at higer rates of return.

You can become a Millionaire.

It only takes a minute to decide it.
It only takes a minute to visualize it.
It only takes a minute to save it.
It only takes a minute to invest it.

A dollar a day-a minute at a time-you can get there. Slowly but surely.

A Dollar a Day and You are Millionaire

2008-05-11T22:55:00.004+08:00

In many ways, we always think the impossible is really an impossible. Maybe because we focus too much on the final result. But what is more important is the journey. A small act everyday, through persistence routine can yield a magnificent result.

How many of us believe that anyone can be millionaire by putting a dollar aside each day? If this is possible, we surely have many millionaires in this world, rite? The problem is we always look at other people and choose to believe what the majority believe.

A Dollar a Day ..... A Slow Way

One of the greatest human invention in the world of investment and economics is 'interest'. I am talking about good interest here, not the bad one. The interest (or dividend) is simply the return that we get for the investment which is made. Usually in term of percentage and at yearly basis, although not necessarily. However, interest by itself is not really helpful to make us rich. The interest need to be compounded year in and year out. This simply means reinvesting the interest as investment.

"A great physicist, Albert Einstein once referred to compounded interest as the eight wonder of the world"
How A Dollar A Day Can Turn to ONE MILLION at Different Rate in 66 Years

Invest In	Interest	Amount Accumulated
(Hidden in a mattress)	0%	$24,000
(In a savings account)	3%	$77,000
(Certificates of deposit)	5%	$193,000
(Corporate bonds)	8%	$1,000,000
(Growth mutual funds)	10%	$2,700,000
(Aggressive growth mutual funds)	15%	$50,000,000
(Real Estate, businesses)	20%	$1,000,000,000
		(That's One Billion!)

See that!! We can be a millionaire given that you put aside a dollar each day at the right place. We just need to be consistent and live long enough. In country like Malaysia, it is not hard to find place to put in your money. Amanah Saham Bumiputra (ASB) is one of great place to start. The fund consistently yield dividend no less than 7% each year (Dividend + Bonus). Buy..Hey!!! That is a dollar a day, 30 dollars a month. How about putting extra..60 Dollars a month, or 100 Dollars a month. Get it now???

But I am at thirties right now. How I can buy back the 30 years which had passed?

Do not despair. Our first mistake was : not to initiate the investment a long time ago. But the biggest mistake is not to start it now. Remember, the journey is more important than the destination.

I know I am Rich

2008-05-11T15:02:00.003+08:00

Millionaire? But I Earn only Few Hundreds Bucks...How I can save?

For me, this is a tough subject. Many people may ask me, how I can save when I earn little. Just enough to survive for another month. Have to pay bills, mortgages, unexpected and urgent payments and emergencies.

To be honest, I cannot answer this query with satisfactory explanation even to myself. This is mainly because I have no experience having so little money at any particular period of time. My life is a blessing and I am very thankful to God. This does not mean that I am coming from a rich family. But the opportunity and money is not something that I have to worry about. To illustrate this, let me tell my story.

Do you remember when is the first time you feel rich? I do. I start to feel that I live rich when I started university life. Rich is a relative perception. I refer to being rich is equal to having a calm and peaceful mind, having not to worry about money excessively. Every month, I meet my ends and needs.

By end of each month, I knew that there will be money in my bank account. It is not much, 240 pounds from the scholarships ( I was in Manchester that time). It is enough to eat and buy clothes. But the main factor how I survive was because I live below my own mean. I am not used to buy expensive clothing, perfume or concert tickets. The only things I spent my money on were books and electronics. I waited for boxing day to buy a nice jacket at at least 50% discount. I waited for summer and winter sale. I used online to buy cheaper books and electronics. I walked and cycled to university rather than took the bus. I brought home made sandwich and water for lunch. I did not make impulse purchases. I will wait for months to buy a camera just to find the cheapest deal and slowly save money for the item.

In young man's world, there are only two reason that messing our life. First is money, and second one is 'girl'. If I have a gilfriend, I will not buy her expensive thing. But do many small things that make big impact. Spend money on a romantic picnic at nearby park in easter rather go to expensive restaurant for dinner. Give her a cute little teddy when you are away rather buying her expensive necklace. Or start with a right choice, find girl with 'less maintenance'..Hehe.. unless u were born rich.

Jump Of Life

2008-05-11T04:03:00.004+08:00

JuMp of My LiFe :: NortEast Coast of Ireland

JuMp of My LiFe :: Abu Dhabi Desert

I start to think is it a good idea to post more pictures in this blog. Certainly, I would like to remain anonymous in the cyber space. A place where people get connected without having to know each other personally. A community that is built on common cause, neither by cultural and economical background nor the physical appearance. But I start to like to snap pictures of me hanging on the air. Remind me of how love, money, success, knowledge, peace, freedom, opportunity, and health are abundance in this world. And people can share this thing together without selfishness.

Oil Price Hits USD126

2008-05-11T03:54:00.005+08:00

Oil: After hitting $126, is $150 far behind? (05.09.2008)

Oil leaped into uncharted territory Friday, soaring past the $126-a-barrel mark for the first time, and leaving analysts and investors wondering how high the price will go.

Oil holds above $123 (05.08.2008)

Oil prices held steady Thursday in Asia after jumping to a record near $124 a barrel as investors captivated by the market's upward momentum seemed to ignore figures showing an increase in U.S. cru...

Why $120 oil is good (05.07.2008)

Speculators are often blamed for artificially inflating crude prices, but some experts say that's exactly what's needed to cut demand and develop new resources.

Analyst: $200 oil could be ahead (05.06.2008)

A Goldman Sachs analyst predicted Tuesday that oil prices could reach $150 to $200 a barrel over the next six months to two years, but said that how far prices could climb still "remains a major un...

The Witch of Portobello

2008-05-11T02:44:00.002+08:00

Time: 0434 Abu Dhabi Sat, May 10

This week has been a fruitful week. Managed to read 2 books despite of 6am to 6pm tight schedule. The first book was The Witch of Portobello by Paulo Ceolho. The story of Athena evolves around a mystical journey of a women who want to help other, who discover an ability which bring destruction to herself. Her life is told by the many who knew her well - or hardly at all. It is like looking at a single object from different angles and distances.

I realised that the last novel I read was Dan Brown's collection : Da Vinci Code, Angels and Demons, Digital Fortres and Deception Point. After finishing The Witch of Portobello, I continue reading The Monk Who Sold His Ferrari. This is an excellent book. In life, there are books that worth reading only once, and there are kinds of book thats worth to understand, practice and analyse. And this book by Robin S. Sharma can be a guide to have a better life.

At the moment, I am in Abu Dhabi, having my training 6am to 6pm on daily basis. The bus ride to the learning center takes an hour each journey. Every day, I spent two hours on the not so comfortable bus seat with seatbelt on. However, hey..I found out that It was the best two hours for myself. Instead of sleeping, I listen to music and read good books. Once a while, I watch the passing cars and wonder which car I should buy first. A Honda, BMW, or Mercedes....Haha...Or I should just stick to our national models..perhaps the new Proton Saga BLM. This strengthen my believe that humankind can create time. Most of the time, we blame the hectic schedule of our life to the extend we can hardly find time for ourself.

Cannot Open my Own Blog

2008-05-11T02:38:00.000+08:00

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New great financial website

2008-02-09T14:22:00.003+08:00

I found this great Malaysian website. And suddenly drawn to one of the post. The author wrote:

The five mistakes we have talked about so far are:-
- Not paying myself first
- Not forming or joining a correct peer group
- Not having a written budget
- Not managing my career properly and
- Not getting the best deals on my mortgages
There is more.
The next one is “foolishly selling my long term investments without proper evaluation and soul searching”.

Thank you for sharing the list. Mistake can be the greatest teacher in life.

Countries visited

2008-02-09T14:08:00.001+08:00

create your own visited countries map
or vertaling Duits Nederlands

The countries: Britain, Scotland, Wales, Ireland, France, Italy, Switzerland, Spain, Turkey, Singapore, Brunei

PIOF performance 23Nov to 5Feb

2008-02-08T20:25:00.001+08:00

I guess I just need time. Let the graph fall and let it rebounce back (bottom figure). Anyway, it just 2 months since I placed my cash there. It needs time to grow and to get momentum. Huhu. Compare to what happens if I start invest since the first day PIOF was launced (top figure ). The total return from 28 Jun 2005 to 05 Feb 2008 is 77.91%. That is in about three and half years.

Stock Market Index

2008-02-07T13:50:00.001+08:00

I am investing in Public Mutual unit trust. Thus, I always using the online performance chart to see the ups and downs of my fund. The company has done a great job by presenting the performance using chart, which i finds realy helpful and easy to understand. Well, on each performance chart, there are two lines indicating the fund performance and marke index performance. I never try to find what that Index line is trying to show. I always assumes that it shows the average performance of stocks in that particular category. So, I better get a clear definition on what the line try to represent.

As usual, goggling the definition of stock market index....

Definitions of Stock Market Index on the Web:

A representation of the value of securities that constitute a given market sector or industry. Indexes often serve as barometers against which ...www.confidentstrategies.com/glossary.htm

An index shows how a specified portfolio of share prices are moving in order to give an indication of market trends.www.maaklmutual.com.my/ASP-bin/Public/mutGlossary.asp

stock index: index based on a statistical compilation of the share prices of a number of representative stocks wordnet.princeton.edu/perl/webwn

A stock market index is a listing of stocks and a statistic reflecting the composite value of its components. ...en.wikipedia.org/wiki/Stock market index

Back at base, Mountain of Oil, Turkmenistan

2008-02-07T13:34:00.000+08:00

Yeahh...I am at the base now after 2 weeks of night shift at Burren's rig. I was rigging down yesterday whe I just finished my night shift. Which means I havent sleep for 24 hours. hehe...

I just want to have an easy day today and feel like blogging again. I realised that the economy is not so good at the moment. The SLB share dropped from almost USD100 at th end of 2007, to USD74.86 today. maybe this s a good time to buy more stocks for those who has spare cash. The SLB stock price, I believe will get better soon.

The same story goes to US Dollar. Dollar gets weaker day after day. Today, the exchange rate (from xe.com) is USD1 = RM3.23. Since my salary is in USD, I think it is not a good time to transfer my money to my Maybank account in Malaysia. I can easily lose money as the USD gets weaker. This effect will be of great significant when I transfer a large sum of money. So I will wait for USD to get stronger, but I do not know when. Well, after back of envelope calculation, I think it is not worthy to transfer the money now, and lose few hundred Ringgit, eventhough it is good if I can dump my money in unit trust at the earliest opportunity that I have. I think I will transfer the money when USD1 is equaivalent to RM 3.30 or more. we will see later.

Slb Stock

2007-12-07T23:56:00.000+08:00

I am not really interested about stocks. It is a foreign subject to me. I prefer to deal with Unit Trust rather than companies shares. However, I have chance to buy my employer's stock at discounted price. Huhu. This can be a great opportunity.

Let say what Yahoo!Finance said about the company and the competitors.

Schlumberger Limited operates as an oilfield services company in the United States and internationally. The company operates in two segments, Oilfield Services and WesternGeco. The Oilfield Services segment provides technology, project management, and information solutions to the petroleum industry. Its technologies primarily include open-hole and cased-hole services; drilling and measurements; well testing and well services; completion services, including intelligent well completions; production optimization services using electrical submersible pumps and other artificial lift mechanisms; data and consulting services; and consulting, software, information management, and IT infrastructure services that support oil and gas industry core operational processes. This segment offers exploration and production services required during the life of an oil and gas reservoir. The WesternGeco segment provides reservoir imaging, monitoring, and development services, as well as operates seismic crews and data processing centers and multi-client seismic library. This segment's services range from 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company was founded in 1926 and is based in Houston, Texas.

From the above table, we can see there are 3 other major service companies. There is another one which is Weatherford. Note that Earnig per Share (EPS) for Baker Hughes is higher than SLB. Hmmmm....

No time to Update

2007-12-07T04:29:00.000+08:00

It has been more than 2 weeks since the last time I update my blog. I find it is difficult to find time for this purpose. I am in Paris for these two weeks and will be leaving to Turkmenistan tomorrow morning. Will it be heaven or hell? It is hard to tell.

Now, my job will bring me to every corner of the world. Tentatively, I will be in Turkmenistan for 2 months. Then, I will be flying to USA for 10 weeks course. What a wonderful life..lalalala

It means less time I can spend in front of my brand new laptop to update my blog. :: ::

Time is Money

2007-11-23T12:46:00.000+08:00

Consider 10% return annually, and the figure shows how much do I need to save to become millionaire at retirement. I need to start now.

Rule 72: An Extension

2007-11-07T14:26:00.001+08:00

I have found a better explanation on Rule 72. This approximation technique is useful in many other ways.It is not only used to find out how long it takes for your money to double. I copied this article from Malaysian Investor Website.

Rule of 72 – Time to Double Your Money…. or Debt? This article gives a quick rule of thumb to calculate how fast your investments can grow. If you put RM1,000 in a fixed deposit s today and earn a 3% return per annum, do you know how long does it takes to double your money? Before you rush off for a calculator, let us tell you, it is 24 years. How d id o we get that number in a matter of second s ? S imply , by dividing just 72 by 3 (the interest rate). Yes, 24 years is the time it takes for RM1,000 to double to RM2,000 (assuming that no further deposits are added in that time).

Rule of 72

The “Rule of 72” is a rule of thumb that can help investors compute the time it takes for their money to double, given an interest rate or return, and if they do not add in any money in that time. It is called the Rule of 72 because at 10%, the money will double every 7.2 years. However, like any rule of thumb, this rule is only good for approximations.

What else can it be used for?

To find the rate of return required to make your investment portfolio double
Divide 72 by the number of years you want your money to double. For instance, if you want your money to double in 10 years, thus you will need a consistent 7.2% return from your investment annually.

Calculation: 72/X years = Y (% of return)

72/10 years = 7.2% return

To find out how fast your debts can double, especially with high interest rates
If you borrow RM10,000 at 12% interest rate s , thus it would take s six years for your debt to double to RM20,000, if you do not make any payments. So pay your credit card debt now!

Calculation:	72/Y % (interest rates) = X years
	72/12 % = 6 years

To show how inflation rate can halve your buying power
For those that who still favour putting your savings under the mattress, this rule will show how inflation rate can halve your money. For instance, if the inflation rate is approximately 2%, your money would only be worth half of of its original value in 36 years. So if you have RM1,000 today, it will only be worth RM500 in 36 years time. This is, of course, assuming the inflation rate remains the same throughout the period.

Calculation:	72/ W % ( inflation rate )
	72/2 % (inflation rate) = 36 years

Among its drawbacks

One of the disadvantages of this calculation is that it does not take into account any additional money that you can or will invest over the years.
The rule assumes that your investments are tax-deferred and earn ing compound interest.
The rule is applicable for approximation only and not for real accura te cy calculations .

The Rule of 72 is a quick tool to predict how fast your money or debt will grow, how much returns you will need to earn to achieve your financial goal and how inflation can affect your savings.

* Please note that the rate of return, inflation and interest rates in this article are for illustration purposes only and does are not meant to represent any specific investment or imply any guaranteed rate of return etc. Investor s must remember that the value of actual investments may fluctuate.

Profit from Unit Trust

2007-11-01T00:12:00.000+08:00

Basically, the unit holder can gain profit from unit trust investment in 2 ways:

First : Capital Gain - This relates to the appreciation of value (when NAV value increase over time)

Second : Distribution - The manager will announce the distribution for each unit in term of cents or percentage.

Introduction to Unit Trust

2007-10-31T22:03:00.000+08:00

Unit trust is another investment vehicle which I can categorized as moderate risk. However, each fund has it own risk rating and should be accessed individually.

What is Unit Trust?
A investment scheme which allow me to pool my money with other investors (thousands of them) and professionally managed. Investment manager will invest the money on my behalf and distribute the profit/loss back to the unit holder.

Why do I Need Unit Trust? Can I Just Invest by Myself?
I need to understand the benefits of unit trust in order to answer the questions.

The Benefits of Unit Trust

Professional Fund Management: For a small fee, professional fund managers will decide how to invest my money using their expertise and resources. This is what I am lacking. So it is a good idea to hire them.

Diversification: My money will be invested over a broad portfolio of stocks in different companies, sectors, countries or regions. This will reduce the risk involved.

Simple, Save Time and Liquidity: It is easy to purchase unit trust compared to buy stock directly in stock market. It saves me time to study and predict future market in order to make decision. I can redeem my investment and receive cash within two weeks.

Modern Saving and Piggybank

2007-10-30T15:38:00.000+08:00

I find it is interesting to learn the concept of 'piggybank'. Piggy bank is the traditional name of a coin accumulation and storage container, most often used by children.

During my childhood, I did not have any piggybank to save my money. Instead of yellow piggy clay, I saved my coin in a 'tabung buluh'. Tabung buluh is basically a bamboo which has been cut with certain length to become a container. A small slot is made by using saw to insert coin into the bamboo. However, the concept is the same. Children need to break the piggybank or the bamboo to retrieve the money they have saved.

The modern saving scheme should act the same way. Imagine a unit trust is like a piggybank. I can only deposit money in it. Leave it and wait. Only break it after it is full. This lesson is simple, which we have learnt many years ago.

Budgeting: Do this and Discover the Difference

2007-10-30T13:36:00.000+08:00

Put Savings (and Yourself) First With a Budget

(from Yahoo!Finance)

Personal savings have reached record lows, yet saving is essential to ensure a comfortable future. Learn how to track monthly expenses with a budget and potentially free up cash for saving.

Where does that money go? America, it seems, is in the midst of a savings crisis. Personal savings rates have dropped in recent years and remain low by historical standards as many people continue to spend beyond their means.

If you're among those Americans who can't seem to save, it might be time to create a budget. A budget allows you to understand where the money goes and may help you free up cash for important savings goals, such as college and retirement.

Setting up a budget will require some work, but the benefits more than offset the time invested. How you create your budget is up to you. You may choose a piece of financial planning software, such as Microsoft Money or Quicken, or you may choose the paper and pencil route. The above worksheet is a simple yet inclusive budget that you can use to get started.

The first element of any budget is your income, or how much money you receive each month. This can include paychecks, legal settlements, alimony, royalties, fees, and dividends from investments that you do not reinvest. Once you know what your monthly income is, you can use a budget to make sure you don't spend more than you earn, thus helping to reduce debt and freeing up cash for savings.

Next, you need to know how you spend your money. Start by tracking your spending for a month. Gather bills and receipts, and don't forget to include newspapers from the corner store and trips to the soda machine. Don't assume any expense is too small to record.

Write down your expenses and break them into categories. Using the budget worksheet as an example, we find Fixed Committed Expenses -- mortgage, loan, and insurance payments that stay the same from month to month; Other Committed Expenses -- things you can't live without, like food, utilities, and clothing; and Discretionary Expenses -- things you like but don't necessarily need.

Once you know where the money goes, it's time to analyze your expenses. There probably isn't much you can do about Fixed Committed Expenses without moving or getting rid of the family car. However, if these expenses are greater than your monthly income, you are probably carrying too much debt to effectively save.

You may find some room to economize in Other Committed Expenses, but look at Discretionary Expenses first. This is typically the easiest place to reduce spending. Begin by canceling magazine subscriptions to titles you don't read. Eat fewer meals out, or choose less expensive restaurants. Across much of the country, you can rent two DVDs for the price of a single adult ticket to a movie and throw in some microwave popcorn for a dollar more.

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Once you've reduced discretionary spending, look at those Other Committed Expenses. Can you reduce the grocery bill with coupons or more economical meals? How about taking public transportation instead of cabs?

One area to closely examine is credit card debt. If a high balance is keeping you from saving, you need to find ways to trim those monthly payments. Call your credit card company and ask them for an interest-rate reduction, or shop around for a card with a lower rate. You can find a list of low-rate cards through CardWeb (1-301-631-9100 or online at www.cardweb.com). Beware of low introductory "teaser" rates that increase to much higher rates after six months.

You could also consider a home equity loan, which may offer a tax deduction, or a consolidation loan. Make sure that you'll be able to afford the monthly payments before you take the loan. Banks can foreclose on a home equity loan within 90 days if you miss payments.

If your savings are still being crushed under the weight of debt, or if you're having trouble making minimum monthly payments and covering necessary expenses, consider getting some help. The nonprofit National Federation for Credit Counseling (call 1-800-388-2227, or visit www.nfcc.org) can help you set up a budget and negotiate payment schedules with lenders for a modest fee. Once you start paying off your credit cards, the extra money can be used to build savings.

Once you've figured out where to economize, you can enter amounts in the Expected column of the budget. Notice that Savings and Children's Education appear under Fixed Committed Expenses. This is to encourage you to pay yourself first, a key rule of saving. By setting aside a certain amount each month for savings, you can build toward your goal without missing the money. You may be able to set up a payroll savings plan through your bank or credit union. Also look into any employer-sponsored retirement plans you may have at work, which potentially offer tax benefits along with savings for the future.

It might also help to set a savings goal, both for short- and long-term needs. Studies have revealed that families with savings goals tend to save more.

Remember that your budget is a living document. As your circumstances change, so will your goals and needs. Review your budget every few months to make sure it reflects your goals and to see if you are saving as much as you possibly can.

Summary

You can use computer software or a pencil and paper to create a budget.
Analyze your spending for a month to see where your income goes. If your living expenses are greater than your income, you'll need to find ways to economize.
Your spending can be broken down into three categories: Fixed Committed Expenses, Other Committed Expenses, and Discretionary Expenses.
To free up cash for savings, begin by reducing Discretionary Expenses, then look at Other Committed Expenses.
Pay down credit-card debt aggressively. Once the debt is paid off, direct the extra money to savings.
Set aside some of each paycheck for savings goals. Ask your bank or credit union about payroll savings plans and investigate your employer-sponsored retirement plan.
Review your budget periodically to make sure it is still in line with your needs and goals.

Checklist

Start carrying a pocket-sized notebook and pen or pencil to record purchases throughout the day.
If you plan to use computer software to help create your budget, begin shopping around for the best deal.
Set a new savings goal for the year ahead -- such as saving 5% or 10% of income for retirement and other priorities.
If you still don't know where to start, consider seeking advice from a trusted financial advisor.

Top 10 Money Drains

2007-10-30T12:35:00.000+08:00

As appeared on Yahoo! Finance

Top 10 Money Drains

Thursday, August 16, 2007provided by

It's easy to fritter away money on daily expenses. If you fall into these money traps, learn to avoid them and pocket the savings.

1.	Coffee	6.	Car washes
2.	Cigarettes	7.	Weekday lunches out
3.	Alcohol	8.	Vending machines snacks
4.	Bottled water	9.	Interest charges on credit cards
5.	Manicures	10.	Unused memberships

1. Coffee -- According to the National Coffee Association, the average price for brewed coffee is $1.38. There are roughly 260 weekdays per year, so buying one coffee every weekday morning costs almost $360 per year.

2. Cigarettes -- The Campaign for Tobacco Free Kids reports that the average price for a pack of cigarettes in the United States is $4.54. Pack-a-day smokers fork out $1,660 a year. Weekend smoker? Buying a pack once a week adds up, too: $236.

3. Alcohol -- Drink prices vary based on the location. But assuming an average of $5 per beer including tip, buying two beers per day adds up to $3,650 per year. Figure twice that for two mixed drinks a day at the local bar. That's not chump change.

4. Bottled water from convenience stores -- A 20-ounce bottle of Aquafina bottled water costs about $1. One bottle of water per day costs $365 per year. It costs the environment plenty, too.

5. Manicures -- The Day Spa Magazine Price Survey of 2004 found that the average cost of a manicure is $20.53. A weekly manicure sets you back about $1,068 per year.

6. Car washes -- The average cost for a basic auto detailing package is $58, according to Costhelper.com. The tab for getting your car detailed every two months: $348 per year.

7. Weekday lunches out -- $9 will generally cover a decent lunch most work days. If you buy rather than pack a lunch five days a week for one year, you shell out about $2,350 a year.

8. Vending machines snacks -- The average vending machine snack costs $1. Buy a pack of cookies every afternoon at work and pay $260 per year.

9. Interest charges on credit card bills -- According to a survey released at the end of May 2007, the median amount of credit card debt carried by Americans is $6,600. Rate tables on Bankrate.com indicate that fixed interest rates on a standard card average 13.44 percent. Making the minimum payment each month, it will take 250 months (almost 21 years) to pay off the debt and cost $4,868 in interest. Ouch!

10. Unused memberships -- Costhelper.com reports that the monthly service fee at gyms averages between $35 and $40. At $40 per month, an unused gym membership runs $480 per year.

EPF (KWSP)

2007-10-29T22:59:00.000+08:00

KWSP..Well, most of us know what it is. But what should i know about this scheme?

It is compulsory for those working in Malaysia. The employee will contribute 11% of basic salary, meanwhile another 12% come from the employer. In total, the employee will have 23% of his basic pay in the account.

Since this is for retirement purposes, the dividend is quite low compared to other investment vehicle. This is well understood since the fund is intended for saving, not for investing.

Since 1st January 2007, there are two accounts for each KWSP member.
Account 1 - consists 70% of monthly contribution
Account 2 - consists 30% of monthly contribution

Account 1 is mainly for retirement purposes. No withdrawal before 55 years old. Account 2 can be used for buying house, children education and can be withdrawn at 50 years old. The details can be found at KWSP website.

KWSP Dividend 1952 -2005

YEAR = DIVIDEND PAID
1952 - 1959 =2.50%
1960 - 1962 =4.00%
1963 =5.00%
1964 =5.25%
1965 - 1967 =5.50%
1968 - 1970 =5.75%
1971 =5.80%
1972 - 1973 =5.85%
1974 - 1975 =6.60%
1976 - 1978 =7.00%
1979 =7.25%
1980 - 1982 =8.00%
1983 - 1986 =8.50%
1987 - 1994 =8.00%
1995 =7.50%
1996 =7.70%
1997 - 1998 =6.70%
1999 =6.84%
2000 =6.00%
2001 =5.00%
2002 =4.25%
2003 =4.50%
2004 =4.75%
2005 =5.00%

ASB Divedend 1990-2007

2007-10-29T18:31:00.001+08:00

Book Review : Banker to the Poor

2007-10-29T18:10:00.000+08:00

Banker to the Poor

The Author: Muhammad Yunus was born in Chittagong, a seaport in Bangladesh. He was educated at Dhaka University and was awarded a Fullbright Scholarship to study economics at Vanderbilt University. In 1972, he became head of economics department at Chittagong University. he is the founder and managing director of Grameen Bank. He is a winner of the Nobel Peace Prize.

What it is all about: This is a great book! It teaches me to believe that majority of the world population are hardworking and honest. At first Yunus loaned $27 from his pocket to 42 stool makers living in a tiny village. He then went to local bank but failed to persuade the manager to provide small loan to the poor.The bank did not believe in two things. First, the loan would not change the life of the poorest family in the region. Second, the poor would not be able to pay back the loan in time.

As a result, Yunus founded Grameen Bank and helped these villagers to come out of the poverty cycle by providing micro lending scheme. the result was impressive! The loan repayment rate was almost 100% !!

This is one of my favourite book. Poor people is among the most honest person in this world.

How Much? : RM67 from Kinokuniya (273 pages)

Check the website here.

KPF Dividend 1992-2006

2007-10-29T14:29:00.000+08:00

I just being informed that the dividend for year 2005 was 14%. The KPF website announces 10% dividend and 4.5% bonus for year 2006.

Koperasi Permodalan Felda (KPF)

2007-10-29T13:46:00.000+08:00

Koperasi Permodalan Felda (KPF) was founded in 1980 to provide saving and investment opportunity to settlers (peneroka) and staff of FELDA. This initiative provides chances for members to have equity in subsidiary companies under FELDA. KPF is open to settlers (peneroka and penerokawati), their spouses and children. As my father is a settler since 1979, I took this opportunity to register with KPF about a month ago with RM5 fee. I am looking forward to obtain my registration number which means i can start my investment.

Click here to look at KPF website.

But what so special about this KPF? Since 1992 to 2004, KPF yielded an average of 13.27% of dividend every year. This is much higher than conventional ASB investment.

So if you are sons or daughters of a settler, take this opportunity and build your wealth faster (unless you have more lucrative investment vehicle). I know there are similar kind of investment like KPF which are specifically design to cater a member of an organization. For example, ATM (Angkatan Tentera Malaysia) also has its own cooperation. Ask your father or mother if they are member of such organization. Then find out the advantages of being a member and your eligibility.

ASW 2020 Performance

2007-10-29T13:21:00.000+08:00

Year	Dividend %
2001	7.25
2002	7.25
2003	6.60
2004	7.00
2005	7.10
2006	6.80
2007	8.00

Amanah Saham Wawasan 2020 Past Performance

The highest dividend - 8.00% year 2007
The lowest dividend - 6.60% year 2003
Average dividend - 7.14%

ASB Performance

2007-10-29T00:26:00.000+08:00

The graph below shows ASB performance (dividend plus bonus) from 1990 to 2007.

The highest return (dividend plus bonus) : 14% in 1990 and 1994
The lowest return : 8.55% in 2007
Average return : 11.15%

* I do not guarantee the accuracy of any figure in this blog. I have tried my best to find the most reliable source for the data.

Where to Save and Invest?

2007-10-28T23:09:00.000+08:00

Most people know where to save their money. In Malaysia alone, we have more than a dozen of banks which can be used. Setting up a saving account is not much a hassle anyway. However, do I know where to invest?

Investment Vehicles

In my opinion, there are few investment vehicles which are readily accessible in Malaysia.

ASN, ASB, ASW etc : Permodalan Nasional Berhad (PNB) is part of government effort to instill a saving habit among Malaysians. PNB has issued various unit trust schemes such ASB, ASN, ASW 2020, ASD, ASG. PNB was founded in 1979 and became the largest fund management company in Malaysia. These unit trust scheme usually yield between 7-10% dividend each year.

Click here for PNB master prospectus.

Other Unit Trusts: Unit trust has a long history since 1959 in Malaysia. Nowadays, there are at least 20 companies offering unit trust products. The unit trust can give up to 40% return in a year (not all, only few with exceptional performance). However, the average return is between 10-20%. It is advisable to leave my money for at least moderate term (3 years) in order to get a fair return.

Property: Property is almost sure to appreciate in value. With development around Malaysia (such as Wilayah Pembangunan Iskandar WPI), some regions will experience property booming soon.

These are 3 investment vehicles which i think readily accessible in the market. The other vehicles are complex, consume time and need big capital. Thus, as an average person I will concentrate on these 3 investment vehicles. These investments are simple and easily understandable with manageable amount of risk.

Saving vs Investing

2007-10-28T12:45:00.000+08:00

Actually there are major differences between saving and investing. In previous post, I have combined saving and investing together. At times, the word 'saving' that I used, can be translated directly as 'investing'.

The Definitions:

This is my personal definitions of saving and investing. Saving is putting aside my money in some place in which I will be able to get it anytime I want without any delay. Saving is intended to smoothen my cash flow without any intention of getting any return from the activity.

However, investing means allocating some portion of my money in places where it can grow and yield return in medium or long term. To stay solvent in this modern world, it is important to have both elements in our financial plan.

How They Differ

Goals: Saving is for short term goal and to ease daily business transaction or in emergency. Investing is mainly moderate (3 years) to long term commitment. The money is less liquid in investing compared to saving. For example, saving maybe used to purchase new sofa set while investing is for children's education.

Vehicles: Saving and Investing vehicles are not the same. The most common form of saving is bank account (saving and current accounts). Meanwhile, investment can be made in the form of bonds, mutual funds and property.

Return and Risk: Most likely the return of investment is much higher than saving. The same apply to the risk associated with both methods.

Liquidity: It is easier to get my saving money at any time I want. By using ATM card and Internet banking, any transaction can be made by just touching few buttons. Meanwhile, money which is invested takes time to be converted into cash. This may take several days.

Time is Money

2007-10-28T11:46:00.000+08:00

Time is our best ally in investment. So, start now to save regularly. To illustrate the important of start early, let consider these situations.

Case 1

Aminah starts a regular saving at age 25. She plans to have RM1 million a retirement (age 55). Thus she has 30 years to achieve her goal. Let us assume that the dividend is 10% per year. To achieve her goal, Aminah need to save RM481 per month. Note that at retirement, she earns RM8366.79 monthly till the day she dies.

Case 2

Meanwhile, Abu has a similar goal. But he starts his regular saving 5 years later, at age 30. He only has 20 years to achieve the same goal. As a result, he needs to save RM725 monthly, which is RM244 more than Aishah.

Case 3

Zack is the worst. He starts at age 35. He needs to save RM1236per month to be as rich as Aminah and Abu at retirement. 1o years late means Zack has to pay extra RM755 compared to Aishah.

So, the best advice is to start early. Start saving when I receive my first paycheck.

How to Save?

2007-10-28T10:49:00.000+08:00

Saving - Put My Faith in It, but How to Do It?

Pay Myself First: The key to successfully saving plan is to pay myself first. I need to make it a habit to set aside some money for me first. The bills and other people should wait! Most people are paying themselves last. And by the time they finish paying others (utilities companies, friends, cable TV company, etc), they only have few cents left for themselves. Thus, I need to

Save 10% of My Paycheck: I should save at least 10% of my paycheck every month. I need to do this the first moment my money is in the bank. Then If I am comfortable, I will increase the percentage and find ways to reduce my expenses.

Make Lump Sum Investment Occasionally: Some employee receive a great treat towards the end of the year. Bonuses, Incentives and simply Hari Raya Angpau can be used to expand my saving size. I need to remember the more money I save, the more dramatic my saving will grow.

Live Below My Means (LBMM): Live below my own means does not mean to lead a stingy, misery life. I just need to be frugal and be careful on my purchases. On the Internet, there are lots of tips on how to live below my means. Apart from a well controlled cash flow, LBMM can instill a noble character, not to show off with my wealth.

Discipline and Commitment: After all, I need to committed to what I write. Always to imagine the end result that I want and stay in focus.

The Rule of 72 - Doubling My Money

2007-10-28T00:23:00.001+08:00

This is a simplified calculation on how long do I need to double my invesment. Just divide 72 with the expected interest every year . I am assuming the interest is constant all the time which is very unlikely.

The result as follows;

Interest Rate-Years
3% -24 years
4% -18 years
5% -14.4 years
7% -10.3 years
8% -9 years
10% -7.2 years
20% -3.6 years

Interesting right? I have no idea where 72 is coming from. But the calculation does give a good estimate.

The Power of Compound Interest

2007-10-27T23:38:00.000+08:00

The most basic investing strategy is not hard to understand. Perhaps the easiest tactic is to leave my money alone and let it accumulate over time, or ''compound''.

Two basic principles of ''compound'' are:

1. The more I save, the faster it grows

2. The earlier I start to invest, the more dramatic my money can grow.

Firstly, I should understand and believe that money can grow over time. The process is slow but it is a sure way to accumulate wealth in a long run. To illustrate the power of compound interest, let see simple cases.

Case 1

Ali is saving RM200 in ASB every month without fail since he is 25. Let's assume that the dividend of ASB is 7% every year. 25 years later, at age 50 the total saving he has is RM157,533.35.

The amazing fact behind this number is that: the total money that Ali actually put in during those year is RM60,000. This is only 38.1% of his total wealth. A total of RM97,553.35 is accumulated compound interest!!

Case 2

Saving for children education is a prime concern of most parents. When Abu is having his first baby, he has saved RM10,000 at that time. He put the money in a bank with an interest of 8% per year for his baby education. When the baby grew up and ready to enter university, Abu already has RM 50,338.34 as a result of his 20 years investment. See how RM10,000 can grow to 5 times its value in 20 years. Abu no need to worry about settling down his son education fee. But a lump sum of RM10,000 is too much for many parents.

Case 3

RM10,000 is maybe too much. To be more realistic, Zainab save RM100 per month for her baby education since she knew she is pregnant. After 7 years, her total saving is RM11,171.35. From that moment, she stops her regular saving and let the money grow by itself. When her child reaches age 20, the saving has grown RM30,381.87. This can be used to finance her child education at local university.

I have not earn my first wage from a formal job yet. So, I have no experience on how it feel to receive the first pay. At university, I work part time as a domestic assistant or cleaner. I cleaned university hall of residence and being paid almost equivalent to the national minimum wage. Most of the money was used to fund my travel around Europe. Anyway, that when I was a student, had no idea of saving and compound interest.

To calculate the compound interest of your investment, click here.

Introduction to Saving Plan

2007-10-27T23:25:00.000+08:00

Before one has money to invest, he need to learn to save first. Without any saving,one cannot invest unless he has inherited million dollar legacy from his late parents.

To a lot of people, saving means keeping aside a small percentage of monthly allowance for future use. The amount of monthly saving is diferent for one person to another. It depends on one's liability (car loan, bills, etc) and lifestyle. As a basic rule, the least that need to go into saving each month is 10% of paycheck.

As a graduate engineer, I may earn at least RM2000. This means RM200 should go to my saving account. But that's not all, the hardest part of the journey is to minimize the expenditure and maximize the income. Thus, I can save more.

It is important to set a goal for the saving plan. People may save for retirement, for house downpayment, for children education, or for marriage.

Introduction

2007-10-27T21:25:00.002+08:00

Money is an essential part of daily life. Yet, we have been taught almost nothing about it. Since childhood, we believed money is to be spent, as an exchange for good or service. We think money means prosperity and easy life.

But the thing that we do not know is money can grow. Money can depreciate in value. Risk is part of money and need to be managed properly. Thus, I have started a quest to understand money better. Money can be either a good and obedient servant, or the worst master.
I wish I can start to write down the knowledge of money. A wise man once said

''Knowledge is like a wild animal that you hunt. If you not tie the animal (write it down), it will run away''

I hope this effort will benefit me the most. Good luck to me on my journey.

Calculation:	72/X years = Y (% of return)
	72/10 years = 7.2% return

Matdex Financial Journey

My Gratitude List

Car Purchase and My Experience

The Secret by Rhonda Byrne

KPF: Who can become a member?

Highest KPF Dividend ever 16.5% for Year 2007

Third Ride : 70km and beyond ....

The Kite Runner : The Movie

The Kite Runner by Khaleed Hosseini

Pain in the Butt

Second Ride : Adela – Desaru Golf – Adela

First Ride : Adela – Sg Rengit – Adela

My New Ride

Eyeing My New Ride

Car Loans .......

The Sequences >>>

Three Cups of Tea

Postcards for Faraway Friends

Words of Wisdom of The Alchemist

Rich Site Summary (RSS)

What is RSS?

Why RSS? Benefits and Reasons for using RSS

A Dollar A Day, A Minute At A Time

A Dollar a Day and You are Millionaire

I know I am Rich

Jump Of Life

Oil Price Hits USD126

The Witch of Portobello

Cannot Open my Own Blog

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New great financial website

Countries visited

PIOF performance 23Nov to 5Feb

Stock Market Index

Back at base, Mountain of Oil, Turkmenistan

Slb Stock

No time to Update

Time is Money

Rule 72: An Extension

Profit from Unit Trust

Introduction to Unit Trust

Modern Saving and Piggybank

Budgeting: Do this and Discover the Difference

Put Savings (and Yourself) First With a Budget

(from Yahoo!Finance)

1.Put Savings First With a Budget

2.Getting Started

3.Less Spending = More Savings

4.Digging Deeper

5. The Goal: More Savings

Checklist

Top 10 Money Drains

Top 10 Money Drains

EPF (KWSP)

ASB Divedend 1990-2007

Book Review : Banker to the Poor

KPF Dividend 1992-2006

Koperasi Permodalan Felda (KPF)

ASW 2020 Performance

ASB Performance

Where to Save and Invest?

Saving vs Investing

Time is Money

How to Save?

The Rule of 72 - Doubling My Money

The Power of Compound Interest

Introduction to Saving Plan

Introduction