Category Archives: Finance

Do you need sound money advice? Reasons to get a Financial Advisor in Malaysia

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What is your notion of financial freedom? Have you reached the peak of your productive years or presently struggling to achieve a lifestyle goal? Financial freedom is not about having a sustainable income to pay for the necessities and luxuries to enjoy. It extends beyond your current financial capacity or propensity to earn.
If you desire to be financially free, you have to set short-term and long-term goals. Part of your short-term goal is to maximize your earning potential today; while taking control of your financial position is part of your long-term goal.1
Financial Planning
The well-off Malaysians, particularly the younger professionals, are presented with challenges that obstruct the path to financial freedom. Casual spending habits and excessive use of credit cards often lead to financial woes. In short, the future financial outlook is bleak with no clear direction.
Personal finance and wealth management is increasingly generating interest among the affluent bunch. Today, one of the most valuable solutions to financial security is financial planning. Seeking financial advice in Malaysia is becoming the norm. Financial professionals can help you craft a comprehensive financial plan and the rewards of which, you will harvest in the future.2
Financial Advisor
Choosing a financial advisor and establishing a relationship is your first step to financial freedom. Young professionals, junior executives, pre-retirees, and retirees would benefit from sound and impartial financial advice.
The ideal financial plan would cover the personal finance side as well as the wealth management aspect depending on your financial position and expectations.
The Benefits of having a Professional Financial Advisor
o Establish the right direction for you to follow and stay on course towards your financial goal
o Guide you in money management and money growth
o Assist you in debt management or alleviate your debt burdens
o Educate you on the risk and rewards of deposit, loans, and other available financial products
o Help you spot investment opportunities and make sound financial decisions
o Plot your insurance needs for personal and asset protection
o Receive expert advice on tax strategies, retirement options, and estate planning for future contingencies
A financial plan will help you see the destination clearly. It’s easier to develop the discipline and focus on your future financial welfare if you have a financial road map. There is no better time to organize your financial affairs than now. Pursuing financial freedom is not temporary, it is an ongoing concern.

BEGINNER’S LUCK – 8 Things That Happen to You After You Get Your First Credit Card

There is a first time for everything so they say. But for the yuppie professional across the globe, owning your first credit card brings a whole lot of wonder. You are now considered part of the mainstream working class with the spending power. As first timer, the predisposition to immediately use your credit card is very strong. Your likely option is to take advantage of the credit card promotions in Malaysia which probably is one of the reasons why you applied for the plastic in the first place.

Owning your first credit card is serious stuff. While it is stimulating, with the sudden increased capacity to purchase, it comes with serious responsibilities too. Your plastic is a tempting companion wherever you may be. People around you use credit cards for small to large purchases, from the necessities to the most luxurious items. The power to spend is in your hands.

However, some things happen to you when you are ready to use and swipe that plastic card of yours.

 

8 Things That Happen to You After You Get Your First Credit Card 

 

  1. You feel a sense of pride and acceptance.
  • But you need to educate yourself about the proper use of credit cards.

 

  1. Your status has been elevated several notches higher.
  • You were granted a privilege not wealth.

 

  1. You now belong to the mainstream consuming public.
  • But be a responsible consumer when you think of spending.

 

  1. You have the means to purchase items you only dream about.
  • Your purchasing power should equate to your earning capacity.

 

  1. You are tempted to buy things that come your way.
  • Learn to distinguish need from impulse buying.

 

  1. Your tendency is to finish off your credit limit
  • Whatever you purchase with your plastic is not free, you pay it back.

 

  1. You do not care about the repayments and surcharges yet.
  • Don’t get carried away. You will pay more when you default in payments

 

  1. You feel the urge to get a second credit card
  • Build your credit standing first. A second credit card means spending beyond your means. It will only lead you to financial misery. You are also bound to lose your first credit card privileges.

 

Again it has to be emphasized that owning a credit card is serious stuff. Remove the notion from your head that it is a status symbol. It is no longer that way. Just about everyone owns a plastic. Remember that having a good credit reputation is for the long run. You build it up with the prudent use of your first credit card.

 

 

FINANCIALLY HEALTHY AT 20 – 5 Things You Need to Do With Your Finances in Your 20s

Money management is not your priority at age 20. You are still financially dependent on your parents for everything and anything. Food, clothing and shelter expenses are the least of your worries. The coming of age begins when you fly out of the nest to seek your own fortune. You are at the beginning of your most productive years, ready to join the ranks of the workforce and determined to fulfill the dreams of youth.   Perhaps you’re one of the few who thinks ahead early on in the game. Setting your sights on the future makes a whole lot of sense. As a thinking yuppie, you find the need to apply for plastic (credit card) as the rest. However, your intention is not really for spending but protection. You must have some information about the best credit card to pay an insurance premium which offers life insurance coverage with affordable payment scheme aligned with your paltry paycheck. It’s an intelligent move.

Manage your funds for the long-term by following these instructions:

 

5 Things You Need to Do With Your Finances in Your 20s

  1. Aim For Financial Independence

Break free from the pockets of your parents and chart your own economic agenda. It will be a welcome relief for them to see you earning your keep.

 

  1. Create A Budget

Once the income streams from your work become regular, establish a budget. Do not spend beyond your earning capacity.

 

  1. Save and Save

Don’t just dream about your retirement, save for it. Besides, your savings can be used for a rainy day or emergencies. You are in effect saving when purchases are carefully planned. Avoid impulse buying too.

 

  1. Go For Insurance

Securing life insurance is one of the best practices when your goal is protection for the future. Educate yourself on non-life insurance too. As your disposable income grows, be sure to cover your hard assets like cars or condos with insurance.

 

  1. Organize Your Financial Records

The young income earner will be exposed to the financial world. Where your money is concerned, you can no longer avoid dealing with banks or financial institutions. It’s going to be a way of life for years to come. Organizing your financial records is as important as earning your keep. It will also serve as a reference when you apply for loans and other credit facilities in the very near future.

 

Financial freedom does not mean reckless spending. Learn about personal finance at the early stage of your young professional life. Seek advice from experts in personal finance and wealth building if you cannot do it on your own.

 

 

5 Practical Tips To Handle Your Student Loans And Pay Off Your Debt Fast

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Financing your education is one of the most critical aspects in your life, and should be planned and executed carefully. The most challenging part of it all is when you have to handle your student loans responsibly in order to pay off your debt fast. Check out these five practical tips to handle it successfully:1

  1. Save as much as you can during your grace period Students who have recently graduated normally have a few months from the time they graduated to start paying off their student loans. Instead of doing nothing during this grace period, start saving money as much as you can so you’ll be able to pay off your debt fast and without any problem. It’s even better if you can afford to pay a lump sum, as you stand a chance to get 10% off of your student loan debt. Avoid unnecessary spending during this time.2
  2. Understand how your loan works Each student loan from the government or private institutions comes with different terms and payment plans. Understand how your loan works by familiarizing yourself with all the details that need to be known. Next, you need to familiarize yourself with all the payment options. If you’re lucky to get a job right after graduation, you may opt for an income-based repayment plan. Otherwise, you can request a temporary deferment until you found a job.3
  3. Pick the best payment plan The typical option chosen by most people is the income-based repayment plan. This is one of the best repayment plans and is highly recommended since you’ll be able to easily manage your monthly repayment based on your current income. Additionally, you should also find out if your loans can be converted into a scholarship. Some education loans offered by the government or private institutions have a program where you can convert your loans into a scholarship if you meet their requirements.4
  4. Keep living frugally Keep your habit of living frugally even after you graduated and while working on a full-time job. While it feels good to have a career and become an adult, you also have to deal with the reality of paying off your debt and working on it. You can keep sharing expenses and rent with your housemates; carpooling, walking, biking or taking public transportation if you need to get around; and cut unnecessary expenses whenever possible. That said, it’s also good to spend more on healthy foods instead of living on a diet of canned tuna and Maggi.5
  5. Get a part-time job or freelance For the purpose of paying off your student loans, it never hurts to get a part-time job or freelance every now and then whenever possible, even if you’re working full-time. Take advantage of the many apps that allow you to earn side income, like being an Uber driver or renting out your room on Airbnb.

These tips will come in handy even if you’re just about to start your college education. If you’re considering financing your education, you can apply for an education loan online for convenience. Bear these tips in mind to help you manage your education loans when the time comes. By paying them off as soon as you can, you get to enjoy a debt- and stress-free life and avoid struggling from paycheck to paycheck like most of your peers.