2 Incredibly Simple Tips to Manage Your Money to Grow More Wealth

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The Malaysian economy is a highly sophisticated and developed one. It has become a well-oiled machine and one that fully embraces the free market system. It is a center for consumerism, entrepreneurship, and free enterprise.

As a result, its economy has exploded in both value and quantity. This means that the value of the Malaysian economy as a whole has increased tremendously – both figuratively and literally.

With the rise of the Malaysian economy, the value of the Ringgit is higher than before. It’s an exciting time to live in Malaysia. However, learning how to save and invest wisely becomes increasingly important, especially if you want to grow your wealth. Here are two incredibly simple tips that will help you make wiser financial decisions in the future to build wealth.1

  1. Set up a personal budget

This is one of the simplest and most common methods of wealth building that you can do. But it’s one of the most effective methods out there. Setting up a means of tracking your income, expenses, and transactions will go a long way towards managing your money. Here are some benefits of creating a monthly budgeting system:

– When you track every single cent you spend (or rather, Ringgit) you’ll see exactly where exactly your money goes. Sometimes, we make unnecessary purchases out of habits. Or, many times you’re simply not aware of how much you really can afford for an item – even a needed one. Cut off or reduce spending on things that you don’t really need. Or simply save those funds and accrue more income over time by reducing your expenses.

– By simply becoming aware of your financial situation, or having a ‘birds-eye view’ of the overall picture, you get much more information about what’s happening in your financial life. This information gives you the power to control and change your financial situation to your desires. And such an approach can save you a lot of money in the long run.

  1. Manage and pay off debt

Debt is something everyone faces at least once in a lifetime. But how you learn to handle debt is what decides whether you grow your wealth, or allow it to plummet. As debt is an inherent drain on your financial resources, it’s imperative to organize effective strategies to eliminate or reduce any outstanding debt.

It is advisable to cuff off any recurring debt you do not absolutely need. And whatever source of debt you cannot eliminate, you mitigate. What you don’t pay when due will accumulate, and become a bigger source of debt before you know it. So make payments on time.

The best strategy to achieve this is by setting up an automatic monthly payment for your recurring debts. Set a date that’s right after your salary arrives. Also, make a resolution to not splurge on things you want to have before paying your debts.

Doing this also helps to keep your credit score high, which in turn reduces the interest rates on any open lines of bank credit. This will maintain the interest rates on your credit cards or loans as little as possible, so you’ll spend much less on what you can’t avoid.2

Conclusion

If you’re serious about building wealth and saving money, it’s important to control your finances. Learning to budget said money, and appropriately handle debt are the two most sensible and effective strategies to accomplish this goal. If you want to grow growth in ways you can’t imagine before, consider contacting an expert in wealth management in Malaysia.

Travel in Style with the Best Travel Credit Cards in Malaysia 2017

Traveling abroad is truly fun and exciting but at the same time, expensive. If you are wondering how other travelers can pay for their trips around the globe without stretching their wallets, the secret lies in their banks. These days, credit cards can be the answer to your lifelong dream of visiting exotic places and staying there for a time. Travelling might be synonymous to expenses, but in 2017, all you need is your OCBC KLIA premium lounge credit card.

How to Reach Your Travel Destination Using Only Your Credit Card
The most practical way to travel is using your Klia premium lounge credit cardIf you want to travel without spending too much, the most practical way to do so is by using your credit card. Most people think that you need a huge amount of money to bring you travel plans to life. This way of thinking is wrong.

Here’s how you can reach your travel destination without spending a lot of cash:

  1. Use your credit card more often. Every time that you use your credit card for financial transactions, you earn reward points and other special privileges. There are credit card companies that offer plane tickets to a certain country when you earn a sum of reward points. This is definitely a good way to ease your financial burden when planning overseas travel.
  2. Pay your bills on time to earn high credit score. Not paying your credit card bills will surely give you a low credit score. This means that you will not be prioritized whenever there are great offers such as free air mile points, hotel discounts, and other special promos. If you want to travel abroad, you need these in your checklist to reduce the stress in your wallet.

Other advantages that you can get is priority boarding, free internet access, 24/7 concierge, and free travel insurance. You can get all the treatment as mentioned above by using your OCBC World MasterCard for paying for your travels. You should remember, however, that you must be 21 years old and above to be qualified for this credit card.OCBC KLIA premium lounge credit card paying for your travel

You don’t have to deny yourself the pleasure of experiencing the thrills of adventure just because you don’t have enough cash in your pocket right now. But, you also need to manage your spending so that you won’t find yourself buried in a massive debt after your travels. Managing your daily spending requirements is the key to earning reward points without going over your credit limit. This way, you will be able to enjoy your travels without worrying about paying the debt that you incurred just to get the reward points that you need.

4 Financial Plans You Can Utilize To Secure Your Family’s Financial Future

Just like everybody else out there, you are probably worrying about the financial security of your family in the foreseeable future. What if you get sick? What if you lose your job? Will there be enough funds to ensure that your children will get the education they deserve? These are just a few of the questions that you may be asking yourself. The good news is that with proper planning, you can secure your family’s financial future. You can do this by coming up with some financial roadmap that will guide you on how you are going to manage your finances.

It’s a matter of putting your money in good funds and investments. There are banks in Malaysia that offer all sorts of plans that cater to families. Below are some of the most important accounts you should have if you want to protect your family’s financial stability:

 

  1. Savings Account

If you have children, it is of utmost importance that you set up a savings account. The majority of your earnings will go to the expenses of caring for them and providing their needs until they are of the right age to get a job on their own. Saving money will ensure that you don’t live from paycheck to paycheck.

 

  1. Educational Insurance for Your Kids

Education in Malaysia can be costly especially if you plan on sending your children to private schools and universities. With that said, you must set up educational insurance for them to help cushion the cost.

 

  1. Life Insurance

There are different types of life insurance plans that you can get. You might want to consider endowment plans since these have shorter maturities which means you or your beneficiaries will receive the benefits much earlier compare to other types of insurance plans.

 

  1. Investments in Reputable Banks

If you have cash and other monetary instruments to spare, you can invest them in investment products being offered by banks. For example, the OCBC Bank of Malaysia allows you to invest in their products that include unit trusts, dual currencies, equities, and bonds.

 

To ensure that you are putting your money in safe financial instruments and accounts, it’s advisable that you consult with a financial adviser. They will show you the pros and cons of every savings, insurance plan, or investment opportunity that you want to be involved in.

Mortgage Basics – 4 Quick Tips for Easy and Problem-Free Mortgage Management

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Saving for a home can take a lot of time, and that’s why people often look for other sources of funding to help finance a property. For many Malaysians, taking out a loan from a bank or any other lender is the best course of action to help ease the process of buying a house. But simply borrowing money won’t guarantee an easy purchase experience. There are lots of factors that can negatively affect your mortgage, so it’s best to find out what you need to know to help make payments easier. Find out how to manage your mortgage without a worry by reading through these 4 tips.1

  1. Automate Your Payments – A missed mortgage payment can become a big problem later on. Aside from the fact that monthly amortization will quickly pile up and grow to a hefty size if allowed to pass without timely payment, constantly missing out on your monthly dues will negatively affect your credit rating. To prevent the chances of missing your amortization schedule, automate payments and have the exact value debited from your account as soon as your salary funnels into your account.2
  2. Cover Your Mortgage – Lenders almost always incur a risk when they provide loans, because there’s never a guarantee that their clients will be able to make payments consistently for the term of the loan. To make it easier for your lender to provide you with a bigger loan amount, consider getting your mortgage covered. Mortgage insurance in Malaysia often comes bundled with the loan itself, with premiums divided across the length of the contract. This will compensate lenders for any losses incurred, making it easier for them to grant loans to borrowers of all backgrounds.3
  3. Calculate Your Loan Term – Many borrowers make the mistake of choosing a loan term based on how numbers look on paper. A shorter term may look more expensive upfront, but all together, you will be paying much less in terms of interest. Longer terms can seem easier on the pocket now, but add up all the payments you’ll have to make, and it will become apparent how a longer term could increase the loan amount by half. Consider how long you want your loan to be, and always opt for the shortest term you can afford.4
  4. Know Your Fall Back – There’s never any way to guarantee that you’ll be able to make mortgage payments ten or fifteen years into the future, and that’s why it’s important to understand what your fall back options are before you dive into a loan. Refinancing is a great way to refresh your loan after a financially damaging experience, like a divorce or a change of occupation. Basically, this allows you to clear out your original loan and refinance your property under a different lender. Of course, there are specifics, and a refinancing plan may not always be the cheapest, but it will keep you from losing your assets and prevent any damage to your credit score.

For a lot of people, mortgage payments prove to be among the most troubling expenses of adult life. But there are things you can do to help ease the process of meeting those amortization deadlines. Follow these 4 tips to manage your mortgage without a worry, and secure that property sooner rather than later.

Living the Wealthy Way – 6 Unique Millionaire Savings and Spending Habits to Adapt

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Across the world, Kuala Lumpur has the highest population of millionaires, with close to 14,000 of them in the city. These high net worth individuals routinely catch the attention of others around them, simply because of the way they dress and navigate their surroundings. That’s mainly because very few are able to achieve such a lofty level of financial security. For as much as we all want to have the same luxuries, the road to that kind of wealth is often hard to find, and even harder to trek. But by learning how millionaires save and spend, we can adapt the same practices and start our journey on the road less traveled. Learn the millionaire mentality on managing money, and make your way to massive savings by following these 6 methods.1

  1. Learn Smart Spending – When millionaires put out money, they don’t do it for things that won’t serve a purpose in the future. Unlike many of us who buy simple joys today that won’t cost very much tomorrow, millionaires think big, and only spend if they know what they’re buying can be liquidated for just as much or more later on. Think of your purchase before shelling out cash, and try to foresee whether you can make something out of it in the future.2
  2. Delay the Gratification – Hand to mouth existence is how many of us play the game. We earn today, spend today, and wait to earn again to spend again. It’s a vicious cycle. For millionaires, spending and buying is only done when savings goals are met. Learn how to delay gratification, and hold off purchases until you have enough to buy only the best in the market.3
  3. Know When to Ask – Millionaires don’t get that way on their own. Lots of those who fall in the high net worth category have experts giving them cues on when and how to manage their money. A true testament of the effectiveness of this strategy is the outcome in Kuala Lumpur. Wealth management in Malaysia is so exactly tailored, that many of the citizens enjoy secure financial lives. Know when to ask for advice, and don’t be afraid to do research and to learn about money to optimize your management.4
  4. Establish More Than One Source of Income – Millionaires understand that there is no such thing as an eternally stable market. Sometimes, profits for a certain business will reach a low point, and that’s just the way the economy works. To make sure profits are at a steady in-flow, high net worth individuals always choose to establish more than just one source of income. This serves as a safety net that will ensure sustainable profits, even if one market starts to dip.5
  5. Understand Investment Options – An investment idea might seem good on paper, but once you actually venture into it, you might find that it doesn’t actually give the best returns. That’s because there’s a lot that affects the success of an investment. Be sure to understand your options before engaging, so you can forecast performance and returns, to see if it’s worth the risk.6
  6. Make Sacrifices – To be able to set aside more for bigger, brighter things, it’s important that you learn how to make sacrifices today. Avoid overspending, or putting out for things that aren’t necessary. Keep setting money aside, spend time overseeing your sources of income, and soon your efforts will flourish.

Not everyone will be able to experience the millionaire lifestyle, but anyone can become a millionaire if they put the right practices into action. Fake it ‘til you make it to millionaire status, and follow these 6 millionaire money management strategies.

6 Practical Tips On How Young Malaysian Families Can Achieve Financial Freedom

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If you are in the process of settling down with your own family in Malaysia, it’s highly recommended that you begin paving the way towards your financial freedom early on. The earlier you start planning and managing your finances, the faster you will reach your financial goals. This is is even more important given the fact that the cost of living in the country is on an upswing. Furthermore, latest data from the Department of Statistics show that the mean monthly household income in the country is RM 6,141. If you are raising a family with kids, this amount is barely enough to cover all expenses with something left for savings.

It’s not enough to simply save an amount or a percentage of whatever you or your spouse are earning. You have to go beyond that. You should also be willing to take risks. To help you out in managing and growing your finances, here are some practical tips you can follow:six_steps

  1. Create a comprehensive financial plan and have it printed out for easy reference. The best way to start in creating this plan is to list down all the things you want to achieve within a specific period of time. For example, where do you want to see yourself after 5, 10, or 20 years? What age do you plan to retire? Are you thinking of starting a business? These are just a few of the things you can think about. After making the list, you then start creating a roadmap on how you can achieve the goals. It might be necessary to get the services of a professional financial planner to ensure that your roadmap is achievable.getty_rf_photo_of_woman_making_list
  2. List down all of your daily expenses then find ways on how to either cut or control them. Create a record book of all your expenses. At the end of the month, collate the records to see which expenses need to be cut or reduced. If food expenses are taking too much of your budget, then maybe it’s time to start packing lunches to work. If your transportation expenses are ballooning, maybe it’s time to bike to work. Each type of expense requires a different saving method so be creative.auto-insurance-policy
  3. Since you’re still young, you should only get insurance policies that you really need. A lot of young families avail themselves of too many insurance policies that end up draining their finances. You can avoid falling into this trap by setting your priorities right. Since you have a fairly young family, the most important insurance policies you need are health insurance for the entire family and educational insurance for the kids.loan
  4. Take a house loan if you’re planning to get a brand new home. Buying a house in cold cash can cause too much pressure for your new family. Getting a house loan is the perfect solution since it basically gives you a lot of time to pay for the property. Finding a loan with reasonable terms isn’t that hard since several banks in Malaysia offer house loans for low income families. For a start, you should check out the property loans being offered by the OCBC Bank.thimage
  5. Always set aside an amount from your income for investment purposes. Investing your money is one of the quickest ways to accumulate wealth. You can invest it in real estate properties, in business ventures, or in stocks. For example, you can set aside 5% to 10% of your income for a real estate fund which you will then invest in real estate properties for rent like apartments and condominiums.savings-account
  6. Open a saving account in a reputable bank. The general rule is that you should put 20% of your monthly net income into a savings account. If this rate is too high, you can reduce it to 15% or 10% or even 5% depending on your current financial situation. What’s important is that something is going to your savings. You should try the savings plans being offered by the OCBC Bank.

One of the keys to financial independence is perseverance. You need to stick to your financial roadmap and implement it to the smallest detail. To ensure that you are always on track, you should make it a point to review your plans at least twice a year and update them if you see any flaws.

How To Upgrade Your Credit Card To Platinum

If you own a classic or standard credit card, consider upgrading it to a more prestigious platinum card. There are strict requirements to be met when applying for a platinum card upgrade. You must have a stellar credit history and meet the minimum income requirement at the time of application.

The minimum Income amount requirement varies depending on issuing banks. Full-time employees might find it easier to apply, but you can still get a platinum card as a self-employed or a retired pensioner, provided you are able to show proof of regular income. Find out how you can upgrade your credit card to platinum:

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  • Identify the requirements, benefits and features of the card. The requirements, benefits and features of a card may vary depending on the issuing banks. Some of the extra benefits for platinum cardholders may include balance transfer deals, reward schemes which enable you to collect air miles or earn cash back upon making purchases, platinum dining programmes, travel benefits like zero foreign transaction fee, lower interest rates, added purchase protection, and higher credit limit. To unlock benefits like these, you also have to meet certain requirements that a classic or standard credit card don’t require. Get a card that best fits your situation. It’s better if your card comes with complimentary insurances. Find out more about platinum credit cards in Malaysia.istock_credit_card
  • Contact the credit card issuer. It may take time for the credit card issuer to grant you an upgraded card, as you have to prove to them that you are eligible and met all of their requirements. Contact them first to let them know of your plans to upgrade your credit card. Your credit card issuer will advise you on the next steps to follow.writing-application-form
  • Fill out an application form if necessary. Another way is to fill out an application form online, or go directly to the credit card issuer of your choice and submit the form in person. Applying in person could be better in case they need you to answer some questions and to seek clarifications regarding your financial situation for verification. Aside from meeting the requirements, you’ll also need to prove that you’re a responsible credit card owner with good credit history. This will further boost your chances of getting your application accepted. If one issuer rejects your application, you can try another credit card issuer with different application requirements.

If you upgrade with your current credit card issuer, there may be special discounts. While an upgraded credit card rewards you with many benefits and features, it also comes with several downsides, including higher annual fees. Do a little research online to see what additional costs that come with a card of your choosing.

Before you start making the applications, make sure that you have no bad credit history, outstanding debts, and other things that may decrease your chances of getting your application accepted. In addition, ask yourself whether upgrading your current card to a platinum one is all worth it. Be careful with certain deals that could trap you financially, and be wary of blowing your budget. Having a platinum credit card with higher credit limit may encourage you to spend more than you intend to.

Foreign Exchange Trends: Will The Dollar Drop Post-US Election?

With the US presidential election quickly approaching, many in the financial and banking industries try to gauge its potential impact to the country’s currency. The big question is: will the dollar drop in value or will it be stronger, when a new leader is installed at the White House? There is no clear answer but there’s one thing that financial experts agree on. And that is the dollar is expected to fluctuate during and after the election. With that said, people who plan on investing in foreign currencies need to be aware of this expected fluctuation so that they can make informed decisions as well as minimize their investment risks.

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A Lesson From The Previous Elections 

You can learn a lot from what happened to the dollar during the last two elections. In the aftermath of the 2012 elections, the dollar actually weakened and it took some time for it to recover. However, this was not the case during the 2008 elections where the dollar rose in value when Barack Obama was first elected into office. From these two examples, we can safely make the conclusion that anything can happen in the upcoming polls when Americans get to choose between Hillary Clinton and Donald Trump.

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What To Do If You Want To Invest In Foreign Currency 

As we mentioned earlier, there’s no way to accurately determine what would happen to the dollar after the polls. You should always keep this in mind especially if you are going to put some of your money into foreign currencies either now or in the coming months. It’s highly advisable that you choose a foreign currency fixed deposit account. Since this account is longer in duration, it won’t be subjected to a lot of risk. When the account matures, it’s likely that the dollar has already stabilized and freed itself from the fluctuations caused by the election. If you are still not sure if now is the right time to invest in foreign currency, it’s recommended that you consult with a knowledgeable financial expert.

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The Monetary Policies Of The Democratic And Republican Parties 

The financial policies of the two political parties are also major factors on whether the dollar will drop or rise in value post-election. Of course, both parties want a stronger dollar. However, their proposed means of achieving that differ. As an investor, you need to look into their policies and make your investment decisions based on these policies. Basically, the Republican party proposes national debt reduction and job creation through the private sector. On the other hand, the Democratic party proposes increased government spending and job creation centered on the public sector. What you need to do is base your investment decisions on the policies of the party that is leading in the surveys. As of this time, Hillary Clinton of the Democratic party is the favorite to win the polls.

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A Piece Of Advice For Foreign Currency Investors 

You should put your money in a fixed deposit account that has a longer duration. The longer the maturity date, the better. The idea behind this technique is that you will minimize the risks associated with fluctuations during and after the election. The dollar has always recovered and stabilized as the dusts of the election settled. On maturity date, your account should be back to normal as far as value and interest earnings are concerned.

How To Financially Protect Yourself And The Whole Family

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Regardless of economic situation, there’s never a better time for you to start protecting yourself and your family financially. No matter how good or bad the economy will turn out to be, you’ll still need to get up and make a living each day. In this case, you might as well take proactive measures to financially protect yourself and your family in case things get worse. These are the five measures you can take to start protecting yourself and your family financially:

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1. Determine needs and wants Most of the time, you might be better off without the things you want. If it’s something that doesn’t yield long-term benefits (especially for your personal finance), avoid it at all cost. This means consumer debts are a huge no, as they will drag you down financially. When deciding to make a purchase, make sure it’s something you truly need and could benefit you in the long run, and not simply what you want.0003

2. Define what financial security means to you and get expert advice Financial security could mean different things to different people, and that includes you. Start by imagining the worst case scenario: what if you or your spouse (who’s the primary breadwinner) died suddenly? The first thing you’d want is for your loved ones to do well and not be out on the streets. Once you figured them all out, start making plans with a financial adviser.feat-memberschoice

3.Get yourself and your family insured There are many different kinds of insurance that you can buy for yourself and your family. Naturally those who buy insurance has a mission of protecting themselves (and their loved ones) from disasters, so choose your insurance wisely. There are four major kinds of insurance that you can consider buying, including life insurance (for breadwinners with dependants), health insurance (for everyone in case health problems arise), homeowner’s insurance (for home owners with families), and auto insurance (which is useful in the case of road accidents). Find out more on endowment insurance in Malaysia, including OCBC Bank’s MaxGrowth Enhanced.maxresdefault-1-1080x675

4. Eliminate debt  Contrary to popular belief, debt elimination isn’t as tricky as it appears to be. To avoid from getting into financial ruin, eliminate outstanding debt as soon as you can. Start by drafting a plan to tackle each debt, and set a time and budget to achieve your goal of paying off each debt. Financial protection, accumulation and distribution will be made easier once you’ve managed to eliminate some or all of your debt.2-how-much

5. As a rule of thumb, every family should go through these three financial stages: protection, accumulation, and distribution. It’s risky to accumulate and distribute wealth when you haven’t gone through the first and most important part of money management stage, which is protection. Getting through a tough economy shouldn’t be a hurdle if you had prepared and planned carefully and wisely. Make financial protection a priority for the sake of your family and yourself.

Increase emergency fund Start one now if you don’t have an emergency fund. For those who already have one, you need to increase the amount. Your starter emergency fund must have at least RM4, 000 to RM8,000 in it. A sufficiently funded emergency fund should allow you to live safely for three to six months in case bad things happen (i.e. job loss, bad economy, disaster).

Current Account Tips/Guides/Advice Don’t Go Broke! These Four Tips Will Keep Your Account Current in the New Year!

Have you recently graduated from college and you’re learning how to take on your own finances responsibly? Are you a small business owner who is managing several different accounts to keep your enterprise going strong? Do you work for the accounting department of a large corporation with global clients? If you answered “yes” to any of these questions, then you may be looking for ways to keep your accounts current. Being able to keep your account current over time is one of the very best things you can do for your credit. Follow our guide of four simple tips you can deploy for a current account in the New Year.

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Tip #1: Prepare Ahead

Keeping an account current is all about knowing when to pay. Set your pay date a few days ahead of your due date, if you’re able. Also, remember that sometimes you’re not actually late if you pay past the due date. This depends on different companies. But in the case of mortgage and rent payments, for example, you usually have a grace period.

payment with current accountTip #2: Know the Details of the “Minimum Payment”

Some companies require you to pay a minimum payment each month. If you pay over that amount, you are not credited for the next month. You still have to pay the minimum payment the next month to avoid a late fee. Don’t make this mistake. Know the fine print and what a minimum payment really means.

Tip #3: Budget, Budget, Budgetsave budget in current account

At the end of the day, you need a really great budget and you need to stick to it in order to keep your accounts current. Try to pay a little over each month on the accounts carrying the highest interest rates. This saves you money in paid interest over time rather than trying to pay down your debts equally. Try to put your credit card up until you are debt-free. Nothing says budget like learning to use the cash you have.

 

Tip #4: Account for Delays

When you are transferring money to keep an account current, you need to account for delays. This can happen as you transfer money from one bank to another. There also can be delays in maintaining a foreign current account, as the money may not be reflected on your account for several days. Know these delays ahead of time so you can prepare accordingly and get your payment in on time.

All it takes is a little management and attention to detail, you’ll be on your way to paying your bills on time and keeping all of your accounts current. It takes some practice — especially if you’re just starting out or if you are managing hundreds of accounts at one time — but with practice and organization, you’ll be able to stay on top of it. Keep our four top tips in mind as you move forward!