Monday, January 16, 2006

Mind on the Money, and Money on my Mind

"Look what I found!!!"

Yesterday, while I ran on the treadmill, one my friend’s comment rang in my head: “Muddy, saving is for losers.”

What? You don’t save up for rainy days?

“I am not saying you should not,” my friend told me, while he sipped Alexis Hot Chocolate. “What I am trying to say is you should be investing instead. In order to be wealthy, you must try to make your RM1 into RM100.”

When it was already 10 minutes on the treadmill, I realized that I have been struggling, like a fish caught in a net, with my finances. Every month, I immediately clear my fixed costs, and try to at least save 10 percent of my salary. This is because them damn financial magazines, and I think even an FHM article, told me so. In order to be financially free and be richer, you need to clear off all debts and save up! But, alas, this is an obstacle too great for me. That 10 percent of my salary is always used up for other reasons e.g. birthday gifts, sneakers, dinners, CDs etc. etc. etc. And every month, I find myself broke like an unwanted mangkuk.

So, how do I get out of this hands-to-mouth cycle? How do I change RM1 into RM100? And while we are at it, how the hell do I turn water into wine???

Perhaps this is what differentiates the normal people and the extreme rich. The wealthy know exactly how. And obviously, they don’t tell you how they do it, except dispense questions for you to ponder. But all I do know is that, after 20 minutes running on the treadmill, I will find some way to unravel this hocus pocus. Because, damn it, I want to be wealthy too!


Anonymous Anonymous said...

there's the share market which is damn slow for ages but if u play safe and buy the cheap shares ur money can double once in a blue moon =)

5:42 PM  
Blogger sumpit said...

great! figure it out then share it with the rest of us...don't keep it to yourself like the wealthy do..

7:03 PM  
Blogger Desparil said...

all this while i thought saving up the way to go. or at least the way to start. have you read azizi ali's book? he advocates investing in property. that definitely needs cash, right?

8:23 PM  
Blogger The Yoga Instructor said...

Like an unwanted mangkuk. How cute.

When you do know how, don't forget to let us minions know how do you do it and also, don't forget to buy us a big dinner ya?

8:44 PM  
Blogger kristakish said...

hi... after you find out all the hocus focus, let me know! i wanna be rich too!

11:45 PM  
Blogger Vlad said...

If you find out how to change water into wine. I will worship you and then proceed to change on my MyKad religion status.

It's good to have something besides N/A.

1:21 AM  
Blogger A Babe Of Very Little Brain said...

there's the savings plan. and the various amanah saham. dump a little bit here and there and before you know it .. amboi banyaknya.

1:23 AM  
Blogger the kimster said...

Treat the 10% as your fixed cost and you'll be OK. The most straightfwd vehicle is ASB, but of course the discipline has to be there la sebab senang nak withdraw. Hahahah

1:47 AM  
Blogger mangolisa said...

most of the time, it is right in under your nose and you just can't see it ;-)

7:32 AM  
Blogger terabot said...

i think azizi ali's and that internet millionnaire irfan khairi's book shud be a very good guidance..and why not that kiyosaki book..hehe..reading is not enough do those things written are the most crucial part...

3:59 PM  
Blogger KaiserSoze said...

Aim to have more than 10% of salary for investment-say around 20%. If you're lucky (coz most of the time it's fully taken up), allocate about 10% of your salary into bank rakyat (buggers being giving out out yearly dividends of 15-17%: say 20k p.a saved would give you 3400). Alternatively, there's ASB, with dividend around 10-12%, (which is not bad at all, but bank rakyat is better). Once you have enough, continue with the bank rakyat/asb thingy but use the remaining 10% to buy high dividend stocks. Start slowly like buying 100 shares but continously do so. Some dividend stocks can give up to 20 plus % you know (note: these however can be quite pricey-re:nestle, BAT etc)

4:00 PM  
Blogger Desparil said...


that bank rakyat thingy.. it's a certain account, right? not all accounts give that kind of returns. do you know the name?

5:08 PM  
Blogger muffin-top said...

My family does money market, noot bad la..but in making money uve got to have "some" money..u'll manage =)

geishaa??? can can, but im only free on sunday, can ah?

12:16 AM  
Blogger [Is]landa said...

you are one mangkuk that will never be unwanted, darling :)

1:10 AM  
Blogger 9 said...

the CFA bloke has spoken. we stand enlightened, oh great one! :p

invest, invest, invest... and don't bloody touch it!

1:47 AM  
Blogger Muddy said...

anonymous :

i thought about the share market. a friend of mine told me some pointers about which shares to go for, as the returns are quite good (e.g. he got 30% return recently on just one stock!). but the problem though is that i don't know anything about shares. kind of blank at the moment, so until i do some research, perhaps i might play...

sumpit :

hahaha...the thing is, the only way for any of us to be wealthy is to do our own business. but at the moment, i love my desk job so i was thinking, perhaps i should do a small business on the side (which requires not alot of initial capital outlay...)

have several ideas listed down. just that perhaps, i should develop a business plan now...

desparil :

oh wow, haven't read azizi ali's book yet, but will do! (mental note: buy that book when at MPH). i also thought about buying property recently. according to a friend, this is the right time to purchase small apartments. but according to some friends, the key thing with buying property is to rent it out...

the only problem is that my family had several historical headaches with renting out. my parents have several houses which they rented out (to locals and foreigners), and about 80% totally ruin the houses. the cost of recovery is sometimes huge, so now, my parents don't rent out anymore.

but still, that condominium around the kota damansara area really does look good...hehehe...

4:33 PM  
Blogger Myopia said...

desparil is right. azizi ali encourages real estate investment. maybe you ought to look into buying apartments and renting it out, those in the ikea damansara area are in very high demand. you could make an extra MYR 200-300 a month. but of course, the downpayment is there and it might blow the wind out of your stomach initially. i second kimster and kaisersoze-bank rakyat, asb & tabung haji offer highest dividends. but then again kaisersoze, my mom was telling me to get the 15-17% b.rakyat dividend we must buy their shares or something, right?

4:35 PM  
Blogger Muddy said...

the yoga instructor :

hahahah dinner? kekeke...terus kenduri lah babe. but with western food e.g. lasagna, pizza etc ok? ;P

kristakish :

hey you! long time no hear or see! how's things at your company? (you know, everytime i come across your business card and look at your company's name, i ALWAYS think of something else...kekekeke) ;P

vlad :

hahahah...that line was actually inspired from this book i am currently reading: "sophie's world". in one of the chapters, the characters in the book discussed the philosophy behind the notion of turning water into wine. very interesting read...kekeke...

oh wow, talking about MyKad, i have no idea when they are going to call me to get it. they said two weeks after i registered...i swear it has been more than two weeks. so damn typical. kekeke...

4:39 PM  
Blogger Muddy said...

babe :

hahahahah..."amboi banyaknya." kekeke...can't stop laughing at that remark! very makcik mah! ;P you know what, i just recently knew what's the hoopla behind amanah saham. (hehehe...slow sikit here). the returns are really good (although the bank rakyat scheme kaiser mentioned is WAY better though). prolly open up an account this week...

hehehe...and hopefully, amboiiii banyaknya. ;P

the kimster :

you know pal, that's a mindset change for me. i keep on thinking about that 10 percent as savings, and not a cost. the difference here is that with savings, you can use it but with costs, it's gone. brilliant! that will keep my itchy fingers from withdrawing! kekeke...

mangolisa :

hahahah...all i can see right under my nose is my upper lip. kekeke...;P

but yeah, perhaps its there already. the solution. perhaps i should see it more simpler...hmmm....

4:48 PM  
Blogger Muddy said...

terabot :

wow, thanks for recommending all those books. got a point there. there's no point in dwelling and planning, when implementation is the key thing here...

kaisersoze :

wow, your sound advice really got me thinking! yeah, i recently called my friend who works at bank rakyat and he said that the scheme is currently closed (due to over popularity). he himself as a staff is on the waiting list! but he notioned that they will open up the scheme to the public once again in mid-year. can't wait!

i was thinking about investing in shares, but am not too comfortable since i know jack do do on the share market. is it then best to work with a remiser then?

muffin top :

hey, i got no plans on sunday. sunday sounds good. ok, let's sound the horn and highlight this to your neighbors (actually, a specific neighbor also known as Silent. ;P)

4:55 PM  
Blogger Muddy said...

ylanda :

that's the nicest thing anyone could say to me. ;) thanks babe.

9 :

hahahah...yeah, ain't touching it man. ain't touching it! (credit cards AND savings...hehehe).

myopia :

thanks for the advice man. hmmm...and good point about the downpayment. i recenlty asked my friend who's in realty to give some prices of the places in kota damansara area. prolly get it in the evening...and extra RM300? that's quite good actually. that's an extra RM3600 per year!

5:04 PM  
Blogger Desparil said...

azizi ali also has a book on how to be a millionare landlord (in addition to the first book how to be a millionare). maybe you can get that too when you're at mph.

for property, it's not just rent but also appreciation. the best is the rent more than cover the monthly instalment while the price keeps going up every year. double the pleasure, double the fun.

11:39 PM  
Blogger Lin said...

Wow... looks like u got some good advice here! The beauty of blogging eh.

I wanna share my 2 cents too.

Start calculating your net worth. Then u r able to realise where ur money is going and what to invest in. Also, u will become more careful with your spending. This blogger writes about it.

I really don't quite advice buying small apartments at Kota Damansara area just yet. It is getting too saturated. Everyone is investing there to rent out, as a result, there are more apartments for rent than there are ppl to rent. Also, because they can't get ppl to rent, workers from Ikea and kedai mamak working nearby are renting there!
Not to mention the parking problem that they are facing at the moment, ppl are parking all over the roadside. So thats a potential put off. Recently Flora Damansara has just handed over their keys to owners, so there are over 1000 units out now for potential rent.

I think KL will fetch a better rent.

12:39 AM  
Blogger MarinaDelRey said...

*sigh*..i'm horrid with 2 many hutang-piutangs to pay..n practically no investments n a meagre amount of savings...n when i do have money i like to 'treat' myself..argghh... my sister reads Azizi Ali though, (like a true worshipper!).. n slowly, but surely..she's gettin' smart with her money..go check it out dude! :-)

6:44 AM  
Blogger SamuraiSepeda said...

i say scrap it. if sometime in ur life u try and do get rich, fine. but everything else first i say. money is overrated eh. get happy first, thats the bigger picture.

which usually involves girls and women (or more than one woman!) that's a mystery

12:44 AM  
Blogger shobshob said...

damn... my financial planning is so teruk! sometimes (actually most of the time) i ended up using my savings because run out of monthly budget.

i think for the first year, i wanna establish savings for emergencies and try my best not to use it. the second year probably i can start doing investments like buying a property or ASB...

hurm i hope this plan will work..

8:13 AM  
Blogger Muddy said...

desparil :

wow, good point there. i have friends who tell me this is the right time to buy property, but will do my own research first...

lin :

you know what, you're right! i recently surveyed the apartments that are being sold off around that area. most of them are quite nice, but i realised that most are not well planned e.g. the massive outside parking at Pelangi apartments. There were some nice townhouses deeper in Kota Damansara but they fetch around RM300k++. I can't afford that just yet, so perhaps I should be saving first...hehehe...

marinadelray :

wow, so many people have recommended me that book! will go check it out. my friend is willing to lend me the book so will tell you my viewpoints on it once i finished reading...:)

4:47 PM  
Blogger Muddy said...

samurai :

hahahhaha!!! you know bro, i am pretty much happy with my life. the only thing is that my financial could be better since I see red at the end of the month. That frustrates me. For this reason, I made up my mind to do something about it. Wish me luck!

shobshob :

wei orang trganu!!! pass me the azizi book when you are in KL!!! hehehe...:)

4:51 PM  
Anonymous Anonymous said...

those LINES sound very familiar.. i bett i know ur fren too hahahha he n his BUSINESS mind..yet in some kind of ways i have 2agree coz he did proove it so ayte?

7:39 PM  
Blogger Muddy said...

anon :

hahaha yeap yeap. btw, the same guy we are talking about is currently contemplating to join my gym. wah not only rich mah, tapi nak jaga badan. fuhlamak, cayalah! kekeke...;P

8:33 PM  

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