Put your finances on a diet

January 30, 2014

Here are some simple steps to get you started.

 

By Michelle Brohier
Everyone has gone through a diet once in their lives. Be it through specifically cutting out a particular food group in their meals; counting calories with every meal that you eat; hitting the gym or even using special tonics or even shakes; we’ve all done one thing in our lives to take control of our weight and our health.

Just as your body need a special diet, your finances could use the same as well every so often. If you’re aiming to keep your finances healthy, and are constantly finding yourself with bulging bills; a financial diet could be the answer. Not too sure how? Here are some simple steps to get you started.

Set your goal
If you aim to lose weight, you will need to figure out how much you need to lose or if you’re merely aiming to get generally fit. The same thing could be said with your finances. What is your goal? Are you hoping to settle your debt: Start saving for retirement: Or even a holiday trip for you and your family? Figure out the amount you may need and set that as your goal.

Get with the plan
Now that you know how much weight you want to lose, you will then figure out ways on how to do it. This includes whether you want to eat only certain kinds of meals, cut out a certain type of food or even start exercising. With your finances, you will also need to come up with a similar plan. You can do this by creating a budget, cutting out certain expenses, or even using auto transfers to ensure your money goes straight to a special saving account or even to the payments you need to make.

Use the right tools
Much like going to the gym, using special diets or healthy juices to help you with your diet progress, you can find the right tools to help you with your finances as well. Use a debit card instead for necessary larger payments; get a standing instruction set up to pay off some of your bills; or even save your money in a special savings account that gives you good interest rates.

Read between the lines
Just like reading the labels on the foods, juices or even the contract for your gym membership, you need to make sure that what you’re using will help you achieve your goals. Understand the tools that you are using, make sure that they will give you the best benefits for your finances and you can manage them well enough. You wouldn’t want to mess with your health and body, and you should take the same precautions with your finances.



Keep a log
You track down what you eat and calculate the amount of calories you may have ingested, so why not do the same with your finances? Take note of where your money is going, the payments you’re making and the amount you’re saving and make sure that the actual numbers tally up to your expectations. It is said that when you see how much you spend; you will be more inclined to cut down.

Reward yourself
So you’ve hit your goal, or at least one part of it. Just like indulging in a big slice of cake or even a bite on your favourite pizza, it’s all right to spend on something that you want once in a while. Just remember to keep it in control, for over indulging could lead to you ruining the goals you’ve worked so hard on to begin with!

No one really enjoys dieting but we put ourselves through it anyways in hopes to make ourselves better. In the same way, you could do the same for your own finances. It may be tough initially, but you know it will be worth it in the end. So build up your motivation and give your finances the diet it needs.

This was brought you by Michelle Brohier from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Stop living paycheck to paycheck

January 27, 2014

There is actually nothing like the feeling of knowing you always have some money to turn to in your savings.

By Michelle Brohier
Johan lives with his parents and earns about RM2,200 monthly, a raise from his past salary of RM1,800, but he has been struggling to get out of the cycle of living a hand-to-mouth existence.

His necessities include his motorbike loan, phone bill, laptop installment, internet broadband service and food.

The remainder of his money is spent on emergencies like repairing his motorbike after an accident, and on his girlfriend of which he is in a long distance relationship with and travels to see as much as he can.

While this is a scenario many who earn around Johan’s salary can relate to as they struggle to get by with such an amount, there are those who earn more and go through the same issue.

Anish earns about RM8,000; double from the amount he earned before, and his necessities include paying for the house and the car that he bought.

While this does take up a RM3000, this still leaves over RM4500 in remainder money to use and save. But after spending it on movies, hanging out with friends and other forms of entertainment, Anish barely has enough to get by till the next payday.

Middle income earners are not exempt either.

 Annabelle earns RM4500; RM1000 more than her salary the year before and is also guilty of living paycheck to paycheck.

 “I don’t shop but after paying almost RM2000 for rent and RM300 for utilities; I use the remainder for nice meals and my ultimate indulgence: expensive books.

 I pay more for rent because I insisted on having a fully furnished unit in a nice part of town because those things are important to me.”

Annabelle admits that at the end of every month; she has less than RM200 in her account.

Be it out of a lifestyle choice or out of necessity, there are many Malaysians who live paycheck to paycheck, with some even living beyond that.

While they work hard to earn more than before, they find themselves still depending on the entire amount they get from their monthly salary.

For some reason, their salary and expenses seem to rise together although their circumstances seldom differ.

A matter of choice“It is true I could have saved more money if I wasn’t in a long distance relationship,” said Johan.

“But even then, I probably could have used the extra money to buy a better motorbike, like a Ducati.

Either way, I would have found some way to spend the money that I have.”

The reality is that people with this propensity will always find a way to spend the money that they earn, even if they’re earning more than previously.

The extra money opens up possibilities to gain items or experiences that were previously not available to them.

“I could live in a smaller unit or eat out less but I always think; I work so hard for my money, why can’t I enjoy it?” Annabelle admits.

But the problem happens when a major calamity crops up and the person finds they are unable to cope.

An empty savings account can mean a lot more problems than many realise.

Whilst it’s always nice to have a treat every so often, it’s important to temper this with moderation.

In most situations, the paycheck to paycheck phenomena is a matter of choice, and thus actually a lot more controllable than people realise.

Here are some tips to avoid the dreaded hand-to-mouth experience:
1. Budget realistically. If you aren’t used to saving your salary; start small to build confidence.

There’s no sense in drawing up a budget with zero entertainment spending and sudden RM1000 savings because such a sudden saving requirement will set you up to fail.

Failing from the outset will make sure you are demotivated enough to give up.

Don’t fall into the trap. Start with small savings and do budget for leisure.

The successes (and the growing bank account!) will encourage you to save more.

2. Automate savings. It’s harder to slack off on saving when you don’t even see the money leaving your bank account.

Have an automated saving deduction set up with your bank.

3. Rethink rewards. Many people spend more when they earn more because it fulfils the ‘reward’ criteria.

Higher salaries generally mean more work and responsibility so this spurs them to believe they deserve more rewards and gratification.

 Try looking at your savings as a reward for your hard work.

Although you definitely deserve a treat once in a while; you deserve the security and peace of mind of a cushy savings balance a lot more.

You can get out of this cycle and live a more comfortable and fulfilled life with just a little adjustments.

There is actually nothing like the feeling of knowing you always have some money to turn to in your savings.

Good luck!

This was brought you by Michelle Brohier from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Get the most value from deal sites

January 24, 2014

Here are some tell-tale signs to look out for to see if you’re really getting a deal or simply paying for a hard time.

By Diana Chai

Everyone’s heard of dealsites and it is common knowledge that many a times you can scroe really good bargains on items and experiences in major cities around the world.
 
But what many are soon realising is that with any big idea, there will be those sneaky deals that are looking to cash in on the hype but aren’t really deals at all.

Deal sites take a huge chunk off the purchase price of a deal as their fee (anywhere between 30-50%), so for a merchant to even cover his cost; he’s going to have to do some serious quality downgrading (remember, deal prices are already heavily discounted!).

Think about it; say you purchased a hair colouring package at RM70; a 70% discount off its usual price. Out of this RM70; say 40% is handed over to the deal site. This leaves RM42 for the salon to pay wages, cover overheads and pay for the dye. That’s not a lot is it? So what is the salon to do to honour the deal coupons they’ve sold? They could swap quality hair products for cheaper, less healthy options; they could use one batch of dye for many people; or they could make it so stinking difficult for you to get an appointment (think massive blackout dates and constant “We’re full,” replies) that you forfeit your voucher.

The last one is really messed up, but it actually happened to me. The merchant told me I could get a refund from the deal company because I couldn’t get an appointment date within the stipulated period. Of course, can you guess what happened? The deal site said they couldn’t help and I lost my money.

But not all deals are duds and not all deal sites are as unhelpful. Here are some tell-tale signs to look out for to see if you’re really getting a deal or simply paying for a hard time.

1. There are way too many conditions. If many of these conditions include black-out dates and specified timings for redemption; watch out. Making a deal super difficult to redeem is one way to discourage people from buying a deal yet get marketing leverage off a deal site (which is the reason merchants are on deal sites anyway). But not all such deals are bad – sometimes to get a cheap price; one must jump through a few hoops. Just know what you are buying into. Make your bookings super early and of course; be sure you can make it be rescheduling will likely be extremely hard.
2. Item/meal is not in the usual menu/store collection. Ever bought a deal for a meal or an item from a restaurant or store you usually frequent that has never been on its line-up before? Sometimes, restaurants and stores create deal specific items or dishes just for coupon redemption. The problem is; when an item or dish is created for a deal; it’s often made cheaply as possible. For restaurants, portions can be half that of what you get for full price. Unless you are okay with such quality – you’re better off passing on this one.
3. Hotel stays in general. Hotel stays in general are iffy because the discounts you see are taken off the rack rate which, through much experience I’ve realised, is never what you pay even when you book with the hotel directly. Hotel booking sites are the same. They claim they offer you massive discounts but the rack rates are sometimes ridiculously inflated. When we did research on hotel booking sites versus direct hotel booking, we found that prices were either the same as or it turned out to actually be cheaper to book directly with the hotel! This is because hotels, like many deal merchants have realised they can offer a lower price directly to customers, benefit from the volume and not have to pay a middle-man deal site. So the advice? If you see a hotel deal, check the hotel site and other booking sites before getting starry-eyed over the percentage discounts! That is not to say it’s impossible to find a good hotel deal – you just have to do a little homework.

Get the most out of deal-buying

• So you’ve done the legwork and purchased a deal. What now? To get the most out of your buy; keep these three top tips in mind:

• Make reservations or pick-up appointments (for items) as soon as you can.

• Pay close attention to terms and ask questions before heading down.

• Take as little cash as possible to avoid being cajoled into spending more for ‘add-ons’ or future packages (unless of course you want this and have the budget for it).

• And finally, ensure the merchant upholds his end of the bargain as you do yours. If a merchant gives you a hard time, treats you disrespectfully or throws in extra charges which were not adequately provided for in the fine print; be sure to take this up with the deal company to ensure unscrupulous merchants aren’t able to take advantage of anyone else.

This may sound daunting but don’t be disheartened. There are actually genuine deals to be had and reputable deal sites should be able to give you the customer care follow-up you require.

Happy shopping!

This was brought you by Diana Chai from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Crisis turns big spender into savvy innovator

Crisis turns big spender into savvy innovator

Ms. Pat Law borrowed $10,000 from good friend Irene Ang (inset) to start Goodstuph.

Patricia Law had a rude awakening when her father was diagnosed with a brain tumour nearly four years ago. The advertising executive realised her bank account was a big disaster.

 

“I had been working for more than 10 years but I had nothing, not even $1,000 to my name,” she recalls.

 

Her mortification was compounded by the fact that she was drawing a more than decent salary of nearly $8,000 a month.

 

“It would not have been so bad if I actually had a mortgage or a car to show for it, but there was nothing.

 

Cancer in the family was something I just could not afford,” says the older of two children of hawkers.

 

Although her father’s tumour turned out to be benign, doctors warned that complications could set in if it grew.

 

The episode convinced her to overhaul her life. She reckoned that drawing a monthly salary, even a decent one, would make coping difficult should a major medical crisis affect any member of her family.

 

“I knew what I could do, and that I could do it on my own,” says Ms Law, 33, who was then a promising new media marketing specialist at Ogilvy Public Relations Worldwide.

 

Two weeks after her father was diagnosed, she handed in her resignation letter to set up Goodstuph as a one-woman show. The agency – which specialises in social media advertising and marketing – now employs seven staff and has annual billings of more than $3 million.

 

The freewheeling big spender has morphed into a savvy entrepreneur, one whose agency won two prizes – Local Hero of The Year and Social Media Agency of the Year – at Marketing Magazine’s Agency of The Year Awards 2013.

 

Change is not new to her. “I’m a bit like water.

 

I fill out different shapes at different times in my life,” she says. Ms Law grew up in a three-room flat in Marine Parade.

 

Raised to be independent, she was already taking buses daily on her own at six years old to Changi Airport’s Terminal 1 where her parents ran a duck rice stall.

 

 “My mother was very thrifty,” says Ms Law, who attended Ngee Ann Primary School.

 

“She bought me an extra-large pinafore when I was in Primary 1 so that it would last me a few years.”

 

Diagnosed with a pronunciation problem, she had to undergo speech therapy at Singapore General Hospital.

 

“It was a terrible thing for a nine-year-old. You feel very demoralised.

 

I was quiet because of that. I didn’t want to speak and didn’t want to give others a chance to make fun of me,” she recalls.

 

Not that she was a wallflower. In fact, she was full of street smarts and was making her own pocket money even at that young age.

 

“I’d catch grasshoppers, put them in tikam boxes and sell them to classmates as pets for $2 each,” she says.

 

Academically, however, she was less nimble. Her poor Primary School Leaving Examination scores saw her posted to Pasir Ris Secondary School where she mixed with a motley crowd.

 

“I was never in a gang but I hung out with folks who were. One student made headlines for punching a teacher,” she recalls with a laugh.

 

She was no model student herself. As a prefect, she would abuse her position and let students out of school for a buck or two.

 

That was never found out, but she was stripped of her prefectship for truancy.

 

 In Secondary 3, she decided to pull her socks up and got herself a tutor.

 

“I looked at my family’s background, saw how hard they were working and I realised that if I didn’t pay more attention to my studies, I would have nothing to fall back on,” she says.

 

Her O-level results were good enough to get her into a junior college but she decided to study business at Singapore Polytechnic instead.

 

She says: “I think I’m smart because I know when I’m stupid.

 

I know exactly what and when it was not my game to play.

 

” The polytechnic, indeed, was a far better fit, even though she skipped classes a lot, preferring to spend time at billiard centres like Pot Black.

 

“I was making money from pool games, I was that good. I think I’m a bit of a hustler,” she says with a guffaw.

 

Indeed, she was also making quite a bit of pocket money from the Internet by then.

 

She was a self-taught tech whizz and, from the age of 14, had been using her Internet know-how to design online pages for Web users and even start a pen-pal business.

 

“I knew how to extract e-mail addresses so I put an ad in a teen magazine.

 

I’d tell people who wanted pen pals to write in, and for a fee, I’d give them an e-mail address. Of course today, that would be illegal,” she says with a laugh.

 

Despite spending time on her many money-making ventures, her studies did not suffer. In fact, she excelled in subjects like marketing and business law.

 

“Marketing was my game. I was good in language and packaging, I knew how to sell and I have street smarts so that helped,” she says.

 

“I partied hard but at the back of my mind I knew I had to do well.

 

” Although she wanted badly to go on to university after her diploma, she knew that her parents would not be able to afford it.

 

“I guess they could have taken out bank loans but I didn’t want them to do that, so I decided to start working,” she says.

 

Her heart was set on advertising. Over the next few years, she learnt the ropes at several agencies, including AKQA, Publicis, TBWA and Leo Burnett.

 

“In the beginning, I was scolded every day. But I had some of the best training,” she says.

 

She also worked extremely hard. “A lot of things may not be in my control but I can control how many hours I put into my accounts and how hard I work,” she says. I

 

n the meantime, she got swept up in the digital wave; she started a blog and soon made an online name for herself writing about marketing and advertising.

 

Recognising that social media was then the new online frontier, she knocked back an account director position from another agency to join Ogilvy as an account manager in 2007.

 

“Ogilvy was the only agency with social media as a speciality then,” she says. “It had a lot of clients which wanted to get into the new media space early so it was not hard to sell the idea to them.

 

” She loved her time at the agency and rose quickly.

 

“I was liaising with managing directors and leading consultants and had a lot of leeway to use the best that Ogilvy has to offer to produce big campaigns in the social space,” says Ms Law, who worked on the accounts of clients such as Intel and Nike.

 

 One Sunday, her father came home, dropped his mobile phone and told her he could not feel his arm.

 

She drove him to hospital where a CT scan revealed that he had a tumour near his central nervous system.

 

The sorry state of her financial affairs sobered her.

 

After a couple of days of soul-searching, she decided to leverage on her youth and abilities and take a chance to change her life.

 

She approached her good friend Irene Ang, actress and founder of talent agency Fly Entertainment.

 

 “I asked to borrow $10,000. I dared not ask for more. I’d never borrowed money all my life. I told her my situation, said I didn’t want her sympathy and that I would pay her back.”

 

She had known Ms Ang from the time she was a young executive.

 

“A client wanted a celebrity to endorse their products but didn’t have the money. I found out that Irene had a bar in Club Street so I went there, waited for four hours and pounced on her when she came in.

 

I said, ‘Can I just give you free cat food and if anybody calls and asks what your cat eats, you just tell them the brand?’”

 

Ms Ang remembers the loan.

 

“I generally don’t like to lend money because it can spoil relationships.

 

But I’d known her for several years and I knew she was very talented.

 

I also believe that young people sometimes need a chance,” she says. Ms Law – who repaid the $10,000 in three months – wanted to run Goodstuph from her home but a friend offered her a space in his office, rent-free. “I wanted to hire staff but I told myself I could not hire until I could go one year without any business,” she says.

 

Six months later, she hired her first employee. Around the same time, she also rented her first office, two floors above a steamboat restaurant in Chinatown.

“I didn’t have to make any cold calls. I was in the right place at the right time because I was one of the very few people in Singapore who had actual case studies of social media campaigns in Singapore,” says Ms Law, whose first client was Nike, followed by the National Art Gallery.

Along with her reputation, her team grew. Today she counts the likes of United Overseas Bank, HP, Electrolux and Sephora as clients.

She has also set up a software company Another Good Thing, as well as an online store The Damn Good Shop, peddling one-off vintage items and limited-edition products by the Goodstuph studio.

Her life, she says, has changed. Although she still likes nice clothes, she buys them only when they are on sale.

“I’m proud to say that I have not borrowed a single cent from banks. I freeze 20 per cent of what Goodstuph makes,” says Ms Law, who has also built up more than a year’s worth of cash reserves for Goodstuph.

“I think what happened to my father made me really understand responsibility in a different way.

123456 reasons to change your password

January 22, 2014

SplashData advises using passwords with eight or more characters that contain a mix of upper and lower case characters and numbers as well as letters and trying to make it as random or seemingly random as possible.

 

The only positive point to be drawn from 2013′s list of the world’s worst and easiest to hack passwords is that ‘password’ is no longer in the number-one spot.

But even that tiny glimmer of hope is extinguished immediately because ‘password’ is still alive and well and occupying the number-two spot, having been overtaken over the course of the past 12 months by ‘123456′.

The list, compiled by SplashData and drawn from passwords posted online following major web service hacks, such as the major breach at Adobe – the company behind Photoshop – highlights the risks consumers are still taking by choosing easy to remember rather than secure passwords.

Consumers may well be suffering from password fatigue – the inability to continue to create and remember more and more unique log-ins as the number of web services they use proliferate – but that is still no excuse for using ‘qwerty’ (the fourth most common password) or ‘abc123′ (number five) for protecting their most personal digital information.

Still, web users are not entirely to blame. Despite the ever growing sophistication of hackers, many companies are not doing enough to force their users into using stronger passwords that feature a mix of characters, numbers and symbols.

“Another interesting aspect of this year’s list is that more short numerical passwords showed up even though websites are starting to enforce stronger password policies,” said Morgan Slain, CEO of SplashData. If sites were enforcing stricter password rules then it wouldn’t be possible to set guessable passwords like ‘1234′ (number 16), ‘12345′ (at 20) or ‘000000′ (number 25) as log-ins.

Every time a site is hacked and the passwords exposed, those log-ins are added to existing password-cracking tools to make hacking the next site even easier. These tools search against lists of known log-ins and search for patterns that have already been discovered, such as choosing a dictionary word and substituting its vowels for numbers.

SplashData advises using passwords with eight or more characters that contain a mix of upper and lower case characters and numbers as well as letters and trying to make it as random or seemingly random as possible. One way of achieving this is by using a ‘pass phrase’ and security firm Sophos has made an excellent video here explaining how to do it.

Other steps users can take include activating two-factor authentication if a site supports it and to ensure that if you must reuse a password never choose the one for your email account or online banking services.

The list of the 25 most common passwords in full
1) 123456
2) password
3) 123456784) qwerty
5) abc123
6) 123456789
7) 111111
8) 1234567
9) iloveyou
10) adobe123
11) 123123 Up 5
12) admin
13) 1234567890
14) letmein
15) photoshop
16) 1234
17) monkey
18) shadow
19) sunshine
20) 12345
21) password1
22) princess
23) azerty
24) trustno1
25) 000000

Top 10 online shopping sites with free shipping

January 22, 2014

These are the top 10 online shopping sites with competitive retail prices and free shipping (though some with conditions).

By Matthias Sim

Does the thought of a crowded mall carpark give you the chills? Or maybe the thought of trying on an outfit in a claustrophobically tiny changing room makes you sweat. For some people, mall shopping is a nightmare come true hence why online shopping sites have become so popular. There’s something almost magical about hitting a button and have that item show up at your doorstep sometime later. Without overheads, online stores are also able to offer items at much cheaper prices than regular stores. Seems like a win-win situation.

Until you factor the price you pay to ship the item. Smaller items within Malaysia are a matter of RM6-7 in Poslaju costs but bulkier items can negate the discounts online shopping offers in the first place. But many online stores have now realised that offering free or subsidised shipping helps create customer loyalty, and puts them ahead of the competition. This comes at a smaller cost than most think thanks to bulk and frequent customer discounts given by courier companies and the postal service.

These are the top 10 online shopping sites with competitive retail prices and free shipping (though some with conditions).



1. Thepoplook
Thepoplook sells clothing and accessories for teen girls. They offer free shipping throughout Malaysia via Poslaju and even to Singapore using SF Express Courier Service. With a purchase of RM1000 in a single receipt, thepoplook provides free international shipping to every other country except Israel. Following UK sizes, thepoplook also has sales of up to 60% every so often.

2. Fblock
With up to 9 retail outlets throughout Selangor and 1 in Melaka, Fblock boasts a variety of products from clothes and accessories to bags and beauty products. With a purchase of RM100 and above, Fblock offers free shipping throughout Malaysia with a delivery time frame of 3 to 6 days.

3. Glam up boutique
In the running for online shop of the year in the Digi Wwwow Awards, Glam up boutique specialises in cosmetics from Korea. With the Hallyu or Korean Wave becoming popular with Malaysians in the past few years, Glam up boutique could be the go-to online shop for cosmetics. They provide free shipping to Malaysia and Singapore after reaching a minimum purchase of RM100 for West Malaysia, RM120 for East Malaysia, RM250 for Singapore.



4. Fashion valet
Fashion valet not only offers free international shipping; they reward shoppers with loyalty points where RM100 = 100 points = RM1 to spend. Free shipping is available for Malaysia, Singapore and Brunei whilst other countries will have to place an order above a certain amount before enjoying free shipping (minimum amount varies depending on country. Fashion Valet sells clothes for women and children; shoes and accessories. Keep an eye out for their festive sales!

5. Zalora
Over the years Zalora has slowly become one of the hottest online shopping sites for both men and women. Zalora offer a wide variety of choices. Whether if it is for sports, grooming, beauty, clothes, shoes, whatever you are looking for, they most likely have it. Shipping is free provided shoppers make a purchase above RM75.



6. ASOS
Asos is well-known internationally as a preferred online clothing destination for men and women. They sell different brands and even have their own label. Most importantly, they offer free shipping to over 190 different countries with no minimum purchase required.

7. Book depository
Online shopping sites are not just about clothes and cosmetics. Book depository offers free worldwide shipping and has every type of genre imaginable. If a good book is hard to come by, then try checking out the inventory in Book depository.

8. Lazada
Specialising in electronic gadgets and devices, Lazada provides free shipping nationwide with a minimum purchase of RM50 (Kuala Lumpur and Klang Valley), RM100 (West Malaysia) RM150 (East Malaysia). Lazada works on Cash on Delivery system and items are returnable within 14 days of purchase.

9. eBay
eBay may come off as a shock for most people but they do offer free shipping. Just keep an eye out for sellers that are offering free shipping (just make sure you ask if postage to Malaysia is included in the offer!). Sellers in Malaysia are more likely to offer free shipping especially on purchases exceeding a certain amount.

10. Foodworld
Even the food industry has taken the step into online businesses, this is not a food delivery like McDonald’s or Pizza Hut but instead, Foodworld delivers your groceries to you. This helps save time for working mothers, students living alone or for bachelor/bachelorettes. Foodworld provides free delivery as well but only within the Klang Valley area, Penang and Johor Bahru with orders above RM200.

With more sites offering free shipping options, shopping online is becoming more and more attractive. Though it’s unlikely to replace conventional shopping anytime soon (if the many crowded malls in Malaysia are anything to go by); online shopping with free shipping could create a whole new world of shopping options for people who once hesitated at the ‘buy’ button due to postage prices.
This was brought you by Matthias Sim from RinggitPlus.com. RinggitPlus compares credit cards, debit cards, balance transfers and personal loans to help Malaysians get more for their money.

7 tips to improve your memory

January 19, 2014

Can't find your car keys? Forget what's on your grocery list? Can't remember the name of the personal trainer you liked at the gym? You're not alone. Everyone forgets things occasionally.

Concerned about memory loss? Take heart. Simple steps — from staying mentally active to including physical activity in your daily routine — may help sharpen your memory.

Can’t find your car keys? Forget what’s on your grocery list? Can’t remember the name of the personal trainer you liked at the gym? You’re not alone. Everyone forgets things occasionally. Still, memory loss is nothing to take lightly. Although there are no guarantees when it comes to preventing memory loss or dementia, memory tricks can be helpful. Consider seven simple ways to sharpen your memory — and know when to seek help for memory loss.

No. 1: Stay mentally active Just as physical activity helps keep your body in shape, mentally stimulating activities help keep your brain in shape — and perhaps keep memory loss at bay. Do crossword puzzles. Read a section of the newspaper that you normally skip. Take alternate routes when driving. Learn to play a musical instrument. Volunteer at a local school or community organization.

No. 2: Socialize regularly Social interaction helps ward off depression and stress, both of which can contribute to memory loss. Look for opportunities to get together with loved ones, friends and others — especially if you live alone. When you’re invited to share a meal or attend an event, go!



No. 3: Get organised
You’re more likely to forget things if your home is cluttered and your notes are in disarray. Jot down tasks, appointments and other events in a special notebook, calendar or electronic planner. You might even repeat each entry out loud as you jot it down to help cement it in your memory. Keep to-do lists current, and check off items you’ve completed. Set aside a certain place for your wallet, keys and other essentials

No. 4: Focus Limit distractions, and don’t try to do too many things at once. If you focus on the information that you’re trying to remember, you’ll be more likely to recall it later. It might also help to connect what you’re trying to remember to a favorite song or another familiar concept.

No. 5: Eat a healthy diet A heart-healthy diet may be as good for your brain as it is for your heart. Focus on fruits, vegetables and whole grains. Choose low-fat protein sources, such as fish, lean meat and skinless poultry. What you drink counts, too. Not enough water or too much alcohol can lead to confusion and memory loss.

No. 6: Include physical activity in your daily routine Physical activity increases blood flow to your whole body, including your brain. This may help keep your memory sharp. For most healthy adults, the Department of Health and Human Services recommends at least 150 minutes a week of moderate aerobic activity (think brisk walking) or 75 minutes a week of vigorous aerobic activity (such as jogging) — preferably spread throughout the week. If you don’t have time for a full workout, squeeze in a few 10-minute walks throughout the day.

No. 7: Manage chronic conditions Follow your doctor’s treatment recommendations for any chronic conditions, such as diabetes, high blood pressure and depression. The better you take care of yourself, the better your memory is likely to be. In addition, review your medications with your doctor regularly. Various medications can impact memory.
---- Agencies

Average monthly income and cost of living in Malaysia

January 17, 2014

 

By Michelle Brohier

Back in March 2013, the 2012 Household Income Survey announced that the Malaysian households’ monthly income rose from RM4025 in 2009 to RM5000 in 2012. It’s a 7.2 per cent increase in total, and it was even announced that all states in Malaysia recorded better average monthly household incomes with Kuala Lumpur leading with the highest growth of 14.9 per cent from RM5488 to RM8586.

Overall, the increase is a positive one, with credits due to stable and strong economy.

Yet with the prices of everyday items rising, especially since the petrol price hikes, the significance of this means very little as our spending power remains weak. But are we really that worse off? We took a look at how our spending power compares to some other countries.

Average monthly income across the globe
While the current economy is rising slowly, it’s not without its share of obstacles and troubles. Here’s a chart on the average monthly income in four countries, including Malaysia.

Country	Average Monthly Income in 2012
Malaysia	RM5000 (or RM8586 in Kuala Lumpur)
United States of America	US$4251 (RM13965)
United Kingdom	£2796 (RM15064)
Singapore	S$7570 (RM19551)

Here are some interesting notes about the average monthly income in these different countries. In America, while the average monthly income is slowly rising in the past years, it is considered flat.

These numbers show that Americans are actually earning much less than their average monthly income back in 1989, which was US$4306 (RM14145). As one American aptly described; it is a loss of a generation of economic gains for America.

The United Kingdom isn’t doing too well either due to high energy prices, making their current average monthly income the lowest in three years. In reality, household spending power in the UK has been slashed for while they do have a total income of £699 (RM3766) a week; they are left with just £155 (RM835) after paying bills and taxes.

Singapore is the only country that’s average monthly income has been growing, with it being at S$7570, an increase in the past five years.



Spending power in Malaysia vs. other countries
Despite the rise of Malaysia’s average monthly income, the cost of most items in Malaysia remains high and its citizens continue to struggle to support families and themselves.

But even so, branded coffee such as Starbucks continues to be popular despite the price hike with an average price of RM12. In America, the price of a normal Starbucks costs roughly US$1.85 (RM6), which is significantly cheaper compared to their monthly income for sure.

Even so, it was announced that Starbucks coffee prices would rise by 10 cents, showing that even America isn’t immune to the rising prices.

Eating out is also a problem here in Malaysia.

An average meal costs about RM8 to RM10 here, which takes up to RM600 or more per month.

A Big Mac at McDonalds costs RM7.95 a-la carte, while in the UK it’s £3.50 (RM19).

In terms of amount, it may seem like a reasonable price for a meal.

But based on the earlier deductions, UK citizens only have £155 to spend, so they don’t have the pleasure to buy Big Macs whenever they please.

Of course, not all countries are having it as tough as Malaysians.

While still generally an expensive country, the average monthly income for Singaporeans allows them to spend a lot more.

Whilst hawker fare in Malaysia costs RM5-6; the ‘conversion’ is 1:1 as Singaporean hawker food can also cost SGD5-6 (RM13-16). So if in terms of money value based on food purchases alone, we’re almost as good (or bad) as Singapore.

A Malaysian Dilemma
The situation in Malaysia isn’t ideal, and we all wish we could have the same sort of spending power as other countries. But on the bigger perspective, Malaysians aren’t the only ones having it tough.

Though yes, there are still many ways of which Malaysia is definitely lacking and undoubtedly a number of items 10 cents, showing that even America isn’t immune to the rising prices.
This was brought you by Michelle Brohier from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Top frugal living tips from the web

January 14, 2014

Here are some popular frugal money saving ideas that can be applied to us Malaysians

The internet has a wealth of tips for living on a shoestring budget. Though they’re mostly geared towards American audiences; here are some popular frugal money saving ideas that can be applied to us Malaysians.

Ideas for frugal living – NetmumsOpt for generic brands
More often than not, the generic brands are just as good as the branded products. There may be some exceptions and it may take a few test tries, but you’ll be surprised by how well the cheaper versions work and it could save you a lot of cash. You’ll find many stores here in Malaysia carrying their own range of products that are significantly cheaper.

Cook in bulk
You can cook large meals such as curries and vegetables and refrigerate them for the rest of the week. If you want more variety in your meals, cook certain meats, veggies or sauces beforehand so you can whip up quick dishes using the sauces when you need one!

Ten simple frugal steps that save money without skipping a beat – The Simple DollarCut down on sugary soft drinks
Not only is this good for your wallet, it’s also good for your health. While there are cases where you’ll need your isotonic drinks, especially if it’s hot or you’ve just exercised, keep them to a minimum and try not to indulge too much. You’ll be surprised how much money you save, and how much healthier you’ll feel too.

Pay attention to expiry dates
Look through your pantry and cupboards to make sure you use up all the food that you have before they expire. It’s possible that when you buy bulk items on sale, you’ll forget them later on as you continue to buy more, so just make sure you know how much you have to reduce wastage.

31 Ways to be frugal and save money – Money CrashersSkip the snacks at the cinema
A lot of the snacks offered at movie centers are overpriced and often leads to overeating. Eat a filling meal beforehand, and with enough resistance, you’ll be able to watch a movie without the popcorn and save money.

Forego gym membership
Gyms are everywhere these days, and they’re great if you use it constantly. But there are always cheaper options, like going for a jog or cycling. Or if you’d like to stay indoors, you can do your own push-ups and sit ups, or follow a Youtube workout video to stay in shape on the cheap.

75 ways to save money every month – Affordable Schools Online

Have a no-spend weekend
Maybe it’s time we Malaysians try to spend our weekends doing something other than being in shopping malls, as we’re bound to spend more money there. Get your family to cook a fun meal together, pull out an old DVD or borrow one from friends. You could also just try spend the weekend chilling out at home. While keeping your spending on a minimum can be quite hard to do initially, you may soon discover it is very possible and likely more fun than you think.

80 ways to be frugal and save money – The Art of ManlinessUse it up; wear it out; make do; or do without
It’s an old saying, but always try to make your items last as long as possible. If a pair of your pants is torn, get it sewn up. If your t-shirt is too small, donate it or use it as a wiping rag rather than buying new ones. Your phone screen cracked? If you’re still fond of it and it’s cheaper than buying a new one, just change the screen.

Keep your freezer full A refrigerator uses more energy when it’s empty, so keep it filled. If you have nothing to fill it up with, just make loads of ice and cold water. In that way, you’ll have extra water ready just in case a water shortage happens!

There are tonnes more tips where these came from. Take a gander through these sites for hundreds of tips to help you save.This was brought you by Michelle Brohier from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

How to turn yourself into a PROPERTY MOGUL in 2014

How to turn yourself into a PROPERTY MOGUL in 2014

RISING house prices are tempting investors back into property after a few lean years, and many are considering taking the next step and chasing bigger bucks through property development.

It can promise more riches than simple investing but has more potential traps for beginners, and a whole new world of knowledge to master.

Author, property developer and university lecturer Peter Koulizos says there is a great opportunity to make money in property development, "but there is also a great opportunity to lose a lot of money, because the risks are higher".

"Most capital city house prices are still below their peaks of three years ago and interest rates are very low, so it makes property development more affordable for the average mum-and-dad developer."

Koulizos says research is the vital first step. "That starts with the council," he says. Every council has a development approvals process and plans that outline minimum block size, minimum street frontage and other issues.

Developers need to research prices and know how much a property is worth. Koulizos says long-term investors may pay an inflated price for a property but are still winners if they hold it for 10-15 years, but a developer looking to turn it over faster does not have as much time to make up for their mistake.

"Get a fixed-price contract from a builder, and one where they guarantee the build time," he says. "In development, time is money. The longer it takes, the more your holding costs. And avoid changing plans once you have signed off on them."

Know your market: Research is key to minimising risk when it comes to property development Source: News Limited
 

Koulizos recommends writing down the worst-case, best-case and probable scenarios, and you should aim to make a gross profit of 20 per cent on the project.

Metropole Property Strategists chief executive Michael Yardney says now may not be the best time to start a new development, because house prices have already picked up and developments usually have long time frames - often a two-year process.

"A good way for the beginners to start is through renovations. It has much shorter time frames and you also learn budgeting, dealing with builders and dealing with banks," he says.

Yardney says it is vital to start small. "You are going to learn most of what you will learn in the first two or three developments. It's going to cost you more than you thought." But property development is a great strategy because you are not just waiting for the market to rise - you buy assets at wholesale prices and are able to create capital growth, he says.

Yardney says it is vital to surround yourself with a good team of experts. "If you are the smartest person in your team, you are in trouble," he says.

SOL Results property coach and developer Stan Kontos says his top rule is to ensure you make your money when you buy the property, not upon sale.

"Undertake a feasibility study for costs such as demolition, subdivision and so on, based on today's price, not a projected future price," he says.

"Don't depend on it going up and, if and when it does, consider this a bonus."

Kontos says people who do not like risks should not go into property development.

"Find a mentor, be teachable and get taught. Don't make the mistake of learning as you go."

Kontos says beginners need equity of about $50,000 to $100,000, plus a steady cash flow, and should only pick developments they can afford.

"Start by researching a specialist area," he says. "The risk is reduced when you understand the area and the council zonings, as well as any future changes."
--
EIGHT STEPS TO SUCCESS
1. Before looking at land, work out your finance and team of advisers including real estate agent, solicitor, architect and development manager.
2. Check the local council's policy toward development and come up with a concept.
3. Buy land at a price that allows you to make a commercial profit.
4. Get development approval, which can take months.
5. Get working drawings prepared so you can then obtain a building permit.
6. Obtain quotes from builders and finalise finance for the construction period.
7. Next comes the building stage, lasting 7-12 months. Most developers never get their hands dirty, and are more like a producer of a movie.
8. At final completion, the project is refinanced and leased, or sold. Be sure to always have an exit strategy before you start.
Source: Metropole Property Strategists

Should you rent or buy?

January 13, 2014

There are clearly differing views on the subject, and though the considerations will always be incredibly personal; there are universal factors to consider before taking the property plunge.

 

Many people will quickly tell you that buying a home is always a better financial decision than renting. After all, at the end of the term you will own the house as opposed to paying rent which in the end leaves you with nothing.

But if foreclosures and bankruptcy statistics are anything to go by; buying a home may not be the best choice for everyone. Owning a home is a big responsibility and taking that step just because someone else considered it right is landing a lot of youths who can’t (and don’t want!) the responsibility in hot soup with their bankers.

As such, we thought we’d revisit the old question on renting versus borrowing from a different perspective than one that is merely based on money.

What some are saying
“I don’t need to buy a home. I have no dependents to pass it on to and I don’t see why I need one. I like being able to pack up and leave anytime I feel like it. I am not worried about old age. I have some savings for a nursing home,” shares Darrin, an NGO worker.

Darrin comes from a new breed of young adults who don’t see the need to have a house in his name. But it doesn’t mean there aren’t those who prefer some asset security.

“Before I even bought a car, I bought a house. I was 25 and at my first job but I felt it was something I needed to do. I could still drive the old car my parents gave me but I am better off starting my mortgage payments as early as possible,” said Jeanne, a Customer Service Executive.

An ex-bank officer, Mala says she sold her house just a few years after buying it. “I bought it when I was 24 but sold it at 28. I realised I didn’t want to live in one place anymore and I didn’t want the hassle of renting it out.”

But some others weren’t so lucky to be able to make decisions on their own. A young couple in the Klang Valley bought property together only to find they couldn’t handle the responsibility of payments and were forced to sell at a loss as they were months behind on the monthly payments.

They sold within a year of buying. “I thought we could handle it but our debts overtook us.” The woman tells us.

There are clearly differing views on the subject, and though the considerations will always be incredibly personal; there are universal factors to consider before taking the property plunge.

The considerationsOf Plain Ringgit and Sen

Buying a house will definitely flatten your wallet at the get-go much more than the beginning of rental tenure.

Most banks now offer 90% financing but that means a 10% deposit from you. Even on a low cost apartment costing RM150,000; that is an RM15,000 deposit plus fees for the Sale and Purchase Agreement and stamping (1% on the first RM150,000+RM10 for stamping of each copy of the SPA + miscellaneous fees). All in all, you could be looking at a RM17,000 put down amount to buy.
 Using a home loan calculator, with an interest rate of 4.5% and tenure of 30 years; you’re looking at a monthly payment of RM684.* Of course, BLR rates fluctuate and your interest rate could climb at any time.

To rent, you will need a lump sum of one month’s utilities fees and three months full rental. Utilities are charged at half the monthly rental but some landlords actually demand a full month’s rental for the utilities deposit. For a low cost apartment, at approximately RM800 per month; you will be looking at forking out RM2400 (two months) + RM400 (utilities) = RM2000. A tenancy agreement costs approximately RM250 in legal fees, so a total of RM3050.**

Without the need for a large deposit, the upfront cost of renting is lower than buying. However, while you will save in the short run you are giving up the opportunity to own a home as opposed to just paying someone to stay in theirs. Last but not least, owning a home comes with other expenses such as quit rent (approximately RM90) and land tax (about RM900 per year and up depending on land valuation of a particular area. Kuala Lumpur assessment rates are expected to climb significantly this year).
Of Commitment and Lifestyle
Taking a purely monetary view, owning is a better alternative as you are pumping monthly payments into an asset as opposed to simply paying a charge.

However, buying a home is a commitment of 30 years of continuous payment. Owning a home also means you are responsible to maintain and care for it; whether or not you live in it. If you are looking for flexibility in housing arrangements without the added stress of property maintenance, renting is the way to go. It is definitely more difficult to sell a house as opposed to simply severing a tenancy agreement

In a Nutshell
Before buying a home the main factors to consider are:
• Do you have enough cash for a downpayment?
• Can you afford the commitment and maintenance of your own home?
• What is your preferred lifestyle (nomadic or staying put)?
• Do you really want it? The main thing about house ownership is to really want it. If you’re doing it to please someone else or conform; do think again.
The decision whether or not to buy is a big one: so don’t make it lightly.
* Calculations are based on the structure of legal fees released by the Bar Council FAQs on
Conveyancing matters and property prices at the time of writing. Agent or realtor fees are extra.
**Calculations based on tenancy securing without an agent or realtor. Realtor fees are extra.

All names have been changed.
This was brought you by Diana Chai from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Survey: Internet addiction affects health

January 10, 2014

This addiction trend will continue to be fuelled by children growing up with the Internet as an integral part of their lives

KUALA LUMPUR: Malaysians feel less healthy compared with five years ago and Internet addiction is a major culprit to unhealthy lifestyles, according to global insurer AIA Group Ltd in its latest Healthy Living Index Survey.

“Some 67% of adults in Malaysia feel their health is not as good as it was five years ago, with 62% under the age of 30 agreeing with this sentiment.

The survey shows that Malaysian adults also scored lower than the regional average (6.6 versus 7 out of 10) in terms of their satisfaction with their health status,” said AIA Bhd in a statement yesterday.

Malaysia scores 61 out a possible 100 points in the landmark survey of over 10,000 adults in 15 Asia-Pacific markets, which also uncovers new modern-day threats to healthy living such as Internet addiction and concerns about being overweight.

The survey said 73% of adults interviewed agreed that their online activities and social networking are becoming addictive, ranking Malaysia among the highest percentage in the region, and 81% of respondents said that spending time online is a barrier to them getting enough exercise and sleep while also affecting their posture.

“This addiction trend will continue to be fuelled by children growing up with the Internet as an integral part of their lives,” said AIA.

Malaysians do not exercise regularly with 32% of adults admitting so and all these unhealthy habits are aggravated by a preference for sedentary means of stress relief such as watching TV and/movies (67%), playing computer or mobile games (50%) and spending time online (48%), said the survey.

Concern about obesity is one indicator of the impact of poor health habits – 64% of Malaysian adults say they want to lose weight, above the regional average of 53%.

Some 93% agree that obesity among younger people is a worrying trend, suggesting that the problem is likely to grow as it has been reported that more than 40% of Malaysians are obese with about 15% of the population diabetic, presenting a potential health timebomb in the future.



The survey showed Malaysians are concerned about cancer (50%), heart disease (45%) and being overweight (25%) with the former two being above regional averages.

Despite these concerns, only 50% of adults had medical check-ups in the past 12 months and 89% feel that employers should help employees live a healthy lifestyle by providing free health checks, not subjecting employees to undue stress and ensuring workloads are not excessive.

In Budget 2014, healthcare spending increased by 14.5% year-on-year to RM264.2 billion or 8.4% of the total budget planned.
This content is provided by FMT content provider The Malaysian Reserve