FOR THE MAN IN THE STREET: Tips on how to ride out the patchy 2014 economy

FOR THE MAN IN THE STREET: Tips on how to ride out the patchy 2014 economy

This is the time of the year when we shall reflect on the past and the future. A new year is a great time for us to revisit, recharge, recalibrate and reposition our course, be it on personal or financial matters.

Below are seven of my reflections on the 2013 economy that will haunt us in the year ahead.



1. Stick to your budget
A Budget is a tool to plan the ‘in-and-out’ of your ringgit. If you spend less than your income, you will have a surplus that leads into savings and investments. If vice versa, it’s a deficit that requires borrowings. In reality, you will ride a cycle on which you will land on a balance, surplus and deficit budget. But if you continuously sit on a deficit budget, say for 18 years (and prolong it till 2020), you are heading into a big trouble. We need a (fiscal) discipline.

2. Grow your income
When you have so many people to greet in your party, you need to enlarge your cake, larger than that of last year. With a bigger pie to be shared equally (and equitably), people won’t make much noise as previously. If you think a 5% growth is adequate, a 1% drop is to be avoided. Increase your ingredients - floor, butter, sugar - for the cake, and improve your value drivers – consumption, investment, government spending, net exports – for the economy. Growth reflects prosperity.

3. Control your spending
Needless to say, spending depends on affordability and rationality. Cut wastage and leakage. There is a saying, “Too many people spend money they haven't earned, to buy things they don't need, to impress people they don't like.” Do you need an Auditor General to prove otherwise?

4. Save for the rainy days
There are two types of rainy days. Predictable rain is when you know it will fall. When you just don’t know when or how bad they will be, it is the unpredictable rain. By saving each month, you won’t be blindsided when something happens. This applies to our family, and of course, our country too.

5. All going up except the rain
In Malaysia, there are two explanations given when prices increase, profiteering by sellers or subsidy rationalisation by government. Inflation could be due to cost-push or demand-pull factors. An increase in prices will bite into our purchasing power. A RM100 spent today can buy less items than it could last year. RM100 for next year? Your guess is as good as mine.

6. Be honest with yourself
It's your money – it makes no sense in lying to yourself about your money. The only person you hurt when doing this is yourself. If you have no idea on your spending, take a break. And please don’t lie when dealing with others’ money.

7. Integrity and accountability
If you spend your own money upon yourself, it is prudent. If you spend your own money for others, it is generosity. If you spend someone else’s money for someone else’s interest, it is a trustee, and this is what government is. A fiscal policy full of integrity is vital for Malaysia.

As another year ends, another history, another transition, and a new beginning dawns. Malaysia is certainly at a crossroads. A fundamental change is required, not just on economic resilience but also on social justice.

The journey will be long and arduous, God willing, we will succeed.
- Harakahdaily
 

Toyota to launch ‘car of future’ in 2015

January 8, 2014

The vehicle, yet to be named, would be a zero-emission, electric-drive, mid-size, four-door sedan

Toyota said Monday it plans to launch a fuel-cell car in the United States next year, declaring the hydrogen vehicle with zero emissions “the car of the future.”

Toyota Motor Sales vice president Bob Carter said the initial market will be California, together with an initiative to establish hydrogen refueling stations in key regions of the state.

“In 2015, we will bring this car to market,” Carter said in the announcement at the Consumer Electronics Show in Las Vegas.

The vehicle, yet to be named, would be a “zero-emission, electric-drive, mid-size, four-door sedan.”
“Functionally, this is a regular car,” he added.

The streamlined design is to maximize oxygen intake for the fuel-cell process. It will be able to travel 300 miles (480 kilometers) on a single fueling, which would take three to five minutes.

While carmakers have long touted the advantages of fuel cells, high production costs and a lack of fuel stations have held back the technology.

Carter said however that Toyota had been getting results from its major investments and added that “we believe we can bring it in at a very reasonable price for a lot of people.”

Government initiatives in California were making progress in getting hydrogen fueling stations in needed areas, he added.

“The issue of infrastructure is not so much about how many, but rather location, location, location,” he said.

“Fuel cells will be in our future sooner than many people believe… and in much greater numbers than anyone expected.”

Toyota unveiled a prototype last year at the Tokyo auto show, but on Monday offered more details for its plans for the US market.



Honda is also expected to roll out a fuel-cell car in the US market in 2015, and other automakers are working on the technology, which emits only water vapor as exhaust.

Honda already has a fuel-cell car, the FCX Clarity, available on a small scale in a limited number of markets.

Carter said that Toyota and California officials plan to add 20 new fuel stations by 2015 to the 10 existing ones. The goal is to have about 100 in the state, and to have a station within a six-minute drive of an owner’s home or business.

“This infrastructure thing is going to happen,” he said.

“I believe this vehicle will be the car of the future.”

It is expected to launch in Japan at about the same time.
- AFP Relaxnews

7 things that will get CHEAPER in 2014

7 things that will get CHEAPER in 2014

Despite huge discounts and a shopping season that began well before Thanksgiving, holiday shoppers this year just aren’t spending the way retailers had hoped. After slogging for years through a sluggish economy, who can blame consumers for holding tight to their wallets?

There are some signs that shoppers are starting to come back to life. Increases in household income and wealth thanks to raises, rising home values, and a strong stock market are helping boost consumer confidence. Consumers may have a few more reasons to smile in 2014, with lower prices on a host of everyday items.

The CPI inched up just 1 percent in the 12 months ending in October, the smallest 12-month increase since October 2009, and economists expect an increase of about 3 percent next year, although certain categories such as housing may grow at a quicker pace.

With such modest inflation predicted for 2014, any relief for consumers would be welcome. After all, every dollar saved on gas prices or a technology purchase could help a consumer’s bottom line, or maybe help push up the consumer savings rate. In October, that rate stood at 4.8 percent. That’s up from the dismal 2- and 3-percent rates seen before in the years leading up to the Great Recession, but it’s still down from the double-digit savings rate seen in the 1970 and early 1980s.

1. Used Cars

Getty Images/Justin Sullivan

In November, used car prices fell 3 percent to about $15,600, the lowest price since the third quarter of 2009, according to Edmunds.com. Analysts at the auto site expect prices for used cars to remain soft, after years of above-normal prices. Prices for new cars may decline slightly as well, since dealers will need to compete with a flood of recently returned, leased cars in relatively good condition.

2. Oil
The continued domestic oil boom is increasing the U.S. oil supply even as demand declines due to greater fuel efficiency, a move away from oil heat, and a shift to natural gas. That’s putting long-term pressure on the price of oil and the gas it produces. The U.S. Energy Information Administration expects prices for a barrel of West Texas Intermediate Crude Oil about 3 percent to $95 per barrel, and gas prices to decline about 2 percent to $3.42 per gallon.

3. 3D Printers
Interest in 3D printers has become mainstream, but with price tags of several thousand dollars, the machines have until now remained out of reach of the average consumer. That could change next year, following the expiration of several key patents that enable 3D printers to work. The cheapest printers to hit the market next year could cost just a few hundred bucks.

4. Tablets

Sorry, Apple, you’re not the only game in town any more. Cheap, Android tablets are continuing to flood the market, and they’re starting to make some headway in terms of market share, pushing prices down across the board. Companies like Acer and Lenovo have introduced tablets priced below $150.

5. Credit Card Perks
Continuing a trend that started this year, big banks next year will continue making formerly elite perks more accessible to a broader audience. That means that incentive programs such as trip insurance and rental car discounts, which were previously available only to cardholders who paid an annual fee, will now be offered to no-cost cardholders.

6. Coffee
After record coffee production by Brazil last year, overall prices for java beans have fallen throughout the year and are projected to continue to decline.  Prices for a pound of coffee have already fallen more than 12 percent so far this year, and there’s no end in sight to dropping prices. Don’t expect to see a price cut on a latte at Starbucks, though, so far the retail chain has pocketed a bigger profit without passing along the savings to consumers.



7. Bonds
With interest rates expected to start to climb next year as the economy continues to stabilize and the Fed begins to taper its bond-buying program, the price of bonds will likely begin to fall next year. That doesn’t matter for folks who own individual bonds and plan to hold them to maturity, but weak prices will hurt the value of bond funds. Switching from intermediate- to short-term bond funds will shield you from interest rate hikes but will also bring a lower yield.
 - The Fiscal Times

Money resolutions to make with your children

December 31, 2013

Here are some ways you can save with your children.

 

By Michelle Brohier
When it comes to the New Year, everyone is eager to start it off with resolutions to improve themselves throughout the year. The most common are: getting healthier, starting a new project or getting financially fitter.

For those with children, New Year resolutions doesn’t have to be limited to having your children make sure they keep their room clean or behave themselves: why not teach them to manage money?

Making a resolution to manage money better together with a child will not only force you to make the right money moves in order to set a good example; but will also teach young children the importance of being prudent from the get-go. The tag-team concept will also keep both of you in check!

Here are some ways you can save with your children.
Start saving
Everyone needs savings and you can teach your child how to save up for items and experiences they want. Set up a junior savings account for your children where they can keep the money they receive during festivities, birthdays or even money saved from their allowance. Bring them to the bank and show them how the money is deposited and let them watch the account grow. The satisfaction they gain will hopefully curb high spending tendencies!

Lead by example: Take this chance to save money in your own savings account too. Show your children that you are also working hard to save for the future just like them, and this will encourage them to keep at it too.

Set up different piggy banks
Children may still want some money for little treats that are easily accessible. The mad money jar is a concept both children and adults can utilise to fund small indulgences every now and again. Set up a jar or a piggy bank in their room for them to dunk in spare change and small savings. Allow them to label the jars with removable sticky notes based on what they are saving up for. They can even stick pictures to motivate themselves. The visual reminder of the item will encourage them to practice prudence in order to get it.

Lead by Example: Set up your own jar for your little indulgences. Of course, instead of coins, you will probably have larger notes for those nice dinners, spa treats or shopping. ‘Mad money’ jars allow you indulgence without the guilt.



Give them spending experience
It’s important to teach children how to control the money that they have. When you go out for shopping, show them the cost of the items spent and how much the total is to put food on the table and buy them their treats. Allow them to participate by giving them a budget and asking them to choose their favourite foods within the budget. This will teach them how much things cost and if they want the sugared cereal, they may have to forego the chocolate bar. It also makes them more appreciative of the food they are given at home.

Lead by Example: Keep track of your own finances and see where you can cut corners to bring down your grocery and other bills.

Teach the difference between needs and wants
Children need to know the difference between a need and a want. Just because they want something, it does not mean they should have it. Discuss the item with them and what they intend to do with it. It’s not about making the decision for your child but leading them to make the right choice themselves.

Lead by Example: Show your child you practice what you preach. It’s pointless to tell him/her that the new toy is unnecessary whilst you buy more gadgets or designer items for yourself.

Earn through the little ways
Give your children the opportunity to earn their own money. Give them chores around the house and offer a token sum if it’s done well. Do not, however, reward them for things they must do (such as study or go to tuition class) as this will make them assume that even necessary behaviour is rewarded.

Earning this way will teach them that money can come through effort, hard work and some amount of skill.

Lead by Example: Are there more ways you could be earning more? How about a part-time job or consultancy work? If it doesn’t go against your current employment contract; you can offer to freelance too.

Money management is a life skill best learnt early. Embarking on a new year of better financial management with your children can be satisfying and useful. Make the best out of the New Year and have a great 2014!

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.

Man with less than $ 2 now owns $ 2.5 MILLION business

Man with less than $ 2 now owns $ 2.5 MILLION business

The Straits Times ( Singapore )
Tuesday, 31 December 2013

It takes a bit of doing to rack up a $350 debt to a pal at the tender age of 12 but businessman Bernard Chua managed it all too easily.

Mr Chua, 35, recalls how he used to trade little trinkets and toys in primary school to pay for his favourite toys.

But that unfortunately led to him picking up gambling.

"It was a fast way to get money, and my classmates and I would bet among ourselves on anything from football to number games," he says. "There wasn't anything in black and white, and it was all done through a gentleman's agreement."



Lady Luck shone on him for a few years and Mr Chua grew his pocket money but his fortune turned when he was in Primary 6.

"I made the silly move of doubling my stakes every time I lost money," he says. "And soon the debt snowballed to about $350, which was a lot of money for a boy who got 30 cents a day!"

Mr Chua gave up all the Mask toys and Transformers he had amassed to make good his debt.
"My parents didn't know about it at that time," he says with a laugh.



Gave up gambling
But the lesson was painful enough for him to give up on gambling and focus on something meaningful.

And the natural business acumen he had as a child eventually served him well in adulthood.

Mr Chua graduated from university in 2002, a year after the Sept 11 terror attacks, and just before the Sars epidemic hit.

The banking and finance major could not get a full-time job during the economic downturn but the loss of his grandfather in early 2003 prompted Mr Chua to do what he'd always wanted - go into business.

He set up a moving company, CYC Movers, with $15,000 his parents lent him to buy the first truck and hire staff. Within the first year of business, he had wiped out his savings and was down to less than $2 in the bank.

His then-girlfriend, now wife, Patricia, asked him to keep the ATM slip showing his bank balance then as a reminder of what it is like to have no money.

He persevered and has grown the business many times over: Revenue crossed the $2.5 million mark last year.

Although he devotes most of his time to the company and family, Mr Chua says he still keeps an eye out for good investments.

"You can't stop a businessman from bargain hunting!" he says laughing.

The couple have three children aged four, three and the youngest was born on Dec 11, 2013.
 

Your Facebook posts, tweets could cost you a job

Your Facebook posts, tweets could cost you a job


Recruitment agencies caution job candidates against complaining about their previous company, or posting explicit photos or pictures of alcohol consumption on social media.

By Boo Su-Lyn  December 30, 2013

KUALA LUMPUR, Dec 30 — Recruiter Muslim Nazari thought the 28-year-old applying for the sales manager position seemed too good to be true with his impressive resume and impeccable interview scores.

Just to be certain, Muslim scanned his Facebook profile and found incriminating pictures of the once-promising job candidate using recreational drugs at parties.

The potential hire also used the same social media space to complain about his manager.

 

“He didn’t get the job,” Muslim told The Malay Mail Online in a recent interview.

“Those were the two biggest red flags. We don’t hire people who are involved with illegal activities. It will affect the company’s image.

“We also question the values of people who speak ill of their previous company on social media,” he added. 

Muslim, who is now with another IT company which he declined to name, said his current job requires him to screen all job applicants through social media sites like Facebook and LinkedIn, a social networking site designed specially for professionals.

Although Malaysians generally keep their Facebook settings private, Muslim says he can easily access job candidates’ private Facebook profiles as they are usually connected to someone within his organisation that has about 1,500 employees.

“It’s six degrees of separation,” he said, referring to the theory that says everyone in the world is connected to one another through no more than five or six intermediaries.

Recruitment agencies said recently that Malaysian employers and those around the world are increasingly using Facebook, LinkedIn and microblogging site Twitter to screen job applicants, in order to look at their professional and cultural fit with the organisation.

With Malaysia’s Facebook population now numbering a whopping estimate of 13.3 million users, this could pose potential risks to job hopefuls who tend to live their lives out on Facebook or other social media outlets.

As a result, a racial insult, religious threat, the incessant use of vulgarities or any evidence of inappropriate behaviour on these easily accessible social networking sites, could cost these candidates their dream job.

“Based on what some of our clients have shared with us, there have been incidents where they reconsidered a candidate based on disparaging comments made and inappropriate pictures of heavy drinking and partying uploaded on Facebook and Twitter,” Randstad Malaysia director Jasmin Kaur told The Malay Mail Online in a recent email interview.

“For example, an organisation refused to hire a candidate due to a blog post which included racist comments.

“With personal and professional lives colliding on social media, we encourage all candidates to take greater care in managing their online profile in accordance with their career aspirations and goals,” added the recruitment agency official.

Jasmin said that a potential hire’s background and character can be better gauged through their social media profiles, instead of a formal job interview, where every individual tends to be on his or her best behaviour.

“Social media screening also allows employees to find potential red flags on a candidate such as inappropriate behaviour, negative commentary on past employers or discrepancies in their education qualifications and work history,” she said.

“Turn-offs for employers include inappropriate posts on controversial issues, personal pictures of partying, complaints about employers and co-workers, and evidence of illegal activities like drug consumption,” added Jasmin.

Even grammatical errors and spelling mistakes on a Facebook status update can make all the difference as it speaks of a job candidate’s attention to detail, she said.

Muslim, however, differs when it comes to photos of partying or consumption of alcohol on a job candidate’s Facebook profile. 

“That shouldn’t concern us. It shows that the person has a social life. A lot of employees have a party life,” he said.

Like Jasmin, he also noted that discrepancies between an individual’s resume and Facebook profile could show up in cases where the candidate was terminated from their previous company and did not list it in their CV, but left it on their Facebook profile.

According to Jasmin, a job candidate’s online profile is also particularly important in roles like digital marketing as it would reflect their skills.

As such, recruiters are now cautioning Generation Y — or those in their 20s and early 30s — to be wary of what they post on social media.

“Many have spent their teenage years constantly updating their social media networks on almost all elements of their lives, and may find it more difficult than their older counterparts to distinguish what should be kept personal in order to protect their professional reputation,” said Jasmin.

A survey conducted by online recruitment company JobStreet.com in March showed that 17 per cent of employers screen a job candidate’s social media profiles, like Facebook and Twitter, based on a sample size of 394 employers and 379 employees in Malaysia.

“Since social media like Facebook is used by many, it is not surprising if an employer would search for a candidate’s profile on their own to get a glimpse of who you are outside the confines of a resume, cover letter or interview.

“This is usually done as part of a reference check before hiring someone,” JobStreet.com country manager Chook Yuh Yng told The Malay Mail Online in a recent email interview.

“Employers are looking as to whether or not a candidate presents him or herself professionally online, as a wrong hire will often prove to be costly to an organisation,” she added.

Chook said a job candidate’s values and ethics would be questioned if they often badmouth and criticise others on social media, or if they post provocative and explicit photos. English-language skills would also be evaluated through Facebook posts or tweets.

“Your soft skills, what you write, reflects your capability to communicate to management, clients and colleagues,” she said.

Chook also pointed out that the survey showed that 81 per cent of employers believe social media is an important business tool that can be used to interact with prospective customers.

“It is an extra advantage if job candidates are active or well-rounded on social media and know how to use the platform well,” she said.

Chris Mead, regional director of recruitment company Hays in Malaysia and Singapore, said social networking sites have transformed the recruitment process for both employers and job candidates in Malaysia, and across the globe.

“Platforms such as Facebook, Twitter and LinkedIn now reach over one billion users, with unprecedented levels of private information being publicly available within a click,” Mead told The Malay Mail Online in a recent email interview.

“Employers are looking at candidates’ social media profiles in order to gain greater insights into the candidates they’re considering hiring. That’s why maintaining your online profile is a vital part of career management.

“We advise candidates to think carefully about what they share and where. If it’s something they wouldn’t want a new employer to see, then they shouldn’t post it.

“We also recommend to candidates that their online profile and offline CV match, and to adjust their security settings so only their private network can see their personal information,” he added.

Kelly Services Malaysia managing director Melissa Norman said that recruiters are increasingly using social media to hunt for job candidates, citing Jobvite’s 2013 Social Recruiting Survey.

The US survey showed that 94 per cent of employers across industries are using social media in their recruitment efforts, up from 89 per cent in 2011 and 78 per cent in 2008.

The top three social networks for recruiting this year are LinkedIn (94 per cent), Facebook (65 per cent) and Twitter (55 per cent), according to the survey that was conducted in June among 1,600 recruiting and human resources professionals in the US.

“There was once a mindset that some social platforms were for professional life, and others were for social life, but the reality is, they are beginning to blend,” Norman told The Malay Mail Online in a recent email interview.

“Work colleagues are now in our social networks; and social media is being used in business operations for good times and bad (politics, promotions, and emergencies), and to connect professionals.

“Kelly Services Malaysia is a good example with employment of professionals from across the globe, in particular the UK, US, India, Bangladesh, and others,” added the recruitment specialist.

Recruiters also agreed that recruitment done through social media provides better candidates and saves time as communication is quicker and screening is easier, according to Norman.

“An upside for candidates searching for job opportunities and connecting to future managers and colleagues this way is the familiarity they build even before starting a role,” she said.

Camily David, a recruitment manager in an oil and gas company, said that she uses Facebook and Twitter to screen candidates for senior managerial positions on a case-by-case basis.

“Sometimes, when the candidate goes MIA or doesn’t respond to our calls or emails, and we still have to constantly chase and follow up, then we will do a background check (on social media),”

David told The Malay Mail Online recently, using the acronym for ‘Missing in Action’.

“Always remember that somebody out there in the corporate world is always looking at your profile, and that people with authority have the right to use your social network or social profile against you,” she added.
 


 

4 clever ways to connect with POWERFUL PEOPLE

4 clever ways to connect with POWERFUL PEOPLE



Would you like to have a famous author, prominent entrepreneur, or well-heeled venture capitalist in your network?

Of course. But they almost always appear out of reach. Unless your cousin went to college with Malcolm Gladwell or your dad spent his teens spinning records with Richard Branson, it may seem like there’s no way into their inner circles.

 

Some people try anyway, sending industry leaders “cold call” emails with blithely optimistic requests: Can I buy you a cup of coffee? Could I pick your brain for an hour? Maybe we can schedule lunch? Those messages get ignored, and for good reason: they’re insulting to any successful, busy person.

 

It’s not arrogance that prompts people to decline invitations; it’s the only way they can cope. No one has an hour, a half hour or even 10 minutes to spare on a stranger who doesn’t have the sense to lead with a value proposition. The real question is, what can you offer someone who’s better-known or more famous than you are?

 

Here are four suggestions for how to get noticed:

1. Interview them

You’ve heard a million times that in the Internet era, we’re all media companies and publishers.

 

Leverage that. Asking to interview someone is a little used, but highly effective, strategy in connecting with A-list leaders.

 

You’d be hard-pressed to find any top business executives who’d agree to a half-hour coffee to share career advice with a total stranger.

 

But thanks to the democratization of media, it can be as valuable for them to speak with a blogger as it would a member of the mainstream media.

 

If you want the opportunity to ask targeted questions and learn from the best, start a blog or podcast, and you can rapidly build relationships and become known as a connector and curator.

2. Write about them

In the Internet era, you can often get the attention of industry leaders without even attempting direct contact.

 

When I mentioned “Getting Things Done” guru David Allen in a casual aside in an article, he reached out to me directly with a thank you and follow-up Skype chat.

 

If you consistently retweet someone’s posts, comment on their blogs or mention them in your writing, they’re likely to take notice.

3. Do them a favor

It’s only human to feel impressed when someone makes a special effort for you.

 

Everyone knows you should “give before you get,” but too few professionals realize that with a little ingenuity, they could be cultivating lifelong fans.

 

If you’re following an industry leader’s Twitter feed and they ask a question where you could help — restaurant recommendations, links to relevant research or the like — take the opportunity to respond.

 

They’ll likely be appreciative.

 

Think through other ways you can offer value, too.

 

 I’ve learned powerful lessons from people like Zen Yinger, a North Carolina-based social media consultant who secured a major television interview for me when I was in town on my recent book tour — without my ever having met her in person. You can bet that made an impression.

4. Make yourself interesting

Sometimes the most important part of making a connection is the personal and professional development you’ve already done.

 

Michael Ellsberg, author of “The Education of Millionaires: It’s Not What You Think and It’s Not Too Late,” has written about how he made important business contacts by sharing marketing advice, as he’d developed an expertise in copywriting and direct marketing.

 

He writes:

If you know a lot about vintage wine, or gourmet cooking, or fine tequila, or tango dance, or travel in Latin America or Southeast Asia, or Buddhist meditation and philosophy… or some other interesting, cool, hip, unusual, sexy hobby or interest, it’s very likely you’ll be able to share your gift among people you want to connect with.

 

Successful professionals like meeting compelling new people. But in a noisy world, it’s nearly impossible to stand out. These four strategies can help you connect with the powerful people you want to meet.

- Business Insider