I learned this tips to save from my father. My father was only a heavy equipment operator in Port Klang but he has the very good financial principles back then, that were :
1. Do saving
2. Never get loan if it is not necessary.
1. Do saving
My father did saving monthly from his salary, not only for him but also for mom and us, the children. Everyone of us (siblings) has a tabung haji account. He will opened an account once we were born, so all the gifts money will be deposited into this account. This account was open for the purpose of education and performing haji for everyone of us. My father made an arrangement with his HR department to make a commitment of contributing RM50 per month for each account that he opened for his children and wife. That means every month our sibling's tabung haji account will have saving of RM50 per month including my mother.
2. Never get loan if it is not necessary.
My father bought all his vehicles (Toyota KE, Honda Accord and motorbike) on cash basis. Therefore he never bought a brand new car as most of the time only used car that he can afforded as he paid cash for it. He will only bought the car when he has enough saving to buy with cash. He will never agreed with interest rate as for him interest rate was not fair. The only loan that he made was for the single storey terrace house that he bought in mid 80's and the loan was not from the bank but from the Koperasi Pekerja LPK in which has the very low interest rate as compared to banks' interest. From his saving he managed to purchased a land and saviour to the family land which was nearly auctioned by the bank due to the failure of his brother to settle his loan.
These two basic financial principles has taught me to manage my financial commitment. I can't afford to hold on to my father's principles but I use it as a guide. From my point of view as per my experience :
Every working people must :
1. Do saving : Regardless how little is your salary , do saving as little as RM1 per day or RM5 a month. Keep your saving in either Tabung Haji or ASB/ ASN.
2. Do loan that could give return to you : Yes all loan has an interest rate and you have to pay for the interest rate but make sure the loan that you make is for investment such as property , ASB/ASN or vehicle (as this would bring you to work - this is a kind of investment). Never commit yourself for a personal loan or loan for marriage (loan untuk kahwin).
As a Parent :
1. Open an account for your children as early as they were born. Try to make a monthly contribution to your children's account via standing instruction to the bank or salary deduction to their account.
2. Ensure that whatever your kids received cash a gift is deposited to their account.
3. Never encourage your children to do loan. There is trend where parents use their children's name to buy property. Their excuse of buying properties using their children's name is for the future of their grand children, but the fact is they are actually burdened their children with a loan commitment that they may not afford to commit in the future. Should the parent wants to help their children to own a property they can help them by open up a saving account when they were young and use the saving to buy a property in the future. Letting your children to buy property you like and binded them with the big commitment beyond his capability to commit on a monthly settlement is very dangerous and may harm their life. Should the parents are wealthy enough to pass down the inheritance to grandchildren, they first have to ensure that their children have enough capabilities in financial. But this somehow will create unfairness environment as not every child has the same capabilities, as such the burden of commitment of loan that the children may not be equally divided amongst them. This will cause jealousy amongst the siblings. Therefore, it is not advisable to get your children commit to the parents' interest. The parents' obligation is to guide their children manage their financial, not let them involve with loan commitment. The children may looks proud of having parents capable enough to buy luxury properties without they realized the burden that they may have to face if the parents are not around and yet the properties are not solely belong to them. The parents should let their children be independent and be responsible to their financial as it will make them appreciate better for they have and will inherit.
4. Encourage your children to saving at their early age as they will more appreciate rather than in inheriting it.
I thanked my father for his guidance as because of his guidance made me managed to own 2 cars and used to owned a condominium (I made a lot of profit from selling this condominium) without a single cents help from anyone, not even my father or my husband. Now I am free debts after I sold my condominium and still have my 2 cars. Now I am enjoying interest from my FD and ASB. So instead we pay interest to the bank, now bank is paying interest to me.
This is only my 10 cents opinion, a fulltime housewife.
1. Do saving
2. Never get loan if it is not necessary.
1. Do saving
My father did saving monthly from his salary, not only for him but also for mom and us, the children. Everyone of us (siblings) has a tabung haji account. He will opened an account once we were born, so all the gifts money will be deposited into this account. This account was open for the purpose of education and performing haji for everyone of us. My father made an arrangement with his HR department to make a commitment of contributing RM50 per month for each account that he opened for his children and wife. That means every month our sibling's tabung haji account will have saving of RM50 per month including my mother.
2. Never get loan if it is not necessary.
My father bought all his vehicles (Toyota KE, Honda Accord and motorbike) on cash basis. Therefore he never bought a brand new car as most of the time only used car that he can afforded as he paid cash for it. He will only bought the car when he has enough saving to buy with cash. He will never agreed with interest rate as for him interest rate was not fair. The only loan that he made was for the single storey terrace house that he bought in mid 80's and the loan was not from the bank but from the Koperasi Pekerja LPK in which has the very low interest rate as compared to banks' interest. From his saving he managed to purchased a land and saviour to the family land which was nearly auctioned by the bank due to the failure of his brother to settle his loan.
These two basic financial principles has taught me to manage my financial commitment. I can't afford to hold on to my father's principles but I use it as a guide. From my point of view as per my experience :
Every working people must :
1. Do saving : Regardless how little is your salary , do saving as little as RM1 per day or RM5 a month. Keep your saving in either Tabung Haji or ASB/ ASN.
2. Do loan that could give return to you : Yes all loan has an interest rate and you have to pay for the interest rate but make sure the loan that you make is for investment such as property , ASB/ASN or vehicle (as this would bring you to work - this is a kind of investment). Never commit yourself for a personal loan or loan for marriage (loan untuk kahwin).
As a Parent :
1. Open an account for your children as early as they were born. Try to make a monthly contribution to your children's account via standing instruction to the bank or salary deduction to their account.
2. Ensure that whatever your kids received cash a gift is deposited to their account.
3. Never encourage your children to do loan. There is trend where parents use their children's name to buy property. Their excuse of buying properties using their children's name is for the future of their grand children, but the fact is they are actually burdened their children with a loan commitment that they may not afford to commit in the future. Should the parent wants to help their children to own a property they can help them by open up a saving account when they were young and use the saving to buy a property in the future. Letting your children to buy property you like and binded them with the big commitment beyond his capability to commit on a monthly settlement is very dangerous and may harm their life. Should the parents are wealthy enough to pass down the inheritance to grandchildren, they first have to ensure that their children have enough capabilities in financial. But this somehow will create unfairness environment as not every child has the same capabilities, as such the burden of commitment of loan that the children may not be equally divided amongst them. This will cause jealousy amongst the siblings. Therefore, it is not advisable to get your children commit to the parents' interest. The parents' obligation is to guide their children manage their financial, not let them involve with loan commitment. The children may looks proud of having parents capable enough to buy luxury properties without they realized the burden that they may have to face if the parents are not around and yet the properties are not solely belong to them. The parents should let their children be independent and be responsible to their financial as it will make them appreciate better for they have and will inherit.
4. Encourage your children to saving at their early age as they will more appreciate rather than in inheriting it.
I thanked my father for his guidance as because of his guidance made me managed to own 2 cars and used to owned a condominium (I made a lot of profit from selling this condominium) without a single cents help from anyone, not even my father or my husband. Now I am free debts after I sold my condominium and still have my 2 cars. Now I am enjoying interest from my FD and ASB. So instead we pay interest to the bank, now bank is paying interest to me.
This is only my 10 cents opinion, a fulltime housewife.
