It’s been awhile. Sorry about that! I’m currently backpacking around New Zealand and will be here for another 2 weeks. It’s been a blast but now that I’ve done most of the overnight activities, hopefully the summaries go back to becoming weekly.
Money in Daily Life
Saving regret — and how to avoid it
The researchers found that two-thirds of those surveyed said they should have saved more when they were working: “66.6 percent said they would save more if they could re-do their earlier life.”
It seems like most people don’t run into a saving regret until something negative has happened. This could be a major bear market in the world, to losing a job, to running into some sort of medical condition (which is why we believe in getting insurance to make this medical condition less problematic.)
Besides that, you can reduce the chances of regret in the future by doing the following
Should Women Be Investing Differently Than Men?
- Forecast the future (that is, plan for the future)
- Plan for the problem – though you can’t guess the problem, having an emergency saving fund is always beneficial
- Be proactive
- Master your money (you can start by taking our free program Money 101)
- Save more
The notion that one’s gender might factor into their investment strategy is based on various realities women face, including that, on average, women live longer than men, make less money, and typically spend fewer years in the workforce (which results in lower Social Security income). Women also have higher healthcare costs due to their longevity.
According to this blog, women tend to live longer than men (81.3 years vs 76.3years) and women are typically paid only 82% of what men are paid. This makes their investment plan needs to be slightly different.
According to this blog, the suggestions are:
- Don’t leave so much in savings – it needs to be invested
- Look at your stock to bond ratio – it most likely needs to have more stocks
- Maximize the power of compounding returns – since in general women live longer, there’s more chances for them to take advantage of compounding returns
- Diversify with International Exposure – in the long term, emerging markets will do better and women more time to see that happen with the investments
I personally think that there is something to be said about women needing to have a different investment plan than men especially because they tend to live longer. But it’s not only that. Because women are also the ones to have to go through child birth. This is actually why we’re also huge fans of this female specific insurance plan that also acts as a savings account.
How to Calculate Your Net Worth: A Complete Guide
Understanding your net worth is the key to understanding where you are financially so that you can properly plan for the life that you want to live. Here are the steps required to find your net worth:
- Step One: Set up a spreadsheet
- Step Two: List your assets
- Step Three: List your debts
- Step Four: Get accurate numbers
- Step Five: Track on a regular basis
Although there aren’t a lot of steps, some of these steps require digging through a lot of information. If you’re finding this whole process daunting, try working with a financial planner that you can trust (or work with the one that we trust).
The Biggest Money Saving App in Malaysia
Saving money is something we all aspire to do. New Year Resolutions, birthday wishes, a wake-up call in the form of bills – all sorts of realizations, but it never works. The urge to spend is constant. Who, after all, could pass up the chance to dine at that Italian restaurant?
This blog talks about the Entertainer app which essentially gives you a bunch of deals on food, activities, and holidays. The deals are typically buy one get one free.
That said, I have never used this app before but I do caution people who are interested. Remember, it’s one thing to be planning to go eat out and then using this to save money. It’s a completely different thing to decide to make a purchase when you originally had no intention to do so simply because of the “savings”.
By the way, it seems like you will need to pay some sort of fee to unlock the discounts.
15 lessons on money and marriage from couples who have been married 10+ years
The 15 lessons are:
- Make sure you have chemistry when it comes to money
- Don’t try to change the other person
- Talk openly with each other about where you’re starting from financially
- Understand one another’s money mindset
- Talk about money — A LOT
- Have frequent money dates to stay on the same page
- Make big financial decisions TOGETHER
- Find a financial division of labor that feels right to you
- Make sure you both know the important stuff
- Don’t micromanage one another’s spending habits
- Maintain separate Passion Funds for your personal interests
- Set ground rules for what gets discussed, and what’s Guilt-Free Money
- DO NOT hide your spending from your spouse
- Lean on each other when times get rough
- Make sure you have the money fundamentals mastered
On the last point – if you want a place to start mastering the fundamentals, try our FREE Money 101 program
5 Things to Consider When Managing Money in a Relationship
Combining finances with your partner is a game changer. By pooling your resources and sharing expenses, you can end up with stronger growth potential and a larger safety net.
- Divide Discretionary Funds Equally
- Recognize Each Person’s Priorities
- Meet with a Financial Planner (we have partnered with a financial planner after vetting through their process)
- Check in Regularly
- Address Problems Early
Want To Have Your Money Accelerate Your Goals?
Sign up for our free program and get ready to have your money fuel your aspirations.
Grow Your Wealth
What Is Your Credit Score?
You may have heard the term “credit score” thrown about often enough whenever there is talk about loans and lending. Here we go through 5 common questions about your credit score.
The questions (as well as a summarised answer) are:
‘Flesh and blood robots for Amazon’: These people raid clearance aisles and resell it all online for a profit
- What is a Credit Score?
- A credit score is a three digit numerical amount representing your creditworthiness.
- What is a credit reporting agency?
- A credit reporting agency gathers and searches information on individuals’ and businesses’ credit. They are provided with reports from lenders and various other sources and then they compile a credit report that includes a credit score.
- How is the CTOS’ credit score is determined?
- payment history (45%) – the longer and making minimum payments, the better
- current debt level (20%) – the lower the better
- types of credit used (14%) – the more types the better
- Length of credit history (7%) – the longer the better
- New credit accounts (14%) – the more in a short amount of time, the worse the score
- What is CTOS credit score ranges and what it meant to the lenders
- the key is to get your score between 744 – 850 as that will give you the best rate for interest when borrowing money
- Where to get your credit report (whether free or paid)?
Subtracting some taxes and fees, they’d clear US$6.16 in profit. All told, the Herbert’s 10-minute Target run earned them US$198.
Although this is news from the US, it gives you an idea as to what you can do as a side hustle. This blog talks about how people would go around finding really cheap deals in person and then sell those things online at a higher price, making them money right away.
This could also be something done in Malaysia using shopee and lazada.
If you’re thinking of trying it out, please let us know so we can document your journey!
Real talk about passive income: What it actually means to make money while you sleep
Real talk #1: Making money while you sleep takes A LOT of work while you’re awake
Passive income is something we all dream of. Making money without having to do anything. But honestly, there are a lot myths that simply aren’t true. This blog covers a few:
- Real talk #1: Making money while you sleep takes A LOT of work while you’re awake
- Real talk #2: Making money while you sleep doesn’t happen overnight
- Real talk #3: Passive income is not the only way to build a successful business
- Real talk #4: Just because you’re making money while you sleep doesn’t mean you’ll want to quit your business
- Real talk #5: Making passive income requires some very active choices
Even though I do make passive income right now (primarily from my one real estate), I spent a lot of time making that property give me enough money for it to become passive. And even then, it’s not enough for me to live off the money.
Knowing When to Hire a Personal Financial Advisor
People who are concerned over something will inherently seek out the advice of experts for a solution. The sick seek out doctors, those with car troubles seek out mechanic. What about those who have concerns regarding managing their finances? Let us introduce to you what a Financial Advisor does and when is the time to hire them.
According to this blog, the times when you need a financial advisor are:
- You are young and have little or no knowledge of managing your finances
- You have no inclination/desire or time to do financial planning on your own
- You want an objective and unbiased professional opinion.
- You had a major event/change in your life
- A personal financial advisor is useful for everyone
Not a fan of the last bullet, but I am a big fan of the first 3. Financial advisors can really help you create a game plan for you finances in order for you to live the life you’ve been dreaming of. However, the key with finding the right advisor is finding someone who actually knows what they’re talking about and one who you can trust.
That’s why we’ve spent so much time finding a company that has advisors we trust – in order to make your life easier.
Best Personal Finance Books You Need to Read in 2019
I haven’t read any of these books yet, so I can’t really have a stand. However, here they are:
- Happy Go Money: Spend Smart, Save Right and Enjoy Life by Melissa Leong
- The Financial Diet by Chelsea Fagan and Lauren Ver Hage
- Big Mistakes: The Best Investors and Their Worst Investments by Michael Batnick
- Work Optional: Retire Early the Non-Penny-Pinching Way bt Tanja Hester
- Why Didn’t They Teach Me This in School? by Cary Siegel
- End Financial Stress Now by Emily Guy Birken
- Reducing the Risk of Black Swans: Using the Science of Investing to Capture Returns with Less Volatility by Larry Swedroe and Kevin Grogan
If any of you have read any of these, please let us know what you think in our facebook group!
BigPay – The Best Travel Credit Card for Malaysians?
If you ever travel out of Malaysia and use your credit card, then this is BIG (pun intended). AirAsia has released BigPay, a prepaid mastercard that you can easily top up through the BigPay app and be able to use instantly.
But more importantly, BigPay charges you at the real exchange rate (which means they charge no fees). This is something you won’t get if you were to go to your bank or some exchange counter.
In fact, I plan on only using this when I go to Toronto in December.
Anyway, if you don’t have one yet, you can sign up for free and get RM10 free when you use referral code B7D3YNZPGO.
Talking to an Independent Financial Adviser
A big issue when you work with someone who calls themself a financial advisor is you do not know if they really have your best interest at heart. That’s one of the main reasons why I never work with any (the other one is that most of them get trained to say what the company wants and thus, do not know of all the other cool opportunities out there).
However, I’ve been talking to an independent financial adviser the last few months and I do believe that not only is she knowledgeable, but also super open to sharing her knowledge.
If you’re interested in talking to her, join our facebook group
and ask your questions. She will definitely find time to pop by and answer them.
Ready to get the highest quality information so that you can make the right choices? Check us out on moremoney.my