Hey guys,

I (CS) am actually on vacation the past week and unfortunately the team at MMM is still too small for us to have someone take over from me just yet so we’ll resurface the best of the summaries over the past 4 weeks.

We’ll see you back here next week and if didn’t know already, there is a free program that will teach you the foundations of money. It’s what allowed me to travel a lot this past year (2 months in 6 countries) with an income of 4000 / month.

From Our Own Site

Money 101
How much do you think you would need to make in a year be able to backpack one month in Thailand, Laos, Vietnam and then go to Estonia for another month?

I was able to do it making RM 48,000 (or RM 4000 / month) and still be able to live a pretty decent life during that whole process.

The reason that was possible was because I understood the fundamentals of money. And now you can too.

This program has been in the works for over 12 months now and it’s finally ready to be shared. It’s also what I believe to be the foundation of personal finance and what I believe everyone should have access to which is why it’s free.

Anyway, I do hope you go through it and share your thoughts 🙂

BigPay Malaysia Review
Now that I’ve been able to use my BigPay card for the past month, I can finally do a review. And the results are all pretty positive.

How to stop spending money on the boring to spend more on the exciting
One of my fundamental beliefs with life and money is that you need to spend as little time and money on things that you do not enjoy in order to spend the most time and money possible on the things that you do enjoy.

And those things you do enjoy should ultimately be somehow connected to your ideal life you’d like to live.

From traditional media

New unifi 100Mbps plan at RM 129 per month

We’ve mentioned this a few times before, but a few broadband companies are reducing their prices quite significantly. TM’s unifi will be offering their 100mbs plan at 129 / month. However, this kind of speed is a waste of money for those who only watch Netflix / Youtube / game. You will be able to do it all using Maxis’ 30mbs plan that goes for 89 / month. This would save you 40 / month compared to TM and probably close to 100 / month compared to the current play that you’re on.

It’s also the plan that I plan on getting (unless TIME internet comes up with their pricing).

LRT3 likely to resume with reduced budget and revised plan

I feel like this topic has been going back and forth from not happening to happening. I’m a huge fan of public transport. Not only does it make getting around much easier, but it frees people up from paying 20,000+ in car related expenses each year.

Anyway, I do hope this is the final decision.

Buy and sell stocks online
It looks like trading stocks has just become a little easier with Rakuten Trade Malaysia. According to this press release, you can open one of these accounts online in less than 2 hours.

Also, they claim to have the lowest commissions which is always nice.

Maybe it’s time for us here at MMM to test it out ourselves and let you know our thoughts.

From local Malaysian bloggers

Malaysians Need Financial Literacy

The rate of bankruptcy in Malaysia is rising because are not able to manage our finances. This is especially true for many fresh graduates that have just started their working careers and earning an income. Spending all that you earn (or sometimes more than you earn!) without thinking for the future sucks you into a whirlpool of debt that threatens to drown you.

Who can disagree with the fact that people are not able to manage their finances is the reason for the increase in bankruptcies?

It’s an issue throughout the world.

However, I don’t think that “managing finances” is the root of the issue. Instead, the root is from a lack of clarity on the life that we ultimately want to live. For example. If you knew that your ideal life consists going to see the fjords in Norway next year, would you go out and buy a new car this year if you have a car that works perfectly fine?

fjords in Norway
This or a new car that you really have a use for?

Oh, and a shameless plug, we just released our free money 101 program.

Your Idea of Being Rich Is Probably Wrong

Based on Malaysian benchmarks, here’s how much your household (e.g. you + your spouse) needs to earn to be in either the Bottom 40% (B40), Medium 40% (M40), or Top 20% (T20):

Malaysia Benchmarks (earnings for households)
B40: below RM 3,860 / month
M40: between RM 3,860 to RM 8,319 / month
T20: above RM 8,319 / month
Top 1%: around RM 25,000 / month

Other highlights include:

  • To become rich, make sure your net worth is always growing (assets – liabilities)
  • The process of getting rich is actually quite boring because you’re always trying to make sure you spend less than you make
  • What’s marketed as being rich is actually going to make you poor because all those things they show lose value (are not assets)
  • You should reduce your spending on things that you don’t care about so that you can spend a lot more money on the things that you do

Ideas From Around the World

The Average Household Net Worth In America Is Huge!
I’m putting this article up to show you how dangerous statistics can be to paint a picture.

In this article, the person talks about how the average American’s income has gone from $551,300 in 2013 to $692,100 in 2016. (He actually then starts to talk about a different statistic which I go into here)

That is technically true (assuming the data they collected was true). However, that’s not really a cause for celebration.

Let’s use this example to understand why. Let’s say we have 99 people in a room, with net worth of RM 10,000 a year. Then all of a sudden, we have Jho Low walk in with all the money he’s stolen from Malaysia. We’ll just say RM 1 billion. What is the average of the room? 10 million. Does that mean that everyone is doing well for themselves, that the average malaysian in that room is filthy rich?

A better number to use in this type of scenario is to look at the median. The median is literally lining up all the numbers in order and then taking the middle number. In this case, we see that the median number is $97,300. Still better than the median of 83,700 in 2013 but very different than the ~700,000 that was being reported.

Anyway, the point is be careful around the way people present the data.

The Magic of Getting a Month Ahead & How to Do It

The way that they are thinking of money here is quite unique! The idea is that instead of timing your bills to come in after your paycheck (or what they call your bills waiting for your income), you would have your paycheck wait for your bills.

In the first scenario, it feels as if you have no control over the situation. However, in the second scenario, you are in full control. The money is already there and waiting.

The key in being able to do this is to be living off your previous month’s income so that this month’s income is fully ready to be used. And who knows, maybe after some time, you’d have 6 months of expenses saved up (which means you’ve built up your rainy day fund!)

Saving for Tomorrow vs. Living for Today

The whole “save for tomorrow or live for today” dichotomy just seems silly to me. I live for today every single day of my life, and I save for tomorrow pretty hard, too. […]
I live for today every time I put down some relatively unimportant task and instead go to the park with my kids and toss a frisbee around with them. […]
I don’t need a flashy trip to live for today. I don’t need a huge house to live for today. I don’t need to do something dangerous to live for today. I have a ton of things in my life right now that are well worth living for today. […]
To put it simply, I save for tomorrow so I can live for today with almost no worry.

This piece really puts a lot of things in a different perspective. Here at MMM, one of our main messages is to get your money to create your ideal life. But we don’t really go into the ideal too much. Maybe it’s something you’d like us to explore more? If so, let us know in the facebook group

Cool Opportunities

I have decided to show these opportunities to you because I believe that they are some of the best ones out there and in many cases, are ones that I am personally involved with or am looking to get involved with.

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.