Monday, November 27, 2006

Save now, Save later...

When should one start saving? Check out the follwoing examples to find out:

Scenario 1
Ali, 20 years old, saves $100 per month @ 5% p.a.

At 40 years old, Ali would have contributed $24,000, and earned an interest of $17,275

Total Savings = $24,000 + $17,275 = $41,275

Scenario 2
Billy, 30 years old, saves $200 per month @ 5% p.a.

At 40 years old, Billy would have also contributed $24,000, but only earned an interest of $7,186

Total Savings = $24,000 + $7,186 = $31,186

By delaying your saving plans, the same amount contributed would result in significantly lower returns!

Thursday, November 23, 2006

To refinance or not....

Some of us must be contemplating on refinancing our housing loans to enjoy the lower interest rates offered by other banks. So it it true that all who refinance enjoy great savings? Read on...

Usually, banks would offer you package deals like legal subsidy, free fire insurance or free property valuation to lure prospective home owners to refinance with them. To check if you can benefit from the refinancing package offered, you need to make sure you have great savings on interest charged. You also need to make sure to take note any hidden costs:

Example, for an outstanding loan of $3ook, the legal subsidy will usually be 0.4% of loan capped at $2,000. Hence, the actual subsidy will only be $1,200. However, standard legal charges averages $2,000. In this case, you will need to fork out $800 cash from your own pocket before you can enjoy any savings.

Besides the tangibles, make sure you take note of the intangibles such as the time and inconvenience for the refinancing process. Sometimes, the process might take up to 3 months to complete!

Happy shopping for your best deals!

Wednesday, November 22, 2006

Travel Planning

Its the season to be jolly...... :)

Many of us must already have plans on where to tour during this holiday season. Some fo us would have signed up with some great tour packages with various renowned agencies...

... wait a minute, are you missing out something?

Are you protected against:

1. Personal Accidents?
2. Travel Inconveniences? Loss of Baggages?
3. Post Journey Medical Expenses?
4. Overseas Medical Emergencies?

And other holiday adversities?

A well-planned holiday would be fulfiling, but having a well-thought out travel insurance plan will make your holiday even more enjoyable.

Send your email enquiries to for free quote today!

Good Debt Vs Bad Debt

I did a presentation during a public forum on "Good Debt Vs Bad Debt" two weeks ago. The objective of the forum is to help the public understand the debts better.

Millions of people struggle financially because the the power of debt leverage is used against them. Because of the consequences of abuse, many people fear this form of leverage.

There are three groups people in this world: The Poor, The Middle Class and The Wealthy.

Poor people would be those who are loaded down with bad debts, with no means to ever get out of their indebted situation.

Middle Class folks are those who denys any goodness in getting into debt, pays everything with cash and leading a life just over broke.

The Wealthy make use of debt as an instrument to create more wealth for themselves. So long they can afford to spend, the will pay on credit. Earn points to exchange for gifts, keeping the cash for emergency.

So if i were you, i would take up the renovation loan and keep my cash in some liquid investment (e.g. short-term fixed deposit) to earn interest and for emergencies.

Good luck!

Gorix, Self-taught Financial Guru