Things which you need to think about..

1.) Marriage.


Unless you plan to be a bachelor for life, ( which is not a bad thing and might be your calling in life), we need to start thinking and planning for it.

An average wedding in KL = RM 50,000.( approximately)
An average wedding in Alor Setar = RM 30,000 (approximately)

I compared both rates with the highest standard of living compared to one of the lowest in our country. You do the math if you plan to get married somewhere in between.

You can always opt for a cheaper, smaller function. Or you could start saving and planning now to give ( for guys) something special to your wives which they've already started dreaming since they were 9 years old.



2.) House



Nows'aday, a normal terrace unit in KL costs approx RM 250,000.00 to RM 400,000.00

A condo unit costs approx RM 150,000.00 to RM RM 250,000.00


Even if you get a house loan, you have to pay down payment of 10% for the house. There's even 0% down payment also. But you pay till the cows come home.

Down payment for house = RM 25,000.00 ( approx)


3.) Car.




( I lurve this baby)

Down payment for car costs RM 10,000 to RM 20,000. Up to the buyer's capacity.

The higher the down payment, and the higher your installments, the less years you have to pay them.

We put the down payment as RM 10,000.00 (approx)


What I'm trying to show here, is while we are going on with our daily lives everyday, soon we will face with these big commitments in the future. It is foolish to ignore all these, and 'hope for the best' when the time comes. I'm not ruling out the element of faith, as I'm a devout Christian myself. If God decides to bless you and support you financially when the time comes, then glory to God. But that doesn't mean we bamboozle all our money now, live for today and spend lavishly. God also told us to be good stewards of money.


Look at the figures above again. Do you have the money right now?
If Yes, then good. Cos it's not what you accumulated. It's mom and dad's sweat and blood put into proper savings and investments that's given to you. Go back and thank them now.

If no, don't worry.

Let me show you something.

I always tell my clients that though we don't have the money, we have another more important element on our side.

Time.


Putting your money aside every month, with a good return will yield this.

Behold the magic of compound interest.

1.)
Initial principal = RM 0.00
Money saved per month = RM 300
Money saved per year = RM 3,600

With a return of 8% per annum,

Money accumulated after 5 years = RM 22,809.34

Down payment for car settled.


2.) Let's say you already have some savings in the bank, say RM 5k. And you can only afford to save RM 150 a month.

Initial principal = RM 5,000
Money saved per month = RM 150
Money saved per year = RM 1,800

With a return of 8% per annum,

Money accumulated after 5 years = RM 18,751.31

30% of your marriage settled.


3.) Ok, let's say you're reeeally tight.

Initial principal = RM 0
Money saved per month = RM 50
Money saved per year = RM 600

With a return of 8% per annum,

Money accumulated after 5 years = RM 3,801.56

if put it as 15 years,

Total accumulated = RM 17, 594.57


Think I've said enough. It doesn't really matter how much you earn. It's how much you save. A millionaire and can RM 1 mil a month and save only RM 300 a month. A teacher can earn RM 2.5k a month and save RM 1k a month. Who you think will be more financially stable?


Start thinking for yourself. Start thinking for your future family.

Remember. The key is to start early.


Ja.