Archive for the ‘investment’ tag
Few ways to survive the incoming recession
I should be honest with you all. I’m one of the people who got badly hit by the recession due to stock market. A lot of people have been telling me not to play if I cannot afford to lose. And I must say that I’m ready to lose, but it doesn’t hide the fact that I am still quite poor now. I miscalculated during the last purchase and I’ve lost quite a lot (some of you should know how much I’ve lost). I don’t have much savings left (I told you I’ve miscalculated). =_= However, all those are paper losses. I will need to wait for 1 year or more in order for the market to rebound.
For now, I will have to resort to few ways in order to survive this incoming recession.
Stop eating outside if possible
Try to buy some vegetables and stuff to cook at home. I know it takes a lot of efforts and time but it does save significantly more. It’s healthier too. Avoid eating “good” food that might cost you a bomb. I used to eat “good” food quite often in the past (that explains why I have high cholesterol) and it’s not cheap at all. Maybe this proves to be a turning point for me to save money and the cut down on my cholesterol.
Stop buying unnecessary things
Always remember about the assets versus liabilities argument. We all have a lot of WANTs and sometimes, these WANTs might take up a more important role in our heart than our NEEDs. That cool looking gadget, or that beautiful dress. Oh wait, there are sales and things are cheap! Should buy while we can! No. We should not buy if we cannot afford. Remember that cash is king now. Don’t be tempted to buy unncessary things because in the end, you will not know when you might need those money. Also do bear in mind that the job market can be quite unstable nowadays. Focus on the things you need, and also on assets which will appreciate, if possible. For example, it’s better to buy gold (commodity) now than to buy that shining looking diamond. And if there’s really something you really wanted to buy, seek cheaper options such as buying second hand items or discounted items (only if you really want them). Also, sell the things you don’t need on eBay or Lelong. That should help.
Save up
Try to save up to 10% of your monthly income (minimum). Minimize on unnecessary spending, as mentioned in the point above. The saving which you accumulate will be useful when things don’t go your way. You can also invest them in other places if you want to.
Try to earn some side income
I’m currently trying to earn some side income by doing extra works at home – writing reviews online, talking crap, etc. Some of my friends said the total amount I earn from these is not that significant if compared to the amount of efforts I’ve put into them. True, they’re not wrong but to me, every penny counts now. It’s better for me to earn some side income than to sit idling around. If I have something (WANTs) I really like, I will make sure I’ve earned enough before I can buy them.
Improve myself
Whenever I am free or at home, I will try to read more non-fiction books to improve myself and to motivate myself. I feel that these book teach me how to lead a more meaningful life. Also, I will read biographies of the people I respect such as Warren Buffett. I like to know what mistakes have they done and ensure that I will not repeat if I were to follow their footsteps. Also, I will try to improve my writing skills, my English and my technical skills (though this takes up quite a lot of time, I must admit). Who knows, maybe all these soft skills will prepare me to embrace the incoming recession.
Always have a backup plan
What if I’m being terminated by my company and become one of the many jobless people out there? I need to ensure that at that time, I will be good enough to join other companies in order not to remain jobless. What if my side income works don’t work out? I will need to see if there are any other opportunities. What if my stock investment doesn’t recover? All these things have to put into consideration and always have few backup plans before the real thing actually hits you hard on the face.
All these are based on my own personal opinions. I’m not sure about you all. But there’s one thing which you all should know, start to save more and keep your cash with you. Work harder to earn side income. And keep on improving yourselves. But once in a while, do remember to take a break.
Hope it helps.
New blog
Hi all,
I’ve started another blog on money making and investment called The Novice. Feel free to drop by.
The blog is more of a niche blog, talking about my journey as a novice in money making and investment. I do hope that I can share my research/findings with other people, and maybe the readers will correct me if I’m wrong. I decided to move all my opinions on investment and money making to the new blog. In other words, this blog of mine will be a little less “rojak” or cluttered.
By the way, the new blog is targeting those who are new to investment since there are way too many blogs on expert investing out there…and…I’m not that good to write like them yet. =_=” Thus the name “Novice”.
Anyway, I’ll continue to post more regularly here on topics such as career, motivational, life, passions, dreams, anime and PS3.
Malaysians’ buying power….reduced…again?
As of last month, Malaysia’s inflation rate has shot up to 8.5% which was the highest in 27 years! Yes, you heard that right, 27 years. Gone were the days when we heard our leaders promoting 0% inflation rate (i think I last heard about that when I was in primary school). Gone were the days when our Ringgit Malaysia currency was higher than Singapore Dollar…….and we could go to Singapore and shop happily. Gone were the days when RM 2000 a month for a fresh graduate could be considered as “good”.
And gone were the days when our nation carried the hope of minimizing poverty in the country, thanks to words n promises from our leaders.
The reality all of us Malaysians are facing is this – our not-so-strong buying power has been reduced again and I’m afraid the number of poor families are going up…rather than going down.
Just look at the number of articles related to people suffering from the inflation – “Real people, real pinch“, “Housebuyers cry for help“, “Change in eating habits“, “Going domestic to cut cost“, etc. All these articles are from The Star Online. Imagine if you try to go New Straits Time, Malay Mail, Sin Chew or even try to Google. How many such cases would you encounter?
The latest budget 2009, from what I saw (i just went through it briefly), does look like it can help a little with the house loan stuff, the reduction for import taxes (but i believe…poor families don’t really have the luxury to buy that much imported stuff…no? and the richer families would be facing problems with fuel and food price….), and also subsidies for certain food …but….i don’t seem to notice anything about subsidy for rice? Is it because of the recent worldwide rice shortage problem? I’m not sure.
Well…no matter what….there are just things that we cannot control….the new Budget 2009….the rice crisis….the energy crisis….the economy downturn…. But there are few things which we can control
- Control our $$$ better – put them in safer places such as defensive stocks, FD, etc.
- Avoid eating too expensive food.
- Stop smoking and drinking because those 2 can cost a lot.
- Avoid eating outside. Cook at home is a much cheaper option.
- Plan your journey ahead. Avoid getting stuck in jam because the amount of fuel consumed is not worth it.
- Resist the temptation to buy expensive gadgets (telling myself).
- Plan your vacation to be simple….like going for domestic destinations instead of going abroad.
- Fully utilize the tax exemption stuff. There are a lot of things which you can save $$ on, by utilizing your rights as a taxpayer.
- If you can avoid buying a new house…then don’t buy it now since properties cost a bomb nowadays (material cost going up). Try to rent or buy older properties (if you insist on buying). If you insist on buying the newly launched properties, then be prepared to pay a lot.
- Indulge yourselves in cheaper hobbies.
- Find other food options other than rice.
- WORK HARDER! Look at other opportunities…such as selling insurance, mutual fund, or other part-time jobs.
I know there are a lotttttt of other things which we can control. In the end…i feel that the most important thing to do is not to give up hope…be positive. I know sometimes it’s hard…but I believe that if you’re positive and optimistic, there are a lot of things which you can achieve.
p/s……..do remember though, our Central Bank aka Bank Negara has not increase the interest rates. I fear that there will come a time when the Bank Negara is forced to increase the interest rates…..so be prepared to have a much higher inflation rate.
Advice for real estate agent wannabe – quit now
I came across Seth Godin’s post on “Advice for real estate agent (quit now!)” and find it very useful.
The real estate industry has been very popular over the last few years. Many people are getting homes for themselves and many more who are starting to invest in properties….hoping to gain a big profit from it.
I nearly got into real estate investment before but I don’t have the money, and I don’t have the guts to use other people’s money to do it (in this case, bank). Furthermore, I realized that there are too many investors and too many properties……..perhaps more than our nation’s need for them.
Don’t get me wrong. It can still give you a big profit if you are good at it.
But every property investor needs a good real estate agent. No, no matter how much you try, it will never be easy if you become your own agent. You will still need a real estate agent who knows his stuff. And believe me, you can find A LOT of them in Malaysia.
Hope you’ve taken some time to read the post linked above. I believe it is relevant not just to real estate agent, but for everything else. Be something you are good at…be a specialist. Rather than trying to become the best real estate agent in Malaysia, maybe try to become the best real estate agent specializing in studio apartment in Bangsar.
Hope it helps.
