Women: Money does matter

Good news for ugly gentlemen!

From: http://kclau.com/blogging/women-money-matter/

A newspaper report caught my eye back in April with the title “Having a rich hubby matters: Ex-beauty queen.” A former Singaporean beauty queen admitted that she would not mind marrying an unattractive man with the condition that he is rich.

Singaporean women prefer men who have money over men who are good looking. This is the result of an online television survey conducted in Singapore. The women choose to have financial stability and a good lifestyle with the chosen man. A man who can meet the woman’s financial expectation has a better chance of being accepted by her. Therefore, the vote is for financial capability over good looks.

Women in the UK

A research done in the UK in 2006 however, discovered that a man’s good looks (physical attractiveness) rates higher than the man’s financial standing provided that the woman is making more money herself. Previously, the majority of women tend to prefer wealthy men. As women become more financially stable or financially independent, their preferences have changed. Hence, they prefer a physically attractive man over his net worth. However, for those women who have less control over their finances, they still prefer a man who is financially stable than one with good looks.

Personally I think that women are more realistic now and take into consideration an important life factor like money when choosing a potential partner. I believe a woman would consider other important aspects as well such as compatibility when choosing a life partner. I have yet to meet someone that got married based on the “money factor” alone. In a lot of cases, couples tie the knot because of love and wanting to spend the rest of their lives together as reported in a separate research done by a UK bank in 2008, which showed that nine out of 10 women would choose love and happiness over money.

What about the men?

Well, past surveys showed that men want good-looking women. There’s no harm to having money though as it was reported that British men (88 percent) are happy to be dating women who earn more than them.

What about you, what is your priority when looking for a potential partner? Is it someone with money, good looks or both?

Of course both la..................

Buying Money-Growing Trees

For me, buying stocks is like buying money-growing trees. Entering the stock market is like entering the money-growing tree market.

Dollar 'fruits' = Dividend
Growing tree = Growing companies

You went into the market and you have hundreds of different money-making trees to choose from. Their prices differ from one day to another, that is why so many people flock to that market on daily basis.

Some trees can grow bigger rapidly, and it can be sold to another buyer at a higher price later once it grows much bigger. Some may grow slowly, but they may produce constant amount of dollar 'fruits' every year. Some may grow fast and produce increasing amount of money from year to year.

But buyers beware!!! Some trees may not grow nor produce any dollar at all. Some may be dying or have a stunted growth. Some sellers even decorate their dying trees so that they look better and they can command a better price. Some buyers may lie to you that their infertile trees can produce heaps of dollar year in year out! Those who buy into these low-quality trees will regret later as they won't bear any dollar and no buyer will want to buy those trees.

Choosing money-making trees to buy is highly challenging, it requires certain skills and considerable amount of knowledge as well as emotional intelligence.

I started visiting this market around 5 months by now. I enjoyed choosing and buying bargain trees from KLCI. Watching them grow and bearing money give me immeasurable satisfaction. Currently I have 6 trees in my backyard and they are:

1. Dutch lady bought at RM13.00, currently at RM18.14
I bought it because it can grow bigger as well as producing decent amount of dividend.

2. Coastal Contracts bought at RM2.30, currently at RM2.26, dividend RM0.054
A cheap tree with sustained growth. Dividend is secondary.

3. Al-Hadharah Boustead REIT bought at RM1.33, currently at RM1.42
Bought this tree is mainly for dividend, I didn't expect the price has appreciated about 6.8% in a month's time since I bought.

4. Luxchem at Rm1.07, currently at RM1.06, dividend RM0.03
Bought it for dividend as well a moderate growth.

5. Mudajaya at RM4.37, currently at RM4.41
This tree has gotten itself into bad press recently, therefore it's price dived from RM6.10 to RM4.10. To my very limited knowledge, this company does not deserve such a bad press after all, therefore its current price at around RM4.00++ is definitely a bargain. Also construction sector is going to benefit most from recent government plans, I have confidence this tree is going to have a sustained growth.

6. Wellcall Holdings at RM1.28, currently at RM1.23, dividend RM0.025
Bought this tree mainly for dividend (constant 7-8% a year which is pretty good for me)

I hope my trees will grow slow and steady, at the same time produce some dividend for me along the way. =) =) =)

Label me a conservative man if you want, but I'll be happy to meet my target of 8-10% annual growth.

Happy investing in money-growing tree!!!!

How a Malaysian employee with salary RM4k a month becomes a millionaire without doing anything

The answer is.....................

Time and EPF!!!

I have been thinking of this for a while. As a 25 year old kid earning RM4k a month, I contribute around RM350++ to EPF monthly, then my employer contributes another RM350++, I end up saving around RM700++ a month or RM8400++ a year.

Lets say I constantly contribute RM8400 a year to EPF for 35 years (I'll be a 60 year old cranky grandpa), and EPF annual dividend is 6%:

RM8400(1.06^1+1.06^2+1.06^3+...............1.06^34+1.06^35)= approx RM1 million

Presto! I'll have RM1 million in my EPF account! Without me doing anything active. Of course if my salary increases and I contributed more to EPF as time goes by, it won't take 35 years for my EPF account to accumulate to RM1 million.

If someone decides to put RM700 monthly under his pillow for saving, hoping to save enough to be a millionaire:

RM1,000,000/RM700= 1428 months or 119 years!!! (Only your skeletons will be left to enjoy the status of being a millionaire) Once again we can clearly see the power to compounding interest (6% dividend by EPF vs 0% dividend under the pillow).

Want to be a millionaire faster? Then you'll need to put extra effort to find investment which can give you a higher yield then EPF's 6% and to save more than RM700 a month.

For example, if someone saves RM2384 monthly in an investment yielding 10%, he can accumulate RM1 million in 15 years.

Others who wants to be an instant millionaire can buy some Indonesian rupiah or Japanese yen.

Top 10 Heavyweights From Malaysia's Budget 2011

Our Prime Minister cum Finance Minister Datuk Seri Najib has given the country's budget 2011 today's late afternoon. With the reference of the report, below are the top 10 heavyweight highlights:

(1) Pay 6% service tax for watching Astro

Astro monthly subscription fee will be added with a service tax of 6% effective from next year. The relevant tax will be imposed on paid satellite broadcasting services.

(2) Toll rates in 4 highways will not be raised

Toll rates in 4 highways owned by PLUS Expressway Bhd will not be raised for the next 5 years, effective immediately.

(3) Family with RM3,000 or below entitled for 100% house loan

Introduction of "Skim Rumah Pertamaku" which will provide a guarantee on down payment of 10 per cent for houses below RM220,000 for first-time house buyers.

(4) Launch of Private Pension Fund

To revitalise capital market activities, the Goverment will launch a Private Pension Fund in 2011.

(5) Tax deduction of RM5,000 for veterans' medical expenses

Existing tax relief of up to a maximum of RM5,000 be extended to cover other expenses such as day care centre, cost incurred to employ caretakers for parents and other daily needs such as diapers.

(6) Low grade civil servants to obtain RM500

Special Financial Assistance amounting to RM500 to be provided to all civil servants from Grade 54 and below, including contract officers and retirees.

(7) Disabled citizens are tax exempted from buying national car

Disabled citizens are totally exempted from paying national car tax.

(8) Female civil servant maternity leave's extends to 90 days

Allowing flexibility to self-determine fully-paid maternity leave not exceeding 90 days from the current 60 days subject to a total of 300 days of maternity leave throughout the tenure of service.

(9) Tax exempted for branded handbegs & boutiques300 stuffs favour by tourists will be tax exempted instead of collecting 5 to 30% tax, including handbeg, clothes, etc. This is to boost up the local shopping market.

(10) To build 100-storey tower with RM5 billions

Another landmark project "Warisan Merdeka" which includes a 100-storey tower, the tallest in Malaysia, at a cost of RM5 billion to be completed by 2015.

HOW TO WIN ANYONE'S HEART WITH PLOPWALT-PDOPWANLT

PLOPWALT-PDOPWANLT stands for People like other people who are like themselves. People dislike other people who are not like themselves. Something like "like attracts like" concept. In Malay, we have this pepatah, "Masuk kandang kambing mengembek, masuk kandang harimau mengaum". An interesting concept I read from AhYap's blog , his blog contains many interesting thoughts and insights about life.

If u wanna build rapport with anyone or to win a girl/guy's heart, u can utilize this concept.

Sounds silly but basically you observe and mimic what they do. If they do not make eye contact, neither should you. If they like to say the word "f**k" or "ma cibai", u follow suit. If their culture is to hug and kiss, just follow suit even though our Asian culture is generally more reserved.

It really depends on how much u wanna win that person's heart and how much u wanna mimic or follow.

If you practise PLOPWALT-PDOPWANLT, the other person would feel that u have the same 'wavelenght' as their, u would instantly click with him/her as if u two have known each others for decades.

As for me, when my peers like to curse, I curse aloud with them. With my Malay friends, I use words like "tak aci la, emo la, skema la, korang la". With surgeons I use "range of movement, diabetic foot ulcer Grade 2A etc". Some friends who like to share dirty jokes, I have plenty to share with them too. =p

Some people might disagree and they want to be who they are. They might label it as hypocrite. I would rather call it 'adaptive'. I believe those who are inflexible and unwilling to accept different people's thoughts and behaviour will have to endure tremendous difficulties in life. Those who are observant, non-judgemental and adaptive will end up happier and more successful.

PARKINSON'S LAW OF FINANCE

Have u ever heard of Parkinson's Law of Finance? It states that expenses rise as to fill the available budget. In other word, it means that the amount you spent monthly rises according to your salary raise. The more you earn, the more you spend!

Story time again~~~~
Someone with RM5k salary monthly may want to take a loan to buy a RM80k Honda City, buying an IPhone4, brand new laptop, buying Padini clothes.

That someone may get a salary raise to RM10k monthly. Then he/she may want to take a loan to buy a RM160k Honda Accord, getting another IPhone, OSIM massage chair or weekly visit to masseur, frequent travelling, buying Miu Miu's or Prada's and taking a house loan for RM1million house in Mount Kiara.

So is that someone 'richer' when he/she is earning RM10k monthly? If 'rich' is defined as someone's net personal worth, I doubt that someone is better off when he/she is earning RM10k.

Does this someone sounds familiar to you? I think they are everywhere, including yourself!!

How to break from Parkinson's Law of Finance?

1. Be aware of . Next time you get your first pay or pay raise, be mindful of your temptation to spend more.

2. Be committed to save a portion of your salary. Lets say you wanna save 40% of your salary, when u earn RM5000, u save RM2000 monthly. If u earn RM10000, u save RM4000.

3. Pay yourself first. The next time u get your salary, the first thing you do is to put aside a portion of money for saving/investing. The remaining can be used for other expenses.

As for my own personal experience, my friend told me last year that once I started working as a doctor, my expense will increase dramatically. He said doctor is a professional job, therefore I must appear 'professional' in every aspects of my life. Or else my peers and the society will look down on me.

TOTALLY DISAGREE!!! Now, I have worked for almost half a year. I drove a 11-year old Proton Wira (bought with cash), using a brand new RM80 Samsung E1080, using a 2 year old Laptop and wearing clothes bought in pasar malam. Even most of my working shirts I got them second hand from my relatives. I have no plan to 'upgrade' any of those things. I don't feel degraded in anyway in front of my surgeons, friends or relatives. Haha maybe I don't have 'kiasu' gene in me, which I think is a good thing. I still can be a simple Ipoh boy. What's the big f***ing deal of being a doctor???

For those who looks down someone based on one's appearances, I have a picture for you:

RULE OF 72

Story telling time~~~~~~~~~~~~

Ah Lan save RM100k in an investment yielding 10% annually. All the annual interest will be reinvested. How long does it take to double his money to RM200k?

Using the rule of 72:
72 divide by 10 (the interest rate)= 7.2 years for the money to double to RM200k.

How about 2% annually like bank account interest yield. Lets do the math:
72 divide by 2= 36 years!!! Bloody hell!!!

Now u understand why financially smart people don't tuck most of their money in bank accounts... Losers!