How i start saving and over the year of modification and currently is the best suitable for mylife (Part 1)

If you refer back to the previous blog, since the day i receive mine first pocket money i had already started with the 3-3-3 saving method which taught by my parent to me. My formula is :-

• 33%on Emergency fund
• 33% on Leisure fee
• 33% on Daily expenses.

My thought back than was emergency money is equal to saving. Hence, i will continue save to this 30% regardless how much i have put it in. Soon two major problem i realize after i started my first part time work. 

Issue 1 : I will tend to withdrawn more from the Emergency fund to use as leisure when my colleague asking me out for hang out for various reason like discuss on new project venture or investment method (Guess i think only those topic attracted me as i did not favorable on gossip or watching sport) at Mamak stall or Starbucks after finish work.

Issue 2 : For odd amount like ten it is difficult for me to determine where should i saving. Sometime instead of saving i will think to spend it off to keep nine then ten (How naive). 

For Issue 2 this was easily solved. After i notify emergency fund is not equivalent to saving. Hence, I start my first insurance force saving during the age of 18 with one of my friend who just come out work as part time insurance agent for prudential. Then in age of 19 i was introduce by another friend who invited me to register and invest together in Amanah Saham Nasional Berhad (ASNB) a fixed rate unit trust by Permodalan Nasional Berhad (PNB).

For Issue 1 i solved by using budget control method. Which i share on 24 Jan blog (What you need to do before you start investment? If you interested can visit by this link : http://ourjourney06.blogspot.com/2021/01/what-you-need-to-do-before-you-start-to.html) Where i start to track every single cents by using a note book back in 2005. Soon i found that my finance health from negative turn to positive i am enjoying fun along the tracking. That is reason i keep advise my surrounding of people remember to mark down your expenses.

Since then i had modified my lifestyle my financial flow had become below formula :-

• 20% on Investment fund 
• 20% on Emergency fund
• 30% on Leisure fee
• 30% on Daily expenses.

With this additional 20% pump in to the fix rate unit trust (5% to 6%) + Insurance (3% to 4% break-even on at year six) which generate me averagely 4% soon i feel that this is not enough especially in year of 2008 i had been introduce a concept of entrepreneurship which i will need ever large capital to pump in so i can start my own team to focus on my project. Which lagging of time of managing my account separately which i enjoy to do previously to physically present to bank for the bank in and withdrawn process. I start to manage my account online with 4 bank with definition below :- 

Four online banking management or sharing by other call Four bank passbook management

• Definition : In order for this method to work well for you. You will need to have 4 saving account which set to be automotive transfer on your prefer date.
• Income Account : Function as receiving income and be the place where to store excess money for quick retrieve at ATM withdrawn or online transfer purpose.
• Emergency Account : Ideally to store >6 month monthly income. But for me i only store 6 month fix expenses (such as insurance monthly payment, transportation, meal expenses overall i add in +10% incase any thing happened). One i had achievement this target amount , shift this account to FSMone Money Market fund/fixed income bond fund to help me generate 2% to 5% ROI per annum.
• Investment Account : 50% of income to this account for ETF & Reits Investment (Which i using TD ameritrade + CGS CIMB which i not so active on stock back then). Once i getting the return of investment/dividend payout  i will transfer back to Income account and let it auto roll down as preset. 
• Expenses Account : 50% of income is in this account. When you have girl friend you will know how important this account is :)  Whenever i see there is left over money on 28th of every month i will maintenance the minimum amount inside and transfer the balance back to Income account to let it auto roll down as preset.

After the four online banking money management account establish i had spend very minimum time here and i spend more on my entrepreneurship and my study. Only review when every 28th of the money. This type of money management had maintain a while until i start on auction property investment, stock market investment i start to search for better money management skill online and i found T. Harv Eker's Money Jar System or more commonly people call it as 6 Jar Money Management. I using this system until the moment i writing this blog.

In next blog, i will introduce you 6 Jar Money Management to all of you.

Today the quote take away will be : -

"Money will only make you more of what you already are.” - T.Harv Erker

How to earn/save the first thousand dollar to fund your investment? (Part 2)

2021 had just pass a month like that. If you still not yet start you saving plan do considering with the method i going to share to you at below. As we already know to start a good investment a baby start for this will be to start with saving. There is some Guru out there may share how to do refinancing/borrow money with current low OPR (Overnight policy rate) interest but personally i feel this method will be bad for you if you did not establish a good personal finance. 

Personal feel that if the money you going to investment if coming from the borrowing, you can not make a right decision when the market is having correction there is a chance where you will be making a wrong decision by exits or cutting lost too early.

Let discuss back to our topic on this blog. How to save the first thousand dollar to fund your investment, Below is the method which widely use and i believe you will find a method suitable and benefit for you. You will find the 7 method which showing you the fastest to slower way to get yourself equip with the first RM1,000 in next 11 month (before 2021 end)

***For example purpose, I will be using monthly 3,000 (Malaysia average income is RM 3,224 on Oct 2020) a income as the calculation :-

Part 1 with manual saving method

1. 333 Saving Method
• 33.3% Investment Saving : 1000
• 33.3% Short & Long term saving : 1000
• 33.3% Daily Expenses : 1000
• *** Achieve goal in 1 Month 
2. 16.7% Saving Method
• 16.7% Investment Saving : 501
• *** Achieve goal in 2 Month
3. 235 Saving Method
• 20% Investment Saving : 600
• 30% Short & Long Saving : 900
• 50% Daily Expenses : 1500
• *** Achieve goal in 2 Month
4. 136 Saving Method
• 10% Investment Saving : 300
• 30% Short & Long Saving : 900
• 60% Daily Expenses : 1800
• *** Achieve goal in 4 Month
5. 1225 Saving Method
• 10% Investment Saving : 300
• 20% Leisure Saving : 600
• 20% Yearly Expenses : 600
• 50% Daily Expenses : 1500
• *** Achieve goal in 4 Month
6. 11125 Saving Method
• 10% Investment Saving : 300
• 10% Leisure Saving : 300
• 10% Education Expenses : 300
• 20% Yearly Expenses : 600
• 50% Daily Expenses : 1500
• *** Achieve goal in 4 Month
7. 52 Weekly Saving Method 
• *** Achieve goal in Week 45 or 11 Month

Hope the above 7 method able to help you save your first thousand dollar in order to start your investment journey. On next few blog i will share what you can invest with your first thousand dollar to start work for you. 

Personally i feel that, at different stage of life you will find your self using a different type of saving method. Anyway the main thing is we able to make our saving work for us. On next blog i will introduce the method i use and from there how modifier with help for the book i read to varies type of method which suitable for my current life. 

Today the quote for you to take a way :-

"Being in control of your finance is a great stress relief"

How to earn/save the first thousand dollar to fund your investment? (Part 1)

How to save the first thousand dollar for funding your investment? Actually there is a lots method you can do to earn/save your first thousand dollar for investment. 

Let discuss about earning for a thousand dollar :-

1. If you are hardworking type : Working as part time to collect a lat rate of $5.00 per hours, You will need to work for 200 hour (50 day with every 4 hour contribution) then you will get a Thousand bucks.
2. If you are resourceful type : Selling off the item you will not use/ item that you are left forgotten. This method is more effective if you are decisive type of people. How to know that the item is redundant for you. Spotted anything that you did not use in pass one month that is item where you are not needed for your daily essential. Where to places it so the item can be sell to the next owner? you can use Facebook pages or join in the pre-love group to make your thing visible. For us Carousell is one of the best platform to make you thing to be visible. In Malaysia you can consider Lelong website or Mudah.com (But please be careful i do see some cases before there is a crime cases happened during COD please choose somewhere with crowd to do meet up)
3. If you are intellectual type : You can consider to start you Youtube channel or blogging to earn your passive income.

****Last but not least, if someone had own you money : Now is best time to asking the money back from they.

If you are that kind of people willing to make a quantum lead to start saving then here got a few calculation method i would like to recommend to you :-

Saving the money by physically

• If you start saving 1 bucks a day : You need to save for 1000 days
• If you start saving 2 bucks a day : You need to save for 500 days
• If you start saving 5 bucks a day : You need to save for 200 days.
• If you start saving 10 bucks a day : You need to save for 100 days.
• If you start saving 100 bucks a day : You need to save for 10 days (This is a bits difficult to most of people)
• If you start saving 50 bucks a week : You need to save for 140 days 20 weeks.
• If you start saving 100 bucks a week : You need to save for 70 days 10 weeks.

Based on above calculation as long you had very clear target and keep the perseverance you will reach it one day ! For this example, to save a thousand bucks can be achieve within 1000 days with as little a bucks a day. Therefore, having a clear target is the very first step in making investment!

Next blog i will share about a few saving method which you want yo start immediately.

Quote to take away :-

"Keep eye on the goal, Keep moving toward your target" by T. Harv Eker