Be aware of the Economy Reality by Improving Personal Financial Management

Bank Negara already increased the Overnight Policy Rate or OPR twice since the end of the MCO (Malaysian movement control order). 

"At the height of the Covid-19 pandemic in July 2020, BNM reduced the OPR to 1.75% – Malaysia's lowest level ever. It maintained this level until May 11 this year, when it raised the OPR by 25 basis points or 0.25% to 2.00%."

"On July 6, the central bank raised the OPR again by another 25 basis points to 2.25%."

https://www.malaysianow.com/news/2022/07/15/economists-tell-who-will-feel-the-pinch-if-opr-is-raised-again

During the first OPR increment, my property investment required me to pay additional RM310.30. I have many loans in a total more than RM one million. Today, after the second OPR increment, the banks finally increase again the monthly loan payment. I have to add another RM161.00 to the existing loans. In total, I have to pay additional RM471.30 to service my existing loans. The total increment is almost 7.6% of my total loan monthly payment. 

This also means, many Malaysian have to pay additional 7.6% to their loan or monthly expenses. In other words, many Malaysians have less 7.6% ability to spend. Combining the high inflation and 7.6% less ability to spend, Malaysia economy growth will stay slow until next year. This also means I don't agree with the Malaysia GDP expansion as calculated by the ministry of finance or Bank Negara. If you look carefully, the growth during Q1 (3.8%) and Q2 (8.9%) are based on comparison with 2021. 

 

Read more at: https://www.nst.com.my/business/2022/08/821605/malaysias-economy-grows-faster-89pct-q2-first-half-growth-69pct

The actual comparison should be the comparison with 2019 when the MCO have not occurred! Measuring the economy performance when the economy at bottom low is not only inaccuracy, it is misleading as if our economy is a Trust Fund performance! So many people are being fooled by a Trust Fund performance using this technique. If the performance is really high, why the dividend return is low? If Malaysia economy is so good, look at the reality of today economy performance which is your pocket. It has minimum effect to those who work in government. But it is hard for those who work in private sector especially when prices of daily consumption has increased a lot.

Another clear indicator that the economy has not been back to the original level as before MCO, look for the retail shops around you. There are still many empty shop lots with banners "For Rent" or "For Sale". How bad is the area being hit is depending on how many shops are still vacant. Some of the retailers cannot survive when they cannot operate the business and have to close the shop forever. Some of them try to relocate to a cheaper or affordable location. If we are observant, we can see some new retailers have moved into the vacant shops. While some of the shops are still vacant.

All I can advise is spent your money wisely and carefully. We should work harder and look for opportunities for more income streams. But, my wife just bought a new CRV TCP1.5 AWD car!! It is time for us to use some of our success in property investment. But, you should beware for another OPR increment in the near future. It is closer than you think.

Happy investing!

Menjana Pendapatan dari Pelbagai Sumber

Ramai orang boleh menjawab apakah pekerjaan mereka. Tetapi persoalan akan menjadi lebih rumit untuk dijawab apabila ditanya apakah pekerjaan sambilan mereka.

a) Pekerjaan utama

b) Pekerjaan sampingan

c) Pekerjaan berdasarkan hobi

d) Pekerjaan berdasarkan hobi ke 2

e) Pekerjaan berdasarkan peluang segera

f) dan lain-lain

Ramai memberikan alasan mereka tiada pekerjaan sambil agar mereka boleh fokus kepada pekerjaan yang ada. Tetapi ramai yang tidak menyedari, ramai jutawan menjadi kaya kerana mereka mempunyai lebih satu pekerjaan atau lebih satu sumber pendapatan. Sesetengah pakar motivasi menceritakan seseorang jutawan memerlukan tujuh atau lebih sumber pendapatan. Atau lebih tepat, ramai jutawan menjadi kaya kerana mereka mempunyai pelbagai sumber pendapatan.

Di dalam keadaan ekonomi yang merundum, semakin ramai melakukan dua atau lebih kerja serentak untuk menambah pendapatan. Jika perancangan lebih awal dilakukan, pekerjaan kedua, ketiga dan seterusnya seharusnya membantu kualiti hidup. Sebaliknya, sekiranya pekerjaan sampingan cuba dikekalkan di sepanjang karrier, hanya musibah akan menanti anda. Melakukan pekerjaan sampingan yang sama hanya akan menyebabkan "Diminising return". Sebagai contoh, semasa saya baru menjadi pensyarah, pendapatan pensyarah sampingan adalah RM100 sejam. Selepas 20 tahun, pendapatan pensyarah sampingan masih tetap RM100. Saya memaksa diri berhenti mengajar secara sampingan semenjak 2014. Jadi, tenaga dan masa saya boleh digunakan untuk berehat, memikirkan strategi dan menjana pendapatan lebih tinggi dan berterusan.

Tetapi ramai tidak sedar ciri-ciri di dalam pelbagai sumber pendapatan sampingan.

1. Pelbagai sumber pendapatan bukan bermakna semuanya mesti dilakukan sepanjang masa. Jika anda mempunyai dua pekerjaan yang sentiasa mesti dilakukan sepanjang masa seperti pekerjaan dua shift sehari, anda harus bertanya kepada diri sendiri berapa lamakah anda sanggup bekerja selama dua shift dalam sehari? Setahun? 5 tahun? 10 tahun? sampai pencen? Anda bukan robot. Sila bangun dari tidur.

2. Setiap pendapatan sampingan mempunyai jangka hayat dan kewujudan waktu yang terhad. Oleh itu, sangat penting untuk merancang priority hidup anda. Sesetengah pendapatanan sampingan mempunyai waktu dan tempoh tertentu perlaksanaannya. Jika pendapatan sampingan hanya untuk kerja dua shift di kilang, kesibukan kilang juga bermusim.

3. Setiap pendapatan sampingan mempunyai faktor kesesuaian yang berlainan seperti:

   - seasonal seperti di atas

   - faktor umur: umur semakin tua menyebabkan sesetengah pekerjaan sampingan tidak sesuai, semasa umur muda lebih banyak pilihan pekerjaan berdasarkan tenaga dan masa yang banyak tetapi apabila usia meningkat pekerjaan sampingan berdasarkan pengalaman, ilmu dan masa yang sedikit menjadi keutamaan.

   - faktor keluarga: pekerjaan sampingan akan menyebabkan anda kekurangan masa untuk keluarga. Tetapi pekerjaan sampingan yang flexibel akan memberikan lebih banyak masa untuk keluarga seperti ejen insuran, ejen hartanah dan sebagainya.

   - perubahan ekonomi negara: setengah pekerjaan sampingan tumbuh seperti cendawan apabila ekonomi negara semakin rancak seperti ejen hartanah, ejen permohonan pinjaman, pendidikan dan sebagainya.

   - perubahan polisi negara atau syarikat: sesetengah syarikat tidak mahu terikat dengan pekerja-pekerja tambahan, sebaliknya pekerja kontrak atau separuh masa digunakan. Perubahan polisi negara juga membantu sesuatu pekerjaan akan bertambah peningkatan gaji seperti kemasukan buruh asing, pertumbuhan bidang ICT, semikonduktor dan sebagainya.

4. Pekerjaan sampingan yang mudah bertahan adalah pekerjaan yang berdasarkan minat

   - perkara sukar menjadi mudah kerana minat

   - perkara mudah tapi leceh tetap mudah jika minat

   - hobi yang berterusan sangat bagus jika boleh menjana pendapatan sampingan

   - sesetengah pendapatan sampingan memerlukan perancangan lebih awal atau persediaan awal

5. Senarai pekerjaan-pekerjaan dan pendapatan sampingan yang saya lakukan:

   i. (23 tahun) Pensyarah

  ii. (25) Penulis aturcara

 iii. (22) Consultant 

 iv. (10) Teaching and training part time

      - (stop) university: UTM, UTHM, UMP

      - (6 dan  sekarang jarang-jarang) training for companies: Kriptic Devices, Zal Computer, Kelab komputer sekolah

      - (lebih untuk kerja kebajikan) chess

      - kursus pendek: microcontroller, PLC, visual basic, IC Design 

  v. (8) Mengasaskan dua buah syarikat

 vi. (25) Menyewa rumah sejak 1998

vii. (14) Melabur hartanah melalui pembelian bangunan kedai

viii. (2) Tourist guide

 ix. (14) Palm oil plantation

  x. (5) Manpower supply

11. (15) Service repair

12. (15) Paperwork for tender, grants and operational setup

13. (20) Selling agent such as property, computer

14. (25) Software development

15. (4) Invest: bela lembu 

16. (3) Jual baja dan benih

17. (30) Melabur dalam ASN dan ASB

18. (10) Melabur dalam Bank Rakyat

19. Professional Chess player (4)

Nota: dalam kurungan adalah tempoh masa pelaksanaan, kebanyakan aktiviti bukan berterusan tetapi tempoh tahun aktiviti tersebut masih berlaku.

Semua ini tidak mungkin saya lakukan serentak atau berpanjangan bertahun-tahun. Jadi, rancang pekerjaan sampingan, pelaburan dan hobi anda untuk masa depan.

Buying Motorcycle for My Son

My son want to have a motorcycle so that he can use it during his study far away from home. After he had surveyed a lot of places, he found the cheapest motorcycle for Yamaha FZ 150. It is a second hand motorcycle. We don't want to waste money to buy a new one. Buying a vehicle is not an investment. Unless, it is meant for generating income, it is worth it to buy a new one.

Although my son work part time during his long holiday, his income is not sufficient to buy the motorcycle by cash. He wanted to buy it by the motorcycle shop's loan. After I shown the calculation, it is very expensive to buy the motorcycle by a loan. Hence, I loan the money to him to buy the motorcycle by cash!

I know my son cannot repay me by monthly since he has just beginning further study for his diploma for a semester. And, I don't want the loan money to lost its value upon my son's graduation. So, he have to calculate the money to be equivalent to gold value which is currently RM191 to 1 gram (Public Gold). The total cost to buy including the road tax and insurance was RM4,232. Hence, he owes me about 22.16 grams of gold.

I prefer the money value to be preserved in gold since this loan is going to be more than 5 years without any interest. Gold is good to hold the value. But, gold as a physical cannot generate wealth on its own.

The booking money was paid to the motorcycle shop, Fook Yong Motor Trading Sdn. Bhd. on 22 April 2017.  The second payment was made on 25 May 2017. The motorcycle was registered under my son's name on 26 May 2017. All the documents were completed by 28th May 2017. Upon completion, I paid the balance on  28 May 2017. Since, my son work until 10pm, I have to bring back the motorcycle on my own on 29th May 2017 as shown in the pictures.

It has been 15 years since I drove a 150cc motorcycle. It felt different. But, it is good enough for my son.