For those have follow me, the 2 Sen Finance Series from part 1 to part 4 is to encourage people to do their own saving and the purposes to do saving and what can a saving during a contingency moment.
In part 5, I would like to share more about my experience with Money
I can tell you that, I do not have a good record for my own money management in the beginning and only able to fully managing my account in Year 2017.
Let's Begin.
When I was at the age of 5 years old (Year 1995), I was expose to the use of money at kindergarten to buy myself some sweets and pack of noodle for lunch. With 20 Sen (Ringgit Malaysia) a day, I was able to save up 2-5 Sen a day. It doesn't sounds much, but if adjusted to annual inflation of 3% for 25 years, the 5sen would worth 11 Sen in Year 2020. Eventually, I should have saved up RM 7.50 each year and RM 15 (RM 30 today's value) for my two year in kindergarten. Then the saving will give to my parent for safe keeping, that is what they promised that time. For my age, Gods know what is the purposes of saving, and I only know that my parent will be happy when I have money to save.
It is when I enrolled into primary and secondary school (Age 7 - 17), I started to realise the purposes of saving, TO SPEND ON MY WANTS. To fulfil lifestyle, fashions, toys, video games without parent fork out additional money from their pocket , I started to save up from given pocket money for school lunch and even start to borrow money from friends. I manage to enjoy my lifestyle, but ended up not saving at all.
After I graduated from Secondary school in Year 2008, I was employed at Popular Bookstore as a part time general staff wit ha decent salary of RM 2.80 per hour and work for 10 hours a day, 5 days a week and earn about RM 600 a month. I was offered if I require my salary to be deducted about 8% (2008 rate) each month from Kumpulan Wang Simpanan Pekerja (KWSP) or Employees' Provident Fund (EPF) and I decline. So that I can enjoy my earning 100% with a thought of work, earn, and spend.
During 2009, I received a letter offer to continue my study in Diploma in Architecture at Politeknik Port Dickson for 3 Years. That is the happiest moment of my life, that I am able to work as a white collar employee with a higher earning. Because I spent most of my earning, I have to borrow money for my study from an agency under Ministry of Education, Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) with an repayment interest rate of 1%. The total Sum I had borrowed is RM 15,000 and repayment amouny is about RM 15,1500.
The year is 2011, I was graduated and been employed as a draughtsman with a Salary of RM 1,500 a months. Besides study loan repayment and paying for monthly grocery, I do not have other commitment. So, I spend some of my saving and some times I have a deficit on my saving. With that young age (21 Years Old), I always have a mindset of "Work to spend and if do not have enough money, salary is coming in the end of month".
After 2 Years, I received and offer again for my study in Bachelor of Science in Architecture for 2 years. and subsequently another 2 years study in Master in Architecture in Universiti Teknologi Malasyia. Because I spend most of my saving, I borrow from the same institution PTPTN, with a total sum for both program is about RM 35,000. Luckily, I scored a First Class for my Bachelor Science program and become a scholarship program. Therefore, my final sum is only RM 20,000.
As always, I have a mindset of able to work as a white collar employee with a higher earning than before. This is true, but at a cost with total debt accumulated RM 35,000. The year is 2017, my commitment become larger as my parent is retired and I only can afford RM 300 for monthly study loan repayment and it would took 10 years to finish the repayment.
The total unprepared of myself started to ask the following questions to my self:
Can I work for 10 years with out relaxing?
How about the dream to retire early?
How to enjoy early retirement lifestyle like a successful people read in magazine?
Are those get rich quick scheme real?
How to work to earn extra more income?
I need part time as my passive income!
So how do I overcome it?
When I graduated My Master Program on March 2017, I started to work in a local Architecture Firm in Sabah with an Income of RM 3,000. As I notice the huge commitment I have, I start to become more nervous on how not to deficit my own savings. So, I decide to distribute my monthly income into 3 different saving accounts (Public Bank; Maybank ; Cimb Bank).
1st Account-- (Mandatory Expenses, such as groceries, loans, healthcare )
2nd Account -(Mandatory Savings and only for emergencies)
3rd Account - (For Hobbies, hangout with friends)
This method is nothing fancy or difficult to achieve. It just to keep track your saving and expenses and alert our saving balance.
In the Year 2018, housing / construction industry slowing down and my company require all the employee to have a pay cut of 20%. My earlier 2nd Account saving for emergency truly save my life for another 3 months until I found another employment.
In the same year as well, I met a friend who study together for Diploma in 2008 and we both did borrow from PTPTN. To my surprise, he manage to finish his student loan in year 2017 and I quickly what is his secret or do he have any quick rich scheme. In the end, he just invested his saving with Skim Simpanan Pendidikan Nasional (SSPN) and earn a return of 3-4% annually.
What is SSPN ?
Is a savings scheme created by Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) on Year 2004 to encourage parents/guardian to make savings for their children's higher education.
If notice there are such system, I would make the same decision and earn an accumulate interest about 30% for 10 years.
Now most of my 2nd Account's Saving is saved with SSPN to earn their interest for my future purposes. Who knows the growth saving is for my future children high education fee as well, so that they not require to apply for loans.
The Next big thing happen to me is my colleague share with me about a Unit Trust Management Company , Public Mutual Bhd. He share about what is Unit Trust and how to invest in it. The purposes of investment is similar to SSPN, to grow our saving for future goals. But invest in Unit Trust that related to stock market are defiantly have a higher return than SSPN.
Year 2018 is the year that I started to restructured my own finance, as I discover Stock Market as another mean investment tools. Although I am not a mastering it yet, luckily I have friends that have a heart of patient in teaching me to filter companies profile in order to search for the right company to be invested.
My account defiantly not rich yet, but I have a rich mindset in order for me to arrive a stage where I'm not the slave for money and I would like to share this rich mindset to this community.
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Click the link below for the Malaysia Property market News on 2018/2019
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If you have any question regarding financial topics, you are always welcome to drop by some comment below.
or
Your are having trouble setting up your first investment, I am happy to assist you now.
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