“Money is plentiful for those who understand the simple laws which govern its acquisition.” – George Clayson.
George is very spot on. Money is verily available to those who understand the fundamentals of making money. Since this is my second article for my new Finance section, I thought what better way to write on how to increase your income revenue:
- Move Your Money To Fixed Deposit
- Keep Your Money in Savers Account e.g. M2U Savers
- Cut Down Monthly Expenses. Start with car mortgage.
Move Your Money To Fixed Deposit
Adding your money into Fixed Deposit is a perfect way to increase your cash value thanks to its high interest returns. The way it works is real simple if you do it online. Simply add your money into FD account, select your maturity period and you’re done. If you do it at bank, the officers will instruct you on the procedures.
Different banks offer different returns in varieties of maturity period. Personally, I’ve used Maybank Fixed Deposit since I’m already an established client there and they offer an interest return of 2.95% per annum.
Check out this website if you wish to be informed on the best interest returns of Fixed Deposit currently available in Malaysia.
Keep Your Money in Savers Account e.g. M2U Savers
This is another technique of getting advantage an offer by banks. The Savers account. Now, I’ve only used this on Maybank2u – and the way it works is that money will be credited into your bank account at the end of every month. The amount added depends on the current money you’ve added into the Savers account. At the time I wrote this, M2U Savers offers return of 2.00% pa if you keep a minimum cash of RM2,000.00 in the account. If you keep RM50,000.00 and above, you’ll enjoy a further 2.20% return per annum.
This is definitely a great way to add more cash into your account on a monthly basis – which gives you better leverage – even when you intend on applying for bank loans.
Cut Down Monthly Expenses. Start with car mortgage.
A part of increasing your income revenue is to cut down your monthly expenses. I’d start cutting down expenses which value depreciates. For example, your car is the best liability which you need to get rid of. It may sound extreme especially to those who rely mostly on their cars to get them moving around the city – or a city with bad public transport. I’d say don’t be too concern. With the coming of Uber and GrabCar, getting you move around never been easier and cheaper too.
Think about it, no more parking fees, no more tolls, no more refuelling – most important of all, no more car insurance and loans to pay off!
For bachelors, if you still need vehicle to drive you around, try your hands at motorcycling. It’s cheap, low insurance costs, runs on little gas compared to cars and no toll or parking fees to pay for in Malaysia.
For those who still need their own vehicle to drive the kids to school, I’d suggest a car which is cheaper and more fuel-efficient instead. Hybrid cars are becoming more affordable in Malaysia now, it’s another good option to reduce your monthly expense.
Frankly speaking, you should even consider to invest your money once you’ve done the first three steps mentioned above. Once you have solid cash flow, then you could consider investment.
Investment is divided into two categories. High and low risk investments.
If you’re an easygoing guy and content with what you have, low risk might seem a better option for you. It grants low return at a higher chance of success. Amanah Saham Bumiputera (ASB) is perfect for you as it gives 6-7% return per annum. Contribute to your EPF at higher percentage from your income so you can enjoy better retirement. Property is also another good low risk investment – the value appreciate in time and the rental opportunity it offers would increase your monthly cash flow.
High risk on the other hand is suited for those who are aggressively seeking to expand its cash reserve. It is risky but once it pays off, you’ll reap large chunks of money from the investment. High risk investment falls down to you – your information and your own decision in your own terms. I can’t really tell you what’s best or else you would quote me if things go wrong.
Being a serial investor myself, I rarely share much information on what is next to invest – mainly due to I do not want to be held liable if anything goes wrong. However, I might be inclined to write more about investment in the very future.
Final Two Cent
My strongest recommendation would be to apply the first 3 methods; move money to Fixed Deposit (2.95% pa), add your money in the Savers account to enjoy 2.00% pa and to cut down monthly expenses (e.g. car loan). Once you’ve learned to manage your money well, you can start to think for a much higher return such as investment(s). This approach allows you fall back to your solid financing foundation in case investments go bust.