The Start of Saving 30% of Net Income in 3 Separate Savings Accounts.

Just came back from opening another personal savings account. Now I have 2 personal savings accounts and a joint account with hubby.

Since enrolling in AKPK’s debt management programme, hubby and I have been able to practice the ‘Pay Yourself First‘ golden rule of personal finance to save up for emergency fund.

The amount hasn’t reached our goal of 3 months’ expenses (RM6,000) yet due to the arise of small emergency expenses like car battery replacement, auto services, leaking pipe and toilet fixes, broken window pane repairs, overdue assessment tax and other numerous fixes and repairs.

With our recent change from a bigger cc car (1996 2.2 Toyota Camry) to a smaller cc car (1995 1.5 Proton Wira) that is free from auto installment loan, it’s expected that we can save up more money as emergency fund.

Besides this money of RM820, we will also start seeing monthly rental of RM400 from our Ipoh house starting this September. RM1,220! Of course, this amount of money will be disposed of more responsibly and appropriately compared to last time.

In future, 30% of hubby’s salary and my income will be transferred into 3 separate accounts according to the ‘Pay Yourself First‘ rule.

1. 15% will be transferred online into our Joint Savings Account for big emergency until the fund reaches the goal of 3 months’ expenses, that is RM6,000.

2. 10% will go into an E-Fund Account for paying small emergencies or/and personal debts.

3. 5% will be transferred online into an Investment Fund Account for investing in stocks or/and mutual funds. As I have both the Public Bank share trading and Public Mutual fund accounts, what I need is some capital to start investing.

The title of our recently-bought used car was finally transferred after a week we bought our buddy’s car for RM8,000 while he bought ours for RM20,000.

All in all, we spent about RM800 on car inspection, seat cushion refill, title transfer and new auto insurance.

Hubby and I have talked about what we should do with the RM820 (monthly auto installment payment for the previous car) since there is no more car loan installment payment starting this month. Can you believe it? We are out of auto loan debt!

Here’s kinda what we’re thinking:

A. Toss 1/2 in the emergency fund until the fund is equivalent to 6 months’ expenses.

B. Let hubby keep the other 1/2 and see if he will save up for the car body spray that costs approximately RM600. Put the monkey on his shoulder. ^-^

Have you thought of trading in your big/expensive car for a smaller/cheaper car that can reduce your monthly car payment to a more affordable one or better still, instantly settle your existing auto loan balance once and for all?

No More Car Loan Installment Payment of RM820 from August, 2010 Onwards!

I had been waiting, waiting, waiting and finally the buyer deposited the money into our auto loan account to settle the remaining loan balance of RM12,000 this morning. Phew, what a relief!

According to the bank officer, we will get the release letter by Friday afternoon. This means the transfer of title and registration can only be done on Friday afternoon or Monday morning.

From next week onwards, our car (1996 2.2 Toyota Camry) will belong to hubby’s buddy while his car (1995 1.5 Proton Wira) will be ours. He sold his car to us for RM8,000 while we sold ours to him for RM20,000.

Starting next month, there will be no more car loan monthly installment of RM820 and yearly road tax renewal charge of RM560. It’s really a burden lifted from our shoulders.

I am so grateful to have sold the car at a reasonable price successfully. Now I am waiting to receive good news from the school for a full time job employment.

If I am employed, there will be extra RM1,000 every month to be saved as emergency fund.

While digging out some old blog posts of mine, I came across this blog post titled: Set Up an Emergency Fund for Financial Security.

It was written in February 2008, a few months before I joined AKPK free debt management program. I blogged about why there was a need to set up an emergency fund and how I saved up for the fund.

I did start saving up for emergency fund at that time, but it didn’t last long. I dug out the money after having not enough money to pay the bills and daily expenses.

Fast forward to today, I am glad that I have some savings in my personal saving account that I can fall back on should there be an unexpected home repair like leaking toilets and clogged water pipes that cost me more than RM1,000 last month and a sharp drop of online income in June.

I have God to thank for putting me in AKPK’s debt management program in October 2008. Since joining the program, there has always been extra money left to be saved in my saving account.

Implementing the ‘Pay Yourself First’ method is also easier when hubby has a steady monthly income together with my online income. Each month on his payday, I will online transfer RM100 into my secret savings account from his account. Similarly, I will transfer RM50 or RM100 from my biweekly pay into the secret account.

I expect more savings on the second half of year 2010 provided (1) I am employed as an account clerk in hubby’s school. I am still waiting for a job interview. Hopefully the principal sees that I am cut out for the job; (2) My online income bounces back to between RM1,500 and RM2,000.

In brief, I would not have been able to save some money as emergency fund if I hadn’t been in AKPK debt management plan that helps restructures my multiple credit card and personal loan payments (more than RM1,500) to ONE small monthly repayment (RM320).

I almost fainted when I heard the quote for the 2 leaking toilets in my vacant house in Ipoh. It’s RM800! Oh, God!

Initially hubby and I thought the leaking toilets would cost RM300 the most. Little did we know the leaking problem was so extensive that there was a must to have the 2nd floor’s toilet bowl torn apart and the waste pipe leading to the basement toilet replaced with a new one.

The plumber showed us some cracks on the old waste pipe that had caused the leaking problem. It’s an iron waste toilet pipe that had rotten away.

Well, what to do? They had to be fixed so that the tenants could move in this week.

Just as I thought everything would be fine after the plumber replaced the toilet bowl and waste pipe with new ones, the plumber said we had another problem.

Oh, no! Another problem? So far, we had forked out a total of RM1,390 for the fixes and repairs.

What’s the problem? The waste pipe of the basement toilet leading to the manhole was clogged. The plumber lifted the manhole cover and then asked me to turn on the sink faucet and flush a few times. True enough, there was no water flowing out!

The plumber said we needed an expert to have the toilet and drain pipe unblocked. Another expert? Okay, okay, so how much? RM250!

According to my tenants who were there cleaning the house, it took the guy more than 4 hours to unblock the toilet and pipe. Apparently, it’s the rusty, broken pieces of the waste pipe that brought about the blockage.

So, a total of RM1,640 had been spent on the repairs for the vacant house in Ipoh. Thank God that I have some savings to help pay the fixes and repairs.

AKPK DMP Blogger is Back to Financial Track Slowly and Steadily.

How much has been spent on fixing the vacant house in Ipoh before it can be occupied by the tenants? Phew, RM590!

May 13th – Water and electricity departments – RM231
May 20th – Kitchen faucets and water pipes – RM70
May 27th – Fluorescent light replacements – RM119
May 28th – Leaking water tank and water pipes – RM170

Wait, RM590 is not the total yet! There are still leaking toilets and air-conditioner installation that will be done this coming Saturday or/and Sunday.

We estimate the leaking toilets (3 toilets now!) to cost between RM250 and RM400 and the air-conditioner installation between RM1,400 and RM1,550.

Since the air-conditioner can be paid in two installments, I don’t have to dig out all of my personal savings. Boohoo, there will be a dent in my personal savings!

Anyway, I think it’s worth paying for all the fixes and repairs since:

a) The house will not be left vacant to rot again;

b) There will be monthly rental of RM400 to cover some of the home loan installment or to be saved as emergency fund;

c) It’s easier to sell the house in future, either to the tenants or neighbors whose family members or relatives are interested.

As a matter of fact, a neighbor who lives two houses away came to have a look of the inside of our house when hubby and I were in the house last Saturday. He said his brother was also thinking of buying one nearby his.

Thanks to new developments around my housing area that the price for my 22 x 75 double-storey house has gone up to nearly RM150,000 these few years.

A friend who is a pro construction worker said we can sell our house in Ipoh easily if we are willing to sell it at RM135,000. Wow, it’s for sure hubby and I will sell the house and be mortgage free if there is a buyer now!

At this point of my life, I am so grateful to God for leading me and hubby back on financial track slowly and steadily.

First, being approved of the AKPK debt management program applications. Next, steady online income from me and full time teaching income from hubby. Then, having extra money to be saved as emergency fund. Later, renting out the house in Ipoh.

All this came one by one. This made me realize that, “When I am ready to make a change financially, God will help.“

This is a series of posts about ‘AKPK DMP Blogger’s Book Review: Tip-Tip Kewangan Untuk Rakyat Malaysia by K.C Lau’ – Part 1, Part 2, Part 3, Part 4 and Part5.

Tip #14 – Nikmati Pelepasan Cukai Untuk Pendidikan. Argh, TAX and INSURANCE,  I hated both! And I still hate them, even though I have tried to like them.

The tip here is about how you can use tax relief options to save money on taxes.

Tip #15 – Kurangkan Caj Perkhimatan Pendahuluan Dalam Pelaburan Unit Amanah.

You know, family members around me hate unit trusts a lot; they say they don’t make money from there.

Well, it did make me money many, many years ago when I first bought the PB Growth Fund (PBGF). More than a thousand ringgit in net profit within two years of investment!

But then two or three years ago, I bought this PB China Pacific Equity Fund (PBCPEF) at RM0.25 per unit during its 21-day initial offer period. I invested RM1,000 at that time and guess what it’s of RM500 or RM600′s worth now!

A tip learned from K.C is that Public Mutual only charges 0.25% service fee on its bond funds. Ha, I thought every mutual fund agency/company charges 6.5% service fee. Just checked that the PB China Pacific Equity Fund I invested in charges 0.36%.

If you have already accumulated enough emergency fund and there is still money in hand, you can actually invest in unit trusts. Just that you need to do research a bit or get help from a trust fund agent/financial planner.

Tip #16 – Uruskan Gadai Janji Anda. I did my home mortgage refinance a few years ago before I was deeply in debt. Guess what happened to the RM30,000 bank overdraft facility given by bank? Wuahaha, all used up!

Since enrolling in AKPK’s debt management plan, I have been able to save some money. Of course, the amount is still not enough to be called an emergency fund yet.

Once I have enough emergency fund and pay off some personal debts owed to family members/friends, I will start tackling my home loan and bank overdraft.

Tip #17 – Tingkatkan Gaya Hidup Anda Sambil Mengurangkan Perbelanjaan. Oh, tips on cutting down daily/monthly expenses! Love the tips here.

K.C., thanks to the free shows/movies websites! Maybe you can add one more online TV shows website www.Watch-Series.com. This is where I watch my favorite CSI, CSI: Miami, CSI: NY, NCIS, The Criminal Minds, Grey’s Anatomy, Lie to Me, … for free.

Done with Bahagian 3 – Menjimat Wang. If you are looking for saving money tips to help cut down your spending/expenses, tips in this part are very useful.

Whether you have no debt, a little debt or a heap of debt, the tips help. Even if you are already in AKPK like me, the money saving tips still work for you.

Go to ‘AKPK DMP Blogger’s Book Review: Tip-Tip Kewangan Untuk Rakyat Malaysia by K.C Lau’ – Part 3.

How’s my savings going on? Well, sehr gut or very good. From RM1,500 when I mentioned it in December’s blog post, Thank God for AKPK Debt Management Program, Steady Income and Good Health, to RM3,000 now.

An increase of RM1,500 in two months! Amazing, right? This has got to do with a sudden increase in the number of online tasks in January. This doesn’t always happen though I hope it will.

Has my hubby found out my personal saving? Well, I am pretty sure he knows I am stashing away money. Just that he doesn’t know the exact amount.

I still need RM500 to reach my RM3,500 saving goal. I am thinking of transferring RM500 from hubby’s bonus and Ang Pao to my saving so that it hits RM3,500.

Speaking of hubby’s bonus, both of us are a bit disappointed with his half month’s bonus. We thought he could get a one-month bonus as said/mentioned by the principal when he was interviewing hubby.

Anyway, hubby only started his work in July 2009, so it’s actually fair to get half month’s bonus, right? Oh, not to forget that hubby got a RM200 salary raise starting January 2010!

Besides, there is still Ang Pao or money gift. According to hubby’s colleagues, it’s going to be given out on Friday, that’s tomorrow! Hopefully it’s between RM500 and RM1,000.

Be grateful, you AKPK DMP blogger! Count your blessings, please! Do you know that you and your hubby:

1. are now both in AKPK free debt management program that helps you pay down credit card debt with lower monthly repayments of RM320 and RM360 respectively;

2. have a dual income between RM4,600 and RM5,000 every month;

3. have an emergency fund of RM3,000 in the saving account;

4. have money to pay auto and home loan installments, utility bills and flat rental in time;

5. have extra money to spend on clothes and personal supplies;

6. are healthy and strong;

7. …

Thank You God for what I am and will be having. Wuahaha!

Is January a prosperous month to you? I think it is a lucky money month for me, the AKPK debt management program blogger, and hubby.

For me, a sudden increase in the number of product reviews is doubling this month’s income. If I add in my AdSense and Amazon earnings, wuahaha, this Chinese New Year is going to be a prosperous new year.

So far, my personal savings has reached RM1,700 without hubby’s knowledge.

As for hubby, besides his monthly salary of RM2,000, he will have a one-month bonus or maybe 1/2-month’s bonus. We are still grateful if he is only given a half-month bonus. After all, he only commenced his work on the 1st of July last year.

Oh, there’s still Ang Pao for him from the school! The amount of money given depends on his work performance. It will be between RM500 and RM1,000.

After deducting this month’s RM680 AKPK debt management repayments, RM820 car loan, RM374 home loan installment, RM150 bank overdraft interest charge, RM270 flat rental, RM110 phone and internet service charge, RM33 handphone fee, electricity bill, food and grocery expenses, there’s still money left to be saved as emergency fund and pay back some personal debt owed to friends/family.

I love December! It’s time of the year to flush away all unhappiness and start afresh with new year resolutions.

What resolutions did I, an AKPK DMP blogger, set for year 2009? Paying down credit card debts was my No.1 new year resolution! Of course, saving for emergency fund and making more money were on the list too.

For year 2010, my new year resolutions would focus on simple, achievable goals and the priorities would be a bit different. I am going to emphasize on saving money, making money and paying down credit card and personal debts.

1. Saving for Emergency Fund. As hubby and I are in AKPK debt management programmes that require lower monthly repayments, we are able to focus more on saving money with the extra cash left every month.

So far, we have got RM1,500 in the saving account. We want to reach our saving goal of RM3,500 in year 2010. And then, from RM3,500 to RM5,000, if possible.

2. Making More Money. With God’s blessing, hubby has had a full time teaching job that brings in a steady monthly income of RM2,000.

It’s not possible to increase hubby’s income, but it’s possible to increase mine. My existing online income excluding tuition fee is between RM2,300 and RM2,600 a month.

My goal is to reach more than RM3,500 a month in year 2010 through my niche blogs. Yes, it’s possible!

3. Paying Off Some Personal Debts. It’s my hope that hubby and I can pay back at least one-third of the personal debts owed to family members.

Although most of them haven’t asked for their money back, hubby and I think that it’s better to pay them back as soon as possible.

4. Paying Down Credit Card Debts. Paying off credit card debts will be my No.4 new year resolution because I want to settle as much personal debts as possible.

Once the personal debts are gone, the money used for paying personal debts can be channeled into paying one card payment at one lump sum until every card payment is settled.

5. Staying Healthy Always. Without good health, none of the above resolutions can be achieved smoothly. My health is better than hubby’s, so I must make sure that hubby has stronger immune system and better energy in year 2010.

Without good health, how can he stand long school hours and endless discipline problems created by the students?

So, what are your new year resolutions for 2010?