Are you familiar with financial terms like cash flow, assets, liabilities, good debts, bad debts and compound interests? No? Then, it’s time for you to start getting familiar with them if you would like to manage your debt, control your spending, pay down debt and accumulate wealth.

Bahagian 1 – Tip Kewangan Bijak (Tip #1 – #7)

Tip #1 – Jadilah Seorang Pakar Kewangan
Tip #2 – Ketahui Nilai Masa Anda
Tip #3 – Focus Kepada Meningkatkan Pendapatan
Tip #4 – Jadi Kaya Melalui Hutang Berlebihan
Tip #5 – Miliki Rancangan Peruntukan Belanja Jutawan
Tip #6 – Eksploitasi Faedah Kompaun Untuk Bekerja Untuk Anda
Tip #7 – Nilaikan Sesebuah Pelaburan Dengan Pantas Menggunakan Peraturan 72

There are 50 tips of cutting down your expenses at Tip #3. Try them and see whether they help you reduce your spending.

If increasing your income is currently not possible for you, then cutting down your spending/expenses is a good option. However, if there is a way for you to increase your income, by all means, do so. K.C. Lau has listed 25 ways of increasing your income.

Tip #5 is about budgeting. I have failed many times when it comes to doing a budget. But I don’t give up. Recently, I challenged myself by setting up a 30-Day Challenge of Tracking Every Dollar and Cent Project to record where my money goes to.

By knowing what I spend my money on and how much I pay, it’s easier for me to control my future spending/expenses. Eh, sound familiar? I have told myself my times leh. Wuahaha!

You know, K.C. has listed more than 20 websites where you can download free budget spreadsheets and budgeting tools. You can try out a variety of spreadsheets, from the most simple one to the most complicated one, before you decide which suits your style.

Wow, I am very, very long winded! There are 5 parts for this book review – Tip-Tip Kewangan Untuk Rakyat Malaysia by K.C.Lau!

What to do? People have shorter and shorter attention span now. They read the first paragraph, scan through the rest and read a bit of the conclusion of an article. Me too.

In brief, this book is suitable for those of you who would like to learn how to save money, cut down on expenses, increase income, protect your money and build wealth.

Just like the description on the book cover says, Panduan Mudah and Praktikal Untuk Menguruskan Kewangan Peribadi Anda, the tips are easy to understand and follow.

This book is available at all major bookstores at RM29.90. You can also order online here.

Thanks, Adino, I copied the online store link from your post about ‘Tip-Tip Kewangan Untuk Rakyat Malaysia.

Question: My wife and I know we should have an emergency savings fund, but with one income we have nothing left to save after paying expenses.

But I’ve been thinking of a way to deal with this problem. We charge about $2,000 in monthly expenses to our credit cards, which we then pay in full each month.

My idea is this: Instead of paying off the cards every month, I’ll make only the minimum required payment and save the rest. Once I’ve accumulated a decent emergency fund, I would then begin paying down the cards. Do you think this is a good strategy? — N.G., California

Doesn’t this sound familiar to many people? It definitely sounds familiar to me.

There was once upon a time in 2007 that hubby and I were living on one income. Life was tough then because there’s so little income in hand, yet there were so many bills like car and home loan installments, term loans, and as many as 15 credit card payments waiting to be paid every month!

It’s very difficult to save for emergency fund after paying all the expenses because there was literally no money left at all!

But since hubby and I enrolled in AKPK debt management program and hubby started his full time teaching job, we have been able to save money as emergency fund.

If you are thinking of paying the minimum credit card payments and saving the rest as emergency fund until you have accumulated a decent amount of emergency fund to paying down the credit cards, well, it may/might never come true.

Financial experts say so. And I say so; I did what the reader above thought of doing and it didn’t work for me. It’s either you find extra money/income or cut down on expenses or do both if you want to save money as emergency fund.

I agree with Walter Updegrave, the author of the article of Big No-No for Building Emergency Savings that, “If you can’t save today because you have no money left after paying your expenses, how are you going to pay those expenses, plus come up with an extra $xxx a month to pay down the credit card balance you racked up to accumulate your emergency fund?”

I also concur with him that it’s more practical to spend less than you make or cut down your expenses to save money.

Well, the reality is that there is only one way to save — and that’s to spend less than you make. There are a number of ways to do that. You can go the “cut the latte” route and avoid relatively small daily expenditures that add up. You can create a budget and then go over it line by line, looking for specific areas to squeeze. You can try two techniques that I’ve advocated in the past, focusing on big-ticket items or employing strategies that can effectively fool you into being a better saver. Whatever works for you. But one way or another, you’re going to have to find a way to pare your spending.

… But I also know that borrowing to save is an oxymoronic concept that’s more likely to create problems than solve them.

Note: If you would like to know the process of applying for the AKPK DMP, please take your time to read A Credit Card Debt Woman is Under AKPK Debt Management Program Malaysia.

Of course, you don’t need a debt management program, also known as debt management plan, if you are able to lower the payments and pay down your debt steadily.

There are many ways to lower your monthly credit card payments, but I am sharing with you a few which I have tried before.

1. Pay More Than the Minimum Payments. If you pay more than the monthly required payments, then your minimum payment requirements will begin to drop in subsequent months.

To make this work, you must pay well above your minimum payment requirements AND stop using the credit cards for purchases.

2. Negotiate Lower Credit Card Payments with Your Creditors. Many banks and companies are willing to work out an alternate payment plan with you if you are sincere in paying off the balance.

3. Balance Transfer Your Multiple High APR Card Debt Balance to A New Credit Card with a Much Lower Interest Rate. Take advantage of low interest or 0% interest balance transfers. Interest charges are calculated on the basis of the interest rate or the APR applicable to your credit cards, so a lower APR rate means that your credit card debt will grow at a slower pace and thus switching over to a card with lower APR makes sense.

By transferring your multiple high APR card balance debt to a new low APR credit card, you are able to save money and reduce debt at the same time.

4. Refinance or Second Mortgage on Your House. By doing a refinance or second mortgage on your home, you can use the equity in your home to pay off your high interest credit cards.

The interest rate you get with a mortgage refinance is typically higher than the average, but it is often always lower than your credit card interest rates.

As a credit-card-debt woman who is now in the AKPK free debt management program (DMP), I have tried all the above mentioned ways to lower my credit card payments; I was able to reduce my credit card debt from RM63,809 to RM40,344 in one and a half years.

But why did I still opt for the debt management program to lower my credit card payments? There are a few reasons stated in Why Opting for AKPK Debt Management Program (DMP).

Due to AKPK’s lower debt repayments to my credit cards, I am able to Start Saving Money for Emergency Fund.

If I had been careful when it came to using credit cards, I wouldn’t have gotten myself into deep credit card debt and enrolled in a free debt management program known as AKPK debt management program to help me lower my monthly payments from more than RM1,500 to RM320, reduce interest rates from 18% to 6% or 7%, waive late payments and over-limit charges.

Credit cards, when used in moderation, could be helpful in managing your finances. But splurging through the use of credit cards is almost financial suicide.

To prevent you from acquiring credit card debt that leads you to financial death, let me share with you how you can manage the way you use your credit card.

1. Prioritize Your NEEDS Before Your WANTS. Buying big ticket items that you don’t really need might give you that instant gratification that impulsive buyers are addicted to. But that temporary high would eventually turn to long-term down feeling due to your high-interest added credit card debt.

Imagine after 15 months of owning the 42″ Plasma TV, you are still paying down the amount owed, its interest charges and interest on the owed interest charges! So depressing!

2. Never Go Over Your Credit Limit. In order to be able to manage your credit card payment, never go overboard when it comes to your credit limit. If it’s possible, just use about two-thirds of your limit.

3. Keep the Statement of Your Credit Card Account. For easy reference in future, keep a record of all your credit card transactions.

Always spend some time comparing the list of your purchase for the month with the statement to prevent being charged inaccurately. If your list and the statement of account do not match, report this to your bank.

Self-control is still the best way to prevent getting piled up debt. I have been there before and I tell you, it’s no fun having accumulated debt.

You know how suffocated and stressful I was before I signed up with a free debt management program? My piled up debt was actually caused by late payment fees, over-limit charges and miscellaneous fee charges.

What about you? Are you worried about your credit card debt?

You should be if your credit card debt has spiraled out of control; you pay more than 15% of your monthly income to your credit card bills or/and borrow cash from one credit card to pay another.

You are not the only one who is dealing with credit card debt nowadays. In fact, almost 40% of credit card holders are in the same predicament!

So what should you do to avoid the need of getting help from debt relief options such as debt consolidation, debt management program, or debt settlement and worst of all filing for bankruptcy?

Start doing credit card debt management to help yourself get out of debt as fast as possible!

Most financial experts will advise you to stop using your credit cards. Quit using credit cards is to prevent you from adding new debt to your existing outstanding balance.

If you have more than one credit card, pay the minimum payment on them all. Then, pay the most to the credit card with the highest APR. Once the card with the highest APR is paid off, keep paying the minimum payment to the rest of your cards and pay the most to the next highest APR. Do so until all the credit cards are paid off.

Another way to help you is try balance transfer deals that offer 0% interest free period for 6, 9 or 12 months to save some money.

Credit cards are convenient, but you don’t have to use them all the time and put everything from groceries to petrol to night’s-out on them. Instead of using credit cards, cultivate the habit of using cash to help yourself curb your spending habits and get into more credit card debt.

If you are really concerned about your credit card debt, start doing debt reduction before you end up resorting to debt consolidation, debt management plan, debt settlement or bankruptcy.

Let’s face it, tonnes of credit card debts, accumulating personal loans, overdue home and car loan installments, increasing food and grocery expenses, looming recession times and possible layoffs are awaiting you and me after Christmas and New Year holidays and the inauguration day of President Barack Obama.

Managing credit card debt is never an easy task, especially when it involves a huge amount of money and a lengthy history.

Here are a few credit card debt help tips you need to remember so you can manage your debt and clear it on time.

1. Keep Close Contact with Credit Card Companies. If the credit card companies contact you then you should be willing to accommodate them, because the last thing you want them to do is to block your account. The companies will keep you updated on the status of your account. This way you will be aware of how much you owe the company.

2. Pay the Amount You Can Afford. If you are really in a tight budget then just pay the amount that you can and also advise the company regarding your payment. This way the company still knows that you did not forget your obligations to them.

3. Make An Effort to Take on An Extra Job. It will require a lot of work but at least you will not be in debt for a long time. Once you have already paid off your debt and earned extra money then by that time you will be able to rest.

4. Always Budget Your Money. If you have cash then use cash, use only your credit card during emergencies. One good practice when going to the grocery is to write down all the things you need. This will avoid you from spending your money from unnecessary things.

Credit card debt help is truly required these days because it seems almost everyone is in debt.

Interest rate charges are the main hurdle that hinders you from paying off your credit card debt fast. Therefore the very first thing you should do in your attempt to reduce your credit card debt fast is to call each of your credit card company and negotiate a lower interest rate for each of your credit card.

Tell them that you have made up your mind to do credit card debt reduction and you have already sent some applications to other credit card companies that are offering a lower interest rate. You can tell them sincerely that you would stay with them only if they give you a lower interest rate.

Credit card companies are willing to negotiate the interest rates with you if you sincerely want to pay off your outstanding balance. Lower interest rates could mean that you can add the payment earmarked to settle the principal amount on your credit card bills.

Once you have successfully secured a lower interest rate for each of your credit card, pay your credit card debt persistently so that your debt is reduced and your monthly payment is also lower.

It’s easier to gain weight than to lose weight, likewise, it’s easier to get into debt than to get out of debt. It’s way too easy to accumulate debts than saving money to pay off the debts. But if you can follow the credit card debt reduction tips and ways on how to pay off your credit card debt with a little discipline, you will see your credit card debt reduction works.

However, many of them have managed to get out of credit card debt. You can be debt free too if you do your part to pay off your credit card debt as fast as possible.

Here are some credit card debt reduction tips that many debtors have used to free themselves from credit card debt successfully:

1. Stop Using Your Credit Cards. As a credit card debt woman who has been paying off my credit card debt for more than one and a half year, I totally agree with this. You’ve got to stop using your credit cards to avoid adding new debt to your existing total credit card debt.

By not adding new debt to your old debt amount, you find yourself getting out of debt faster and more easily.

2. Pay More Than the Minimum Payments. After making a list of the balance owed on each of your credit card, along with the interest owed, start making the minimum payment for each card. If you have extra money, pay more than the minimum amount on the credit card that has the highest interest or the lowest outstanding balance.

Paying more than the minimum payment on the highest interest rate card saves more money as you pay your credit card debt down while making more than minimum payment on the lowest outstanding balance card gives you a boost and encouragement to pay off the rest of the credit cards fast.

3. Seek Debt Free Relief Help. You can consider debt consolidation, debt management program, debt settlement plan or credit counseling for your credit card debt. Each of these debt free management plans helps you consolidate or restructure your credit card debt into one so that you pay one lower monthly repayment to one creditor on one date.

There are non-profit credit management agencies or organizations that can help you manage your finances and restructure your credit card debt for free, so don’t fall easily into credit management scams.

Being burdened with credit card debt is definitely no fun. On the contrary, it stresses you out, especially when you are falling behinds on credit card payments and banks keep haunting you with phone calls and warning letters.

You can get out of debt fast too if you do your part to follow debt reduction tip advice that helps you pay off credit card debt fast.

Whether you owe hundreds or even thousands of credit card debt, it’s wise to get rid of it before it gets out of control. It’s better to walk around without carrying a ton of credit card debt. How I wish could walk around carrying only cash!

Speaking from my own experience, getting out of debt is a long, drawn out process. It takes months, even years to get out of debt but it can be done.

To get out of debt fast without filing bankruptcy, try this simple, yet practical credit card free debt reduction tip list. It’s workable if you stick to it diligently.

List Out the Outstanding Balance of Each Credit Card. Spread out your credit card statements and jot down how much you owe on each, and their respective interest rates.

You may organize your list of credit cards from highest interest rate down to the lowest, or from lowest debt amount to the highest.

Find Out the Minimum Payment on Each Credit Card. If you can’t afford to pay off all your high-interest debt at once, it’s fine. Settle the first credit card on your list, the one with highest interest fees on. Then move on to the second one.

While paying off the first card carrying the highest interest rate by paying as much as possible over the minimum, you must also continue to make minimum payments each month on the lower-rate cards.

Use Cash. If you have been in credit card debt long enough, you will agree with me that cash is king.

By following this simple yet practical credit card debt free reduction tip list, you can be rest-assured that your credit card debt won’t get out-of-hand. Eliminating needless debt also saves you money, lessens stress, and boosts your credit rating.

I am a work at home mom who was once loaded with $23,321 credit card debt!

If you are also one of the many people in deep credit card debt trying to pay off your credit card debt, there is hope! You can get out of debt by following the helpful tips that I have been using to pay down my staggering credit card debt from $23,321 to $13,632 in one and a half year.

1. Know Exactly How Much Credit Card You Owe. If you want to eliminate your credit card debt, you must know exactly how much debt you owe. Sit down, spread out all credit card statements and add up the outstanding balance of each card.

2. Cut Down on Credit Cards. Keep one or two where you have still got a bit of good standing and then shred or transfer the rest. You should not however, cancel any of your cards, as this will have an adverse effect on your credit rating.

3. Negotiate a Lower Interest Rate. Call the credit card companies and threaten them that you want to move the balance elsewhere if they do not offer you a lower fixed rate for the lifetime of the balance or just reduce the interest rate. Every credit card company will sacrifice something to get their outstanding back, therefore they will plan a good repayment deal for you.

Once your credit card interest rate is lowered, you pay less finance fees. Thus, a larger portion of your monthly payments will help reduce the outstanding balance.

4. Cut Your Expenses to Save Money. Examine areas in your household expenses where savings can be made. Use the money saved from the expenses to pay down your credit card debt. Even if you only pay an extra $50 a month along with your minimum payment due, you will be $50 less in debt.

5. Pay Extra Each Month on One Credit Card Debt. Start with the smallest debt and make a plan to pay it off. Once that balance is paid off, start on the next balance. Make the same minimum payment due plus the amount you used to pay off the other account. You will then repeat that process for any other debt you may have.

Getting out from tonnes of debt is a long process but it is possible. As long as you take one smart step at a time, you can pay down your credit card debt!