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.“

Perfect Timing For AKPK Debt Management Program Blogger To Re-Read Finance Books?

During home cleaning in Ipoh on Thursday, I found some personal finance books which I bought many years ago! I think they were bought years before I was loaded with credit card debt or when my credit card debt was not that staggering.

Multiple Streams of Income by Robert G.Allen, The Millionaire Next Door by Thomas J. Stanley, Millionaire Women Next Door by Thomas J. Stanley, Rich Dad, Poor Dad and Rich Dad’s Guide to Investing by Robert T. Kiyosaki, The Richest Man in Babylon by George S. Clason, …

You know how much the book of Millionaire Women Next Door by Thomas J. Stanley? Phew, RM108 in year 2004! Year 2004? Ya, my finance was okay at that time. Gosh, I must have been mad to have bought such an expensive book!

It’s apparent that I didn’t apply any of the financial tips from any of these bestsellers. If I had learned and applied the tips in the book, I wouldn’t have been in such a deep debt trouble and had to enroll in AKPK debt management program.

After struggling so much financially, I think re-reading these financial books now may bring me more insights and results than 5 years ago.

Compared to 5 years ago, I am now more responsible for my finances and willing to apply what I have learned to pay off credit card debt fast, cut down spending,  save more money and increase income.

Being in AKPK Debt Management Plan Makes Saving Possible and Thus Paying Out-of-Pocket Expenses Easier.

So far, we have spent RM301.05 on the vacant house in Ipoh! RM187 on water meter re-installation, RM44.05 on fuse and electricity re-installation, RM48 on a kitchen faucet and RM22 on water pipes.

Guess what? There will be more spending on leaking pipes (RM200) and installing a unit of air-conditioner plus cleaning an old air-conditioner (RM1,400).

Since the air-cond technician is hubby’s kampung fellow, it’s possible that we can split the amount into 2 or 3 installment payments with 0% interest charge.

So it’s going to be about RM2,000 out of the pocket before we start seeing the RM400 monthly rental appear in our joint saving account in July.

June is a free-rental month for the tenants because they clean up the super dirty and messy vacant house for us.

As they are hubby’s party member fellows, hubby spares them the 2 months’ deposit. They just have to pay RM300 for water and electricity deposit.

Deducting the RM300 received as water and electricity deposit, the amount we have to fork out is roughly RM1,700. Phew, luckily we have some savings to help out a bit!

Thank God too because hubby and I are in AKPK debt management plans with low monthly debt repayments that make saving extra money possible.

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 Part 5.

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.

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.

Being a work from home woman who makes money online, this Bahagian 2: Tip Menjana Wang surely sparked off my interest. Making money online, woohoo!

Bahagian 2: Tip Menjana Wang (Tip #8 – #12)

Tip #8 – Menjana Pendapatan Pasif Sambil Melayari Internet. Okay, there are suggestions of setting up blogs, Squidoo lenses and HubPages to make money here!

If you are thinking of making money online, ya, the tip here gives you general ideas on how and where you can make money from online.

The tip here suits beginners who would like to make money online, but not me and other bloggers/internet marketers/affiliate marketers who are currently using the above mentioned money makers.

Tip #9 – Dapatkan Wang Tunai Daripada Barangan Terpakai Anda. Selling used stuff online at eBay and other auction websites? Opps, not for me!

Tip #10 – Jadikan Minat Anda Sebuah Mesin Menjana Wang. What’s my passion now? Blogging. Does it make me money? Oh, yes. Does it make me abundant money to pay off my debt fast or turn my vacant house in Ipoh into a homestay resort? Oh, not yet.

Let me dig into The 8-Day Internet Wonder by Edwin John, also given free by K.C.Lau to see if I can push my niche blogs to generate more money online.

Tip #11 – Tukarkan Kad Kredit Daripada Lawan Menjadi Kawan. Here you can learn how to turn your credit card into your friend rather than enemy by taking advantage of the grace period, interest-free installment plans, free gifts, rebates and reward points.

There are also tips on how to eliminate your credit card debt. K.C mentioned getting micro loans from family members/friends. Of course, when it comes to loans, there are interest charges involved.

To be honest, we did get some micro loans from family members at 10% interest rate per annum. It’s true that people are more willing to loan you money when you give them interests. And guess what? You tend to be less inferior in front of them because you pay them interests!

Tip #12 – Pelajari Peraturan-Peraturan Penting Dalam Pelaburan. Opps, about investments! I am not at this stage now, so I skipped this part here.

Go to ‘AKPK DMP Blogger’s Book Review: Tip-Tip Kewangan Untuk Rakyat Malaysia by K.C Lau’ – Part 4.

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.

30-Day Challenge of Tracking Every Dollar & Cent – Day 1 – RM32.60.

It’s a happy day today because it’s payday from Google AdSense. Ka-Ching, more than RM900!

I deposited half of the earnings into my personal savings account and the remaining will be used when my younger sister and her family come to visit me and hubby this Saturday.

A bunch of 9 family members! It’s for sure that the dinner will be on me and hubby. When we are in KL, they pay almost every meal we have together. So logically, it should be our turn to do so. But 9 people wor, ouch!

Okay, let’s see Day 2 for 30-Day Challenge of Tracking Every Dollar & Cent.

Breakfast – RM2.20
Tea Time – RM6.50
Cold Drink – RM1.40
Contact Lens Solution – RM14
Lunch – RM7
Total Spent: RM31.10

Oh, yes, another reason for me to be happy is the online tasks that came in the afternoon! More online assignments mean more income; more income means more savings for rainy days. Woohoo!