I did make a few 2010 New Year Resolutions. They were not 100% achieved, but I did do my best to reach at least 50% for most of the goals.

In year 2010, I vowed to beep up my big emergency fund to RM6,000, that was 3 months’ living expenses. Did it go down in a blaze of glory? Of course not. I hit 50% of the RM6,000 goal.

In year 2011, my resolution is to fully fund my big emergency fund with five months of expenses or RM10,000 in my family’s case. It’s quite an achievable amount because of the existing amount saved in bank plus 12 months’ rental equivalent to RM4,800 plus a small portion of hubby’s monthly salary.

To be frank, had hubby and I not been in AKPK debt management program, it wouldn’t have been possible to stash away extra money as big and small emergency fund savings!

Of course, changing to a smaller cc car that required no car loan did help save up more money. From paying RM820 a month to zero, how do I feel? Great! ^.^

Speaking of emergency fund accounts, I have 2. One is for big emergencies and another is for small emergencies. There were quite a few small emergencies like two car repairs and a heater that sucked out about RM1,500 from the small emergency account.

Due to the above unavoidable expenses, the balance in the small emergency account shrank to about RM3,000 as of 31.12.2010. My resolution for the small emergency fund account is to beep it up to RM10,000 in year 2011. It can be achieved provided there aren’t many unexpected expenses.

2011 New Year’s Resolution – Fully Funded Big and Small Emergency Funds (RM10,000 Each)

Did you make any financial New Year’s Resolutions this year? What are they?

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).

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.

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.

05.05.2010 3.19 p.m.

Finally, the much anticipated book, Tip-Tip Kewangan Untuk Rakyat Malaysia, which was written by K.C. Lau, arrived at my doorstep this afternoon!

It’s a 353 mm x 250 mm envelope that’s too big to be stuffed into my mail box, so the postman left it on my door mat. Inside the envelope were two books sent by K.C. Lau.

One being his own book, Tip-Tip Kewangan Untuk Rakyat Malaysia while the other one, The 8-Day Internet Wonder by Edwin John.

I personally requested K.C to send me these two books for reviews because the topics fit my blog, www.FreeDebtManagementProgram.com, perfectly. My blog covers topics like credit card debt, AKPK debt management plan, emergency fund, saving money, spending, expenses, income streams, …

05.05.2010 6 p.m.

Okay, I am ready to share with you some of the tips!

As you can read from the title, Tip-Tip Kewangan Untuk Rakyat Malaysia, it’s written in Bahasa Malaysia. No sweat if you are a Malaysian, right?

There are 4 parts in the book:

Bahagian 1: Tip Kewangan Bijak
Bahagian 2: Tip Menjana Wang
Bahagian 3: Tip Menjimat Wang
Bahagian 4: Tip Melindungi Wang

As I am currently in AKPK debt repayment plan and very interested in picking up more saving money tips, I jumped to Bahagian 3 first.

Bahagian 3 – Menjimat Wang (Tip #13 – #17):

Tip #13 – Miliki Kereta Pertama Anda Secara PERCUMA. I totally agree with buying used/second hand cars to save money!

The first car hubby bought was a new one, Ford Laser 1.5, with RM826 monthly installment. He paid a total of more than RM55,000 for a 5-year auto loan and when he sold it, he got back only RM21,000.

The second car was a used Proton Wira 1.3, with RM620 monthly installment. The selling price was RM28,000 and it was at RM15,000 after 3 1/2 years.

The third car is a used Toyota Camry 2.2, with RM820 monthly installment and RM594 yearly road tax. It was bought before we  got into very deep credit card debt.

During the time of struggling with increasing credit card debt, we did think of selling it to cut down spending, but we couldn’t. The amount of car loan still owed to bank was simply larger than the car selling price; there’s still a need to fork out a few thousand ringgit.

Now that with less than RM14,000 car loan to go, hopefully it can be paid off without difficulty by August 2011.

Go to ‘AKPK DMP Blogger’s Book Review: Tip-Tip Kewangan Untuk Rakyat Malaysia by K.C Lau’ – Part 2.

While living with parents, grandparents and other adult siblings under one roof after becoming of age is uncommon in America, it’s perfectly normal in Asian countries like Malaysia.

I grew up in a big family of 8. Well, not the ‘parents + kids = 8 people’ family, but a family of eight that consisted two uncles, grandma, mom, three sisters and me.

There was no privacy to speak of with 8 family members living in a double-storey house of 3 bedrooms and 2 bathrooms. But of course, privacy was not my main concern at that time.

Now at the age of 39, working from home and living frugally due to credit card debt, privacy is my main concern. I don’t think I can live with other family members in one house. I am soooooo used to my quiet life that I can go crazy if I have to:

1. chat with family members most of the time (I can sit in front of my computer without uttering a word the whole day, but can I do the same when there are family members around? I have to talk when grandma/mom/uncle asks me questions, you know);

2. bear with the noise from radio and TV (there is no TV in my rented flat here and I seldom listen to radio now);

3. do more household chores (imagine the loads of household chores when there are 8 people and I am the youngest in the family!);

I am glad that I don’t have to live with my parents-in-law (they passed away long before I knew their son) and my mom (she lives in the house that she bought with my younger sister).

Like me, my mom is also used to living alone; she simply can’t get along with others.

For now, I don’t want to live with other adult family members under one roof again. Maybe one day when I am older and wiser, …

So, are you living in a multigeneration household to save money?

Fine! I accept the fact that I have failed many times, but I am not ready to call it quit. I want to try again. Yup, I am going to start tracking my spending again! Wuahaha!

Okay, let me see if setting up a 30-Day Challenge of Tracking Every Dollar and Cent works to push me into recording my daily expenses and stretching every dollar and cent I have!

So, today is Day 1 of my 30-Day Challenge. What have I spent on and how much?

Breakfast – RM2.20
A Pack of Corn Caps – RM5.90
Lunch & Dinner – RM8
Cold Drink – RM1.40
Fruits – RM2.80
Vegetable – RM1
A Few Packs of Biscuits – RM11.30
Total Spent: RM32.60

* Fixed payments like car loan installment (RM400), bank overdraft interest charge (RM200), home loan interest charge (RM375), hubby’s AKPK debt repayment (RM360) and my AKPK debt management plan repayment (RM320) are excluded.

What a surprise, right? How can someone living in a hot, humid country like Malaysia live without a fridge? Well, Hubby the School Teacher and I the AKPK DMP Blogger have survived without one for about 10 years!

Since I moved out from my uncle’s house and lived with hubby in 1999 or 2000, we have never owned a refrigerator. Has it come across our minds that we should get a small fridge? Oh, yes, of course.

But then the thought of buying a refrigerator is almost always wiped out after considering its usability. It’s not a NEED at all in our house!

First off, hubby’s stomach is not used to cool stuff. He can’t consume cold fruits and drinks which are right taken out from the refrigerator at all. If he does, he will have a stomachache or diarrhea.

Next, I cook twice or three meals a week only. Since I don’t cook 2 or 3 meals a day, there is really no need to stock up meat, vegetables and cooking materials in the fridge.

It’s good that there is no fridge in my house. It saves me money from buying unnecessary foods and drinks to fill up the fridge and paying increasing electricity bills.

Maybe, maybe one day, I will consider buying a mini fridge to just keep my favorite cheese, yogurt and ice cream.

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.

It’s the December issue of The Malaysian Women’s Weekly at only RM3.50, rather than its usual price of RM5.60. You know, RM3.50 for 352 pages!

But what I love most is the Christmas Special promotions where there are gifts and hampers to be won. Since I hadn’t taken part in any contest or giveaway for a looooong time after I got into deep credit card debt and also enrolled in the AKPK debt management program, I decided it’s time for me to have fun with contests and giveaways.

Who knows? Maybe I am lucky enough to win a cooking pot, a detox program, a spa treatment or a vacation that saves me money. Starting now, I am going to join as many contests and giveaways as possible.

If you love to take part in MWW’s giveaway contests, hurry and get a copy of this month’s The Malaysian Women’s Weekly magazine.

Of all the ten contests, I only sent in my entry by sms to WIN 28 San Remo Pasta Pots Worth RM180 Each and WIN 32 Juvanex Hampers Worth RM160 Each. Hope to win either one of the contests.

Or should I take part in all of the ten contests? Not necessary, right?

I am listing all the Christmas Special promotions. See whether you are interested in sending SMS to win one of the contests.

1. WIN 22 Sarah Jessica Parker EDP Worth RM225 Each.

2. WIN 10 Origins Starting Over Hampers Worth RM583 Each.

3. WIN 22 TriAction Age Defender Creams Worth RM228 Each.

4. WIN 16 Maquillage Make-Up Hampers Worth RM350 Each.

5. WIN Colmar Tropicale Berjaya Hills Stays Worth RM6,200.

6. WIN 50 Ferrero Rocher Products Worth RM100 Each.

7. WIN 50 ICI Dulux Supreme Paint Cans Worth RM100 Each.

8. WIN 28 San Remo Pasta Pots Worth RM180 Each.

9. WIN 36 Rilax ZZZ Hampers Worth RM145 Each.

10. WIN 32 Juvanex Hampers Worth RM160 Each.

There is one thing that I don’t understand, you know. Why didn’t The Malaysian Women’s Weekly get its own domain name? Instead it is using a blogspot, wewantmww.blogspot.com. My two cent only.