Could you afford to buy a house?

The reason why I am so eager to share my knowledge with the youth and young adults is because generally most of them are not aware of the future they are heading to in this high cost of living environment. Let me present you a scenario so that you would have a better understanding of what I mean.

A general double-storey link house in Kota Kemuning in the Klang Valley would amount to approximately RM500,000. Imagine you make a down payment of RM100,000 and take a 30 years housing loan with a principal amount of RM400,000 with an interest rate of five percent, your monthly instalment would be around RM2,147. If you were to service this loan for 30 years with the stated monthly instalment amount, your total loan repayment would amount to a whopping RM772,920 (RM2,147 x 12 months x 30 years). In fact, you are paying a total interest amount of RM372,920 (RM772,920 minus RM400,000) and that is almost a 100 percent of your principal loan amount. 

Items:                                RM

House Value:                     500,000

Downpayment:                 100,000

30-Years Housing Loan: 400,000

Interest rate:                         5% 

Monthly Instalment:          2,147

Total Repayment:              772,920 (Principal + Interest)

Total Interest:                    372,920

It literally means all your salary increment and other bonuses you might get in future will be used to pay the interest amount of the home loan you make. That is why it is a rat race for many as they find themselves not having enough money despite their salary increment, extra income and bonuses.

The above calculation is based on CIMB normal housing loan package at BLR -1.6 percent on October 5, 2011. The BLR rate was 6.6 percent on that date which makes the interest loan to be five percent. You can change the figure to suit different scenarios (different principal amount, interest and number of years of repayment) by using the CIMB housing loan calculator available on CIMB website. Just google ‘Home Loan Affordability Calculator - CIMB Bank’ and you will be directed to the page.

The post: 'Do you have RM200,000 CASH by 30?' will be shared later this week. 

The above is for educational purposes only! Readers should conduct their own research and make their own decisions.

You may contact me at writetogeorgeleong@hotmail.com or 017-6593817 for financial consultation :)

Heavy Rainfall Experience

 

1) I was taking a 20-mins walk to meet my mom yesterday, the sky was dark and the wind was strong. I walked faster but sadly, it rains and yeah... I am walking in the rain. 

2) It's a wonderful feeling to be wet and having the rain showering upon me. For that moment, I felt closer to life, somehow the feeling is different. 

3) As I walk along the road, I saw many motorcyclists got wet too. This made me remember that there are so many people who could not afford buying themselves a car, may be they could but because of the commitment for their family members, they decided to ride on a motorcycle. 

4) Suddenly, I heard a car horn at me, a gentlemen offered me a ride saying "Do you want a ride?" I politely answered "I am heading another direction, thank you brother." Very nice of him to offer me the ride, very kind of him.  

5) As the rain is getting heavier, I ran to a bus-stop to get shelter. With the heavy rainfall and strong wind, me and a few passengers eventually got wet too. It's fun to observe them. I guess we are all admiring people traveling in the car for they are protected from the heavy rainfall. Although the cars are just metres away, yet we can only observed the comfort those drivers had. As the saying goes, so near yet so far... a clear example of the rich and the poor.  

6) Yesterday evening was a simple day but it's meaningful to me. I learned that:

(a) There are kind people in this world who are helpful

(b) There are many people struggling financially every single day

(c) To ride a motorcycle while raining is dangerous and it's certainly not fun to do that over the years

(d) Waiting for a bus when it rains is definitely not fun as you may get wet and need to endure the coldness when the wind is strong

(e) To be in wet condition and the need to endure the coldness in the bus is not a pleasant experience

7) Imagine people facing the above for years?

Know Your Financial Position Package

1. Why many people work hard all day only to find that money is never enough? Wondering why your wealth has not increase over the years?

2. Let me present to you the 'KNOW YOUR FINANCIAL POSITION PACKAGE'

3. It comprises:
(a) 30-Page Powerful Action Manual - This manual is packed with simple fill-in-the-blanks worksheets plus step-by-step instructions for you to TAKE ACTION towards financial freedom!

(b) Personal Balance Sheet - You will know how much Liquid Asset, Positive/Negative Cash Flow Asset you have and finally you will know HOW MUCH YOU ARE WORTH!

(c) Daily Expense Sheet - You will have a picture of your daily expenses

(d) Personal Income Statement - You will know your  monthly and yearly income and expenses... Questions like how much you make in a month, which category that money comes from, what are your expenses will all be answered.

(e) Passive Income Worksheet - You don't work for money, let money work for you... With this worksheet, it provides you with a focus to increase your passive income every month.

(f) Goal-Setting Worksheet - You will know where you are currently and start making a plan for the future...

4. So how much this package will be? With all the above, this package is worth RM50/- However, I am only offering it to you now at RM10... YES! ONLY RM10 to kickstart your financial dreams. It's even cheaper than a movie ticket. THe reason GLLT and me is doing this is to encourage people to take responsibility and plan to ensure their financial well-being in the future.
 
5. 100% MONEY BACK GUARANTEE - I GUARANTEE you that this package will immediately get you started to realise your financial dreams. You will begin to have focus in increasing your wealth. However, if you are unhappy after applying it, you will get your money back, no question asked.

6. EXTRA Bonus: You will get RM30 discount if you want to invest in an E-Book titled 'Believe in Your Dreams'. The E-Book is worth RM50. With the discount, you are only investing RM20 for your financial future.

7. The E-Book will share the following information:
(a) Secrets Of The Rich
(b) 6 Steps To Financial Abundance
(c) 10 Habits Of Self-Made Millionaires
(d) Multiple Streams Of Income
(e) Growing Your Wealth At Millionaires Return In Unit Trust & Share Market Investments
(f) How To Manage & Control Your Expenses
(g) How To Make RM100,000/- Of Net Worth In Just 4 Years Without Quitting Your Job
(h) How About Making RM240,000/- In 4 Years?  

8. With just RM30 of investment in your 'Know Your Financial Position Package' & the E-book, you will immediately expose yourself to how the RICH make their money. You will also learn how to make RM240,000/- in 4 years without quitting your job.

9. And it's 100% Money Back Guarantee... RM30 investment is equivalent to a monthly prepaid. It's just RM1 investment in knowledge everyday for only 30 days, knowledge that will stay with you forever.

10. Inbox me, SMS or give me a call for your order. I will send you the softcopy after payment is made.

11. GLLT and me wish you great success in your life!

George Leong
017-6593817
cn_leong@hotmail.com

Birthday Feelings!

1. Today is the last day of my 23 years old of age and tomorrow I will be 24 years old. I think that it be great to pen my thoughts in this moment.

2. How do I feel? Hmm~ I have mixed feelings. One side of me I am looking forward to travel the journey of life; another side of me seem to feel that time flies really fast. I still remember when I am 17 years old preparing for SPM, thinking that it would be a very long time for me to graduate with a Bachelor degree. A blink of the eye, I am about to complete my Master’s degree, waiting for results, pray that it will go through well.

3. What am I thinking right now? In this very second, I feel that it is about time for me to start a habit of recording what I had done for the past 1 year. Is it a fruitful year…? Hmm~ let me see… GOD & PARENTS bring me to this world, letting me to experience what life has to offer. How about changing that sentence… what about offering something to life? Or how about both? I guess it works that way.

4. I want to experience what life has to offer and more importantly to offer something to the world by doing my part to make the world a better place, to contribute towards mankind. I thought about setting up a company to contribute towards building an inspiring, passionate and financial literate community where everyone is empowered to achieve success in life.

5. Currently, I am focusing more on building a financial literate community. I am going to launch ‘Know Your Financial Position Package’ very soon. (will explain more in my next blog posting). Part of the package involves a GOAL-SETTING WORKSHEET which could transform and change your life towards achieving great things you set your mind with. I am going to share with you what I am busy-ing at age 23, hope that give you a view about the impact of goal-setting!

5. For the past 1 year, I:

(a) Almost completed my Master’s degree

(b) Along with other academician, we contribute and produce great students (around 30) who scored well in academic, curricular activities, investments etc

(c) Gave 6 talks to 900+ students in the area of money management & investments.

(d)Trained 30+ workshop participants to start young and achieve financial freedom

(e) Contribute RM6,050 to the family, church and charitable organisations.

(f) Completed my duty as Sunway University Postgraduate Representative

(g) Set up an educational & training company

6. I guess that’s about it. Though I know it may not be very impressive compared to other successful youth in this country and other countries, I am glad about it. This is because as long I take action and move closer to my ultimate goal everyday, I am happy about it already. To me, that is SUCCESS! Of course the ultimate goal is an ethical one.

7. Thank you GOD, PARENTS, FAMILY & FRIENDS for all the love and care showered upon me. Your kindness is much appreciated. I THANK YOU ALL FOR THAT!

8. Let me and others welcome the birth of a new age. For me, it be 24 years old. I am on track towards achieving the goals set for age 24 hehe~^^

9. Stay tuned for my launching of the ‘Know Your Financial Position Package’.

10. One last thing, my birthday wishes will be everybody to be healthy, happy with family members and friends, lead a meaningful life, promote peace and harmony, and willing to listen when I approach you to share about financial strategies LOL~^^

11. HAVE A GREAT DAY EVERYONE!

HAPPY BIRTHDAY~^^

YOUTH MONEY MANAGEMENT DILEMMA

Youth in the current era is certainly facing a money management dilemma, to save or to spend! Let us take a look at the past.

BEFORE
Youth of 30-40years ago think very differently. When they graduate with a degree and enter the job market, SAVINGS is their priority. They would take a walk or a bus to work. Owning a car is out of the question. It's not to say it is convenient back then, but it is all about the endurance they are willing to have for a better life. For those who can afford a car after 1-2 years working, buying a second hand car was their choice.

NOW
Youth these days love the word 'comfort'. They love to enjoy, life is short, so why not enjoy right?
When they graduate with a degree and enter the job market, SPENDING is their priority. They would quickly buy a FIRST-HAND CAR to work in the name of convenience. If there is no car, how am I supposed to work? HALLO~ To take a 20 minutes walk is out of the question... That is the difference! Youth these days would love to take a 'free loan' from the parents to pay for their car downpayment and instalment and not willing to sacrifice and save hard to give their parents monthly allowance. Yet alone their grandparents and relatives. To them, their personal well being COMES FIRST, others comes SECOND! Guess that tells of a person character isn't it?

CURRENT GENERATION HUGELY IN DEBT!
If you really think about it, most of the youth or rather working adult are hugely in debt. With tuition fees being so expensive, most of us take a loan whether its a loan from retail banks or PTPTN loan. Most of us will have a negative net worth (All personal assets minus All personal liabilities). Example: - RM48,000...

Yet, many youth opt for a first hand car when they enter the job market. The level of debt will just increase, never really putting a thought that 'YOU HAVE TO PAY BACK THE DEBT ONE FINE DAY.' They prefer comfort, convenience and lifestyle.

MATERIALISM
Happiness is based on the number of material possessions you had... this is what some youth thinks about. They go for branded stuff, thinking people will give them a good impression. There is nothing wrong to go for branded goods as long they could REALLY afford it. Lets be more personal... Imagine if you are heavily in debt, it literally means you still OWED people money. Yet, having a i-Pad 3 or i-Phone 4S is a must for you. In fact, you do not really qualify for these kind of gaggets isn't it? If these gaggets help you to make more money, then it is a good investment but if it is not, you are not making a wise decision.

SOLUTION
Having a different mindset. Always apply the strategy of DELAYED GRATIFICATION. It means you choose to sacrifice now (save and invest) to enjoy the benefits (large saving and investment return) later on. Be responsible in leading your life. Choose to donate and benefit one's life. Choose to travel the journey less travelled, and it will be a journey of a life time. A journey that is so meaningful and fruitful, that you will feel so proud of yourself every single day. That makes your loved ones feel proud.

Isn't that what you want at the end of the day?

Meaningful Thoughts

It was a great concert at Stadium Merdeka Kuala Lunpur, the fans were crazy about him... A wonderful experience for me as this is the 1st time I go for a concert. I wasnt really shouting or cheering in the concert to save my voice for the week (sore throat), and hmm~ felt uncomfortable cheering for a guy. I may cheer and shout for SNSD LOL... It was raining a little, a cool experience~^^

When everyone is cheering and enjoying the concert, I actually sat back and have some deep thoughts about something. Guess what it is?

I was thinking about INDEPENDENCE DAY! As we are at the center of the Stadium (RM388 ticket), I realise that was where our 1st Prime Minister stood, shouting MERDEKA, MERDEKA, MERDEKA! Anybody actually knew what was I thinking? Hmm~ I guess I am the only one, and if I am lucky, may be my future dear wife would understand me totally.

Because of the effort and sacrifices by our ancestors of the past for independence, we get to enjoy the fruits of it...and yes, Lee Hom's concert. It is because of their sacrifices, we are here to enjoy.

One question: Are we appreciating it? or even had a thought of it? Hmm~ again, I guess actions speak louder than words. I always believe in actions and not merely words. We can celebrate Independence Day on 31st Auguest, claiming that we understood the meaning of it. But~ there is a but... are we really appreciating it throughout our lives, or it's just 31st August.

Food for thought everyone!

And yea, its always good to be at this historic place enjoying Lee Hom's concert with your dear ones, I had it. LUCKY ME~^^

Winning the Race of Life Series - 'Time is the fairest gift of all'

TIME... the most important and fairest thing of all. No matter how poor or how rich you are, everybody has 24 hours every single day.

Different people utilize their time differently. During spare hours, some would prefer to sleep; some prefer to read while some prefer to faceboook. Different usage of time would therefore yield different results.

If a person wants to create wealth, it is obvious to spend time learning how to create wealth. If a person wants to have a healthy body, it is obvious that a person spend some time to exercise in the gym or in the park.

For most people, taking a 8 hours sleep is usual. If I were to calculate the total number of years of a person who sleeps 8 hours a day using a calculator (from age 0 - 80), to my surprise it amounts to a staggering 26.67 years of our lives. If you sleep 10 hours every single day, you figure it out how many years you spend sleeping.

If a person spends 2 hours facebooking every single day, guess how many years you are sitting in front of your laptop gossiping or be a busybody (from age 15-70)? The answer is 4.58years of your precious life. However, if you spend time facebooking to gain or discuss knowledge of creating wealth with your buddies, you are investing 4.58years of your precious life in gaining knowledge about wealth.

Well, I am not writing here to tell you not to sleep or not to facebook at all, I am just trying to show you how precious time is, and how we should utilize it properly. The time is ticking every single second, seconds gone will not be coming back forever.

Solution: You may apply this time management exercise. Have a timetable for yourself (the moment you wake up from bed till the moment you sleep) and plan how you should utilize your time effectively.

Example:
1.Time 2.Activity 3.Closer to my goal?
8-9am
9-10am
10-11am
---------
---------
---------
10-11pm

Ask yourself questions like:
(a) Is this activity drawing me closer to my goals? If it doesnt, SCRAP IT!
(b) What are the activities that draw me closer to my goals?
(c) How could I maximise my time in these activities that bring me closer to my goals?

In short: Only FOCUS on activities that move you CLOSER TO YOUR GOALS!

I guess you would have an idea how precious time is to you right now... For those who are poor and in the lower middle-income group, don't you think you should work harder and create wealth for your family, or bring your family out of the low-income group. The rich is getting richer, are you getting poorer and poorer and not doing anything about it?

Let me give you a real-life example:

I met my hometown friend during Chinese New Year. We had a wonderful drink together and he shared about his plans to bring joy and wealth to his family. He is an accountant and works in Singapore. He saves like crazy, RM4,500 every month, that would amount to a total of RM54,000 every year. By the way, he is only 26 years old.

He and his elder brother recently bought a double-storey house for their parents for a better living as the single-storey house they are staying right now is too small. In addition, he plans to buy a RM150,000 car for his daddy who has worked so hard over the years to raise him and fund his education. He wants his dad to enjoy the comfort while traveling.

What I am emphasing here is he takes action to plan, to save and to invest and finally get to enjoy a better standard of living with his family right now.

THis is a classic example of what people should focus on these days. If you are from a poor family, shouldnt you be working even harder to create and bring wealth to the family? If you are from a rich family, shouldnt you be taking 100% responsibility of your life and build your own income and pay your own bills? Shouldnt you be independent? If you are already rich, shouldnt you be focusing your time to educate the rest about your secrets to success and contribute towards the community?

That would be the greatest gift of all to the community...

Food for thought ladies and gentlemen.