Wednesday, August 30, 2006

High Risk Forex Trading

Talking about investment, my friend asked me about Forex trading. I advise her not to try to invest ( or speculate) on Forex due to high risk.

To predict the movement of one currency exchange rate is very complicated and there are many factors that affect the up & down of one currency, even the experience Forex dealer in banking institution can not get the right prediction, how can we, the less knowledgeable one not to suffered losses from this high risk game.

To predict the movement of the currency exchange rate is almost equal to gambling in Casino. Unless you are the 'expert' in dealing with Forex.

Monday, August 28, 2006

Good Sources on Investment Information

Must read this book on the left for anyone who wanted to be success investor. I have read it last year and regreted for not having it 20 years ago.

I have added a few links in my blog:-

Bursa Malaysia - You can obtain all information related to stock listed in Stock Exchange Malaysia

The Edge Daily - All about Malaysia biz news

I capital. biz - One of the best equity investment analyst in Malaysia

Malaysiafinance blogspot - Learn from him on regional equity market

Sunday, August 27, 2006

John Vs Peter

In following years, John's salary increment can not matched the increased expenses in the family ( refer my post on 22/8/06), therefore John has no saving, he has to borrow from friends or relative occationally when they need money urgently due to unexpected expenses such as medical fee or children's education fee. John's finance is in trouble and will continue to be so...........

Peter's salary is less than John, but because of him control his spending wisely and has a saving in early age, and invest part of his saving intelligently, he managed to grow his wealth from the returns of the investment. Peter now is enjoying his work and only incurred limited liabilities for his flat. Peter's finance is well managed and enjoying good returns. He is living happily.

Don't you want to have a happy life like Peter and to avoid what experience by John ?

If the answer is 'YES', then you need to be responsible to you "MONEY" by manage your cash wisely, know your income & spending details, set aside certain amount of money for saving every month without fail, do not over spend and start to acquire investing knowledge by reading more investment book.

Thursday, August 24, 2006

How investment made money for you

I computed out 2 simple table on how your investment will be on the 10,000 initial capital, inject 2,400 investment yearly, one with assumption of 10% returns yearly, another with 20% returns yearly. See yourself for the wealth accumulated on the 25th year.

Whether you will get 0% returns or 20% or even higher rate of return, very much depends on your :-

Investment knowledge

Timing of the investment &

Your personal investing attitute

( I will discuss above subject later).

So start you reading today, equip yourself with the necessary knowledge & dare to dream for the good times ahead.

Tuesday, August 22, 2006

Why Financial Planning Is Important To Your Life

● You need money to live in this society, therefore you work for salary income, you spend the money to purchase goods or services. You save it if you have extra money left, you borrow money if there are not enough money for you to buy or pay the neccesities.

● Financial planning is all about how you handle your money, Earn it ? Spend it ? Save it? Or Invest it ?

● If you want quality life, to enjoy life without worring about money, then you need sufficient money / wealth to support this kind of living standard. Financial planning is the tools to help you to achieve it : Manage your personal money properly, to understand your personal cash flow, to accumulate your wealth by start saving as early possible, allocate a portion of your saving for investment, invest intelligently by getting 15%-20% yearly returns in the long term period.

● You will enjoy quality life without worring about money if you succeeded in proper financial planning & invest intelligently.

Below are 2 examples of how your life will be affected by how you handle your money.

A) John aged 35, is a worker in one factory, he earned RM1,600 a month. His monthly expenses is car installment ( 600 ), petrol ( 300), food & misc expenses (300 ). He has extra 400 after deducting the monthly expenses. Sometimes he save it, sometimes he use it to buy things that he love. ie latest handphone model or expensive fish.

He has work for 15 years, no saving basically, he got married recently, plan to have baby in 2 years time, his expenses was increased by 300 for flat rental, the monthly expenses will go higher when they got his 1st baby in 2 years time.

He finally realise that his income will barely enough to pay off his monthly expenses, he has no saving now and could not save untill he retired at aged of 60, even he got his increment yearly.

B) Peter, aged 32, is a accounts clark in a trading company. he earned 1,500 a month. He spend 200 for food, 200 for bus fare to travel to work by bus, use another 300 for daily expenses. He save the extra 800 monthly.

Peter has saving of 20,000 in bank account. He plan to use 10,000 to invest in shares and expected to get a returns of 15% yearsly. the balance of 10,000 to save in FD & get a returns of 3.7% yearsly.

Peter gets an increment of 200 from his current employment, he is now planning to buy a 15,000 second hand car, pay monthly installment of 300. He will incurred another 200 of petrol fee. He still have 500 extra money to save monthly.

Occationally he will use part of its extra money to buys things he love.He also feel more secure because he knew that when he retired at 60, his investment income & saving will be there to support his living cost.

Why I use 'SS' to name this blog

SS is Small FiSh :
Most of us are small fish, work hard daily to earn a living by employment. Every month get a pay cheque of few hundreds to few thousand (if you are the lucky one), after deducting the daily expenses eg. Petrol, foods, rental, family expenses, there are not much left to take home for saving.

SS is Slow but Sure :
This my investing believe, investment is a long term journey, get it started on early age, invest in small amount (even lesser than RM1,000), grow it slowly, no quick money, but be sure the investment will give you better returns through a long period of time (it's not impossible to get a yearly returns of 15%-20% ) Your dream to live a quality life & get prosper will come true.
I hope my blog will help you on achieving your dreams to live quality life by better financial planning & increased wealth.