10 Tips to Get Extra Cash Instantly

You have exhausted your emergency fund. And you have almost overdrawn your current account and there are only a few dollars left in your savings account. You need extra cash. First, identify internal sources of fund where you don’t have to incur charges or interest before your get funding from outside sources. Here are the ten sources of fund:


1. Cash your fixed deposits: Sacrifice your interest for a premature withdrawal of your fixed deposit. Take out the amount you need and deposit the rest into your savings account.

2. Your children’s savings accounts: There are substantial savings over the years in your children’s savings accounts. You may withdraw but remember to top up later.

3. Liquidate part of your investment: Look into your stocks, shares, and unit trusts. Sell a small part of it to meet your cash requirements

4. Staff advance from your company: Salary advance is the quickest way to get cash without interest and charges. However, the amount will be deducted at the end of the month when you get your pay.

5. Cash value of your life policies: There is cash value in your life insurance policies. You can get a policy loan against the cash value. In fact, if one of the policies is investment-linked just do a partial redemption and you don’t have to repay. The policy is still in force.

6. Get a loan from your friends or relatives: You have to be thick-skinned. It is embarrassing to let your friends and relatives know your predicament. To maintain goodwill when you repay the loan, add a little extra.

7. Pawn your valuables: Don’t let those you know see you at the pawnshop. You can pawn your jewelry to meet your temporary needs

8. Get a personal loan from a bank: It may not be as fast as you think, but the banks are looking for people with good credit standing to give out personal loans. Be one of them. Interest will be charged to your loan and you have to repay in monthly installments

9. Get an advance from your credit card: You get immediate cash at a higher cost than a loan from a bank. You will be slapped with an advance fee and compounded interest as long as the amount is outstanding.

10. Borrow from a loan shark: This is the last resort. The interest rate is exorbitant. You have to make very sure to pay back fully on time or else this will be the beginning of your nightmare.


The best thing to do, however, is to earn some extra money to meet your cash requirements.

Source: 10 Tips to Get Extra Cash Instantly

Time, Money, Productivity, and Life

Do you feel guilty when you’re not doing something productive? In this age of time management, we can easily adapt the idea that if we are not being productive then we are wasting time. So we try to get super organized in an effort to be more productive.

We could claim our attempts to cram as much as possible into each day is based on the fact that life is short and we want to accomplish all we can. I’m sorry, but that argument just doesn’t hold water. Why? For one thing, it’s our natural tendency to seek out ways to enjoy ourselves, not to push ourselves to the limit.

How do you define time?

How we view the whole concept of time has a powerful influence on our priorities. If we buy into the “Time is money” approach introduced by Benjamin Franklin, then productivity becomes our first priority.

We all recognize that Ben Franklin was a smart guy, but when he said time is money I don’t think he was suggesting that we build our lives around that concept. By the way, he also said that “Credit is money” and we can all see the result of building an economy around that precept.

Putting a price on time

When we accept the idea that time is money we are essentially assigning a monetary value to time. How does that affect our perspective of life? It causes us (and others) to base our worth on how productive we are and how much we earn. This is a devastating point of view for several reasons. Let’s consider a few:

Fallacy #1. If I earn $50 per hour and you earn $500, then I must be worth 90% less than you are. If I accept this premise, then I will probably develop some limiting beliefs about my worth as a person. If you agree with this value scale, then you will begin to think of yourself as superior. Both of these points of view are damaging.

Fallacy #2. A highly paid professional who earns a fortune pumping deadly toxins into the environment will be viewed as more valuable than a dedicated teacher who incites his students to reach for their dreams while maintaining personal integrity. This “time is money” perspective would also place the loving, nurturing mother who gave up her career to take care of her family, on the bottom of the value scale.

Fallacy #3. The working person willingly sacrifices family time for a chance to raise his income because, in doing so, he thinks he will increase his worth as a husband and father. When he comes home too late to see his children in the evening he will sincerely explain, “I’m doing it for you.”

If time is not money then what is it?

In a sense, Ben Franklin had it right when he associated time with currency; he just chose the wrong one. You see, the value of money is tiny compared to the value of time, even though making a living does require that we spend some of our valuable time in that pursuit.

When we spend our valuable time we should view it as something that far exceeds the worth of money. Yes, it takes a certain amount of money to care for our material needs and wants, but that is just one, small aspect of life. And this brings us to the real point of this article.

Time is the currency of life

Some will argue that time is a concept created by man and that it really doesn’t exist. All I can say to that is – what happens to your life when you run out of time? See my point? We only have so much of this valuable commodity and when it’s gone all the money in the world can’t buy you more.

Here’s where a proper view of productivity can help. If our level of productivity allows us to care for our material needs while only spending half as much time doing so, then from a practical standpoint, we have actually gained a lot of time for other pursuits. In fact, isn’t that what’s behind the intellectual draw toward increased productivity? In a nutshell, more money in less time means more time doing what we want.

Keep your balance and avoid the traps

The real challenge here is to use increased productivity in a balanced way so we reap the benefits and avoid the pitfalls. Creating greater earning potential so we can spend more time doing other things will likely require a period of focus and dedication. Once our efforts begin to pay off we need to avoid the following traps.

* Getting obsessed with earning more, more, and still more.
* Allowing super productivity to become an obsession.
* Forgetting why we chose this course to begin with.
* Slipping into the time is money mindset.
* Enslaving ourselves by continually increasing our spending.
* Thinking that more income changes our worth as a person.
* Endlessly trading the currency of life for mere money.

A synergistic approach

In life, there is either synergy, or there is conflict. The secret to avoiding conflict is to harmonize life’s many aspects so that they exist in a balanced and synergistic relationship with one another. What is required to maintain that sense of harmonious balance?

We need to keep the big picture in view and not allow ourselves to become hypnotized by the seductive lure of money. Our precious time is the real commodity of life. Recognizing its immense value will help us to spend it wisely.

7 Reasons to Buy Gold

Gold has reached its all-time high of 1600/oz in July 2011. Do you own gold? Is gold part of an overall portfolio? There are 7 good reasons to buy and keep gold:

1. Demand exceeds supply: According to World Gold Council, there is increasing in demand for gold especially in China and India but the supply or production is rather inelastic.

2. Hedge against inflation: Gold is able to protect your purchasing power while paper money depreciates in value because of the rising price of goods and services. It is also a good hedge against the declining US dollar as gold is bought and sold in U.S. dollars and it is also the world’s main trading currency.

3. Preserve your wealth: Gold is able to preserve its value over time while other asset classes fluctuate in value.

4. Price of gold is all the way up The chart, which is taken from GOLDPRICE, clearly indicates the upward trend of gold. The outlook is positive as the demand for gold is growing.

4.       

5. An essential component of your diversified portfolio: As you don’t put all your eggs in one basket, gold should be an important part of your overall investment because gold has a very low correlation to stocks and bonds. It is able to maintain its value and reduce your overall portfolio risk.

6. Golden companion for the golden years: Gold is good for retirement. Holding gold is like taking an insurance cover for your retirement fund. When all else fails, you still can count on your gold. Gold is less volatile and more effective in protecting against negative events such as political and financial instability.

7. Care-free way to invest: You don’t have to worry about physical possession of gold. All you need to invest in gold is to open a gold account with one of the financial institutions. You are given a gold passbook and it is as good as the actual gold bar of 999.9 purity. You can continue to buy and sell gold in a hassle-free way.

Are you going to your friendly banker to open a gold investment account today?

(This article is for your information only, consult your financial adviser before investing)

22 Things Money Can and Can’t Buy (Second of a two-part series in list)

1. Money can buy you an expensive house,

Money can’t buy you home sweet home.

2. Money can buy you a comfortable bed,

Money can’t buy you a good night’s sleep.

3. Money can buy you a fast car,

Money can’t buy you safety on the road.

4. Money can get education for your children,

Money can’t buy knowledge for your children.

5. Money can buy material things for your children,

Money can’t buy appreciation from your children.

6. Money can buy you a grand wedding,

Money can’t buy you a lasting marriage.

7. Money can buy you all the books in the world,

      Money can’t buy you intelligence.

8. Money can buy you health food,

      Money can’t buy you a healthy lifestyle.

9. Money can get you credit cards,

Money can’t buy you credibility.

10. Money can get you financial security,

Money can’t buy you peace of mind.

11. Money can get you services,

Money can’t buy you friendship.

12. Money can get people to work for you,

Money can’t buy passion and engagement from the worker.

13. Money can buy you a branded watch,

Money can’t buy you more time.

14. Money can buy you advertisement,

Money can’t buy you a trusted brand.

15. Money can buy you the VIP treatment,

Money can’t buy you respect.

16. Money can buy you a compass,

Money can’t buy you the direction to go in life.

17. Money can buy you delicious food,

Money can’t buy you appetite.

18. Money can buy material wealth,

Money can’t buy contentment.

19. Money can buy you a peaceful county mansion,

Money can’t buy you a cool, calm, and collected mind.  

20. Money can buy you excitement and thrill,

Money can’t buy you lasting happiness.

21. Money can buy a surveillance system in the office,

Money can’t buy the honesty of the staff.

22. Money can buy you an air-conditioner

Money can’t buy you a good feeling about yourself

Readers are encouraged to add more items to this list.

Pension and Retirement

In Malaysia, The Social Security Organisation (SOCSO)’s plan to introduce pension schemes for its contributors and the self-employed has been applauded by older working adults and for those who should be enjoying the golden years instead of working. These people are forced to work because they are unable to make ends meet and they have to support their children for their higher education.

How do you look at work in relation to retirement?


Work and retirement

Nobody should retire. If you do you will be bored to death. You can’t be doing nothing to pass the time. You still can find something interesting to do and at the same time create an income stream to supplement your retirement fund. If you are still working, just carry on. If it is something that you are interested in it is even better because it is not work anymore. The most important thing is to fill your time with useful activities even if you are no longer working.


Financial review
It is also necessary to review your financial situation in order to adjust your spending pattern according to available funds. Consider sending your children to higher education locally instead of overseas. You can also sell the bigger house and live in a smaller one if your children have a family of their own and they no longer live with you. Save the extra cash for future living expenses. Trim your budget to stay financially independent


Pension fund
Invest or save pension money when it is materialized. You can also accumulate the pension fund for an annual holiday. It can also be used to supplement your monthly spending should your monthly budget be overstretched. The best thing is to treat the pension as a bonus when it comes.

Credit Cards and Young People

According to a report from Credit Counseling and Debt Management Agency of Bank Negara Malaysia or The Central Bank of Malaysia, among the cardholders below the age of 30, 50% of them are unable to settle their credit card debt and they have to declare bankruptcy. In the survey, among the delinquent cardholders, 22% cannot properly manage their personal finance and another 27% cannot control the use of their credit cards.


What can young people, especially fresh graduates, do to manage their personal finance? Here are some useful tips


• Pay in cash: You will not get into debt when you pay in cash for all your purchases. Your spending is limited by your financial resources.

• Use prepaid card or debit card issued by Visa or MasterCard: For a start young people should use a prepaid card (it is preloaded with a sum of money and you use it as a credit card until the amount stored in the card is exhausted). You can also use a debit card and it is linked to your bank account. Like a credit card, you can charge your purchases to your card up to the maximum amount of your available fund in your bank account. You will gain credit card experience this way.

• Credit card: When you are using a credit card for the first time, remember to treat it like cash. For each Ringgit, you charge to the card back it up with cash for the same amount to meet payment at the end of the month. Do not opt for a minimum payment. You will not only incur interest but at the same time, it is the route leading to unmanageable debt and eventually bankruptcy. Use the card for convenience only. Don’t buy in credit to attract interest and debt.

• Impulsive spending: Do not show off your credit card by entertaining your friends lavishly with it. Do not buy what you want but use the card to spend according to your monthly budget. In this way, you stay out of debt. Getting into debt is easy but getting out of it is very difficult. Spend only your own money but not the bank’s money. Nothing is free in this world.


You can keep your credit cards but you have to spend within your monthly earnings and treat your cards like cash in your pocket or in your bank accounts. Settle the credit card bills promptly and fully to build your creditworthiness.

Wealth and Financial Freedom

Wealth & Financial Freedom

This article is written from a retirement perspective.
Financial freedom means having sufficient wealth to support your lifestyle. How do you measure your wealth?

Wealth

What is the worth of your wealth? You have to add up the value of your properties, cars,

investments, your share of business interests, the cash value of your insurance policies

and your various bank accounts. What do you get? Assuming it is worth10 million, do

you think it is the value of your wealth? It is not. You have to deduct all the borrowings

such as property loans, credit card outstanding sum, car loans, and other loans. Perhaps

the figure comes to around 4 million. Your actual wealth or rather your net worth is only

6 million. I usually calculate my net worth on December 31.


Financial Freedom

When you enjoy financial freedom, it means your wealth is able to support your needs and wants. Let’s take the above figure as an example. When you need 5 million to achieve financial freedom and you have only 4 million worth of wealth. You are short of 1 million to enjoy your financial freedom. However, when you need only 3 million to be financially independence your wealth is more than enough to support your lifestyle. This is a very rough example without considering inflation, future earnings, and fluctuation in the value of your investments.


Wealth and financial freedom

Your wealth does not necessarily give you financial freedom and your financial freedom may not be supported by your wealth. Your needs and wants to decide the size of your wealth to give you financial freedom.


Getting financial freedom from your wealth

You have two options to enjoy financial freedom. One way is to increase your wealth to match your needs and wants. Another way is to limit what you want out of life to match the worth of your wealth.


Financial freedom or wealth

In life, we aim to go after financial freedom. You need to take bigger risks to create greater wealth. You may or may not succeed.  On the other hand, financial freedom is within your control, you can live lavishly or frugally. It’s up to you.

Credit Cards to Monitor Your Spending in 7 Steps

Credit Cards

Your credit cards are wonderful tools to track, monitor, and control your spending.
Here is how you can do it:

1. You only need to use two credit cards, say, Visa and MasterCard

2. Use one of them, say Visa, for standing orders with the card issuer to charge telephone bills, electricity and insurance premiums

3. Use another card, MasterCard, for charging the following expenses when you go shopping:

• groceries
• clothing
• other household items
• children’s expenses such as books and stationery
• entertainment
• other expenses incurred irregularly such as medical or dental expenses
• holiday
• petrol

4. Review the charges for the first card (Visa) by looking closely at the monthly statements to see major changes especially your utility bills. Look for power wastage and reduce consumption. Cut down unnecessary telephone calls and then allocate a budget for this card. You should also use this card for the purchase of big-ticket items by taking advantage of the zero-interest installment plan. The amount to spend on this card is quite fixed.

5. Look at the monthly statements of MasterCard to study the spending pattern in the total amount from month to month. It gives you an overview of your monthly expenditures in these areas. After that you check the amount you spent for each item, namely, groceries, clothing, other household items, children’s expenses, and others, Identify areas where you can trim expenses and allocate an amount for this card and spend as budgeted.

6. By checking the statements of the two cards you can monitor and control your monthly spending. You will be able to spot excesses in your spending against your budget and be alerted to act accordingly.

7. The last thing is to look into your cash expenses. You should also allocate an amount as your pocket money to cover other expenses that you cannot pay by credit cards. Such expenses should include tuition fees for the children and their monthly allowances.


Using your credit cards to track, monitor, and control your expenses is a breeze.

4 Tips to Stay Out of Debt

Stay out of  Debt

Debt is like any other trap, easy enough to get into, but hard enough to get out of.
– Henry Wheeler Shaw


You are a young graduate and you have landed on your first job with decent pay. You have also acquired your first credit card. You are on top of the world. Wait, before you spend your hard-earned money consider the following points to avoid getting into debt:


1. Spend within your budget: Curb your temptation to spend on what you want. You have worked out your monthly income and expenses including setting aside an amount to save. You know how much is left for you to spend discretionarily. Keep to the limit

2. Credit card: Use your card like your cash. For each amount you charge to your card, you have to put aside the same amount to meet payment when you receive the statement. Don’t think that you can pay the minimum amount. Further spending plus the interest charged will snowball the amount beyond your means to pay. Bankruptcy is the outcome.

3. Your creditworthiness: Establish and protect your creditworthiness by paying your credit card statements promptly and fully to demonstrate an impeccable credit status. It helps when later in life when you apply for other loans.

4. Zero-interest installment plan: You may think that it is a great idea when a credit card issuer offers you up to 36 months to purchase big-ticket items without interest. You still have to factor the monthly installments into your monthly spending. If it is out of your budget, don’t sign for the item.


Live within your means and stay out of debt, it is much more difficult to be in debt and get out of it. According to Thomas Jefferson, " Never spend your money before you have it."

5 Quick and Easy Ways to Establish Your Creditworthiness

Creditworthiness

Building your creditworthiness is not as difficult as you perceive. Here are the things that you can do effortlessly to make your credit look good:


1. A permanent residence: This is the place where you live and also where the mail can reach you. You don’t want to give an impression to others that you are a nomad.


2. A regular job: A regular job confirms that you can hold down a job and able to provide documentary evidence of your monthly earnings.


3. Obtain a small loan: You may not need one, but get one and pay off the loan in a timely fashion until it is fully settled. The whole idea is to establish a credit history for future reference by financial institutions. The loan demonstrates that you are capable of getting one and paying it off. It is better than someone without a credit history.


4. Get a credit card. Another way to show your creditworthiness is to get a credit card and use it. Pay the amount fully and promptly every time.


5. Open a current account: It is another way to tell the banks and other financial institutions that you are able to manage a bank account properly without issuing bounced checks or overdrawing your bank balance.



It is very simple to establish your creditworthiness but yet so effective. When the need arises for you to obtain a loan you will get one easily and quickly.

Personal Financial Management is a Balancing Act

Personal Financial Management

“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey

Achieving your financial freedom is like juggling 10 balls at the same time; you have to perform a balancing act so that whatever you do in one area does not affect the other areas adversely. What are the ten areas?

1. Maximize your return on investment: The rate of return will determine the growth of your investment. However, the higher the yield the riskier the investment is. So it is a balancing act to maximize return and protect your capital

2. Purchase a house: How much you spend on your house will affect other areas. If you spend too much on your house, perhaps you have to spend less in other areas,

3. Retirement fund: Again, if you allocate too little you may not have enough during your retirement. If you provide too much the other areas will be affected.

4. Educational fund: Our aim is to allow our children to have quality education. There again we need to be prudent not to spend too much or else our retirement fund may be depleted.

5. Annual holiday: Spending a good time in a foreign country is a great joy, but doing it too often will drain your limited financial resources. You have to decide how much is enough

6. Daily living expenses: Do you want to spend lavishly or frugally? How you spend will affect your allocation in other areas.

7. Your emergency fund: It is to cover medical and out-of-work expenses: You have to consider leaving enough money to cover a period when you are jobless or you are unable to work due to illnesses.

8. How soon and how much you start to save: The sooner and the more you save, the faster it is for your money to grow. It means you will create a larger fortune because of the power of compound interest. But the more you save the less you will have to spend daily.

9. Purchase a car and changing cars: How big a car you buy and how often you change your cars will definitely affect your financial resources.

10. Your household income: The size of your household income will largely determine the allocation of your fund in various areas of your life where you need to be financed. Of course the more you have, the merrier it is but it is still limited.

Personal financial management is never easy. The most important thing is to stay out of debt and live within your means and be happy with what you have.

7 Goals of Personal Finance

Personal Finance

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand

Personal financial planning involves more than just living within your means. You have to start early to save for many purposes in life. There are goals such as buying a car, a house, maximizing your investment to accumulate a fund for children’s education, and retirement. You also need to avoid or reduce the risks of losses to your wealth and earning power. Lastly, you need to make arrangements to distribute your wealth in an orderly fashion before you are no longer around. Here are the seven goals in personal finances:


1. Eliminate high-interest debts: The first all-important goal is to get rid of all debts. Don’t think that you still can save while having high-interest debts such as credit card debts. The amount of interest earned which is way below 4% for your FD compounded annually just cannot keep pace with 18% interest charged on your cards compounded monthly Just remember that compound interest is a double-edged sword. At this juncture spend only on basic necessities until your outstanding debt is fully settled.

2. Budget: A budget is to allocate your spending within the limit of your income. A meaningful budget is one that includes savings, household expenses, and other monthly commitments such as insurance, installment payments. Follow the budget faithfully to avoid impulsive and unplanned spending

3. Income: The goal in this area is to increase your take-home pay from your normal employment. The other area to look into is to create passive income streams. On the common source of passive income is to collect rent from the property. The ultimate goal is to work less and earn more.

4. Expenses: One way to track your expenses is to look closely at your monthly credit card statements. Identify expenses that you can go without or reduce. Take advantage of tax relief and rebates to reduce your tax liability. Be able to distinguish between good debts (such as a loan to buy a house) and bad debts (use your credit cards to buy what you want and pay only the minimum amount).

5. Savings: Take advantage of regular savings and start saving early and allow compound interest to work wonder for you. The money you have saved is to earmark for down payments for a car and a house. Part of the savings is also used to invest and create a fund for your children’s higher education and for your own retirement

6. Protection: It is to safeguard your wealth such as your house from fire and other damages. Buy adequate property insurance coverage so that the risks are passed on to your insurers. You also need insurance cover to reimburse you for accidental and medical expenses and disability to carry on gainful employment

7. Estate planning: The aim of estate planning is to arrange in advance the transfer of your wealth to those you have in mind in a hassle-free way


Personal financial management is a long term activity. Things cannot happen overnight especially savings and investment. Be disciplined to monitor your personal finances on a regular basis. Make changes to suit changing conditions as you move along in life. The most important thing in life is to avoid gambling and not to incur unnecessary debt. These will lead to bankruptcy eventually.

10 Things to Teach Your Children about Money

Money

“If you wish to get rich, save what you get. A fool can earn money, but it takes a wise man to save and dispose of it to his own advantage.”― 

Brigham Young

Money is not everything but you can’t live without money. Talk to your child about money as soon as possible so that he can start young to manage money wisely. Here are the10 points to teach children about money.

1. Time is money: Promote the savings habit when your child is young. Show your child the wonder of compound interest when you start saving early. As an example, just save 100 dollars at 10% interest and keep it for 50 years and your money will grow into $11775.91 without doing anything on your part.

$100/=	Compound Interest @ 10%
YEAR	PRINCIPLE	INTEREST	BALANCE
1	100.00	10.00	110.00
2	110.00	11.00	121.00
3	121.00	12.10	133.10
5	146.44	14.64	161.08
10	235.91	23.59	259.50
20	611.58	61.16	672.74
30	1589.21	158.92	1748.13
40	4125.23	412.52	4537.75
50	10705.38	1070.53	11775.91

2. Live within your means: Set examples for your children. Do purchases for your child according to his needs. Don’t follow other parents what they buy for their children. The financial resources of each and every family are different

3. Happiness is not about the possession of material things: Instill in your child’s mind that happiness is not necessarily wearing branded shirts or having a PS3. Happiness can be achieved by having a good time with your child. Your presence with your chills brings much more happiness than your presents

4. Avoid wastage - Cultivate the good habit in your child to conserve energy by turning off the lights or air-conditioning when not in use. Do not allow the tap to keep running. Lead the way at home for your child to follow to prevent wastefulness.

5. Use the pocket money wisely: Pocket money should be given at the beginning of each month. This will allow your child to budget for savings and spending for the whole month. If your child needs a big-ticket item he should keep aside and accumulate an amount every month until the desired amount is obtained for the item.

6. Set limit for the purchase of each item: Specific an upper limit for the purchase of each item especially clothing and shoes. Look for comfort and durability and not brand

7. No impulse buying: Make it a habit that shopping is done according to the shopping list only Allow you, child, to learn about self-control

8. Gifts on special occasions only: The best time to send a gift is when your child has done well in his year-end examination. It is a recognition of his effort and achievement

9. Limited resources: Your child needs to know the financial resources of every family is limited. There is a budget to follow every month so that the limited money can cover monthly expenses as well as savings for rainy days.

10. Borrowing: A very important lesson for your child to learn is that borrowing money to buy things you want is a bad decision. Borrowing means incurring interest and paying more for an item. The best thing to do is to save enough to buy in cash.

When your child is able to apply what he has learnt about money, he will be able to accumulate wealth.

10 Ways to Get Extra Cash

Extra Cash

Where do you get extra cash when you have exhausted your emergency fund?

Look into your own sources of the fund before you get outside help:

1. Children’s savings accounts: Here is a good source of funds that you can tap into quickly with no hassle.

2. Your fixed deposit: Here is yet another source of quick cash but you have to sacrifice your interest income for premature withdrawal.

3. Cash value of your insurance policies: You don't have to surrender a policy, but you just get a loan against the cash value. You can get your cash in just a few days. You can also redeem your investment-linked insurance policy just like you liquidate your unit trust. There is no need to make repayment

4. Sell your investment: Dispose of part of your shares or your unit trust holding to meet your cash requirements

5. Pawn your valuables: Another quick way to get cash is to pawn your gold rings, gold chains, gold coins, or other valuables but don't let your friends or relatives spot you at the pawnshop.

6. Cash advance from your company: You can get your salary advance without interest easily from the place where you work.

7. Credit card advance: You will definitely incur substantial interest but it is a quick source of cash and is better than getting the money from Ah Long or a loan shark

8. Borrow from your friends and relatives: You have to be thick-skinned and it may not look good for you financially but what to do when you need the cash. Perhaps you can be kind enough to repay the loan with an extra amount to make your lenders happy.

9. Personal loan or a secured loan from the bank: It may not be as fast as you think but it is a way to secure the needed sum. You may not require collateral for a personal loan but you can secure an overdraft facility with your own house.

10. Loan shark: This is the last resort. If you can, avoid it. If you must borrow, make very sure that you pay back promptly or the debt will be snowballed into a sum beyond your means to settle and that is the beginning of your nightmare.

One good thing about getting a loan from financial institutions is that you can establish your creditworthiness by making timely repayments. You are better than someone with no credit history

Pay by Credit Cards to Reduce Your Expenses

Beware of little expenses. A small leak will sink a great ship

                                                          (Benjamin Franklin)


I have a few credit cards and I take advantage of the cards to reduce my spending:


• EON Bank Visa: I have made arrangements with the bonk to charge all my insurance premium, monthly telephone bill, and mobile phone and electricity bills to this account. It is very inconvenient to pay so many bills all by yourself. The advantage of charging them to my credit card is that I get one point for each ringgit charged. With the accumulated points I can redeem for useful household items such as cookers, Thermos flasks, ovens, and wallets. You have to pay for these items normally. EON bank credit cards are not free for life. You have to charge 12 times on your classic card or 24 times on your gold card in a year in order to waive the annual fee. With the standing orders, I don't have to worry about the annual fee. I will keep this card.

• EON Bank MasterCard: I use the card to purchase big-ticket items like a mobile phone at 0% interest in installments up to 24 months with no extra charges for the purchase and it does not hurt my monthly budget. The monthly installments and other purchases will offset the annual fee. I will give up this card upon full payment of the monthly installments.


• Citibank Giant Visa: Every time I shop at Giant I get 2% rebate. I also get up to 1% rebate at other outlets. This card is only free for the first year. You don't get an instant discount. The rebate is in the form of Giant vouchers in the denomination of RM20/= each. I will surrender this card by end of the year to avoid the annual fee.

• CIMB Bank Petronas MasterCard: I get 2% discount every time I fill up at Petronas petrol station. On top of that, I get a 0.5% discount on all other purchases. This card is free for life and the discount is given at the end of the month. You only need to pay for the discounted amount. I will keep this card.


By year-end I will maintain only two cards; EON Visa for the insurance premium and utility bills and CIMB Petronas MasterCard for petrol and other essential expenses.

In order to really enjoy the reduction in your spending, you need to set aside an amount every month so as to make payment promptly to avoid late charges and finance charges. The other point is that you must be disciplined enough not to use the cards to spend on other non-essential items. Buy the things you need and not the things that you want.

The best credit card to keep is the CIMB Bank Petronas MasterCard. It is free for life and there are no conditions attached to it. You get an instant cash rebate and you pay only the net amount monthly.