Investing: The Basics I

I have referred to the Investment pages as per the information given on the Commonwealth Bank site, to provide a check list on the basics of investing to start my research on investing on.

There are about four categories, or asset classes. 

• Cash (e.g. money in the bank, bank bills)
• Fixed interest (e.g. government or corporate bonds)
• Property (e.g. residential, commercial or industrial property trusts)
• Shares (e.g. Australian or international shares).

These four asset classes can be separated into two broad groups – defensive investments and growth investments.

Defensive investments

Cash and fixed interest are generally classified as defensive investments. The main features of defensive investments are:

• Aim to provide regular income and do not usually grow in capital value
• Aim to experience only slight fluctuations in investment returns and values over short period.
• Returns are generally lower than those of growth investments over the medium to long term.

Knowing my personality, I personally prefer investments which provide fixed investments which provide regular income, and for starters, am pretty much risk free,
as I do not really want to be bothered with the hassle of checking the 'board" to see if prices have risen, or gone down on a weekly, much less on a daily basis. (Time is money, as they say....)

According to this list:

• Your reasons for investing
• Your performance expectations
• How long you intend to invest (investment time frame)
• Your knowledge of investment markets and past experiences
• How you feel about sudden increases and decreases in the value of your investments.

At my stage in life, my reasons for investing would include that I would be saving towards a goal- i.e. intention of marriage, house and car.
As for performance expectations, due to my low level of risk tolerance, I would rather just let there be a safe haven for my income to be 'stationed' at whilst earning compound interest.

My knowledge of investment markets and past experiences is almost close to nil. My experience with investment has so far been limited to Term Deposits, and compound interest. Safe investment, you may say.

I am, and would not be too happy about the decrease in the value of my investment, like any other person who earns a salary. Who would anyways?

As for investing in a product with a higher risk, I believe that would come with experience. For now, let me continue reading up on this issue before making a decision on what I would do with my salary...

Simple Savings- Saving away for the rainy day. ^^

Not exactly the theme of the website, but it rhymes. Anyways. 

Was googling the world-wide-web, and found this Aussie portal called  Simple Savings.

It is an Australian-New Zealand based website which offers a lot of tips, as well as an Aussie and Kiwi pdf. version of a "savings calendar". The calendar proves to be an effective visual aid in helping people keep to the habit of finding ways, as well as providing other tips and themes and ideas to develop this cost-cutting habit for twelve months of the year.

The Simple Savings website reminds buyers to learn to say ‘NO’ is very valuable to wasteful spending,
to kiddies’ demands, to telemarketers and ‘NO!’ to time wasting, and through that, individuals would be able to we can say ‘YES!’ to a happier and peaceful life.

Check it out to save for the rainy day. ^^

Curbing that urge to buy?

This evening I was at Sunway Pyramid. I had so wanted to buy this particular body care set which I had initially planned on getting.

However a number of reasons stopped from me from doing so.

1) I am waiting for the product from this particular range to clear from my blogshop.  Yes, it's one of the products from my blogshop.

2) I have yet to finish using the particular product from this set at home.

3) If its really a star product, I believe that the company will continue to restock it. (that is, if it makes money).

4) The proof is there. It's a loss and risk that I do not want to take until I am sure to be able to clear off the current stock that currently have.

I REALLY AM PROUD OF MYSELF FOR NOT GIVING INTO THIS. 

Term Deposits: Citibank Malaysia & Maybank.

Today, or rather last night, I "pledged" two Term Deposits, as what my friend in the banking industry calls it.

Term Deposits is an Australian term I picked up, but here in Malaysia, it's called Fixed Deposits. I prefer calling it Term Deposits. So, one was created at Citibank via online. The other at Maybank via online.

MAYBANK
The term deposit created via Maybank online was automatically created. So I knew for sure my money was already in the TD. However, the one at Citibank took a while...

CITIBANK MALAYSIA
I called up Citibank this afternoon, and was told by the person on the phone that if my application was successful, I'd receive an email in a matter of three days that it had been created.

Well, what's the deal with this? Why do they require us to have to go to the outlet, and show our identification cards just to create the Term Deposit?

It makes no sense when it is with the intention of keeping money in the bank and not withdrawing it? What a Total Waste of Time. Citibank should learn to communicate better with the locals and make things easier for themselves by not requiring such red tape.

Maybe I should drop their Customer Service a note to query them on this matter.

It so happened that I received a call from Citibank this evening. I didn't pick up their call as I was in a company meeting with another bank. For all I know, it could have been some person from their Credit Card department trying to sell their cards.

Well, we'll see what happens tomorrow.

17 Ways to Save Money.

Recently I read this book, The Millionaire Next Door, courtesy of one of my cousins who dropped it at my home many months ago.

Here are some ways we can live, if we want to start saving on those dollars and cents.

1. Don't bring your credit card out if you know you are a impulse buyer/shopaholic. 
I don't. It really saves me in a lot of situations where I could have made senseless purchases. A lot of show owners and managers use the line "you can pay on a monthly instalment basis" to trap you to buy. You may end up buying something you don't actually need.

The next best alternative is to bring only CASH, and a Debit Card with limited money, enough to get you through the day, travel and probably some meals. 

2. Bring your own meal from home every so often. 
It's healthy. You know what you put into it. And you won't be spending a bomb on meals.
Or just fast every so often to detoxify your body.

3. Keep from socialising with people who spend money. 
People who spend money like water! Hmm..... you just have to learn to say NO to a lot of things that your so-called friends do.

They aren't your friends if they don't care about your financial situation. However, if they offer to pay for you to join them, that is a different situation altogether.... ^^

4. Wait for SALE time to do your shopping. 
When it comes to clothing, yes. Who really cares what brand of underwear you wear to work?

You might be wearing Victoria's Secret, but were you going to go around telling people everyone? Just wear that pair of tightie-whities for all people care...

5. Impulse Buy. 
Yes, this happens a lot to me when I see skin care.. *sigh*.Walk about a bit, and wait about two to three days.

6. Take a serious look at what  you spend each month, and write out what  you have spent for it so far.

7. Start a blogshop, and get buyers.
Hah! Just did that.. am wondering how many people will actually buy from the shop. Not that good either, but hopefully trying to drum up the response to it.

8. Start an Investment Portfolio. 
Use and Invest your money on objects/items which appreciate, not depreciate in value.
Buying a Brand New Branded Car? Are you sure that is worth your money? The re-sale value of the car depreciates rather quickly, so you may want to rethink it.

If not using your money, at least keep it away somewhere you know you can't have access to it! Hopefully in a Term Deposit with a high interest returns. Perhaps some stocks or shares from a company which is doing well?

Sometimes these companies send out magazines, vouchers, etc which will offer a good deal, or savings on the services they provide.

9. Chill Out at Home and Stay AWAY from the Mall.
Get your news from the websites. But KEEP AWAY from the malls. You'll definitely not spend any money at all. LOL

Read a book. Feed the fish. Play with the dog. Take a jog. 

10. Take care of your health.
Take responsibility of taking care of your own health. When you are sick, it is a burden on others, as well as yourself. Have enough sleep, and drink enough water, and exercise at that too!

You'll cut down on the doctor's bills & meds.

11. Find ways to share, or give without having to spend money.
They say time is money. What more valuable is your time?

12. Never Ever Pay Retail. 
There is something called Internet Shopping, as well as SALEs for this very reason. If you are willing to wait it out, you will save the money that you could use for other more important things.

13. Don't Be Greedy.
I learnt it the hard way. If you don't need it, don't buy it.There is no such thing as a promotion that is too good to be true.

If it is TOO GOOD to be true, it probably IS. There is always a catch behind it. 

14. Why Buy when you can BORROW?
Sharing is Caring. Borrow it from a friend.
Want to watch a movie? Borrow it, watch it at home. You'll save on the petrol, parking and time that went with it.

But make sure you do look after it when you do. 

15. Car Pool. 
Why waste petrol each driving your own car? Though, each person must contribute to the petrol, or take turns driving to be fair to each other.

16. Take time to Shop Around.
As above, don't pay retail. There is no such thing as one fixed price. If its a huge ticket price item, its worth it.

17. Pay By Cash. 
As above (no.16), using cash actually allows you to negotiate for a discount.  Even if there was no discount, at least you can bargain for other freebies which you may have to pay out of your own pocket instead.

Related Links: 
The Simple Dollar: The Millionaire