Thursday, February 11, 2016
Tuesday, February 9, 2016
EPF 1,100 8,900
Tax 860 8,040
Kindergarten 790 7,250
Day care 430 6,820
Child Activities 200 6,620
Car instalment 650 5,970
Car Maintenance 400 5,570
Petrol 420 5,150
Parent 1,000 4,150
Insurance 1,050 3,100
House 1,300 1,800
Market/Grocery 450 1,350
Phone 210 1,140
Electricity/ water 150 990
Toll + parking 150 840
Management Fee 200 640
Office Lunch 440 200
Weekend 200 0
Below are expenses simulations of an average middle class family.
Salary husband $6000 and wife $4000, total $10,000.
DEDUCTIONS AND EXPENSES:
EPF $1,100 and Tax $870.
Two kids. Youngest kindergarten plus day care, morning until 6.45pm. Nobody take care of him after morning class. $240 is morning class and $550 is day care plus lunch plus tea time. Slightly expensive because only one centre at the location that closes at 7pm+. Sometimes office a lot of things to do and late in picking up child.
Unable to cut this expenses.
Primary day care plus tuition $430
Eldest child in primary school afternoon. Morning nobody take care, so send to day care + tuition at 7.30am, $380. Afternoon the centre will send the child to school. $50 is to cater food from school canteen, eldest child still young, easier and no need to bring pocket money. About the same expenses if buy from canteen.
Unable to cut this expenses.
Child Activities $200
$100 per child, one swimming, one badminton. See most parents also give their children learning some extra activities. Hopefully one day they will be like Lee CW or Misbun Sidek. Shall cut this expenses?
Car Instalment $650
Instalment for most common local car, Myvi, for husband. Wife 10 years old Kelisa. If finish paying Myvi, then is time for wife to change car. Not really want to change, but if too old the repair cost also will be killing the owner and not reliable. Use public transport? Need cars to rush to pick-up children. Sometimes last minute husband need to stay late, sometimes wife, so need two cars.
Car Maintenance $400
Husband every 3 to 6 months normal service in Perodua service centre, every few visits is the centre say major service. $300 to $600 per service. But sometimes change tyre, brake, absorber, brake discs skimming, and many other things plus labour cost. Sometimes the bill can be close to $1000. Average per months is $100 for service and $100 for general maintenance and repairs.
Wife normal service is cheaper but repairs are worse, sometimes engine oil leaking, oil seals, overhaul, rims, and many other things plus labour cost. Always got a lot of things to repair. Wife monthly average also same $200.
Major repairs will be at other workshops. No matter which car, when we ask “ don’t change or don’t repair can or not?”, the replies are always the same, “can, but dangerous, especially if you on highway”.
No buying of unnecessary accessories.
Husband $260, wife $160
Parents Monthly $1,000
Husband two parents and wife two, total four. Average giving about $250 per parent. Can reduce the amount?
Husband $450. Wife $350. Each child $125.
Not really can cut because husband got high blood pressure and any new insurance will have extra charges. If don’t buy full coverage now, any sickness will not be covered if detected before buying. Government hospital service is not good, example asking us to do kidney dialysis 3 times a week at private centre, and visit doctor have to wait weeks or months to book an appointment.
No education plan.
Shall cut this?
House Instalment $1300
Purchase cost $250,000 basic condo with only swimming pool. 1,000 square feet. Now also hard to get at this price.
Market and Grocery $450
About $110 per week. Market for cooking dinner Monday to Friday, fruits, grocery buying toilet paper, cooking oil, canned food, sauce, broom, detergent, kitchenware, gas, milk powder, biscuit, eggs, milk, cereal, bread, washing powder, and normally the bills from hypermarket are very long and expensive.
$75 x 2 persons = $150.
3.5 years change phone $1,260. Per month is $30. X2 = $60
Utilities Bills $150
Electricity and water bills are standard. Very seldom watch TV or use laptop. No Astro, computer and Wi-Fi. No thermos flask/microwave, 1 room aircon 25 Celsius 10pm until 3pm, living hall once a while one hour aircon if very hot, 2 water heaters lowest temperature without pump, one washing machine and fridge. Most are florescent light (long lasting) and some energy savings lights (not long lasting always spoiled).
Toll and Parking $150
Wife office parking $120 per month.
Condo management Fee $200
This is expensive. Previously was $120. Many tenants didn’t pay, and only two blocks to share the costs. Unable to do anything, unless move to a new place. Now property prices are very expenses.
Office Lunch $440
22 days X $10 per day X 2 persons. Normal cheap meal is $6 to $7. One week one or two times eat Nasi Lemak for breakfast X 2 persons. One or two times a week lunch with drinks. Sometimes colleagues say enjoy a bit, sometimes got birthdays, eat $15 to $20 and sometimes buy small cakes. Sometimes buy for tea time. Most of the extras are ‘sometimes” only. Average is $10 per day.
9 days $6 = $54
9 days $7 = $63
2 days $15 = $30
2 days $20 = $40
Total 22 days working days in a month, $187
5 days per month Nasi Lemak breakfast $8
6 days per month lunch with drink $8
4 days per month tea time $8
2 days per month drive out parking $6
$3 for GST and service tax in some restaurants.
Many activities during weekend, so eat Nasi Campur / Mixed Rice outside. Husband and wife $5 x 2 persons = $10. Kids $2.50 X 2 persons = $5. Total food per day $15. 4 persons if eat 3 bowls of noodles $7 X 3 already $21 and more than $15 budget.
4 persons, each person $2.50 for other expenses per day during weekends, total $10. This is to cover the food budget >$15 per day, pay parking, buy some drinks if finished the tumblers/bottles from house, kids sometimes want ice-cream, buy $5 of fruit, rojak, roti canai, or tart when visiting parents.
($15 + $10) X 8 weekend (days) = $200.
The above are just the fixed expenses, and excluding the followings:
No Astro and no Wi-Fi.
Parents medical expenses, they use their own money plus pocket money given to them.
Buying new clothes.
Buying expensive toys examples Lego and cartoon movie trademark toys.
Cannot afford to smoke and drink alcohol.
Cannot afford direct selling products.
Vacation, local or overseas.
Occasions, examples father mother grandparents children relatives and friends birthdays, weddings, funerals, house warming.
Buying electrical items, either new items, spoiled or upgrade.
House maintenance, eg re-painting, pipe inside wall leaking.
Festive seasons expenses.
Branded goods, eg bags, shoes, shirts, dress.
No expensive restaurant and no normal restaurant also. If eat outside, eat noodle, chicken rice or mixed rice. No ordering dishes.
No helping others, eg giving money to someone in need.
No emergency expenses.
Please like my FACEBOOK to support. Thanks
Monday, February 1, 2016
Refer to my earlier article, Newbie bought RM1,000 Barakah during his RM1,000 a month Dollar Cost Averaging on fundamental stock journey.
For second month, he bought DRBHCOM stock RM2.2X. Now DRBHICOM share price is RM1.04, lose more than 50% !!!!!
Panic? Worry? First stock lose almost 50%, second stock lose more than 50%.
As I mentioned earlier, his overall portfolio is still having gain. How? Read more as I post more.
I disagreed with DRBHCOME stock because too many businesses inside, hard to grow. Unless they do corporate excercise example general offer, special dividend, suddenly one business unit make extra profit, etc, if not then hard for the share price to move up a lot.
He has shown me the analysts reports, reasonable PE ratio, with growth, high fair value target price, most analysts recommended Buy.
I did not dispute with him, because I was thinking it was my own idea which could be wrong. If I dispute with him, he will fell that investing is so difficult, so many rules, so complicated and very subjective.
Okay, let him buy. Shall not teach him what to buy and what not to buy. I want to show that as a new student studying in college/university with zero stock market knowledge also can make money.
95% of us are not remisiers, analysts, stock market expert, accountant, etc, but we also want to make money from stock market in a very simple way.
What went wrong? Dropped more than 50%? I think it could be Proton Car in 2014, 1MDB, and 2015 Ringgit dropped a lot or market sentiment.
Sell? Research reports still recommend Buy.
By the way, just realised one of the lesson that he has learned, he asked which one is DRBHCOM stock, a lot of CA CB CC CD etc etc. I told him these are called Call Warrants.
Stay tune. Please like my FACEBOOK to support.
The information contained in this blog is my personal diary and has been prepared solely for myself. Without any previous reading material or discussion, by just reading my blog contents, reader may misunderstand the contents.
All the contents I am talking to myself and most contents are hypothetical or imaginary.
This blog has been compiled in good faith, with no intention to cause hurt, loss, or any trouble. No representation is (either express or implied) as to the completeness or accuracy of the information it contains.
This blog also is not an advice, recommendation or an invitation to buy or sell or invest in anything, eg shares, futures, derivatives, gold, etc. Consult your investment adviser before making any decisions.
The copyright of the material contained in my blog remains solely with me. You shall not copy, reproduce and / or distribute this information without my permission.