[In response to Fathiah [the new bride :)] and visitor's question]
Assume that our salary is RM2000.
Gross salary is RM2000. So our saving should be, RM2000*30% = RM600 [no no, you cannot calculate this based on salary after deduction, but tahe gross salary figure].
RM 600 should be channeled to other banking institutions that is far [the farther, the better] and you cannot withdraw the money inside the account. As for me, I put my savings in Tabung Haji since there is no ATM machine linked to Tabung Haji and it is situated not within my usual spots.. heheheh.
Better still, if you feel that you cannot save that much money, you can do auto debit - I prefer this, it would be hassle free and much better.
The savings does not include KWSP at all. KWSP is also another type of saving, but it's much better if you can save the whole 30% to another banking institution due to the fact that it gives much higher return.
The balance after all the deductions can be used for your monthly expenses.
And yes, about the housing loan.. better take the housing loan on shorter term rather than longer one. You might be surprised to see higher interest incurred in the longer term even though you pay less for monthly installment compared to shorter term.
the 3-letter word
3 days ago