I've finished reading Azizi Ali's book for quite some time and only now i got time to share with u all some of the useful tips:
- pay yourself first : the concept is simple, allocate min 10% of your monthly income for OWN savings. But of course, the higher the better.
- debts : there are good debts and bad debts. Good debt is when you fork out a sum of money to buy fixed asset of which can generate income in future. Eg: buying a house/apartment and rent it out. Bad debts are those that only cause cash outflows out of ur pocket, like buying a car (which is depreciates in value), using credit card to purchase items and pay not within due dates, etc. So its good to make debts but do ensure the assets can generate money for you.
- mortgage payments - instead of committing yourself for monthly repayment, opt for fortnightly payments. Eg, your house monthly loan is RM900, so instead of paying RM900 every month, you pay RM450 every fortnights. You'll notice that the total monthly repayments will be the same but the total yearly repayments is different. Now you're paying 26 fortnights per year instead of 12 months per year. You're paying RM900 extra per year isnt it?
- insurance - those that are still single/bachelor, it's not wise for you to take insurance. Reason? no one is depending on your income/money should something happen to you (but personally i think if you're naming your parents as the beneficiary and they're not that rich to be able to live with their own money, you'll be considered as anak yg baik & berbudi if u have one!). Hence it would be much wiser if you put aside a portion of your money on savings with higher returns. So stop thinking that ohhh i must have an insurance when everybody is busy signing up one for themselves!
The key points above are written randomly, Azizi had actually describe every single detail in separate chapters of the book. So forgive me for not be able to write it in sequence...i just jotted down whatever points that came across now :)
ok that's all for now...will cont later.