It's official today for EPF members; 8% only.

January 2009... Members of the Employees Provident Fund (EPF) will have their employees’ monthly statutory contribution rate by three per cent, from 11 per cent to 8 per cent, effective from January 2009 wage for a period of two years. I wish the members are fully aware of the risk(s) and benefit(s) that they are facing/enjoying.

Having extra income today from tomorrow's fund. It's a choice; choose smart.

10 MUST DO when using credit card(s)

Once you got your credit card, please don't use it. That's what my wife said. Hehe... But keeping a credit card as collectible does not make sense, isn't it. Credit cards give your convinience in purchasing, credit (*of course) and track your cash flow. You charge the card now, pay later. Ask yourself, are you a responsible owner of credit card(s)?

Manage your card(S) wisely:-
1. Don't use your card when your pocket is empty. Most credit cards have at most 21 days of 'free' charge period. You are required to pay on what you spent once the period exceeded. Otherwise, you'll be charged with interest.
2. Be loyal to one (Jangan kahwin empat) card. If you already have more, set a monthly limit. Discipline yourself from using your card freely. Chop down yours if thing start to go out of control.
3. Always check, keep and review your reciepts. It must balance with your monthly statement. If you found anything mismatch, report immediately to your issuing bank. There are fat chances that you are wrongly charge or card fraud.
4. See your plastic money as if they are Ringgit or Dollar. Every cents that you spent, can be doubled under the Rule of 72.
5. Keep paying your credit. For best result, pay in full. Though you are paying the monthly minimum payment, you are still charge with the balance. If you can't keep up, just remember statement #1.
6. Pay ahead of time. You are also charged on late payment. Use autodebit/standing instruction/online transaction to your advantage.
7. Protect your card from fraud. Share none, read more on safe online transaction and destroy the card upon expiry. Don't forget to sign at the back of your card.
8. Consider balance transfer only and if only you'll get a better interest rate bargain rather than soft toy or small fridge (which are cute but has no use at all).
9. Get advice, help and sifu. If still in doubt, refer malaysian government agency - AKPK.
10. Keep updated. Put effort to read for new market offer, new regulation etc about credit card to improve your knowledge and decision making.

Source: Vipin Agrawal (Personal Money MAY 2008), CAP website, AKPK website, banking info.

- cmt -

Investing in GOLD

According to Mark Walters (proarticles.net; 2007-08-18), gold has not been touched by inflation over the last sixty years. The same amount of gold that purchased one gallon of gas in 1940 will buy 1 gallon of gas today.

Why is that so? Because gold and other precious metals such as platinum, silver etc are becoming scarce. As the demand for gold - jewelery, industries keep building up, the supply is limited.

Investing in gold is a safe hedge against inflation. We can earn a potentially higher return from gold price appreciation. A few minutes ago, despite of the recent petrol price hike, the price of gold had gone up by RM 0.04 per gram.

In Malaysia, you can do so at Public Bank (Public Bank Gold Saving Account) and Maybank (Gold Saving Passbook). Be sure to check for affordable initial purchase and subsequent investment, small difference buying/selling price and ease of redemption.

The key is to educate yourself before going into deep. As an alternative, you can also invest in unit trust which focus on precious metal e.g Am Precious Metals Fund.

- cmt -