Credit Crisis Explained!

I have long been following these wonderful flash reports by AP. Its not about the cartoon but its the simplified explainations that gives me an overview of the current credit crisis.

You will learn about:

• fannie and freddie
• World Top CEO’s pay
• Mortgage-backed securities
• yadda yadda yadda……

Take a peek here : The Associated Press Multimedia Reports

This one is titled Credit Crises Explained.

Enjoy.

Oil Price fell 55% from Peak!!! :o

Excerpt – The price of crude oil has tumbled 55 percent from its peak of $147.27 reached in mid-July.  The Star

Pump prices was at RM1.92 when crude oil was trading around US70 – US90 per barrel. It shot up to RM2.55 when world oil price hit record high at US147.27 in mid-July.

Now that the oil price hit another record ‘low’ at US67 per barrel, I have the reason to hope for a drop of atleast 20% at the pump.

What shapes you?

Often we hear You are what you eat!

What about You are what you do!

What if I say You are what what you think!

Here is an interesting article published in thinkArete.com titled Attitude.

excerpts

“Your mind will be like its habitual thoughts;

for the soul becomes dyed with the color of its thoughts.

Soak it then in such trains of thoughts as, for example:

Where life is possible at all, a right life is possible.”

~ Marcus Aurelius, 2nd century Roman emperor-(stoic) philosopher

It all begins with accountability. Unless you’re willing to take absolute responsibility for your life, there is no hope.

Seriously.

Lesson: Quit being a victim. Be a Creator.

So what do you think now? Are you willing to own your thoughts and shape yourself? Have a nice day.

Financial Landscape – Out of Balance (AIG)

A very disturbing fact I come across as reported at AP here What went wrong. Are you a concerned customer?

Hopefully the US85 billion bailout package will pull them through this horrible chapter.

Thank you for the 10cents reduction.

10 cents…lets see, its RM4 for a full tank (40L) and this is supposed to be an ‘Ease the burden’ package. Great Job Mr. BN!

For the record, the petrol pump prices went down 25 cents on 23rd August 08 after a tremendous spike on 5th June the same year from RM1.92 to RM2.70 per litre of RON 72.

Hmmmm…..

Ways To Slash Tax

It is this time of the year again. Looking through the piles of receipts and bills to search for anything that can help you reduce your tax amount. Gathering all your income statements to make sure you do not wrongly declared. So pious, so to speak.

So do you know what is your Income Tax relief and rebates like? For a start, you can always click HERE for the full details. Then there is the TAX REBATE for extras. The dateline is 30th April 2008 for employees and 30th June 2008 for individuals with business. Full details HERE.

Simplesteps:

1. Separate tax return for both spouses.
2. Get ready your insurance statements. (Life/Education/Medical/Annuities)
3. Subscription receipts for magazine or books.
4. SOHO expenses (e.g. rental, utilities etc)
5. Computer hardware & software purchases receipts.
6. 26-ways-to-slash-taxes

Some of the ways quoted guarantees to work. So do your duty as a citizen. Happy taxing.

Quick! Act now. 6% interest rate.

Want to learn how to convert your credit card debts to a lower interest rate plan?

1. NO documents required.
2. NO processing fees.
3. NO transfer of banks or accounts.
4. NO hassle.
5. QUICK approval.
6. REFRESH your credit statements.
7. LOWER your monthly payments.
8. For all EXISTING active credit cards.

Call me for a free consultation. My office is at Sri Petaling, Kuala Lumpur.

You are paying 18% interest rate!

It is quite horrific to learn that many consumers I come across does not exactly know how much they are paying for their purchases on credit each time they swipe their card. Is it pure IGNORANT or MIS-INFORMED? Either way, you are screwed.

In comparison:
Housing Loan – 8%
Car Loan – 5%
Personal Loan – 8% to 15%
Ah Loan – 25%+++++

YES! 18% per year on your outstanding balance or more accurately 1.5% per month for any outstanding balance plus (+) late payment charges. That is somewhere in-between of personal loan and Ah Loan.

Example:
You buy a brand new LCD display for RM3000 and some groceries at RM400. So at the end of that month, you card is credited RM3400. You are supposed to pay RM3400. But the financial system allows you to pay a minimum of 5% of that amount of RM50 whichever is higher. The temptation for most people is that they will pay the minimum. Let us say, RM3400 x 5% = RM170. So your starting balance is RM3400 – RM170 = RM3230. On the following month, you swipe another RM250 for groceries. And at the end of the month, you closing balance is RM3230 x 1.5% + RM250 = RM3481.00. The difference between the first month and second month is the balance got higher despite you paying promptly. In no time, you would have gotten into a lot of card debts and it is quite hard to get out of it.

e.g.
RM3000
+RM 400
=RM3400
- 5%
=RM3230
+ 1.5%
+RM 250
=RM3481

Many other would easily make out this math and know their self-discipline. But the discounted their bad month when some emergency occurs and the consistent lure of pure lust of lifestyle upgrading.

Simplesteps.

The only way to get out of it is to:
1) Buy what you can afford.
2) Pay all that you have spend in that month. If you know you cant pay, then don’t spend.
3) Keep your card at home in a safe place.
4) Restructure your card debt to lower interest rate. (Contact me)
5) Pay on time. Avoid incurring late payment charges.
6) Plan your finances.
7) Increase your income.

Now, it is your call.

Simple Man, Gigantic Dream = S350L

To my friend and mentor, to have a dream is like to breath. When we breath, the oxygen will carry the blood cells to every departments of our body so that each and every organ will respond to its master. The next thing he makes me remember is that a dream remains only a dream if we don’t take the necessary actions to achieve it.

My friend (at 33) is also a perfect example of a successful entrepreneur who rose from rags to riches. Almost seeing it all after finishing high-school he explained to me that in life, everyone will go their own path and each path has its own test of wits. The thing is never let your emotions get to you. It is very hard he says, to control your emotions when the going gets tough but at the end of the day the winner is always the one that can handle their emotions perfectly.

Having a dream is not just as simple as setting it but living by it. It involves going through the hardship of planning, execution, and re-alignment. Go through all the details of your plan, learn it by hard, know it at your finger tips. I can attest that many successful man shares the same thoughts too. Another great story which I will be writing soon is Mr. Li Ka Shing (Worlds Top 11riches).

To go through every details in the process is knowing how much you want it realized. Every thing has a starting point. Every big thing is made out of small actions. To summed up what he is trying to convey I have put it in these words:

“Take the first step of your journey now and you will reach your destination sooner.”

Set your dreams today. What is stopping you? A dream can be small or can be big. There is no limitation to it. According to the secrets which i have seen it so many times, and practicing it I tend to believe that setting a dream is important.

I will continue my friend’s story from time to time as I continue to seek the essence of his success.

Staying Alert is Staying Alive

I recently come across an article in a local mainstream media with this BIG title. Staying Alert is Staying Alive. Like the words are trying to describe itself although that article was meant for self defense against street criminals…but is that less applicable to other things in life?

Staying alert on your:

• Income
• Expenses & Purchases
• Savings & Investment
• Financial freedom plan

Nothing much to describe actually because it sounds pretty straight forward. You do the imagination.