How to Maximize Grocery Spending with Your Credit Card

I have a Hong Leong Bank Platinum Visa Card and I treat it as my grocery credit card. I also have The Store Card. It is a membership card. I use both cards to maximize my grocery spending.

This is my tactics:

·         Location: I choose The Store for grocery shopping because it is next to my place of work. I don’t have to spend time and petrol driving to another place to do shopping. The Store is owned by The Store (Malaysia) Sdn. Bhd, a public listed company in Malaysia.

·         Purchases: Each time I shop for grocery I charge it to my Platinum card and I also present The Store Card to collect points at RM1/= per point.

·         Credit card reward points: For each ringgit, I charge to my credit card, I get one point. Over time I can redeem my accumulated points for useful items.

·         The store Card: As a member, I am covered with RM10,000 personal accident insurance. I also enjoy special discounts for many items from time to time. Their point system works the same as the credit card.  You can earn and keep the points and exchange them for grocery items later. However, I opt for their gift vouchers like the one shown here. I prefer to use the vouchers to buy apparel. The card carries an annual fee of RM12/=. My annual spending at the store is much more than enough to offset the fee.

You can also apply for The Store /Pacific Hong Leong Bank MasterCard. You will earn up to 6% cashback when you spend at The Store/Pacific and 0.5% cashback on other retail transactions. You will receive your cash rebate in the form of The Store and Pacific's Gift Vouchers via the Credit Card statement every quarterly.

   I use my credit card to shop for what I need only. I pay the amount as stated in the monthly statement fully and promptly. In this way, I don’t incur extra credit charge charges. If I need to spend on a big-ticket item I    arrange for an interest-free installment plan for 12 or 24 months with the card issuer.    

   How do you maximize or reduce your grocery spending? 

5 Ways to Avoid Money Stress

In times of great stress or adversity, it's always best to keep busy, to plow your anger and your energy into something positive. ~ Lee Iacocca

1.       No financial planning:  You always find yourself running short of money when you do not have a budget and not spending within your means. You have to use your credit cards, get a personal loan, or dip into your savings account or your emergency fund.  It is stressful that you can’t find the money when you need it the most.

Solution: A personal monthly budget is necessary to live within your means. You just can’t go on spending money as you wish because overspending is leading to debt and bankruptcy if a debt is out of control. Plan your spending wisely and challenge yourself to stick to it. The aim is not to overspend and avoid drowning in debt.  

2.       Cannot cope financially: The rising cost of living is eroding your purchasing power and you can’t stretch your every dollar any further. It is stressful when your meager income just can’t cope with the situation.  Being prudent in spending does not seem to work things out.  

Solution:  Getting extra income by doing online business at home or working part-time is what you can do to manage your finance. When your own business is successful you can even do full-time and solve your financial woes once and for all.

3.       In debt: It is stressful when people are knocking on your door and asking for money. You have outstanding grocery bills and other sundry bills. You miss your HP installments and the interest on your credit cards is snowballing.

Solution: When you are in debt, the most important thing is to get out of it. It requires a lot of self-discipline and will-power. The longer you delay the more interest you will have to pay. Be determined to be debt-free.    

4.       Stuck in a rut: Your job is boring and your present position is getting you nowhere. Your salary is also stagnant. Working life is stressful in such a situation.  

Solution: The key is to make changes. Take a bold step and look for something you enjoy doing and go for it. Do not expect a thing to get better when you are doing the same thing day in and day out.  The other important thing is to acquire more marketable skills. You add value to what you can do and increase your earning power.

5.       Financial worries: Worrying too much about your financial future is really stressful. You are thinking about the foreclosure of your home and the repossession of your car. You also worry about the security of your job because the economy is gloomy.

Solution: What can you do about the future? It comes only one day at a time. The best thing in life is to do the best you can now with what you have. Get busy, do the right things, and hope for the best.  

A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life. ~ Suze Orman 

Source: 5 Ways to Avoids Money Stress

The Best Movie Credit Card in the World

I have already had two cards in my possession, CIMB Petronas MasterCard and Hong Leong Bank Platinum Visa Card, but I just can’t help to get one more card, the Hong Leong Bank Golden Screen Cinemas Visa Card.

I enjoy movies because in a cinema hall I get uninterrupted entertainment for two hours to unwind and relax. This particular card complements my lifestyle. 

 

What’s so good about the card?

Upon approval of your application you get:

1 x Complimentary Movie Ticket

1 x Small Popcorn Combo Set

1 x 50% Discount Voucher on Food & Beverage Purchases at GSC's Outlets

5 x Buy-1 Free-1 International Screens Movie Tickets

You also enjoy up to 10% discount on normal ticket purchases when you use your GSC-Hong Leong Credit Card at all GSC Outlets. Here's how:-

Cost Per Ticket	Discount Entitlement
Below RM 10	RM 0.50 per ticket
RM10 and above	RM 1 per ticket
RM 20 and above	RM 2 per ticket
RM 40 and above	RM 4 per ticket
RM 50 and above	RM 5 per ticket
RM 60 and above	RM 6 per ticket

 Incredible Bonus Value Privileges

As a new GSC- Hong Leong Principal Credit Cardholder, Platinum Cardholders will be entitled to RM100, and Gold Cardholders will be entitled to RM60 worth of Bonus Value. You can use this Bonus Value to pay off up to 50% of your ticket purchase. Below is an illustration of a Platinum Cardholder with a Bonus Value of RM100:-

(BV=Bonus Value, Trans=Transaction, B/F=Brought Forward, Amt=Amount, C/F=Carried Forward, Bal=Balance, Disc=Discount)

Priority Ticketing Lane

With your GSC- Hong Leong Credit Card, you can purchase your GSC movie tickets faster and hassle-free through our Priority Ticketing Lane.

However, I don’t have to go to the cinema to purchase tickets; I can stay at home and do the same. Not only that, I normally buy tickets online on a Thursday to watch a movie either on Thursday, Friday or Saturday because I get one ticket free on top of the discount mentioned above. I usually invite my friend for a night out. This is really buying happiness and giving happiness to others.    

You can take further advantage by joining GSC as a member because, during your birthday month, you will get two free movie tickets and 20% off your meal at their Glitters Café.

The card is free for life when you spend at least 12 times on your GSC- Hong Leong Gold or Platinum Card in a year.

Is there a better movie credit card?

5 Tips to Get Your Mortgage

Mortgage

Financial institutions may be more stringent and thorough in vetting your housing loan application; you still can get your application considered favorably. Here are the things you can do:

1.       Debt to Income Ratio: According to Wikipedia, a debt-to-income ratio (often abbreviated DTI) is the percentage of a consumer's monthly gross income that goes toward paying debts. The bank may still approve your loan even your debt ratio is above 30%, it is prudent to maintain it at 30% and below. It means for every $100 of your income only $30 or less should go to paying your debt (such as personal loan, car loan, and housing loan).

2.       CreditWorthiness: Are you paying your credit card bills in a timely fashion. If you don’t your credit rating will be impacted negatively. It implies that you are not able to manage your personal finance and honor your financial commitments. In Malaysia, you can get a copy of your report from the Central Credit Reference Information system once a year. It is a record of all your loans and payment pattern. When you default in payments, it is reflected in the data. A bad record will get your application rejected even if you meet other requirements  

3.       Save for a bigger down payment: One effective way to get a loan is to apply for a smaller amount. You need to save for a bigger initial payment. You borrow less, incur less interest, and get shorter loan tenure.

4.       A permanent job with a permanent address: It is an important factor that you are able to hold down a job and not moving about without a full-time career and a fixed place to live. It tells others that you may not have a regular income to service your loan.

5.       Budget: Have you factored in the amount you need to pay the bank every month and other debts you need to service? Your monthly budget should be within your income or else you are going to incur new debt. You will be in a danger zone when you need to borrow more to cover your monthly expenditures. Be wise and be comfortable living within your means to avoid a financial crisis.  

A housing loan is a good debt because landed properties appreciate in value over time. Wisely review your financial situation before you sign on the dotted line for a mortgage.

Source: 5 Tips to Get Your Mortgage

10 Tips to Avoid Financial Crisis

Caution is the keyword in personal finance. The world is full of temptation to lure you to spend and spend to get what you want in life. Can you discipline yourself to control your spending? Here are the vital points


1. Loan: The moment you are in debt you are in dangerous water. One wrong move you will enter into a crisis situation. The most important thing is to factor in the loan amount into your monthly budget. If your budget cannot accommodate the extra amount, do not go for the loan. 

2. Loan shark: If you must borrow, keep the loan sharks at arm’s length. They will charge you an exorbitant interest rate and they will resort to unethical means to recover the loan plus interest from you when you are unable to meet their repayment schedule

3. Terms and conditions: Shop around for a loan, go for one which has the best terms and conditions in your favor. 

4. Settle credit card bills promptly and fully every month: This is to avoid high-interest charges on the outstanding amount and late charges. When you opt for the minimum amount to pay you are building up debt to a point that is beyond your means to settle. It finally leads to bankruptcy. The other thing is to build a flawless credit record so that in the future when you do need a loan you can get better terms.

5. Emergency fund: It is prudent to keep three to six months of an emergency fund to meet the usual payments and expenses just in case you are out of work.

6. Spend wisely on needs but not wants: Curb the urge to buy what you want, learn to be happy with what you have. The less you spend the more money you will have for your retirement and the more likely for you to enjoy your financial freedom in your golden years.

7. Budget and follow the budget: The moment you spend more than what you have earned you are in debt. The worst thing is that getting into debt is easy but getting out of it is the most difficult thing to do. Spend less than your income is the only way to sleep soundly at night.

8. Avoid gambling: Don’t be greedy. There is no way to make money out of gambling or else gambling outlets will be out of business. 

9. Distinguish between good debt and bad debt: You can borrow to further your education or when it is a solid investment like the purchase of a property in a prime location. Don’t do it when there is no return on the amount borrowed.

10. 开源节流（kai yuan jie liu）: This is a Chinese proverb. It literary means to open up more income streams and reduce outflows. It sums up the golden rule of personal financial management.


When you are debt-free you are the happiest person in the world.

Source: 10 Tips to Avoid Financial Crisis

7 Effective Money Tips for Young Workers

       

Ac According to the latest survey of Financial Behaviors and Financial Habits of Young Workers by The Consumer Research and Resource Centre, 47% of the young adults were seriously in debt because their monthly debt payments were 30% or more of their gross income. 37% lived beyond their means and 15% were without savings. Most of them were lacking in financial knowledge. On a score of 1 to 6 (1 – strong financial knowledge and 6 having no financial knowledge), 43% scored 4 and above. That is why they felt that they had poor financial knowledge.

You can take the following steps to put your personal finance in order:

1.      Review your financial situation: Take stock of your financial situation. Find out your take-home income, outstanding debt from various sources (mortgage, car, personal, and student loan), and your present spending pattern. You need to think of and do several things at the same time: clear your debts as soon as possible, earn more, spend within your means, and cut unnecessary expenses.

2.      Getting out of debt: Your first priority is to get rid of outstanding debt especially those with high-interest rates such as credit card debts. It is to avoid incurring and paying more interest.  You are also trying to keep your debt manageable so that you can avoid getting into bankruptcy.

3.      Budget: At this point after you have budgeted for your basic needs in a thrifty way, you have to allocate a substantial amount of your income to reduce and eventually clear your debt.  Avoid impulse spending and forget about all your wants. Be disciplined to follow your budget and learn to appreciate what you have. The objective of your budget is to get rid of credit card debts and to avoid getting into arrears for all the other installment payments.  

4.      Emergency fund: It is mentioned in the survey that if they stopped working, the consumer had enough savings on an average for only 4 months. As soon as you are out of debt, you have to set aside an amount every month for a rainy day. It is also to develop a habit of savings. The creation of wealth starts from savings and nothing else.

5.      Credit cards: Can you handle credit cards? If you can’t, cancel all your cards and avoid making purchases on credit and get into debt and incur interest. Credit cards are for convenience only and you must make payment in full when it is due.  

6.      Earn more: Sustaining your positive working attitude, acquiring additional skills and working smart are positive ways to add value and justify more pay. Do your homework, approach your boss at the right time and ask for it. You can also take up a part-time job relating to your expertise. As a young and energetic person, you will spend more time making extra money and avoid spending money with too much leisure time.

7.      Financial education: Learn to be money savvy. Get books, go online, attend personal finance courses, or get free counseling from Credit Counseling and Debt Management Agency.  You will learn about needs and wants, income and expenses, budget and savings, interest and debt, insurance and mortgage, investment and retirement, wills and estate management, and more.

Get into good personal financial shape and enjoy financial freedom. 

Source: 7 Effective Money Tips for Young Workers

Getting Effective Personal Financial Education

An investment in knowledge always pays the best interest.

Benjamin Franklin

According to Wikipedia, financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances.

It implies that you have to get financial education by studying financial information, understand it, do it, and obtain valuable experience. You are likely to make financial mistakes along the way but you will be wiser.  

There are three stages in life to learn about relevant financial issues: 

At home:

Financial education starts at home for the kids.

Savings: It is the best time to educate your child about savings and how your money grows with compound interest.  It is also a good thing to talk about the simple rule of 72 (the time needed to double your money with a fixed annual interest rate. At 6% you will double your money in 12 years - 72/6) in relation to savings. Take the opportunity to talk about save-and-buy-later for a big-ticket item when he or she is about to buy an expensive item like a laptop or an electronic dictionary. To save and buy later is a concept on the effective use of money and avoid paying more on interest and getting into debt.        

In school:

In secondary school:

Education loan: When your child is about to enter college, polytechnic, or university, it is also a good time to talk about student loans.  Getting a loan to pursue tertiary education is not the best option. Think about it, before you get a job you are already in debt and there will be more debt to incur like car loans and mortgage. It is good to obtain a degree but there is no assurance that you will get a decent job of your choice or a job at all upon graduation.  

Higher education:

Debit cards: It is good for you to have a debit card to gain knowledge and valuable experience of using plastic cards. The card is tied to your saving accounts and each time when the card is used the amount is deducted accordingly from the account. There is no way to spend more than what you have in your savings account.     

As a young adult:

Needs and wants: Landing on your first job after graduation is a great achievement. Getting your first paycheck is a delightful thing and you are thinking of buying so many things. So it is time to learn about wants and needs, budget and living within your means. Needs are essential and wants are optional and you can go without.  A budget is a way to control spending so that it is less than what you have earned and there is still money left over every month to save for a rainy day.   

Good debt and bad debt: It is also important to learn about good debt and bad debt. Getting into debt to buy what you want is bad but getting a mortgage to buy your first house is OK because a house appreciates in value over time.  Getting a car loan is bad but how many of you can buy a car in cash? A car depreciates greatly in the first two years.  The outstanding loan may be more than the value of your car. 

Credit cards: You will also acquire your first credit card.  It is crucial to know the danger of bankruptcy relating to young people and credit cards. The wise use of credit cards is about applying the knowledge of wants and needs, following your budget faithfully, and paying the outstanding amount fully and promptly. The most important thing about credit card usage is for convenience and not to obtain credit and get into unmanageable debt. 

Creditworthiness: Smart use of your credit cards is an excellent way to establish your creditworthiness. The key is paying the amount in full when you receive the monthly statement from the card issuer. It tells the financial institution that you are a financially responsible person. You are in good financial standing to grant credit because you pay promptly. 

Net worth, assets and liabilities: Next you will learn more about your net worth, assets, and liabilities. Your net worth is what you own less what you owe.  Let’s look at an example and simplify the issue for education purposes. One of your valuable assets is your house. It is worth, say 200,000. Does it mean that you own an asset with a value of $200,000? No, because you have taken a mortgage and you still owe the bank say, $100,000 (which is a liability) and if you sell the property you only get 100,000 after paying the bank off. So your net worth for your house is only $100,000. 

Emergency fund: It is important to incorporate an amount for savings into your budget because if you are thinking of saving what is left, there will be nothing left.  One important thing about life is to save for major unexpected expenses such as car repairs, medical bills, and the like. That is why it is called an emergency fund. 

Car loan, mortgage, marriage, and family: It is also timely to plan for the down-payment for your first car and your home. Think also about the money you need to get married and start a family of your own.  

Insurance: The subject of insurance is vital for financial education. Learn to leverage insurance to reduce the impact of personal disability due to sickness and accident. You also need to cover perils such as fire, flood, and theft against damages done to your property.      

Tax: Tax is one thing you cannot ignore. Learn to take advantage of tax deductions to reduce your tax liability.   

Investment: How do you get money for investment? It is from your savings accumulated over time. You have to learn the different vehicles to invest such as stocks and shares, unit trusts, bonds, gold, and property.

   

Retirement and children’s education: You invest with a major purpose. It is for your retirement when you are no longer working and there is no regular income. It is also essential to grow your wealth to meet your children’s education needs. It is always prudent to start early to save and invest for your future because a smaller amount is needed to get started.    

Wills: The last thing to know is the creation of wills to distribute your wealth according to your wishes in a hassle-free way when you are no longer around.

Financial education is a lifelong learning process. The most important thing is to avoid gambling and get rich quick schemes. The ultimate aim of personal finance is financial freedom.

Source: Getting Effective Personal Financial Education