The Right Mindset

When I was in my first trimester pregnancy with my first born, on the initial check up at the government clinic, I was asked by a nurse: 'Do you plan to breastfeed? If yes, niatkan (say you wish - not necessarily to voice it). Through my experience, those who did niat during their first few months are very likely to succeed compared to those who are not or those who do so at later stage.'

Creating a mindset that I could do it.

One of my favourite reality shows are the battle faced to loose weight. The participants will be guided to lead a healthier lifestyle to ensure their success even after the show is over. There are also show to revisit the participant few years after the program.

Another reality shows are home make over or clean house make over. The participant house will be redesigned or cleaned. Similar to the weight loose program, the sequel program will visit the participant house few years later to see the latest development.

In those reality programs, the battle to loose weight was won but to maintain it is another battle that plenty of the participants did not achieve. The home make over or clean home show also captured living areas which was not as what it was after the success to turn it to the pleasing condition.

These shows that you could lead the horse to the water but you can't make it to drink the water. Even with the right guidance from those with great influence, it is not the ultimate condition for one to excel. 

A person has to be in the mindset to want to change and to want to succeed.

Being able to have a right financial mind is still a battle to me. I am still praying I would eventually make a right decision with my hard earn money and the right decision becomes second nature. I could do it with minimal advertisement influence, without any distraction from my young ones and make it a habit as something di bawah minda sedar (unconsciously making the decision as it has become a habit).

Brewing the right mindset is part of a journey toward a better financial shape. I still need those financial books to act as motivators.

PTPTN summary

It has been approximately a year since I managed to paid off my student loan debt through the 20% rebate program with full settlement. Upon the final payment, I was told that the finalized amount will be issued within six months after that date.

I would check the online statement from time to time to remind myself that it is possible to finally be able to settle the debt. It act as a form of motivation for me in black and white.

Unfortunately, the statement shows there is amount due to me amounting to RM 76.55. It is a small amount, not an issue. However it is disappointing when they go all out to chase outstanding payment due to them but keep silence when they are doing it. A friend of mine faced the same issue and now its my turn to faced the music.

I finally went to the OSC to inquire on this in August, long after the six months period of finalization. I filled in a form and provided my bank account number to have the balance transferred to my bank account. A very straight forward and simple process. They must have encountered this issue numerous times. The lady at the counter handle my questions with breeze. 

Me: What will happened to the balance if I do not request for it? 

The lady: It will remain there. 

Well, thankfully they do not have any grace period for refund. Probably it is not so bad after all. They are quiet lenient compared to financing institution when dealing with those in default. Unless you want to count the days lost when you could have used the balance to finance other debt.

I was told that the amount will be transferred to my account within 21 days. However, it took less than that duration for them. It was merely about 2 weeks. Kudos.

Alhamdulillah.

KWSP / EPF

Kumpulan Wang Simpanan Pekerja (KWSP) or the Employee Proficent Fund (EPF) is a body which governs the Malaysian employee.

Under this fund, the employees and their employers are required to contribute to the account. The fund will be used for investment and the gained profit will be distributed among its contributors. This retirement account may be withdrawn when its account holder reached 55 years old.

I personally have used this account to register my hajj and purchasing my first property. My lack of saving forced me to use this alternative route to apply for pilgrimage. Registration with Tabung Haji to perform pilgrimage requires RM 1,300 balance in ones account while using this method, a KWSP statement to show balance in the contributors account will be sufficient.

Further, KWSP provides others opportunity for its contributors such as withdrawal to pursue higher education.

This account will sure provide a peace of mind to certain level as it provides income when an employee retires. However research shows that up to 70% of contributors will need other resource of income when they retired as this fund will not be sufficient for them to lead a cushion life upon retiring.

Will I be among the 30% when I finally retired in 25 - 30 years?

Zakat Fitrah

Eid Mubarak

Berlalu la sudah Ramadhan,

Sebulan berpuasa,

Tiba Syawal kita raikan,

Dengan Rasa Gembira.

Today is the first of Syawal. Today, the third baby turns 45 days.

I did not make any preparation. No new clothes except for the boys as they can no longer fit their baju Melayu. No baking, if any would be done may be later of the month. Did I even get pahala bonus during the lailatul qadar? I only have heavy heart living the holy month of Ramadhan and I pray I will be given the opportunity to perform better in next Ramadhan if there is next Ramadhan for me.

Truthfully, this year's celebration is not much of a celebration with the war going at Palestine and the brought down of MH17, both happened in the holy month of Ramadhan. Not to forget the earlier incident of MH 370, the never ending kidnappings at East Coast Sabah and many shrinking 'tongkang' departing the peninsular to neighboring country (ironically for celebration of the month of Ramadhan and Syawal).

The holy month of Ramadhan marks the performing of third pillar in Islam which is fasting and followed by performing Zakat Fitrah.

Definition of Zakat Fitrah:

Religious tax/alms/zakat paid on the day when Muslims break the fasting period at the end of the month of Ramadhan. This alms is known as Zakat al-Fitrah

(islamicnet.com)

Zakat dari segi syarak pula ialah mengeluarkan sebahagian harta tertentu diberikan kepada asnaf-asnaf yang berhak menerimanya setelah memenuhi syarat-syarat yang ditetapkan oleh syarak apabila terbenam matahari akhir Ramadhan sehingga terbit matahari esoknya.

 Syarak defines Zakat as giving part of certain wealth to asnaf who are qualified upon fulfilling Syarak conditions when the sun set at the eve of end Ramaadhan untill the rise of sun on the following day.

(Lembaga Zakat Selangor)

Zakat dari segi istilah fiqh bererti "Sejumlah harta tertentu yang diwajibkan Allah diserahkan kepada orang-orang berhak"

Zakat fitrah itu wajib dengan sebab lebaran pada bulan Ramadhan

 Fiqh defines Zakat as "An obligatory act (wajib) to give a part of certain wealth to the deserving"

Zakat fitrah is obligatory because eid at the end of Ramadhan

(Hukum Zakat, Dr. Yusuf Qardawi)

There are twenty seven verses in the Quran paired second pillar in Islam, perform five daily prayers with Zakat:

                                    

Waakimusolaata Waatuzzakaat

And perform As-solat and give zakat

Dan dirikan solat, dan tunaikan zakat

Giving zakat, the fourth pillar of Islam. The act of giving in the name of Allah is like a seed which grows seven spikes, in each spike is a hundred grains (2:261). It is a fact that the act of giving will make one becomes wealthier.

OPR, BLR and BFR

On the 17th July 2014, the Bank Negara of Malaysia (BNM) has finally made a move to revised the overnight policy rate (OPR), hence changing the  base lending rate (BLR) to 6.85% from 6.6%. The last revision was made in 2012. The BLR changes made by the BNM for the past 25 years could be refer to the graph below BLR (1989 - 2014) by BNM.

 

As shown in the graph, the rates was highest at 10.50% in 1998 due to recession (it actually peaked at 12.27%). There are some years where changes are made up to 3 times a year, however the graph reflect only the percentage that was used most for the year.

The changes of OPR caused uncertainty to the final lent amount. In the event of base financing rate (BFR) i.e. Islamic financing, the final amount will not exceed the final agreed amount financed. The BFR will definitely change upon any amendment to the OPR, however the uncertainty of final amount to be paid is not an issue.

Lost and Found

My previous post on books is based on borrowed books from the library which I belong to for the past one decade. During those period I did not encounter any problem with the library. However things took turn when I failed to return a book. I have lost it. Since I never sees it, I didn't take any action to rectify the matter.

I did consider to purchase another as replacement but I never get around to actually buy one. The most disappointing part is, I didn't get a chance to read it before its disappearance. Sadly, I have not been to the library since then. I no longer have access to the books that are on my 'to read list'.

When hubby and myself rearrange the furniture before the arrival of our bundle of joy, we found the book sandwiched between the bed mattress and its bottom frame. I read books before going to sleep, but how it managed to sneak underneath? Still remains a mystery to me.

Till today, I still have the book. I have finished reading it but the book is yet to be returned. I called the library to inquire on the possibility of purchasing the book instead of return it to the library. I was told that I still need to pay the fines (20
¢ /day) on top of the book price.

If I took the inisiative to call the library the moment I feels that it would be sometime before I found the book, I could have purchase it from the library instead of paying the fines. Now instead of having a book I still have to pay the fines.

If I were to reflect on those one decade or more, I would say I have got my money back as this is the first occurance ever. All the books I managed to read during those years should be able to cover the fines which I estimated at about less than RM 30.00. The book retail value is at RM 39.90.

If it were a book that I bought, I would not mind having it disappear before having it resurface few years later.

Well, it kind of making me value books more in future if there is any lesson I learnt from all of this.

10 Financial Books in 2013

1. Wang Anda dan Islam - Ustaz Zaharuddin

2. Smart Women Finish Rich - David Bach

3. Fight for Your Money - David Bach

4. Your Money or Your Life - Vicki Robin and Joe Dominguez

5. Teaching Your Kids About Money - K.C. Lau and Amy Sepagal

6. Cukup Wang Hati Tenang untuk Semua - Hajah Rohani Datuk Haji Mohd Shahir

7. Langsaikan Pinjaman Perumahan Anda dalam Tempoh 5 Tahun atau Kurang - Azizi Ali

8. Nice Girls Don't Get Rich: 75 Avoidable Mistakes Women Make with Money- Lois P. Frankel

9. The Savvy Woman's Guid to Financial Freedom- Susan Hayes

I thought I read 10 publications, it was only 9 books.

The selection of reading materials is based on this:
1. Islamic finance - personal not economic point of view
2. Based on my frequent visit to www.thesimpledollar.com
3. Different ideas on handling personal financial matters

1. Islamic finance - personal not economic point of view

My major source of information is the world wide web. Once one start reading, there are too much of information that a layman like me finds overwhelm.  The best way to tackle it for me through Islamic finance.  Insya-allah it provides me a base guide on which instrument to follow (investment, saving, spending and etc.) provided Allah s.w.t. could also grant pahala - amin.

Furthermore, most of the reading material focuses on economy and not on personal, finding the one that suit my desire is a bit of a challenge. I am still hoping to read more on this.

2. Based on my frequent visit to www.thesimpledollar.com

Currently, this is one of my top reading sites that I referred to. It provides a general understanding in finance covering all aspect of life without being biased. Most other sites tend to focus on their method of financial success. Its good, but not everyone are created equal - a method works for a man might not work for his friends. I am yet to discover the method which suits me, hence reading this site gives a blanket to all instruments.

3. Different ideas on handling personal financial matters

Similar to the www - books provide a method that is focusing one that the author successfully tested. Different writers, different methods, different point of view. As I am yet to find a method/s which tailored for me, having a wide reading materials gives insight to many financial tools is a great way.

So, for the new year, I wish to read more on item 1 (besides chic lit, parenting and biography) and more on local authors i.e. financial matters related to Malaysians.

PTPTN Study Loan

Since its launch on October 2012 I have been praying I would have saved enough to make full settlement and earn the 20% rebate offered. Alhamdulillah, I managed. I paid off in full earlier this month.

Reading The Simple Dollar by Mr. Trent Hamm helps in a way to find the courage to settle the debt. The 'Can I Really Afford This' lingers at the back of my mind. Even until now. The extra few zeros in case of emergency is no longer sitting in the bank account.

This encourage me to further settle my other debts including mortgage. Especially after reading few articles by Ustaz Zaharuddin.

Keadaan umat Islam menjadi memilukan apabila, aktiviti berhutang menjadi asas kehidupan masyarakat hari ini, ia mungkin tidak pelik bagi mereka yang tidak berkemampuan, tetapi ia telah menjadi kaedah dan teknik yang terbaik (sebagaimana didakwa) bagi mencapai keuntungan dan mengekalkan kekayaan sesebuah syarikat atau individu. Sila rujuk www.zaharuddin.com.

Maka lahirlah ramai individu yang berkemampuan untuk membuat pembayaran secara tunai, tetapi masih lagi suka berhutang dalam membeli kereta dan rumah. Hujah mereka mudah sahaja dalam hal ini, iaitu jika bayar tunai maka kita akan RUGI, RUGI dan RUGI. Inilah satu fenomena kurang sihat yang telah di anggap sihat oleh masyarakat hari ini.  Ia berpunca daripada kurangnya maklumat berkenaan bahaya hutang dalam keadaan berkemampuan. 

I considered to hold on my assets as investment tool. In actual fact I could sell it off to reduce the mortgages. Not to mention, refinancing has become another form of lifestyle tool to earn instant cash.

It really got me thinking hard. Am I being too attached to the things worldly possession Allah lent as trust and to test? Am I still going to behave according to the great Prophet guidance once being granted with more worldly possessions? Am I seeking more luxury while I do have enough and there are others who are barely making ends met?

Further in the article by the Ustaz,

Ya Allah, aku berlindung dari kekufuran dan hutang, Mendengar itu seseorang bertanya, " Apakah engkau menyamakan kekeufuran dengan hutang wahai Rasulullah ? ; " Benar " Jawab Rasulullah" ( Riwayat An-Nasaie, 2/316 ; Ahmad , 3/38 ; Al-Hakim berkata Sohih dan disepakati oleh Az-Zahabi; Menurut Albani : Dhoif )

Regardless one on debt due to one ability or otherwise to make the payment, one still in line with kufur if he/she are still in debt.

We are here in this world as servant, to perform every movement the way to please the master. We are at the period of end of the world. One of the biggest challenge being in this period is worldly possession. Unlike the previous ummah, the trials faced by them among other is in form of earth disaster which leads to starvation. We are being tested with having too much of all and yet still wanting more. 

As long as we are still hardworking, we should be grateful for the rezeki halal granted.

I am writing this merely to remind myself the purpose of my presence in this world own by Allah as his servant and at the same time, as a khalifah.

2013 RESOLUTION

This year I decided to follow one of Trent's Money Rule upon reading his 365 Ways to Live Cheap (Revisit) series through out 2012 on saving. Yup he provided 365 ways on how to do it and I decided to prioritise only 1 of it which is - score for every dollar saved from discounts. I do not intend to follow religously as my intention is to ensure I do saving from the discounted items.

All this while I do seach for bargain. However this year I would follow the rule to score the saved dollar to a saving instead of spending the save on other item. To date I have managed to save approximately RM13 and its only the sixth day of the year! Pat in the back. Woot woot.

I have been applying few other Trent's tricks on spending i.e. the '10 second rule', '1 month rule' and '1 hour research for every $100 to be spent on an item'. I found these rules are a big help in avoiding temptations, making me being more sensible when making decision before any purchase. I am not devoated to it tho, mostly it assist me to be a moderate when it comes to spending and allows me to stretch my ringgit.

Another financial resolution is to be diligant in keeping my book, updating every single cent spent. I have been doing it for close to five (5) years. That long and yet I failed to sum it annually. I would normally feel discourage once I realized I spent more than my earnings. I trully break the 'spent less than you earn' rule. Its really dishearthening to see the negative figures. I would only feel encourge to jot the daily expenses if I managed to see a positive figure at then end of the month or I would feel useless doing it.

So this year, I pray hard that I would be able to save tru the above mentioned method, spend according to the rule as basis and monitor my spending by proper book keeping for a po$itive future outlook. Amin.

Bring Your Own Bottle Green Concept

BYOB Green Concept is a shop operated in USJ 9, selling cleaning products; self care, household, pets and etc.

As much as I feel guilty for not doing enough for the environment. I am not keen enough to try make my own laundry detergent and save environment and definitely some cash to save in the process.

This is an alternative I might consider. They have several outlet. Do check out their FB to find the closet shop  near you!

*I do feel guilty for not using cloth diaper (CD) religiously*

2012 - End of the World?

2012 - end of the world was anticipated by Mayan calender and many belive the prediction due to many previous prediction made to be 'truth' or 'related'.

The end of the world would be define by myself as the collapse of economy world due to the US economy recession. The 1920's great depression started in the US in the last century and 2012 will be the great depression of this century, hence the prediction to the end of the world made by Mayan might be true after all.

During the Great Depression, the econmist decided to take a step back and let the economy recover itself. This action might be repeated this time around. However, the current recession would blame on credit or shall I say 'riba'? 

The human race are trying to create a way of life based on trial and error instead of based on guidance from Allah and the messangers. The error we are facing are at a great amount which affect every human, not a worth error. Hence, it would be best to live the life based on guidance from Allah. wasalam.

Islamic Loan

I listen to 3 different radio station daily - BFM (89.9) HotFM (97.6) and IKIM (91.5).

Each provides different gendre for different part of the day as the segment differes according to my daily routine. The Breakfast Grill will interact with heads from various business background which I listen to during my way to the office after droping the boys. HotFM plays songs through out the day hence it would not distract me from doing work while I am in the office.

IKIM carries talk show which I listen to during my journey from the office to collect the boys. IKIM segment differs every day, from being a professional muslim on Mondays, family issues on Tuesdays, financial matters on Wednesday, interaction with a mualaf on Thursday and Fiqah on Fridays.

Recently, I feel distrubed after listening to their financial segments. This segment provides a guideline on how to manage financial matters based on hadith and sunnah. It really makes me think twice on currents conventional loan we have. Perlu beralih arah nampaknya. Maybe I should consider to have an Al Rajhi bank account. Kat area office ni ada lebih 10 bank tapi Al Rajhi is not one of it.