Suggested by @aud1
10 - 15 minute read
For those who don't know, kiam siap is a Hokkien word for kedekut. In case you failed BM, kedekut means stingy.
This thread is intended for interns and fresh grads out there. It is entirely based on my personal experience and you may disagree.
I'm not as stingy as some of my colleagues but managed to have a high savings rate of nearly 80%-85% of my take home salary. I bet my stingy colleagues save close to 95% every month. Here's what they did:
1) Transportation
Owning a private car is expensive. If your parents lend you their old banger, take it! This car is not going to be a chick magnet but it takes you from point A to B. It's painful to see your fellow colleagues driving God Cars but you need to have thick skin.
Alternatively, combine old banger with public transport. That way, nobody will know what you drive and you get to skip the terrible jam, reduce carbon footprint, and get daily exercise.
Most train stations allow you to park your car cheap. If you super kiam siap, park at a nearby taman and walk to the station. Pray that you don't get saman. Try to park indoors or under the shade to reduce car damage due to weather. Don't forget to put your wipers up!
You can look into the My50 or the My100 monthly pass if you are a frequent traveler. You need to do the math yourself to calculate the savings and determine whether it is worth it. Check the rates here.
Note: Due to covid, a My30 pass is introduced until 31 Dec 2021. It has the same features as My100 pass. More info here. So opt for this instead of My100 until 31 Dec 2021.
In case some of you are financially illiterate, I will show you how to do a cost benefit analysis.
Scenario
#1
#2
#3
Destination to/from work
Kelana Jaya LRT to KL Sentral LRT / KL Sentral LRT to Kelana Jaya LRT
Taman Jaya LRT to KL Sentral LRT / KL Sentral LRT to Kelana Jaya LRT
Bukit Bintang MRT to KL Sentral LRT / KL Sentral LRT to Bukit Bintang MRT
Cost per way (Cashless)
RM3.00 & RM 3.00 = RM6.00 daily
RM2.20 & RM2.20 = RM4.40 daily
RM1.70 & RM 1.70 = RM3.40 daily
x No. of working days (assume 25 days in January)
x 25 days
x 25 days
x 25 days
+ Additional days used (e.g. weekend shopping)
Repeat calculation. Assume 0
Repeat calculation. Assume 0
Repeat calculation. Assume 0
Total cost without pass
RM150
RM110
RM85
Cost of pass
(RM100)
(RM100)
(RM100)
Net savings/(loss)
RM50
RM10
(RM15)
Verdict
Take My100 pass
Almost no difference. *Suggest not to take pass for flexibility.
Do not take My100 pass
*Flexibility means sometimes you may fall sick/need to work from home and you end up paying for nothing. Payment is advance and non-refundable.
See the difference? This is why you should have paid attention during math class.
Bonus: If you are still as student/about to graduate/person with disabilities.
You can apply for a concession card that gives you a 50% discount on the cash (not cashless fee). This card lasts for a year and expires a year later unless you renew. You cannot renew if you are no longer a student. They need a letter from your university/college as well as a person-in-charge for the application.
From Scenario #1, let's say we cannot decide between My100 pass or the Concession card.
Scenario
#4 (Concession card)
Destination to/from work
Taman Jaya LRT to KL Sentral LRT / KL Sentral LRT to Kelana Jaya LRT
Cost per way (Concession)
RM1.70 & RM1.70 = RM3.40 daily
x No. of working days (assume 25 days in January)
x 25 days
+ Additional days used (e.g. weekend shopping)
Repeat calculation. Assume 0
Total cost with concession pass RM85 Cost of My100 pass RM100 Verdict
Since concession pass is cheaper/more flexible, take the concession pass.
2) Food, drinks and snacks
You can bring your home cooked food to work to save money.
However, cooking is time consuming and sometimes it is better to just buy cheap chap fan/nasi campur. What one of my colleagues did was they brought yesterday's dinner for lunch. It is still freshly cooked, saves you money and avoids wastage.
If you do decide to cook, you should cook something that can be frozen and thawed easily. It should also taste good since you will be eating it every day for lunch. You can rotate the recipes every week to avoid being bored to death.
What I like to bring is Japanese curry rice. I use this recipe. It tastes great and has most of the essential stuff (protein, fiber etc) for a balanced diet.
Glass food containers are recommended because it avoids bad smell.
Keep some dried healthy snacks in your bag like nuts, a banana or a Massimo bun in case you get hungry.
Bring your own cups and utensils to work. One embarrassing mistake I made as an intern was using the cups at my client's office. It was actually someone else's cup.
Also, note that most of your colleagues will likely be heading outside for lunch and dining alone in the work place means you may miss out on networking opportunities. In some toxic cultures, they may deem you as anti-social or "not a team player" just because you don't join them for lunch.
3) Budgeting
Always review your monthly expenses. E.g. how much you spend on food, entertainment, family allowance, clothing, insurance etc.
My advice is not to become super kiam siap to the point it takes a toll on your mental health.
I have seen some extremely kiam siap people whereby they rather spend an hour in the jam than using RM1 at the toll just to escape it. In essence, time is also money. The RM1 spent to save an hour can be used to learn a new skill that can get you a salary bump in future.
You should opt to allocate 10% of your salary as guilt-free spending like treating yourself to that Starbucks drink or that nice sweater you really want.
4) Emergency cash
Build a 3 to 6 months emergency savings in liquid cash. You can keep them in fixed deposits with variable maturity dates. This cash is not to be touched except in emergencies like health issue, job loss or other unexpected turn of events.
You do not want to be that guy who goes around asking friends and family for money. People will avoid you like aleper covid patient.
Emergency cash in your bank account also improves your self-esteem. E.g. if you hate your job or toxic work place, think of this money as GTFO money whereby you can resign without notice.
5) Credit card
Get a credit card immediately to build a good credit score. This may help you secure bank loans in future if you need it. Obviously, you should expect to pay on time. Never use your credit card beyond your means!
Most banks give freebies too if you register for their cards. Some cards give cash back monthly (capped at certain amount) so do take advantage of this. Do your own homework.
Bonus: Method to borrow small amounts of cash at low interest rate using credit card.
There is a way not known to many on how to withdraw small amounts of cash using your credit card at 3% p.a. interest.
How does it work? By topping up money into an e-wallet that allows you to withdraw to your bank account. For example,
So how does it work? You must time it carefully.
Step 1: Top up e-wallet: Top up RM1,000 into your e-wallet using your credit card and perform withdrawal to your bank account. Do this only on the date of your statement coverage. E.g. 5 Jan. The money should be in your account account in 2 working days.
Step 2: Prepare to pay your credit card: Since you performed the transaction on 5 Jan, you only need to pay it by 23 Feb before it starts incurring interest. The e-wallet limit should reset on 1 Feb allowing you to top up and withdraw again.
Step 3: Top up e-wallet again: Top up to pay your credit card that dues on 23 Feb. Only top up on 5 Feb although Big Pay's limit resets on 1 Feb! This is to avoid the charge from appearing on your statement. Otherwise, you will need to pay RM2,000 by 23 Feb. Another RM1,000 should be in your account by 7 Feb and use it to pay by the 23 Feb due date.
Step 4: Rinse and repeat: Keep doing this until e-wallets reduce the monthly top-up limit or increase charge. Sometimes your bank may ban this practice because they are losing potential way of earning money from you.
Simple isn't it?
In this example, the limiting factor is Big Pay's monthly withdrawal. It may be possible to do this strategy using other e-wallets simultaneously. The next limiting factor will then be 50% of your credit card limit. E.g. RM5,000 limit only allows you to do this maximum RM2,500.
6) Investments
Try to invest every single cent you earn today so you can retire early. Life is not about work, work & work. You are not born to be a slave to a company.
Most youngsters like high risk investments e.g. cryptos, penny stocks or money game. I prefer the safer sure win method of boring dollar cost averaging into low cost ETFs for a few reasons.
Closing note
That's it from me today. Hope you enjoyed reading!
By the way, you guys can write your own guides too. If it is quality content, we can pin it in the Wiki.
10 - 15 minute read
For those who don't know, kiam siap is a Hokkien word for kedekut. In case you failed BM, kedekut means stingy.
This thread is intended for interns and fresh grads out there. It is entirely based on my personal experience and you may disagree.
I'm not as stingy as some of my colleagues but managed to have a high savings rate of nearly 80%-85% of my take home salary. I bet my stingy colleagues save close to 95% every month. Here's what they did:
1) Transportation
Owning a private car is expensive. If your parents lend you their old banger, take it! This car is not going to be a chick magnet but it takes you from point A to B. It's painful to see your fellow colleagues driving God Cars but you need to have thick skin.
Alternatively, combine old banger with public transport. That way, nobody will know what you drive and you get to skip the terrible jam, reduce carbon footprint, and get daily exercise.
Most train stations allow you to park your car cheap. If you super kiam siap, park at a nearby taman and walk to the station. Pray that you don't get saman. Try to park indoors or under the shade to reduce car damage due to weather. Don't forget to put your wipers up!
You can look into the My50 or the My100 monthly pass if you are a frequent traveler. You need to do the math yourself to calculate the savings and determine whether it is worth it. Check the rates here.
Note: Due to covid, a My30 pass is introduced until 31 Dec 2021. It has the same features as My100 pass. More info here. So opt for this instead of My100 until 31 Dec 2021.
In case some of you are financially illiterate, I will show you how to do a cost benefit analysis.
#1
#2
#3
Destination to/from work
Kelana Jaya LRT to KL Sentral LRT / KL Sentral LRT to Kelana Jaya LRT
Taman Jaya LRT to KL Sentral LRT / KL Sentral LRT to Kelana Jaya LRT
Bukit Bintang MRT to KL Sentral LRT / KL Sentral LRT to Bukit Bintang MRT
Cost per way (Cashless)
RM3.00 & RM 3.00 = RM6.00 daily
RM2.20 & RM2.20 = RM4.40 daily
RM1.70 & RM 1.70 = RM3.40 daily
x No. of working days (assume 25 days in January)
x 25 days
x 25 days
x 25 days
+ Additional days used (e.g. weekend shopping)
Repeat calculation. Assume 0
Repeat calculation. Assume 0
Repeat calculation. Assume 0
Total cost without pass
RM150
RM110
RM85
Cost of pass
(RM100)
(RM100)
(RM100)
Net savings/(loss)
RM50
RM10
(RM15)
Verdict
Take My100 pass
Almost no difference. *Suggest not to take pass for flexibility.
Do not take My100 pass
*Flexibility means sometimes you may fall sick/need to work from home and you end up paying for nothing. Payment is advance and non-refundable.
See the difference? This is why you should have paid attention during math class.
Bonus: If you are still as student/about to graduate/person with disabilities.
You can apply for a concession card that gives you a 50% discount on the cash (not cashless fee). This card lasts for a year and expires a year later unless you renew. You cannot renew if you are no longer a student. They need a letter from your university/college as well as a person-in-charge for the application.
From Scenario #1, let's say we cannot decide between My100 pass or the Concession card.
#4 (Concession card)
Destination to/from work
Taman Jaya LRT to KL Sentral LRT / KL Sentral LRT to Kelana Jaya LRT
Cost per way (Concession)
RM1.70 & RM1.70 = RM3.40 daily
x No. of working days (assume 25 days in January)
x 25 days
+ Additional days used (e.g. weekend shopping)
Repeat calculation. Assume 0
Total cost with concession pass RM85 Cost of My100 pass RM100 Verdict
Since concession pass is cheaper/more flexible, take the concession pass.
2) Food, drinks and snacks
You can bring your home cooked food to work to save money.
However, cooking is time consuming and sometimes it is better to just buy cheap chap fan/nasi campur. What one of my colleagues did was they brought yesterday's dinner for lunch. It is still freshly cooked, saves you money and avoids wastage.
If you do decide to cook, you should cook something that can be frozen and thawed easily. It should also taste good since you will be eating it every day for lunch. You can rotate the recipes every week to avoid being bored to death.
What I like to bring is Japanese curry rice. I use this recipe. It tastes great and has most of the essential stuff (protein, fiber etc) for a balanced diet.
Glass food containers are recommended because it avoids bad smell.
Keep some dried healthy snacks in your bag like nuts, a banana or a Massimo bun in case you get hungry.
Bring your own cups and utensils to work. One embarrassing mistake I made as an intern was using the cups at my client's office. It was actually someone else's cup.
Also, note that most of your colleagues will likely be heading outside for lunch and dining alone in the work place means you may miss out on networking opportunities. In some toxic cultures, they may deem you as anti-social or "not a team player" just because you don't join them for lunch.
3) Budgeting
Always review your monthly expenses. E.g. how much you spend on food, entertainment, family allowance, clothing, insurance etc.
My advice is not to become super kiam siap to the point it takes a toll on your mental health.
I have seen some extremely kiam siap people whereby they rather spend an hour in the jam than using RM1 at the toll just to escape it. In essence, time is also money. The RM1 spent to save an hour can be used to learn a new skill that can get you a salary bump in future.
You should opt to allocate 10% of your salary as guilt-free spending like treating yourself to that Starbucks drink or that nice sweater you really want.
4) Emergency cash
Build a 3 to 6 months emergency savings in liquid cash. You can keep them in fixed deposits with variable maturity dates. This cash is not to be touched except in emergencies like health issue, job loss or other unexpected turn of events.
You do not want to be that guy who goes around asking friends and family for money. People will avoid you like a
Emergency cash in your bank account also improves your self-esteem. E.g. if you hate your job or toxic work place, think of this money as GTFO money whereby you can resign without notice.
5) Credit card
Get a credit card immediately to build a good credit score. This may help you secure bank loans in future if you need it. Obviously, you should expect to pay on time. Never use your credit card beyond your means!
Most banks give freebies too if you register for their cards. Some cards give cash back monthly (capped at certain amount) so do take advantage of this. Do your own homework.
Bonus: Method to borrow small amounts of cash at low interest rate using credit card.
There is a way not known to many on how to withdraw small amounts of cash using your credit card at 3% p.a. interest.
How does it work? By topping up money into an e-wallet that allows you to withdraw to your bank account. For example,
- E-wallet: Big Pay
- Monthly top-up limit: RM1,000
- Withdraw to bank?: Yes
- Annual fee: Nil
- Withdrawal charge: RM0.50 per RM1,000
- Limit reset: 1st of every month
- Credit card limit: RM5,000
- Statement coverage: 4 Jan to 3 Feb
- Statement due date: 23 Feb
So how does it work? You must time it carefully.
Step 1: Top up e-wallet: Top up RM1,000 into your e-wallet using your credit card and perform withdrawal to your bank account. Do this only on the date of your statement coverage. E.g. 5 Jan. The money should be in your account account in 2 working days.
Step 2: Prepare to pay your credit card: Since you performed the transaction on 5 Jan, you only need to pay it by 23 Feb before it starts incurring interest. The e-wallet limit should reset on 1 Feb allowing you to top up and withdraw again.
Step 3: Top up e-wallet again: Top up to pay your credit card that dues on 23 Feb. Only top up on 5 Feb although Big Pay's limit resets on 1 Feb! This is to avoid the charge from appearing on your statement. Otherwise, you will need to pay RM2,000 by 23 Feb. Another RM1,000 should be in your account by 7 Feb and use it to pay by the 23 Feb due date.
Step 4: Rinse and repeat: Keep doing this until e-wallets reduce the monthly top-up limit or increase charge. Sometimes your bank may ban this practice because they are losing potential way of earning money from you.
Simple isn't it?
In this example, the limiting factor is Big Pay's monthly withdrawal. It may be possible to do this strategy using other e-wallets simultaneously. The next limiting factor will then be 50% of your credit card limit. E.g. RM5,000 limit only allows you to do this maximum RM2,500.
6) Investments
Try to invest every single cent you earn today so you can retire early. Life is not about work, work & work. You are not born to be a slave to a company.
Most youngsters like high risk investments e.g. cryptos, penny stocks or money game. I prefer the safer sure win method of boring dollar cost averaging into low cost ETFs for a few reasons.
- Liquidity: I can sell my investments tomorrow and get my money in 3 days. Very important if you plan to buy a house or get married in the near future.
- Risk: Taking high risk investments is silly to me. If you lose RM100k on some crypto, you need to work another 4+ years to earn it back.
- Stable return: If a particular ETF's 40 year long term average return is 7% p.a., I can expect my RM1,000 invested today to become RM14,974.46 (1.07[sup]40[/sup] x RM1,000) in 40 years time.
Closing note
That's it from me today. Hope you enjoyed reading!
By the way, you guys can write your own guides too. If it is quality content, we can pin it in the Wiki.
