@erniedavid Too little buffer, doesn't leave much room for emergencies/big purchases if you get the SUV. If you really want the SUV, strongly advise to rent out the 2nd property first. Once you secure that cash flow then it's safer to buy the car. You might be too optimistic with the rental there and how long it can take to find a tenant
@erniedavid Your finances are tight but the SUV purchase won't kill you. Just less savings. I mean if you can work out this budget, you should know the answer.
@erniedavid you are paying 6000 in insurance yearly... is this some investment linked plan? get rid of that and just put more into ASB/EPF and you will save alot more in the long term
Its no point waiting, cars will only get more expensive due to the weakening RM. Since u cant make it for CNY anyway, wait for the after CNY promos
@nativepride A non-ILP. Just get a pure insurance product (might be hard to find these days) if you want insurance. Getting any ILP is basically giving the insurance agent a huge slice of commission.
If you already have an ILP which you have been paying for years, you can stop your payment and let the insurance charges get deducted from your investment portion. Continue payment once the value from the investment portion shrinks down to a much smaller level.
Check your statement and you'll be surprised how cheap the insurance charges actually cost (when you're below 40 years old) and how much money is actually being funneled into the investments.
Just make sure your policy allows this without any additional fees.
@mercyfollowsme Not CX-5. I'm looking at Subaru Forester as it fits my needs better.
The CX-5 would cost about RM100-150 more in monthly installments but also comes with 5 years free service. But regardless, it's not as practical as Forester due to the tight space.
Also looked at CRV but this will cost me additional RM200 per month with no free service.
@kate1989 I'm still thinking if I should keep my other car (a 10 year old Honda City) or just sell it off
I'm quite sentimental with this car as this is my 1st car in Malaysia and has served me well over the years. The car is still running fine with no issues.
@erniedavid it doesn't seem wise to maximize that much commitments. You surveyed the rental market in that area already for that 2nd house? how sure are you could at least get that RM1.6k rent?
but if your spouse is also working & this figure you posted excluded your spouse's income, then I guess your household probably have more buffer/leeway for more expenses.
@erniedavid then obviously no for the car. too many commitments on your plate as the sole breadwinner, you'll be left with.. almost no savings maybe. The car installment alone already RM1.5k per month, you'd assumed you will still be left with RM500 for savings, but you don't even account yet for the car's maintenance, insurance, fuel.. it might cost more than your current Honda's expenses.
@erniedavid Spouse no work you need more than 6 month emergency funds. Even if you have it, please dont spend 1.5k on a depreciating asset when you can invest 1.5k. The difference is 3k month on month.
