Rate my Finance + Need Opinion

[resjudicata]

@erniedavid How many kids you have and How old are they? How confident the house can easily be renting out?

 

[lynq]

@erniedavid Not that i want to know, you should ask yourself this. What's your retirement goal? How much savings do you need? How much you have now? If you tell me your savings now is rm1million, then the response could be different to whether you should be owning your dream car or not. But looking at the numbers i doubt no. This on top of only having EPF contribution starting from 2021.

If something happen to you as a sole breadwinner, what are you leaving behind to your loved ones? Debt or money?

Even though you say commitment is 9.4k, actually 1k of that is asb and sspn savings. So, it's still savings, unless is part of asb financing? If yes, then you cant just stop per se. But purely savings into asb i think it is fine.

You came here to post means you know you are cutting it close. Dont buy that car now. Not without knowing your house #2 can actually rent out or not. You say others are renting at 1.8k. Guess what? Those are your competition as well.

Not buying this car is so that when your kids or your wife ask for a short vacation you can still afford it and say yes within a heart beat. Instead of having to say no or having to cut other expenses to make it ok to pay for the vacation.

 

[pinkyrose]

@erniedavid I say do it after u rent out your other property.

Or buy now if there is a good deal. Also seeing OPR dropping in Q3 or so. Maybe better loan deal long term if u wait

 

[resjudicata]

@erniedavid ASB loan RM500 and ASB savings RM500. Are these 2 different things?

 

[erniedavid]

@resjudicata Yes

 

[resjudicata]

@erniedavid Can explain? Doesnt make sense to me but I dont have asb anyway

 

[erniedavid]

@resjudicata I put the rm500 savings under my kids ASB.

The other rm500 is to repay RM100K ASB loan

 

[resjudicata]

@erniedavid You take a loan, then buy ASB? How much is the profit if you minus the dividend from the interest?

 

[aguscarol]

@erniedavid Since your City is still working fine, it’s probably worth waiting until you rent out your 2nd property first (at least on a 2 year contract) before you commit to the hire purchase. Your monthly commitment is pretty tight but generally it’s ok since insurance, SSPN and ASB (and epf) are form of savings also.
Sometimes it’s totally OK to enjoy your hard earned cash on things you love. Don’t need to feel guilty about it and let others opinions affect you.

 

[aanntdark5161]

@erniedavid If I were you, I'd focus on building an emergency fund of at least 3-6 months first and once that's done only then I'd consider buying a new car.

Have you heard of the 50-30-20 budgeting rule?

Basically:
50% is for Needs.
30% is for Wants.
20% is for Savings/invest.

Based on your salary:
RM5,700 for Needs. Your current commitment is RM7,300. Which is over budget. Balance: -RM1,600.
RM3,420 for Wants. Within budget. Balance: +2720.
RM2,280 for Savings. Within budget. Balance: +780.

If you were to go ahead with the car purchase, you'd definitely be in a tight spot. Perhaps you should rent out your second house first. That would be a wiser decision financially.

 

[danny4mission]

@erniedavid wait for the petrol subsidies to settle down before committing. high chance of T40 dumping their non-hybrid car

 

[jonnyalliance]

@erniedavid Might I ask, how old are you?

Hard to see what to cut, maybe a bit on Wifi is possible, a bit on electricity is possible too.

 

[iyimipiru]

@erniedavid OP, do you have any savings set aside? You only shared your expenses. I think you will get a different response if you have other savings set aside?