reading books regarding finance then extracting important point
    and make a downloadable and printable copy for my
    future reference.

10-10-80 Rule



 2015 revised 10 10 80 rule

 2015 second revision.
 recalculated budget for income tax


income statement and cashflow quadrant








   assuming nett salary of RM4000 per month :

   10-10-80 Rule
    - 10% @ RM400 for savings
    - 10% @ RM400 for charity , parents etc
    - 80% @ RM3200 for expenses.
        - 30% @ RM 1200 for mortgage
        - 15% @ RM 600 for car loan
        - 35% @ RM1400 for others

   not more than 50% of salary should be spent for loans.
    - 30% for mortgage
    - 20 % for non-mortgage loans e.g / car loan , personal loans etc

  taking 15% @ RM600 for car loan :
   - petrol : RM200 / month
   - insurance / road tax : RM70/month ( assuming RM800 per year )
   - car loan repayment : RM330 / month

  with RM330 remaining per month ( toll & parking not included though ) ,
  the only affordable car is
  RM25k car ( RM340 monthly , RM2500 D.P , 7 years at 3.85% interest )
  RM30k car ( RM340 monthly , RM3000 D.P , 9 years at 3.85% interest )

 with price range of RM25-30k car , some options available are
 new car : Perodua Axia G 1.0 , Proton Saga FLX
 used car : 2008 Proton Persona , 2012 MyVi , 2008 Honda City


housemanship.
I see the popular choice of car among my HO friends are
Honda City / Honda Jazz.
assuming the average price for these cars are RM80k ,

Honda City 1.5L / Jazz 1.5L 2015
RM72k loan , RM8k DP , 3.85% for 9 years = RM900 monthly.

i wonder how much they could save each month paying
this much amount monthly.
I'd rather buy cheaper new car / second hand car , and save
more with the extra money.

e.g / second hand 2012 Proton Inspira 2.0L  / Toyota Vios " Dugong "
        RM45k , RM4500 DP , 3.85% for 5 years = RM800 monthly
        but I will not have to spend a penny anymore after 5 years
        when the loan term ended.

        continue to save RM800 monthly for another 4 years ,
        RM800 x 48months = RM38400
        with RM38k , i can use it as a downpayment for
        a house worth RM300k , while the guy with th
        brand new Honda Jazz / City is still struggling to
        finish his 9 years car loan term.

        i can even save more if I buy RM20k car or below ,
        like a second hand Myvi or Perodua Kelisa.

   
   still asking around and doing research for my first car to
   purchase anyway.