25% Tax for Private Retirement Scheme (PRS) ?

Christmas is coming to town, but before that, it was also the time when many people are rushing to enroll/top up their Private Retirement Scheme (PRS). Why? Main reason is they want to enjoy the tax relief given of up to Rm3,000 per year. However, social media has over-took the whole atmosphere with the purported 25% tax on PRS. Is this true?

All I want for Christmas is Tax-Free...

Why suddenly got 25% tax? It was all started with the below video...

Anyway, some people had misunderstood the meaning and translated into such chaos in social media with more than few thousand likes and comments. Well, it seems like the respond garnered already impacting the PRS contributions for many people.

Since then, the Private Pension Administrator (PPA) which was set up to monitor and administer the whole PRS scheme, had issue a statement to clarify on this matter. Likewise, Inland Revenue Board (LHDN) also issue a statement on this matter. (Click here to view)

To summarize:

1. NO tax on PRS withdrawal when contributor reaches the official retirement age set (currently at age 55)
2. As per previous terms, 8% tax penalty will be imposed if contributor withdraw before retirement age.
3. However, the 8% tax penalty will be exempted if:
• In the event of Death;
• Permanent departure from Malaysia;
• Permanent total disablement (New addition);
• Serious disease (New addition); or
• Mental disability (New addition)

Gone are the so called bad news. Indeed, there is more good news with the 3 NEW pre-retirement withdrawal conditions. PRS contributors should feel relieve now.

Take the opportunity to invest before the closing date for respective PRS providers. You may refer to our previous article on PRS below:

• What is Private Retirement Scheme (PRS) ?
• How Private Retirement Scheme (PRS) actually works ?
• What Are the Tax Benefits for PRS ?

Bursa Malaysia's eStatement

Today, Bursa Malaysia introduced eStatement services to CDS account holders. It enables CDS account holders to receive statements and notices directly from Bursa Malaysia via email.

What's the benefits?

1. To receive CDS statements and notices efficiently and on a timely basis with NO extra cost
2. To receive CDS statements and notices directly to your personal email
3. Minimize risks of not receiving your CDS statements and notices
4. Less cumbersome to keep hard-copy statements compared to soft-copy

For many of us, this is definitely an environmental friendly way of communicating. Also, it effectively reduce the cost of doing business for Bursa Malaysia. Once it implemented successfully, the profits of Bursa should be better... Considering to invest in Bursa shares now?

How to register?

1. From now onward, you CDS statement of account and any notice you receive from Bursa Depository will include your "Unique Password Phrase". (This will ceased once you successfully provide your email address via Bursa Malaysia's website)
2. Then, log on to Bursa Malaysia's website and select "Request for eStatement"
3. Follow the steps and fill-in your personal details as required

As simple as that, NO document needed, NO extra cost, NO headache again. However, please be mindful that once you have provided your email address for eStatement, you will not receive any statements or notices via normal post anymore. Once successful register, you will receive an email confirming your email address within 2 business days and thereafter a computer generated confirmation notice will be mailed to your address.

I have already register my email address under eDividend initiative, do I need to register again?

YES, because there are different type of services.

I have more than one CDS account, do I need to register my email address for each of them?

NO, you just need to register one email address ONCE for all your CDS accounts.

For nominee account, how is it?

You will need to contact your nominee (etc banks or stock broking firms).

For more FAQs answer, click here.

DBKL hikes assessment rate for the sake of hiking?

Maybe the timing was not right, DBKL is in hot water these few weeks, lambasted by KL citizens for its proposed assessment rate hike up to 200%. Just when GST is coming to town, coupled with the fact that the more expensive electricity bill next month, citizens were feeling the pinch in their pocket.

What's the reason for the hiking?

Answer: "The last increase was more than 20 years ago."

As simple as that? It must be joking us... Why don't you lower down your salary because you haven't done so for past years? We're not objecting about the increase for sake of objecting. But, some form of better reason should be justify for the proposal.

Is DBKL running out of money?

According to Star newspaper, Tan Sri Ahmad Fuad Ismail, predecessor to the current mayor, pointed out that he had raised reserves amounting to RM3bil prior to retiring last year. This means that the current mayor inherited RM3bil when he took over.

With additional development expenditure and grants funded by Federal Government under various plans, DBKL should be enjoying handsome surplus. In fact, DBKL is making profits every year and together with its RM3bil cash coffer, we just don't know why such assessment hike was needed.

Instead, DBKL should cut rate to lessen the burden of rakyat.

Am I correct?

Top 3 Common Investing Mistakes

When coming to investing, do you wonder why retail investors always lose out? What are the common mistakes they made? In this article, Finance Malaysia blog pointed out the top 3 investing mistakes by retail investors.

The 3 common mistakes:

1. Trying to time the market.
   "Every often, investors thought that they can forecast the short-term direction of share market, or listen to other people (market timers). It's a big mistake. It was like a gamble, guessing the ups and downs. Can you see a gambler become millionaire?"
   
   
2. Being an active trader.
   "Buying blue-chip counters with long-term profits as a goal is the real way of investing. Don't trade actively which can resulting your goal being blurred along the way."
   
   
3. Using those high cost investing tools.
   "Every single penny you saved contributes to the total returns you gained from an investment. Investors should avoid those high charges investing tools to optimise their return. Can you guaranteed the company that charged higher perform better?"

Happy Investing !!!

5 Reasons WHY Employees Left a Company

Understanding your employees thinking nowadays is crucial to retain top talents in your organization. What's the reason behind for them to press the "Resign" button? Detecting it early and replacing it with a "Stay" button before it is too late.

Please be mindful that the generation now is different, their thinking is different, their feeling towards a job is very much different. As such, employers or top management should find out the determining factor of employees going to resign. Let's look at the reasons...

1. Better prospects
   No doubt, this is the most common reason to leave. We can't prevent someone to leave for good, either because of higher pay or better position offered elsewhere. Correct? True or not, some use this just as an excuse, rather than the reason, to resign. He/She may leave because of other reasons listed below...
   
   
2. Lack of Recognition / Respect from top management
   Sometime recognition or respect from bosses treated as an "parameter" to gauge the value of an employee for an organization. For top performers, other than monetary reward, recognition is also important. Respect come from two ways, not only towards top management. Agreed?
   
   
3. Just can't gel with company's culture
   Everyone's belief and culture may determined his/her length of service. You can't stay in a company which the culture is in contrast with yours. Remember, it's 5 days a week, 9 hours a day job. Example, most of your colleagues joining a direct sales company part-time, but you're not and against it. Can you overcome it?
   
   
4. Unfavorable company forecast
   Normally due to merger and acquisition exercise, employees may feel that it's not in their favor to stay. Maybe he/she will be the one being axed out or VSS later. Then, why don't I leave first before being forced to do so?
   
   
   
   
   
5. Imbalance Work-Life situation
   In the end, working is not everything in life, employees evaluate their lifestyle also especially when he/she gets married and having children(s). Where you work and live is also important. Time spent on traffic jam is stressful and time consuming, which may lead to the exit door.
   
   

After knowing all this, employers should be smart enough to examine each and every candidates before hiring them. Questions such as "Where they live?" and "What's their expectation?" must be asked. Happy working.

Budget 2014: Property Sector Hit Hard by RPGT and DIBS ruling

As widely expected, property sector would be one of the hardest hit sector in view of the proposed cooling measures to be imposed. Out of the 3 tightening rules forecast by Finance Malaysia, 2 already Bingo! (Read our previous articles regarding property sector "3 Tighter Rules for Property Sector?" and "3 Critical Factors to watch out by Year End")

These cooling measures announced highlighting that government will not hesitate to curb property speculations and to ensure a affordable property prices. Of course, property developers will be the one screaming painfully.

The 3 Key Measures:

1. Higher Real Property Gains Tax (RPGT)
   This was the 3rd consecutive year government raised RPGT. Even said so, it was just reinstated back to its original rates since 2007. The different this time compared to previous rounds was different set of rates to be imposed on different categories of buyers as shown below:
   
   
   
   
   
   
   
2. Banning DIBS
   As predicted by us previously, DIBS was deemed to be one of the key motivating factor for speculators, thus pushing up property prices to current level. By banning DIBS, it will effectively diminished the speculative interest as the cost of investment increase with interest payment during construction period. It's good to genuine and first-time house buyers.
   
   
3. Higher minimum Purchased Price for Foreigners
   To minimized influx of hot money shoring up local property prices, government raised the minimum purchased price to above RM1mil from RM500k per unit. However, this doesn't impact the market much because most properties purchased by foreigners are above RM1mil. Nevertheless, foreigners' favorite investment hotspot, such as Iskandar or KLCC or Mont Kiara area would be affected.

Would this be the end of property up-cycle?

Budget 2014: Good to have GST ?

Definitely, one of the hottest debate in Budget 2014 would be the implementation of 6% Goods and Services Tax (GST) starting April 2015. Although it was opposed strongly by opposition parties, government pushed ahead with its implementation emphasizing GST as a "fair and comprehensive" tax as the current tax system has many weaknesses.

Why GST is a MUST ?

Without you realizing, our current tax system has many loopholes whereby many people do not fulfill their responsibilities as a taxpayer. They tends to under-stated their real income, paying less tax than they should, or even worse... none. However, under the GST system, everyone will be taxed every time you spend.

And, if you're paying tax now, you should be happier. Why? Simply because government have a wider tax revenue now with GST because everyone is paying tax. Wouldn't it better?

Why April 2015 ?

Instead of Jan 2015 (expected date), government now has more time to explain and educate the public on GST. In other words, government is playing it safe, "buying time" to minimize the misunderstanding among Malaysians.

Is it okay ?

Implementation is very vital. It's best to implement GST and lowering down the personal income tax rate simultaneously. And, this time government did consider this well. As long as it was implemented properly, this should bode well for our nation to broaden the tax revenue, thus reducing the budget deficit and maintaining the credit rating of our country's obligations.

Why MyEG ?

Strange question over here? Yes. As we knew, MyEG already successfully completed its trial version for GST computation in business premises. Do you know why MyEG shoot up to all-time high to closed at RM2.25 today?

Money Management Concept of 70s, 80s, 90s

When come to money matters, different generations have their own thinking. Before reading on, please listen to your heart deep down inside, what is your thinking? Hahaaa.... Bingo? Let's see...

70s: Saving

Generally, this generation not only hardworking in job, but also hardworking in saving. They usually save their money in banks or placed it in fixed deposit, cultivating a very good saving habit. Pre-retirement: Wealth Accumulation and investing in their children's education. Post-retirement: Wealth Enjoyment and depending the financial support from children. That's a great trade off (at least for that generation)!!!

80s: Self-Sustainable

Due to higher inflation, this materials emphasis generation feeling the pinch of not enough money every month. Credit card, car loan, housing loan, insurance premium... !!! No wonder many of them financially critical when come to month ends. Parents for 80s will be more than happy, if their 80s children doesn't need their financial support anymore. God bless!

90s: Consuming
For them, money is meant to be spent. In other words, this would be a great loss to them if they don't enjoy life now. Very often, they learnt how to spend first before saving money. Anyway, parents were their ATM (Automatic Tomorrow's Money), continuing financial support for their beloved children. Hence, financial management and saving concept for 90s usually is poorer.

So, is this true?

UnTold EPF RM2500 Death Benefit?

Lately, there is a chain email spreading across social media regarding EPF Death Benefit as below:

" ATTENTION to everyone who has an EPF account !!! No matter how old are you, no matter how long you have held your EPF account, no matter how much money you have in you EPF account, and matter how long you have paid for your EPF, according to Government Law, EPF will need to pay RM 2500 to an EPF account holder's family when he/she died (family members need to claim the RM 2500 within 2 months). EPF never inform us about this, I reckon very few people's family did actually receive this RM 2500 when his/her family member died because not many people know about this. Where did this RM 2500 goes when the died's family did not claim for RM 2500? Someone's pocket ??? We don't know! So please bombarded this info to all your families, relatives, colleagues and friends, let them know about this info and remember to claim RM 2500 when his/her family die. Don't let this RM 2500 goes to someone's pocket !!! "

Is this true? Below is the respond from EPF:

The above email contained untruthful accusation. The EPF would like to inform its members that a Death Benefit payment of RM2,500 will be presented to the dependents of the deceased members as a gesture of compassion and to ease their financial burden. However, this benefit will only be given once and subject to the following conditions:

• Malaysian citizen;
• Member has not reached the age of 55 at time of death;
• Application for Death Withdrawal is made within 6 months from the date of the demise of the member.

The Death Benefit is payable to the members’ dependent or next-of-kin when the application for Death Withdrawal is made. 

The EPF would also like to emphasis that the money for Death Benefit comes from EPF’s investment earnings and not from the members’ savings. If the dependent does not qualify under the conditions for Death Benefit, the money will still remain with the EPF to be distributed to all members as annual dividend.

Source: EPF

5 Unusual Tricks to Help you Save Up

Saving money is not always as easy as it first seems, and all those good intentions and budgets can fly out of the window without you even noticing – so why not try some more unusual money saving tips? Here are five of our best tips to help you save up!

1. Never pay with coins
   That’s right, take out all those coins weighing down your purse or wallet and put them in a piggy bank or jar instead. That 10 Sen coin isn't worth much on its own, but once you start saving up all your coins, it can add up to a considerable sum. Avoid the temptation of dipping into your coin fund by storing in it a tin with just a coin slot at the top. If you have to get out a can opener to access those coins, you’re more likely to wait until it’s full before you open it!
   
   
2.  Never say NO to a freebie
   Whether it’s free shampoo and soap from a hotel or free condiments from a restaurant, stock up! These free products are just as good, but with the added bonus that they cost you nothing. It also means that you get better value on your hotel room and meal out, so it’s a win-win situation.
   
   
3. Sleep on it
   Make a deal with yourself: Don’t buy something the first time you see it. Shopping can be a dangerous experience for those wanting to save up, and sometimes all that temptation can get too much. So avoid all that hassle and post-shopping regret by not buying anything the first time you see it or try it on. Go home, sleep on it, look at your finances and your budget and decide whether you really need it, or whether you can survive without it.
   
   
4. Find a partner who’s good with money
   If your partner is always overspending, borrowing money from you and forgetting to pay their bills, chances are you’re not going to be that good with money either. We’re not saying you should break up with your partner if they’re not good with money, but you should definitely sit down together and discuss your expectations when it comes to finances – money is the number one cause of arguments in relationships, so don’t let it ruin yours too.
   
   If you’re still single, on the other hand, why not add “good with money” to your list of criteria? A smart spender will encourage you to save, and will help you to get back on track if you fall off the saving bandwagon.
   
   
5. Save the environment and your money at the same time
   You've heard it a thousand times before: switch off the lights when you’re not in the room, reuse paper, bottles and everything possible… It’s all great for the environment, but there’s another key reason to save energy and reduce, reuse and recycle: it saves you money!

Exclusively for Finance Malaysia Blog, this money saving tips is brought to you by comparehero.my, Malaysia's leading comparison portal.

Why Gold and Silver? Why Online Store?

Are you first time gold and silver buyers? Why don't you invest in these popular metals? If you did so, you have had a wonderful investing experience after 2008 global financial crisis. But, do you really understand these metals? Were they really precious (especially now)?

Traditionally, gold and silver were one form of exchange. Because of the invention of fiat money, they were being turned into some short of "back-up" currency, in case our fiat money system go burst. It's natural when things go wrong, gold and silver tends to appreciate in value. In other words, people hold precious metals to preserve the value of their assets.

3 Reasons Why Gold and Silver...

1. Still hot in demand, especially by emerging affluent Chinese. Traditionally, Chinese loves gold. They bought it for events such as new born baby, new year, wedding and even funeral ceremony.
2. Strengthening USD ??? Yes. It's a correct reason also. Why? Because of news that US going to stop QE3, USD is strengthening so much. But, we must not forget that Europe is still printing money. Then, how about Japan who jump into the bandwagon of money printing?
3. Simply for portfolio diversifying purpose. As a rule of thumb, 10% of our investment portfolio should allocate to precious metals like gold and silver. When everything goes haywire, precious metals tends to react reversely positive.

Alternative Distributing Channel...

Other than the commonly seen channel like banks and goldsmiths, have you ever think about online purchase? Why?

1. Normally, it's cheaper because it does not need to open a shop and employ security guard.
2. Convenient. You can view and select with the pleasure of your time, comfortably at home.
3. Safe delivery. It's depend. But, I will feel safer if it delivers to my doorstep, instead of going to purchase at goldsmith. Do you know someone might be following you?

Of course, some of you may skeptical about the reliability of the online store. You may try it with small purchase first (test the water before diving in). On this matter, one of the most popular online store in town was SilverMalaysia.com which already features in major dailies with wide media coverage. You may open an account, then explore further.

* Finance Malaysia Blog DO NOT holds any form of liabilities regarding the recommendations. Investors are advised to read and understand the terms and condition thoroughly.

3 Tighter Rules for Property Sector? (Sept 2013)

Prior to Budget 2014 (to be tabled next month), speculation has rift up on a few proposal to tighten the rules, especially on property sector. Following the outcry from public stating the alarming high property prices, measure should be taken to tackle the issue before bubble was formed.

The Bubbling Biz...

Among the measures being proposed were:

1. Non-other than Real Property Gain Tax (RPGT)
   
   
   
   
2. Higher Stamp Duty:
   ~ 5% of purchase price for 3rd property
   ~ 7.5% for 4th property
   ~ 10% for 5th property onward
   
   
3. Loan-to-Value ratio reduce to 60% for 3rd property onward
   
   

While the above info need to be ascertained further, some banks already implemented their in-house ruling. What's that? It was to limit the maximum term for refinancing of property to 10 years. Yes. Sooner or later, all of the banks will follow.

* Please note that the above 3 rules need to be ascertained further. Stay tune!

Work Ethic of 70s, 80s, 90s

Different generations have their own view on working. You like it or not, working is part of our live. No work = No life. However, this equation has since changed to "Working = No life". Do you agree?

Generally, those born in 70s were perceived to be loving their job. They work hard mainly because of 3 meals/day. For them, a secured life means having a stable job with stable income. They believe that with every efforts you put in, that will reward you back later. As such, over time (OT) is nothing for them.

As a responsible 70s, losing their job is a serious matter they tend to avoid. That's why they usually found another job first, before resigning.

How about 80s?

Other than chasing for stable income, those 80s working adults will also look into the job scope, opportunity for promotion, or working environment. They will take initiative to find for better job. Hence, job hopping is very common for them.

Notably, 80s are reluctant to sacrifice their quality of life because of work. So, don't expect them will OT without paying extra.

Free and easy 90s?

Just because almost all of them are graduates, 90s always hoping to find a "reasonably good pay" kind of job. However, employers reluctant think in contrast. This is why many fresh graduates still unemployed, while employers facing difficulties to find suitable candidates.

Other than salary, they also emphasize on working environment and their interest. Otherwise, will they resign? Yes. They don't care and will resign straightaway, maybe, because of their wealthier parents. Why want to force themselves into job? They can become boss and entrepreneur anytime.

What do you think?

How Much You Need To Save If You Ever Want To See Your Kids Graduate?

In an age where the common degree has become a pre-requisite and not so much an advantage, ensuring that you have enough to see your children through a reputable university has inadvertently become one of the most important responsibilities you’ll face as a parent.

Unfortunately, knowing how much to save for your kids’ tertiary education is not an easy question to answer.  In fact, it is downright complex in view of the vast differences in costs from degree to degree, university to university, and country to country.  And even for those who do have a number in mind, there is still the question of when you should start saving, using which savings / investment vehicle.

If you have been wondering about your financial capabilities to finance your kids’ tertiary education, or you have been seeking a workable method to save a sizable study fund for your children; allow iMoney to shed some light on this matter with their latest infographic:

Courtesy of iMoney.my

Lesser Amount can be Withdrawn for EPF Members Investment Scheme effective January 2014

Are you an EPF member who withdraw money out for investment scheme? Then, this is a very important news to you.

Effective January 2014, the minimum basic savings required in Account 1 was revised upward. This will affect all of YOU who withdrawn certain amount from EPF account 1 for eligible investment purpose. Higher limit means lesser money you can withdraw from EPF in the future.

How much will be increased?

Based on the chart below, the percentage increased can be as high as 64%. Generally, the increasing amount was at least 50% once you're age 27 onward.

How to calculate how much can I withdrawn from EPF account 1?

What's the different or impact?

Depending on your age and how much savings in account 1, the impact varies by members. For better explanation, please see example below:

Finance Malaysia hopes this post can enlighten you on EPF members investment scheme withdrawal. You may share this to your friends. Thanks.

Funnies From China

By Guest Blogger Salvatore Dali

Originally posted in www.malaysiafinance.blogspot.com

English is a hard language when its not your mother tongue ... things get lost in translation sometimes. In Malaysia it happens, in particular when we get zombies trying to do the English subtitles for movies. These are from China, in now way am I singling them out. Japanese ones are funny as well ... there are also the ones from India, Indonesia, Thailand ... but one at a time.






Some guys (assholes) should really go to the second room.




Hey, might as well be honest while you are at it!




The police/army are so considerate.


We certainly need this sign in Malaysia ... car showrooms and Pavilion.


Awww ... shucks.




I will definitely try that!!!


What an awesome gift for some of my friends the next time I travel to China.

Should or Would Government Privatizing MAS? (Aug 2013)

Both of our ex & current Prime Minister already voiced their views regarding this matter. Yesterday, our ex-PM said Government should SELL MAS if it can be run more effectively by private sector. Meanwhile, when asked, our current PM said there was no plan to privatize MAS now because it was on track to its turn around plan under the helm of new management. So?

In fact, this was like a million ringgit question for many speculative investors. Maybe, they or YOU were hoping for the deal to materialize if you bought the shares just recently. Anyway, it won't be as easy as you might think.

1. MAS is a national carrier. It carries the national flag wherever it goes. (Some more, national day is approaching now)
2. How much to privatized? Especially for a still loss-making company... Definitely, Government won't get much if MAS being privatized now.

However, everything is possible given the facts below:

1. National company is just a company anyway. We have just witnessed the privatization of KTM, POS and PROTON few years back.
2. Government's coffer is more important. You can't keeps on letting the pumping money to save a company. Why not let go the 'vampire' of money?

The score now is 2-2. Anything to add?

* Hint: RHB research puts in a target price of RM0.43 for MAS in its report dated 25th July 2013. It this was the offered price, would you satisfy?

Conclusion:

It depends on whom being asked this question. If posted to share investors, the answer would be YES because you most probably can profit from it (if higher premium was offered). However, the answer might be the opposite if posted to Government.

Interviewing 非常好歌 Superstar - Quek Shio Yee

Learned piano and violin since young, started writing songs when in high school. This is the background of new born superstar - Quek Shio Yee. After wining the BEST SONG with Lexi Chan, Finance Malaysia blog managed to grab the opportunity to know her better.

When asked about her future direction, the UCSI undergraduate yet to plan for it. Hmmm... I guess her fans out there for sure would loved to see her on stage again. Right?

Full Interview here:

1. When did you realized that you're in love --- with music? How did it started?
   I started my music lessons since I was 4 years old. Since then I've always been musically active. It has been important to me. My parents led me into the world of music. 
   
   
2. On the BEST SONG you won with Lexi, what goes into your mind when she find you to sing in the first place?
   I was introduced to the program by my friend and auditioned. The producer gave me a few demo songs to try, and I was chosen to sing Lexi’s Mission Incomplete. I was happy to sing it because of its sad and powerful meaning. I’m very thankful for the opportunity.
   
   
   
3. Since then, do you feel that you're a superstar now? Any changes/funny things happen in your life?
   I don't feel like a superstar at all. I'm not worthy of that title, and I have a lot more to learn and improve on at the same time. Sometimes I feel self-conscious and anxious in public, especially when someone recognizes me. I am still not used to it yet, but I'm always excited when people just come and say hi and tell me they like the song, I’m sure Lexi would be very happy to hear it too. 
   
   
4. Will you venturing into music industry after graduates?
   I haven't made a final decision yet, but I'll most probably take up a career that involves music. I compose music too, so I will also be taking that into consideration.
   
   
5. Between Passion and Money, which one you prefer in future?
   Passion is more important to me, it is what I need to pursue what I love and to maintain my determination. Money is something that I need to get by with, in life, and it is a necessity after all.
   
   With this, Finance Malaysia would like to thanks Shio Yee once again for the interview. We are confident that she will do well in the future, judging by her excellent voice and talents. All the best!
   
   
   
   
   
   
   

Understanding the Habits of the Rich

Fancy getting rich? Here are the rich man’s habits.

Seminars, webinars, Social events/ gatherings, book launches... These right here are some of the main events circled on the rich people’s calendars!

Ever wonder why?

At one of the many book launches I have been to I had a chance to chat up the local best-selling author Azizi Ali, brilliant mind I must say. He told me that the number of books published in a country mutually relates to the wealth of the citizens.His explanation therefore was the more publications per annum, the more the development countrywide hence increase in the wealth of the individuals.

Not so long ago while I was at a luncheon with this brilliant friend of mine, he mentioned that “rich people seldom eat alone”. I was quite ecstatic because this is a habit that I unknowingly practiced for quite a while now. What he said is totally true come to think about it. Its quite funny that there is an entire book dedicated to this subject “Never Eat Alone”. If you read this book, you will learn a thing or two and where you have been going wrong all his while.

According to the above scenarios, did you notice the common customs of the rich people?

Ask yourself why the rich become richer, the poor become poorer and the “Average” stay stagnant?

THE RICH ENJOY READING. TREMENDOUSLY!

In this dynamic era, the rich still find time to read despite the diverse media. They have plenty to choose from that is to say magazines, books, newspapers, and  of course the internet which is the most dominant of them all.

In this world we live in, you have got to spend money to make money. I know it may sound cliche but take a look at the those thousand dollar seminars and courses, they are always full to the bream! They never go unattended, why? Simply because the rich love to learn. If you fancy an opportunity to meet all these filthy rich people all congregated in one room, I suggest you attend one seminar or course in the area near you. Trust me.

Now I understand not everyone has a couple of thousands of dollars at their disposal that is why I advise you to get familiar with the term webinars. This term is a derived from two words that is to say web and seminar. Thanks to technology we now have webinars which you too can enjoy from the comfort of your couch. They are always scheduled to happen at some stipulated time over the internet. Usually there is a number of slots available depending on the organiser of the webinar. Guest speakers and renowned financial consultants are the people that run these webinars. 

Are you rich yet?

NO! Me neither. So until we all regard ourselves rich, let us acquaint ourselves with the these terms below:

●     Seminars

●     Book launches

●     Webinars

●     Courses

●     Social events/ gatherings

This way, we will keep track of the rich and hey we could be involved in their circles.

Thank me later!

This is a guest post by KCLau. KCLau is the best selling author of Top Money Tips for Malaysians. His popular personal finance blog is one of the most visited websites in the financial blogosphere with thousands of email subscribers. He also hosts regular and free online financial training featuring different financial experts. You can follow his latest updates by visiting www.KCLau.com.