Senior Savings Accounts

A savings account is one of the most basic banking products. For senior citizens who have to take on less risk with their funds, there are accounts that are specially targeted at preserving their nest egg.

Table shown below is a number of banks offer such accounts to those senior citizens.




The most higher interest rate offer is from Affin bank with starting rate of 2.8% per annum for minimum deposit of RM 5,000. The rate is almost like most banks' 12-month Fixed Deposit rates of 2.85%.

However, we all know the interest rates offer couldn't beat the market inflation!!  Inflation can REDUCE Purchasing Power with the advancing of time...So, it's better to have a better knowledge on financial planning at younger age to learn not just to know how to preserve your wealth but MAXIMIZE your wealth!

Remember! Small effort to put in if you are start at young age!

How Do You Trim Down Your Expenses ??

Few guidance that you can trim down your expenses:-
1) Go for cheaper alternatives. Anything from furnitures to food stuff to toiletries will have their upmarket brands with upmarket prices and the ordinary brands with more down-to-earth prices.

2) Watch out for the sale periods. As far as possible, hold your purchases of non-regular items like camera, golf equipment or electrical appliances until the sale comes. You will surprised at how much you can save. You can also get good bargains at numerous exhibitions fairs for computer, home decorations, tours and travel and so on.

3) Delay your purchases of your "want" items for as long as possible. You may realized that you no longer "want" it after a while. Or if you are fortunate, your close friend or relative may want to give it away and you would have gotten it free!

 

Financial Planning And You

A net cash flow situation is important because it helps you to build up assets that can be used for the future, for instance, at retirement. Financial planning is about meeting future goals and objectives either for children education planning, retirement planning, optimize your investment portfolio etc.. Such goals can only be met by net cash inflows that are accumulated year after year until it is needed.

Prudent cash flow management means to keep our expenses well below our income levels, and have some amount of savings set aside for the future. As a rule of thumb, you should always have  at least 3-6 months of your household expenses kept as emergency funds in your Savings Account or Fixed Deposit to meet unexpected events like a retrenchment, a sickness in the family, major car breakdown, house maintenance and so on.

Individual should attempt to do the following to increase his net cash inflow.

1. Set up a budget to keep expenses within limits. Track all expenses to ensure they do not exceed what has been allocated.
2. Look for ways to restructure your debts to reduce borrowing cost / monthly repayments.
3. Look for opportunities to reduce taxes.
4. See if the net cash inflow is sufficient to meet the future goals and objectives.
5. If it is insufficient, go back to your budget to see if there are areas where you can trim down your budget.
6. Repeat these steps until you are satisfied that you have channeled the maximum portion of your income into your future goals.

You should start immediately to create the Family Budget, as it is important part that you cannot miss.