Inflation and us
Lately our people constantly under attact of inflation. Starting from price increased of raw materials, then the petrol (whopping of 40%), foods, electricity and latest should be the interest rate.
I read from certain blog that predicted next 2-3 years will be down turn for Malaysia which count after-effect from US. Sub-prime, oil price, etc will later came to Malaysia shore. Since this will happen in next few years, thus I'm currently preparing on how to soften the effect to me and my family.
My plan should be as below:
1. Diversify my investment to include mutual fund (multiple fund manager). To include stock holding of certain blue chip stocks.
2. Make settlement on my housing loan - currently revise interest package into fixed 5 years promotional rate.
3. Keep as much as cash in multiple currency - including gold (of course exclude US Dollar)
4. Hold-on all luxury purchase such as LCD/Plasma TV, oversea vacations, PC/laptop
5. Liquidate asset to generate better cash flow.
6. Looking at small agriculture land for future investment. Somehow I predicted that more people will sell their land in next few years due to the inflation force. That will the time when I'll start buying.
To achive above, what I've done as below:
1. Sell my car to get new car (cheaper price, consume less petrol, zero maintenance)
2. Fix the car loan to 3-4 years to cushion the expenses later.
3. Start using energy effecient electrical equipment - energy saving bulb, inverter technology equipment, etc
4. Request to interest rate revision for my housing loan - successfully reduced from 7.75% to 5.15% for next 5 years. I'm confident can make settlement of the housing loan within 5 years from now.
5. Any extra money keep pouring into cheaper but quality mutual fund, blue chip & future technology stock.
I guess this should me thought for every body but early signal given by certain expert should be given serious consideration. As engineer, I'm trained to prepare for the worst. Just too bad when people isn't listening.
I read from certain blog that predicted next 2-3 years will be down turn for Malaysia which count after-effect from US. Sub-prime, oil price, etc will later came to Malaysia shore. Since this will happen in next few years, thus I'm currently preparing on how to soften the effect to me and my family.
My plan should be as below:
1. Diversify my investment to include mutual fund (multiple fund manager). To include stock holding of certain blue chip stocks.
2. Make settlement on my housing loan - currently revise interest package into fixed 5 years promotional rate.
3. Keep as much as cash in multiple currency - including gold (of course exclude US Dollar)
4. Hold-on all luxury purchase such as LCD/Plasma TV, oversea vacations, PC/laptop
5. Liquidate asset to generate better cash flow.
6. Looking at small agriculture land for future investment. Somehow I predicted that more people will sell their land in next few years due to the inflation force. That will the time when I'll start buying.
To achive above, what I've done as below:
1. Sell my car to get new car (cheaper price, consume less petrol, zero maintenance)
2. Fix the car loan to 3-4 years to cushion the expenses later.
3. Start using energy effecient electrical equipment - energy saving bulb, inverter technology equipment, etc
4. Request to interest rate revision for my housing loan - successfully reduced from 7.75% to 5.15% for next 5 years. I'm confident can make settlement of the housing loan within 5 years from now.
5. Any extra money keep pouring into cheaper but quality mutual fund, blue chip & future technology stock.
I guess this should me thought for every body but early signal given by certain expert should be given serious consideration. As engineer, I'm trained to prepare for the worst. Just too bad when people isn't listening.
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