To Own An Asset Or To Own Liability?

I can always hear people are saying that they want to earn a lot of money to buy a house. How many really understand this statement? They will buy the house with minimum deposit and make themselves in debts with the bank.

Do you know  when you take up housing financing loan is actually causing you a lot of money for the house due to the high interest rate you signed in the loan agreement with bank? You will become the slave of the housing loan. If you are not in the position to service the loan then the house will be under repossession by the bank.

You are not the owner of the house and you are actually do not own this asset if you are still have outstanding loan with the bank. Many people like to say that they have bought a house, I think they should say mortgage a house instead.

In this new generation, many young couples are rushing to get a house with minimum down payment. They are unlikely to consider what if they face with financial difficulty one day. They actually make themselves into debt before even starting a family. 

Therefore, a proper planning should be in place. We want to own an assets and not liabilities. Buying any assets with financing help is not owned it but is a liability. You can avoid this if having proper planning. You can buy any house with minimum deposit and with financing help, but do you have any plan that to help you shorter your repayment period to save you thousand of money ? You have to work out one today.

You can invest your money in the share market, unit trust and insurance with investment elements account which can bring you with good return of income but you have to be wise in selecting lowest risk of investment with maximum benefits to meet your purpose of investing.

Remember, we want to own the house and make it become our asset and not letting other to make money out of our asset. Begin your proper planning today if you already in servicing your housing loan or you are planning to buy one. Work out a plan to achieve this and you can own your asset and not liability. 

How To Raise Children Education Fund In Smart Way?

Everything is on the rise and there is no exception to children education fee today.  Those parents who have college bound children will know it better because they have done the research and comparing colleges or universities tuition fees. The tuition fee will continue to rise in the coming years and therefore, parents today has to do a proper education planning at the early stage of their children. 

There are several ways to fund the education. The most commonly methods are as below:
1) To apply study loan from financial institution, government loan or colleges/universities financing scheme.
2) For those who scored excellent grade during school academic can apply for scholarship either to the Private organisation or to Government.
3) Saving in the bank account is the most traditional way. You can accumulate the saving in the saving account or Fixed Deposit account. Both will bring the interest to your account.
4) Saving in the Unit Trust can be another effective way to accumulate interest . It will show good sum of money over a long period of time.
5) Insurance Education Fund is also another excellent way to save because of the high return of cash value.

Parents are aware of all this methods but they might lack of the knowledge to select the best financial tools to help them raising the fund for their children in the education fund. Most of the methods are emphasizing on the saving rather than raising the fund effectively. Let ask a question to ourselves, what if we fall sick during the saving period and not able to generate income ? What if some thing happen to me ? What if I'm in financial difficulty ? Worse still , what if I die today ? The college or universities dreams of your children will shattered.

I always give consultation to parents especially young couple who has children below 5 years old to consider Education Plan from Insurance company. I'm not pushing for Insurance here but to educate all the parents how to raise your children fund in smart way. Parents should use insurance policy as their fund raising vehicle because insurance company provide the most benefits compare to other methods mention above. The return is also one of the highest in term of interest. The most beautiful part of Insurance Educational Plan can add in with Payor Income Rider which mean if anything happen to the payor of this education plan account like death, become permanent disabled or diagnosed with dread diseases, the insurance company will continue to save for your children until maturity of the agreement period. Children can still have the college fund to proceed with higher education no matter what happen to the parents.

When come to money related matters, we got to be smart dealing with it and listen to the advise from the expert to select the best method. All methods are good but we want the best one to help us in achieving our goals.