Important people in our life

Apart from your family and your loved one, there are a few important people in your life could help you succeed in your life and financially.

These VIP are known as accountants, brokers which include property or equity brokers, bankers, solicitors, insurance agents and tax advisors.

If you could not find a good accountant, it is better for you to be the one. After all, it is best to know your own financial situation rather than leave it to accountants! Plus, it save your money if your don't hire one.

If you are running your own business or you are holding a high position in corporate life, you certainly need a good broker to get the best deal for you, in order for your investment to grow. Unless you are the one who do your own research and you are the one who make the deal. Again, it save you broker fees!

Sometimes you need a banker to advise you what is the latest trend in the banking industry. Interest rate changes, latest deposit rate or borrowing rate etc. A banker can help to make your money work harder.

It is a good idea to have a trusted solicitor to help you in advising all the legal matters. Not that advising on how to run away from tax man; but at least to help in speeding up the legal process in your business or buying and selling investment properties. 

Whether are you rich or not, we think it is a good to have an insurance agent in providing services and advices on protecting your life and your assets. From advising what is the appropriate insurance package to have in different stages of life and helping in making claims whenever we need it. We definitely need this person's help!

And finally, everyone wish to have more money in their account rather than donating them to the government- the tax department! If you have a tax advisor, he might be able to help you to save some money so you have extra allowances for holiday!

These are the people we think are important in helping us succeed in our life financially. However, the most important person still "us" who make the decision and execution!

Simple steps to become a millionaire

We've read articles about how to become a millionaire. We have real life examples of millionaire friends and relatives advices of not only work hard and work smart; effectively manage our finance is also crucial to maintain a millionaire lifestyle. Below are a few tips for sharing:

1. Set a weekly or monthly spending budget

Is that necessary to set a spending budget? You will be surprised to find out a healthy spending budget will save you on unnecessary spending. In long run, the saving could turn into a budget for your car or even a house. 

2. Track and record daily expenses

Sounds like a complicated job? It is always hard to begin with. But once you've started recording daily expenses neatly and continue with discipline, you can easily summarise them into a monthly expenses and from here you know where your money is spent.

3. Pay yourself first

Whenever the wage is out and paid into your bank account, always remember to set a portion of savings aside before you start using the rest of the money.

4. Saving for a purpose

If saving without a purpose, it is easy to use up the money once you see the numbers in the bank account. Saving for a purpose, such as for a new house, for higher education or to invest etc. Saving for a purpose will remind us not to use up the fund easily, unless for emergency.

5. Insurance for protection

If you think paying for an insurance is unnecessary, please think again. Although paying for insurance is like an expenses, the money is flowing out from your bank account. But then, when you need to make a claim from the insurance company, you would be grateful for having them.

6. Set up an emergency fund

Sometimes bad things happen in life. Losing a job, need a big expenses for medical treatment etc. It is wise to have at least 6 months spending expenses as an emergency fund for backup, just in case you are unable to work for a few weeks or months.

7. Funds allocation

Once saving and emergency fund is build up, allocate the extra fund you have for investment purpose. Buying a property, invest in share market or other potential business etc.

8. Start invest and grow the assets

It is never too early to start invest and grow your assets. It takes patience, time and effort to invest and let the assets appreciate in value. Your first investment might not make money; or you might fall into investment trap. Therefore it is advised to invest as early as possible. Learn from mistakes and accumulate the experience.

9. Wealth management

When your net worth reaches a certain amount; or your cash and assets had reached a certain level, it is time to manage your wealth. Learn how to protect your assets, manage your finance and cash flow as well as continue to grow the assets. 

10. Increase cash and asset, reduce debt

When your earning power is great, it is also translate into a higher spending power. Effectively using the high earning power to increase your cash flow and assets; try your best to reduce bad debt is the way to make your money grow more.

11. Spend within your means

It is not easy to spend frugally especially you know how rich you are. It requires discipline to spend within your means and live a down to earth lifestyle.

12. Retirement planning

Just like saving and investing, retirement planning is never too early to think ahead. While planning for your expected retirement lifestyles, it is always a good idea to plan it financially too.

13. Financial education

There is no way to execute Step 1-Step 12 without proper financial education. Read up on financial magazines and personal finance books; attending seminars and talking to people you know etc. These are the ways to increase your financial knowledge. Never give up if you fail and keep learning from the lessons and investment mistakes.

14. Charity

It is a blessings if you able to help the needy financially. If not financially, donation in terms of material or spend time and effort for charity work.

15. Don't forget to have fun

There is no point to have loads of money in your account but feeling empty or unhappy in your life. What is the point of working so hard to make so much money? Don't forget to have fun, enjoy life and spend the money when necessary. At the end of the day, there is no point having loads of money leaving for your loves one, but you are the one who don't use them.

Conclusion: Sounds boring? If these are the steps and actions can guarantee a financial free and stress free lifestyle, no harm in trying. No matter what is your occupation and how big is your earning power, we believe live frugally, spend wisely, invest smartly and manage our finance efficiently are keys to maintain a healthy and wealthy millionaire lifestyle. And also, enjoy your life and have fun.

What is your net worth?

What is your net worth? According to Google's definition, net worth is defined as assets minus liabilities. For an individual, it represents the properties owned, less any debt the person has. For a company, net worth is the value of the company.

Is that a good news if an individual has no debt? From the accounting point of view, of course! It means you have assets or cash and without debt, this shows the net worth is positive.

But to a Bank's point of view, an individual with positive net worth is risky to deal business with. The bank is less likely to borrow money to an individual without loan repayment history and therefore it is not easy for the individual to borrow money for business expansion or purchase property.

If you were given a choice, do you want to be the individual who is free of debt or full of bank debt? 

35 things to do before the age of 35

We were cleaning our home office few days ago and we found a note written '35 things to do before the age of 35'. A note written few years back when we just started J&M Investments Portfolio.

Becoming a millionaire, owned multiple passive income, travel the world, run a charity fund, having our own kids etc. These could be the lists everyone is dreaming...the list goes on and on. Of course, we couldn't thought of 35 things to do. In fact, we only have 19 items on the lists and we had achieved quite a lot these few years before our deadline- the age of 35 which is in 12 months! 

Looking back, it is not how ambitious we were writing these goals. Setting reasonable and achievable goals within certain time frame let us foresee our futures; on and off looking at and reviewing what we wrote push us go further along the journey we wanted to travel. At the end of the day, it is not the goals that make us proud, it is the journey we went through that shaped us who we are today.

When the deadline reached, it will be a time for us to reset our new goals, new future and begin a new journey. No matter this is a journey towards a life goals, career goals or financial goals, we are trying our best to enjoy the journey, welcome all the obstacles and celebrate all the happiness and winnings.

Have you set your goals? If not, it is not too late to start now.

How many accounts do you have?

We couldn't remember the title and the author of the book we read a decade ago that inspired us to start our investment portfolio. All we do remember is the various accounts the author asked us to set up.

1. Everyday account 
This is the account that involves everyday transactions where the income is deposited into and the money is out to pay bills and expenses.

2. Savings account
No matter you are a fresh graduate just landed a job or an adult that is in workforce for quite some time, it is important to have the habits of saving a small proportion of your income. The best way is to have a separate saving account from everyday account so you can track how much money you have accumulated. 

3. Rainy day account

Also known as emergency account. No one foresees what will happen to us. We might get retrenched one day or we might be sick or involved in accidents. Rainy day account is there for us to survive during disaster days. 

4. Investment account
If we afford to have savings and rainy day accounts, why not increase our capital to set up an investment account. The purpose of investment account is to generate more income. It could be used to buy stocks or properties; start a business if you have a good business idea or business partner. 

5. Education account
Even you are loaded with cash but without proper knowledge and financial management, the rate of spending could be faster than the rate of making money. Therefore, it is advised to have an education account; spend money on buying reading materials or attending seminars, the result could change our life.

6. Charity account
We don't need to be Bill Gates or Warren Buffett to have a charity account. Even as an ordinary person, we can afford to do charity. Donation in terms of money or materials to the needy; spend time and effort in charity works. This is to remind ourselves to be grateful of our life. 

It's amazing how this article actually changed our life. Not only we have the above accounts, we have more than that! All we need to do is put in some effort and take it easy, step by step.

What's next in the market?

The slowing economy in China, negative interest rate in Japan and some European Countries, multiyear low oil price, strengthened US dollar and emerging countries currency crisis, plummeting stock price and the fear of property bubbles etc...

How are these issues driven the economy and market? What are the assets shall we as an investors look into? Is it better to invest in stable dividend payout REITs (Real Estate Investment Trusts) or possible greater return sharemarket at this juncture? Shall we remain our portfolio as it is or make changes to stay defensive or aggressive?

Each individual has different personality, risk profile and risk appetite. It is a good idea to sit down and think about our financial circumstances, create a goal, work out a financial plan and act according to the plan. We'll be surprised to see how the action we take today affect our future life...

We love the saying of "You are here today because of the decision you made in the past. Your future will depends on the decision and action you made today." 

The end of holiday

We were away for three weeks during CNY break. Not much time and effort spent in the market; indeed it was a very good break to refresh our mind and soul.

The good thing about our job is, we can work wherever we go so long there is internet connection. We can invest in whatever we think it is worth to buy so long it is worth the value.

We relaxed for the past few weeks, drank a lot of good and value wines; review the journey J&M had come along and we are ready to share a few stories of successful financial management in the future.

We will work hard in the year of monkey, spend frugally and invest wisely. This is the motto of J&M towards a successful financial journey.

5 reasons Malaysians' life is more difficult in 2016

The year of 2016 could be a challenging year for stock market investors, as the global market started in a panic sell-off from the first trading day of the year. For Malaysians, it could also be a tough year as the following factors are affecting the daily life of most Malaysians.

1. Rising cost of living

This is not a new thing! Since the GST implementation started in April 2015, all Malaysians are facing this issue. More expensive food from local supermarket and dining out; transportation, daily use products, clothing, medical bills and medicine. Even with the oil price tumbled to US$30; there is no reduction in our petrol price.

2. Depreciated Ringgit

Normally when oil price drop, Malaysians should entitled a cheaper petrol price. However, with US$1 equivalent to RM4.30, we are still paying expensive petrol. The Ringgit is depreciated not only against USD, but against major currencies too. As a result, imported goods are more expensive and travelling abroad, we are paying extra overseas expenses as our Ringgit is very weak. Unless you are an exporter, you will benefit from the weak Ringgit. The glove manufacturers are the biggest winner!

3. Difficulty in applying loan

Not only China is facing a slower economy; in Malaysia, we can feel the declining stock market and economy is moving in a slower pace after GST implementation last year. Banks are tightening the loan approval especially for the housing loan.

4. Stock market crash

Unless you do not invest or speculate in the local stock market. The sell-off since last year is causing most Malaysians financially stranded and mentally drain.

5. Stagnant property market

Malaysia's property price appreciated dramatically since 2008, effects of cheap money flooding around the world. During the past few years, transactions increased no matter is brand new or sub-sale properties. Till now, buyers think it is too pricey to buy and looking for negotiation whereas sellers unwilling to let go at a cheaper price. Plus the tightening bank loan approval, this had become an unhealthy phenomenon and is affecting young couples especially those who just started a family.

The above might not affect all Malaysians, but if it does; we hope there is a solution for every problems. Sit down and figure out the priorities, workout a financial plan and act according to the plan.

J&M Investing mistakes

When we looked at what we achieved today, especially this year, we made good money.

Before we came to this stage, we actually paid a lot of tuition fees to learn about the market; lost money in trading and along the way learn about trading vs investing, as well as some life experiences.

There are investing mistakes we could have avoided and not losing money. But, these are the mistakes we made and we will remember forever in order not to repeat again. We think it is alright to lose money, but not okay to lose confidence. Losing confidence is the worst thing can happen as this will affect our judgement and action towards investing decision in the future. Losing confidence might cause us not having the chance to see ourselves moving into a successful financial journey.

What had we done so badly in the past that we have to remember not to repeat again?

1. No knowing what we invest or speculate

Before we invest or speculate in a stocks, it is important to find out about the company's background and work out the investing capital. This is to reduce the risk of failed investment and capital protection. If we are lazy to do this simple homework, why not we just spend the money or donate to the needy.

2. No exit plan when we have paper profit

Very often when we see paper profit in our portfolio, our greed kicked in and made us thought we will never lose money. When we are not cautious about the risk we are facing or not alert about protecting our profit, it is the most dangerous time as the winnings could turn sour.

3. Invest in the stocks we previously made money

Never fall in love with our investment especially with those we had made money previously! Because of the decision we made, picking the right stock at the right time, we might have the thought of we could made money again with the same stocks. No doubt, we might made money again. But sometimes it might not be the case. When the trend is over, jumping into the stocks we previously made money could made us lose more than what we made.

4. Jump into the market because afraid to lose the trade

It is not difficult to made small money, but big profit? It requires hard work, patience, timing and a bit of luck. Just because we afraid of missing the chance to make money and jump into the market; chances are we will lose money...

5. Invest or trade with correct mindset

Correct mindset is necessary when we are trading or investing. Sometimes we mixed up between trading and investing and therefore we could be very headache when market is against us. Trading usually is a short time frame; if we are at a wrong position, we need to cut our losses in order to protect our capital. Investing is a longer time frame and we need to handle the volatility before we see the result. If we don't have the correct mindset, our decision and action can put our capital in a dangerous position.

6. No emotional trading or investing

Emotional came in normally when we see the market is in our favour, but we did not act according to our plan. Just like Blackmores, if we don't calm ourselves and rush in to buy the shares at any price anytime, we wouldn't know when is the trend over.

7. Following tips

With our networking, it is possible to get investing tips anytime. BUT, how many tips can we follow and how accurate are there? By the time it reached us, is that the beginning or the end of the trend? It is no harm to follow the tips, provided we do our own research.

Conclusion: These are the investing mistakes J&M did in the past. These can be the common mistakes most investors made too. It is not a big deal, but if recognising them can help us improve ourselves and our financial situation, why not?

Performance Review

No matter what happen to the market in the coming week till last day of the year, we are going to take a break from the market. We think we have achieved quite a lot this year, so we deserved a break until when we are ready.

We always believe we need to rest, switch off from the market and come back again with a fresh mind. Of course, if market rally and our portfolio have a nice paper profit, we don't mind to lock in the profit; and if market drops badly, which we think unlikely, we will continue bargain hunting.

To sum up the year of 2015, we enjoyed the roller coaster ride. During the downtrend, we've collected some undervalue stocks which we think need to keep for months or years. Meanwhile, we also collected some blue chip and REITS, attracted by their dividend payout.

When market rally, we sold our holdings; keep the cash and turn it into other investments. So far, we are quite happy with the result and hopefully we'll perform better in the coming years.

Our portfolio's result year to date:

Australia: +25%

Hong Kong: +14%

Malaysia: +5.5%

REITS: +4%

The above result does not include the dividend and interest received throughout the year. As our Ringgit had depreciated quite badly against other currencies, to us it's a bonus since our portfolio consists of Australian Dollar, Japanese Yen, Hong Kong and Singapore dollar, not to mention Chinese Yuan which just included into SDR.

We'll remain our currencies portfolio for the time being. Will increase our holdings if Ringgit strengthened; otherwise, we'll travel to these destinations to spend the currencies.

The Best Investment

We think the best investments we made so far, is not from stocks, futures, properties, bonds or business...In fact, the best investment we made is invest on ourselves.

We could not have made money without proper financial knowledge. We could have made lots of mistakes and incurred heavy financial losses if we did not educate ourselves. We spent lots of time and effort in reading, researching, learning from successful people and implementing our strategy. Failed, start all over again and repeat all the processes...

Different financial instrument comes in handy at different stage of financial cycle. Without educating ourselves with appropriate risk management and know how and what should do, we could not have come so far along the financial journey.

Though we are not making billions right now, we are glad we are wealthy, living peacefully and happily, and most importantly, enjoying what we are doing.

The best investments is not invest to generate more money, it is to invest in ourselves, be healthy and happy.

Rich Dad Poor Dad

Rich Dad Poor Dad was written by Robert Kiyosaki and was published in year 2000. It was one of the best selling book talks about personal finance and investing. In real life, there is always Rich Dad and Poor Dad surrounding us. Poor Dad emphasizes on the importance of education and secure your life with a safe and stable job while Rich Dad sees the importance of investment and financial management.

The formation of J&M Investments partly was influenced by the real life of the Rich Dad and Poor Dad we witnessed personally. Rich Dad retired 20 years ago and up until today he has no financial issue. He doesn't rely on the funding from social security or money given by his children and yet he manage to travel overseas very often. He enjoys the financial and time freedom by doing what he likes without working from any company. 

On the other hand, Poor Dad retired 10 years ago from the company he had worked for more than 20 years. Unfortunately, due to miss management of his savings and retirement funds; he had enjoyed the retirement life for only 2 years, after that was involved in a financial disaster. 

You think Rich Dad Poor Dad only happens in the book Robert Kiyosaki wrote? Nah..It happens in our real life too. Because of Poor Dad, we had the opportunity to study hard, excel in our education and landed a high income job. And because of Rich Dad, we foresee our future living in financial freedom, enjoy spending time with our love one and enjoy doing what we love to. 

We think we are on the right path, but still long way from our goal and destination. Investment is a life long journey, we need to learn as we go; learn from our investment mistakes and celebrate our winnings. Learn from the pasts and enjoy the ups and downs.