Book's Gist: Millionaires are From a Different Planet

Steps
1. Clear credit card or high interest debts

2. Create a Dam - Reserves Fund - 6 mths parked in short term Fixed Deposit or Amanah Saham

3. Get right Insurance
- Life + critical illness + disability insured = money maker, NOT dependents, + <= 10% of net pay
- buy term only unless circumstances
- for coverage NOT forced savings
- Mortgage - MRTA / added term life
- House Owner for building
- House Contents for contents

4. Quicker settlement of Mortgage
- pay extra @ time
- pay fortnightly
- pay lump sum when you come into extra $
- renegotiate interest
- refinance if interest drops >=2%

5. Asset Allocation
- Re-evaluate every 3 to 6 months
- Long Term - Put X% in Growth Vehicles like Equities / Properties & rest in FD
X=100 to 125 LESS Age
- 90% ROI is determined by asset allocation

6. Investment Q & A
- What is the PURPOSE of this investment?
- When to EXIT this investment?
- Can my RESOURCE handle this investment?
- Can I live with the RISK involved?

7. Property
- >=20% Downpayment
- Location with jobs + shops + amenities eg. Bangsar SubangJaya BandarUtama
- House for resale & Apartment for rent
- Only from reliable developers OR ready made
- Cyclicle prices - down 1985 1997
- IF buying frenzy WAIT for downturn to buy
- Banks will provide max 33% of income BUT U should take <= 25% BEST < 20%
- Properties Rented Out - U can deduct interest from income tax
- Can write off expenses like business when >=4 rental residential OR 2 residential + 1 shoplot OR 2 shoplots

8. Cars - 2nd hand + <=2years loan + cash is best

9. Stuff - the more useless purchase try buying with cash OR FORGET IT