5 Ways To Invest Your Ang Pow Money 2024

5 Ways To Invest Your Ang Pow Money 2024



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As this year most of us are locked down and not allow to visit our relative outside the district that we are staying. Therefore it is important if manage the Ang Pow money well and it will create more value for us in long run. Below are the five ways that will help you to generate more values for you.


1 - Payoff Your Credit Card


One of the easiest way on money management is pay off your credit card as it does not require any technical investment skill. The earlier you pay off your credit card outstanding balance, the better your credit rating will be. It will help you on your loan application in the future.

Malaysia credit card interest rate averagely in the range of 15% to 18% per annual on the outstanding balances. Says for example, if you have RM1,000 outstanding balance, assuming we are taking 15% as an assumption of the interest charges of the credit card, you will eventually save RM150 from the interest. Whatever you save is whatever you gain.

Therefore if you still have some credit card outstanding balance, this should be the first option for you to consider how to make good use of the Ang Pow money. It will be the great news if you do not have any outstanding balance with your credit card, then we can explore others investment instruments next.

2 - Invest In Yourself


Before we allocate our hard earn money into any investment instrument, one of the best investment is invest in ourselves as this investment does not come with any risk of losing the capital. Now a day, learning new skills come from many different channels and many of them are free or with minimum fees. I always believe invest in yourself will always be the best investment in the world.

I personally like to read books as in my early days of learning, self-help books are common. The “Rich Dad Poor Dad” by Robert T Kiyosaki is the book that change my entire life. This book not only teach me on personal finance skills and let me fully understand the power of passive income. It also change my perception that solely going to school and get our degree is not the end of the learning process yet. There are many very useful skills and knowledges that did not teach in school and university.

Beside books, now we can even learn from the web, online seminar, friends or mentor who has been very successful in the area that we wish to pick up the skill and many more.

It depends on your preference, usually the channel that we need to pay are the more structured way to learn. Just like books or seminar, they are structured into chapter by chapter or topic by topic in a proper sequence way. So invest a small amount of money will save you lots of time to research job. If you do not want to spend that kind of money, you probably will still be able to do some research online. This will save you some money but be prepared to allocate some time on it.

Once you have pick up the correct skills, apply the skill to improve your investment and slowly increase your wealth.

3 - Invest In Money Market Fund


Money market fund is unit trust fund that invested into highly liquid short term instruments. These instrument almost cash equivalent like short term Malaysia Government Security (MGS) or fixed deposit. Therefore it offer stable income return.

The advantage of money market fund has no lock in period and most of the money market fund in Malaysia has no investment fees. The investor can invest the short term money into money market fund and can cash out anytime they want.

Money market fund is one of the lowest risk of fund in unit trust industry. Money market fund suitable for investor who do not like volatility and only have very short investment interval. This is one of the best tools for cash management tools.

If you have not decided when you will need to use your Ang Pow money, you can temporary invest into this money market fund to earn some interest income as the interest is calculated daily.

4 - Invest Into Bond Fund


Bond Fund also be considered as Fixed Income. If you want to gain slightly better return than Money Market Fund and still do not wish to take high volatility of the market, Bond fund will be suitable for allocate your Ang Pow money into but be prepare to have slightly longer investment interval than money market fund. Advisable investment interval from 3 to 5 years for Bond Fund investment.

Generally Bond Fund is sensitive to bank interest rate. When interest rate increase, bond fund decline. The reverse applies when bank interest rate fall. Bond Fund will invest in corporate bond and Government Bond.

5 - Invest Into Equity Fund


Generally equity fund is investing in stocks. It is higher return compare to money market fund and bond fund. With higher return always come with higher risk.

If you are still young and you have more time, you can consider allocate your Ang Pow money into equity fund. For equity fund, it is advisable to allocate 10 years and above as Equity fund will fluctuate more compare to Bond and Money market fund. In fact the longer you hold for equity, the better it is. This is because your investments like stocks produce earning. Those earning get reinvested and can earn even more. This is what we called the Power of Compounding.

Conclusion


Regardless of what investment instrument we use, it require time to grow. It is important we let our money to work hard for us and outperform the inflation rate so that we can maintain the buying power in the future.

If you are a parent, it is very good we teach our children on investment since young. This will make them understand that besides working hard for money, we can also make the money work hard for us through investment. If you still young and at teenage age, it is good to start investment since young as investment takes time to grow.

If you are still not confidence on any investment instrument, start with invest in yourself first before allocate the hard earn money into any investment instrument. Alternative you can always seek the help of Financial Advisor. With the right resources, creating wealth can be very powerful over the long period of time with the Power of Compounding.

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generation you keep it for.” – Robert T Kiyosaki.





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