Survey on Savings

[meiteoh 0]

Ideally, your EPF is a back-up and should not be your only nest egg. It's like putting all your eggs in one basket. You should have another separate account for savings and even some investments which you can liquidate into cash if the need arises like property.

Like Fluene said, children have their own things to take care of, especially if they have their own family and children. My parents don't expect us to give them money and such and they have not just their EPF but other sources of income even though my dad is retired and my mum works part-time. Sometimes they even have money to spare to treat themselves to a holiday OR to give away to their grandkids (like my HB's grandmother and so forth).

Emily, I want to have children because I want companionship when I'm old (to a certain degree) NOT because I want someone to give me money, because I want to move onto the next stage of my life NOT because I want to depend on someone for handouts. Being old doesn't mean I'm like a beggar or handicapped so much so that I cannot have a source of income of my own...have to ask or insist that my children give me money. Like my parents say, give or not is up to the child - as parents, we will not ask like beggars. We are still independent and have our own means of surviving/income.

Fluene, not all countries offer free education. And if you do have citizenship and such, it means you'll need to pay taxes (which is way more than in Malaysia) and such, so technically, it's not free.

What my parents did was invest in property and turned that into cash when I needed money for my degree and masters. Same went with my brother as well. Today, they still have two houses to their name and a shophouse as well (shared with my bro). The shophouse generates income for my mum every month and they are planning to sell one of the houses but it's not a sure thing yet.

[Meringue 0]

Property seems to be the way to go, isn't it:D

My parents did pretty much the same thing. They didn't have to pay much for my studies (maybe RM20k or so for 2 years in M'sia, rest self-financed) but they paid quite a bit for my brother as he went to Australia during the 1997 crisis. Unfortunately, my brother's kind off an idiot- kacang lupakan kulit. He migrated to Australia recently (of course parents had to give him about RM70k present which is a bit babi because I didn't take money from them because I wanted them to keep it for their old age.. They pulak go and give some to the idiot brother! Should've taken it after all!), almost never sends messages or emails. When he was in M'sia, he didn't give parents money either. That means, if the money runs out when they're old, the responsibility would be on me. I don't mind at all because I truly think my parents are wonderful people and have always been there for us....but I think it hurts them that my brother is like that (although if I EVER say anything, they'll defend him bengang). He is my brother but I don't like him as a person.

I just want them to enjoy life while they can- go on holidays anytime they want and so on.. Instead, my dad still works part-time and they both try to save (although I admit they're visiting me in Europe and the idiot brother in Australia this year but in general, they do not travel that much- only locally or sometimes to neighbouring countries) JUST IN CASE either gets very ill (hospital bills) or in case the money totally runs out (As you know, EPF can only last 10 years or so, they only have the house they live in -which I don't think they ever want to move out from-, an apartment and some shared shophouses in some not-so-good areas)...

Sorry lah..had to rant a bit. I feel this horrible sense of guilt because I'm not with them and because I'd like them to be able to do whatever they want now.

[bright*star 0]

sometimes i really admire my dad coz if he did not finance 4 children, he is a millionaire today.

i really have to bow to my dad when it comes to saving money.

[meiteoh 0]

Mer, I can understand your woes about being far away from home and especially with a sibling who can't care less. Same boat here, remember? I feel guilty because I am unable to send money back OR take care of them whereas my bro has all the opportunity in the world but hardly carries it out. Some people may say that I'm being hard on him because he's always busy at work but to me, what's more important is family NOT the office irrespective of how naggy or annoying one's parents may be.

In my case, my parents are advocates of government hospitals and my dad was also a civil servant so a big bonus for him whenever he or my mum needs medical treatment. It's free.

Oh, since your dad is working part-time and all, do make sure that he pays SOSCO as well because if anything happens to him at the office or even when he's on his way to/back from work, SOSCO will cover the medical costs and pay him a "pension" should he not be able to work. My aunt had a stroke at the office and was left paralysed on her right/left side (I can't remember). SOSCO paid for her medical bills as well as gives her like 2.5K every month.

I try to emulate my parents when it comes to saving money - don't spend unnecessarily, invest in stable options (property is usually a traditional and good choice) and explore alternative sources of income if you're a homemaker (small biz, etc, etc). I absolutely admire my HB's grandfather who bought or held onto his properties during bad times when everyone was busy selling them. Being a banker, he knew what to invest in and such and he chose houses. As a result, my HB's grandma who passed away recently lived quite comfortably (not to lavishly but within means being a lady who survived two World Wars - she could even afford to give my HB and SIL each 35K € as gifts) and left behind a house in South France, the family home (which is two properties in the same village), and one in Lyon - there are others I think but I never ask for details (you know why la!). When she last visited the bank last year, the bank officer told her that her account had reached its limit and they would have to open another account for her to keep her money - she had too much of it!!!!! He even told her to start giving some away!

Before you think she had some cushy job and such, no, my HB's grandma was a school teacher/homemaker, didn't come from a rich family and neither was my HB's grandfather. They just had good financial sense.

[hso 0]

Yah EPF definitely not enough- can't even support yourself until you die..

Is it even possible to save much more if you also have to budget RM200k for tertiary education per child 0_0. If have 2 children, must save RM400 000 just for uni. I think it's really hard especially when you have to pay for tuition (in secondary and maybe primary school) and all that...

How much would you all budget for education per child?

Hi Meringue, today's average tertiary education cost for 4-year college is about RM$80k (local private colleges/uni in Malaysia). However, if your child needs the money in 18 years from now (assuming a new born baby), with estimated inflation rate of 3.5%, the future education cost will become around RM$150k. If the inflation is higher, it will be more.... I think your RM$200k projection is a good estimation.

Check out some more details on education planning at "Can you afford to send your child to college? "

[Meringue 0]

My parents were also civil servants so they have the 'privilege' of free medical care at public hospitals. However, as can be expected (which is the case even in wealthy countries such as The Netherlands), free means the system is often overloaded and cannot cater to non-urgent (although not necessarily less serious) complaints. That means that if you need to clear a blocked artery (which could lead to a heart attack) or to make sure you don't become blind due to cataracts, you might have to wait 2 years. Also, my aunt had cancer and had a biopsy. It is a very painful procedure and whoever it was who took it didn't take enough so there were no results to be seen which is bad enough but then the hospital said, aih no need to take again lah so til now, she doesn't know if the cancer is back or not. Only option: private hospital.

Also, if you have been to a public hospital, it can be difficult to rest or sleep when you're in a room of 6 people (who could be in pain or wailing or something) so IF it is affordable, I would prefer a private hospital over a public hospital. Also, patients tend to get discharged quite quickly due to the lack of beds.

That is not to say private hospitals are better in everything- I am aware that public hospitals have better equipment and the latest technology but as everything in life, free things mean the quality per person is not as high as it could be (which I understand and I do believe healthcare is a necessity so I have no problems contributing taxes to such a system).

I guess I'm glad that at least, there IS such a system in Malaysia.

Property is definitely not the way to go in The Netherlands. The taxes on 2nd homes are exceedingly high (so much so, you will lose money as 2nd homes whether in The Netherlands or abroad are considered a ' luxury' ). Also, rent controls mean there is no way you can make money (unless you do it illegally but then if the tenant complaints, habislah). I think I have to do some research about what is the best way to invest your money in NL. Most people just stuff it into a bank account (if they have savings at all) but maybe there are some more lucrative ways;)

[meiteoh 0]

Mer, oh, didn't know you had these experiences before.

My parents have no complaints - my mum went for a biopsy at UMMC when she discovered a lump in her breasts through her annual mammogram check-up and it was done well. My dad went in for a major surgery when he fell and cut his arm on glass at his former workplace - the glass piece severed some nerves and muscles affecting his hand and the surgeons did a very good job with the "repair". As with my heart surgery, I have no complaints - pre (add nearly 20 years of annual - if not more - check-ups, X-rays and etc) and post. Right after ICU, I was placed in a two person bedroom for a few days, then my roommate got discharged and I was placed in a four person ward just outside the room. And sleep-wise, definitely no complaints there. The nurses are very strict about maintaining a comfortable and restful environment.

Technically it's not free (coz if you pay taxes back at home, it goes to all these things)...just cheaper. :p I'll definitely let you know how it is over here when I give birth but so far, my experience is mixed. Somehow the doctors are not very informative but it could just be the hospital that I'm going to.

Yeah, property is too ex here in Switzerland (double taxes and etc - most people don't own the houses they live in, don't ask) so we just save as much as we can in the form of fixed deposit (in France where the rates are much higher) and our savings/active accounts here in Switzerland.

Right now, our main concern is looking long term and juggling current expenses on top of things like saving for the future (this includes egg nest and treats like holidays and such) and our kids as well as trying to channel my parents to spend their money on less trivial things. My mum doesn't help the situation by being naive - when I suggested that it's better for us to spend her money on educational items instead of baby clothes, she remarked "I thought education is free, why need to spend some more?".

[Meringue 0]

Alamak, now I know why my parents are most worried about healthcare when they're old. Free healthcare is only available whilst you're still working OR if you opted for the pension system. Unfortunately, my parents opted for EPF. Won't deny that the care offered (was never really ill- just the normal complaints) by the government when I was covered was good (since you're from the Seapark area, you might be familiar with Dr. Yap and Chong).

The cataract thing happened to my dad (because public hospitals are still cheaper even if it's not free)- he got it done at the Tun Hussein Onn (semi-govt) Eye Hospital. It went well. It's RM3000 per eye (no hospital stay). My dad also needed very minor heart surgery at one point but luckily, my brother happened to work at UM at that time and parents get free healthcare too (so see, some cool perks when you work for the govt ^^). It would have cost RM1700 plus RM7000 per balloon (if necessary). Private hospital: RM15 000. I guess the point is more of WHAT IF, saving for rainy day and what not haih.

I have more stories (all people I know very well):

A woman needed cataract surgery. It was messed up so bad that she needed a cornea transplant at a private hospital.

A man was knocked down by a motorycle. He broke his leg. The doctor said he'd need to wait 10 days before they can attend to his leg- not for medical reasons but because he has to wait his turn. He is a pensioner (so free healthcare). As he's very well-to-do, he transferred to a private hospital. The bill: RM45 000 (it would have been RM60 000 but he's good friends with one of the surgeons).

These are all minor things BUT what if you need major surgery which requires a long stay at the hospital?

Wah ok, I don't even want to think about it. I am so glad I have health insurance.

Are you giving birth in Switzerland or Malaysia??

P/S: I'm glad you and your parents had good experiences (and I don't mean that in a sacarstic way!).

[meiteoh 0]

Yeah, can't say that they are all good - we've been luckily and I always count my blessings.

Aiya, dun think about the bad stuff la. Me? Too late for me to give birth in Malaysia - am too heavy and all to fly back so Switzerland it'll be.

Aiks...sounds like we're getting out of topic about hospitals and such.

[fluene 0]

May I add that older generation, especially those not so educated ones (no offence, my dad is one of them) measure how filial their children are by the amount of $$$ given to them.

[welwong 0]

How true! My parents aren't that calculative although my mum does ask me for pocket money as she's a student and no longer has any income (how the tables have turned!) lol

My grandparents love comparing my cousin and me though... unfortunately for my cousin I earn more and can give a bit more to my mum compared to her... it's embarassing to say the least, and they think nothing of bringing up the topic everytime we're around for CNY in front of all the relatives... it makes the atmosphere so uncomfortable.

[Meringue 0]

Quite true. My parents have never asked but if I do, they would be happy. I remember giving them a few thousand rm last year and they were like ya, ok thanks but then later.... with the extended family... adalah cakap something. Let's start another topic ! If not, this one will terpesong

[margarita90 0]

even rm few k per year is not enough? wow i think that's a very big amount already.

[sweatangle 0]

even rm few k per year is not enough? wow i think that's a very big amount already.

We can always start with a comfortable amount first. A discipline saving plan will always help us accumulative and create wealth. Save early and retire happy :)

If you have any enquiries on saving plan, pls feel free to ask :)

[jennpsw 0]

I think this is really an interesting topic. Admire those who really make a big effort in savings. Feel like many people really look down the power of saving. All in mind is just investment.

Flash back the time when me and my BF save hard to buy house. I'm like "forcing" him to contribute monthly 1/3 of his salary to our saving account. At the beginning he was so tortured, as with the limited of $$ left from his income, it is quite hard for him to venture his hobby more - he is a toy figure collector (a figure would averagely cost him RM500!) But luckily he is very nice to compromise this target with me. He agreed to save 1/3 of his income and so do I.

One fine day, we really saved up to buy our house together with the money that we saved. And he came to me, thanking me sincerely and said: "Luckily you made this action, and from it I gained 2 things." I asked him which 2 things? He said:"No. 1, we own a house together and the $ is enough for us to pay down payment and do renovation, and most importantly it is solely our $$ without getting help from others" and "No. 2, with the limited amount of $$ left monthly, I managed to make myself to understand the importance to earn more $$" That is because, despite having lesser $$ to buy his favourite toy figure, he didn't give up buying it. And better he went to find ways to earn to buy the figure he likes. e.g. Trading toys in Ebay, writing reviews for the new release toys, etc..

I am happy for who we are. Just that all the $$ in our account are all used up for our house. We got to start from 0 again. But it is ok. From it, we understand that saving is really important and at the same time do not forget to explore ways to expand our income.