Bike Maintenance

 

 

WK Motorsports in JB

For students with the responsibility of having a bike, maintenance can sometimes be an issue due to the costs involved. Besides, the bike shops in Singapore are also not making things easier by pricing things ridiculously.

Due to high costs(external) and bad financial planning(internal), I have come across a couple of my friends and also others who would continue riding with worn out tyres, brakes that are not working as they should and also crucial parts which are faulty.

Personally, I think by neglecting the maintenance needed might cost them much more(an arm or a leg?) if something were to happen due to their ignorance. As for myself, I definitely spare no expense when it comes to the maintenance for my bike. But of course, I do it frugally by having major maintenance done across the border in JB. The savings can be very significant and definitely worth the time travelling.

Anyway, I will be adding a page soon which will list down the different prices of bike maintenance in JB's "Lorong Bapok". Do google and check the bike forums on how to get there.


Regards
The Frugal Mat

My Stock Market Ride: A Foolish Investment

What would you do if you had foolishly "Buy High"? 

Well, I had purchased two lots of NeraTel at a very unattractive price in terms of my standard back in May. It was only my second stock purchase and definitely a foolish one. What am I going to do about this? Honestly, I'm not sure and have been thinking about it for quite a while.

1. The purchase price was very high and it was near the 52-week peak. Clearly, I did not have a margin of safety. A small correction can make me bleed for a little while, that's for sure.
   
   
2. Generally, the market is rather high and uncertain at the moment. A market correction in the near future seems to be expected by many, including myself. A major correction would definitely "kill" me.
   

My position in NeraTel.

Here's a confession, I did not put in much effort back then to determine the price that I would be comfortable paying for NeraTel. This was unlike my purchase of SATS where I did a lot of research. Fortunately for me, I have received dividends amounting to a total of $120 from this foolish purchase. I hope I will figure out something soon with regards to this "Buy High" issue.

Anyway, for those who are wondering why would I be worried about a market correction? Well, in this case, it is a double-edge sword for me. Being a student, my investment capital is limited. If I were to purchase more lots of NeraTel during a correction, it would mean having less capital for other opportunities. Hope that would answer your question.


Regards
The Frugal Mat

Just Passed Your Class 2B? (Students)

From what I know, majority(if not all) of the students from post-secondary institutions are currently having their vacation. This would mean many are taking the opportunity to either have fun, make some money or achieve some of their personal desires.

Based on my trips to BBDC recently, there seems to be a lot of students(overheard conversations) who were waiting for their Class 2B Traffic Police Test. After all, majority are having our vacation right now and have a lot of time for such activities.

My driving license. Yup, just passed my 2A.

Having gone through the excitement of getting a bike, I would like to share some opinion with regards to owning one as a full-time student. To be exact, the financial considerations before buying one. 

1. Type/Brand of bike 
This is important. It will affect all your future and other expenses. Please put your needs before your pride and ego. I know many youngsters prefer a sportsbike as it makes one look garang. As for me, I am riding an economical moped(kup kia) which uses less petrol. What do you expect? I just have the taste of a typical Mat. HA.. HA.. HA.. 

2. New or used
This is also an important thing to consider. Picking a new bike would mean paying a premium for the fact that it's new and reliable. Besides inflating the ego, it also gives you the peace of mind of not having to worry about any breakdown as more often than not, the bike is covered with a warranty. There is no right or wrong here. When considering the different pros and cons, do remember that you are a student!

3. Cost of bike
Well, this would of course be the main factor to consider when purchasing a bike. Can you afford it? Do you need to take that bike loan which charges 4% per annum these days? Can you pay the bike in full hard cash? Do remember that you are a student. You might have to work part-time to afford the monthly repayments if you wish to be a responsible young adult and not burden your parents. And touch wood, what if something happened and you are unable to work? Do consider every possible situation.

4. Insurance 
This will cost a lot since you are a new license holder. From what I heard, those who are below 21 years of age would be paying a lot more. Remember your choice of bike? Well, that will haunt you if you had chosen a sportsbike. The insurance premium will cost a lot more as compared to the other type of bikes. Also, if your bike is brand new, you will be "forced" to take a more comprehensive insurance plan which will definitely cost more. Back then, my insurance premium was only $9xx.

5. Maintenance
This would depend on the type and brand of bike that you choose. Some type/brand of bike will incur more costs than the others. As for me, I set a side a sum of money every month and just let it accumulate to pay for any wear and tear that would take place. Other than that, I am just paying for the change of engine oil and such when needed.  

6. Fuel consumption
Do consider the FC of your intended bike. Petrol is not cheap. Even so, you can always decrease your potential expenses by picking the bike which gives a better mileage. Also, remember to sign up for the cards at the petrol station. Those are free and you can receive discounts of up to 10%. Personally, I don't bother to ride into JB to fill up my tank. My time is worth much more than the savings plus I am riding a fuel efficient moped :P

7. Season Parking
This is a monthly recurring expense. Mine cost about $17 for a season parking in a multi storey carpark. 

8. Miscellaneous cost
ERP, fines, parking, road tax and inspection. To each his/her own. 

9. Gear
Proper shoe, helmet for you and a pillion, raincoat etc. Again, to each his/her own. I think any helmet with PSB approved sticker which cost $60-$100 should be reliable enough. There's even a $20 PSB approved helmet. Personally, I would pay more to protect my head. I bought a $100 helmet from a more established brand. 

Anyway, that's all for now. Feel free to leave comments if you have questions regarding the 2B license or motorcycle ownership.

Regards
The Frugal Mat

Do You Track Your Expenses?

I'm not sure about you, but I certainly do! In fact, I track my expenses to the exact cents and have been doing so daily for about two years. It was quite a hassle when I first started, but the habit eventually became second nature. Basically, I invented a system to track my expenses and followed through.

It all begin with just an app in my iPhone and now, I have my very own "data centre" which is a personalised spreadsheet in my google drive. So far, whatever I have is good enough for my personal usage and best of all, it did not cost me a single cent. Also, my system has helped me to stay within budget each month!

1) Pocket Expense Personal Finance(Apple App Store)
What I like about this app is that it allows me to set the date for my own "financial month" unlike some others out there. It is also loaded with a lot of features. Do check it out, it's FREE!

• I try my best to key in promptly for every transaction made(whenever possible)
• Transactions made will be categorised accordingly and given a short description
• Receipts(if available) are kept in my wallet for transactions which I don't have the time to log
• No time + No receipt = Rely on memory or notes HAHAHA(so far, very low tracking error)

2) Personalised Spreadsheet (Google Drive)
In addition to the app in my iPhone, I also use a personalised excel spreadsheet to track my expenses. It is uploaded into google drive for easy access and storage.You should try making one, it's fun.

• Less chance of being missing + 24/7 access as long as there's internet
• Transactions from the iPhone app will be entered here twice a month
• I do a quarterly review of my expenses with the data stored
• A copy is downloaded into my laptop every six months as a form of backup

A screenshot of my spreadsheet. The mouseover shows the description of a transaction.

Hope whatever I shared was interesting enough and would encourage others to start tracking their expenses.


Regards
The Frugal Mat

A Mat's Guide to Deeper Pockets (Students)

Besides the financial support given by your parents while you are studying, here are some ways which you can deepen your pockets:

Part-time Job
This option is a personal favourite of mine. I get to choose what I would like to do(retail, fnb, admin etc) and also the amount of compensation which I feel is fair in exchange for my time. 

Just to share, I joined a local company last year as their very first part-time retail consultant and which I asked for a $6/hr compensation. I "sold" myself cheaply in order to get their attention as I was looking for a super flexible schedule. Knowing that I was underpaid for the duties performed, I requested for a raise to $7/hr after three months of work and good conduct. It was approved. Few months later, it went up to $8/hr without me asking! 

Government Funded Bursaries
This is basically "FREE" money as long as you meet the requirements and willing to put in the effort to collate the necessary documents. I know a handful of classmates and friends who give this a miss just because they find it a hassle to prepare and submit the required documents.

source: http://www.rp.edu.sg/sba/bursaries/government_funded_bursaries.aspx

Awards
This is another "FREE" money. Just perform well as a student and you will be awarded. It can be through your studies or your CCA. For more information: http://www.moe.gov.sg/initiatives/edusave/funds-grants-awards/

This can easily be achieved if you really put in the effort. I have managed to bag a total of $1550 from this category. Two from my time in secondary school and two while I was in ITE.

Government Bonds and Scholarship
For those who have an interest in working for the government after your studies, you can consider the different awards/bonds/scholarships available. You can seek more information from sites such as http://www.mha.gov.sg, http://www.mindef.gov.sg and http://www.pscscholarships.gov.sg. 

Personally, I am interested in the HOME Award(Poly) and will be applying for it when the application window for third-year students are open. 

Disclaimer: What works for me may not work for others. 

Regards

The Frugal Mat

My Stock Market Ride: Brokerage Account

Having shared about my first stock purchase previously, I will now share a little about the brokerage account that I opted for. Initially, I wanted to open an account with Standard Chartered as they do not charge minimum commission on transactions. It was very attractive for a student like me as it could keep my costs low. However, I decided to give them a miss to avoid disappointment as I doubt that my application will be approved due to their requirements.

Eventually, I came across the Young Investor Programme Account by OCBC and decided to sign up for it. Besides the fact that it was convenient as I had placed my investment fund in an OCBC Frank account, what attracted me was the $50 trade commission rebate offered for the first trade made. Being frugal, having this account for my very first stock purchase was a no-brainer.

source: www.iocbc.com

For those who meet the eligibility requirement, you might want to consider signing up for this account. However, do take note that the trade commission rebate is a promotion and not a privilege. For more informaton on the account and promotion, kindly visit www.iocbc.com.


Regards
The Frugal Mat

My Stock Market Ride: The Beginning

As someone who is relatively new to investing, I only started dabbling in equities(stocks/shares etc) in mid-January 2014. With a portion of my savings, I bought my first stock, SATS, at a unit price of $3.08. It would have been Singtel but due to my eagerness to enter the market, I just went for whatever that was cheaper. A little regret now, lol.  

Anyway, as it was sort of a big deal to me back then to be investing, I remembered looking up on the internet to learn as much as I can about SATS for at least a few months since late-2013. Prior to my research, I was aware that they are the one providing the passenger services at the airport. Upon researching, I discovered that they do so much more than that. I then became much more interested in their business, especially with words about a new terminal at the airport. That would clearly translate into more business for SATS in the future. And with that, I made up my mind. Being a noob, I based my entry price on the 52-week price range. Seeing that $3.08 was "good enough" for me, I made the queue(during my lunch break in school).

Being a newcomer, it was a quite an enriching experience to have my money in stocks and not in the "safety" of the bank. Seeing and feeling what it was like to have the value of my stock dropped a day after the purchase was quite daunting. It then went to stay lower for the next few months. Eventually, I learnt not to bother with the fluctuation of price.

Some time later in May, I realised that SATS was just not the business that I would want to be in at the point of time. I then divested my holdings and channelled the small profit to my investment fund. By pure luck I must say, that I managed to make a profit. It just happened that SATS was trading at a good price when I decided to exit.

As you can see, being invested is very simple. But of course, it requires some effort to determine your fate at it. As a newcomer, it took me months of reading forums, sites, blogs, news before making my purchase. I could have bought a bad business unknowingly if I had not done so. 

Anyway, I hope what I had shared would motivate and interest others to pick up investing as well.


Regards
The Frugal Mat

Celebrating My Gandfather's Birthday

It was my grandfather's 69th birthday yesterday. Naturally, there was a small family gathering and it was held at my uncle's place as my grandparents are living with him. Recalling how my grandfather used to look when I was little and now, he has certainly changed a lot(duhh). I bet he is also an envy of some for being blessed with a bunch of grateful children who are financially supporting and looking after him right now.

If I could remember correctly, my grandfather was forced to retire around 5-10 years ago by my mum and her siblings due to his deteriorating health. Of course he was very stubborn and reluctant but due to some incident which resulted to him being hospitalised, he had no choice but to retire. It was about time anyway. After all, he had no other responsibilities except for his household expenses and the utility bills.

From my understanding, my grandparents did not have much savings back then. My grandfather was the sole breadwinner of the family. Their "savings" for retirement were basically their fully paid 3-room HDB apartment and also my grandfather's CPF. After the above mentioned incident, the beloved apartment was sold off to my aunt and her husband so as to fund my grandparents' retirement needs. The proceeds were mostly in cash as the price paid by my grandfather when he bought the apartment was.... legendary (we will never see those figures ever again, HDB flats are expensive now). After the flat was sold, my uncle bought a flat and brought my grandparents to live with him. 

With the arrangement, my grandparents have a place to live as well as a fund for their retirement needs, besides the allowance given by their children. I think my grandparents are leading a comfortable and adequate life at the moment. Especially for my grandfather, he is often seen playing those Puzzle Bobble games on his phone and watching the cable tv. Simple life indeed.

So why am I sharing all that? Well, celebrating my grandfather's birthday made me think and wonder. Will I be as fortunate and blessed as my grandparents? Will I have a roof over my head and the basic necessities? Will I have children who would sacrifice their time and resources to look after me when I am old?

I am not sure about others but I am not taking chances and leaving it to fate. I believe that I should be proactive when it comes to my golden years and retirement. With such goals in mind, I am sure that all my "sacrifices"(controlled spending, investing, etc) would pay off one day. And if I were to be blessed with good children while being proactive, then that's a bonus. Hope this post will set some of my fellow youths thinking. 


Regards
The Frugal Mat

The Virgin Post

Hi, welcome to my blog. Do check out the "About Me" page to understand more about yours truly (;

From this day on, I will be blogging on various topics such as personal finance for students and youths, motorcycle ownership, my investing journey and definitely some controversial and sensational issues involving my people(Mats & Minahs).  

I am an advocate of financial education. I believe everyone deserves and should be equipped with some knowledge on how to manage their personal finance at the very least. Such thinking and beliefs would not have been possible if was not for a very well-spent money on Robert Kiyosaki's book "Rich Dad Poor Dad". At the point of reading, I was only 17 years of age and it definitely shaped my perspective towards financial education. Since then, I have been lending out my copy to my classmates and friends with a hope that they too can benefit from it.

At the age of 20, I then realised that proper management of personal finance is just one aspect of things. Soon, I found myself reading up on investments and by chance, I stumbled upon the "local scene" of investment blogs. I hope that with determination and also some support from the future readers, I will be able to blog for long-term.


Regards
The Frugal Mat