Archive
October 2020
Want to Save Money? Here are 4 Easy Tips
Saving can be tough in this current environment, but that doesn’t mean you should give up on building a financial back up for you and your loved ones.
While growing your savings surely takes a large effort, there are some simple ways to start on the path to financial security.
1. Get on top of your budget
There’s little chance you’ll be able to save much money if you’re not keeping good track of your cash. Therefore, it’s important to create a budget — and stick to it.
When it comes getting your budget started, kick things off by looking at your income and expenses. Once you’ve established your income —your salary and other types of money gains — figure out what you’re spending that money on. This includes fixed costs like rent and food as well as optional spends such as entertainment and non-essential shopping.
2. Cut your expenses where you can
There’s no point in just knowing where you’re spending your money – that’s only half the battle. The key is cutting spending so you can allocate more money to your savings. Although depending on your situation during the current economic environment, it may be a much harder time than usual to do this.
Some common strategies include seeking out better deals on your regular payments — things like phone bills. It could also pay off to switch to cheaper brands of clothing and food or cut down on under-utilised subscription services like Netflix.
3. What about investing?
The Raiz Philosophy is to invest small amounts regularly, even in falling markets as this can help you to ride out the downturns in the market and is one of the keys to having a healthier balance over the long run. This principle is known as Ringgit Cost Averaging.
Compounding happens when you let the returns on an investment build up so that you are earning a return on your return. Given enough time to work its magic, it provides the potential to reach a stage in your life where your money is working hard enough to provide a substantial part of your income.
4. Build an emergency fund
Building your savings should be about achieving your financial goals, but don’t forget to also prepare for when times get tough – the current coronavirus pandemic for example. This is where an emergency fund can be super helpful. Click here to learn about the 3 steps to build up your emergency fund.
Depending on your situation, you may need to build a big emergency fund or one that just needs to get you through a few weeks without a regular income.
Whatever you may need money for down the track, it makes sense to prepare for a financial back up in order to soften the unexpected bumps along the road.
Don’t have the Raiz App?
Download it for free in the App store:
It’s more important than ever to have emergency savings. Let’s do it.
Hope you’re enjoying being part of Raiz. We also have a referral program as we would like to reward you for introducing Raiz to your friends.
For every active referral, both you and your friend will receive RM10! This offer will last until 30 September 2020.
Just make sure that they sign up using your unique link where you can find your unique link in the app at the bottom on the menu screen.
Home > Menu > Invite Your Friends
There are no limits on how many people you can refer, so feel free to invite as many people as you’d like 😊
We look forward to continuing building the Raiz community! None of this would be possible without you.
Thanks for your loyal support!
June 2020
What is My Finance?
Need an easier way to understand your finances? My Finance is a free-to-use feature within the Raiz app. It provides you with personalised insights and notifications on how you are spending. Spending is the other side of the equation when it comes to saving so by spending less, you can potentially save more…. Keeping a handle on how spending can help you meet your savings goals 🙂
In addition, we have harnessed machine learning & artificial intelligence into the feature so that it will provide you with tips & insights relevant to you – about your spending habits and where you may have saving opportunities.
[caption id="attachment_113" align="aligncenter" width="244"]
My Finance Tip[/caption]
How it works
To use My Finance, please make sure you link up your spending accounts as this is how My Finance will be able to provide you personalised insights. The more up to date your My Finance is with categorised spends and linked accounts, the more accurate this will be.
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Link your spending accounts to see where you spend[/caption]
Check out ‘Uncategorised’ tab in My Finance
Check out the ‘Uncategorised’ tab within ‘Categorise Transactions’ to categorise any that My Finance was unable to. My Finance will then learn to categorise this in the future and give you better insights, powered by machine learning technology.
You are also able to change categorised transactions that we may have categorised wrong at any time by tapping on ‘All’ and the specific transaction you’d like to change. It will also fix up past transactions and My Finance will learn to categorise this in the future as well.
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Check out the ‘Uncategorised’ tab within ‘Categorise Transactions’[/caption]
Future Cash
My Finance also projects your future free cash based on your past spending and income, which may also help you determine if you are spending above your means or if you can save more.
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Project your future free cash[/caption]
Investing in Raiz Portfolio - Is it Syariah-Compliant?
31 Mei 2020
by Aidi Izham, CFP®, MIFP
What determine an investment, "a syariah-compliant investment”?
All Raiz investment portfolios are investing in unit trust funds managed by Amanah Saham Nasional Berhad (ASNB), a wholly-owned subsidiary company of Permodalan Nasional Berhad (PNB).
The funds have invited two views;
FIRST, from the Securities Commission Malaysia (SC), the statutory body that is responsible to regulate and develop the Malaysian capital market -- the funds are NOT considered compliant.
Why?
Mainly because PNB’s strategic investment in Maybank, considered a non-syariah compliant financial services stock. For SC to say a fund is compliant, they look at the business activity benchmarks and financial ratio benchmarks, while at the same time account for qualitative aspect which involves public perception or image of the company’s activities.
However, the SECOND view coming from the Islamic local councils in Malaysia, both at state (Jawatankuasa Fatwa Negeri) and federal level (Jawatankuasa Fatwa Majlis Kebangsaan) -- the funds are “harus”, for these obvious reasons;
- PNB’s mandate is to enrich the lives of the Bumiputeras, which majority are Muslims. PNB has some 14 million unitholders, of which about 80% are Bumi.
- PNB does not invest in “haram” shares” such as alcohol, gambling or tobacco stocks.
- There are limited number of syariah-compliant equity instruments on Bursa Malaysia considering how much money PNB has to invest -- PNB has RM312 billion to invest, but Syariah-Compliant securities on Bursa Malaysia is only RM1.1 trillion (as at 31 Dec 2019).
- If PNB pulls out its share from Maybank due to its non-syariah compliance, that would have a major negative economic impact on Bumi Muslims.
- If PNB did not have majority shares in Maybank, for instance, it will lessen the acceleration of Islamic finance in the country – Maybank Islamic is the largest Islamic banking group in Malaysia and ASEAN by assets.
- From the SC – the funds are not Syariah-compliant
- From the Jawatankuasa Fatwa – the funds are “harus”
- There is no force if one wishes to invest or, indeed, to not invest at all. That’s why the principles of needs (hajiyyah) provide a certain flexibility and freedom (although not absolute) for the individual to choose.
Don't have the Raiz App?
Download it for free in the App store:May 2020
Melabur dalam Raiz - Patuh Syariah ke?
31 Mei 2020
oleh Aidi Izham, CFP®, MIFP
Apa yg menentukan sesuatu pelaburan, “patuh Syariah”?
Semua portfolio pelaburan Raiz adalah di dalam dana-dana unit amanah Amanah Saham Nasional Berhad (ASNB), anak syarikat milik penuh Permodalan Nasional Berhad (PNB).
Tidak dinafikan, dana-dana tersebut ada dua percanggahan pendapat tentang status “patuh Syariah” nya.
PERTAMA, daripada Suruhanjaya Sekuriti Malaysia (SC), badan berkanun yg bertanggungjawab mengawal selia dan membangunkan pasaran modal Malaysia – dana-dana tersebut TIDAK diberikan status “patuh Syariah”.
Kenapa?
Kerana pegangan pelaburan strategik PNB dalam syarikat perbankan terbesar Malaysia, Maybank (KLSE:MAYBANK), yang dianggap saham perkhidmatan kewangan tidak “patuh Syariah”. Untuk SC memberi status Syariah kepada sesuatu saham atau sekuriti, SC melihat kepada tanda aras aktiviti perniagaan (business activity benchmarks) dan tanda aras nisbah kewangan (financial ratio benchmarks). Selain itu, aspek kualitatif yang melibatkan persepsi umum atau imej aktiviti syarikat turut diambil kira.
Bagaimanapun, pendapat KEDUA daripada Jawatankuasa Fatwa negeri-negeri dan juga Jawatankuasa Fatwa Majlis Kebangsaan bersepakat bahawa dana-dana ASNB “harus” hukumnya, atas beberapa sebab jelas berikut;
- Mandat PNB adalah untuk memperkayakan kehidupan semua rakyat Malaysia dan Bumiputera khususnya yg majoritinya beragama Islam. PNB memiliki lebih 14 juta pemegang unit, di mana kira-kira 80% adalah Bumiputera.
- PNB tidak melabur dalam sektor yang berkaitan secara langsung dengan perkara-perkara haram seperti arak, judi dan rokok.
- Saiz ekuiti patuh Syariah di Bursa Malaysia adalah terhad, terutamanya sektor perkhidmatan kewangan, apabila diambil kira amaun yg perlu PNB laburkan – saiz asset PNB ialah RM312 bilion, tetapi pasaran modal patut Syariah di bursa Malaysia hanya RM1.1 trillion (setakat 31 Dec 2019)
- Dari SC – dana-dana ASNB TIDAK diberi status “patuh Syariah”
- Dari Jawatankuasa Fatwa – HARUS
- Tiada paksaan jika seseorang itu berhasrat untuk melabur, atau tidak sama sekali. Oleh kerana itu, prinsip hajiyyah (kemudahan) memberi kemudahan dan kelapangan dalam kehidupan sehari-hari. Ketiadaannya tidak akan menjejaskan kehidupan tetapi juga akan menyebabkan sedikit kesulitan.
Maklumat Penting Maklumat di laman web ini adalah nasihat umum sahaja. Ini bermakna ia tidak mempertimbangkan objektif pelaburan, keadaan kewangan atau keperluan pelaburan seseorang. Sekiranya anda seorang pelabur, anda harus berjumpa dengan penasihat berlesen anda sebelum menggunakan apa-apa maklumat yang terdapat dalam artikel ini untuk memahami sepenuhnya manfaat dan risiko yang berkaitan dengan produk Raiz. Maklumat di laman web ini adalah sulit. Ia tidak boleh diterbitkan semula, diedarkan atau didedahkan kepada orang lain. Maklumat tersebut berdasarkan andaian atau keadaan pasaran yang berubah tanpa notis. Ini akan mempengaruhi ketepatan maklumat. Dalam apa jua keadaan maklumat yang akan digunakan oleh, atau disampaikan kepada, seseorang untuk tujuan membuat keputusan mengenai pelaburan di Raiz, prestasi pulangan masa lalu produk Raiz tidak boleh dijadikan panduan semasa membuat keputusan untuk melabur dalam Raiz dan bukan peramal prestasi masa depan yang baik.
April 2020
The Raiz Philosophy - Investing Small Amounts Regularly
What is Raiz Philosophy? (Ringgit Cost Averaging)
The Raiz Philosophy is to invest small amounts regularly. While this can’t eliminate market uncertainty, the Raiz Philosophy can help manage it, and at the same time help you learn about the markets, build financial confidence or just save and invest in the background of life. This is the well-known investment strategy, Ringgit Cost Averaging. Raiz automates the strategy and does it more frequently, with the average Raiz customer investing at least once a week. By investing small amounts regularly, the Raiz philosophy protects your investments from emotion. If prices go up, you buy fewer of the now more expensive shares and, if they go down, you buy more of the now cheaper shares. It’s an automated, disciplined approach to investing for the long term. Studies suggest that losses are twice as powerful, psychologically, as gains, leading this type of investment mindset to be more likely to make the mistake of needlessly selling holdings and switching to cash in a down market. By avoiding the media hype or fear in picking the ‘right time’ through regular contributions, investors can avoid both the euphoric and depressive investment traps. On average a Raiz customer saves RM150 a month with the average balance of a customer is RM1,250. In 2007, Buffett bet a New York hedge fund $1 million that his simple, low-cost investing strategy would outperform the hedge fund industry over 10 years. And he won. Stick to your savings plan and invest small amounts regularly, no matter the market condition. By protecting your investments from emotion, the Raiz Philosophy is one of the keys to helping you and our community to better reach your financial goals and enable a healthier balance over the long term. Remember: “The best time to plant a tree was 20 years ago. The second best time is now.” Any returns shown or implied in this article are not forecasts and are not reliable guides of future performance.Don't have the Raiz App?
Download it for free in the App store:The Advantages of Ringgit Cost Averaging
Markets go up and markets go down. This is completely normal and is known as market volatility or risk. The Raiz Philosophy is to invest small amounts regularly, even in falling markets as this can help you to ride out the downturns in the market and is one of the keys to having a healthier balance over the long run. This is the well-known principle of Ringgit Cost Averaging.
How does it work? For example, say you have RM1,000 to invest. Instead of investing it all at once, you could invest RM100 each month into the market for 10 months, despite the changes in the market value.
If for example the stock of choice was priced at RM10 the first month, you would purchase 10 units. If during the second month the stock was priced at RM5, you would purchase 20 units, and so on.
In the end, you would have purchased more shares when prices were lower and fewer shares when prices were higher. The outcome is that you may have invested more prudently than simply investing the money all at once in a lump sum.
Let’s look at the other key advantages to sticking with Ringgit Cost Averaging (RCA):
Avoids Bad Timing
Investing in one lump sum and trying to pick the best price to enter the stock is known as market timing and is something very difficult to do and get right. If an investor could have any superpower in the world, it would be to pick the low points of the market. Many have tried, succeeded and failed but no one knows exactly when the lows and highs will happen, and no one can stop unwanted surprises from happening. Ringgit Cost Averaging can provide a disciplined strategy as it ensures you are not too exposed to falls in the market when you buy at the top; and rewarding you when the market recovers, for buying when the market was falling. By not depending on the timing, RCA can smooth out the market’s ups and downs.Reduces Risk
Ringgit Cost Averaging is most effective in a long-term saving strategy. As the market moves up and down, ringgit-cost averaging over time reduces your risks of trying to pick the best times to invest from these swings. By viewing falling markets as buying opportunities, you can significantly enhance your long-term return potential when the market rebounds.Removes Emotional Investing
People often make decisions based on emotion or loss aversion. Loss aversion refers to an investor’s tendency to strongly prefer avoiding losses to acquiring gains. Studies suggest that losses are twice as powerful, psychologically, as gains, leading this type of investment mindset to be more likely to make the mistake of needlessly selling holdings and switching to cash in a down market. By avoiding the media hype or fear in picking the ‘right time’, investors can avoid both the euphoric and depressive investment traps. Ringgit Cost Averaging strategy is in line with the Raiz’ philosophy and provides a disciplined strategy. “We don’t have to be smarter than the rest, we have to be more disciplined than the rest.” – Warren BuffettDon't have the Raiz App?
Download it for free in the App store:February 2020
