• Property

Before we spend beyond our earnings, please remember that money which we overspend today will mean a much bigger ‘loss’ the future. For example, if I put in RM10,000 into the self-contribution for EPF, this RM10,000 could have turned into RM17,081 10 years later based on an average of 5.5 percent dividend returns from EPF. This is a 70 percent gain over 10 years due to the compounding effect despite EPF declaring just 5.5 percent every year for the next 10 years. If we used it now, then we are spending our future RM17,000.