Passive Expenses oh Passive Expenses

We heard a lot of passive income, but do you know that we also have PASSIVE EXPENSES?

Criteria of Passive Expenses:

1) Monthly Cycle

2) Small amount

3) Not urgent

4) Auto deduction

What are the Passive Expenses and how to reduce it?

1) Membership subscription

- Example:

Fitness centre membership: Do you need it? Can you exercise at home especially during Covid?

Magazine subscription: Do you read it? Can you read the synopsis?

2) APP subscription

Example:

Games: Do you worth to play? except Axie Infinity which can earn money.

Any free version of APP?

3) Handphone, Unifi, Water and Electricity

Can you reduce the usage? Change to lower bandwidth?

My bill is about RM 230 per month ( Handphone - RM 10, Unifi - RM 129, Water - RM 20, Electricity - RM 70 )

This is the best/minimum that I can save.

4) Credit card membership and tax

Do change to all free membership Credit Card. But the government tax of RM 25 is unavoidable. Maybe can use point to redeem.

I have 6 credit cards which need to pay RM 150 per month but 0 membership.

a) Alliance Bank - free membership, life long member point

b) OCBC - free membership and 1% insurance rebate, just got RM 100

c) Maybank amex - from the 2 cards, luckily I cut 1 card, now can't cut if not mistaken, 5% cash rebate cap RM 50

d) Ambank - free membership and got 0% installment

e) Citibank - free membership and got cash rebate campaign, Got a free Ipad during application.

f) Public Bank - free membership if use 12x per year and cash rebate RM 38 per month, a lot of installment scheme with 0.5%.

5) Loan Interest - car loan and house loan

Car Loan, do take 5 years term loan, do not take more than 5 years.

House Loan - take full flexi, you will have one current account (service charge RM 10 per month) link with loan account. Dump all your money in your current account to reduce interest. You sure can earn more than RM 10 if you put money in your current account.

I am using Alliance Bank Home Loan Full Flexi account - help me save a lot of interest.

6) Insurance

- Use bank dedicated Credit Card

Example: GE, I use OCBC GE credit card which give me 1% rebate.

7) Inflation

- This one nobody can escape. Do not put money in FD, invest your FD money.

You can put/invest in:

a) Home Loan Current Account (about 3 to 4% interest, 0 risk)

b) SSPN Prime (about 4%, low risk)

c) ASN (about 4%, low risk)

Only buy 3 fix price unit trust. Which are the 3?

ASM - 1