7 Credit Cards

Ok I admit. I'm one of those who had more than 2 credit cards. In fact, I had a total of 7!

My first credit card was from Maybank. I got it when I first started working and figured that having a credit card is important in an emergency. So I registered for one, and Maybank happily gave me another card which was a Visa.

(Ever wondered why Mastercard must always come together with Visa? But American Express can stand alone? I don't know the answer either.)

After a couple of years and me being a good paymaster, Maybank upgraded my Gold cards to Platinum without cancelling the Gold cards.

My love affair with Maybank continued when they gave me an American Express (Amex). I didn't use at all after a virgin transaction at a Petronas station did not go through. I just kept the card for fun after that failed transaction.

So I've got 5 cards from Maybank - 2 Gold, 2 Platinum and an Amex.

The remaining 2 cards were from HSBC. I signed up for their Visa and Mastercard during a conference because I wanted to get the free pen they were enticing me with :-) The ink in that pen has long dried up but the cards stayed with me long after that.

I only used my HSBC cards whenever necessary. Most of the time I used my Maybank cards cause it takes less points to exchange for gifts in Maybank compared to HSBC. For example, it takes only 9,400 points to exchange for a RM50 Senheng voucher with Maybank, versus 11,000 points to exchange a similar voucher with HSBC.

After the government made the announcement  that we have to pay some stupid service tax of RM100 for each credit card we own, there was one word that came to mind: consolidation.

So at the beginning of this year I started a consolidation exercise.

First, I exchanged all the points I had with HSBC for an Isetan RM50.00 shopping voucher. The voucher is still sitting in my wallet. I'm waiting  for an opportune time to purchase a super feminine dress during the Isetan sales that they organise frequently for its members.

After receiving the Isetan voucher, I called up HSBC to cancel both my cards. I was surprised the lady who attended my call didn't ask me to reconsider keeping my cards. I guess they must have anticipated the sudden increase in people wanting to cancel their cards, especially after the service tax announcement.

Then I called up Maybank and told them to transfer all my balance and Treatpoints from my Gold cards to my Platinum ones before cancelling my Gold cards, as well as my Amex which does not have any balance or points in the first place.

So now I only have 2 credit cards, and I intend to keep it that way.

Refinancing My Home Loan

After 5 years of being a loyal paymaster to an international bank, I finally decided to refinance my home loan.

This time I'm choosing a local bank simply because they have offered me a fantastic interest rate. So far their service has been nothing but fast and efficient. So I've got no complains.

And from a 30-year loan with the international bank, I'm reducing it to 6 years with the local bank. I'm extremely motivated to do so after calculating the total amount of interest I would have to pay if I had chosen the 30-year loan. I could buy another property with that kind of money. So I'm not gonna let the bank earn a single cent more from me !

I might have to make some sacrifices for the next 6 years because when I reduce the loan tenure, the monthly payments increases. But I think it's an effort that's well worth it. I can already imagine the feeling of having a fully-paid-up property in my name in 6 years time !

Being Thrifty 2 - Don't Subscribe to Paid Television

This is a follow-up on my earlier entry, Being Thrifty - Change Your Eating Habits, on how to save money by changing our way of life.

I'm know I'm gonna make enemies with Astro, but I have to say this: One sure way to save money is do not subscribe to paid television. The cheapest package on Astro costs RM37.95, which is an annual savings of RM455.40. But a majority of subscribers go for the more elaborate packages costing at least RM100. You could put that money to better use like investing in unit trust.

The only time I kinda regret not subscribing to Astro is during international sporting events and whenever there's an important world event taking place because Astro's coverage is beyond compare to the local stations. But it's not a life or death situation if you don't subscribe to it.

It's funny how Astro's tagline is 'Making Your Life Richer' when they are draining at least RM37.95 a month from their subscribers. Astro is merely a form of entertainment - you don't need it to survive. And I don't believe in making other people rich unnecessarily.

Being Thrifty - Change Your Eating Habits

The Government has been advising the 'rakyat' to change their lifestyle after the oil price hike on 3 June 2008.

As a believer of delayed gratification, I have been living in moderation long before 3 June 2008. One way is to eat moderately, especially during lunch at work.

Eat less meat. I normally have lunch at the mix rice stall where I have 'nasi penuh', vege, fried egg and 'banjir' with curry. This only costs me RM2.50!

Another crucial tip is don't order drinks when eating out. The price of drinks usually costs as much as the price of a meal in higher end eateries, which I find absolutely ridiculous. If I'm at work, I'll go back to the office and have my cup of water - FOC. If you must have drinks in case you 'cekik' while feasting on your favourite food, there are many options:

• order 'sky juice' or Chinese tea.
• order a soupy dish like noodle soup so that the soup can become your 'drink'; and
• my favourite option - always bring along your own bottled water.

Now that my friends know why I always order plain water or don't order any at all, I'll continue to share other tips on living moderately in my future entries.