Nguyen worked in Malaysia and received a salary of RM3000 per month.

After deducting EPF contribution is at RM2670 per month. Nguyen has used his money in the cash flow as follows: After seeing the cash flow, Nguyen found that he has an amount of deficit every month, and some of his results in an increase is credit card payment interest of RM120 (RM8000 X 1.5%) per month. Expenses such as room rental and LRT transport are expenses that cannot be reduced as the room rental in Malaysia at present is RM600 per month. LRT transportation expenses also cannot be reduced because Nguyen LRT transports to go to work and sightseeing. Therefore, to avoid a deficit in each of his monthly expenses, Nguyen should review of all expenditure that was made. From cash flow provided, there are expenditure that to be reduced. Among expenditure that can be reduced are basic living expenses, laundry and clothing, entertainment, fitness club membership and remittance of fund to parent in Hanoi. Nguyen provides RM600 a month for laundry and clothing. Before, Nguyen sent all his clothes to the laundry this causes Nguyen had allocated RM240 per month for laundry only. Nguyen also has a habit of buying new clothes every month. He provides RM360 a month to buy new clothes every month. This causes high costs. Assume that, 25kg for a week Office shirt = [10kg x (RM2 + RM1) x 4 weeks] = RM120 + RM120 Daily shirts = [(15kg x RM2) x 4 week] = RM240 (laundry) + RM600 RM240 = RM360 (clothing) RM600

To reduce the cost of laundry, Nguyen needs to send dress for work only to the laundry. Nguyen will reduce from 25kg to 10kg per week. It will reduce cost from RM240 to RM120 per month. Besides that, Nguyen must reduce the expenditure to buy new cloth. He can reduce from RM360 per month to RM180 per month. So, total of new expenditure for laundry and clothing is RM300. Nguyen can save RM300 and cover the deficit.

Office shirt = [10kg x (RM2 + RM1) x 4 weeks] Clothing

= =

RM120 RM180 RM300 RM300 (cover deficit)

RM600 RM300

Nguyen provides RM300 for entertainment before, this cost too high. Nguyen must reduce its entertainment activities. These activities involve high costs. Nguyen may spend less on entertainment activities from RM300 to RM200 only. He will save RM100. Nguyen provides for basic living expenses RM1200 per month. This amount is quite high for Nguyen is still not married. Nguyen does not have to pay for water or electricity because it is included in monthly rent. Nguyen provides full RM1200 to eat and reload hand phone. To reduce the deficit, Nguyen must set in average the expenditure to eat per day is RM25 and reload RM5 per day. So, the total of living expenses is RM900 per month. Nguyen can save RM300 to cover the deficit. Food : RM25 x 30 Reload : RM5 x 30 = RM750 = RM150 RM900 = RM300 (cover deficit)

RM1200 RM900