I realize that the title of the post is similar to that of a MJ song, but there is no coincidence. Recently, my grandmother passed away at a relatively young age due to cancer. It felt and still feels extremely surreal and sometimes I do not even remember that she is gone.
While she was alive, I felt that she did live to the best of her abilities. She made plenty of good friends due to her good and loving nature, she traveled often and she will never let an opportunity to help anyone in need pass. What she left behind were good memories of her.
Throughout this time, waves of thoughts flowed through my mind:
1) We never know when the end will arrive - We often procrastinate what we want to do because we always believe that we can do it tomorrow, but what if tomorrow never comes and today is your last? If you knew the exact day and time you would die in advance, wold you live the way you are living now? Would you still plan to retire at 65 if you know you would die at 66? Hell no. The thing is that we do not know when it would happen. That said, we should not just let go and go mad. We should still save and plan for a long life, just in moderation. Balance the joy you desire between now and later. Die smiling with no regrets.
2) The people we leave behind are the ones who suffer the most - When she passed, I was there, together with a few close relatives. She did not suffer, was not in any kind of pain. She went peacefully( Thank God).
As for the rest of us, the emotional pain was excruciating. This was the first time I experienced such a close and loved relative pass away before my very eyes. But what I felt could not have been even a tiny fraction of what my Grandfather who has been her life partner, friend, confidant and soul mate felt. To me, he has always been a very strong man. Never complained, never cried and never troubled anyone for anything. When he broke down, you could really see how much love he had for her. - I realize that this is what I want when I eventually die, to have people who love me surrounding me when I pass on.
3) We really have to set up a will, no matter how taboo it sound. - In this time and age, writing a will is less frowned upon but still a taboo subject. It will solve problems of who gets what. When it comes to money, it's really hard to tell. Maybe that's why they say that money is the root to all evil. Causes family conflicts and complications.
4) Just a memory - In the end, all we become is just a memory to those around us. And when they go, even that memory will cease to exist. We would just be a blip in the everlasting stretch of time, the fire in the matchstick that burn for the briefest of times. If that is the case, I want my matchstick to burn as bright as it can, no matter how brief. Let us live our lives to the fullest, love to the fullest, enjoy to the fullest to the best of your ability.
Joy and happiness does not have to cost a lot of money and spending a lot of money does not necessarily bring joy. Take an hour or two to think of what truly brings you joy. To me, joy is having my wife give me a loving hug when I return from work. Joy is going out with best of friends for a simple meal and having a ball of a time. Joy is seeing the look on my wife's face when I surprise her with a simple gift and most of all, joy is having family and friends who loves you for who you are.
As always, save more, spend less and invest wisely - not too much, not too little=)
P.
Monday 15 July 2013
Monday 8 July 2013
Financial Compromise = Long Lasting Happiness
Due to the weather being pretty warm and humid last Sunday, my wife and I decided to go for a swim.( To be brutally honest, all we did was soak.) On past occasions that these soakings occurred, we always got to talking about our future and also our financial plans and goals and this time was no different.
Sometimes, we would disagree and more often than not, irritation would get the better of us. Thankfully this time, this was not the case and I found this discussion to be extremely insightful. The main topic revolved around what we valued more and what we valued less. I found that we had very, I repeat very different views on money and material items. I realized that the reason why I prefer to save and invest is because I value money and freedom high above any material items I could purchase.
That being the case, why would any normal person want to trade something he/she loves more for something he/she loves less. I would not want to trade money to buy new clothes but I would trade money to invest to earn more money to give myself financial freedom.
My wife on the other hand stated that she would want to work till the normal retirement age of 65 as she wants to be able to continue buying anything she wants....which is practically everything. I felt that is was fair as she would be trading something she loves less(money) for something she loves more (bags, shoes, clothes..and the list goes on..)
In the end, soaked and wrinkled like raisins soaked in rum, we came to a compromise which would invlove 2 step.The 1st step was that we would, together, work towards reaching an investment portfolio value which would give us enough passive income to cover all our basic needs. This would include stuff that we could not live without like utility, mobile phone charges, food and stuff like that.
The 2nd step would proceed after we have achieved step one. It would be that whatever else we earned after step one would be used to do whatever we wanted, or more likely, whatever she wanted. The 1st priority will no longer be to save but to spend. Although this goes heavily against my nature, I felt that it was only right since she went along with me for part one.
That said, the important thing was to have no more debts and enough investment income to last till the end.
What kinds of compromise have you made with your spouse or even yourself? Are you happy with the compromise? We must always seek balance and try to provide happiness for our significant other. If one party is not happy in a relationship, it will be extremely hard for it to blossom.
As always, save more, spend less and invest wisely.
P.
Sometimes, we would disagree and more often than not, irritation would get the better of us. Thankfully this time, this was not the case and I found this discussion to be extremely insightful. The main topic revolved around what we valued more and what we valued less. I found that we had very, I repeat very different views on money and material items. I realized that the reason why I prefer to save and invest is because I value money and freedom high above any material items I could purchase.
That being the case, why would any normal person want to trade something he/she loves more for something he/she loves less. I would not want to trade money to buy new clothes but I would trade money to invest to earn more money to give myself financial freedom.
My wife on the other hand stated that she would want to work till the normal retirement age of 65 as she wants to be able to continue buying anything she wants....which is practically everything. I felt that is was fair as she would be trading something she loves less(money) for something she loves more (bags, shoes, clothes..and the list goes on..)
In the end, soaked and wrinkled like raisins soaked in rum, we came to a compromise which would invlove 2 step.The 1st step was that we would, together, work towards reaching an investment portfolio value which would give us enough passive income to cover all our basic needs. This would include stuff that we could not live without like utility, mobile phone charges, food and stuff like that.
The 2nd step would proceed after we have achieved step one. It would be that whatever else we earned after step one would be used to do whatever we wanted, or more likely, whatever she wanted. The 1st priority will no longer be to save but to spend. Although this goes heavily against my nature, I felt that it was only right since she went along with me for part one.
That said, the important thing was to have no more debts and enough investment income to last till the end.
What kinds of compromise have you made with your spouse or even yourself? Are you happy with the compromise? We must always seek balance and try to provide happiness for our significant other. If one party is not happy in a relationship, it will be extremely hard for it to blossom.
As always, save more, spend less and invest wisely.
P.
Thursday 4 July 2013
DUOS/U - Decreasing Units of Satisfaction/Usefulness
More is always better. The saying, while true to a certain extent does not apply to everything. The usefulness and the satisfaction an item brings diminishes as the quantity of that item increases.
Take for example your clothes. Say you are currently naked and you go to the store to buy a set of clothes. The set of clothes would be extremely useful because it keeps you covered and protects you from the cold. If you bought 2 set of clothes, it would still be mightily useful because it allows you to remained clothed while you are washing the 1st set of clothes. Now fast forward to the 100th set of clothing. How useful would that set be? I highly doubt it would bring about much more use or satisfaction then the 99th set.
This applies to everything else, even money. ( Yes, that's right, I said money..so shoot me.) Only we ourselves would know what is enough. Spending $1000 might allow you 100% satisfaction, however, spending $5,000 might not get you 500% satisfaction. Most likely, it will be along the range of 101% to 200%.
If we stop and make the decision to cut out spending on things that brings us little value, we would be able to save the money and use it for things which will bring us maximum satisfaction. Rather than spending on the new tablet with a larger screen size, why not spend it to see a loved one smile. A nice dinner or a short getaway perhaps.
What are the things you continue spending on or doing that are producing diminishing satisfaction and usefulness? Are you ready to take the next step towards life by cutting down on these? Please do share your experiences.
As always, save more, spend less and invest wisely.
P.
Take for example your clothes. Say you are currently naked and you go to the store to buy a set of clothes. The set of clothes would be extremely useful because it keeps you covered and protects you from the cold. If you bought 2 set of clothes, it would still be mightily useful because it allows you to remained clothed while you are washing the 1st set of clothes. Now fast forward to the 100th set of clothing. How useful would that set be? I highly doubt it would bring about much more use or satisfaction then the 99th set.
This applies to everything else, even money. ( Yes, that's right, I said money..so shoot me.) Only we ourselves would know what is enough. Spending $1000 might allow you 100% satisfaction, however, spending $5,000 might not get you 500% satisfaction. Most likely, it will be along the range of 101% to 200%.
If we stop and make the decision to cut out spending on things that brings us little value, we would be able to save the money and use it for things which will bring us maximum satisfaction. Rather than spending on the new tablet with a larger screen size, why not spend it to see a loved one smile. A nice dinner or a short getaway perhaps.
What are the things you continue spending on or doing that are producing diminishing satisfaction and usefulness? Are you ready to take the next step towards life by cutting down on these? Please do share your experiences.
As always, save more, spend less and invest wisely.
P.
Tuesday 2 July 2013
Click - Fastforward the week, or two
We all have those kind of weeks where time seems to crawl, things don't go right and you can't stop feeling nauseous. I often wonder why some days seem longer than the rest. And also why do bad things always seem to happen at once. These days, I often feel like fast forwarding time by a week or two.
The reason for all these negative feelings, in my opinion stems from having to work 5 days a week. My ideal workweek would consist of 3 workdays where every hour would be utilized to the max. Currently, there are pockets of idle time riddling through my work hours. As time goes by, I feel that its getting harder to bear. I wonder how you guys feel about your work week? Is 5 days of work too much or too little?
I have thought of a few ways to counter this negative feeling and change my life a little, some drastic and some minor changes. Not sure whether they will work but I might just give it a go in the near future.
1) Quit my job and work part-time/freelance.
2) Request to work lesser days for a lesser pay, make up for loss cash flow by working or doing something more enjoyable part time.
3) Take a break and go for a short getaway to recharge my batteries.
4) Take a long break - like 6 months - and backpack. (would love to do this but... so many reasons I cant afford it - later retirement date, new company, new house coming up, planning for kids.... sigh..)
5) Suck it up and take it like a man.
Have a few more ideas which are too ridiculous to be listed here lest I get flamed. Anyway, I would appreciate it a great deal if anyone could give me ideas to mitigate the negative feeling. I'm pretty sure many of you have felt the same way or are feeling the same way right now. I know we all have to go through this work life to earn enough for retirement, but some days... you know? Enough of my rants, thoughts please?
As always, save more, spend less and invest wisely.
P.
The reason for all these negative feelings, in my opinion stems from having to work 5 days a week. My ideal workweek would consist of 3 workdays where every hour would be utilized to the max. Currently, there are pockets of idle time riddling through my work hours. As time goes by, I feel that its getting harder to bear. I wonder how you guys feel about your work week? Is 5 days of work too much or too little?
I have thought of a few ways to counter this negative feeling and change my life a little, some drastic and some minor changes. Not sure whether they will work but I might just give it a go in the near future.
1) Quit my job and work part-time/freelance.
2) Request to work lesser days for a lesser pay, make up for loss cash flow by working or doing something more enjoyable part time.
3) Take a break and go for a short getaway to recharge my batteries.
4) Take a long break - like 6 months - and backpack. (would love to do this but... so many reasons I cant afford it - later retirement date, new company, new house coming up, planning for kids.... sigh..)
5) Suck it up and take it like a man.
Have a few more ideas which are too ridiculous to be listed here lest I get flamed. Anyway, I would appreciate it a great deal if anyone could give me ideas to mitigate the negative feeling. I'm pretty sure many of you have felt the same way or are feeling the same way right now. I know we all have to go through this work life to earn enough for retirement, but some days... you know? Enough of my rants, thoughts please?
As always, save more, spend less and invest wisely.
P.
Monday 1 July 2013
Job Loss - Utilisation of the Emergency Fund
Dear readers, I was just thinking to myself how I would handle loss of income should both my wife and I happen to be jobless at the same time. Not that it is happening now, but who is to say that it will never happen.
My wife and I are currently in the midst of starting a new company and we have decided that in order to increase the success rate, she would have to quit her current job. The reason as to why her and not me is because she knows the sector way better than myself. Therefore during these few months ( 4-6 ), we will be relying only on my income which means that our savings and investment amount will be cut down by a lot.
I was thinking, what if during this period of time, I was to lose my job as well. Would it be as disastrous as I think it would be? Upon careful consideration, I do feel that the emergency fund would suffice for these 6 month. We would have to cut down on eating out or going for holidays as my planned emergency funds was supposed to cover just our basic needs - plus or minus.
Everyone has different needs to be drawn from the emergency fund. Here are mine should I have to ever utilize it. - Fingers crossed that I will NEVER.
1) Car Expenses - About $300 ( should be a lot less since won't have to commute to work.)
2) Utility bills - About $250
3) Food - $700
4) Wife's Transport - $150
5) Mobile - $60
6) Cable - $50 ( would most likely cancel this, but would be a good replacement for going out which would cost more money)
7) Toiletries - $50
8) Condo Fees - $350
Total a month would be about $1500-$1900
6 Months would be about $9000 to $11400
I used to be pretty paranoid about having a huge emergency fund to last me a long time, somewhere along the line of 2 years worth. However, I have deemed it to be totally unnecessary and have cut it down to about $15k. The rest were put to better use in investments.
How much emergency funds do you think is enough? 3 months? 6 months or like the old me, 2 years? What are your basic needs and how much can you cut it down to? I'm sure I can cut mine down by quite a bit but I do not see the point as I do not feel that both my wife and I would be out of job at the same time for too long a period of time. An emergency fund is a definite, the question is how much.
As always, save more, spend less and invest wisely.
P.
My wife and I are currently in the midst of starting a new company and we have decided that in order to increase the success rate, she would have to quit her current job. The reason as to why her and not me is because she knows the sector way better than myself. Therefore during these few months ( 4-6 ), we will be relying only on my income which means that our savings and investment amount will be cut down by a lot.
I was thinking, what if during this period of time, I was to lose my job as well. Would it be as disastrous as I think it would be? Upon careful consideration, I do feel that the emergency fund would suffice for these 6 month. We would have to cut down on eating out or going for holidays as my planned emergency funds was supposed to cover just our basic needs - plus or minus.
Everyone has different needs to be drawn from the emergency fund. Here are mine should I have to ever utilize it. - Fingers crossed that I will NEVER.
1) Car Expenses - About $300 ( should be a lot less since won't have to commute to work.)
2) Utility bills - About $250
3) Food - $700
4) Wife's Transport - $150
5) Mobile - $60
6) Cable - $50 ( would most likely cancel this, but would be a good replacement for going out which would cost more money)
7) Toiletries - $50
8) Condo Fees - $350
Total a month would be about $1500-$1900
6 Months would be about $9000 to $11400
I used to be pretty paranoid about having a huge emergency fund to last me a long time, somewhere along the line of 2 years worth. However, I have deemed it to be totally unnecessary and have cut it down to about $15k. The rest were put to better use in investments.
How much emergency funds do you think is enough? 3 months? 6 months or like the old me, 2 years? What are your basic needs and how much can you cut it down to? I'm sure I can cut mine down by quite a bit but I do not see the point as I do not feel that both my wife and I would be out of job at the same time for too long a period of time. An emergency fund is a definite, the question is how much.
As always, save more, spend less and invest wisely.
P.
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