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.
Showing posts with label loved ones. Show all posts
Showing posts with label loved ones. Show all posts
Thursday, 4 July 2013
Monday, 20 May 2013
Just.One.More.Dollar
Dear readers, somewhere along the way, roughly in the past 2 years, I have come to realize something. Sometimes, the extra dollar saved is not worth the sacrifice you have to make. Yes, I know that every dollar counts but there must also be a limit to how much we can compromise our lifestyle and the lifestyle of those around you.
After achieving your set target for the month, saving those extra dollars will not bring forward the earlier retirement date by much. I would say at most a year or two. Now let me ask you this, would it be worth it to sacrifice for the next 20 years or so just so that you can retire that one or two years earlier? I say no. I do not want to compromise my current lifestyle too much for that. You must know when enough is enough.
What I think we should do is to create a smooth path, one that we enjoy all the way till the end. In moderation of course, and not one where we have to suffer first and enjoy later. In everything we do, we have to think about the people around us, our spouse, our children or our parents. It does not mean that if you do not mind the suffering, they won't mind it as well. They might be appearing to do so just because they do not wish to let you feel disappointed. Spare a thought for them, and if you can afford it, spend those extra dollars to make their day brighter and happier.
I guess this will be a short post. Got so many things to do, so little time.
Anyway, I hope we will not be so overly obsessed with savings that we forget the reason to which we are saving or neglect our loved ones.
As always, save more, spend less and invest wisely.
P.
After achieving your set target for the month, saving those extra dollars will not bring forward the earlier retirement date by much. I would say at most a year or two. Now let me ask you this, would it be worth it to sacrifice for the next 20 years or so just so that you can retire that one or two years earlier? I say no. I do not want to compromise my current lifestyle too much for that. You must know when enough is enough.
What I think we should do is to create a smooth path, one that we enjoy all the way till the end. In moderation of course, and not one where we have to suffer first and enjoy later. In everything we do, we have to think about the people around us, our spouse, our children or our parents. It does not mean that if you do not mind the suffering, they won't mind it as well. They might be appearing to do so just because they do not wish to let you feel disappointed. Spare a thought for them, and if you can afford it, spend those extra dollars to make their day brighter and happier.
I guess this will be a short post. Got so many things to do, so little time.
Anyway, I hope we will not be so overly obsessed with savings that we forget the reason to which we are saving or neglect our loved ones.
As always, save more, spend less and invest wisely.
P.
Friday, 17 May 2013
My Fears Related to Early Retirement
I have often wondered how would people around me feel or perceive me should I tell them that I will be retired before the age of 40. Most would just assume that I either struck the lottery, inherited a massive amount of wealth or that I command a massive paycheck. All these are not true. Early retirement, for me is gained by saving hard, cutting the amount of money I spend and also taking the effort and time to find the correct stocks and bonds to purchase.
I also have this fear that should I retire early, especially in Singapore, many would see me and those like me as lazy. Questions would start flooding in, from both relatives and friends. "Why don't you continue working to earn more money?". " Why are you doing non constructive stuff". "Why are you no longer a productive member of the society?" .... So many whys. Well, @!$!@4 you that's why. Just kidding.
I seek early retirement because I do not want to work the best part of my life away. There is only a finite amount of things you need to purchase in life. I want to live, do the things I want to do while I am able. I want to be able to travel without fear of work piling up while I'm away. I want to be able to have a 2 hour lunch followed by a 1 hour stroll and not a 1 hour lunch. I want to be able to take the lessons and courses I have been wanting to take but have no time for. French, bike, diving and powerboat. All these things and many more. You get my drift.
Working will usually drain you of your energy, and at the end of the day, all you want to do is laze on the couch and watch some TV. Is that how you want to live you life till you are 65? I damn well do not.
Therefore, I have come to a conclusion. I will only care what the people directly affected by my early retirement think - A.K.A. My wife and future children. I feel that as long as we are happy, and my wife and I are able to provide for all our and future children's needs, other people can say anything they want and not mean a thing to me.
You know yourself best. If you have set an intended course, do not let anyone sway you from it. Many will sway you out of jealousy. Do not be brought down by their petty remarks. As long as you and your family are happy and contented, nothing else really matters.
Phwoar..really needed to let that out because it has been bugging me for quite some time. Sorry for the rant.
Anyway, as always, Save more, Spend Less and Invest Wisely.
P.
I also have this fear that should I retire early, especially in Singapore, many would see me and those like me as lazy. Questions would start flooding in, from both relatives and friends. "Why don't you continue working to earn more money?". " Why are you doing non constructive stuff". "Why are you no longer a productive member of the society?" .... So many whys. Well, @!$!@4 you that's why. Just kidding.
I seek early retirement because I do not want to work the best part of my life away. There is only a finite amount of things you need to purchase in life. I want to live, do the things I want to do while I am able. I want to be able to travel without fear of work piling up while I'm away. I want to be able to have a 2 hour lunch followed by a 1 hour stroll and not a 1 hour lunch. I want to be able to take the lessons and courses I have been wanting to take but have no time for. French, bike, diving and powerboat. All these things and many more. You get my drift.
Working will usually drain you of your energy, and at the end of the day, all you want to do is laze on the couch and watch some TV. Is that how you want to live you life till you are 65? I damn well do not.
Therefore, I have come to a conclusion. I will only care what the people directly affected by my early retirement think - A.K.A. My wife and future children. I feel that as long as we are happy, and my wife and I are able to provide for all our and future children's needs, other people can say anything they want and not mean a thing to me.
You know yourself best. If you have set an intended course, do not let anyone sway you from it. Many will sway you out of jealousy. Do not be brought down by their petty remarks. As long as you and your family are happy and contented, nothing else really matters.
Phwoar..really needed to let that out because it has been bugging me for quite some time. Sorry for the rant.
Anyway, as always, Save more, Spend Less and Invest Wisely.
P.
Wednesday, 8 May 2013
When Was The Last Time You Felt Happy?
Dear readers, what is the first thing that comes to mind when you think of the words happy and satisfied? Take a few moments to think about it. I'm pretty sure that many things come to mind, but there is something missing in most of the images and you cannot put a finger to it. Could it be that in most of those things do not bring about true happiness and satisfaction?
Now, narrow those thoughts down to just experiences with friends and family, take away material purchases. Think upon for example, finally getting on the plane to for your honeymoon, gazing into the eyes of your better half, when your child was born or when you were on that beautiful beach with your friends, Malibu Orange in one hand, a cigar in the other. What do you feel now? If you are like me, you will sense that longing in your heart to feel that feeling again, you will feel that at that moment, you were truly happy and satisfied. No? er... maybe you have different priorities and needs in life. For me, these are the kind of moments that I truly treasure and savor.
What I'm trying to say in this post is what many other bloggers have said before, I just want to add a more mental picture so you can feel what I'm trying to say. Most things that you buy, say hand phones, new clothes, new car, new laptops and all other consumer products will only bring about a very short lived happiness. After a while, you wont even remember that tiny spike in happiness that occurred when you made that purchase. If that is the case, why not invest your money on providing yourselves and your loved ones with experiences instead?
Experiences don't have to cost a lot, but even if they do, in my opinion, I think they are worth it if it's with the people you love. Instead of buying that new phone, bring your parents or family on short trip, take many photos, laugh and have senseless fun. I'm sure everyone will remember the occasion for years to come.
So this week, think of how you can create experiences which will provide lasting happiness instead of buying another product that will only present you momentary satisfaction.
As always, save more, spend less on material stuff and invest wisely.
P.
Now, narrow those thoughts down to just experiences with friends and family, take away material purchases. Think upon for example, finally getting on the plane to for your honeymoon, gazing into the eyes of your better half, when your child was born or when you were on that beautiful beach with your friends, Malibu Orange in one hand, a cigar in the other. What do you feel now? If you are like me, you will sense that longing in your heart to feel that feeling again, you will feel that at that moment, you were truly happy and satisfied. No? er... maybe you have different priorities and needs in life. For me, these are the kind of moments that I truly treasure and savor.
What I'm trying to say in this post is what many other bloggers have said before, I just want to add a more mental picture so you can feel what I'm trying to say. Most things that you buy, say hand phones, new clothes, new car, new laptops and all other consumer products will only bring about a very short lived happiness. After a while, you wont even remember that tiny spike in happiness that occurred when you made that purchase. If that is the case, why not invest your money on providing yourselves and your loved ones with experiences instead?
Experiences don't have to cost a lot, but even if they do, in my opinion, I think they are worth it if it's with the people you love. Instead of buying that new phone, bring your parents or family on short trip, take many photos, laugh and have senseless fun. I'm sure everyone will remember the occasion for years to come.
So this week, think of how you can create experiences which will provide lasting happiness instead of buying another product that will only present you momentary satisfaction.
As always, save more, spend less on material stuff and invest wisely.
P.
Friday, 3 May 2013
The Spine of Early Retirement
I'm sure that most of you are familiar with some of the steps you have to take to reach early retirement, but bear with me as I repeat them once again for the benefit those who do not. These steps are not concrete and you can choose to take them or not to attain your early retirement but I believe that paths are similar to these. Only difference being your personal tweaks, luck and mistakes.
Without further ado, here they are:
As always, save more, spend less and invest wisely.
P.
Without further ado, here they are:
- Start as Early as Possible - This applies not only to those seeking early retirement or financial freedom but to everyone. The earlier you start, the more time you have to allow the magic of compound interest to work. What's more, having more time allows for more margin of error. No one is perfect therefore we should always make allowance for mistakes.
- Manage your Consumption - One of the main reasons why most people are not able to save enough for an early retirement is because they spend to much. We are all wired to consume and many of us can't help it but conform. However, there is this rebel within us that does not want to conform, we want to break free from the norm - these are the people that are able to achieve extremely early retirement. Reduce spending now, stop spending money on too much wants, stick with the needs. You do not need that new hand phone just because it has a battery life of 1/2 an hour more than yours or a screen 1/2 an inch bigger than yours. Remember, you choose your enough, not your neighbor.
- .Cut down on Excess Spending - I know it's often hard to form new good habits, but trust me, this will benefit you. For just 1 or 2 months, track every dollar you spend and at the end of the month, you will be able to see where you have been spending unnecessarily. These are the parts of your spending tree that you must prune away. If you feel comfortable keeping track of your expenses by then, you can continue doing so. If not, try to stick to your current monthly expenses less those unnecessary expenses and do a follow up 6 months later to find out your monthly expense status.
- Be Frugal - This step is an acquired taste, once you get it, it becomes something you actually enjoy doing. However i urge you to do this is moderation if you are not alone in your journey. Your significant other might not share the same joys as you in being frugal. You have to take baby steps to let them see the benefits of being frugal. What you must do to be frugal is to view money as an extremely precious resource not be to exchanged for something of lesser value. For me, i feel that lesser value means items that bring no benefit or new experiences to your life. Most of the time, these items just bring you momentary satisfaction that last for a month at most. Not worth it.
- Never Trade Early Retirement for Happiness and Family - This is the last and most important key. You should never trade anything in this world for happiness and your family. What is the point of forsaking your happiness and family to gain early retirement? The point of early retirement is to be able to have time for both. Don't be over obsessed with retiring early that you forgo your current happiness or spend so much time tweaking your spreadsheet or monitoring your portfolio that you neglect your family. You have to set your priorities right.. what is most important in your life. For me, its family, for without them life would be quite meaningless even if u have all the riches in the world.
As always, save more, spend less and invest wisely.
P.
Thursday, 25 April 2013
29,200...29,199...29,198................RIP
Hi all, how has your day been so far? Or should i ask, how has your life been so far? Do you know what the title represents? Do you know what the numbers mean? Well, it's the total number of days that a person who lives till the age of 80 has to live.
Do you not feel that when you look how much time you have in terms of the number of days, it looks really short? Lets say you are 25 this year, you would have approximately 20,000 days left to live and if you are 35, about 16,500 days left to live.
Consider this example, Mike, who is 35 this year working at a mid level job with working hours from 9 to 6.
He takes an hour to travel to work and another hour back. That is a total of 11 hours of his day sacrificed in exchange for an income. Say he works till the retirement age of 65. For the sake of simplicity of calculation, a year would consist of 260 work days( 52 weeks*5 ). That would be 2,860 hours per year or 119 days and by the age of 65, would be 3,570 days.
The situation only gets more disastrous. Do not forget that out of these 16,500 days, about 1/3 of it or 8 hours a days will be spent sleeping. According to my calculations, you would be left with only a miserable 11,000 days left to live(16,500*0.66666), and that's considering you live to 80 and don't work over time and weekends.
How does it sound now that you have only got 11,000 days left to live? Scary right? Everyone has different choices in life. Mine is to try to save as much as i can, cut my spending to a minimum and invest wisely so i can stop wasting my life working and worrying about money. The precious number of days i have left would be better spent on my loved ones and myself.
What are your thoughts on this? Are you of a similar thought? Are you going to live to work or are u going to work to live? Share your thoughts, i would really appreciate views from different people.
As always, save more, spend less and invest wisely.
P.
Do you not feel that when you look how much time you have in terms of the number of days, it looks really short? Lets say you are 25 this year, you would have approximately 20,000 days left to live and if you are 35, about 16,500 days left to live.
Consider this example, Mike, who is 35 this year working at a mid level job with working hours from 9 to 6.
He takes an hour to travel to work and another hour back. That is a total of 11 hours of his day sacrificed in exchange for an income. Say he works till the retirement age of 65. For the sake of simplicity of calculation, a year would consist of 260 work days( 52 weeks*5 ). That would be 2,860 hours per year or 119 days and by the age of 65, would be 3,570 days.
The situation only gets more disastrous. Do not forget that out of these 16,500 days, about 1/3 of it or 8 hours a days will be spent sleeping. According to my calculations, you would be left with only a miserable 11,000 days left to live(16,500*0.66666), and that's considering you live to 80 and don't work over time and weekends.
How does it sound now that you have only got 11,000 days left to live? Scary right? Everyone has different choices in life. Mine is to try to save as much as i can, cut my spending to a minimum and invest wisely so i can stop wasting my life working and worrying about money. The precious number of days i have left would be better spent on my loved ones and myself.
What are your thoughts on this? Are you of a similar thought? Are you going to live to work or are u going to work to live? Share your thoughts, i would really appreciate views from different people.
As always, save more, spend less and invest wisely.
P.
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