An expensive mistake

I just made one, that is.

Needless to say (but I'm not giving myself ready excuses), I was tired, I bought something expensive and I regret it almost immediately when leaving the store. Now, before you ask further "just make a refund", I regret to tell you that the returns/refund policy where I live is next to none. 

Vaguely remembering there is a "protection" policy (aka insurance), an urgent call to the credit card company was made. Apparently I could return all the things to the insurance company (the broker of the credit card company) and get a refund, but I had to pay roughly 12% of the product's value (it's an exact figure, not a percentage given). I wasn't impressed.

More importantly, I'm angry and beyond annoyed at myself.

It was clearly not a need, I am not going to die if I don't have it in my life. Far from that. It's not the sense of entitlement ("treat thyself") either. I don't know what got over me and I did it. The money (any money in fact) can be put to use in a much much better and purposeful way. 

Now we're looking at 2 options - (1) I can take the products (not send...) to the insurance company and fill in forms to do a refund and suffer the 12% loss; or (2) I can go back to the store to exchange for something else of equal value or higher value, which the difference shall be paid in extra. Selling it away is not an option either.

Totally realizing I'm bringing on more trouble for myself, I don't know which is the better option. It is a very expensive mistake either way no matter how you look at it. It SUCKS to feel like this.

This lesson just serves to remind me (1) not to set foot in that store again (except should I decide to exchange products, which is likely, since I'm not going to use that darn thing if I keep it, it's too painful of a lesson); (2) be very, very judicious in making decisions; (3) leave the cards at home (I brought it with me since I had to pay for a prescription today); (4) I'm going to live just fine without it; (5) I've lost more than just the monetary value here, time and mental resources to ponder and wonder about the decisions made. Frankly speaking it's been a torture ever since that stupid decision has been made. 

Can't let this happen again!

Moneytalk, March: the good and the bad

This post will cover anything related to $. The monthly wrap-up will be another post.

Let me start off with something good. Previously one of my goals in March is to pump up my savings to a certain amount by March, and I've JUST achieved it, albeit marginally. The sum will all go to my down payment in future. This sum excludes my day to day cash in my wallet, my emergency fund, the account I set aside for yearly categories (more on that), any money tucked away in bonds and stock (I only hold one, looking to expand the profile). For the past few months, I have a new habit of putting *some* notes at home and replenish the wallet when the notes run out. For some reason, this worked for me, the thought of going to ATMs every week worries me and I panic at the thought of it. I intend to go to ATMs not more than 4 times a month: paying my credit cards in full, wiring money to my folks (this is safer than handing them cash), withdraw cash (to replenish). Sometimes I even do same things at once to save me time from the ATM queue, the queues can be horrible I tell you: there was once I had to wait for 10-15 minutes, it depends on where you are.

Well the not so good news was, the authorities have made people who are looking to buy their first homes much more difficult now. In the past people can walk away with 90% mortgage 10% down payment (minimum). No more of those days...it's now 30% down payment for everyone. Which, to me, is a sky-high number! I did a count, if my salary and savings rate stays the same, it'll take me close to 10 years to accrue the figure that would allow a down payment for a very, very modest house. But the amount wouldn't be enough to cover any lawyers cost, stamp duty, renovation, fitting-out, etc. It's very sad and more so when there's nothing I can do about it. 

Another piece of news is: huge change in commute pattern has taken place, I just did a very modest calculation and found that I'll probably need to pump up 50% more than my previous budget on commute. I'm curious to see how this change of commute pattern will influence my way of thinking about what transport to take; and how the item will play out in my budget. I have not revised my budget yet, as I would like to see how it play out in the first 1-2 months. Meanwhile I might need to start chanting *money buys time*, I need to look at where else I can cut back on...

Moving on, I've come to a decision regarding the talk on credit card upgrade. After a few calls to the hotline, I found out that I had nothing to lose after all! The worst case scenarios if I cannot meet the spending limit was (1) I had to call them to waive the annual card fee, which I have 70% they will do so, if not, I'll just cut the card or I can (2) downgrade it to my current card, without any charges. The upside was, I'll accumulate my points quicker, have unlimited access to the airport lounge. The even better part was, I can sign up for subsidiary cards for my family and DB, the subsidiary cards have no minimum spending per year, no annual card fee, and same unlimited access to the said lounge. Now I want to kick myself for not going for the upgrade sooner. The subsidiary cards I'll have their spending limit lowered if I should apply any, however my hesitation is whether getting the subsidiary cards will affect my credit score.

Thee coming of April will see the whole city "doing without" plastic bags, the shops will impose a levy on most plastic bags used. Some items that are frozen, fresh (think fish from the market), or bread from the bakery, will be exempted (but I don't know what else). This is a big problem for moi as I tend to buy a few items here today and a few items the next day, and I hate bringing an extra bag with me to carry groceries. Hopefully this will wean me off from buying unnecessary groceries, but this policy is a royal pain to housewives and everyone, really. Paper bags can be the new option for shopkeepers but their cost is almost double or even more than a plastic one. Talk about conundrum. 

The following paragraphs is for Pru, I figured it'll probably be best fitted under "Moneytalk" ;) Do remember I am only speaking for what I do, and some or most people may not do what I'm doing, or maybe they are doing even more. 

Every month I set aside a certain amount of my salary to be given to my parents, right now that sum is at 25%. I would adjust it every 2-3 years when I get a small raise, but the % will be 25. My folks used to say their generation would give 70% of their income to their families, but they have siblings and people were generally very poor back then. We had arguments about this before, but 25% seems to work best now, although I'm sure they want more, and that they can take more...In our culture, sons and daughters "should" (although arguably some don't) give some money to their parents regardless whether they are still living with them or not. Agreeing with the spirit behind this practice, I intend to continue this practice even after getting married or moving out one day. It's just the right thing to do and I don't question it. My folks have given me the best they can, and are as frugal as they are.

Another related "expenses" to the above, is the money for my grandparents (I call it "granny money"), it's not an obligation (read: I'm not their direct offspring, they have a handful of them and the offspring are the ones who should be giving them money like I do in the above paragraph), but it makes them happy. Plus I don't see them often, like 4-5 times a year, each time I'll give them a few hundred to let them buy what they want, eat what they want. They are not working anymore and solely rely on their savings, and if not, their offspring to support them. So whenever it's birthday of my grannies, around Chinese New Year or Mid Autumn Festival, I'll shell out some. I know some people who don't do what I'm doing, but I always say you never know how long they're still there for, and in their prime age they were working hard for the family and now it's the time they should be taken care of. 

Sometimes it's not what we think it is

A few months ago I shared that a friend of the same age (a girl), who had bought a flat with her bf and moved in together. Well, she told me she's broken up with her bf and moved back to her parent's. This was such shocking news to me, I always thought she's the one who "has it": not rich, but enough money to pay for down payment and get a mortgage (halved with her bf), a stable relationship hence the moving in part, a nice job, and a bit of cushion there from her investments.

To me, that kind of number is just astronomical (I know it was not much, but it's getting even more difficult these days). I was pretty upset at myself at that time because I kept thinking what I should have done to my money before getting a grip on it now, and how different would bank account figure be now. I still do, a bit upset at myself for what I've done with my money before. But this post just goes to show you how fickle things are...one moment a person looked like they have a stable life but the next moment they're back to square one, well, almost. At the beginning of March I had that crest-fallen feeling for 2 days and it was just enough to wreck everything - peace of mind, appetite, and health, sleep, etc.

Have you come across similar stories? Did knowing such people (and that you can be in a similar place with them, but you're not near that for now) upset you?

*To this date, I think I should thank her for inspiring me to get a grip on my finances, and started this blog. She doesn't know her story gave me such a motivation. And without this blog, I would feel alone in this journey. Thanks every one of you for reading this blog. THANK YOU.*

Hurray Dividend!

I just got HK$234 from some bonds that I was holding for half a year, it 'll go straight to the side-hustle count for the month. Woot Woot!

*note to self* must open an account sometime during mid year and hopefully buy more bonds later, since I'm not really familiar with stocks yet. 

Career Talk

Over the past few days I've dabbled with the idea of taking up a post-grad degree. When I looked up the actual program that (1) could serve some purpose if I were able to have a career change, but (2) I don't have the slightest interest in the subject matter, the figure made my heart sank a bit. Getting past the cost factor, which I think was OK even though it exceeded my guesstimate, there are lots to think about.

The considerations were: interest, difficulty (course work), necessity/purpose, time and cost.

Personal interest was self-explanatory. It is also linked with difficulty, it's a degree which requires lots of readings and dare I say, exposure. There's also an exchange program linked in the degree but that's optional (seeing that some may have work constraints like I do), if they pick it there'll be additional costs there. As for necessity and purpose, well, if I've become a different person (in thinking), there might be good chance that I can get into a better position, but IT WILL BE / IT IS difficult to get in. There's no guarantee I can make it even after taking this degree. If I decided to take this degree, 2 years later I'd be facing an even more tricky situation: having spent time and money on the degree, should I go for it or not? 

I should probably add that the "better" position will mean a great change in my entire career lifespan. I would be working under (much) more stress, working more late, and be always, always on the go, like almost 24/7. And it's not just for a handful of years, it's the entire career span. Damned if you do, damned if you don't! There is absolutely nothing "better" about the better position except for the $$$. The goddamn $$$. More $$$ means more stress and responsibility, less freedom. Can I stand pressure? From my past experience, not very so. [Edited to add: There isn't any other benefits that I can identify to - those include getting to know the top tier seniors and networking and such - these don't add value / happiness to my life so I'm not counting it in the consideration of things.]

I think a post-grad degree might give me a sense of security in my current job, but does it have to be an over-achieving one? One that I need to pursue regardless of my interest in the subject? I doubt if I'd do well in a subject which I loathe. There are some happy mediums: subjects that I'm OK with but still not interested in, they cost cheaper and are linked to my job. On the other hand, the subjects I am interested in, they would not directly help my career either. But if I ever decided to take on a post-grad degree, shouldn't I pick something more multi-purpose (aka allowing me the chance to switch to an entire different position) besides adding qualification to my resume? Tough choice! 

The discussion went on with my dad and a relative of mine. The relative was of the opinion that I should go for it as I'm still young, if there's a time to take a chance, it's now. My dad, on the other hand said something more reflective - he said that a good career would follow me until 60 or 65, but a good family would follow me until the last day of my life. He was more of the opinion that I (a woman) should think about the future (what if) I decided to have children. He thinks I should choose whatever that makes me happy and comfortable. 

January's Saving Rate

This is probably a bit late but who cares ;-)

I've just finished dabbling with the figures, the calculations are based on pre-tax income I made (after retirement compulsory contributions), any extras I made (via side-hustles, allowances, vouchers, birthday money). Expenditures include the regular ones that take place monthly, and yearly categories that I've budgeted for (e.g. new eye glasses, work-related expenses, money for grannies, tax) and money for folks (this amount is almost the same amount of my monthly budget, kinda huge).

*cues drumroll* So I managed to save 45.85% of income in January! Pre-tax.

For those who wonder why I kept my calculations pre-tax when calculating the savings rate...well, that's because I"m new to the tax system and there are a lot of factors that drastically changed the amount I was paying for before, and now. I cannot calculate exactly how many % of my monthly income will go to paying tax but all I can do, right now, was putting away enough money each month and build up a cushion. 

Right now I have a savings account, a checking account that includes tax and emergency fund (so 3 accounts). I also have a fixed deposit account tucked away in another bank, that also comes with a checking account which I do not use currently. I prefer to separate emergency fund from the tax reserve fund, and another account for yearly categories/replacements (stuff like dental checkups, and replacing electrical appliances in the household), savings account for savings, checking account for regular monthly expenditures. I'm thinking maybe I need more number of accounts than I thought I need. But that's for another day!

When looking at the 45.85%, I was thinking those extra income I earned really made a difference. Guess how the number will drop if I'm relying solely on one job??? That kinda worries me...

Tick Tock Tick Tock

The clock keeps ticking...

and I kept working :-S

I came home past 10 on Tuesday, and was completely beat. Completely. Like someone has knocked me out, I couldn't manage anything except shower and went straight to slumberland.

It was some side-hustle post-work hours and silly me I thought I could squeeze both side-hustles and kill two birds with one stone! I ended up finishing job A, then stayed behind to work on job B. All these are done in the same day after finishing day job C. Earning money was not easy, but I'm grateful I had the opportunities to work extra by choice.

On the bright side, it means I should be able to hit my monthly goal of making extra 2-3k a month! *pops the champagne open* 

It feels really great not having to rely solely on one job only! #securityissues 

Sometimes I feel OK proud of myself for being active in seeking out side income sources, except via investment which I aim to touch on soon, maybe later part of the year. Because there's just so limited time to be completing jobs and it's better to make money generate money (be they how little).