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.*

Mid Week Update: This and That

As deep winter is upon us, I have a hard time falling asleep / feeling warm indoors. We had endless rain with 11-12 Celcius for the past 2 days, which makes everything colder.

I struggled whether to turn on the heater (small, portable one since we live in an Asian climate), but at the end I figured it won't be worthy to take it out from the shelf and have it open for 2-3 days and then back to the shelf again. Not worth the trouble...BUT, boy was I freezing in the bed. I had icy feet and hands after wrapping myself under the blankets for an hour = difficulty sleeping (reduced hours!). Not too sure about having a hot water bottle as I'm afraid they'll leak and I'll have burns, or an electric blanket (although I have been thinking about it A LOT). Guess I'll put on some fleece socks tonight and see how it goes. Maybe a hot foot soak before bed.

Taking a look at the figures so far in January, I am on track with the budget. My transit pass still have leftover money from last month and then at the beginning of January I topped it up as well. It looks like I'd have money left over to carry forward in February. The biggest expenditure so far (budget-wise and real spending-wise) is medical. Gotta suck it up because it should be doing me good and is necessary.

After months and months of searching, I finally found a pair of glasses, it was very close to what I'm looking for, and the price is acceptable (not cheap though), and it shall be good for 3 years plus. I also knew the shopkeeper (a coincidence...) and he gave me a discount as well. Will be picking the finished product next week. I had hoped to reduce the wear of contact lenses (made my eyes soooo dry) by getting new glasses. My old glasses are scratched on one side and looking through from it was not a good experience, and it gave me physical headaches. The new glasses had been budgeted for and will be settled by the amount I put aside, which is good because there's less worrying on finances, yay! There is a possibility that I *might* get a cheapo version of a similar frame (costs 1/3 of the price of the ones that I just bought), to extend the shelf life of the new ones. But I don't need that *right now*, so definitely will sleep on this one.

I was telling a friend today that I had NOTHING that I want. You're right, absolutely no "wants". And I have mixed feelings about it: there was hardly any time that I'm not obsessed about something I saw online/at the shop; at the same time I'm happy because this is a right move in the right direction (frugality)! I have also noticed I browsed online stores much less, and spending only on necessary things so far (food or utilities). Now, I do have a few things that I "need", but I decide to save them for another day! They are: a warm duvet, a sleeping bag, a tea strainer (maybe), a travel kettle, sunglasses.

A thought struck me the other day: nothing, no one is looking out for me. Me being the middle-income earner so is not qualified for subsidized housing (cheap rent for life at a certain flat), nor was I a high-income earner that I can just dump part of my savings as down payment and start a mortgage right away. The position I'm at is quite "embarrassing" in a sense that I'm stuck in between. And no policies are looking after the "in-betweens", the society isn't built to look after everyone. This has also got me thinking about my career (!!!), I have tried going for other opportunities but the door was closed. Since I don't have a specialty degree, there's not so much doors for me to knock on., never mind a higher salary. Well, what about studying another degree? There's something that can add value (aesthetic) on the resume but will it make me more likely to get the job that I'm after? Possibly, but it's not easy at all. Questions, more questions and more thinking on this one.

[Edit: I realized the above paragraph might come off sounding whiny, but it's all very true, day-to-day questions for someone in their 20s to think about, especially if you have 35+ years ahead to work and to make financial decisions based on the way the society is constructed. The other day I overheard a washroom janitor saying she makes 24k per month but she works 3 jobs (!) to get that amount. I don't know her family situation, but I guess my point is, the society has policies to look after people like her, but none that look after people like me. So naturally, the (financial) worries that she has or I have, are different.]

In other news, I've been more active in looking for other income opportunities...been trying some paid surveys, only time will tell if they work out. Having said that, any suggestions from those who are reading / doing this? I'm worried that some sites are just scams.

I did so-so for the goals laid out past week, here they are:

- Read 30 pages of the said book read 5...really need to get this book finished!

- Update playlist for workout 50% done

- Jog 1x (or walk if calf doesn't allow to jog) done...with inner struggle and resistance (it was COLD!)

- Hand tiny gifts to DB's mom, done bring over the mincemeat tarts hopefully soon

- Make outfit plan on Sunday I have come to realize this isn't going the way I wanted...but will try for another week

- Make a list of items for blog sale nope, but must get it done soon

- Continue the glasses search done, but need to start looking for DB's pair!
- Gather some nice food for a former co-worker for lunch next week will do tomorrow since today is a No Spend Day
- Moisturize, moisturize, moisturize (face) think this is a YES
- Get to bed by 2330 (need to get better at doing this. Haven't been getting enough sleep lately and hence crankiness) Did this only for last night, since I had icy feet and hands, it didn't help much to fall asleep quickly


Goals for coming week:

- Spend 8 hours on side-hustle (been neglecting this for a while!)
- Get the other 50% of workout playlist done
- Jog 2x this weekend (ambitious I know!)
- List items for sale
- Moisturize, moisturize, moisturize, with face mask
- Get to bed by 2330
- Pick up samples and gifts from stores
- Schedule dental visit in late February
- Pick up new glasses
- Take a relative to lunch (my humble treat)
- Call / pop by the store to ask about recycling program this year

Next week will be a spendy week but I aim to have all expenditures happen on the same day: medical, meals out with friends and such. Spendy, but planned, nothing going out of the budget numbers / frivolous. The best kind, yes? :-)

In the 2015 personal development goals page (HERE), I've mentioned that I want to be surrounded by people who "do good". Well, I dropped a volunteer form to the local food bank last week (don't ask me why I have this idea...it just suddenly occurred to me), let's see if I'll hear from them later on. With Chinese New Year coming, I suspect the requests/visits they plan should be more than any other time of the year (next to Christmas), so there's good chances they need somebody to help out. It's been years since I last dabbled with the idea of volunteering, and it's a huge step for me. I'd be helping in an area close to where I live if things work out, which is always a bonus!

FOMO (and a good one)

I woke up with a cracked throat, went to work, and went home shortly afterwards because I was feeling awful and might be having a fever. Anyhow, I got sick around this time of the year (around Xmas and birthday) without fail for every year known to me. 

Back to the topic: FOMO (Fear of Missing Out)

I went to visit a friend in her new apartment last week, the same friend I talked about HERE before.

Well, she and her bf bought that house (notice the word bought), and now the price of that property has gone up, way up. I know some of the figures incurred in the home purchase, together with down payment, closing and mortgage fees, fitting out (a handful of furniture and decor), now that's where my problem is.

If I were to shell out this amount of money, I can just barely make it. 

Mind you, the above sum is minimal by any standard: by that I mean, the apartment is not big, its price is not too unreasonable for its size, it's not a prime location, it's a rather new-ish property, the house is furnished with decor and stuff so only a handful of furniture, new lock, and electrical appliances had to be added. In short, it's second-handed but still new, with the bonus of existing decor and furniture. I would say that's a gem in the market. The view was quite nice, it's high up in the building, reasonable price. It's hard to come by now, because the housing market has gone crazy high. Her house has become an investment in itself if she wishes to sell it or rent it out in future.

Back to the problem: If I were to shell out this amount of money, I can just barely make it. That amount makes me cringe. Although I can foresee the amount of payment I expected to pay when buying my own home is higher than hers, it (still) even makes me cringe further.

"I make more money than her, and I can't help but wonder where has my money gone?!"

OK, ready to move on for more?

This said friend also has money in stocks, funds, US stocks, investments, and they are up and running, generating money. After graduation, she has studied for a full year WITHOUT INCOME. She's thinking about taking up another program for 2 years ALSO WITHOUT INCOME. She has confidence that money won't be a problem (tuition fee, living expenses, mortgage). At this time, she is paying her monthly mortgage, still give money to her parents monthly, daily expenses, YET she is confident she can make it through 2 years on no income!!! She told me she never check her bank balance, as long as she can withdraw money out she doesn't care what the number is.

Let's pause: How is that even possible? Can that possibly be true (with the amount of money she's making)?

Or maybe I should ask: How can I do this? Why does it look impossible to me now and in the near future? Where has my hard-earned cash gone?

Of course, everyone's (financial) situation is different. Maybe I pay more to my parents than she does, maybe she already was sitting on a mountain of cash when she graduated, maybe she's way more frugal than she looks (I'm sure she is), maybe.......maybe.........

That made me really unhappy where I'm at right now, ultimately it's not (only) about comparison, catching up, but really something was wrong. With the salary that I'm making now, I should be doing much better than her (and yet I ain't). Really unhappy about that. PJ, you can't let this silly spending continue, a complete overhaul of your mindset and your life is direly needed. 

In that sense, this FOMO is a good wake-up call (I'm sure I said that in the last post already)!

Stagnant or progress?

A friend and I met up for brunch yesterday (we went to the same Uni), towards the end of the meal she suddenly broke the new to me that she'll be moving two months later. The reason being she has become a proud home owner right now, the flat's ownership is under her name, but her bf and her split the down payment (10%) and the monthly mortgage.

Now I'd like to pause and take sometime to absorb the shock. Truly there had been friends who had got married and moved out a few years ago, some did so this year (though I didn't really ask them how they managed their housing problem, but this will always be of interest). The reason that this particular friend resonates with me so much is because: 1) she's literally has the same age and same birthday with me; 2) although we haven't known each other for long, we have common interests and always honest and open with our thoughts about nearly everything. 

She told me apart from the split half down payment of a certain amount, the brokerage, utilities surveying and solicitor fee that incurred, she was still able to have a decent amount of asset put away for "long-term investment" meaning bonds, funds and US stocks. WHOA. This causes big shock to me because not only she earns less than what I make (no offense), but she's definitely had more savings than I do. This instantly put me to shame to no end. I really hate my former "spendy" self. Where had the money gone? What could I have done to the amount of money instead of spending? I would have been a proud home owner right now.

She also mentioned that during the past 6 months she and her bf had been looking at flats mainly based on their budgeted amount, which a little over 3M. At the end they settled in a pre-furnished flat, it's not first-hand kinda new but it's been lightly lived by a couple to which the 1 bedroom seems a bit tiny for their future plans. So no need to touch-ups on the interior furnishing, certain electrical appliances and furniture will even be included. She also mentioned that the price stability (such that when it sells, they'll earn a profit), transport, ability to rent out afterwards (when they move to a new house with kids in mind), a pre-furnished interior, school network nearby, good construction material (depends on the builder), tranquility. They've looked at various districts (narrowed down by budget) but of course some apartments don't turn out the way they expected: lots of unusable spaces, etc.

I of course, asked her why the quick dive into the hot housing market out there right now, since the prices atm is insanely high, she said she bought the flat half a year ago when the price was still manageable. I then said, maybe the prices will drop later to a level even less than the cost she bought it for? She said 1) she thinks this flat is a steal with furnishings and such price; 2) she hasn't thought about the probable price drop but; 3) she wasn't too concerned since she would most probably rent it out later and 4) she is quite confident that the price will return to at least the price they bought it for. Well, let's see.

This is yet another wake-up call to where I am now = am falling short behind in terms of savings and FQ (Financial Quotient). Time to catch up, PJ.

- PJ