Thursday, June 30, 2011

Net worth update (June 2011)

- Net worth increased by $955.12 this month due to money saved from allowance and internship.
- Schroder Commodity Fund NAV dropped by $575.32 due to the US decision to release oil reserves and the negative market sentiment as a result of the Greece debt crisis.

I managed to stay on my spending target of $10/day and total expenses for the month of June was $281.30

Tuesday, June 28, 2011


I have spent a total of $5.20 for the past 3 days. Now I am able to spend $20 per day for the remaining 2 days of the month and still stay on my target of $10/day.

To add on to my happiness, I received a gift of $100 cash today. To pamper my girlfriend(which I have not done for a long time), I will spend this $100 purely on dates and not save a single cent of it. However, this $100 would be spent carefully in order to achieve maximum utility. This is how I am going to spend it:

2 sessions of weekend movies : $40
Chips or candies for movie : $9
One for one pasta : $25
Girlfriend's favourite dessert at ion : $10
A pair of Universal studio after hours tickets : $16

Total: $100 (to be spent over 2 weekends)

Sunday, June 26, 2011

5 days left to the end of the month

I have managed to spend less than $10/day for the past 25 days. The cash portion of my net worth will increase at the end of the month. However, the value of my mutual funds and commodity fund might decrease due to the negative market sentiments recently. As long as I maintain my expenses at less than $10/day, I believe my net worth will not decrease as the cash saved from my internship and allowance will offset the drop in the value of my funds.

Saturday, June 18, 2011

Estimated future monthly expenses

My average monthly expenses is around $300-$400 currently. However, expenses will definitely increase by a few folds after i graduate and start working full time. In addition, I would be giving my parents monthly allowance which will most probably be $400($200 each). The following is a breakdown of my estimated future monthly expenses.

Parents allowance : $400
Handphone bill: $50
Internet bill: $50
Transport: $100
Miscellaneous(food, entertainment, etc) : $600

Total: $1,200

My estimated total expenses would be approximately $1,200. Given that my estimated starting pay is around $2,800, the take home amount is $2,240(after CPF). Therefore, I would be able to save about $1,000 per month. If my girlfriend save the same amount and we both save our 13th month bonus as well, we would be able to save a total of $28,480 per year. After 3 years of working full time and assuming no pay increment/promotion for both of us, we would have saved up $85,440. Adding in the $70,000 that I aim to accumulate upon graduation, net worth would be $155,440(excluding CPF OA). By then, it would probably be time for marriage.

Friday, June 10, 2011

"A penny saved is a penny earned"

The famous quote above was from Benjamin Franklin. I would think that a penny saved is BETTER than a penny earned as the penny saved wont be subjected to income tax or CPF. Recently, I have been so crazy over saving money that I think it is getting unhealthy. Expenses so far for the month have not even exceeded $100. One part of me feels accomplished as I managed to stay on target while the other part of me feels like I am not living my life to the fullest. After sorting out my thoughts, I figured that the guilt and negative feelings are derived from the change of lifestyle and not being used to it. Accumulating wealth is indeed a slow and boring process.

Saturday, June 4, 2011

Importance of an awesome girlfriend/wife

Although I have set myself a target of $10/day for my expenses, I will usually try to spend below that amount. I will always have a mini competition with myself, trying to beat my previous day spending on every new day. My expenses so far for the month of June is $22.90, which is only about $5.70/day. This is quite a good start given that my target is $10/day. I have to admit that because of my goal, I have been unfair to my girlfriend by eating cheap, refusing to watch movies on weekends, not buying any presents or spending lavishly on special occasions. This might be unhealthy but I believe one day she will be able to enjoy the fruits of my labor. In the beginning of our relationship, I pampered her with gifts and branded bags, treated her fine dining and even surprised her with flowers once in a while. Despite such a sharp contrast in my treatment, she did not complain even a bit. I have to say I must be blessed.

Wednesday, June 1, 2011

Free business lunches

One of the perks in my internship program is that I get to attend business lunches with high net worth individuals from China and top management personnel of various SMEs. Besides collecting a few valuable name cards and acquiring some PR skills , I get to dine at expensive restaurants for free. Business lunches are usually held 3 times a week and this means that I get 12 free lunches a month. Let's assume if I were to spend $5 on a normal lunch, I would have saved $60 a month just by attending business lunches!