Domain: Finances (Part 1)

Today, I'm talking about a domain in the "Personal" area of my fabulous life: Finances.

The long-term perfect scenario for this domain is a mise-en-scène of me swimming in cash., 不愁吃不愁穿. And the reason it's a long-term dream is because, short of anything financially dramatic, it requires time and discipline to achieve it when one is in a job without stellar pay. As such, I'm framing this domain instead to focus on slightly shorter term goals.


Painting the ideal picture, first off I'd want a comfortable amount of savings. I'd hold a decent insurance plan. I'd also possess an investment portfolio to earn extra income and to, as financial planners put it in layman terms, "beat inflation". The centrepiece really is: I just do not want to spend more than I earn. I don't want to incur debt and I'd wanna pay them off in a timely fashion, be it to friend or foe credit card. Simplicity would have me not buy what is not needed. Happiness and Fun would have me splurge occasionally on the gift to myself or others. Discipline would have me record all of them down to account for my spending to myself.

With this ideal scenario in mind, I've listed concrete goals, some of which I've already achieved actually.

Specific Goals:

1. Have 8 months take-home income amount of savings.

2. Have a portfolio of investments to help me earn dividends and extra income.

3. Have a reliable insurance plan.

4. Have an expense log: to budget income, keep track of credit card purchases/bills, keep track of transactions with other people.

***

Next-Actions
1. Read the current life insurance plan I have to see what are the terms and if there is a need for supplementing it.

2. Read through trading account application form to prepare for necessary application material.

I've already made the cut for my targeted amount of savings, in a bank account that I've never drawn out from. I hope my safety net stays that way for longer, lest I have to fund my own Masters programme, or if I have to tide through a period with no job. This is a nest egg that should hold water before being taken apart on rainy days.

I've also been keeping my budget and expense records for the past year and more. I've tweaked it along the way, (remember, always in beta first), to find it quite foolproof now. And it needs to be foolproof, so that 1) you become more mindful of purchases when you start noticing how everything gets pricier (Uniqlo, your socks on offer at 16.90 for 3, used to be 14.90 without offer okie. Don't think I didn't notice hor.), and 2) you become more confident of transactions, and you can build up that trust so that people find you to be a reliable chap, and not some sleazy smooch. Graciousness would have me return money to those I owe, even if they've seemed to have forgotten about it. (For example, I aware I still owe BK 10 bucks from our dinner at Canele, whoops) And on my part, I should be generous with people who forget to return me money I can give kind reminders to people when they forget to return me cash.

So now I just need to look through the life insurance plan, and think about adding it into my expense account (My Dad pays for it now). And also to apply for the trading account so I can start thinking about investments. I'm think I'll lay-low on the research for now and take directions from my Dad first. And while these next-actions are clear and specific, I think they will take a back-seat in terms of priorities for now. But it's nice to have the big picture for this domain.


Next-Actions Reminders
1. Read the current life insurance plan I have to see what are the terms and if there is a need for supplementing it.

2. Read through trading account application form to prepare for necessary application material.