Ok. So in the past 6mths, I have took vacations to Hong Kong, Macau, Taiwan, Vancouver, Toronto, San Diego, Napa Valley, San Francisco and Lake Tahoe. While these have been incredibly fun, they have destroyed my savings goals. These do not include the business trips of course which are mostly company comped. I just realised no money have been saved and seriously problematic spending habits are forming which needs to be kept under control.
After realising that I have saved nothing for the past 7.5 months, a warranted review of my financial picture ensued. Horror and almost disgust overwhelmed me while recounting the vacations, restaurants and drinking expenditures. My resolution during the New Year was to not be so tight with money, but didn’t really define what that meant. I was good a saving and apparently very good at spending. I need to find a balance between saving and spending – a skill which has eluded me for a while now.
What is happening??? Help!
Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Wednesday, July 18, 2007
Thursday, March 1, 2007
In the Red
Today, I have officially lost all my gains for the year and then some. The past month, I have been secretly wanting to sell my stocks, but greed got the best of me.
As robust as it is, the American economy seems unsustainable. Record deficits year over year, negative savings, unaffordable housing, as well as a slew of economic indicators pointing to a recession, all seem to tell me to get out of the market. Last year was an excellent year and perhaps I should bail while the bailing is good.
As robust as it is, the American economy seems unsustainable. Record deficits year over year, negative savings, unaffordable housing, as well as a slew of economic indicators pointing to a recession, all seem to tell me to get out of the market. Last year was an excellent year and perhaps I should bail while the bailing is good.
Thursday, January 4, 2007
Saving Money
Many times, I have been asked: “What is with your obsession with saving?” So here is my blog about why I am obsessed with saving money and why it is good to.
To me, if all earned money is spent there really is no point working. Imagine a business that generates $100,000 per year. Every year, after expenses and taxes, it generates $0 profit. What’s worse is this company invests all its money into depreciating assets such as cars and equipment, but not property or cash generating assets, so the value of the company remains constant. It seems ludicrous that anybody would run such a business and surely few would invest such a company, including me.
My entire purpose for growing wealth is financial freedom in retirement, not just to have a big bank account. The ideal situation is to have enough money-generating assets to cover your expenses into retirement. This does not include your primary residence, vehicle and cash but does include stocks, investment property, RRSP, mutual funds and the like. Although you can annuitize your assets to conver how long you expect to live, it seems far less stressful knowing your interest income (minus taxes of course) can cover your expenses.
Although, I perceive myself as a good saver, my good friend Sam K is legendary. I have so much to learn from him and will post any saving tips I learn. Stay tuned for my next post on my annual financial goal setting session. Right now, I have to get back to work and make money for my retirement. Man, I am so far off...
To me, if all earned money is spent there really is no point working. Imagine a business that generates $100,000 per year. Every year, after expenses and taxes, it generates $0 profit. What’s worse is this company invests all its money into depreciating assets such as cars and equipment, but not property or cash generating assets, so the value of the company remains constant. It seems ludicrous that anybody would run such a business and surely few would invest such a company, including me.
My entire purpose for growing wealth is financial freedom in retirement, not just to have a big bank account. The ideal situation is to have enough money-generating assets to cover your expenses into retirement. This does not include your primary residence, vehicle and cash but does include stocks, investment property, RRSP, mutual funds and the like. Although you can annuitize your assets to conver how long you expect to live, it seems far less stressful knowing your interest income (minus taxes of course) can cover your expenses.
Although, I perceive myself as a good saver, my good friend Sam K is legendary. I have so much to learn from him and will post any saving tips I learn. Stay tuned for my next post on my annual financial goal setting session. Right now, I have to get back to work and make money for my retirement. Man, I am so far off...
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