sep 2007: personal finance monthly report

sometimes, for a finance person, i find myself a little dumb. i am now having problems accounting for my credit card transactions (e.g. should i have my cash management worksheet cash-basis or should i follow the expense recognition principle?). but more about that on a separate entry.

as i was wrapping up my september personal finance activities, i found out that for the first time since the start of this year, i actually was able to meet my budget this month. but that is of course, after spending 50% more than budgeted last month (august07).

so, year-to-date wise, where am i with my financial goals for this year?

    (continue to) be debt free

. i still am and will continue to be until i decide to purchase a place to live in (which is not happening anytime soon. who would really want to apply for a housing loan these days? the real estate industry has been shooting up prices due to the demand surge!) perhaps i may want to start saving for a car comes 2008 but i am not going to get a car loan unless its 0%!

    established an emergency fund equal to six months’ worth of my monthly cash outflow

. i have done this as early as july, found an emergency requirement (car problems) in august and replenished the outflow in september.

    invest a certain amount on UITF or mutual funds

. i haven’t done this yet. because of the large overspending in the last few months, i have not raised up enough buffer on my savings to start investing in mutual or UITF funds. the next two month’s actual spending should meet or fall below my budgeted spending for me to be able to achieve this goal.

    open an internet cafe business at home

. i am finally opening up the cafe in October. i have raised the necessary funds to purchase the initial ten units of pcs and other networking requirements and will close the purchase next weekend. the units should all be up and running by 15th of October. the internet cafe is expected to open a few days after then. in relation to this, i will be flying to the province for the next two weekends to monitor the installation and last minute requirements. would have save me $6k in two round trip tickets, i know, but there is a good excuse to be home in the province this month. father arrived, remember?

    invest a certain amount on pension plans.

after careful review of my life insurance and three pension plans, i have assessed i already set aside enough cash requirement for them. investing additional cent to my pension plan would not be financially viable; there are other investment products that fit better with my profile and financial need. i have three more years left for the life insurance premium payments, and five more years for the two pension plan, and six more years for the last one. if i continue working on my financial goals, and i am determined to do so, then i wouldn’t be needing the proceeds of these pension plan but my parents would find it plenty.

what is there to look forward to in october?

first, i should have the internet cafe up and running by middle of the month (you should be able to read about its progress and opening in this blog).

second, i will transfer my diving allowance starting this month to what i will now refer to as holiday fund. the holiday fund will get additional source every time i end up with a favourable spending variance every month. i do not think it will total up a nice sum on time for my Sydney holiday first quarter next year but it should be enough to cover for the roundtrip tickets.

third, continue working on keeping my spending below the budget.

and oh, lastly, be a little less geeky about this whole thing. i did ask zsolt if this turns him off; for some strange reason, he said he found this quite interesting (ahhhh, i love him already!!!). and though i really have no problem with me being too geeky on this and everything, i do think that it is psychologically healthy not to get too excited when i am doing cash management shit.

seriously. sometimes, i find this quite arousing.


About this entry