i am going back to my first love now.

a year and a half ago, i started investing into mutual funds. i should have done it sooner but i am very conservative when it comes to fund management (not to mention how i really hate deciphering the stock market- not that i could do it well, really) and it was not only until mid-2009 that i thought it would be nice to give it a try.

my philequity fund grew 82% as of the end of 2010 with an annualized rate of around 57%. i do not know about you, but i am happy about that. my banker did tell me i should pull it out by December as he foreseen the NAVPU will go down first quarter of 2011. but with everything that was going on at the office, in my life, and the holidays in between, i just did not find a time to squeeze this into my schedule. i do not need the money that i put into that fund in the next few years, anyway so i am not too worried about it. i will pull it out and transfer it to another vehicle once Grape is out.

setting the performance of my mutual fund aside though, everything else in my financial bucket is in horrible state (for my standards, anyway).

looking back at it now, i feel that i have been less disciplined about my spending habits all throughout my relationship with Zsolt. i am dreading to remember how much money i have spent on travel, especially in the last 1.5 years. i guess hindsight is 20/20 vision; the insanity of it seems very obvious now but it all seems very exciting then. regardless, i did have fun. an expensive happiness, it was. and now, i am subjecting myself to budget cuts.

there is no better time to start getting right back on track but now. i still fare better financially than most people i know. i still have no credit card debts or any kind of debt at all. my emergency fund remain intact. i still have my investments (business, mutual funds, pension plans, etc) in healthy state. where i have not fared well was on my spending habits and consistency in setting aside money for the “future me”.

i do think it will not be tough getting right back on track; i was in a worse position before. this is nothing compared to that.

does that mean i am going to give up traveling? i do not think i will ever give up going to places (quite the contrary, i am determined to be dragging Grape with me when she is old enough to travel). i think, i will plan my holidays well way in advance because that is how you do it cheap.

that and having friends in strategic places helps. 🙂


About this entry