You don't need everything

Not many of my friends like my Excel post. Just like my previous post, customize the right click menu may be useful to certain group of people, but not everyone. I post that just want my friends to know, there is such function, if you interested, you may find out more.

You bought a map, but you won't memorize every places on every page (unless you are taxi driver). You may just look up for the location of the place you want. You bought a dictionary, but you won't memorize every words from A to Z (unless you are taking TOEFL). You may just look up for the words that you want.Information are available every place and they keep changing. There is really no need to push yourself to know everything, to be good at everything. It will just make yourself tired. Just like you are going to eat Buffet, you don't need to force yourself eat everything, just pick a few that you like, then you are done.

There are many investment strategies, you don't need to be expert on every techniques. You don't need to be Warren Buffett to get rich. You just need to know roughly what strategies are available, pick up what suit you, then follow it.

Live is not about trying everything, but, be yourself.

Tips for recording your expenses

Have you read any personal financial planning (理财) book before? Most books have a common topic about recording your expense. I followed that also. But it doesn't work! No matter I install an App or write in on a notebook or keep my receipts and record it  later. This is because human nature ---Lazy.
Another possible reason is: some may think that, it doesn't worth the effort to record $1 expense. It is very troublesome record every single expense.
Eventually, for whatever reasons, high chance that this method will fail.

Few years back, I found out a solution: just record whatever balance in your bank is enough. This will be the closing balance for the month and also the opening balance of the following month. Taking "closing" - "opening"(which equal to movement) will be your expenses for the month. As shown below:

Beside this, if you can work harder to record "Big expense/income for the month (e.g. buy LV bag, strike 4D )" plus "fix expenses(e.g. Children school fee, Join-Account contribution); you can more and less gauge and manage your $ already.

If you have investment, just add that to the movement.

If you like to keep cash in biscuit can or your case-dough(私房钱), you can add lines beneath Opening and Closing. Just make sure this file is inaccessibility from your wife. :0

You may use the following Excel and customize to your need. Give it a try. It works for me. I have been recording for 4 years already.
https://www.dropbox.com/s/ktyuhe43af3aqr6/PersonalExpense.xlsx

SQL-EX.RU

Do you think your SQL skill is superb?
Try to do "exercise" at this Russia Website: http://www.sql-ex.ru/
I can guarantee your SQL skill will increase at least 1 level after you complete half.

My current rating 575....about 1 year never log in...:(

CPF Calculator

Many Singapore or PR don't really care about the CPF they have because they can't withdraw the money before retired. But do you calculate the impact of compound interest of Ordinary Account (OA) 2.5%, Special Account(SA) and Medical Account(MA) of 4%?

Senario 1: One graduate born in 1991, start work on age 22 with salary S$2,500. If he retire at age 62, he can get at least $1,065,293 at age 66.

Senario 2: One born in 1985, salary $3k, with current CPF: OA:$10k, SA:$11k, MA:$9k. If he retire at age 62, he can get at least $1,081,571 at age 66.

Why I said "at least"? First, the salary will be increase from time to time. Second, this exclude the additional 1% for the $60k total in 3 accounts.

So, don't under estimate the power of compound interest and do appreciate what Singapore government is doing for her people. Number proof everything.

You may use the calculator to check your contribution at:
http://www.cpf.gov.sg/cpf_info/Online/Contri.asp?prof=emp

I have developed an Excel to forecast your CPF when you retired:
https://www.dropbox.com/s/yxadzm96k8lhs7v/CPF_Calculator.xls

Life is a marathon, not a sprint

Do you want to get rich over the night? What you want after you get $1 million? Will you ask for $2 million? $10 million? $1 Billion? Money can never be enough. Same as desire.

Life is a marathon, not a sprint. The purpose is not reaching the final but enjoy the every moment you run. There is not share that will fly to outer space after you buy the share. The company also take time to make use of your investment to grow.

So, do your homework before invest. Plan the buying price and exit point. Once purchased, sit back and relax, wait for the fruit to ripe. Spend your time on your love, your work, your family, your dream and yourself. Once awhile, maybe weekly or monthly, then take a peep on your investment. Remember, if your investment make you worry, uneasy, stress etc, then you better keep your money in bank or biscuit container..:)

Number is meaningless unless compare with something

100 is many or less? 10% return is good or bad? Answer is: it depends. If you get $100 increment while your colleague gets $200, then it’s not good. But you will be very happy if you get $100 while your colleague gets $50. So, number by itself is meaningless until compare with something. We also need to compare using same category, as we always say “apple to apple” (No! Not comparing Apple Ipad vs Apple iMac).

It is important to familiar with the “norm” number or number sense. For example, Inflation average is 3%, Malaysia Fixed Deposit is around 2.5% to 4%. Singapore Fixed Deposit is less than 1%. So, you won’t be cheated if 1 day OCBC sell you a fixed deposit with 5% return. You will know the number is too good to be true and there must be something behind that.

You can read more from “How to Avoid Getting Lost in theNumbers (Harvard Business School HBS Note)”. Highly recommended! (Come on, just 5 pages....read it! it will benefit you forever!!)

Best Investment tip

There are a lot of investment tools, but the highest return investment tool for age under 35 is investment on yourself. Many just want to become Warrent Buffett no 2 or take short cut become millionaire. Yes, you can find a lot of story about successful people but I bet those lost big money is more than that. No loser will publish book how they lost big money.

Take your time, learn hard, get as many certification, knowledge, skill, experience as you can. Those things will follow you forever. Nobody can assure he/she always win in investment but you will lose nothing on investment yourself.

Do you like to read the stories of how other people success and plan to copy or combine the recipe? The answer is don't just believe and follow. It is rather silly to just listen whatever people said. There are many factors that people succussed and successful people may not have time or obligation to tell you everything. You may read more here.

Which do you believe: certification and your salary or luck and your "sure win tips?"

Singapore IRAS Income Tax Calculator

I created this IncomeTax Calculator for submission of my Singapore IRAS Income Tax. I find IRAS website calculator too complicated.

My version of Singapore IRAS Income Tax calculator:
https://www.dropbox.com/s/xej50h9pe4g7pno/IncomeTaxCalculator_v3.xls