Thursday, 1 May 2014

Planning for Financial Independence???












One of the monthly activities that you must do ...














Track your monthly family expenses and have an idea what is  your required net worth for financial independence!






5 comments:


  1. From Warren Buffet:


    You Can’t Take It With You

    It’s nice to have a lot of money, but you know, you don’t want to keep it around forever. I prefer buying things. Otherwise, it’s a little like saving sex for your old age.

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  2. Ha! Ha!
    "saving sex for your old age"?
    Is it possible leh?

    Err.... the part of your body that you do no use often enough will usually die first. Same with your sense of using money. If you don't use the sense of "using" money often enough, you will lose it.

    ReplyDelete
    Replies
    1. True!

      Like my late father-in-law who didn't spend much money on himself. He had never take an overseas holidays. Just save and invest his money and leave them for three his sons only.

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  3. I think it is meaningless to track our monthly expenses. We all have moments of impulsive spending. Tracking your own expenses will only make you miserable all the time if your income cannot match your expenses.

    Better to devise a budget and adopt a needs and wants habit.

    Regards,
    SG Wealth Builder
    www.sgwealthbuilder.com

    ReplyDelete
    Replies
    1. No. To clarify, I do annual budget and spend the previous year bonus.

      I don't track individual expenditure. I only record those infrequent big item expenses e.g. overseas holidays, household items such as TV, air-con, washing machine, fridge, etc

      For tracking of monthly expenses; I download the monthly bank statement. It is only 5 minutes effort.

      If we don't know our family expenses, how do we know How Much is Enough to reach the edge of financial independence where our net worth is enough to generate retirement income for life based passive income and asset draw down.




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