I have always wanted to start a journal - a journal that I can reflect on what I have done, share with the rest on the lessons that I have learnt and gather feedbacks to improve on my current status.
Why do I want to name this journal SP Risk Journal? SP is my initial and risk has always been part of my job role. I have always been a fan of applying and integrating what I have learnt across domains. In fact, I realized that most decisions made in life are driven by risks and rewards. As such, I thought it is appropriate for me to name this journal as "SP Risk Journal".
Currently in my early thirties, I want to get out of my comfort zone to start and maintain this blog. This journal is primarily focusing on personal finance (wealth) and health. While I strongly believe in saving than spending, I would not advocate living in a frugal lifestyle that compromise the living standard. What is the use of seeing additional zeros in the bank account when you do not really enjoy the one and only life that you have? There has to be a balance.
To put things into perspectives, I am going to share my experience so far. I believe that I am one of the average Singaporeans who wants to earn a decent living and lead a decent living standard. Some of these decisions that I made may resonate with you.
Beginning my career
I began blogging eight years ago when I was pursuing my tertiary education but I stopped since I started working. As a student, you have the most time of your life to do what you want. After I graduated and began my career, the amount of free time that I had became lesser unfortunately. Most of my batch mates wanted to join the financial sector at that time. However, following the tradition as an accounting graduate, I joined one of the Big 4 accounting firms. I thought I would learn more in a tough environment and good to have a "Big 4" mentioned in my CV with a CPA (now renamed to CA). Of course, this was part of risk management consideration.
Planning for wedding
I knew that I wanted to settle down with a family early all along - I proposed to my wife (my girlfriend back then) during my first year of my career. Starting pay for an auditor was low for a graduate ($2,400 back then) but I managed to save up quite a bit for the big day. You could get a decent lunch for $2 at Golden Shoes complex (not too sure whether we could still find such price now). OT meal and transport reimbursement was almost not an issue given the hours that you need to put in especially during the peak period. And of course, to look good on the big day, I began my running routine - including joining a sundown full marathon, and climbing the stair where possible.
Wedding expenditure could go out of control easily if you do not set a budget and follow through with discipline. My wife and I were glad that we could support the whole event ourselves without any loans from our parents. My major expenses went to the banquet and it was 80% covered by the red packets from the guests. Of course to those who are financially savvy, it is a waste to spend so much for a wedding. However, sometime in life you do not have a choice and you rather spend some monies to avoid potential future conflicts.
Considering that a wedding banquet was unavoidable and looking back, I am glad that we held our wedding earlier because of inflation: My wedding banquet was $1,240++ per table three years ago and last I checked on the website was $1,498++ per table. The price rose 20.8% in three years time! If I were to hold the banquet now using the budget back then, I need to invest the monies with at least 7% return. Even if these costs would be covered by red packets, I believe the loss would definitely be higher. Does red packet monies rise faster than inflation? I doubt so.
Setting up a family
Soon after we got married, we had our daughter. She brings great joys to the family and we feel fulfilled to see her grow up everyday. Nevertheless, more expenses started to kick in then:
1. Though my parents are helping us to look after my daughter, my wife and I see a need to hire a domestic helper to help out with the house chore. That would cost roughly $800 including salary and food.
2. Baby necessities expenses such as milk powder and diapers. Milk powder could cost about $150 per month and diaper could cost about $50 per month.
3. Childcare education for us was about $1,300 a month and it was partly subsidized by the Baby Bonus. We could have chosen a cheaper alternative elsewhere but to us, location is our most important consideration. The childcare centre is near our house and convenient for my parents to send her there in the morning and pick her up in the afternoon/evening.
4. Monthly loan instalment for our HDB flat was about $1,300 a month.
Besides the expenses, time and commitment are something that we need to provide for the family. I have changed my job to work in a risk management function in a bank (hours are supposedly more stable and regular).
Over these years since I got married, what I have neglected the most was my personal health and fitness. Like most of my friends that I met during gatherings (mostly during wedding banquets), we have "ballooned". My wife, who is working in the healthcare industry, has been asking me to look after my health properly. I agree with her that I cannot take this for granted...
Above was a short summary of who I am and where I am now. Treating this as a new year resolution 2015, I would want to set and commit to the following goals:
1. To update the blog every weekend and keep things simple
2. To focus on topic related to wealth or health with evaluated risks
3. To execute the lessons that I reflected and learnt progressively in this blog
Welcome any objective feedbacks that you may have. Have a good day!
