These couple of nights, I've slept at the insane hours of 3-4am. Cos I was watching cable tv or dvd. Then end up waking at 1-2pm after all the lazing and dozing off. Last night I did glance through one book I borrowed and found it to be crap. Well it was a thick book of crap. So I am still re-reading that book about Financial Dysfunction.
Most of these books about asset allocation and diversification are based on investments available in the US. Though it was highly recommended to get housing settled. But given the ratio they gave was a max of 3.75 times of annual income. Say for a $50,000 income, the max housing amount paid is $200,000. But we all know that $200k cant buy any real estate in Singapore at all. So that measure is out. Another is diversification into bonds and mutual funds. They have very established bonds and mutual fund markets but in Sg, its primitve. Unit trusts are not as liquid and generally carry higher transaction cost and management costs. So that's another strategy out.
But the concept of the Financial Life Cycle is a very interesting concept because it gives you a measure to gague your financial health at. Instead of just keeping up with the Jones, or just looking at the rich and how much they spend, its a clearer measure. There are Formative, Accumulation, Conservation and Largess stages. In each stage, there are three more phases to go through. Its been pretty comprehensive.
Using the measure suggested, I could gauge which stage I am at. In fact, I went and did up a "Nett Worth" excel spreadsheet to compute my net worth. I've never kept track of this. I kept close track of the changes per month and per year. Never had a clear idea of my net worth until now. After knowing which stage I am in, I look at the stage before and after. To think about whether I've really moved past the earlier stage and how to move to the next. Its insightful and now I dont feel the anxiety to keep making up to certain salary figures. Of course, I still want to find ways to earn more on the main job so that I dont have to do extra hours after. Who doesnt? But I feel more assured of myself.
Today I broke the lethargic cycle by making myself go to the gym. Though I did pure weights and abdominal exercises only, it felt pretty good to be exercising again. Will shorten my usual routine to only cardio and weights plus abdominal exercises only. Resolve to go 3 times a week, about an hour only. Its only my first gym after a long break of more than a month. The good thing is now I am feeling sleepy already. Good thing about exercise is that it regulates appetite and sleeping time. Hope to build back my tone look and lose these extra weight and keep them off. I started eating smaller portions for dinner and lighter breakfast instead of hawker food, non fat yoghurt. Hope to keep it up. I do really like yoghurt, got to make sure I keep buying to stock the fridge especially to last the whole week.
Think I shall continue by trying to finish another 2 more investment books borrowed. They are quite thick. Also finish my 2 books on Go. I think I've gotten the basics but not sure how to put it together to play a game properly. Need to practice guitar more and tidy up some more of the room and table. Still on leave until this Thur. Friday I would be starting the last term.
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