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Tuesday, December 28, 2010

Looking Back 2010 Before Setting Financial Goals for Year 2011

The year 2010 has almost come to an end. Like I mentioned just a year back in Setting Financial Goals for Year 2010, we should also start setting financial goals for the year 2011. Again the same advice, financial goals are needed so that we can control our day-to-day financial affairs which will be executed by creating and following a budget. Good financial goals are usually realistic and achievable and will give satisfaction to one. Good financial goals also come with good execution plan, without this execution plan, no matter how good financial goals are, these goals will still remain as goal.

However, before moving to the year 2011, let us start looking back on what are the financial goals that we set for the year and gauge the overall performance. For the year 2010, I have set 3 major financial goals:-

  • Continue tithing
  • Clearing 10% debt for both car loan and education loan
  • Stocks portfolio to grow another 20%

Out of the 3 financial goals, two of the goals are to be done habitually - tithing and debt repayment, so the two financial goals are easily achievable with discipline.

I managed to reduce 16% of the car loan balance and 11% of the education loan balance, both of the balance include the interest as well (financial goals only 10%). Besides that, I managed to have realized gain of 30% out of my stocks portfolio and reinvest (financial goal is to grow 20% while the index only up by about 19.3%). Overall it is not a bad year for me.

Disclaimer: This blog post only serve the purpose of updating the financial goals progress which I've set last year, and nothing for show off, which is why I only do a short review rather than posting everything in details.

Friday, December 24, 2010

Blessed Christmas and Happy Holidays

During last year's Christmas, my advice was for everyone to spend wisely and some tips to cut spending without missing the point of celebrating Christmas, which is to give. This year, the advice is still the same, spending wisely during the Christmas. As I was quite busy for the whole preparation, I will be blogging more on financial stuff after this Christmas. So, Blessed Christmas and Happy Holidays!

Thursday, December 16, 2010

Financial Bailout

Here is an inspiring story on financial bailout that I get from a forum and thought of sharing it in this blog while planning my financial goals for the year 2011 since for the past two years, we heard a lot of financial bailout, but do we really know what it is and how it works?

I hope the story can provide more knowledge for us on the financial bailout which is happening over the past two years.

It is a slow day in a damp little Irish town. The rain is beating down harshly, and all the streets are deserted. Times are tough, everybody is in debt and everybody lives on credit.

On this particular day a rich German tourist is driving through the town, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night.

The owner gives him some room-keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.

The butcher takes the €100 note and rushes down the street to repay his debt to the pig farmer. The pig farmer takes the €100 note and heads off to pay his bill at the supplier of animal feed and fuel.

The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the friendly neighbourhood pub. The pub owner slips the money along to the local prostitute drinking at the bar - who, in spite of facing hard times, has always gladly offered him her ‘services’ on credit.

The hooker then rushes over to the hotel and pays off her room bill to the hotel owner with the €100 note.

The hotel proprietor quietly replaces the €100 note back on the counter, so that the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, states that none of the rooms are satisfactory, picks up the €100 note, pockets it and leaves town.

No one has produced anything. No one has earned anything. However, the whole town is now out of debt and looking to the future with a lot more optimism.

And that, dear ladies and gentlemen, is how a basic financial bailout package works!

Saturday, December 11, 2010

Waterproof Radio

Some of us rely on radio to sleep our baby, but sometimes it is hard to put the radio around the toddler because he or she will mess around or play with water which will spoil the radio. To avoid the mess, we need to get waterproof radio which can help eliminate the worry of putting the radio next to our baby and then come back only to realized it is broken.