Friday, January 25, 2013
Posted by Toh Jason Kian Teck at Friday, January 25, 2013 as Financial, Financial Management, Personal Finance
After a resilient economy in the year 2012, we are now in 2013 and I'm thinking that we have yet to see the worst from 2012. I'm not sure that whether global economy will be getting worse or getting better, however I know it myself that own economy might turn bad if inflation continue to go up, while salary maintaining slightly higher or the same.
Hence, this year, I will set a rather defensive financial resolution sort of to protect the capital, while having slight growth over the year in line with the inflation.The target growth of the stocks portfolio is expected to be about 10%, with the growth mainly in the dividend stocks and oversea stocks.
As almost everyone in the country are expecting there will be a slight correction in stock market due to the General Election which is due to held this year, I won't be allocating some portion from the salary to the stock market, at least until second half of the year. Instead, the money will go to the house loan first - at least another 10% total so that it is in line with own goal of finishing serving the house loan within ten years.
Next, based on the last seven years since I started to work, there will be a major purchase in almost every two years, and this might be the year that I will have another purchase. (Major purchase meaning getting either house or car) However, will have to look into the situation before committing into another loan.
Finally, I will continue tithing and as this will continue to educate me to spend within my means. Overall, it will be a challenging year to individual as well to major corporation throughout the world. Being prudent for the year definitely not because of afraid of risk taking, but it is about optimizing the money while minimizing the risk to as low as possible.