I started reading about investments and personal finance back in 2008. Although I learned a lot from the articles and books I read, I didn't practice most of the things I learned until 2010. Even then I still had problems with how I handled my money. Even though I earned more than the average person my age back then, I also spent most of my income buying the latest gadgets and splurging on other unnecessary expenses.
|Break down of my Current Assets at the Start of 2014|
It was only last 2012 I have consistently managed my personal finances. I have kept my liabilities to a minimum and increased my assets every year. Even though I had some major expenses last year, I still managed to keep my finances on track. I had to use my savings, a huge portion of my emergency fund and and a small portion of my investments to pay for these expenses. I managed to recover some of my savings and emergency fund at the end of the year and the majority of my investment was still intact. I decided to share my financial goals for this year to motivate myself to achieve this goal.
Emergency Fund - As of January 2014, two thirds of my emergency fund was used to pay some emergency expenses last year. I will be setting aside at least 20% of my income to achieve this and add anything I earn from my other sources of income to recover this as soon as possible. I plan to replenish my emergency fund, which is equivalent to 6 months of my total monthly expenses, before the end of June this year.
Savings - I started this year with minimal balance on my savings account. Most of my savings was used to pay for my wedding and the birth of my daughter last 2013. After I replenish my emergency fund I will concentrate on increasing my savings I am currently taking on the 52 week challenge I read from Kuripot Pinay but with some slight modifications. I will religiously set aside the minimum amount required in the 52 week challenge into a savings account. If I ever have extra cash on hand at the end of the week, I will add it to my savings account. I aim to reach at least two months worth of my salary.
Investments - Despite incurring major expenses last year. I managed to keep most of my investments untouched. My diversified portfolio of trust funds ,mutual funds and forex investment are still intact at the start of the year. I am planning to add more to these funds after I replenish my emergency fund and savings account. My investments consist of fifty percent equities, twenty percent bonds and thirty percent currencies. Another investment I am planning to pursue in the next couple of years is to purchase a home. I am still carefully analyzing this move since this is a long term commitment once I decide to avail a housing loan.
Insurance - Before the birth of my daughter I already had a life insurance which focused more on investment. I got a whole life insurance and I am more than half way paying my premium. After the birth of my daughter, I needed to increase my premium since I already had two dependents that I needs security. I got an additional term insurance to increase the coverage of my life insurance last year. I plan to increase my coverage before the end of the year to increase the security of my family.
|Summary of Financial Goals for 2014|
|Goal at the end of 2014|