The first quarter of 2013 have come to a close, this is a report of the things we have accomplished so far. At the beginning of the year I have set some goals, some big, some small, some I haven’t really set as a goal but in the back of my mind I wanted to complete them.
At the start of the year I picked up the book The Millionaire Next Door. A personal finance book that was highly recommended from the personal finance blog site I follow: The Simple Dollar. The book stresses the importance of increasing one’s net worth. There is only one way to increase wealth and that is through acquiring assets. By definition assets appreciate in value over time vs. liabilities that lose their value over time. The process of acquiring assets is called investing.
Right now, I have saved enough money for our emergency fund. This is the first step in creating wealth. These funds will safe guard our finances from the unforeseen expenses that will sneak up when we least expect it. It is recommended to stash away 3 to 6 months of your total household expenses.
How did I do it?
I opened up one additional account. Every payday, I religiously saved up 15 percent of my income to this account. Every single payday I deposited the same amount to this account. It was a slow process of building up a decent amount. I eventually arrived at the goal and it feels good to achieve it.
I never liked the term Emergency Fund as it attracts negative vibes, so I call it our Piggy Bank instead.
In the remaining months of 2013 I am applying the same technique in building up our investment fund. I opened up another account just for the funds. I project I can save at least 8 000 PHP a month and buy stocks in the Philippine Stock Exchange. Tip from Phil Equity Corner is to buy in tranches in the bull market. I will do just that and see what happens at the end of the Bull Run.
A year ago I purchased my 4th generation iPod touch using my credit card. I took the installment route and opted to pay for the gadget in 12 months. On the 25th of March, I paid off the last installment for my iPod touch. I couldn’t have saved money for such a luxury. I must say it is an expense that was well worth it. It’s my only companion everyday during my commute to and from the office. It serves me well as I use it as my e-reader, multimedia player, notebook, organizer, internet browser, mobile camera, and communication device. The money I spent on this gadget is all worth it. I sure hope it had better camera though.
What could my next project be? I see a Seiko Stargate on the horizon. More on this in my future posts.
Erin’s school fees
Erin is turning five this May and she’ll be ready for pre-school by June. We had her enlisted at a nearby school. We think it’s the best for her and she’ll be attending the school with her cousin Liam. They are not in the same class though as their 3 month gap spelled the difference. I’m quite excited to see my little school girl attend school and start learning the basics. These days, kids are fast to pick up. I can’t wait what surprises she’ll have for us when she starts schooling.
We’ll be with her in every step of the way to guide and provide for her. In fact we already raised the initial payment for her tuition, thanks for the capital gains I made in the local stock market. Thank God for that.
I have previously posted in my old blog about my desire to travel to Bohol, Philippines. It’s the next best thing to Boracay. I have been to Boracay several times already but never been to Bohol. This much awaited visit to Bohol was made extra special because we went with the whole ARTAJOS family: Mommy, Daddy, all of my three siblings, our respective families (how can we ever leave the kids behind !?!?).
Panglao beach was awesome, Amorita resort was the best part of the trip. I must say it’s an excellent place to stay while in Bohol. It deserves a separate blog post altogether just for our trip in Bohol and the nice accommodations and great service at Amorita.
Last but not the least our greatest achievement for the first quarter of 2013: VelvetHugs made profitable. January was spent just setting up shop. I hooked up with an old friend looking for pastry and food suppliers in his newly opened milk tea shop thanks to Facebook for that. Initially we supplied cookies; we sold a couple but did not produce the results we wanted. Our offerings evolved from cupcakes, cakes, chocolate covered truffles, but we found our blue ocean in our ready to eat pan de sal. We found our niche and our products are currently raking in the profits. Though it’s a small rake for now, slightly bigger than our kid’s toy rake. We’d like to grow further and increase the number of outlets we supply our products to. It will take time for us to grow but we’ll keep pushing. I do look forward to recruiting our first ever VelvetHugs employee. That would be cool!
2013 has just begun, there’s still a lot to do and enjoy. We are praying for better things to come. When you’re a parent you can’t help but to be optimistic about the future. It really is going to be a better year for all of us. Cheers!