Oh $Money - Money~*

Here comes part II of "2011 $Financial Wrap-up" {here}. I have compiled some of my learning experiences through personal money management over the course of years which I hope you will find helpful or interesting.



{image credit via weheartit}

Open separate bank accounts for different things: In addition to 401(k)), we have 1) an emergency saving account 2) a college saving fund for our little one 3) a taxes saving account (we pay an annual M.U.D. tax where we live plus a Homeowner Association Fee). Next year, I plan to open two more: 4) “emergency repair saving” for unexpected costs such as repairs on appliances/vehicles and things around the house 5) “Christmas shopping account”.

I find this to work really well for us to have money saved up for specific things without having to dip our hands in a main emergency saving. Okay now, you may think that my husband and I make shit load of money so that we have this many saving accounts to save our wealth. Hell no. We are very far from being a millionaire but we try to pay ourselves first and put some money into those savings. Small amounts add up over time.


Start saving when you are young: I started contributing to 401(k) at 25 years old at my very first formal employment in the US and am still continuing to do so up to this day. Saving at early age enables you to get ahead of the game. People manage their money differently and have different goal sets in lives. Some choose to splurge on luxurious items, some save up for big ticket item like a house, some choose vacation/travel. I was a proud home owner at 27 years old and couldn’t be happier. Whatever it is, set your goals and start saving.



Avoid buying during your first visit: I get excited easily so I have to slap my face, stop and think through on what I “really, really, really, really” want and the “true practicality” of any purchase. I have been into designer handbags this year and was on a close call in bringing home new babies from my favorite boutique on two separate occasions. It was very close!!!


I set myself a rule not to buy anything over $500 during my first visit to avoid buyer’s remorse for that reason. An excitement of seeing brand new and glorious items on shelves and pressure from some helpful/pushy SAs may contribute to a very unhappy purchase. Based on my experiences with two bags, I made at least 2 trips and took all the time I wanted with many deep thoughts. Don’t let that first impression or excitement blindside you because you may end up paying a huge price tag on something you do not truly love.



Use cash as a primary spending method. I have never been in debt in my entire life and will never want to based on what I see and hear other people’s horror stories. We do have one main credit card (not counting gas cards) which we regularly use to gain points and pay it off the next month in its entirely – no outstanding balance. It can be difficult to keep track with credit card spending but what I find to work best is “every time you use your credit card, instantly transfer money to save to pay for it later”. It is important to document…document and document your spending in some form to because it is so easy to forget what you had bought a week ago. You bet - I also have another saving account which I call “Credit card saving” for this. I transfer money from my checking account to this Credit card saving account everytime we use a credit card.


{image credit via weheartit}

Quality/practicality over quantity. In the past, I can’t even tell you how many small little things I blew money over. They were inexpensive, they were trendy, they were cute but don’t talk about quality or usefulness. Over times, the costs added up. Those items turned to junk and eventually went on to the landfill. I learn to think through my purchases many many times regardless how cheap it is. One dollar..two dollars…if it is not practical or will not add or give any value such as a statue that will just sit there collecting dust, I won’t buy. With that said, I am able to avoid so many unnecessary items/craps and stick to the “less is more”. I have begun to appreciate the concept of minimalism but we shall see how long this will last..haha.

Unsubscribe from retailer mailing list: this year I have waved bye-bye to about 8 of them so far and plan to unsubscribe them all. Good grief, you have no idea how many emails I have received from ToyRUS since November. Some days I got 5 freaking emails from them especially when Christmas is near. I mean 5 in a period of 24 hours!!!!!



Deals end soon! Buy NOW! Christmas is almost here! Lowest prices of the season! – c’mon I see that all year round!!!!!!!!!



These promotional emails really work on weak-minded individuals. The tone of email aims to influence you, rush you to buy and get you to think that you “actually” save some money. How about not buying at all? That is even better I say. Coupons and discounts work exactly the same way. We don’t even need anything but go out to buy just to use the coupons so that we feel that we do something good. In fact, we don’t. Let me illustrate: you have a $10 coupon of a minimum $30 purchase. You don’t really need anything at that particular store but go in anyway and start buying just to qualify for $10 discount. Yeah..so much for saving money.

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This is my last post for this week. I hope you all have a wonderful Christmas weekend with your loved ones. I shall return on Sunday night or so. Be sure you tune in next week. Now that I am back in the swing of blogging, I have some AWESOME posts lined up for ya!