Thanks for dropping by Safe Investing South Africa. I am on a journey to build wealth my way. For any questions or comments, feel free to contact me.

21 Jan 2013

FOCUS ON WHAT YOU CAN CONTROL

The key to achieving personal finance goals is keeping the focus on what you can control. A cloud of temptation to set a bar high and getting a burnout along the way lingers on many newbies. Its not bad  being excited about taking charge of our finances, as long as we bear our limitations in mind.
Focus on What you can Control - image
In my previous post I documented My main goal this year as growing our net worth by 25%. I cant control anything about this goal as is. However, I can break it down into smaller parts that I can measure. The first and most important control piece is LIVING BELOW MY MEANS. I can fully control my expenditure and that's where my focus should be.

Most people shiver at the mention of the word "BUDGET". I, myself never sit down and plan my expenditure prior to the actual shopping trips. I am too lazy to do that. I track every cent I spend though. I no longer find that tedious. Keyword is "no longer" because it was not always easy to track and record every cent I spend. I no longer find it overwhelming, as I simplified my expenditure tracking system over the years. I also do this the old fashion excel spreadsheet way. I avoid withdrawing and using cash so as to keep the records in my internet banking statement. That way I don't have to keep individual receipts.

When I do withdraw, I never bother to record what I used cash for. I usually have some of that cash roll over to the following month when I actually do withdraw. I then use it for buying an odd burger, juice, tea, etc. My expenditure tracking system keeps me on my toes. I know that whatever I spend on is finally making its way to my spreadsheet and seeing it in black and white is always sure to raise my brow. When I do get to have bad months, like school fees months,  I am sure to have a much better spend month next. Its always in my head to improve after a bad month. In December I had to spend a lot of money to help boost my online business. It felt so bad to spend 102% of my income. This was followed by our holiday in January. And holiday months are usually the worst. But my December's overspend was singing a loud hum in my mind that I passed all the bold red "SALE" signs in the malls and focused on stationery shops. Budgeting can only make you better at this.

See how the BUDGET ties into our main goal of growing the net worth by at least 25 percent?
We will strive to live on at most 60% of our combined income. 40% will be invested to make more money. I know, 60% sounds high (or is it just me). All expenses on the rental properties, like rates, taxes, management and maintenance are part of our expenditure. I should look at keeping that separate in order to account for my own residential property separately. I might just do that. This 60:40 goal is easier to measure than the huge goal of building on net worth. Always remember to focus on what you can control and measure whilst you keep your overall goal in mind. That huge goal is just a driver to help you intensify on what you are measuring.

2013 is still as young as dawn. Its time to make a clean start. If you have some debt, focus on paying it up, one credit card at a time. Its easier than you think. It may be overwhelming at first but you get to find your rhythm. And when you do, there's no stopping you.

I wish you well this year. Whatever your goal. Just focus on what you can control.

19 Jan 2013

2013 GOALS

The 2013 Goals I am documenting this year will only be personal finance ones. I know its towards the end of January, but I wish you well this year. I am planning to set achievable goals this year. My 2012 goals were not very realistic, but I didn't do that bad either, I think.

PERSONAL FINANCE GOALS
MAIN GOAL:  2012 saw our net worth growing faster than I ever thought possible. This is all thanks to diversification. When interest rates were going down, the JSE covered up. In 2013 I plan to have our net worth grow by at least 25%. To achieve this, the following sub-goals will have be achieved:
  1. BUDGETING: Live on at most 60% of my income and invest at least 40% of income.  
  2. EMERGENCY FUND: 2012 ended on 130% of target (12 months) emergency fund. I am reducing that to 3 months worth of living expenses in the money market account. I will use the rest to acquire more stocks. 
  3. GIVING: Maintain giving of more than 10% of income.
  4. REAL ESTATE: Construct at least 4 flats in the small town property I am buying. Increase the rental income by 30% after the new flats are constructed.
  5. REAL ESTATE: Pay up our home. Its the only debt we have.
  6. STOCKS AND DIVIDENDS: Get at least R12,000 in dividends. Average earnings of R1000 per month. in dividends. Double the stocks we have.
  7. EXTRA INCOME: Take online income to R8000 per month by December 2013.
2013 is the year I may actually hold a job again. I will give it a try. On one hand I am excited by that and on the other hand frightened. I enjoyed taking care of my family. Whatever I choose to do will have some positive impact. Going to work will fast track my investments whilst being at home may grow my online income and keep my calmness. I need the calmness a lot more. But I may stick to a permanent retirement in my early 40s. We'll see.

2012 FINAL Goal Review

Its 2012 Final Goal Review time. A little late but done. Our big holiday took most of my January but I was determined to do my "ALL year review". I still cant believe January is approaching its end too.
My overall goal was to live on less than 50% of my income and save/ invest the rest. I had all my finance tracking twisted. But I managed to keep the focus whilst tweeking my system. I also made a mistake of keeping part of my income out of the tracking. On average I saved and invested close to 30% of my income. Hubby invested and saved more.

PERSONAL FINANCE GOAL REVIEW
  1. Online income to R5000 per month by December 2012. I reached R4500 by the end of the year online. I will give myself this goal because I worked hard. DONE
  2. Maintain at least 12 months expenses worth of an Emergency Fund. DONE
  3. Spend an average of 50% of my net income or less. I spent 70%.  FAIL
  4. Maintain giving of more than 10% of income DONE
  5. Buy a new rental property. Still in progress. DONE
  6. Remodel the duplex that we have put off the market. Prepare that property for rent by the end of 2012, when we no longer need to use it. Remodel the bathroom in a two bedroom property. FAIL
  7. Push for 70% equity on our home by December. Ended the year at 77% DONE
  8. Get retirement accounts to 45% of the target. DONE
  9. Get stocks to 55% of the current target. This is the most important personal finance goal for me. All my wealth growing energies are on this in 2012. DONE
2012 HEALTH GOAL REVIEW
I got a bit sick end 2011. I was diagnosed with PCOS which may have caused some insulin resistance. I put on a lot of weight in a short space of time. I have to put my treadmill, stationary bike, zumba, and tons of DVDs into good use. I am so embarrassed to mention them all by name. (LOST 12kg, 13kg 15kg in 2012)

2012 FAMILY GOAL REVIEW
  1. Holiday in the Mediteranean Europe outside my home country with hubby. We went with the kids.
  2. Spend great amount of time with my family. I spent the past two years in two cities/ countries. My properties kept me busy in one city whilst my business was in the other city.Looking forward to having more time with my family.DONE
  3. Visit my parents for at least 2 weeks. FAIL

CAREER GOALS
Get training in some media form. This can be online. It can be anything from writing to publishing, production to public relations. Informal training. DONE

HOBBIES, ETC
  1. Read at least one book per month. I have to make time for this. I already have a good number of books that are not read. DONE
  2. Finish all my unfinished home and craft projects. I have lots of material. I don't even need to buy new stuff. FAIL
  3. Do charity work as much as I can. DONE
Have fun whilst doing it all.

18 Jan 2013

Monthly Spending and Budget Report-December 2012

To those new in this blog, I track my spending every month. My goal for 2012 was to spend 50% of my income in order for me (and hubby) to retire comfortably in early 40s. My December 2012 monthly spending and budget report is a bit late. I had an "end of the year" burn out and no blogging time. November was a great month. I spent only 46% of my income.

December has been taxing. I poured more than R30k into my small online business. It was actually close to R40,000 of my savings. I think I had to, to grow my online income for 2013. So naturally I overspent this month.

My December 2012 monthly spending and budget report:

INCOME DEC'12 NOV'12 NOTES
Real Estate 32%
59%

Too high for my liking.
Hubby Allowance 62% 33% I included the money from savings here which went to boost the online business.
Once Off 0% 1% Interest free loan payment by my friend.
Online Income 0% 0% I will get three months worth this month. I did. I finally receive a fat cheque this month. I only deposited it in January.
Extra 5% 8% Interest on my Emergency Fund. Plus dividends, AGAIN. I so love Dividends. I wont lie about it.
One thing that makes me unhappy is that the interest on my Emergency Fund is 4.65%, which is below the inflation rate. I took some money to the stocks in January.


SPENDING DEC NOV NOTES
Real Estate 12% 18%

RA & Unit Trusts 5% 7% Fixed for my life insurance and the rest of small investments. Some of which I regret.
Online 65% 0% A necessary and profitable expenditure I think.
Internet/ Phones 1% 2%
Consumer 2% 2% Back to normal
Withdrawals&Fees 0% 0%
Giving 18% 16% This doesnt seem to want to habour at around 10-12%.
To Invest -2% 54% -2% is DISMAL!!! I paid nothing to  my homeloan, but the Mr did. Like every month I didn't top my Just Invest (Nedbank) interest up. My Car Fund stroke stock picking is coming alright.
I lived on 102% of my income in December (comparing to 46% in November). Our Net Worth grew by just above R157K in December.
2012 was not a high achievement year if I may be honest. But I made lots of progress. My passive income grew. My intentions were to grow the dividend income, which didnt go as planned. The next post will be on what I achieved in 2012. I am so proud of myself because I never spent recklessly. Other than a few small holidays, we were good.
HAPPY 2013!!!

Monthly Spending and Budget Report-November 2012

To those new in this blog, I track my spending every month. My goal is to spend 50% of my income in order for me (and hubby) to retire comfortably in early 40s. My November 2012 monthly spending and budget report is very late. October was a travel month for our family. Then the geyser (water heater) in one rental unit acted up leaving our income with a huge hole.

November has been much better. Every bad month is followed by a careful spending month. Thats why I love this reporting exercise. It keeps me on my toes

My November 2012 monthly spending and budget report:

INCOME NOV'12 OCT'12 NOTES
Real Estate 59%
45%

Too high for my liking.
Hubby Allowance 33% 52% What hubby gives to me.
Once Off 1% 0% Interest free loan payment by my friend.
Online Income 0% 0% I will get three months worth this month. I didn't. I finally received a fat cheque in December.
Extra 8% 4% Interest on my Emergency Fund. Plus dividends, AGAIN. I so love Dividends. I wont lie about it.
One thing that makes me unhappy is that the interest on my Emergency Fund is 4.65%, which is below the inflation rate. I will be reducing that money this month, for better financial gain.


ITEM NOV OCT NOTES
Real Estate 18% 24%

RA & Unit Trusts 7% 6% Fixed for my life insurance and the rest of small investments. Some of which I regret.
Online 0% 7% Yep.
Internet/ Phones 2% 2%
Consumer 2% 16% Back to normal
Withdrawals&Fees 0% 4%
Giving 16% 16% This doesnt seem to want to habour at around 10-12%.
To Invest 54% 26% 54% is GREAT!!! I paid nothing to  my homeloan, but the Mr did. Like every month I topped up my Just Invest (Nedbank) interest to a round R5000. then I started a Car Fund stroke stock picking.
I lived on 46% of my income in November (comparing to 74% in October). Our Net Worth grew by just above R21K in November.