Peronsal Financial Planning (NO ADS PLEASE!!!!!)

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raincatcher> May I suggest one book for you to read which I have seen help many people. It called "Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence" by Joe Dominguez and Vicki Robin.


From Amazon.com

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There's a big difference between "making a living" and making a life. Do you spend more than you earn? Does making a living feel more like making a dying? Do you dislike your job but can't afford to leave it? Is money fragmenting your time, your relationships with family and friends? If so, Your Money or Your Life is for you.


From this inspiring book, learn how to


* get out of debt and develop savings

* reorder material priorities and live well for less

* resolve inner conflicts between values and lifestyles

* convert problems into opportunities to learn new skills

* attain a wholeness of livelihood and lifestyle

* save the planet while saving money

* and much more


It does go into debt a fair bit but it also helps you to make a plan about what you want to do in your life and re-examine your expenses. The investment stuff is probably out-of-date but if you want financial independence and to make a life (not make a living, or dying as the authors calls it) you may find it useful.


For everything else financial for women, I suggest: Smart Women Finish Rich: 9 Steps to Achieving Financial Security and Funding Your Dreams by David Bach.


It takes you to retirement and even how a woman should prepare financially for widowhood. Bach shows how giving up that daily latte could mean US$1 million by retirement (assuming you start youngish).

Change your life style! Try for 6 months first:

1. no more visit to Starbucks/Pac Coffee

2. read most of the news/gossip online. Forget about buying any magazines/newspaper

3. let go cinemas and watch movies from tv

4. join a public library and avoid buying books.

5. limit eating out to just once a week (or none) and go to cheaper places.

6. find free entertainment in town or play sudoku in the internet.

7. exercise will also replace your shopping time.

8. set a side at least 10% of your salary monthly in a seperate account. Keep the ATM card away.

After 6 months check your balance. If you are satisfied then go out to celebrate using 10% of the extra money you have and start a new 6 months target.

10% of your regular salary is a good place to start.

One mantra some famous financial planner uses is "PAY YOURSELF FIRST" meaning, when you get your pay check, regardless of what you think you want to do with it, give yourself (pay) 10% into savings - which you do not touch. The remaining 90% of your take home you live and do what you need to do with it.


But definitely agree with cutting out the starbucks and the "discretionary" spending - which is so easy in HK. walk around, you want something you buy it - without thinking about how that adds up day after day, week after week.


Suze Orman also recommends that you don't use change -and instead save the change and deposit it in your bank...taxi ride cost you $15? pay $20, and $5 change will start your savings...I don't know - this method sounded HEAVY to me. (in that you have to carry around all that change...until you drop it off.)